EXPLANATORY STATEMENT
Military Rehabilitation and Compensation (Specification in Relation to Definition of Specified Number) Instrument 2015
EMPOWERING PROVISION
Subsection 138(3) of the Military Rehabilitation and Compensation Act 2004 (the Act).
PURPOSE
The attached instrument (2015 No. MRCC 68) revokes and re-makes the MRCA Instrument No. 9 of 2004 dated 28 June 2004 (Number Specified in Writing by the Commission for the Purposes of the Definition of “Specified Number” in subsection 138(3) of the Military Rehabilitation and Compensation Act 2004) (the instrument) for the purposes of the sunsetting exercise. On 1 April 2016 the instrument will “sunset” (expire) unless re-made.
The Department of Veterans’ Affairs (DVA) has reviewed the instrument and found the instrument is still required. Accordingly the instrument has been re-made and the instrument is the same in substance as the instrument it replaces.
It should be noted that subsection 26(1B) of the Legislative Instruments Act 2003 provides that the requirement for an explanatory statement to explain the purpose and operation of an instrument may be met by an explanation that the instrument replaces a specified earlier legislative instrument or a specified provision of an earlier legislative instrument and is the same in substance as the specified instrument or provision. Accordingly, the explanation of the attached instrument is limited to the abovementioned statement that the instrument replaces the former instrument in almost exactly the same form.
Section 138 of the Act provides for the conversion of small amounts of weekly incapacity payments into a lump sum payment. Under the Act, if a client is receiving incapacity payments less than an indexed ceiling amount, has another form of income (work or superannuation) and the degree of their incapacity is unlikely to change, the client may be offered this lump sum.
The intention of this provision is to reduce the cost to the Commonwealth of administering incapacity payments and to provide the person with the benefit of access to a lump sum rather than a relatively small weekly benefit.
The lump sum amount is calculated using the formula contained in subsection 138(3) of the Act. This formula is the same that is used under section 30 of the Safety Rehabilitation and Compensation Act 1998 and uses a specified number in the calculation.
The specified number means the number specified in writing by the Military Rehabilitation and Compensation Commission (the Commission). Under the attached instrument the Commission specifies the number 0.03.
CONSULTATION
No because the attached instrument did not change the specified number in the instrument it replaced. Accordingly it was considered consultation with clients in respect of the attached instrument was inappropriate. Also, consultation was considered inappropriate because of the technical nature of the matter covered by the instrument in that the instrument contains a specified number that is used in a formula to calculate a lump sum amount. The instrument does not disadvantage any person.
RETROSPECTIVITY
None. The instrument commences on the day after registration.
DOCUMENTS INCORPORATED-BY-REFERENCE
No.
HUMAN RIGHTS STATEMENT
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
The attached legislative instrument does not engage an applicable right or freedom. It merely supplies a component (specified number) in a process to calculate a lump sum.
Conclusion
The attached legislative instrument does not engage a human right.
Military Rehabilitation and Compensation Commission
Rule-Maker