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Appendix C: Claims, service and liability provision statistics

Tables C1 to C7 provide an overview of the claims processed and transport arranged by DVA under the Veterans’ Entitlements Act 1986, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA) in 2017–18.

Tables C8 and C9 provide an updated actuarial assessment of movement in the liability for income support, compensation, health and other care services under the DRCA and MRCA.

Veterans' Entitlements Act

Table C1: VEA claims processed 2016–17 and 2017–18
  2016–17 2017–18 Change (%)
VEA = Veterans’ Entitlements Act 1986
1.   Includes applications for disability pensions, applications for increases in disability pension and assessments/reviews.
Note: Where results for 2016–17 are provided for comparison, they have been updated based on information available after the end of the 2016–17 financial year, and therefore may differ from results published in the 2016–17 Annual Report.
New claims 10,917 11,071 1.4
Pensioner initiated reviews 74,874 63,210 –15.6
Primary disability claims1 14,505 12,267 –15.4
War widow/ers’ pension claims 1,489 1,316 –11.6
Funeral benefit claims 4,203 3,740 –11.0

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Table C2: VEA determinations and acceptance rates 2016–17 and 2017–18
  2016–17 2017–18
Number
determined
Acceptance
rate (%)
Number
determined
Acceptance
rate (%)
n.a. = not applicable, VEA = Veterans’ Entitlements Act 1986
Disability support
Compensation conditions determined 15,713 59.2 14,272 61.2
Applications for increases in disability pension determined 1,615 58.9 1,517 66.2
Cases on hand at 30 June 2,447 n.a. 2,819 n.a.
War widow/ers and dependants
Pension claims determined 1,328 71.8 1,130 68.1
Cases on hand at 30 June 104 n.a. 129 n.a.

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Table C3: Top 15 claimed conditions under the VEA (based on Statements of Principles) 2017–18
Disability Number
accepted
Acceptance
rate (%)
Number
not accepted
Total
VEA = Veterans’ Entitlements Act 1986
Note: In determining the majority of liability cases, the Department refers to the Repatriation Medical Authority Statements of Principles (SOPs). The 15 most frequently used SOPs covered 59% of the conditions determined under the VEA in 2017–18.
Osteoarthritis 1,157 69 522 1,679
Sensorineural hearing loss 1,020 93 78 1,098
Tinnitus 972 93 77 1,049
Lumbar spondylosis 614 76 195 809
Posttraumatic stress disorder 371 69 166 537
Solar keratosis 463 94 27 490
Depressive disorder 288 61 185 473
Non-melanotic malignant neoplasm of the skin 393 96 18 411
Sprain/strain 313 79 81 394
Alcohol dependence 236 63 136 372
Rotator cuff syndrome 64 24 199 263
Cervical spondylosis 68 27 186 254
Fracture 133 62 81 214
Ischaemic heart disease 139 74 49 188
Acquired cataract 163 98 3 166
Total 6,394 76 2,003 8,397

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Safety, Rehabilitation and Compensation (Defence-related Claims) Act

Table C4: DRCA claims processed 2016–17 and 2017–18
  2016–17 2017–18
DRCA = Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (previously the Safety, Rehabilitation and Compensation Act 1988)
Liability
Claims received 7,139 10,122
Conditions determined 6,462 6,917
Proportion of conditions accepted 55.0% 56.0%
Cases on hand at 30 June 1,822 2,478
Permanent impairment
Claims received 5,934 6,423
Claims determined 5,265 5,453
Proportion of claims accepted 30.0% 33.9%
One-off lump-sum payments 1,630 2,017
Cases on hand at 30 June 1,370 1,344
Incapacity compensation
Compensation paid $75.9m $80.3m
Payees 2,126 2,185
Compensation for dependants
Compensation paid $17.2m $14.6m
Payees 78 72

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Military Rehabilitation and Compensation Act

Table C5: MRCA claims processed 2016–17 and 2017–18
  2016–17 2017–18
MRCA = Military Rehabilitation and Compensation Act 2004
Liability
Claims received 9,316 13,185
Conditions determined 19,683 23,222
Proportion of conditions accepted 73.3% 79.3%
Cases on hand at 30 June 2,314 3,308
Permanent impairment
Claims received 6,155 7,295
Claims determined 4,895 6,088
Proportion of claims accepted 59.7% 74.7%
One-off lump-sum payments 2,157 3,398
Cases on hand at 30 June 1,998 1,695
Incapacity compensation
Compensation paid $132.9m $153.8m
Payees 4,180 4,910
Compensation for dependants
Compensation paid $13.7m $35.2m
Payees 68 165

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Table C6: Top 15 most frequently claimed conditions under the MRCA (based on Statements of Principles) 2017–18
Condition Accepted Acceptance
rate (%)
Not
accepted
Total
claims
MRCA = Military Rehabilitation and Compensation Act 2004
Note: In determining the majority of liability cases, the Department refers to the Repatriation Medical Authority Statements of Principles (SOPs). The 15 most frequently used SOPs covered 62% of the conditions determined under the MRCA in 2017–18.
Sprains and strains 2,247 92 206 2,453
Osteoarthritis 1,756 94 110 1,866
Tinnitus 1,656 99 24 1,680
Sensorineural hearing loss 1,121 93 87 1,208
Lumbar spondylosis 1,114 96 47 1,161
Depressive disorder 830 84 161 991
Rotator cuff syndrome 955 97 29 984
Fracture 778 89 92 870
Posttraumatic stress disorder 641 89 79 720
Labral tear 431 95 23 454
Chondromalacia patella 415 96 17 432
Shin splints 414 96 17 431
Alcohol use disorder 354 86 57 411
Joint instability 364 89 43 407
Adjustment disorder 288 78 83 371
Total 13,364 93 1,075 14,439

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Repatriation Transport Scheme

Table C7: Claims for reimbursement and arranged transport 2013–14 to 2017–18
  2013–14 2014–15 2015–16 2016–17 2017–18
  1. Provided through the Booked Car with Driver Scheme.
Claims for reimbursement 159,905 150,871 146,537 143,256 168,970
Arranged transport trips1 1,002,844 1,273,128 1,211,805 1,323,956 1,301,691

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Adjustments to the military rehabilitation and compensation Acts liability provisions

Tables C8 and C9 show the movement in the long-term liability for income support and compensation and health and other care services under the DRCA and MRCA over the past two years, based on the advice of the Australian Government Actuary. The movement is recognised as an expense in DVA’s financial statements. Due to the nature of the liability provision, significant adjustments can occur between years.

Table C8: Movement in DRCA and MRCA liability under Outcome 1 2016–17 and 2017–18
    2016–17     2017–18  
DRCA
($m)
MRCA
($m)
Total
($m)
DRCA
($m)
MRCA
($m)
Total
($m)
DRCA = Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (previously the Safety, Rehabilitation and Compensation Act 1988), MRCA = Military Rehabilitation and Compensation Act 2004
Changes in valuation assumptions 24.1 532.7 556.8 316.1 759.3 1,075.4
Movements in income support and compensation payments –116.8 410.7 293.9 –142.7 227.3 84.6
Interest rate –103.6 –385.6 –489.2 46.0 253.7 299.7
Total expenses –196.3 557.8 361.5 219.4 1,240.3 1,459.7

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Table C9: Movement in DRCA and MRCA liability under Outcome 2 2016–17 and 2017–18
    2016–17     2017–18  
DRCA
($m)
MRCA
($m)
Total
($m)
DRCA
($m)
MRCA
($m)
Total
($m)
DRCA = Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (previously the Safety, Rehabilitation and Compensation Act 1988), MRCA = Military Rehabilitation and Compensation Act 2004
Changes in valuation assumptions –62.8 966.2 903.4 76.8 128.8 205.6
Movements in health and other care services –24.3 279.4 255.1 –26.2 250.6 224.4
Interest rate –82.9 –411.1 –494.0 56.5 351.5 408.0
Total expenses –170.0 834.5 664.5 107.1 730.9 838.0

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