EXPLANATORY STATEMENT
STATUTORY RULES 1988 NO. 73
ISSUED BY THE AUTHORITY OF THE
MINISTER FOR DEFENCE
SCIENCE AND PERSONNEL
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, no specific calculations are made of the cost of treating a particular Defence Force patient because there is no requirement for the Commonwealth to bill itself for the treatment. 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 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 daily cost of treating a patient in a Repatriation hospital in the various States. That Department has now advised updated rates which more accurately reflect the cost involved from the period commencing on 1 July 1985.
Military Financial Regulations (Amendment)
The Statutory Rule amends Schedule 1 by omitting Item 10, substituting a new Item 10 and inserting Items 11 and 12. The amendments increase the maximum amount recoverable for in-patient treatment in a service or Repatriation hospital from the period commencing on 1 July 1985 to reflect the new daily rates as advised by the Department of Veterans’ Affairs.
The new rates will apply only to 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, 1988, was introduced to amend the Military Financial Regulations, which were made under the Defence Act 1903. The problem this amendment aimed to address was the need to update the rates at which the Commonwealth could recover the costs of medical and dental treatment provided to members of the Defence Force who had enforceable claims against other parties for the treatment costs. The policy objective was to ensure that the amount recoverable from a member did not exceed the expense incurred by the Commonwealth in providing treatment, by using updated rates that more accurately reflect the cost of treating patients in Repatriation hospitals. This was achieved by amending Schedule 1 to the Regulations to reflect the new daily rates as advised by the Department of Veterans’ Affairs. The changes were enacted by the Minister for Defence Science and Personnel, and the Statutory Rule came into operation on the date of gazettal.
Scope and Application
The Military Financial Regulations (Amendment) Statutory Rules 1988 No. 73, issued under the authority of the Minister for Defence Science and Personnel, amends the Military Financial Regulations made under the Defence Act 1903. The Regulations govern the financial conditions of service for members of the Army, specifically concerning the recovery of costs for medical and dental treatment provided by the Commonwealth. These Regulations apply to members of the Defence Force who receive treatment and subsequently have an enforceable claim against another party, such as in the case of a motor vehicle accident. The amendment adjusts the rates for the maximum amount recoverable from a member for in-patient treatment in a service or Repatriation hospital from 1 July 1985, reflecting updated daily rates provided by the Department of Veterans’ Affairs. The updated rates will apply only to determinations made after the commencement of the Statutory Rule, which comes into operation on the date of gazettal. This amendment ensures that the amount recoverable aligns with the actual costs incurred by the Commonwealth for treatment, providing a more accurate reflection of the financial conditions of service for members of the Army.
Key Provisions
The Military Financial Regulations (Amendment) primarily concerns the financial obligations of Army members who receive medical or dental treatment and have an enforceable claim against another party for the costs incurred. Regulation 262 (paragraph 1(c)) specifies that members who have received inpatient treatment in a service or Repatriation hospital must repay the Commonwealth the cost of their treatment. This repayment is subject to a cap, which is outlined in Schedule 1 of the Regulations. The amendment to Schedule 1, introduced by the Statutory Rule, adjusts these caps to reflect updated daily rates provided by the Department of Veterans’ Affairs, effective from 1 July 1985.
The obligations imposed by this legislation on Army members are primarily financial. Members who have received inpatient treatment and have a claim against another party must repay the Commonwealth the amount of their treatment costs, up to the caps specified in Schedule 1. This repayment is contingent on the member receiving damages from the other party. Additionally, the legislation mandates that the cost of treatment provided by non-Commonwealth hospitals is to be determined by the accounts rendered by those hospitals. In contrast, for service or Repatriation hospitals, costs are assessed at a daily average rate that includes both the treatment cost and a proportion of normal hospital running costs.
Failure to comply with the financial obligations outlined in the Military Financial Regulations can result in civil or criminal consequences. The specific penalties are not detailed in the provided text, but generally, breaches of regulations governing financial obligations in such contexts can lead to legal action, fines, or other penalties as determined by relevant authorities. The precise nature and severity of these penalties would depend on the specific breach and applicable laws.