EXPLANATORY STATEMENT
Veterans’ Entitlements (Class of Debts – Victorian Bushfires) Specification 2009
Background
Section 206 of the Veterans’ Entitlements Act 1986 (the Act) provides, among other things, that the Repatriation Commission (Commission) may decide to waive the Commonwealth’s right to recover debts arising under the Act that are included in a class of debts specified by the Minister (in this case the Minister for Veterans’ Affairs).
The purpose of this instrument is to specify a class of debts that may be waived. This would enable the Commission to waive the Commonwealth’s right to recover debts arising under the Act, incurred by persons who were adversely affected by the 2009 Victorian bushfires. Mirror instruments under the Social Security Law and the Family Assistance Law have also been made to enable the waiver of debts arising from similar circumstances under the Social Security Law and the Family Assistance Law.
The 2009 Victorian bushfires have impacted physically and emotionally on bushfire victims and their families. The reason for the making of this instrument is to ease the physical and emotional impact on any victim of the Victorian bushfires, who are unintentionally receiving an incorrect veterans’ entitlements payment.
Explanation of this instrument
Section 1 sets out the name of the instrument, being the Veterans’ Entitlements (Class of Debts – Victorian Bushfires) Specification 2009.
Section 2 provides that the instrument commences or is taken to have commenced when the Social Security (Waiver of Debts – Victorian Bushfires) (FaHSCIA) Specification 2009 commences or commenced ((FaHSCIA) misspelt).
Section 3 contains definitions relevant to the Specification.
By way of further explanation:
For the definition of “adversely affected by the bushfires in Victoria” it is intended that a causal relationship must exist between the bushfires and any of the circumstances listed in the definition. For example, the utility failure must be caused by the bushfires in Victoria.
For the definition of “seriously injured”, the term also includes the circumstance where a person would require admittance to hospital for their injury under normal circumstances, but due to the bushfire conditions, this was not possible.
For the definition of “psychological trauma”, it is not necessary to prove that a person has actually experienced psychological trauma.
Section 4 specifies the class of debt that may be waived. A debt is in a specified class if:
- the debt was incurred by a person for a period that occurred either wholly or partly during the bushfire period (the period beginning on the commencement of 29 January 2009 and ending at the end of 29 April 2009); and
- during that period the person was adversely affected by the bushfires in Victoria; and
- if the debt was incurred for a period occurring partly during the bushfire period, it is the part of the debt attributable to days occurring in the bushfire period.
Section 5 provides two exceptions to the class of debts specified in section 4. That is, the following types of debts are excluded from the class of debts which may be waived:
- a debt that is incurred by a person if the person knowingly made a false or misleading statement to the Commission or to a person who worked for the Commonwealth, or who knowingly provided false information to the Commission or to a person who worked for the Commonwealth, in relation to that debt; and
- a debt incurred under the compensation recovery regime under Division 3 or 4 of Part IIIC of the Act. Compensation recovery debts do not fall within the class of debts specified by the Minister in the attached instrument, hence the Commission does not have the discretion to waive compensation recovery debts under paragraph 206(1)(b)(ii) of the Act. Compensation recovery debts may occur where individuals and/or their partners have received income support and subsequently receive a compensation payment for economic loss related to a personal injury.
Retrospectivity
The instrument may commence before registration. For the purposes of subsection 12(2) of the Legislative Instruments Act 2003 the instrument does not affect the rights of a person so as to disadvantage the person and nor does the instrument impose a liability on a person. The instrument is beneficial in nature.
Consultation
Public consultation has not been undertaken in relation to the attached instrument as the instrument is of a beneficial nature and interested parties could be expected to agree to it. Consultation was undertaken with the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) which made a virtually identical instrument. FaHCSIA consulted Centrelink and the Department of Education, Employment and Workplace Relations in relation to its instrument. A virtually identical instrument has also been made by the Minister for Employment to allow the waiver of debts for which the Minister for Employment has responsibility.
Regulatory Impact Statement
A Regulatory Impact Statement and a Business Costs Calculator are not required as the waiver of the Commonwealth’s right to recovery veterans’ entitlements debts will have no regulatory or competition impacts, and will not impose compliance costs on businesses.