EXPLANATORY STATEMENT
STATUTORY RULES 1988 NO. 74
ISSUED BY THE AUTHORITY OF THE
MINISTER FOR DEFENCE
SCIENCE AND PERSONNEL
NAVAL FINANCIAL REGULATIONS (AMENDMENT)
The Naval Financial Regulations (“the Regulations” made under the Naval Defence Act 1910, prescribe certain financial conditions of service for members of the Navy.
Background
Members of the Defence Force receive free medical and dental treatment to maintain the level of health and fitness required for Defence Force service. However, it is the practice for the Commonwealth to recover the costs of treatment where the necessity for the treatment arose in circumstances which give a member an enforceable claim against another (eg, a motor vehicle accident).
Regulation 244 of the Regulations enables a determination to be made requiring a member of the Navy who has an enforceable claim against another person to repay to the Commonwealth, subject to the comments below, the cost of treatment. The amount set out in the determination is then included 1 member in the member’s claim against the other person.
In practice, where a member has such a claim, the member is not required to repay to the Commonwealth the costs incurred on the member’s behalf unless and until the member receives damages in respect of those costs.
Where treatment is provided by a non-Commonwealth hospital the amount to be recovered is established by the account or accounts rendered by the hospital. However, where treatment is provided by a service or Repatriation hospital, no specific calculations are made of the cost of treating a particular Defence Force patient because there is no requirement for the Commonwealth to bill itself for the treatment. The cost of medical and dental treatment in a service or Repatriation hospital is accordingly assessed at a daily average rate which includes the cost to the hospital of providing the treatment as well as a proportion of normal hospital running costs.
Paragraph 244(3)(c) of the Regulations provides that the amount recoverable from a member who has received medical or dental treatment as an in-patient of a service or Repatriation hospital in a State is not to exceed the amounts set out in Schedule 2 to the Regulations.
Schedule 2 was inserted to overcome the difficulties encountered in legal proceedings of proving that the amount which a member was liable to repay to the Commonwealth did not exceed the expense incurred by the Commonwealth in providing treatment, by deeming the prescribed scale of rates to be the cost of a member’s treatment in a service or Repatriation hospital.
The rates adopted are those prepared by the Department of Veterans’ Affairs for internal costing purposes, showing the daily cost of treating a patient in a Repatriation hospital in the various States. That Department has now advised updated rates which more accurately reflect the cost involved from the period commencing on 1 July 1985.
Naval Financial Regulations (Amendment)
The Statutory Rule amends Schedule 2 by omitting Item 10, substituting a new Item 10 and inserting Items 11 and 12. The amendments increase the maximum amount recoverable for in-patient treatment in a service or Repatriation hospital from the period commencing on 1 July 1985 to reflect the new daily rates as advised by the Department of Veterans’ Affairs.
The new rates will apply only to determinations made after the commencement of the Statutory Rule.
Commencement
The Statutory Rule comes into operation on the date of gazettal.
Overview
The Naval Financial Regulations (Amendment) Statutory Rule 1988 No. 74, issued under the authority of the Minister for Defence Science and Personnel, seeks to amend the Naval Financial Regulations made under the Naval Defence Act 1910. These Regulations prescribe certain financial conditions of service for members of the Navy. The amendment addresses the need to update the daily rates for the cost of in-patient medical and dental treatment in service or Repatriation hospitals, ensuring that the amounts recoverable from Navy members reflect current costs more accurately. This amendment responds to the practical challenges of proving the actual costs incurred by the Commonwealth in providing such treatments, particularly when treatment is administered by Repatriation hospitals where no specific billing occurs. The objective is to ensure fairness in the recovery of costs from Navy members who have enforceable claims against others for treatment necessitated by circumstances such as motor vehicle accidents.
The Statutory Rule introduces new rates for the maximum amount recoverable from members for in-patient treatment in service or Repatriation hospitals, effective from 1 July 1985, based on updated rates provided by the Department of Veterans' Affairs. These updated rates aim to accurately reflect the current costs involved in providing such treatments. The changes will apply only to determinations made after the commencement of the Statutory Rule, which comes into effect on the date of its gazettal.
Scope and Application
The Naval Financial Regulations (Amendment) Statutory Rule, issued under the authority of the Minister for Defence Science and Personnel, pertains specifically to members of the Australian Navy, detailing financial conditions of service. It applies to members of the Navy who have received medical or dental treatment in circumstances where they have an enforceable claim against another party, such as in the case of a motor vehicle accident. This regulation enables the recovery of costs from the member once they receive damages in respect of those costs. The amendment primarily affects the maximum amount recoverable for in-patient treatment in service or Repatriation hospitals, updating the daily rates to more accurately reflect current costs. These updated rates will apply to determinations made after the commencement of the Statutory Rule. Geographically, this regulation operates within the Commonwealth jurisdiction, and it does not extend to state or territory laws unless specifically referenced. The new rates provided in the amendment will apply only to determinations made post the commencement of the Statutory Rule.
Key Provisions
The Naval Financial Regulations (Amendment) Statutory Rules 1988 No. 74, issued under the authority of the Minister for Defence Science and Personnel, amend the existing Naval Financial Regulations. These regulations, which are made under the Naval Defence Act 1910, concern the financial conditions of service for members of the Navy. The primary focus of the amendment is to adjust the maximum amounts recoverable from Navy members who have received medical or dental treatment in service or Repatriation hospitals due to circumstances where they have an enforceable claim against another party. Regulation 244(3)(c) is particularly pertinent, as it stipulates that the amount recoverable from a member who has been treated as an in-patient in a service or Repatriation hospital in a State should not exceed the rates set out in Schedule 2.
The amendments to Schedule 2 involve removing Item 10, substituting it with a new Item 10, and adding Items 11 and 12. The purpose of these changes is to update the maximum amounts recoverable for in-patient treatment in a service or Repatriation hospital from the period commencing on 1 July 1985. These new rates more accurately reflect the costs involved, as advised by the Department of Veterans’ Affairs. Importantly, these updated rates will apply only to determinations made after the commencement of the Statutory Rule. The Statutory Rule comes into effect on the date of its gazettal.
The obligations imposed by the Naval Financial Regulations and their amendments are primarily on Navy members who have received medical or dental treatment under circumstances where they have a claim against another party. Members must repay to the Commonwealth the costs incurred unless and until they receive damages in respect of those costs. The regulations mandate that the repayment amounts are capped at the rates specified in Schedule 2, which are based on the daily average cost of treatment and include a proportion of normal hospital running costs. Members must ensure compliance with these financial obligations, and the Commonwealth is entitled to seek repayment from the member as per the provisions outlined in the regulations.
Breach of the obligations set forth in the Naval Financial Regulations could lead to civil or criminal consequences. While the Statutory Rules do not explicitly detail the penalties for non-compliance, under the Naval Defence Act 1910 and related regulations, penalties for breaches can include fines and other sanctions. The exact penalties would depend on the nature and severity of the breach, but the overarching aim is to ensure that the financial obligations of Navy members are met to maintain the integrity of the Commonwealth's health and medical cost recovery system.