EXPLANATORY STATEMENT
Veterans' Entitlements (Treatment Principles – Veterans’ Access Payment Increase) Instrument 2006
EMPOWERING PROVISION
Section 90 of the Veterans’ Entitlements Act 1986 (the Act).
PURPOSE
The purpose of the attached Instrument is to amend the Treatment Principles to increase the additional payment (Veterans’ Access Payment) Local Medical Officers (LMO) may receive for providing certain medical services to veterans or their dependants who are eligible for treatment under the Act (entitled persons).
The Treatment Principles are made under section 90 of the Act and set out the circumstances in which the Repatriation Commission may accept financial liability for treatment provided to entitled persons.
An LMO may be paid two distinct payments for treating an entitled person. The main payment is worked out by reference to the Medicare Benefits Schedule and the subsidiary payment (Veterans’ Access Payment) is set in the Treatment Principles.
Before the attached Instrument, the Veterans’ Access Payment was:
- for a medical service other than a Level A attendance (defined in the Medicare Benefits Schedule) — $4.00.
- for a Level A attendance — $5.50.
Pursuant to the attached Instrument the Veterans’ Access Payment is now:
- for a medical service other than a Level A attendance (defined in the Medicare Benefits Schedule) — $4.20.
- for a Level A attendance — $5.75.
RETROSPECTIVITY
Yes. The attached Instrument will be taken to have commenced on
1 November 2006 ie it is retrospective. Subsection 12(2) Legislative Instruments Act 2003 provides that a retrospective instrument that disadvantages a person, or imposes a liability on a person, is of no effect. The attached instrument does not disadvantage any person or impose a liability on any person. It is beneficial in nature (increases fees for Local Medical Officers).
CONSULTATION
The Rule-Maker (Repatriation Commission) decided that consultation with clients or service providers in respect of the attached Instrument was not necessary because the Instrument was beneficial and, in any event, needed to be made relatively quickly so as to be consistent with modified Treatment Principles made under the new Australian Participants in British Nuclear Tests (Treatment) Act 2006.
The Treatment Principles made under this new Act contained increased “Access Payments” and it would have been anomalous and unfair if lesser access payments for the same services were paid under similar Instruments.
Overview
The Veterans' Entitlements (Treatment Principles – Veterans’ Access Payment Increase) Instrument 2006, introduced by the Repatriation Commission under the authority of section 90 of the Veterans’ Entitlements Act 1986, aims to enhance the financial compensation provided to Local Medical Officers (LMO) who deliver specific medical services to veterans or their dependents eligible for treatment under the Act. This legislative instrument seeks to rectify a gap by increasing the Veterans’ Access Payment, a subsidiary payment to the primary Medicare-based compensation, thereby recognising the additional services rendered by LMOs in treating entitled persons. The instrument is retrospective, effective from 1 November 2006, and ensures that the increased payments do not disadvantage any individual or impose new liabilities, as stipulated by the Legislative Instruments Act 2003. The Repatriation Commission deemed consultation unnecessary due to the beneficial nature of the amendments and the need for expeditious implementation to align with similar increases under the Australian Participants in British Nuclear Tests (Treatment) Act 2006.
Scope and Application
The Veterans' Entitlements (Treatment Principles – Veterans’ Access Payment Increase) Instrument 2006 applies to Local Medical Officers (LMO) who provide certain medical services to veterans or their dependants eligible for treatment under the Veterans’ Entitlements Act 1986. This legislation specifies the additional payment, known as the Veterans’ Access Payment, that LMOs can receive for their services to entitled persons. The Instrument is retrospective, commencing on 1 November 2006, and is designed to ensure that the increased payments are beneficial without disadvantaging any person or imposing new liabilities. The Repatriation Commission, as the rule-maker, determined that consultation was unnecessary due to the beneficial nature of the changes and the need for expedience to align with the new Australian Participants in British Nuclear Tests (Treatment) Act 2006. The scope of this Instrument is national, impacting all Local Medical Officers who treat entitled persons under the Act across Australia.
Key Provisions
The main operative sections of the Veterans' Entitlements (Treatment Principles – Veterans’ Access Payment Increase) Instrument 2006 (F2007L00088) (the Instrument) pertain to the adjustment of the Veterans' Access Payment (VAP) for Local Medical Officers (LMOs) providing medical services to entitled persons, which are veterans or their dependants who are eligible for treatment under the Veterans’ Entitlements Act 1986 (the Act). Section 90 of the Act empowers the making of the Instrument, which amends the Treatment Principles to increase the VAP (sections 1 and 2). The VAP is the additional payment that LMOs receive for their services, in addition to the main payment determined by the Medicare Benefits Schedule. The VAP has been increased from $4.00 to $4.20 for medical services other than a Level A attendance, and from $5.50 to $5.75 for a Level A attendance.
The Act imposes specific obligations on the parties involved, primarily the Repatriation Commission, which is responsible for accepting financial liability for treatment provided to entitled persons under the Treatment Principles. The Commission must adhere to the updated payment rates specified in the Instrument when calculating payments to LMOs for their services rendered to entitled persons. The LMOs, on the other hand, are required to comply with the new rates set out in the Instrument when submitting claims for payment.
The Instrument provides that the amendments will be effective retrospectively from 1 November 2006. However, despite its retrospective nature, the Instrument does not disadvantage any person or impose a liability on any person. Rather, it is of a beneficial nature as it increases the fees for LMOs. Under the Legislative Instruments Act 2003, a retrospective instrument that disadvantages a person or imposes a liability on a person is of no effect, but this does not apply in this case as the Instrument is beneficial. The Repatriation Commission deemed consultation with clients or service providers unnecessary, given the beneficial nature of the Instrument and the need for its expeditious implementation to align with the modified Treatment Principles under the Australian Participants in British Nuclear Tests (Treatment) Act 2006.
There are no specified offences, penalties, or civil/criminal consequences for breach of the Instrument. However, non-compliance with the updated VAP rates could lead to disputes between LMOs and the Repatriation Commission over the correct amount of payment due for services rendered. The Repatriation Commission may be required to audit claims and ensure adherence to the new rates. Failure to comply with the amended Treatment Principles could potentially result in disputes and the need for resolution through administrative or judicial processes.