EXPLANATORY STATEMENT
Military Rehabilitation and Compensation (MRCA Treatment
Principles – HomeFront Subsidy Increase) Instrument 2006 No. M10
EMPOWERING PROVISION
Subsection 286(2) of the Military Rehabilitation and Compensation Act 2004.
PURPOSE
To increase the subsidy payable under the HomeFront program for the purchase of aids and appliances from $163 max. pa to $187 max. pa and to provide a mechanism for indexing that subsidy.
The HomeFront Program operates under paragraph 11.9 of the
MRCA Treatment Principles. The MRCA Treatment Principles are made under paragraph 286(1)(a) of the Military Rehabilitation and Compensation Act 2004. The HomeFront Program provides for small grants to be made to entitled persons (eg former members of the Defence Force eligible for treatment under Part 3 of Chapter 6 of the Act) who live at home to enable them to purchase items that will facilitate their physical safety around the home eg bathroom grab-rails; non-slip paint for steps.
The Homefront subsidy is to be increased (indexed) annually on
1 January in each year (assuming the application of the following formula results in an increase). The amount of increase is worked out by ascertaining the percentage increase in the movement of the Wage Cost Index 5 (WCI 5) for the previous financial year. The Australian Government Treasury advises the Department of Veterans’ Affairs of the increase in the WCI 5. The existing subsidy (including as indexed) is then multiplied by the percentage increase in the WCI 5, the resulting amount rounded, if need be, and the final amount is the increase in the subsidy for the Calendar year in question.
RETROSPECTIVITY
None. The Instrument commences after registration on the Federal Register of Legislative Instruments and on 5 October 2006.
CONSULTATION
The Rule-Maker (the Military Rehabilitation and Compensation Commission) decided that consultation in respect of the attached instrument was not necessary because the instrument is beneficial in nature and no useful purpose would appear to be served by consulting interested parties.