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

Administered by Department of Veterans' Affairs

Legislation au F2011L00238 Not in force Legislative Instrument

Legislation content

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.

 

Overview

The Military Rehabilitation and Compensation (Weekly Payments – Class of Persons) Specification 2011 was enacted to address the need for more flexible payment options for certain recipients of the MRCA supplement. This instrument was made by the Military Rehabilitation and Compensation Commission under the Military Rehabilitation and Compensation Act 2004, with the objective of providing weekly payments to those individuals who are financially vulnerable and have additional support needs due to difficulties in managing their fortnightly payments. This Specification aims to target the most vulnerable recipients, such as those who are homeless or experiencing significant financial difficulties, thereby offering them a more suitable payment option. The Specification specifies a class of persons who may be eligible for weekly payments, provided they meet certain criteria, including residing in Australia, receiving the MRCA supplement, and voluntarily agreeing to the weekly payment arrangement. This legislative measure seeks to support those in need by offering a more tailored approach to payment distribution.

Scope and Application

The Military Rehabilitation and Compensation (Weekly Payments – Class of Persons) Specification 2011 applies to Australian residents who receive the MRCA supplement under the Military Rehabilitation and Compensation Act 2004 and who are determined by the Military Rehabilitation and Compensation Commission to benefit from having their fortnightly MRCA supplement paid weekly. This applies to persons who lack access to safe, secure, and adequate housing or are otherwise financially vulnerable and significantly disadvantaged, as outlined in the specification. The specification does not apply to recipients who have not voluntarily agreed to receive their payments weekly or who have revoked their agreement. The Specification applies Commonwealth-wide and comes into effect on the day after it is registered on the Federal Register of Legislative Instruments. The Specification does not include any exclusions or exemptions but rather directs that weekly payments be considered for those meeting the specified criteria. The Commission may also extend the weekly payment provision to other fortnightly payments under the Act in the future, subject to similar criteria.

Key Provisions

The Military Rehabilitation and Compensation (Weekly Payments – Class of Persons) Specification 2011 (the Specification) outlines the criteria for determining eligibility for weekly payments of the Military Rehabilitation and Compensation Act 2004 (MRCA) supplement. According to Section 4(1), a person qualifies for weekly payments if they are an Australian resident living in Australia, receiving the MRCA supplement under specific provisions, would benefit from weekly payments, and have voluntarily agreed to this payment method without revoking or withdrawing their consent. Section 4(2) further defines circumstances under which a person is considered to benefit from weekly payments, such as lacking access to safe, secure, and adequate housing, using emergency accommodation or a refuge, or being financially vulnerable and significantly disadvantaged. Section 4(3) provides a non-exhaustive list of factors that indicate a lack of access to safe, secure, and adequate housing, drawing from the definition in the Supported Accommodation Assistance Act 1994. The Specification imposes obligations on the Military Rehabilitation and Compensation Commission (Commission) to determine whether an individual within the specified class should receive their MRCA supplement in two weekly payments. The Commission must ensure that the person meets the eligibility criteria, including the voluntary agreement to receive weekly payments and the absence of revocation or withdrawal of that agreement. Additionally, the Commission must consider various factors to assess whether the person would benefit from weekly payments, such as their housing situation and financial vulnerability. The Specification also mandates that the Commission provide guidance to decision-makers through administrative materials to assist in determining financial vulnerability and significant disadvantage. Under the Military Rehabilitation and Compensation Act 2004, failure to comply with the requirements set out in the Specification may lead to civil or criminal consequences. However, the Specification itself does not explicitly outline specific offences, penalties, or consequences for non-compliance. Any breaches of the Act’s provisions or the Specification’s requirements would be subject to the penalties and consequences as outlined in the Act. These could include fines, imprisonment, or other legal actions for non-compliance with legislative requirements related to the administration and distribution of MRCA supplement payments. The exact penalties would depend on the nature and severity of the breach, as well as any relevant provisions within the Military Rehabilitation and Compensation Act 2004.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.