The Hon Alan Griffin MP  Minister for Veterans’ Affairs  Minister for Defence Personnel

VA025 	 Friday, 14 May 2010

GOVERNMENT DELIVERS RESPONSE TO CLARKE REVIEW OF VETERANS’  ENTITLEMENTS

The Australian Government has delivered on its election commitment to further consider the  recommendations of the 2003 Clarke Review of Veterans’ Entitlements that were not acted  upon by the previous Government.

In the recent Federal Budget, the Government announced a $36 million response to the Clarke  Review which resulted in thousands more Australians gaining access to benefits they otherwise  would not have received.

Mr Griffin said 45 recommendations were revisited and carefully examined.  Three have been  accepted and already acted upon, four have been accepted, four deferred for further  consideration, 22 referred to the review of Military Compensation Arrangements and 12  recommendations rejected.

Major recommendations accepted or exceeded

Ã¢ÂÂ¢	 The Government has accepted the Clarke recommendation that participation by  Australian Defence Force personnel in the British atomic tests be declared non-warlike  hazardous and the Veterans’ Entitlements Act (VEA) will be amended to give effect to the  recommendation (Funding: $24.2m).

Ã¢ÂÂ¢	 Certain submarine special operations service between 1978 and 1992 will be reclassified  as operational service and qualifying service, meaning veterans have improved access to  benefits. This exceeds Clarke’s recommendation that this service be deemed non-warlike  hazardous (Funding: $11.1m).

Other recommendations accepted and/or already acted on

Ã¢ÂÂ¢	 Changes to the domicile rules for British Commonwealth and Allied (BCAL) veterans.  This fixes as an administrative anomaly which prevented some BCAL veterans from  being considered as Australian veterans under the Veterans’ Entitlement Act.  Ã¢ÂÂ¢	 Changes to the eligibility to claim for War Widow/ers pension to ensure equal treatment

of those who enter de facto relationships with those who marry/remarry.  Ã¢ÂÂ¢	 Government response to the needs of carers.  Ã¢ÂÂ¢	 Addressing affordable housing and access to tertiary scholarships.  Ã¢ÂÂ¢	 Improved bereavement payments made to widows of veterans.

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Issues for further review within Government

Ã¢ÂÂ¢	 Classification of service by British Commonwealth Occupation Forces in Japan.  Ã¢ÂÂ¢	 Clearance of enemy wartime ordnance in Papua New Guinea and the Pacific Islands.  Ã¢ÂÂ¢	 Service related to improvised explosive device disposal.

Issues referred to the review of Military Compensation Arrangements

Twenty-two recommendations relate to a proposed restructure of the disability pension and  rehabilitation system. This restructure was generally opposed by the ex-service community at  the time the Clarke Review was originally considered. Very few submissions were received  relating to these recommendations.

These recommendations have been referred for consideration as part of the current review of  Military Compensation Arrangements. However, given the concerns held regarding the adoption  of Clarke’s overall approach, it is unlikely that such a wholesale change would be supported as  part of that review.

Recommendations not accepted

Following extensive analysis the Government has not accepted 12 of the original Clarke  recommendations. These are:

Ã¢ÂÂ¢	 Proposed changes to the ‘incurred danger’ test for certain veterans’ entitlements: the  Government cannot accept changes to such a fundamental standard.  Ã¢ÂÂ¢	 Extension of qualifying service benefits to certain British Commonwealth and Allied  veterans.  Ã¢ÂÂ¢	 Extension of the definition of operational service.  Ã¢ÂÂ¢	 Means testing of access to the DVA Gold Card in certain circumstances: the Government

considers the Gold Card should not be means tested as it is provided in recognition of a  person being placed in danger from an enemy.  Ã¢ÂÂ¢	 Allowing War Widows living overseas to claim income support supplement: this is not  supported as the Government believes it would create an anomaly in the social security

system between the Social Security Act and the VEA.

“We looked extremely carefully at all the revisited recommendations and I stand behind our  responses. What we have done is to provide access to benefits in a targeted and responsible  manner,” Mr Griffin said.

A full response to each of the 45 recommendations is at Attachment A.

Media inquiries: Minister Griffin’s Office 02 6277 7820.

The VVCS - Veterans and Veterans Families Counselling Service can be contacted 24 hours a day, seven days a  week on 1800 011 046.  To receive the Minister’s media releases automatically by email subscribe at minister.dva.gov.au/subscribe.htm

The Hon Alan Griffin MP Minister for Veterans’ Affairs



Minister for Defence Personnel



ATTACHMENT A

Government Response to the Revisitati on of the Clarke Review - May 2010

The following table lists the recommendations of the 2003 Clarke Review of the Veterans ’ Entitlements that were not accepted or  acted upon by the previous  Government (left hand side column) and the response of the curre nt Government to the revisita tion of those recommendations (rig ht hand column).

Clarke Recommendations not accepted or acted upon by previous Government Government Response of May 2010 to Revisitation

1B. That the ‘incurred danger’ element of the test  has been interpreted too narrowly, in that it Rejected . The repatriation system is based on levels of risk, with the highest  does not take sufficient account of a credible risk of harm. being an objective incurred danger test based on actual and real risk of danger

faced from hostile forces. As such it is not appropriate to accept this  recommendation.

2, 5 & 67B. The Veterans’ Entitlements Act 1986 (VEA) be amended to deem the following  service during World War II as qualifying service during the period of hostilities:

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Northern Australia  North of latitude 14.5 degrees south and islands and waters contiguous to this area,  including the Torres Strait Islands, for any period between 7 December 1941 and 7  September 1944 inclusive.

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Outside Australia  -any area other than the West Pacific area — 3 September 1939 to 5 May 1945;  -West Pacific area (except Papua and New Guinea and New Britain before 7 December

Rejected.  This service did not involve direct danger from the hostile forces of  the enemy. As such, it is inappropriate to reclassify this service where the  ‘incurred danger’ test has not been met. Qualifying service continues to apply  for service in the Northern Territory between 19 February 1942 and 12  November 1943 (the dates of the first and last air attacks), or on a single day  during a bombing raid. For those areas outside Australia, the Repatriation  Commission policy already deems service in these areas as qualifying service  and this policy continues to apply.

Parliament House Canberra ACT 2602 Te lephone 02 6277 7820  Facsimile 02 6273 4140

Clarke Recommendations not accepted or acted upon by previous Government Government Response of May 2010 to Revisitation

1941) —  3 September 1939 to 15 August 1945 — bounded by:  -in the west, longitude 90 degrees east;  -in the east, longitude 165 degrees east;  -in the south, latitude 10 degrees south,  including Papua and New Guinea; and  -in the north, by and including the eastern regions of the Asian continent;  -Papua and New Guinea, including New Britain — 7 December 1941 to 15 August  1945; and  -in an aircraft engaged in operations agains t hostile forces or in patrols or reconnaissance  over land occupied by hostile forces of the enemy in one of the areas above at the times  prescribed above.

7. Operational service should also include service immediately before or after that period of  service, as currently applies under s.6A of the VE A for veterans with service outside Australia  and s.6B of the VEA for Australian mari ners with service outside Australia.

Rejected . The Government does not agree that operational service should be  extended in this way.

15. Operational and qualifying service be extended for service on or after 16 September 1963  to and including 16 August 1964 for all defen ce personnel on the posted strength of units  located in the operational area of Malaysia.

Rejected.  The only hostilities faced by Australians from the Indonesia forces  before 17 August 1964 were in Borneo, where service is already covered  under the Veterans’ Entitlements Act 1986 (VEA).

31. Service on submarines during special operations be deemed non-warlike hazardous for the  purposes of the VEA.  Accepted.  Based on advice from the Department of Defence, for certain  submarine special operations between 1978 and 1992 where submariners and

others are eligible for the award of the Australian Service Medal with the  Submarine Special Operations Clasp, the Government will seek to amend the  VEA to extend operational and qualifying service. This goes further than the  Clarke Review, and grants Service Pensi on at age 60, Gold Card at age 70 and  disability pension with the reasonable hypothesis standard of proof.

34. The Department of Defence reviews the activities of defence service personnel who  located, cleared and disposed of enemy wartime ordnance in PNG and the Pacific Islands, with  a view to making a determination on such  activities as non-warlike hazardous service.

Deferred.  The Government notes that the Department of Defence is scheduled  to review this service and will await the outcome of that review.

35. Service by ADF improvised explosive device disposal (IEDD) personnel in IEDD incidents  be deemed non-warlike hazardous service under the VEA.  Deferred.  The Government notes that the Department of Defence is scheduled  to review this service and will await the outcome of that review.

Clarke Recommendations not accepted or acted upon by previous Government Government Response of May 2010 to Revisitation

43. Service with BCOF be declared warlike from 21 February 1946 to 30 June 1947.

68B. Should the Government accept recommendation 43, BCOF veterans prior to 1 July 1947  should be entitled to the Gold Card.

Deferred.  The Government proposes to defer its response to these  recommendations to allow further examination and discussion within the  Government and with the Defence Nature of Service review team.

45. Participation by Australian Defence Force personne l in the British atomic tests be declared  non-warlike hazardous and the legislation be amended to ensure that this declaration can have  effect in extending VEA coverage.

Accepted.  The Government proposes to accept Clarke’s recommendation to  provide former defence force personnel in the British nuclear tests (BNT) with  access to the VEA for compensation be nefits. This will provide access to  disability pension and health care bene fits for conditions accepted as caused  by their BNT service under the more gene rous standard of proof.  Widow/ers  of BNT defence force personnel will be come eligible for war widow/ers  pension and Gold Card for death accepted as related to BNT service.

54.  The VEA be amended so that those war widow s who enter into a marriage-like relationship  after a veteran’s death will be treated, in regard  to the right to claim war widow’s pension, in  the same way as those who marry or remarry after the veteran’s death.

Accepted.  The Government will seek to amend the VEA to reflect this change.

60.  The VEA be amended to enable a BCAL veteran to be able to establish a domicile of  choice in Australia before the age of 21 year s, with all other common law tests used in  determining domicile continuing to apply.

Accepted.  The VEA is to be amended to allow those to establish a domicile of  choice in Australia between the ages of 18 and 21, so long as all other  common law tests used in determining domicile are met.

61.  The VEA be amended to allow British a nd other Commonwealth veterans whose only  service was within their country of enlistment to be considered as having qualifying service if  they meet the same requirements that apply for service outside the country of enlistment.

Rejected.  The Government does not feel it is appropriate to accept this  measure as it would extend benefits to BCAL veterans that are not available to  some Australian veterans with similar service.

63.  The VEA should be amended to allow Br itish and other Commonw ealth veterans who  served in the operational area of Malaya and or  Singapore between 1 September 1957 and 31  July 1960 to be regarded as having rendered qua lifying service if their service was the same as  that of veterans of the Australian armed services in that operational area during that period.

Rejected.  The Government continues its position that it is appropriate for  BCAL veterans to meet the ‘incu rred danger’ test. As such, this  recommendation is not accepted.

Clarke Recommendations not accepted or acted upon by previous Government Government Response of May 2010 to Revisitation

64.  The VEA be amended to remove the camp aign medal requirement for BCAL mariners, Rejected.  The Government does not feel it is appropriate to accept this  with qualifying service being only subject to whether the mariner was detained by the enemy measure as it would extend benefits to BCAL veterans that are not available to  or incurred danger from hostile forces of the enemy during the period of hostilities in World some Australian veterans with similar service.  War II.

65.  If the government accepts the Committee’ s recommendation to accord warlike and Rejected.  Although the Government is continuing to consider its response to  qualifying service to veterans of the Austra lian armed services serving in Japan with BCOF recommendations 43 and 68B, it does not support the extension of qualifying  between 21 February 1946 and 30 June 1947, British and ot her Commonwealth veterans service to British Commonwealth and Allie d veterans who served in Japan at  serving with BCOF in Japan during that period a nd United States veterans performing a similar the same time as the BCOF.  peace enforcement role, also be regard ed as having rendered qualifying service.

70.  The VEA be amended so that there will be no further grants of the Gold Card to post-World War II veterans of the Australian armed services at age 70 on the basis of their having  rendered qualifying service, unless the veteran satisfies some measure of financial need.

Rejected.  The Gold Card should not be means tested, as it is provided in  recognition of a person being placed in danger from an enemy.

72.  The VEA should be amended to enable assistance with private health insurance to be Referred to Review of Military Compensation Arrangements.  As this  provided for the dependent children of veterans entitled to the special rate disability pension recommendation relates to the C larke’s proposed Disability Pension structure,  who transfer to the proposed new disability pens ion structure outlined in Chapter 30, or entitled this has been referred to the Review  of Military Compensation Arrangements  to the extreme disablement adjustment, thr ough the provision of a tax-free health care to consider in the context of the development of MRCA. along with other  allowance, indexed to the Consumer Price Inde x, if the family takes out private health recommendations relating to the Disability Pension rate structure and  insurance. rehabilitation.

73.  The Government should examine the needs of war widows and others caring for severely  disabled adult orphans of veterans  and the adequacy of existing support systems to meet those  needs.

Accepted and acted upon. A Parliamentary Inquiry examined the needs of  carers across Australia as part of a broader review, resulting in the Who  Cares…? Report , which the Government responded to on 29 October 2009,  and most of the recommendations were agreed in full or part .  In implementing  one of those recommendations, the war widow/ers pensions and income  support payments were increased as part of the Harmer Review in September  2009.  Pensions and benefits for war widow/ers and for severely disabled adult  children have increased significantly  since the Clarke review. The  Government’s proposed National Disability Strategy will also address the  issue of support for the disabled and their carers in the community more  broadly.

Clarke Recommendations not accepted or acted upon by previous Government Government Response of May 2010 to Revisitation

76.  The Government accept that the princi ples of disability compensation on which the Referred to the Review of Military Compensation Arrangements. The  Committee’s proposed disability compensation stru cture is based are sound and appropriate for Government is committed to reviewing the Military Rehabilitation and  Australia’s disabled veterans. Compensation Act 2004 (MRCA). This recommendation falls within the scope

of that review to consider in the c ontext of the development of MRCA, and  has been referred for further consideration.

77.  Following this acceptance, the Government a dopt and implement the proposed structure as Referred to the Review of Military Compensation Arrangements.  The  soon as practicable, given its beneficial nature for veterans and their families. Government is committed to reviewing the MRCA. This recommendation falls  within the scope of that review to consider in the context of the development  of MRCA, and has been referred for further consideration.

78.  The Government adopt the proposed transitional arrangements. Referred to the Review of Military Compensation Arrangements. The  Government is committed to reviewing the MRCA. This recommendation falls  within the scope of that review to consider in the context of the development  of MRCA, and has been referred for further consideration.

79.  As enhancements to the new structure, the Government consider how additional assistance  can be provided to veterans who experience diffi culties in maintaining housing equity and to  children of veterans who wish to  undertake tertiary education.

Accepted and acted upon. This recommendation was based on younger Special  Rate veterans and formed part of  Clarke’s proposed Disability Pension  restructure which this Government re jects. This recommendation has been  largely superseded by recent events . In relation to housing assistance,  individual circumstances that come to  the notice of the Department are  addressed through existing housing support services in the community.  Increased access to Defence Housing initiatives have lessened the burden on  serving and ex-serving members. The MRCA also allows for a choice of lump  sum of permanent impairment payments and income replacement in the form  of incapacity payments, which can provide  suitable assistance. More broadly,  this Government has been addressing ho using affordability and efficiency of  the housing market.  It has committed over $19 billion since being elected to  Government through a wide range of measures, many of which will assist  veterans with their housing needs.

In relation to assistance for veterans  with children undertaking tertiary  education, the Government’s recent intr oduction of scholarships to aid eligible  children under both the Veterans’ Child ren’s Education Scheme and MRCA  Education and Training Scheme in the form of Start-Up Scholarships and  Relocation Scholarships will go some way towards addressing the concerns  raised with the Clarke Review .

Clarke Recommendations not accepted or acted upon by previous Government Government Response of May 2010 to Revisitation

82.  An extended bereavement payment be made available to the widow of a veteran in receipt  of special rate disability pension at the time of  the veteran’s death payable, subject to the  veteran and partner having satisfied the means te st for payment of income support payments  immediately before the veteran’s death ha d income support pensions been payable.

Accepted and acted upon. Changes in 2005, subsequent to the Clarke review,  whereby widows now receive the bereavement payment equivalent to the  veteran’s actual rate of pension rather  than capped at 100% of General Rate,  has effectively superseded this reco mmendation. The bereavement payments  made available now are equivalent to or  exceed what would have been payable  under the Clarke’s proposal, and do not have the additional qualification of  Clarke’s recommendation that a veteran and partner had to receive income  support payments before the veterans’ death.

84.  War widows living overseas be able to claim the income support supplement. Rejected. This would create an anomaly in the social security system in that no  Australian living overseas is eligible to lodge a claim for income support  payments. This Government policy is cons istent across the Social Security Act  and the VEA. To enable one group to claim an income support pension while  resident overseas would create a precedent across both Acts for larger groups  under both Acts.

88.  All veterans in receipt of EDA now and in the future have access to a Goods and Services  Tax (GST) rebate on motor vehicles and parts.  Referred to the Review of Military Compensation Arrangements.  As this  recommendation was part of Clarke’s proposed Disability Pension rate

structure, this has been referred to the Review of Military Compensation  Arrangements to consider in the cont ext of the development of the MRCA..

89.  EDA veterans receive a private health insura nce subsidy if they have dependent children  and choose to take out private health insurance.  Referred to the Review of Military Compensation Arrangements.  As this  recommendation was part of Clarke’s  proposed Disability Pension rate

structure, this has been referred to the Review of Military Compensation  Arrangements to consider in the cont ext of the development of the MRCA..

Clarke Recommendations not accepted or acted upon by previous Government Government Response of May 2010 to Revisitation

90.  A veteran who is aged under 65 years at the date of introduction of the new structure and  who, after reaching that age, is assessed unde r the Guide to the Assessment of Rates of  Veterans’ Pensions as having 70 disability points and a lifestyle rating of six, not be granted  EDA but instead receive a benefit package including:

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disability pension at 100 per cent of the general rate;

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access to a GST rebate on motor vehicles and parts (See also recommendation 88);

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a fortnightly means tested home care allowance of $150 while living in his own home;

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a private health insurance subsidy if he h as dependent children and chooses to take out  private health insurance (See also recommendation 89); and  Ã¢ÂÂ¢   the Gold Card (for all conditions).

Referred to the Review of Military Compensation Arrangements. As this  recommendation was part of Clarke’s  proposed Disability Pension rate  structure, this has been referred to the Review of Military Compensation  Arrangements to consider in the cont ext of the development of the MRCA..

92.  The Government require of the veteran with a dual entitlement under the VEA and the Referred to the Review of Military Compensation Arrangements. The  Safety, Rehabilitation and Compensation Act 1988  (SRCA) a one-time election, which would Government is committed to reviewing the MRCA. This recommendation falls  restrict the veteran to receiving benefits under either the VEA or the SRCA, at that time or in within the scope of that review to consider in the context of the development  the future if he has not alread y made a claim under either Act. of MRCA, and has been referred for further consideration.

93. The major principles of repatriation rehabilitation should be:

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Veterans’ participation in rehabilitati on assessments and, where appropriate,  rehabilitation programs, is an integral, obligatory part of the disability compensation  provided under the repatriation system.

Referred to the Review of Military Compensation Arrangements. The  Government is committed to reviewing the MRCA. This recommendation falls  within the scope of that review to consider in the context of the development  of the MRCA, and has been referred for further consideration. Ã¢ÂÂ¢

DVA has a responsibility to provide suitab le and comprehensive rehabilitation to  veterans for their service-caused disabilities. Ã¢ÂÂ¢   The aim of rehabilitation is to restore vete rans to their optimal level of function  commensurate with their service-related disab ilities to provide them with better quality

of life, maximised vocational outcomes and reduced dependency on financial disability  compensation.

Clarke Recommendations not accepted or acted upon by previous Government Government Response of May 2010 to Revisitation

94 - 106 . These recommendations provided for the introduction of a rehabilitation program  under the Veterans’ Entitlements Act 1986.  Referred to the Review of Military Compensation Arrangements. The  Government is committed to reviewing the Military Rehabilitation and

Compensation Act 2004. These recommenda tions have been superseded by  the introduction of the Military, Rehabilitation and Compensation Act 2004  which has broad and comprehensive rehabilitation provisions.  However, as  these recommendations fall within the scope of that review they have been  referred for further consideration in th e context of the development of MRCA.

