EXPLANATORY STATEMENT

Military Rehabilitation and Compensation (Weekly Payments – Class of Persons) Specification 2011

Summary

The Military Rehabilitation and Compensation (Weekly Payments – Class of Persons) Specification 2011 (the Specification) is made by the Military Rehabilitation and Compensation Commission (Commission) under subsections 224(4), 248(4) and 303(4) of the Military Rehabilitation and Compensation Act 2004 (the Act).

The purpose of the Specification is to specify a class of persons to whom the payment under the Act known as the “MRCA supplement” is payable and who may be paid the supplement, which is otherwise required by the Act to be paid fortnightly, weekly.  

The Commission will then determine whether a particular person who is within that class of persons should be paid the fortnightly MRCA supplement in two weekly payments.

Background

As part of the strategy for reducing homelessness, the Australian Government’s White Paper, The Road Home: a National Approach to Reducing Homelessness, stated that weekly payments would be available to Centrelink’s most vulnerable customers including people who are homeless. The Department of Veterans’ Affairs (DVA) also makes payments to people who may be in vulnerable circumstances and so the strategy is also relevant to DVA. The intention is for weekly payments of the MRCA supplement to be specifically targeted to those recipients who are financially vulnerable and who have additional support needs due to difficulties in managing their payment under a fortnightly payment system.

Currently, in most cases, the MRCA supplement is paid fortnightly in arrears.  However, this Specification sets out the classes of persons who may be paid the supplement weekly, in arrears.

There are other types of payments under the Act. Although some of these payments may be paid weekly, the Commission has directed, under section 430 of the Act, that they be paid fortnightly. At the date of the attached instrument it is proposed that the Commission consider directing that these other fortnightly payments be paid weekly in the same circumstances that the MRCA supplement may be paid weekly e.g. client is homeless.

Explanation of provisions

Section 1 provides that the name of the Specification is the Military Rehabilitation and Compensation (Weekly Payments – Class of Persons) Specification 2011.

Section 2 provides that the Specification commences on the day after the day it is registered on the Federal Register of Legislative Instruments.

Section 3 is a definition section.

Section 4(1) specifies the class of persons for the purpose of making the weekly MRCA supplement, being persons who meet each of the following requirements:

(a)   the person is an Australian resident and living in Australia;

(b)   the person is receiving the MRCA supplement under the provisions listed in subsection 4(1);

(c)   the person would benefit from having their fortnightly MRCA supplement paid weekly; and

(d) the person has voluntarily agreed to be paid the total amount of their fortnightly MRCA supplement in respect of a fortnightly payment period in two weekly payments as provided by subsections 224(2), 248(2) and 303(2) of the Act, and has not revoked or withdrawn that agreement.

Subsection 4(2) sets out non-exclusively, circumstances under which a person is taken to benefit from having their fortnightly MRCA supplement paid weekly.  Those circumstances are that the person does not have access to safe, secure and adequate housing, or is using emergency accommodation or a refuge; or the person is financially vulnerable and significantly disadvantaged.

Subsection 4(3) sets out, non-exclusively, circumstances under which a person is taken not to have access to safe, secure and adequate housing. This definition is derived from the Supported Accommodation Assistance Act 1994, and is intended to encompass the particular characteristics or incidents of a person’s accommodation that may adversely affect them or place them at risk.  This definition encompasses people who would be considered homeless under the definitions of primary, secondary and tertiary homelessness currently used by the Australian Bureau of Statistics but is preferred for the purpose of the instrument because it defines homelessness by its impacts on individuals and provides consistency with other instruments made under social security law which also use this definition.

Whether a person is financially vulnerable and significantly disadvantaged is not defined in the Specification, as it is intended to be a broad and flexible concept examining many aspects of a person’s circumstances. It is intended that guidance be given to decision-makers through administrative guidance material, such as that on the Consolidated Library of Information and Knowledge (an internal DVA information-resource).

Examples of matters that decision-makers would be expected to consider include whether:

(a)   the person has suffered a recent traumatic relationship breakdown, particularly if domestic or family violence was involved;

(b)   the person or their partner or a family member has a diagnosed mental illness, acquired brain injury or acute cognitive impairment;

(c)   the person or their partner or a family member has a gambling, substance or alcohol dependence that is severe enough to impede the person from managing their finances on a fortnightly basis;

(d)   the person has ongoing budgeting difficulties with his or her fortnightly payment arrangements;

(e)   the person has suffered an unforeseen event that has substantially reduced his or her income or requires significant additional expenditure; or

(f)    the person has previously been offered other services and referrals which have failed to stabilise the person’s financial circumstances.

This Specification is beneficial in nature and intended to assist a broad class of persons.  In addition, the person must consent to be paid weekly before the Commission can determine that a person is to receive their fortnightly MRCA supplement on a weekly basis.

Consultation

Consultation in respect of a similar instrument under the Veterans’ Entitlements Act 1986 was undertaken with the Department of Families and Housing, Community Services and Indigenous Affairs (FaHCSIA) which has prepared a similar instrument. In respect of its instrument, FaHCSIA consulted Centrelink and the Department of Education, Employment and Workplace Relations. A similar instrument has also been made by the Minister for Employment and Workplace Relations to specify the class of persons receiving social security payments for which that Minister has responsibility.

Retrospective

No.

Regulatory Impact on Business

None.

Statutory Pre-conditions

Apart from requirements relating to all legislative instruments (e.g. under the Legislative Instruments Act 2003), no statutory preconditions needed to be satisfied prior to the making of the attached instrument.