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DEPARTMENT OF VETERANS’ AFFAIRS
Purpose 1: Compensation and Support 
Maintain and enhance the quality of life of clients by improving their financial wellbeing 

and self -sufficiency.
Purpose 1 is about the way we assist veterans and their families to access payments and services. 
The success of our work under Purpose 1 is measured by our achievements in two categories: 
timeliness and quality. Our timeliness and quality targets are set out in our Portfolio Budget Statements 
and Corporate Plan (see Table 1 below).
Performance criteria and results
Table 1: Purpose 1 performance criteria and results

2017–18 
2018–19 
Actual 
Actual 
No
Performance criterion
Target
result
result Achieved
Program 1.1: Deliver income support and allowances
& PBS p 34, CP p 26
ü
1.1.1
Measurement: The number of days within 
Claims: 30 


which 50% of cases will be processed (days)
PIRs: 10
7
9
ü
ü 
1.1.2
Quality: Correctness rate
Claims: >95% 
98.1% 
98.24% 
PIRs: >95%
98.0%
96.99%
ü
Program 1.2: Deliver disability support
& PBS p 35, CP p 27
1.2.1
Measurement: The number of days within 
which 50% of claims will be finalised (days)
100
54 (63)1
108
O
1.2.2
Quality: Correctness rate
>95%
89.4%
93.6%
O
Program 1.3: Deliver assistance to Defence widow/ers and dependants
& PBS p 36, CP p 27
1.3.1
Measurement: The number of days within 
which 50% of claims will be finalised (days)
30
19 (21)1
27
ü
1.3.2
Quality: Correctness rate
>95%
89.2%
92.0%
O
Program 1.4: Deliver other compensation
& PBS p 37, CP p 27
Funeral benefits
1.4.1
Measurement: The number of days within 
which 50% of claims will be processed (days)
10
1
1
ü
1.4.2
Quality: Correctness rate
>95%
100%
96.0%
ü
Defence home loans
1.4.3
Measurement: The number of days within 
which 50% of claims will be finalised (days)
18
4
5
ü
1.4.4
Quality: Correctness rate
>95%
100%
100%
ü
Program 1.5: Deliver the children’s education scheme
& PBS p 38, CP p 28
1.5.1
Measurement: The number of days within 
which 50% of claims will be finalised (days)
28
10 (10)1
13
ü
1.5.2
Quality: Correctness rate
>95%
100%
100%
ü
ANNUAL REPORT 2018–19  ANNUAL PERFORMANCE STATEMENTS
65

DEPARTMENT OF VETERANS’ AFFAIRS
2017–18 
2018–19 
Actual 
Actual 
No
Performance criterion
Target
result
result Achieved
Quality (Client satisfaction): Percentage of 
responses to the annual Education Schemes 
1.5.3
Satisfaction Survey indicating that clients 
>75%
82.6%
85.1%
ü
thought the support provided helped the 
student reach their academic potential
Quality (Achieving the schemes’ outcomes): 
1.5.4
Percentage of the education schemes’ clients 
progressing through each level of their 
>85%
90.1%
95.0%
ü
education or career training
Program 1.6: Deliver income support and compensation under MRCA and DRCA                 & PBS p 39, CP p 28
Measurement: The number of days within 
which 50% of claims determined under DRCA 
will be finalised (days)
 
 
 
 
1.6.1
 
 
 
 
– DRCA liability claims 
100 
77 (94)1 
130 

– DRCA permanent impairment claims 
100 
71 (73)1 
79 
ü 
– DRCA incapacity claims
50
36 (38)1
42
ü
Quality: Correctness rate of DRCA claims
1.6.2
– DRCA liability claims 
>95% 
93.9% 
94.3% 

– DRCA permanent impairment claims 
>95% 
95.9% 
95.2% 
ü 
– DRCA incapacity claims
>95%
91.2%
95.1%
ü
Measurement: The number of days within 
which 50% of claims determined under MRCA 
will be finalised (days)
 
 
 
 
1.6.3
 
 
 
 
– MRCA liability claims 
100 
72 (85)1 
63 
ü 
– MRCA permanent impairment claims 
100 
78 (91)1 
83 
ü 
– MRCA incapacity claims
50
34 (36)1
42
ü
Quality: Correctness rate of MRCA claims
1.6.4
– MRCA liability claims 
>95% 
92.7% 
93.0% 

– MRCA permanent impairment claims 
>95% 
90.4% 
87.5% 

– MRCA incapacity claims
>95%
92.0%
91.1%
O
ü Achieved        O Not achieved        & Performance criteria source: PBS = DVA Portfolio Budget Statements 2018–19
CP = Corporate Plan 2018–2022; DRCA = Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988
MRCA = Military Rehabilitation and Compensation Act 2004; PIR = pensioner-initiated review
1 2017–18 Time Taken to Process measures results based on the 2018–19 calculation methodology.
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DEPARTMENT OF VETERANS’ AFFAIRS
Change in the calculation methodology for timeliness measures
In 2018–19 we changed the calculation methodology for timeliness measures.
In previous years we measured the median time taken to process claims using number of claims 
finalised—this included claims that had been determined as well as those that had been merged 
or withdrawn.
In 2018–19 we made changes to DVA’s digital platform so that, when multiple claims are lodged by a 
client on the same day, they are bundled into one claim to streamline the investigation and finalisation 
of the claim. As a result of this bundling process, a significant number of claims appear to have been 
withdrawn, when in fact they have been bundled with other claims. This potentially affects the accuracy 
of our reporting of timeliness.
Therefore, the calculation methodology for median time taken to process compensation claims is now 
based on determined claims only and does not include withdrawn claims.
Performance criterion categories and further information
Table 2: Purpose 1 performance criterion categories and further information

Performance 
criterion category
Performance criterion No
Further information in the annual report
Timeliness
1.1.1, 1.2.1, 1.3.1, 1.4.1, 1.4.3, 1.5.1, 
Performance: Compensation and support
1.6.1, 1.6.3
Appendix C: Claims, services and liability 
provision statistics 
Quality
1.1.2, 1.2.2, 1.3.2, 1.4.2, 1.4.4, 1.5.2, 
Performance: Compensation and support 
1.5.3, 1.5.4, 1.6.2, 1.6.4
 
Analysis of performance against Purpose 1
Timeliness
DVA’s transformation agenda has had a positive impact on compensation claims lodgement by veterans, 
with a particularly strong focus on:
•  utilising MyService
•  early intervention supports
•  completing comprehensive Needs Assessments for clients
•  providing access to mental health treatment (particularly via expanded Non-Liability Health Care provisions).
In 2018–19, as a result of our work on promoting our services to veterans and streamlining claiming 
processes, we received an increased number of compensation claims. In some instances, because of 
those increases in claim numbers (under programs 1.2 and 1.6), the time taken to process claims also 
increased. In particular, timeliness targets were not met for liability claims that fall under performance 
criterion 1.2.1 (disability support under the Veterans’ Entitlements Act 1986 (VEA)); and performance 
criterion 1.6.1 (claims under the Safety, Rehabilitation and Compensation (Defence-related Claims) 
Act 1988 (DRCA)).
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DEPARTMENT OF VETERANS’ AFFAIRS
We achieved our timeliness target for new income support claims (under program 1.1) in 2018–19. 
A critical factor in this success was the electronic link with Department of Defence records, which allows 
us to almost instantaneously confirm qualifying service. In the past this has been a barrier to achieving 
timeliness targets for new claims. Work is underway to develop new pension processing systems which, 
once fully implemented, should provide further processing and client service improvements.
We also achieved our timeliness target for processing pensioner-initiated reviews (PIRs) in 2018–19. 
This is especially notable given the increasing complexity of clients’ personal circumstances and 
sophistication of their financial affairs, as well as the fluctuating economic climate, all contributing to a 
need for a greater level of investigation for PIRs. Additional time taken during the investigation process 
helps to ensure clients continue to receive their correct entitlements.
We processed all Defence Service Homes loan subsidies (program 1.4) well within our target of 18 days. 
Defence Service Homes clients continue to receive an excellent level of service, reflected in the fact 
that we received no complaints about timeliness of processing. Half of the requests we received were 
finalised within five days—this greatly assisted veterans and their families to meet their housing needs.
We processed Veterans’ Children Education Scheme claims (program 1.5) well within our target of 28 days.
Currently, DVA reports on timeliness performance by reporting the median number of days it takes to 
process claims within a target time frame. To simplify timeliness reporting from 2019–20, reporting will 
move to the percentage of claims processed within the target time frame.
Table 3: Percentage of claims completed within target days, 2018–19
% of claims 
processed 
Claim type
Target (days)
within the target
VEA income support new claims
30
71.7
VEA income support PIRs
10
53.2
VEA disability pensions
100
43.9
VEA war widow/ers
30
53.2
VEA funeral benefits
10
86.4
MRCA initial liability
100
67.0
DRCA initial liability
100
37.4
MRCA permanent impairment
100
62.0
DRCA permanent impairment
100
63.7
MRCA incapacity
50
57.0
DRCA incapacity
50
60.6
DRCA = Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988; MRCA = Military Rehabilitation and Compensation 
Act 2004;
 VEA = Veterans’ Entitlements Act 1986
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DEPARTMENT OF VETERANS’ AFFAIRS
Quality
In 2018–19 we continued to achieve our quality targets for new income support claims and 
PIRs (program 1.1) as well as for funeral benefits (program 1.4).
We achieved a 100 per cent correctness rate for the Defence Service Homes loans scheme 
(program 1.4), maintaining its reputation as a well -administered scheme and ensuring that clients receive 
the highest standard of service. Clients can be confident they are receiving their correct entitlements 
under the Defence Service Homes loan scheme.
DVA continues to improve the quality of work across all programs under Purpose 1 by using issues and 
trends identified in the quality assurance program to manage resource allocation, improve training and 
development packages, target policy and procedural support, improve information technology support, 
and engage in performance management. As a result, we have improved the quality of decision-making 
under programs 1.2, 1.3 and 1.6, and we intend to continue to focus on quality into future years.
Under the Veterans’ Children Education Scheme and the Military Rehabilitation and Compensation Act 
Education and Training Scheme, education allowances are paid to eligible children of Australian Defence 
Force (ADF) members who have died or been severely injured as a result of service. The schemes also 
provide for special assistance, student support services, and guidance and counselling for eligible 
students undertaking primary, secondary and tertiary full -time study within Australia.
The Veterans’ Children Education Scheme claims (program 1.5) achieved 100 per cent correctness rates.
The results from the 2019 Education Schemes Satisfaction Survey demonstrate that a very high 
percentage of recipients believe that the support they received under the schemes was effective 
or very effective in helping them to reach their academic potential.
Summary
The increased number of compensation claims this year had a significant impact on our timeliness 
targets for liability claims under the VEA and DRCA. To address this, we are adjusting our staffing 
to better align with demand.
We are introducing combined benefits processing to further streamline assessment 
and determination of claims to reduce time taken to process and improve overall productivity. 
We are also making information and communications technology improvements that will result 
in more efficient processing. Our continued focus on quality improvement will ensure that clients 
are receiving the benefits and entitlements to which they are entitled.
ANNUAL REPORT 2018–19  ANNUAL PERFORMANCE STATEMENTS
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