EXPLANATORY STATEMENT
MRCA Treatment Principles (HomeFront - Frequency of Subsidy) Instrument 2009
EMPOWERING PROVISION
Section 286 of the Military Rehabilitation and Compensation Act 2004 (the Act).
PURPOSE
The attached instrument (M46/2009) amends the MRCA Treatment Principles. The MRCA Treatment Principles is a legislative instrument made under subsection 286(2) of the Act and sets out the circumstances in which the Military Rehabilitation and Compensation Commission (Commission) may accept financial liability for treatment provided to members and former members of the Defence Force and their dependants (entitled persons).
The attached Instrument amended the MRCA Treatment Principles (the Principles) to alter HomeFront subsidies to one per 12 month period rather than one per calendar year as was formerly the case.
The HomeFront Program operates under paragraph 11.9 of the
Principles. The Program provides for small grants to be made to entitled persons eligible for treatment under Part 3 of Chapter 6 of the Act who live at home to enable them to purchase items that will facilitate their physical safety around the home e.g. bathroom grab-rails and non-slip strips for steps. Under the Instrument financial assistance to a maximum amount of $200 is available per 12 month period towards the cost of minor home modifications that reduce the risk of falls and accidents.
Prior to the attached Instrument a subsidy could be paid only once in a calendar year. Unfortunately this formula provided scope for an assessor, towards the end of a calendar year, to recommend that an entitled person only required say, one handrail, when in fact the person required two, resulting in the payment of a $200 subsidy, but at the commencement of the next calendar year, the assessor would recommend the entitled person required the other handrail, resulting in the payment of another $200 subsidy.
If the entitled person had received both handrails at the same time, the subsidy would have been limited to $200 instead of $400.
By permitting the subsidy only once in a 12 month period, instead of once in a calendar year, “year straddling” will not occur and this could deter assessors from making split-assessments which unnecessarily resulted in payment of a double subsidy, because the entitled person would need to wait longer for the next assessment i.e. 12 months.
RETROSPECTIVITY
None.
CONSULTATION
Yes. The Ex-Service Organisations Round Table was consulted on the proposal and the outcome was favourable.
DOCUMENTS INCORPORATED -BY-REFERENCE
No.
FURTHER EXPLANATION
Attachment A
Attachment A
Items
Paragraph [1] sets out the name of the Instrument.
Paragraph [2] provides that the Instrument commences on the 29th day from and including the day after the day it is registered on the Federal Register of Legislative Instruments. This allows for a period of notice to entitled persons and other relevant parties under the HomeFront Program.
Schedule
Item 1 omits paragraph 11.9.1 and substitutes a new paragraph 11.9.1 and inserts new paragraphs 11.9.1A and 11.9.1B.
Paragraph 11.9.1
New paragraph 11.9.1 is the same as the former provision except that the relevant period is 12 months and not a calendar year. The provision will enable the Commission to assist in providing aids and appliances for accident prevention and personal safety for an entitled person and will limit financial assistance to once in any period of 12 months.
Paragraph 11.9.1A
New paragraph 11.9.1A specifies that a period of 12 months commences on the date that the Commission approves financial assistance for an aid or appliance and that the Commission will not approve financial assistance if a period of 12 months has not elapsed from and including the date of any previous approval.
Paragraph 11.9.1B
New paragraph 11.9.1B covers the situation where the Commission approved financial assistance prior to the commencement of this Instrument and on the commencement date of the Instrument a period of 12 months had not expired from and including the date of approval. In this situation, new paragraph 11.9.1B provides that the approval is taken to have been granted under this Instrument and the period of 12 months commences on the date of the previous approval.
Overview
The MRCA Treatment Principles (HomeFront - Frequency of Subsidy) Instrument 2009 was enacted to address a gap in the Military Rehabilitation and Compensation Act 2004, specifically targeting the inefficiency of the HomeFront subsidy system. Previously, subsidies were limited to one per calendar year, which sometimes led to unnecessary splits in assessments and subsequent double subsidies for required aids and appliances. The instrument, made under the authority of Section 286 of the Military Rehabilitation and Compensation Act 2004 by the Commonwealth Parliament, aims to streamline the subsidy process by changing the eligibility period for subsidies to a 12-month period rather than a calendar year. This change is designed to prevent "year straddling," where an assessor might recommend multiple aids or appliances across different parts of the year, resulting in double subsidies. The instrument was favourably reviewed by the Ex-Service Organisations Round Table and does not apply retrospectively.
Scope and Application
The MRCA Treatment Principles (HomeFront - Frequency of Subsidy) Instrument 2009, made under section 286 of the Military Rehabilitation and Compensation Act 2004, pertains to the financial assistance provided by the Military Rehabilitation and Compensation Commission for treatment and home modifications for entitled persons, which include members and former members of the Defence Force and their dependants. The Instrument amends the treatment principles to alter the frequency of HomeFront subsidies, ensuring that a subsidy is granted only once every 12 months rather than annually, thereby preventing the issue of "year straddling" where multiple subsidies could be erroneously paid in a single calendar year. This change aims to deter assessors from making split assessments that could result in the unnecessary payment of double subsidies. The Instrument’s amendments are effective from the 29th day after its registration on the Federal Register of Legislative Instruments, providing a transition period for relevant parties. The changes do not apply retroactively, and the Ex-Service Organisations Round Table has been consulted, with a favourable outcome. The Instrument incorporates specific provisions to define the 12-month period for subsidy approvals and to handle situations where approvals were made before the Instrument’s commencement.
Key Provisions
The MRCA Treatment Principles (HomeFront - Frequency of Subsidy) Instrument 2009, as referenced in section 286 of the Military Rehabilitation and Compensation Act 2004, introduces changes to how subsidies under the HomeFront Program are allocated. The HomeFront Program, as outlined in paragraph 11.9 of the Principles, offers financial assistance to eligible individuals to help them make minor home modifications that improve their safety, such as installing grab-rails or non-slip strips. The key change introduced by the Instrument is that subsidies are now limited to one per 12-month period rather than one per calendar year. This change is designed to prevent "year straddling," where an individual might receive separate subsidies for parts of a single modification, thereby receiving more than the intended $200 maximum subsidy.
This Instrument imposes specific obligations on the Military Rehabilitation and Compensation Commission (Commission) and the entitled persons. The Commission must now approve financial assistance for home modifications under paragraph 11.9.1, ensuring that such assistance is only granted once in any 12-month period. Paragraph 11.9.1A specifies that the 12-month period begins on the date the Commission approves financial assistance for an aid or appliance. Additionally, paragraph 11.9.1B addresses situations where financial assistance was approved before the Instrument's commencement but within the last 12 months, ensuring continuity in the application of the new rules. Entitled persons must comply with these new rules to receive the subsidy, ensuring that they do not attempt to claim multiple subsidies for parts of the same modification.
Failure to comply with the new requirements could result in unintended consequences for both the Commission and the entitled persons. While the Instrument does not explicitly outline specific offences or penalties for breaches, the overarching Military Rehabilitation and Compensation Act 2004 provides a framework for dealing with non-compliance. Under the Act, non-compliance could potentially lead to civil or criminal penalties, depending on the severity and intent of the breach. For instance, knowingly making false claims could result in fines or other legal actions under the relevant sections of the Act. It is important for both the Commission and entitled persons to adhere to the new 12-month period rule to avoid any adverse consequences.