Annual Reports Contents >> DVA Annual Report >> Outcome 1 >> Output 1.2—Compensation

Back to section menu

Previous | Next

Output 1.2—Compensation

Objective

• To compensate eligible veterans and other eligible people for the loss of physical or mental well-being resulting from incapacity caused by eligible war or defence service, and the effects of that loss on lifestyle (including employability); and
• To compensate dependants for the death of a spouse/partner or parent as the result of eligible war or defence service.

Description

Under Output 1.2, the Department provides compensation to eligible veterans (including Australian merchant mariners) and their dependants for the tangible effects of war or defence service. Eligible people receive disability pensions, war widow/widower pensions, and ancillary benefits.

Policy development and implementation

Restoration of pre-1984 war widows’ pensions

In the 2001–02 Budget, the Treasurer announced the restoration of war widows’ pensions to those widows who had lost their pensions upon remarriage. Since 1984, war widows have been able to keep their pensions upon remarriage and the budget initiative was designed to correct the anomaly of those widows who had previously relinquished their pension.

The legislation took effect on 1 January 2002. For those successful claims which were submitted in 2001, pensions were paid with effect from 1 January. The date of effect for all successful 2002 claims was the date of lodgement of the claim.

By 30 June 2002, all 2239 of the claims submitted in 2001 had been determined. Of these, 2003 were accepted and the pensions put into payment, 210 were rejected and a small number withdrawn. Most of the rejections were cases where the claimant had never been in receipt of a war widow’s pension and so was not eligible for restoration.

In the period 1 January to 30 June 2002, 488 claims were received. 364 had been accepted and put into payment and 67 had been rejected. The remainder was still under investigation.

There were 40 appeals to the AAT by unsuccessful claimants. Of these, 19 were subsequently withdrawn and 5 conceded by the Commission, with the remaining 16 are still awaiting a decision as at 30 June.

Payment of $25 000 to former PoWs of Japan

The 2001–02 Budget included an initiative to pay $25 000 to certain people held by the Japanese during World War II. Eligible people were those who were alive on 1 January 2001 and who were:

• an Australian veteran held prisoner of war by the Japanese between 7 December 1941 and 29 October 1945; or
• a civilian who was interned by the Japanese between 7 December 1941 and 29 October 1945, who immediately before their internment had Australian domicile; or
• the widow or widower of a veteran or civilian described above.

The legislation also provided for a payment to the estate of an eligible person who died on or after 1 January 2001.

By 30 June 2001, 4902 people had been paid. By 30 June 2002, the total number paid was 7347 and 50 appeals lodged. The appeals related to civilian claimants and involved issues of Australian domicile immediately before the claimant’s internment.

Veterans’ Children Education Scheme

The Veterans’ Children Education Scheme (VCES) provides support services and financial assistance to children of certain deceased or severely incapacitated veterans or members of the defence or peacekeeping forces. Also eligible are Vietnam veterans’ children who do not qualify under the usual VCES eligibility requirements, but who are assessed by a suitably qualified professional as being at risk of harm or injury.

Dependent children of Australian Defence Force members who have been killed or severely injured have access to educational guidance and counselling from the Veterans’ Children Education Boards.

Benefits are available at three levels (primary, secondary and tertiary or career education/training) and include education allowances and other forms of assistance appropriate to the particular type and stage of education. The majority of students in the scheme are the children of Vietnam veterans, mainly special rate (T&PI) pensioners.

In May 2002, the VCES was amended to incorporate the Long Tan Bursary as a VCES benefit. The bursary is open to Australia’s Vietnam veterans’ children up to the age of 25 to help them in their transition to tertiary education. In May 2002, the Minister for Veterans’ Affairs announced the number of Long Tan bursaries available in 2003 would be increased from 14 to 30 (see Outcome 2, page 79).

The total number of children benefiting from the scheme continued to grow during the year. As at 30 June 2002, there were 5 344 students under the scheme. This represents an increase of 3.8 per cent on the previous year. The number of students continuing into tertiary education continues to grow steadily. Forty-five per cent of the children are secondary students and 6 per cent are students in technical studies, while the remainder are evenly distributed between primary and tertiary students.

Defence determinations bearing on VEA benefits

Service in East Timor with Operation TANAGER until 19 May 2002 and Operation CITADEL from 20 May 2002 is warlike service under the VEA. Warlike service provides eligibility for disability pension and service pension coverage under the VEA.

On 7 December 2001, the Minister for Veterans’ Affairs, for and on behalf of the Minister for Defence, determined that service rendered as a member of the ADF allotted for service on or after 11 October 2001 with Operation SLIPPER—(the War on Terrorism) was warlike service under the VEA. The specified area includes Afghanistan and surrounding areas, the Persian Gulf, Red Sea and northern Indian Ocean and the island of Diego Garcia.

Service as a member of the ADF on Operation POLLARD in the Persian Gulf area, which has been non-warlike service under the VEA since 17 February 1998, ceased on 1 October 2001. Non-warlike service provides disability pension but not service pension coverage under the VEA.

Copies of the determination instruments are published in the Consolidated Library of Information and Knowledge, which is available on the DVA website.

Compensation Claims Processing System

The Compensation Claims Processing System (CCPS) continues to be maintained and updated to reflect changes to the Statements of Principles (SoPs)issued by the Repatriation Medical Authority. These SoPs are legislative instruments based on ‘sound medical scientific evidence’ that state the causal factors for injuries and diseases.

Four new versions of the CCPS medical knowledge base were released during 2001–02. These releases incorporated two new SoP conditions and 25 SoP amendments. In addition, enhancements were made to several existing rulebases.

Several major CCPS project enhancements commenced in 2000–01 were completed and implemented in 2001–02. These included replacing International Classification of Diseases (ICD) 9 codes with ICD 10, the introduction of the simplified reasons for decision and the implementation of a Pre-decision Quality Assurance targeting tool. A number of smaller system improvements designed to meet day-to-day processing needs have also been implemented.

A project is under way to develop a communication link between CCPS and the Above General Rate (eligibility) module, to allow the transfer of data between these applications. This will reduce the need to duplicate data and lead to processing efficiencies. The transfer is expected to be implemented in August 2002. Another project to convert existing mainframe ICD 9 data to ICD 10 is expected to be finalised in 2002–03.

A project to redevelop the claims processing system commenced during the year. The project is in its early stages but has been bought about because the existing CCPS is now dated technology and is neither aligned to modern system architecture, nor to e-business and Internet solutions. Redevelopment of the claim processing system aims to improve client service delivery, improve processing efficiency and to align the system with the possible need to process claims under a new military compensation scheme.

Statements of Principles

As at 30 June 2002 there were 268 SoP titles, a net increase of three conditions on the previous year. During the year there were 95 SoP gazettals, comprising eight new SoPs (four conditions), 46 revocations (23 conditions) and 41 amendments (21 conditions—one condition had only one amending instrument). Most of the amendments related to the removal of an unnecessary secondary definition.

The Department has continued to sample and analyse claims determined at both the primary and section 31 review levels to assess the way in which SoPs are applied. The Decision Support Unit produced and distributed five monitoring reports during the year, including a number of follow-up reports on SoPs examined previously. These reviews revealed an improvement in the quality of decision-making following remedial action prompted by the initial reports.

Specialist Medical Review Council

The Specialist Medical Review Council (SMRC) is an independent body that reviews decisions of the Repatriation Medical Authority about Statements of Principles. The SMRC does not deal with individual applications for disability pension but reviews the medical scientific information that was before the RMA in relation to the making of SoPs for injury or disease.

The Minister for Veterans’ Affairs makes appointments to the SMRC and all appointments are on a part-time basis. Members of the SMRC other than the convener are appointed for the purposes of a specific review of an SoP that is before the council, depending on the particular expertise required for that SoP.

The term of Professor Alex Cohen AO as Convener expired on 4 March 2002. The Minister appointed Dr Jonathan Phillips as the convener from 5 March 2002 until 4 March 2004. Dr Phillips’ appointment to the SMRC coincides with his term as Chair of the Committee of Presidents of the Australian Medical Colleges.

The SMRC has no staff of its own. Secretariat support is provided by the Department of Veterans’ Affairs.

One new application for review was lodged during the financial year. Three outstanding applications were finalised. Two of these, for malignant neoplasm of the prostate and hypertension, resulted in declarations by the SMRC. In the third case, for malignant neoplasm of the renal pelvis and ureter, the SMRC was found to have no jurisdiction.

As at 30 June 2002, seven applications were outstanding. Of these, one declaration of a review heard by the SMRC has been held over. Two, malignant neoplasm of the small intestine and myeloma, are listed for hearing in July 2002 and another, chronic lymphoid leukaemia, is expected to be heard in November 2002. The remaining three are re-instituted applications that were previously considered as lapsed. A recent judgement in the Federal Court on an SMRC decision indicates that the SMRC has jurisdiction to hear these three cases.

Support for ex-service organisations

Operational Working Party

The Department consults with ex-service organisations (ESOs) on a wide range of policy and procedural issues through a number of forums. In the Compensation field, the major forum is the Operational Working Party which comprises representatives from all the major ESOs. It is designed to provide two-way feedback on issues relating to claims and appeals processing. It has helped to resolve issues of concern to ESOs and given the Department opportunities to inform ESOs of current issues.

State claims workshops

These provide a useful opportunity for discussion and where appropriate remedy of a range of ESO concerns with policy or procedural matters. Senior officers of the Department and, in some cases, members of the Commission participate in the workshops.

ESO forums

A national forum was held in August 2001 with representatives of the major ESOs, the Repatriation Commission and DVA. This covered a wide range of strategic and policy issues.

Health research

The Repatriation Commission and the Department are engaged in a number of projects investigating the health of personnel who have had particular service or experiences, with a view to developing appropriate policies regarding treatment and compensation. These projects range from the development of nominal rolls for conflicts or deployments through to full-scale studies of the health of groups in the veteran or service population. Significant studies are also being undertaken jointly with the Department of Defence under the Defence and DVA Links Project (see Outcome 5, page 119).

BCOF veterans

During the year, DVA commissioned a report from the Australian Radiation Protection and Nuclear Safety Agency (ARPANSA) on the atomic radiation doses received by Australian British Commonwealth Occupation Force veterans who served in the Hiroshima area from 1946. This was in response to amendments made by the Repatriation Medical Authority to SoPs containing an atomic radiation factor. The RMA is introducing new factors specifying radiation doses, rather than being in a certain location at a given time as was previously the case.

The revised SoP factors made it necessary for the Department to develop a way of assessing atomic radiation doses in individual cases. The report from ARPANSA has provided a scientific basis for making that assessment. Discussions with ESO representatives on this subject are continuing.

Korean War veterans

Work continued throughout 2001–02 on the Korean War Veterans Mortality Study. Data-matching of the Korean War Veterans Nominal Roll against the DVA database, the National Death Index database and the Australian Electoral Roll resulted in a successful match rate of 88 per cent. Manual examination of some 2000 unmatched records is now being carried out to further increase the accuracy of the study.

In May 2001, following a request from the study’s consultative forum, the Minister for Veterans’ Affairs announced that a separate study would be conducted into the incidence of cancer in Korean War veterans. The study involves data-matching the nominal roll against the National Cancer Clearing House, which contains details from the cancer registries of all States and Territories.

Reports from both studies are expected at the end of 2002.

In 2002, the Minister announced that a pilot health survey of Korean War veterans would be undertaken in the latter half of the year. The pilot program will involve about 100 veterans and a similar number of people from the general community who were of adult age during the Korean War period, to evaluate the feasibility of surveying all surviving Korean War veterans.

Vietnam veterans

In May 2001, a repeat mortality study of Vietnam veterans was announced, to follow up the results of the Vietnam Veterans Mortality Study released in 1997. The mortality study is to be conducted in consultation with the veteran community and to this end a consultative forum has been established which includes representation from the office of the Minister for Veterans’ Affairs, the Vietnam Veterans Association of Australia, the Vietnam Veterans Federation, the Returned and Services League of Australia and the Australian Veterans and Defence Service Council.

A Scientific Advisory Committee is to be established to oversight the study, which will commence in early 2002–03.

Gulf War veterans

Work began in 2001 to conduct the Gulf War Veterans Health Study, following completion of a nominal roll in April 2000. The study is part of a joint strategy with the Department of Defence to better manage the health of Australian Defence Force members deployed overseas. It involves medical examinations and surveys of veterans listed on the nominal roll to develop a detailed picture of their health. This will be compared to the health of a group of Australian Defence Force members of similar age and gender profiles, who did not serve in the Persian Gulf.

More than 80 per cent of Gulf War veterans responded to an invitation to participate in the study. The Scientific Advisory Committee found that sufficient Gulf War and comparison group participants had been recruited to ensure the validity of the study, provided that bias in recruitment can be adequately addressed. Medical examinations of the participants were completed late in 2001–02, enabling the analysis of results by Monash University, with results expected by November 2002.

F-111 Deseal/Reseal Health Study

An RAAF Board of Inquiry into F-111 fuel tank deseal/reseal and spray seal programs presented its report to the Chief of Air Force in late 2000–01. Concurrent with the work of the Board, DVA was commissioned by the Department of Defence to undertake a health study of personnel involved in the deseal/reseal programs, to determine the range and extent of possible health effects.

A database of those individuals exposed to chemicals as part of their employment on F-111 fuel tank deseal/reseal programs has been developed. This forms the basis for the health study. A Scientific Advisory Committee to oversee the scientific aspects of the study and a Consultative Forum set up to facilitate communication between the maintenance personnel, the committee, DVA, the RAAF and the Department of Defence, met on a number of occasions throughout the year.

The study is being undertaken by the University of Newcastle Research Arm, an independent scientific organisation. A preliminary qualitative study of 18 personnel involved in the F-111deseal/reseal programs has been completed and invitations to participate in the main health study will be issued in the latter part of 2002. Due to the nature of the health study, any findings are unlikely to be finalised until the following year.

Atomic test participants

DVA is undertaking a cancer and mortality study of Australian participants in the British atomic testing program, on behalf of the Commonwealth. A preliminary nominal roll of participants in the atomic tests at Monte Bello, Maralinga and Emu Field during the 1950s and 1960s was completed in June 2001 and is available on the DVA website at www.dva.gov.au. Since publication of the roll, a good deal of effort has been put into refining the information in response to input from the public. There are approximately 15 000 names on the roll at present.

The Scientific Advisory Committee for the study met on a number of occasions during the year to consider both the scientific protocol for the conduct of the study and the methodology to be adopted. A consultative forum, consisting of representatives of major ex-service organisations, including associations of atomic test participants, and relevant federal agencies, has been briefed progressively on the conduct of the study and related issues.

The study is due for completion in late 2003.

Back to section menu

Previous | Next

Top of Page