Statement of Principles concerning adjustment disorder (Reasonable Hypothesis) (No. 58 of 2025)

Administered by Department of Veterans' Affairs

Legislation au F2025L00722 In force Legislative Instrument

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EXPLANATORY STATEMENT

 

STATEMENT OF PRINCIPLES CONCERNING

ADJUSTMENT DISORDER

(REASONABLE HYPOTHESIS) (NO. 58 OF 2025)

 

VETERANS' ENTITLEMENTS ACT 1986

MILITARY REHABILITATION AND COMPENSATION ACT 2004

 

  1.              This is the Explanatory Statement to the Statement of Principles concerning adjustment disorder (Reasonable Hypothesis) (No. 58 of 2025).

Background

  1.              The Repatriation Medical Authority (the Authority), under subsection 196B(8) of the Veterans' Entitlements Act 1986 (the VEA), repeals Instrument No. 23 of 2016 (Federal Register of Legislation No. F2016L00269) determined under subsections 196B(2) and (8) of the VEA concerning adjustment disorder.
  2.              The Authority is of the view that there is sound medical-scientific evidence that indicates that adjustment disorder and death from adjustment disorder can be related to particular kinds of service.  The Authority has therefore determined pursuant to subsection 196B(2) of the VEA a Statement of Principles concerning adjustment disorder (Reasonable Hypothesis) (No. 58 of 2025).  This Instrument will in effect replace the repealed Statement of Principles.

Purpose and Operation

  1.              The Statement of Principles will be applied in determining claims under the VEA and the Military Rehabilitation and Compensation Act 2004 (the MRCA).
  2.              The Statement of Principles sets out the factors that must as a minimum exist, and which of those factors must be related to the following kinds of service rendered by a person:

 operational service under the VEA;

 peacekeeping service under the VEA;

 hazardous service under the VEA;

 British nuclear test defence service under the VEA;

 warlike service under the MRCA;

 non-warlike service under the MRCA,

before it can be said that a reasonable hypothesis has been raised connecting adjustment disorder or death from adjustment disorder, with the circumstances of that service.  The Statement of Principles has been determined for the purposes of both the VEA and the MRCA.

  1.              This Instrument results from an investigation notified by the Authority in the Government Notices Gazette of 7 November 2023 concerning adjustment disorder in accordance with section 196G of the VEA.  The investigation involved an examination of the sound medical-scientific evidence now available to the Authority, including the sound medical-scientific evidence it has previously considered.
  2.              The contents of this Instrument are in similar terms as the repealed Instrument.  Comparing this Instrument and the repealed Instrument, the differences include:
  • specifying a day of commencement for the Instrument in section 2;
  • revising the definition of 'adjustment disorder' in subsection 7(2);
  • revising the reference to 'ICD-10-AM code' in subsection 7(4);
  • revising the factor in subsection 9(3) being exposed to repeated or extreme aversive details of severe traumatic events;
  • revising the factor in subsection 9(4) concerning having a person with whom one has a close family bond or a close personal relationship experience a category 1A stressor;
  • revising the factor in subsection 9(6) concerning having a medical illness or injury;
  • deleting factor concerning experiencing the death of a significant other;
  • deleting factor concerning having persistent pain;
  • deleting factor concerning having a severe, chronic medical condition;
  • new definitions of 'clinical onset' and 'DSM-5-TR' in Schedule 1 - Dictionary;
  • revising the definitions of 'category 1B stressor', 'category 2 stressor', 'hostile or life-threatening environment' and 'witness' in Schedule 1 - Dictionary; and
  • deleting the definitions of 'being exposed to repeated or extreme aversive details of severe traumatic events', 'corpse', 'DSM-5', 'persistent pain', 'severe, chronic medical condition' and 'significant other'.

Incorporation

  1.              This Instrument incorporates by reference the Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, Text Revision (DSM-5-TR), Washington, DC, American Psychiatric Association, 2022.  A copy of this document is available from the offices of the Repatriation Medical Authority, Level 8, 480 Queen St, Brisbane, Queensland 4000, by contacting the Registrar on telephone (07) 3815 9404.

Consultation

  1.              Prior to determining this Instrument, the Authority advertised its intention to undertake an investigation in relation to adjustment disorder in the Government Notices Gazette of 7 November 2023, and circulated a copy of the notice of intention to investigate to a wide range of organisations representing veterans, service personnel and their dependants.  The Authority invited submissions from the Repatriation Commission, the Military Rehabilitation and Compensation Commission, organisations and persons referred to in section 196E of the VEA, and any person having expertise in the field.  No submissions were received for consideration by the Authority in relation to the investigation.
  2.          On 28 February 2025, the Authority wrote to organisations representing veterans, service personnel and their dependants regarding the proposed Instrument and the medical-scientific material considered by the Authority.  This letter emphasised the deletion of factors relating to:
  • Experiencing the death of a significant other;
  • Having persistent pain;
  • Having a severe, chronic medical condition.

The Authority provided an opportunity to the organisations to make representations in relation to the proposed Instrument prior to its determination.  No submissions were received for consideration by the Authority.  No changes were made to the proposed Instrument following this consultation process.

Human Rights

  1.          This instrument is compatible with the Human Rights and Freedoms recognised or declared in the International Instruments listed in Section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.  A Statement of Compatibility with Human Rights follows.

Finalisation of Investigation

  1.          The determining of this Instrument finalises the investigation in relation to adjustment disorder as advertised in the Government Notices Gazette of 7 November 2023.

References

  1.          A list of references relating to the above condition is available on the Authority's website at: www.rma.gov.au. Any other document referred to in this Statement of Principles is available on request to the Repatriation Medical Authority at the following address:

              

Email:    info@rma.gov.au

Post:      The Registrar

Repatriation Medical Authority

GPO Box 1014

BRISBANE    QLD    4001

 


Statement of Compatibility with Human Rights

(Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011)

 

Instrument No.:   Statement of Principles No. 58 of 2025

Kind of Injury, Disease or Death: Adjustment disorder

 

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

1. This Legislative Instrument is determined pursuant to subsection 196B(2) of the Veterans' Entitlements Act 1986 (the VEA) for the purposes of the VEA and the Military Rehabilitation and Compensation Act 2004 (the MRCA).  Part XIA of the VEA requires the determination of these instruments outlining the factors connecting particular kinds of injury, disease or death with service such being determined solely on the available sound medical-scientific evidence.

2. This Legislative Instrument:-

  • facilitates claimants in making, and the Repatriation Commission and the Military Rehabilitation and Compensation Commission in assessing, claims under the VEA and the MRCA respectively, by specifying the circumstances in which medical treatment and compensation can be extended to eligible persons who have adjustment disorder;
  • facilitates the review of such decisions by the Veterans' Review Board and the Administrative Appeals Tribunal;
  • outlines the factors which the current sound medical-scientific evidence indicates must as a minimum exist, before it can be said that a reasonable hypothesis has been raised, connecting adjustment disorder with the circumstances of eligible service rendered by a person, as set out in clause 5 of the Explanatory Statement;
  • replaces Instrument No. 23 of 2016; and
  • reflects developments in the available sound medical-scientific evidence concerning adjustment disorder  which have occurred since that earlier instrument was determined. 

3. The Instrument is assessed as being a technical instrument which improves the medico-scientific quality of outcomes under the VEA and the MRCA. 

Human Rights Implications

4. This Legislative Instrument does not derogate from any human rights. It promotes the human rights of veterans, current and former Defence Force members as well as other persons such as their dependents, including:

  • the right to social security (Art 9, International Covenant on Economic, Social and Cultural Rights; Art 26, Convention on the Rights of the Child and Art 28, Convention on the Rights of Persons with Disabilities) by helping to ensure that the qualifying conditions for the benefit are 'reasonable, proportionate and transparent'[1];
  • the right to an adequate standard of living (Art 11, ICESCR; Art 27, CRC and Art 28, CRPD) by facilitating the assessment and determination of social security benefits;
  • the right to the enjoyment of the highest attainable standard of physical and mental health (Art 12, ICESCR and Art 25, CRPD), by facilitating the assessment and determination of compensation and benefits in relation to the treatment and rehabilitation of veterans and Defence Force members;
  • the rights of persons with disabilities by facilitating the determination of claims relating to treatment and rehabilitation (Art 26, CRPD); and
  • ensuring that those rights "will be exercised without discrimination of any kind as to race, colour, sex, language, religion, political or other opinion, national or social origin, property, birth or other status" (Art 2, ICESCR).

Conclusion

This Legislative Instrument is compatible with human rights as it does not derogate from and promotes a number of human rights.

 

Repatriation Medical Authority

 

 

 

 

 

 

[1] In General Comment No. 19 (The right to social security), the Committee on Economic, Social and Cultural Rights said (at paragraph 24) this to be one of the elements of ensuring accessibility to social security.

Overview

The Statement of Principles concerning adjustment disorder (Reasonable Hypothesis) (No. 58 of 2025) was enacted to address the need for updated medical-scientific evidence concerning adjustment disorder in veterans and Defence Force members. This legislation was introduced by the Repatriation Medical Authority under the Veterans' Entitlements Act 1986 and the Military Rehabilitation and Compensation Act 2004. It was determined after an investigation into the medical-scientific evidence, and it replaces the previous Instrument No. 23 of 2016. The policy objective of this instrument is to facilitate the assessment and determination of claims for social security, compensation, and rehabilitation benefits for those who have developed adjustment disorder as a result of their service, ensuring that the qualifying conditions for such benefits are reasonable, proportionate, and transparent. The new Statement of Principles specifies the circumstances under which medical treatment and compensation can be extended to eligible individuals, reflecting the latest sound medical-scientific evidence available. The Statement of Principles outlines the minimum factors that must exist for a reasonable hypothesis to be raised, connecting adjustment disorder with the service rendered by the individual, thus guiding the assessment process for claims under the Veterans' Entitlements Act and the Military Rehabilitation and Compensation Act. This legislation is designed to improve the medico-scientific quality of outcomes, thereby promoting the human rights of veterans and Defence Force members, including their right to social security and the highest attainable standard of physical and mental health. It does not derogate from any human rights and ensures that these rights are exercised without discrimination.

Scope and Application

The Statement of Principles concerning adjustment disorder (Reasonable Hypothesis) (No. 58 of 2025) applies to individuals who have rendered operational service, peacekeeping service, hazardous service, British nuclear test defence service, warlike service, or non-warlike service as defined under the Veterans' Entitlements Act 1986 and the Military Rehabilitation and Compensation Act 2004. The legislation is applicable nationally, with its jurisdiction extending across Commonwealth, state, and territory boundaries in Australia. The Act provides a framework for determining the eligibility of veterans and Defence Force members for compensation and medical treatment related to adjustment disorder, ensuring that claims are assessed based on sound medical-scientific evidence. This legislative instrument replaces the previously repealed Statement of Principles No. 23 of 2016 and incorporates updates reflecting the latest medical-scientific evidence concerning adjustment disorder. The Authority has determined this instrument to be compatible with human rights, promoting the rights of veterans, current and former Defence Force members, and their dependents to social security, an adequate standard of living, and the highest attainable standard of physical and mental health.

Key Provisions

The Statement of Principles concerning adjustment disorder (Reasonable Hypothesis) (No. 58 of 2025) outlines the factors necessary to establish a reasonable hypothesis connecting adjustment disorder with service rendered by a person, as required under subsection 196B(2) of the Veterans' Entitlements Act 1986 (VEA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). This document facilitates claims for medical treatment and compensation for veterans and service personnel suffering from adjustment disorder, replacing the previously repealed Instrument No. 23 of 2016. The Statement of Principles is designed to assist the Repatriation Commission and the Military Rehabilitation and Compensation Commission in assessing claims, as well as the Veterans' Review Board and the Administrative Appeals Tribunal in reviewing such decisions. The Statement of Principles imposes obligations on claimants and the relevant authorities to establish the connection between adjustment disorder and the service rendered. Claimants must provide evidence that the factors outlined in the Statement of Principles were present during their service and that these factors are related to the service in question. The authorities are required to assess these claims based on the sound medical-scientific evidence provided and ensure that the benefits are extended to those who meet the criteria set out in the Statement of Principles. There are no explicit offences or penalties outlined in the Statement of Principles itself. However, any breaches related to fraudulent claims or misrepresentation of facts may be subject to penalties under the VEA and MRCA. The VEA provides for civil and criminal penalties for fraudulent claims, including fines and imprisonment. The MRCA also includes provisions for penalties where claims are made in bad faith, with potential fines and imprisonment for those found guilty of such offences. The consequences of non-compliance with the provisions of the Statement of Principles primarily revolve around the denial of benefits and compensation for those who do not meet the specified criteria. Claimants who fail to provide sufficient evidence or meet the outlined factors may have their claims rejected. Additionally, any individuals found to have made fraudulent claims may face civil or criminal penalties as outlined in the VEA and MRCA. This Statement of Principles is compatible with human rights, promoting the rights of veterans and service personnel to social security, adequate living standards, and access to health care. It ensures that these rights are exercised without discrimination, aligning with various international human rights instruments.

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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.