Zed Seselja (ACT, Liberal Party, Assistant Minister for Finance, Charities and Electoral Matters) | Link to this | Hansard source

I move:

That these bills be now read a second time.

I seek leave to have the second reading speeches incorporated in Hansard.

Leave granted.

The speeches read as follows—

MILITARY REHABILITATION AND COMPENSATION AMENDMENT (SINGLE TREATMENT PATHWAY) BILL 2019

I am pleased to introduce the Military Rehabilitation and Compensation Amendment (Single Treatment Pathway) Bill 2019. The Bill is designed to provide veterans with a more timely, convenient and user-friendly method of accessing their medical treatment.

As the Minister for Veterans' Affairs, I recognise the Australian community has a clear expectation that veterans will be well looked after, and of course, as a Government we are absolutely committed to putting veterans first and putting veterans' families first.

This Bill will simplify access to medical treatment for veterans without the need for claim forms or upfront costs via a Department of Veterans' Affairs Health Card.

The amendments to the Military Rehabilitation and Compensation Act 2004 would remove and replace the dual treatment pathway model with a single treatment pathway model. The amendments would mean that all DVA clients would have access to health care via a DVA Health Card.

Since the introduction of DVA Health Cards, uptake in treatment among veterans has improved, indicating that, where they do not face any up-front costs, veterans are more likely to access treatment for service-related injury or disease.

DVA Health Cards provide veterans with an easier way to access treatment which is not compromised by their inability to afford treatment.

Once this Bill is passed, veterans will only need to present their DVA Health Card at the time of receiving medical treatment and payments will be made directly to health providers via the Medicare system. Around 4000 clients will no longer have to pay up front and then seek reimbursement from DVA. Importantly, this Bill retains discretionary power for the Military Rehabilitation and Compensation Commission to reimburse a person the cost of treatment or pay directly a health provider in special circumstances.

These amendments will mean better outcomes for veterans as they will have easier access to treatment as and when they need it.

I commend this Bill.

TREASURY LAWS AMENDMENT (PUTTING MEMBERS' INTERESTS FIRST) BILL 2019

This Bill amends the Superannuation Industry (Supervision) Act1993 and the Superannuation (Unclaimed Money and Lost Members) Act1999 to improve the provision of default insurance in superannuation.

Given the significance of superannuation to Australians' retirements, the Government wants to ensure that people's hard-earned savings are not unnecessarily eroded by inappropriate insurance arrangements.

This Bill will address the provision of insurance through superannuation.

This Bill requires that insurance be provided on an opt-in basis only for members with balances below $6,000 and any new members from 1 October 2019 who are under the age of 25.

The Government has delayed the start date of these elements by three months from the announced commencement of the Package to provide additional time for funds to take action and notify members prior to the changes taking affect from 1 October.

The Government recognises that insurance through superannuation has value for many Australians. While working on these elements there have been numerous examples provided of how people have benefitted from having insurance in times of need.

However, what is not always mentioned is the circumstances where people have had a significant proportion, and often their entire account balance eroded by insurance premiums.

The Government does not propose to prevent anyone from being able to obtain insurance coverage within superannuation. We are simply trying to ensure that the current settings meet the needs of members without inappropriately eroding their retirement savings.

Default insurance, required under Labor's MySuper reforms, can result in members paying for cover that goes beyond their needs, or paying for multiple policies upon which they cannot claim.

Insurance premiums can reduce low income earners' retirement balances by 10 per cent or more, compared to having no insurance, increasing with every additional set of policies held by an individual.

That is why, through this Bill, the Government will ensure that members who are at particular risk of account balance erosion will not have insurance provided as a default unless they have directed otherwise.

The Government recognises that many individuals already assess their insurance needs and make informed decisions to hold accounts with a certain level of insurance.

To ensure this measure does not disadvantage engaged members, the legislation allows for a member to elect that they want to maintain their insurance and they will not be subject to the changes in this Bill.

This Bill, will benefit young and low balance members and is in the best interest of all Australians.

The independent Productivity Commission in its final report on superannuation found that while insurance in super provides value for money for many members, it does not for all.

Particularly for young members or members with low incomes, the Productivity Commission found that insurance in super is poor value and does not meet their needs, meaning that premiums can result in undue erosion of retirement savings.

Full details of the measure are contained in the Explanatory Memorandum.

Debate adjourned.

Ordered that the bills be listed on the Notice Paper as separate orders of the day.