EXPLANATORY STATEMENT
STATUTORY RULES 1985 NO. 218
ISSUED BY THE AUTHORITY OF THE MINISTER FOR DEFENCE
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 person (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 by the 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, since there is no requirement for the Commonwealth to bill itself for the treatment of members of the Defence Force, no specific calculations are made of the cost of treating a particular Defence Force patient. 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 for that State, for the period during which treatment occurred, 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 cost per bed per day per patient in a Repatriation hospital in the various States. That Department has now advised updated rates which more accurately reflect the cost involved for the period commencing 1 July 1982.
Naval Financial Regulations (Amendment)
The Statutory Rule amends Schedule 2 to the Regulations by omitting Item 7, substituting a new Item 7 and inserting Items 8, 9 and 10. The amendment increases the maximum amount recoverable for in-patient treatment in a service or Repatriation hospital during the period commencing on 1 July 1982 to the new daily rates as advised by the Department of Veterans’ Affairs. The new rates apply for the purposes of 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 Rules 1985 No. 218, issued by the authority of the Minister for Defence, aim to address the need for updated cost recovery rates for medical and dental treatment provided to Navy members in service or Repatriation hospitals. Enacted to amend the Naval Financial Regulations made under the Naval Defence Act 1910, the amendment responds to the Commonwealth’s practice of recovering treatment costs from members when their treatment arose from circumstances giving them an enforceable claim against another person. The policy objective is to ensure the updated rates more accurately reflect the true cost of treatment, thereby facilitating fair recovery practices.
The regulations were updated following advice from the Department of Veterans’ Affairs, which provides internal costing rates for Repatriation hospitals. The amendment to Schedule 2 of the Regulations, as implemented by this Statutory Rule, substitutes and increases the maximum recoverable amounts for in-patient treatment in service or Repatriation hospitals, effective from 1 July 1982. This adjustment aims to overcome difficulties in legal proceedings related to proving the cost of treatment and ensures the amounts recovered align with the updated rates, thus enhancing the accuracy and fairness of the cost recovery process.
Scope and Application
The Naval Financial Regulations (Amendment) Statutory Rule 1985 No. 218, issued under the authority of the Minister for Defence, amends the Naval Financial Regulations made under the Naval Defence Act 1910. These Regulations prescribe the financial conditions of service for members of the Navy, including provisions for the recovery of costs of medical and dental treatment from members who have enforceable claims against other parties for the treatment. The amendment specifically updates the maximum amounts recoverable from Navy members who have received in-patient treatment in service or Repatriation hospitals in states, reflecting updated rates as provided by the Department of Veterans' Affairs. The updated rates are to be applied to determinations made following the commencement of this Statutory Rule. The scope of the amendment is confined to the financial recovery provisions under the Naval Financial Regulations and does not extend beyond the parameters set out in the Regulations themselves. The changes apply nationally across Australia, impacting all members of the Navy who are subject to the Naval Financial Regulations.
Key Provisions
The Naval Financial Regulations (Amendment) Statutory Rule 1985 No. 218 primarily amends Schedule 2 to the Naval Financial Regulations, specifically affecting the maximum amounts recoverable from Navy members for medical and dental treatment received from service or Repatriation hospitals (Section 2). The amendment updates the daily rates for in-patient treatment costs in these hospitals, reflecting more accurate figures as advised by the Department of Veterans’ Affairs. These new rates apply to determinations made after the commencement of the Statutory Rule. The changes are designed to ensure that the cost recovery process is consistent with the actual expenses incurred by the Commonwealth.
Under the Naval Financial Regulations, members of the Navy who have an enforceable claim against another person for treatment costs are required to repay the Commonwealth the cost of treatment, as determined by the relevant authority (Regulation 244(3)(c)). Specifically, for treatment provided in a service or Repatriation hospital, the amount recoverable is limited to the daily average rate set out in Schedule 2, which is adjusted by the amendment to reflect updated rates. The member is not required to repay the costs unless and until they receive damages for those costs from the liable party. The determination of the recoverable amount is crucial for ensuring that the Commonwealth does not incur a loss due to the provision of medical and dental treatment under such circumstances.
The amendment imposes specific obligations on the parties involved, particularly the Navy members who have received treatment under circumstances that give rise to a claim against another person. They are required to include the determined amount in their claim against the liable party and ensure that the repayment to the Commonwealth is made in accordance with the updated rates. The Department of Veterans' Affairs has a role in providing the updated cost rates which are incorporated into Schedule 2, ensuring that the financial recovery process is based on accurate and current data. The updated rates must be used in any determinations made after the Statutory Rule's commencement.
Failure to comply with the provisions of the amended Regulations could result in legal and financial repercussions for the Navy members. If a member fails to repay the determined amount to the Commonwealth, they could face civil or administrative penalties. While the Statutory Rule itself does not explicitly outline specific penalties, breaches of similar provisions under the Naval Defence Act 1910 and associated regulations could lead to fines or other civil actions. The precise penalties would depend on the applicable laws and the nature of the breach.