EXPLANATORY STATEMENT
Military Rehabilitation and Compensation (Multiple Entitlement Exclusion) Determination 2026
EMPOWERING PROVISION
The Military Rehabilitation and Compensation Commission (the Commission) makes this instrument under subsection 424L(1) of the Military Rehabilitation and Compensation Act 2004 (the Act).
PURPOSE
The Military Rehabilitation and Compensation (Multiple Entitlement Exclusion) Determination 2026 (the instrument) repeals the Military Rehabilitation and Compensation (Multiple Entitlement Exclusion) Determination 2024 (the repealed instrument).
The instrument provides the circumstances in which a veteran is not entitled to an energy supplement under section 83A of the Act. The purpose of this is to avoid payment of double benefits.
BACKGROUND
On 1 July 2026, the Veterans’ Entitlements, Treatment and Support (Simplification and Harmonisation) Act 2025 (the VETS Act) introduces the Additional Disablement Amount (the ADA) into the Act. Where a veteran is entitled to be paid the ADA under the Act, section 220D of the Act provides that an energy supplement may be payable.
A veteran entitled to permanent impairment compensation under the Act may also be entitled to an energy supplement under section 83A of the Act. However, to avoid payment of double benefits because of the dual entitlement following the introduction of the ADA into the Act, the instrument provides an exclusion.
OVERVIEW
Subsection 424L(1) of the Act allows the Commission to determine by legislative instrument the prescribed circumstances in which a veteran is not entitled to a “clean energy bonus” under the Act. Section 5 of the Act defines a clean energy bonus to include an energy supplement. Relevantly, subsection 424L(2) of the Act requires that the prescribed circumstances must relate to a veteran’s entitlement to a clean energy bonus under the Act or the Veterans’ Entitlements Act 1986 (the VEA).
The instrument provides that an energy supplement under section 83A of the Act for a day is not payable if the veteran is entitled to an energy supplement for that day under sections 209A or 220D of the Act, or section 62A of the VEA. This means that a veteran who is entitled to permanent impairment compensation under the Act is not entitled to the energy supplement under section 83A of the Act for a day, if the veteran is also entitled to an energy supplement because they receive the Special Rate Disability Pension, ADA or the Disability Compensation Payment for that day. This ensures that veterans receive the intended level of financial assistance that is necessary to assist with energy costs.
EXPLANATION OF PROVISIONS
Section 1 states the name of the instrument.
Section 2 provides that the instrument commences on 1 July 2026.
Section 3 sets out the authority for the Commission making the instrument, namely subsection 424L(1) of the Act, in reliance upon section 24A of the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004 and section 4 of the Acts Interpretation Act 1901.
Section 4 repeals the repealed instrument.
Section 5 provides the definitions for this instrument.
Section 6 provides that a veteran is not entitled to an energy supplement under section 83A of the Act for a day, if the veteran is already entitled to an energy supplement for that day under sections 209A or 220D of the Act, or section 62A of the VEA.
Consultation
In respect of the VETS Act, the Department of Veterans’ Affairs undertook extensive consultation with stakeholders, including three rounds of public consultation on the simplification and harmonisation of veterans’ portfolio legislation. The outcome of this process produced strong support from veterans, ex-service organisations and other stakeholders and informed the pathway to establish the Act as the sole, ongoing scheme for veterans’ compensation and rehabilitation from 1 July 2026. This included that the new ADA be provided for under the Act from 1 July 2026. This supports a harmonised and integrated system for the provision of compensation under a single, ongoing Act into the future.
Further consultation specific to this instrument was deemed unnecessary, because the policy enabled by the instrument otherwise replicates the repealed instrument to ensure a continuation of the existing policy upon the commencement of the VETS Act on 1 July 2026.
Human rights implications
This instrument is compatible with the human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A full statement of compatibility is set out in Attachment A.
Making the instrument
The instrument is made by the Military Rehabilitation and Compensation Commission.
Approved by
Military Rehabilitation and Compensation Commission
Rule-maker
Attachment A
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Military Rehabilitation and Compensation (Multiple Entitlement Exclusion) Determination 2026
This Disallowable Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 (the recognised rights).
Overview of the Disallowable Legislative Instrument
The Military Rehabilitation and Compensation (Multiple Entitlement Exclusion) Determination 2026 (the instrument) repeals the Military Rehabilitation and Compensation (Multiple Entitlement Exclusion) Determination 2024 (the repealed instrument) and makes a new instrument in similar terms. The instrument is made by the Military Rehabilitation and Compensation Commission (the Commission) under subsection 424L(1) of the Military Rehabilitation and Compensation Act 2004 (the Act).
The Veterans’ Entitlements, Treatment and Support (Simplification and Harmonisation) Act 2025 (the VETS Act) introduces a new energy supplement for those in receipt of the Additional Disablement Amount under section 220D of the Act.
The instrument provides that a veteran is not entitled to an energy supplement under section 83A of the Act if they are entitled to an energy supplement under section 220D of the Act. The instrument otherwise continues the policy enabled by the repealed instrument by ensuring a veteran in receipt of an energy supplement under sections 209A of the Act and 62A of the Veterans’ Entitlements Act 1986 (the VEA) are not entitled to an energy supplement under section 83A of the Act.
Human rights implications
The instrument engages the right to social security contained in article 9 of the International Covenant on Economic Social and Cultural Rights (ICESCR). The right to social security requires, among other things, the right to a minimum essential level of benefits for all individuals and families that will enable them to acquire at least essential health care, basic shelter and housing, water and sanitation, foodstuffs, and the most basic forms of education. The energy supplement is intended to enable veterans with limited means to continue to have adequate access to essential services in line with Australia’s social security obligations under the ICESCR.
The UN Committee on Economic Social and Cultural Rights has stated that qualifying conditions for benefits must be reasonable, proportionate and transparent. The instrument provides reasonable, proportionate and transparent conditions for the energy supplement by ensuring a veteran does not receive dual entitlements when only one entitlement to the energy supplement is intended. There is no scope for the exercise of a discretion under the instrument as the conditions are prescriptive.
Conclusion
The instrument is compatible with human rights because where it engages the right to social security, the conditions provided in the instrument are reasonable, proportionate and transparent by ensuring that veterans do not receive dual entitlements.
Military Rehabilitation and Compensation Commission
Rule-Maker