Fraudulent activities targeting veterans have prompted the Australian government to announce a $203 million initiative aimed at curbing exploitation within the veterans’ compensation scheme. Over the past three years, efforts to clear a backlog of veteran compensation claims have inadvertently attracted unscrupulous actors, leading to increased costs and harm to former service members.
The federal government is responding with a comprehensive plan to eliminate “bad actors” from the system. This includes funding for free advocacy services to assist veterans in navigating the complex compensation landscape. Veterans Affairs Minister Matt Keogh emphasized the need for stricter auditing to prevent deceitful practices by medical professionals and advocates.
Addressing Fraudulent Practices
Minister Keogh highlighted the issue of fraudulent medical reports and unnecessary tests being submitted by some doctors, who are exploiting veterans and the Department of Veterans Affairs (DVA). He stated,
“They’re saying they are providing a service to someone and not providing it, or they are billing for services that are different to the types of service that are actually provided, or they are doubling up on claims.”
Recent cases, such as an occupational therapy business in Perth allegedly submitting over $7 million in fraudulent claims, underscore the severity of the problem. Similar fraudulent behaviors were previously identified in the National Disability Insurance Scheme (NDIS), prompting reforms in 2024 that improved fraud detection and tightened approved activities.
Impact of NDIS Reforms
The reforms in the NDIS have been instrumental in reducing fraudulent activities, with the Australian Criminal Intelligence Commission noting the “footprints” of these fraudsters in other government payment programs. Minister Keogh acknowledged that while most medical professionals and advocates are reputable, some are exploiting multiple government systems.
He asserted,
“If additional funding to speed up veteran claims has attracted fraudsters, then the government would respond. That’s why we’re stepping up our integrity measures to remove them from the system.”
Reforming Advocacy Services
The minister is also considering reforms to tackle profiteering advocacy services that charge veterans exorbitant fees. A recent inquiry revealed that some advocates are taking as much as 29% of veterans’ compensation as commission, a practice that has drawn criticism from traditional advocacy groups like the Returned Services League (RSL).
Historically, veteran advocacy was a free service provided by organizations such as the RSL to help veterans navigate the complex payment system. However, the influx of government funds into the compensation scheme has led to the emergence of profit-driven advocacy services, which remain largely unregulated compared to tax or migration agents.
Future Steps and Implications
The number of veterans’ claims has surged to over 100,000 annually, with commission-based providers now accounting for one in five claims. The complexity of claims has also increased, partly due to exaggerated submissions by advocates aiming to maximize profits. The RSL has called for a ban on fee-for-service advocates to protect veterans from exploitation.
Minister Keogh plans to consult on potential reforms to safeguard veterans from predatory practices. He stated,
“If there are bad actors out there, we want them out, and we will throw the book at them if we catch them defrauding this system, which is hurting veterans.”
The government’s crackdown represents a significant step towards ensuring the integrity of the veterans’ compensation scheme and protecting those who have served the nation. As consultations proceed, the focus will remain on implementing measures that prevent exploitation while facilitating timely and fair compensation for veterans.
