House debates

Tuesday, 30 November 2021

Bills

Veterans' Affairs Legislation Amendment (Exempting Disability Payments from Income Testing and Other Measures) Bill 2021; Second Reading

1:06 pm

Photo of Michael McCormackMichael McCormack (Riverina, National Party) Share this | Hansard source

At the outset, I acknowledge that the member for Herbert is in the chamber. I recognise his fine service in uniform and, indeed, his ongoing contribution to veterans' affairs and to his community at large since he resumed life as a civilian. I also acknowledge that today in Brisbane the Royal Commission into Defence and Veteran Suicide continues and that senior counsel assisting, Kevin Connor SC, has said inquiry hearings will be held in regional centres such as Townsville, so proudly represented by the member for Herbert, as well as Wagga Wagga, my hometown, a city with tri-service representation—the Royal Australian Air Force at Forest Hill, the Royal Australian Navy at the RAAF base, and Kapooka, the home of the soldier, from which a long line of khaki stretching back to Gallipoli, and even before that, has marched out. Indeed, just the other day, Governor-General David Hurley was the reviewing officer at the latest march-out, where 60 or so recruits joined the 350,000 before them who now and in the past have proudly worn the khaki uniform. We say thanks to them. Thanks to you for your service. Thanks to you for your sacrifice. May that long continue and endure.

I listened carefully to the member for Gorton and I heard what he had to say about the total and permanently incapacitated payments. I would say to any veterans listening: don't just listen to what Labor says; observe carefully what Labor does. I well recall when I first served in this place what Labor did in the Defence space and what Labor didn't do in the veteran space. I'm proud to be part of a government which has provided record investment to Defence and very much listened to the needs and wants of our veteran community. As a former Minister for Veterans' Affairs, I'm very much in tune with what veterans have to say. I know that many veterans not only do their recruit training through Wagga Wagga and end up being posted to Wagga Wagga; they also return to Wagga Wagga and the Riverina once their military careers are over. In terms of requiring help, if any veteran is seeking to reach out to say that they are not okay—and it is alright to say that you're not okay whether you're in uniform or part of the wider civilian network here in Australia—they can call Open Arms, a 24-hour line, on 1800011046 or the Department of Defence All-hours Support Line on 1800628036.

I was pleased when I was the veterans' affairs minister that the Defence-centric or veteran-centric reform legislation was put to the parliament. That piece of legislation was very important for the current and future needs of those who wear and have worn our uniforms. Indeed, at 30 June 2019, the Australian Defence Force comprised about 58,000 permanent members—47,000 men and 11,000 women—and 27,500 active reserve personnel across the RAN, the Army and the RAAF. At June 2019 there were more than 290,000 DVA beneficiaries in receipt of pensions, allowances and treatment or pharmaceuticals. This included about 184,000 veterans and 110,000 dependants.

The Veterans' Affairs Legislation Amendment (Exempting Disability Payments from Income Testing and Other Measures) Bill 2021 is an important piece of legislation. This bill assists in ensuring some of our most vulnerable veterans will be better assisted, better supported and helped at the point when they require that assistance. We are giving them exactly what they need. It delivers on the government's budget commitments announced in October 2020 and May 2021.

I noted that the member for Gorton talked about the delayed budget and the favoured consultants, dripping with sarcasm. This isn't about having a crack at the government. This should be about doing what we need to do in a bipartisan way for our veterans. I'm pleased that Labor will not stand in the way of this bill passing the House of Representatives.

This bill implements the recommendations of the review conducted by esteemed public servant David Tune into the adequacy of the TPI payments. This bill includes provisions to exempt disability pensioners' income under the Social Security Act. These alterations simplify the support system for more than 14,000 veterans and dependants and negate the need for the Defence Force income support supplement.

There are provisions to remove a means test imposed on rent assistance for certain veterans and dependants. About 6,900 veterans and dependants will now become eligible for rent assistance or an increased rate of rent assistance. This ensures assistance even under the provisions of acts that are passed and changes that are ultimately made as time goes on. Even if a veteran drops, say, $100 that they can't make up on, that, for many veterans, means the difference between having a reasonable life and being on the breadline. It truly does. That is why we know that the veterans' affairs legislation amendment is so critical and so time-sensitive as well.

The bill also includes provisions to clarify the existing disability pension. It's a compensation payment but it should not be confused with other income support measures such as Centrelink's disability support pension. It also provides for the simplification of indexation arrangements for the disability pension, which is presently an overly complicated bureaucratic process. If there is one thing I know and that veterans certainly know it's that they don't want a complicated, intricate, bureaucratic process. They want to know that they are going to be supported without having to go through all sorts of rigmarole and hardship just to get the payments that they so desperately want, need, expect and, most importantly, deserve—because it's their money. They have been sent, by us, by the government, by the Commonwealth, to do a job. They have done that job proudly. They have done that job diligently. They have sacrificed so much. That's why it's so important that this pass the House.

This bill also includes a measure to implement a two-year trial of non-liability rehabilitation. This will enable veterans participating in the trial to access DVA rehabilitation services in a more prompt manner, without the need to make a claim for compensation or to have to wait for the determination of liability.

The government has accepted all of the recommendations of the review undertaken by Mr Tune. If passed, this bill will give effect to changes to meet four of these recommendations. The Defence Force Income Support Allowance will be abolished; and the adjusted disability pension, including the TPI payment and permanent impairment payment, under the MRCA, will be defined as exempt income under the social security law. That is schedule 1. In schedule 2, in addition, the disability income rent test should be abolished. This would simplify payment arrangements and allow TPI veterans who are renting to receive Commonwealth rent assistance.

The bill also gives effect to changes that include the indexation of the TPI payment being changed to index the whole payment all at once rather than in two components. That's schedule 4. This could also apply to the intermediate and extreme disablement adjustment rates of disability pensions. The split indexation mechanism was brought in in 2004 as a result of the different indexation mechanisms in place for the general rate and above general rate components, but it is now redundant as the indexation mechanisms were all brought into line back in 2008.

The bill also changes the terminology and language in legislation guidelines and policy documents. This will mean that the TPI pension will no longer be referred to as a pension but as a payment. Some stakeholders are concerned that the term 'pension' in schedule 3 implies welfare instead of compensation. It's not welfare; it is indeed compensation.

The feedback received by the government when these measures were introduced and announced in the October 2020 budget was that the measures were supported. The proposed legislation before the House today is critical because veterans know how important this is. They know how important every dollar in their account is—it's deserved and needed. We've listened to that feedback, of course. We've brought the implementation forward to 1 January 2022 as part of this year's budget which was handed down in May.

Veterans will not need to apply for rent assistance. DVA will contact those income support recipients who may be eligible, and we will seek up-to-date rent information from them. Once received, this information will be used to undertake the assessment process of rent assistance, with payments commencing on the first pay day following New Year's Day next year.

Finally, on the Senate inquiry recommendation that the government consider increasing the TPI payment, I appreciate what the member for Gorton says. We are constantly in a process of consultation with veterans. We will continue to be the side of politics that listens to veterans and acts on their concerns. We understand full well the service and sacrifice that they have made, both at home and abroad. We will continue to take on board those discussions and that feedback, and that is why we are bringing forward this particular legislation and those particular payments as part of this legislation. We know that it is needed, we know that it is expected and we know that it is deserved.

To veterans: please know that help is always at hand, whether in mental health support or in financial support, because you deserve it and because you have sacrificed so much for and on behalf of our nation.

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