Outcome 1–Compensation and Support

Eligible veterans, their war widows and widowers and dependants have access to appropriate compensation and income support in recognition of the effects of war service.

Outcome 1 is achieved through four outputs:

1.1 Income Support
1.2 Compensation
1.3 Veterans' Review Board
1.4 Housing

The Veterans' Review Board is responsible for its
own annual report, which appears as a separate publication.

Description

Repatriation benefits to compensate veterans and their dependants for war-caused disability or death were introduced during World War I. In 1936, the system was extended by the introduction of the service pension, an income support measure. The service pension was introduced to recognise that the intangible effects of service in operations against the enemy could result in loss of earning power and premature ageing.

Compensation and income support remain the basis of the Australian repatriation system. Traditionally, VEA benefits are only extended to those with war or peacekeeping service, although normal peacetime service was covered for the period 1972—1994. While repatriation benefits are normally only extended to Australian veterans, service pension has been extended to eligible veterans of Commonwealth and allied countries and to Australian, Commonwealth and allied merchant mariners.

DVA works with the veteran community
to ensure that information about repatriation entitlements and benefits is available and that veterans and their dependants are supported in the claims process. The Department continues to work to improve the efficiency and fairness of the claims and review processes and to ensure that entitlements and benefits are delivered as accurately, efficiently and quickly as possible.

Outcome summary—2002–03 in review

During 2002–03, the Department continued to develop new and more efficient strategies to ensure that eligible veterans, their widows/widowers and dependants have appropriate and speedy access to compensation and income support. Business processes were reviewed, including the income support claims process, forms and electronic document management (EDM) methods. Support for ex-service organisations continued under the Training and Information Program (TIP) and Building Excellence in Support and Training (BEST) program.

Business priorities as outlined in the DVA 2002–03 Corporate Plan

Supporting the Review of Veterans' Entitlements

The work of the Clarke Review of Veterans' Entitlements has been completed and the Government is considering the Review committee's recommendations.

Developing the new Military Rehabilitation and Compensation Scheme

The Department, in conjunction with the Department of Defence, has developed draft legislation for a new Military Rehabilitation and Compensation Scheme. Consultations on the draft legislation with the Defence and veteran communities began in June 2003.

Basing decisions on best evidence obtained at the earliest opportunity

Training is continuing throughout the Department to help staff develop decision-making skills (Quality Decisions Every Time). The TIP and BEST programs continue to train and resource ex-service practitioners and organisations involved in helping veterans and their dependants to make claims and pursue reviews.

Undertaking health research studies

The Department completed the Gulf War Veterans' Health Study during the year and is undertaking a number of health and mortality studies, including the Study of Health Outcomes in Aircraft Maintenance Personnel (SHOAMP), the Korean War Veterans Mortality Study, the Nuclear Tests Participants Cancer Incidence and Mortality Study, the Third Vietnam Veterans' Mortality Study and the Cancer Incidence in Vietnam Veterans Study.

Improving our written and oral advice

Reviews of several standard departmental letters (including overpayment advice letters) were initiated.

Supporting ex-service organisations and their advocates

The TIP and BEST programs continue to provide high-quality training and enhanced resourcing to ex-service practitioners and organisations.

Improving departmental participation in external review processes

The Department's Administrative Review Adviser regularly meets with the Administrative Appeals Tribunal (AAT) Registrar in each State to discuss outstanding issues concerning the management of DVA matters before the Tribunal. These conferences have ensured that DVA case-management remains efficient and ahead of best-practice targets.

Feedback on case management improvements to senior DVA management ensures that time efficiency practices are maintained and shared between State offices.

Simplifying business processes and improving quality assurance

A project was undertaken during the year to review all income support claim and review forms. The review resulted in improved language and a more logical layout, confirmed by testing with the veteran community. Phase four of the Quality Assurance Sampling Assessment and Reporting System (QUASARS) was implemented during the year.

Enhancing our information technology and support systems

Several IT projects have been progressed during the year including the Electronic Document Management (EDM) project and Departmental Management Information System (DMIS), which will provide online access to a wide range of information for Compensation managers and staff.

Identifying further opportunities for Defence Links projects

The Defence and DVA Links Project continues to play an important part in moving towards greater integration with the Defence portfolio. For example, a joint Defence, DVA and Australian Centre for Posttraumatic Mental Health workshop was held in March 2003 and identified strategies to progress mental health issues in the Australian Defence Force (ADF).

Progressing DVA's role in managing ex-service records

During the year, Defence and DVA progressed a project to transfer the management of ex-service records from Defence to DVA. The project is expected to be completed in the latter half of 2003.

Major projects and initiatives for 2002–03

National Training Strategy

The National Training Strategy aims to coordinate a national approach to the design, development and delivery of training in the compensation and support business areas.

This major initiative saw more than 600 staff participate in a range of nationally coordinated training programs during 2002–03, including the following:

• Training in Residential Aged Care for Income Support—a two-module program to improve awareness and knowledge of residential aged care funding issues affecting veterans and their families. The course was delivered in National office and all State offices to more than 350 staff.

• Understanding Financial Statements—designed to help staff interpret tax returns and complex financial arrangements. This course was attended by 118 staff members.

• Quality Decisions Every Time—an abridged one-day version of the original four-module program designed to improve decision-making skills, delivered in WA and SA State Offices, with 43 staff attending.

• Clearances—a joint DVA and Centrelink program designed to provide an overview of procedures for processing clearances between the two agencies. Delivered jointly to Centrelink and DVA staff, using the live broadcast technology of the Centrelink Education Network, to multiple sites across Australia, with 122 DVA staff taking part.

Participant feedback from all courses was consistently positive, with satisfaction ratings ranging from 92 to 98 per cent.

QUASARS

Phase four of the Compensation and Support Division's Quality Assurance Sampling Assessment and Reporting System was implemented in July 2002. This supported the recording and reporting of initiatives such as staff accreditation and quality assurance exercises.

A further module was implemented in October 2002 to support the specific quality assurance activity of the Disability Compensation Branch's Decision Support Unit.

In June 2003, a new module was released, to enable the Department's F-111 Deseal/Reseal project team to undertake quality assurance checks of their payments.

A number of enhancements to QUASARS were implemented during the year. A business user group was formed to ensure that enhancements are agreed and given appropriate priority. A QUASARS training package is being developed and training is expected to be delivered in the first half of 2003–04.

Electronic Document Management Project

The Electronic Document Management project commenced in July 2002 following a number of feasibility trials involving the application of EDM methods to some compensation business processes. During the year, the project progressed the application of EDM to priority business processes that were identified during the trials as providing the greatest potential to improve efficiency and quality of service delivery. The priorities are:

• pensioner initiated reviews, including the cessation of production of payment authority documentation;

• gradual introduction of electronic client files and documents (the e-file) for various business processes; and

• electronic section 137 reports.

The project is also investigating the feasibility of:

• the use of Workflow software to support electronic business processes; and

• direct data entry to processing systems from scanned images of application forms as well as use of electronic forms.

Work completed during the year included:

• detailed analysis of current business processes;

• redesigning processes to reduce dependence on paper based information;

• identification of IT system enhancements and new IT infrastructure that will be required to support EDM initiatives;

• a considerable level of external research; and

• the development of a prototype of a client contact facility, which is a major IT system requirement for the project.

The EDM Project Team is preparing business cases to outline the overall costs and benefits of EDM and to gain approval to progress the project in 2003–04.

DMIS—Compensation Data Mart

Significant work was undertaken during 2002–03 to apply the Departmental Management Information System to compensation and support management information needs, including:

• consultation with business areas to ascertain data reporting requirements;

• data investigation (to ensure data availability, completeness, consistency and format);

• definition of system requirements; and

• development of working prototypes to test understanding of business requirements.

A number of prototypes were developed and presented to stakeholders (including State office income support and disability compensation managers). One of the prototypes is being developed with the aim of having the new reporting system operational early in 2003–04 with training planned to run concurrently with development in order to ensure a seamless implementation.

Social justice & equity issues

Indexation of the war widow's income support supplement

The indexation of the ceiling rate of the income support supplement (ISS) and service pensions paid to eligible war widows/widowers was implemented from 20 September 2002.

The ceiling rate is now indexed twice yearly in March and September by the same percentage as the service pension. The most recent increase was on 20 March 2003 when the rate increased to $130.60 per fortnight.

Around 86 450 war widows/widowers receive the ISS payment, with some 83 300 receiving the ceiling rate. The remaining 3 150 war widows/widowers are either receiving less than the ceiling rate due to the level of their income and assets or are receiving higher than the ceiling rate. Those receiving higher than the ceiling rate are the group who were receiving the war widow's/widower's pension and an income support pension prior to the 1 November 1986 introduction of ceiling rate. This group will remain at the higher rate until the indexed ceiling rate is equal to their rate. At this point, they will begin to benefit from the twice-yearly indexation.

The Department of Family and Community Services identified 2 395 war widows/widowers receiving a frozen rate social security age pension through Centrelink. Approximately 1 000 war widows/widowers have transferred from Centrelink to DVA since the announcement of this initiative and are now receiving the ISS.

Table 9: outcome 1 resources summary

	Budget 2002–03 $'000	Additional Estimates 2002–03 $'000	Actual Expenses 2002–03 $'000	Variation $000	Budget 2003–04 $'000
Administered Expenses (including third party outputs) Total Administered Expenses	5 361 318	5 463 369	5 495 026	31 657	5 654 453
Price of departmental outputs Output 1.1—(Deliver a means tested income support pension and allowances to veterans and their dependants)	35 531	35 563	35 181	-382	36 390
Output 1.2—(Deliver compensation pensions, allowances and special purpose assistance to eligible veterans and war widows/widowers)	42 674	42 715	44 194	1 479	43 247
Output 1.3—(Independent merits review by Veterans' Review Board of certain primary decisions made by delegates of the Repatriation Commission on claims for pension)	8 635	8 642	8 317	-325	8 778
Output 1.4—(Provide financial assistance through the Defence Service Homes Loans scheme)	2 439	2 441	1 767	-674	2 473
Attribution of Output Group 6	19 904	19 799	18 764	-1 035	18 396
Total Price of Outputs	109 183	109 160	108 223	-937	109 284
Revenue from Government (Appropriation) for departmental outputs	107 541	107 481	105 930	-1 551	107 620
Revenue from other sources	1 642	1 679	2 293	614	1 664
Total price of outputs	109 183	109 160	108 223	-937	109 284
TOTAL FOR OUTCOME 1	5 470 500	5 572 529	5 603 249	30 720	5 763 737

(Total Price of Outputs and Administered Expenses)

	Budget 2002–03	Additional Estimates 2002–03	Actual 2002–03	Variation	Budget 2003–04
Average staffing level	930	953	957	4	949

 

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