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Purpose 1: Compensation and Support

Maintain and enhance the quality of life of clients by improving their financial wellbeing and self-sufficiency.

Performance criteria and results

No. Performance criteria Target 2016–17 Actual result 2017–18 Actual result Achieved
✓ Achieved           — Partially achieved           ✗ Not achieved
Performance criteria source: PBS = DVA Portfolio Budget Statements 2017–18, CP = DVA Corporate Plan 2017–2021
DRCA = Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988, MRCA = Military Rehabilitation and Compensation Act 2004, PIR = pensioner initiated review
  1. As of October 2017, the DRCA replaced the Safety, Rehabilitation and Compensation Act 1988 (SRCA) for current and former Australian Defence Force members who have injuries or illnesses arising from their service prior to 1 July 2004. Program 1.6 and related measures have been updated to reflect this legislative change.
  2. Combined claims results in line with the 2017–18 PBS.
  3. Individual claim results in line with the 2018–19 PBS.
Program 1.1: Deliver income support and allowances   PBS p. 40, CP p. 26
1.1.1 Measurement: The number of days within which 50% of cases will be processed (days) Claims: 30 PIRs: 10 9
7
4
7

1.1.2 Quality: Correctness rate Claims: >95% PIRs: >95% 97.6%
97.4%
98.1%
98.0%

Program 1.2: Deliver disability support   PBS p. 41, CP p. 27
1.2.1 Measurement: The number of days within which 50% of claims will be finalised (days) 100 59 54
1.2.2 Quality: Correctness rate >95% 96.0% 89.4%
Program 1.3: Deliver assistance to Defence widow/ers and dependants PBS p. 42, CP p. 27
1.3.1 Measurement: The number of days within which 50% of claims will be finalised (days) 30 24 19
1.3.2 Quality: Correctness rate >95% 93.3% 89.2%
Program 1.4: Deliver other compensation   PBS p. 43, CP p. 28
Funeral Benefits    
1.4.1 Measurement: The number of days within which 50% of claims will be processed (days) 10 1 1
1.4.2 Quality: Correctness rate >95% 99.2% 100.0%
Defence Home Loans        
1.4.3 Measurement: The number of days within which 50% of claims will be finalised (days) 18 2 4
1.4.4 Quality: Correctness rate >95% 100.0% 100.0%
Program 1.5: Deliver the children’s education scheme   PBS p. 44, CP p. 28
1.5.1 Measurement: The number of days within which 50% of claims will be finalised (days) 28 9 10
1.5.2 Quality: Correctness rate >95% 98.1% 100.0%
1.5.3 Quality (Client satisfaction): Percentage of responses to the annual Education Schemes Satisfaction Survey indicating that clients thought the support provided helped the student reach their academic potential >75% 85.2% 82.6%
1.5.4 Quality (Achieving the schemes’ outcomes): Percentage of the education schemes’ clients progressing through each level of their education or career training >85% 99.0% 90.1%
Program 1.6: Deliver income support and compensation under MRCA and DRCA1 PBS p. 45, CP p. 28
1.6.1 Measurement: The number of days within which 50% of claims will be finalised (days)
  • MRCA liability claims
  • DRCA liability claims
  • MRCA permanent impairment claims
  • DRCA permanent impairment claims
  • MRCA incapacity claims
  • DRCA incapacity claims
 
 
 
100
100
100
100
50
50
 
 
 
93
88
152
137
49
57
 
 
 
72
77
78
71
34
36
 
 
 





1.6.2 Quality: Correctness rate2
  • All MRCA claims
  • All DRCA claims
 
 
>95%
>95%
 
 
91.3%
87.1%
 
 
91.9%
93.6%
 
 

  Quality: Correctness rate3
  • MRCA liability claims
  • DRCA liability claims
  • MRCA permanent impairment claims
  • DRCA permanent impairment claims
  • MRCA incapacity claims
  • DRCA incapacity claims
 
 
>95%
>95%
>95%
>95%
>95%
>95%
 
 
95.0%
85.7%
96.2%
90.9%
80.7%
86.2%
 
 
92.7%
93.9%
90.4%
95.9%
92.0%
91.2%
 
 





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Analysis of performance against Purpose 1

Performance criteria category Performance criteria no. Further information in the annual report
Timeliness 1.1.1, 1.2.1, 1.3.1, 1.4.1, 1.4.3, 1.5.1, 1.6.1 Part 1 Performance — Compensation and support
Quality 1.1.2, 1.2.2, 1.3.2, 1.4.2, 1.4.4, 1.5.2, 1.5.3, 1.5.4, 1.6.2

Timeliness

The increased number of liability claims received under the MRCA and DRCA is a combination of the expected increase in claims received and a change to the way claims are registered due to the implementation of new systems.

In 2017–18, the Department continued efforts to improve the claims process, which resulted in the timeliness targets for all compensation and income support claims being achieved across Purpose 1 program areas.

The development of a single processing system under the Improving Processing Systems Program has assisted with improved claims processing times for rehabilitation and compensation claims (programs 1.2, 1.3 and 1.6). Around 85 per cent of rehabilitation and compensation claims — including liability, needs assessments, incapacity payments, permanent impairment claims, rehabilitation assistance, and Non-Liability Health Care (NLHC) claims — are now processed in one system. The remaining 15 per cent of rehabilitation and compensation claims are expected to be incorporated in future releases in 2018–19.

All Defence Service Homes loan subsidies (Program 1.4) were processed well within the target of 18 days. This is an indication that clients continue to receive an excellent level of service, which is reflected in the fact that no complaints were received in regard to processing timeliness. Half of the requests received were finalised within four days, greatly assisting the clients to proceed to meet their housing needs.

Children’s education scheme claims (Program 1.5) were processed well within their target of 28 days.

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Quality

Program 1.1 achieved the quality rate, maintaining a high correctness rate throughout the year. Funeral benefits (Program 1.4) and children’s education scheme claims (Program 1.5) achieved 100 per cent correctness rates. Defence Service Homes loans also achieved a 100 per cent correctness rate, again maintaining the reputation of a well-administered scheme, ensuring that clients receive the highest standard of service.

The quality target for Program 1.4 continues to be achieved. No critical errors occurred in 2017–18 for Defence Service Homes loans, again maintaining the reputation of a well-administered scheme ensuring that clients receive the highest standard of service. Clients can be confident they are receiving their correct entitlements under the Defence Service Homes loans scheme.

DVA continues to improve the quality of work in Purpose 1 program areas by using information provided by the quality assurance program to manage resource allocation, improve training and development packages, target policy and procedural support, and engage in performance management. Improving information technology support through the implementation of new processing systems is also expected to improve the quality of decision-making under programs 1.2, 1.3 and 1.6.

Under the Veterans’ Children Education Scheme and the Military Rehabilitation and Compensation Act Education and Training Scheme, education allowances are paid to eligible children of ADF members who have died or been severely injured as a result of service. The schemes also provide for special assistance, student support services, guidance and counselling for eligible students undertaking primary, secondary and tertiary full-time study within Australia.

The results from the 2018 Education Schemes Satisfaction Survey (Program 1.5) demonstrate that a very high percentage of recipients believe that the support provided under the schemes was effective or very effective in helping students to reach their academic potential.

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Summary

Significant improvements have been achieved against Purpose 1 in relation to timeliness, for which all targets were achieved in 2017–18. Improving the claims process continues to be a key strategy in the Department’s ongoing commitment to providing a more efficient service. Further improvements to business practices will enable efficiencies, and the continued focus on quality performance will ensure that clients are receiving the benefits and entitlements to which they are entitled.

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