EXPLANATORY STATEMENT
STATUTORY RULES 1985 NO. 217
ISSUED BY THE AUTHORITY OF THE MINISTER FOR DEFENCE
MILITARY FINANCIAL REGULATIONS (AMENDMENT)
The Military Financial Regulations (“the Regulations”), made under the Defence Act 1903, prescribe certain financial conditions of service for members of the Army.
Background
Members of the Defence Force receive free medical and dental treatment to maintain the level of health and fitness required for Defence Force service. However, it is the practice for the Commonwealth to recover the costs of treatment where the necessity for the treatment arose in circumstances which give a member an enforceable claim against another person (eg, a motor vehicle accident).
Regulation 262 of the Regulations, enables a determination to be made requiring a member of the Army who has an enforceable claim against another person to repay to the Commonwealth, subject to the comments below, the cost of treatment. The amount set out in the determination is then included by the member in the member’s claim against the other person.
In practice, where a member has such a claim, the member is not required to repay to the Commonwealth the costs incurred on the member’s behalf unless and until the member receives damages in respect of those costs.
Where treatment is provided by a non-Commonwealth hospital the amount to be recovered is established by the account or accounts rendered by the hospital. However, where treatment is provided by a service or Repatriation hospital, since there is no requirement for the Commonwealth to bill itself for the treatment of members of the Defence Force, no specific calculations are made of the cost of treating a particular Defence Force patient. The cost of medical and dental treatment in a service or Repatriation hospital is accordingly assessed at a daily average rate which includes the cost to the hospital of providing the treatment as well as a proportion of normal hospital running costs.
Paragraph 262(1)(c) of the Regulations, provides that the amount recoverable from a member who has received medical or dental treatment as an in-patient of a service or Repatriation hospital in a State is not to exceed the amounts set out for that State, for the period during which treatment occurred, in Schedule 1 to the Regulations.
Schedule 1 was inserted to overcome the difficulties encountered in legal proceedings of proving that the amount which a member was liable to repay to the Commonwealth did not exceed the expense incurred by the Commonwealth in providing treatment, by deeming the prescribed scale of rates to be the cost of a member’s treatment in a service or Repatriation hospital.
The rates adopted are those prepared by the Department of Veterans’ Affairs for internal costing purposes, showing the cost per bed per day per patient in a Repatriation hospital in the various States. That Department has now advised updated rates which more accurately reflect the cost involved for the period commencing 1 July 1982.
Military Financial Regulations (Amendment)
The Statutory Rule amends Schedule 1 to the Regulations by omitting Item 7, substituting a new Item 7 and inserting Items 8, 9 and 10. The amendment increases the maximum amount recoverable for in-patient treatment in a service or Repatriation hospital during the period commencing on 1 July 1982 to the new
daily rates as advised by the Department of Veterans’ Affairs. The new rates apply for the purposes of determinations made after the commencement of the Statutory Rule.
Commencement
The Statutory Rule comes into operation on the date of gazettal.
Overview
The Military Financial Regulations (Amendment) Statutory Rule 1985 was enacted to address discrepancies in the recovery of medical and dental treatment costs for Australian Defence Force members who have received treatment in circumstances where they hold an enforceable claim against another party. The Regulations, established under the Defence Act 1903, aim to ensure that the Commonwealth recovers the costs of treatment where such claims exist, which is particularly relevant for members who receive treatment from non-Commonwealth hospitals. The amendment was issued by the Minister for Defence, aiming to align the recoverable amounts more accurately with the actual costs incurred by the Commonwealth for in-patient treatment provided by service or Repatriation hospitals. The update, which revises the daily rates set out in Schedule 1 of the Regulations, was necessitated by the Department of Veterans' Affairs providing more precise costing data. This change ensures that the amount recoverable from Defence Force members for treatment received post 1 July 1982 reflects the true cost, thereby maintaining fiscal responsibility while supporting the health and fitness requirements of Defence personnel.
Scope and Application
The Military Financial Regulations (Amendment) Statutory Rule 1985 No. 217, issued under the authority of the Minister for Defence, modifies the Military Financial Regulations made under the Defence Act 1903. These Regulations govern certain financial conditions of service for Army members, including provisions for the recovery of costs related to medical and dental treatment provided by the Commonwealth. The amendment specifically updates the daily rates for in-patient treatment in service or Repatriation hospitals, reflecting the updated rates advised by the Department of Veterans' Affairs, effective from 1 July 1982. This adjustment is aimed at ensuring that the amounts recoverable from Army members for treatment expenses align more accurately with the actual costs incurred by the Commonwealth. The new rates apply to determinations made after the commencement of the Statutory Rule, which comes into effect on the date of its gazettal. The Regulations apply to members of the Army who have received treatment and have an enforceable claim against another party for the costs of that treatment, ensuring that the Commonwealth recovers its expenses through the member's claim against the liable third party.
Key Provisions
The Military Financial Regulations (Amendment) Statutory Rule 1985 No. 217 amends the Military Financial Regulations made under the Defence Act 1903, which outline certain financial conditions of service for Army members. Specifically, it updates the rates for the maximum amount recoverable from a member who has received medical or dental treatment as an in-patient of a service or Repatriation hospital. Regulation 262(1)(c) of the Regulations (paragraph 1) sets out the maximum amount that can be recovered, which is adjusted to reflect updated rates provided by the Department of Veterans' Affairs. These rates are deemed to be the cost of treatment in a service or Repatriation hospital, as specified in Schedule 1 of the Regulations (paragraph 2). The amendment removes the old rate and substitutes new rates for the period starting from 1 July 1982, applying to determinations made after the commencement of the Statutory Rule (paragraph 3).
The obligations imposed by the Regulations require Army members who have an enforceable claim against another person, such as in the case of a motor vehicle accident, to repay the Commonwealth for the cost of treatment they received, up to the maximum amount specified in Schedule 1. This repayment is incorporated into the member's claim against the other person. For in-patient treatment at non-Commonwealth hospitals, the amount to be recovered is based on the hospital's account. However, for treatment at service or Repatriation hospitals, where no billing to the Commonwealth is required, the cost is assessed at a daily average rate (paragraph 4). This includes the cost of providing treatment and a proportion of normal hospital running costs.
There are no explicit offences or penalties outlined in the Explanatory Statement regarding the breach of these provisions. However, failure to comply with the requirement to repay the cost of treatment to the Commonwealth could lead to civil consequences, such as the inability to recover full damages from the liable third party. The Regulations do not specify criminal penalties but imply that non-compliance with financial obligations could result in administrative or disciplinary actions against the member. The primary focus of the Statutory Rule is to ensure accurate recovery of costs by updating the rates according to the Department of Veterans' Affairs' advice (paragraph 5).