Derek Robson - The Returned & Services League of Australia Limited
Returned & Services League of Australia
Comments to inform the development of the Aged Care
(Living Longer Living Better) Bill 2013
December 2012
The Returned & Services League of Australia (RSL) was established in 1916 and is the oldest, largest and most representative ex-service organisation in Australia. It is the leading national ex-service organisation with a firm focus on current serving and ex-service community welfare.
The League compliments the Government on the development of the Living Longer Living Better aged care reform package and recognises that all positive changes made to the aged care industry will benefit the ex-service community. We applaud the focus on veterans’ mental health and on caring for those with dementia.
Veterans were granted ‘special needs’ status in the Aged Care Act 1997 in 2001 in recognition of service to their country and the sacrifices and hardships they, and their spouses, endured. Achieving the ‘special needs’ status in 2001 demonstrated Australia’s debt of gratitude to the serving and ex-service community, and continues to honour and respect those who served in the defence of our nation.
The uniqueness of the veteran population is that it is ageing faster than the general population, with a high percentage of men over 85 years of age entitled to benefits through the Department of Veterans’ Affairs (DVA). According to DVA statistics, as at 28 September 2012 the DVA treatment population in Australia was 230,525; an additional 70,816 people (301,449 in total) receive some type of pension or pension supplement through DVA. Of the DVA treatment population, at least 55% are aged 80 and above.
As such, a large percentage of the veteran community are already in need of, or are receiving care through Commonwealth funded aged care services. However, there are additional entitlements bestowed on former Australian prisoners of war, Victoria Cross recipients, and those in receipt of a disability pension when they receive care in Commonwealth funded aged care services.
It is for the maintenance of these entitlements that we make the following comment.
Aged care means testing
The RSL is not averse to the changes under the Living Longer Living Better aged care reform package with regard to means testing to facilitate greater consistency and equity in co-contributions across home care and residential care. However, currently there are special income exemption provisions awarded to veterans, veteran partners and war widows/widowers in recognition of the special contributions and sacrifices made by them.
The League has noted that there is no mention of the current special income exemption provisions for veterans stated in any of the current documents relating to the Living Longer Living Better aged care reform package. While there is mention of consequential changes to the Veterans’ Entitlement Act in the discussion paper, there are no details as to what this relates to:
“Consequential changes may also be needed to:
The Social Security Act 1991 and Veterans’ Entitlement Act 1986 – there may be flow-on changes to the social security and veterans’ entitlements legislation as the result of changes to the calculation of subsidy and resident fees.” (Page 42 of 55)
The RSL wishes to draw your attention to the current income exemption provisions for those receiving disability pensions through DVA, and also the special entitlements for Victoria Cross (VC) recipients and prisoners of war (POWs).
Disability Pensions
While there are numerous levels of disability pension, according to DVA statistics, as at September 2012 there were 109,030 persons in receipt of a disability pension as a result of serving this country. While the majority of these persons are now in the 85+ age group, there are two further distinct groups coming through in the Korean and Vietnam veteran cohorts; 10,942 are in the 70 to 79 age bracket and 36,885 are in the 60 to 69 age bracket, these persons will be in need of aged care support services over the next 10 to 20 years. While these numbers appear less significant per percentage of the population than the previous World War I or World War II veteran cohorts, they are equally as deserving to be guaranteed DVA entitlements and veteran specific provisions. As their need for health, care and support services can be directly linked to serving this country, the government must uphold current income exemptions.
According to current DVA information, the following items are considered exempt income for the calculation of aged care fees:
· The DVA disability pension for veterans with qualifying service, partners of veterans with qualifying service, and war widows/widowers
· The DVA war widow’s/widower’s pension where the war widow/widower is also a veteran with qualifying service.
Prisoners of War
In relation to prisoners of war, DVA statistics show that as at 28 September 2012 there were 694 surviving prisoners of war. The vast majority were prisoners of war from World War II (417 were from Japanese prisoner of war camps and 267 were from European prisoner of war camps), however 10 of the survivors were prisoners from the Korean War. As a result of
their time in captivity, these men all have multiple and complex health issues; as such their health, care and support services must continue to be fully subsidised by the government for the remainder of their lives.
Victoria Cross Recipients
Likewise the entitlement to fully subsidised care and support services must continue to be bestowed on our Australian VC recipients for the term of their lives. While there are currently only four surviving Australian VC recipients, three of whom are young men, these men received the highest military recognition for valour in the face of the enemy, putting their mates’ lives ahead of their own, and thus should be paid the ongoing respect that this honour carries.
According to current DVA information, the current provisions for VC recipients and entitled former POWs are:
· DVA pays the basic daily fees in Commonwealth funded residential aged care or Commonwealth funded community care;
· Exemption from income tested fees; DVA will pay the income tested service fees for those with additional income in receipt of Commonwealth funded community care;
· For VC recipients and POWs in receipt of Commonwealth funded community care, they should not be asked to make any payments to service providers.
The RSL views these current exemptions and entitlements as non-negotiable and must be maintained.
· The RSL endorses the need for the DVA disability pension to remain exempt income for the purposes of calculating aged care fees.
· The RSL endorses the need for Victoria Cross recipients and former Australian Prisoners of War to remain exempt from income tested fees.
· The RSL endorses the need for DVA to pay the total amount of basic care fees in both residential aged care and Home Care for all Victoria Cross recipients and former Australian Prisoners of War.