EXPLANATORY STATEMENT
MRCA Approved Classes of Payments Determination 2015
PURPOSE
The attached instrument is a legislative instrument that has been re-made. Had the instrument not been re-made, it would have been automatically repealed on
1 October 2015.
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.
The Department of Veterans’ Affairs (DVA) has reviewed the instrument and found it is still required. Accordingly, the instrument has been re-made and is essentially the same in substance as the instrument it replaces albeit with minor updating as required.
A short explanation of the instrument is as follows:
Under section 431 of the Military Rehabilitation and Compensation Act 2004 (MRCA) a person may request the Military Rehabilitation and Compensation Commission (Commission) to make payments on their behalf via deductions from an amount of weekly compensation the person receives.
However the MRCA only permits the Commission to make such deductions in order to make payments of a class approved by the Minister for Veterans’ Affairs in a legislative instrument.
Accordingly, the MRCA Approved Classes of Payments 2015 specifies the classes of payments for which a deducted amount may be used as authorised under subsection 431(3) of the MRCA.
Further Explanation
Part A explains the MRCA Approved Classes of Payments Determination 2015.
CONSULTATION
There has been no consultation in respect of the attached instrument because it is being re-made in essentially the same form and benefits are not being affected. Accordingly consultation was considered unnecessary.
RETROSPECTIVITY
None.
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 engage an applicable right or freedom. It relates to the Right to Social Security contained in article 9 of the International Covenant on Economic Social and Cultural Rights.
The Right to Social Security is engaged and promoted by the attached instrument in that the instrument helps a person manage their financial affairs by enabling the Military Rehabilitation and Compensation Commission, at the person’s request, to make deductions from the person’s weekly compensation and make a payment on the person’s behalf e.g. pay a rent bill.
Conclusion
The attached legislative instrument is considered to be compatible with the human right to social security because it assists a person with managing their financial affairs.
Rule-Maker
Minister for Veterans’ Affairs
PART A
MRCA Approved Classes of Payments Determination 2015
The abovementioned instrument sets out classes of payments approved by the Minister for Veterans’ Affairs.
If a person requests the Military Rehabilitation and Compensation Commission (the Commission) to make a deduction from the person’s weekly compensation under the MRCA and use the deduction to make a payment on the person’s behalf then the Commission may do so provided the payment is set out in the instrument.
The instrument sets out the following payments:
- payments to a State Housing Authority, being:
(a) payments of rent;
(b) payments of principal or interest of loans;
(c) payments of debts.
- payments to Westpac Banking Corporation, being:
(a) payments of principal or interest of loans;
(b) payments of insurance premiums.
Overview
The MRCA Approved Classes of Payments Determination 2015 was enacted to address the need for authorised classes of payments that could be deducted from a person’s weekly compensation under the Military Rehabilitation and Compensation Act 2004 (MRCA). This legislative instrument was introduced to ensure that the Military Rehabilitation and Compensation Commission (Commission) can legally make payments on behalf of individuals, which are directly deducted from their compensation payments. The Minister for Veterans’ Affairs was the enacting body, and the instrument was re-made to remain in effect, with minor updates as necessary, ensuring it continues to serve its purpose without alteration in benefits. The policy objective of this instrument is to facilitate better financial management for individuals receiving compensation by enabling authorised deductions for specified payments, thereby promoting the right to social security as outlined in the International Covenant on Economic, Social and Cultural Rights.
Scope and Application
The MRCA Approved Classes of Payments Determination 2015 applies to veterans and their families who receive weekly compensation payments under the Military Rehabilitation and Compensation Act 2004. The Act specifies the classes of payments for which the Military Rehabilitation and Compensation Commission (Commission) can make deductions from these weekly compensation payments to facilitate payments on behalf of the recipients. This legislation is applicable nationally, as it is a Commonwealth instrument. The approved classes of payments are limited to certain categories, such as rent, principal or interest of loans, debts, and insurance premiums, and are directed to specific entities like State Housing Authorities and Westpac Banking Corporation. The Act does not specify exclusions or thresholds but is designed to assist veterans in managing their financial obligations more effectively. The application of this Act is further defined through subordinate instruments that may extend or restrict its scope, though the current Determination remains substantively unchanged from its predecessor. This legislative framework ensures that the financial support provided to veterans is both secure and manageable, aiding in their rehabilitation and compensation process.
Key Provisions
The MRCA Approved Classes of Payments Determination 2015 (sections 1 to 4) lists the specific classes of payments that the Military Rehabilitation and Compensation Commission (Commission) can make on behalf of individuals receiving weekly compensation from the Department of Veterans’ Affairs (DVA), by deducting amounts from their compensation. Section 1 identifies the instrument as the MRCA Approved Classes of Payments Determination 2015. Section 2 authorises the Minister for Veterans’ Affairs to make this determination under section 431 of the Military Rehabilitation and Compensation Act 2004 (MRCA). Section 3 details the approved classes of payments, which include payments to State Housing Authorities for rent, principal or interest of loans, and debts, as well as payments to Westpac Banking Corporation for principal or interest of loans and insurance premiums. Section 4 specifies the commencement date of the Determination.
The Act imposes several obligations on the Commission and the individuals receiving compensation. The Commission must ensure that any payments it makes from deducted compensation amounts are within the approved classes outlined in the Determination (section 3). Individuals requesting deductions from their compensation must ensure that the payments requested fall within the approved classes to be eligible for such deductions (section 431(3) of the MRCA). The Minister for Veterans’ Affairs has the responsibility to review and update the approved classes of payments as necessary, ensuring they remain relevant and beneficial to the recipients (section 2).
There are no specific offences, penalties, or civil/criminal consequences outlined in the Determination itself for breaches of the approved classes of payments. However, any misuse of compensation funds or failure to adhere to the provisions of the MRCA could potentially lead to broader legal consequences under the Act. The MRCA provides for various penalties, including fines and imprisonment, for misuse of compensation funds or fraudulent activities related to compensation payments. The exact penalties would depend on the nature and severity of the breach, as determined under the broader provisions of the MRCA.