Government Moves to Protect Veteran Data from Offshore Risks
The federal government is actively considering a significant ban on advocacy companies storing veteran data overseas. This move comes amid heightened concerns that active defence members might be inadvertently sharing sensitive information about Australian military engagements with what officials describe as unscrupulous offshore entities.
Senate Inquiry Sparks Action on Data Security
The Department of Veterans Affairs (DVA) is exploring restrictions on paid advocates—individuals and companies that charge veterans for assistance with claims. This follows a Senate inquiry that uncovered alleged exploitation and fraud within the sector. Committee Chair Sarah Henderson labelled reports of advocacy companies holding data on ongoing overseas engagements as very concerning.
The inquiry specifically recommended that DVA address the national security and personal privacy risks posed by offshore data handling. In a statement, the department noted, DVA clients provided sensitive personal information to their advocates and in some instances may disclose sensitive information about Australian military engagements.
Potential Challenges and Industry Concerns
Hosting personal information overseas also poses potential challenges for the Australian government to act where illegal conduct is identified, including breaches of Australian privacy and data security laws. The Veterans, Emergency Services and Police Industry Institute of Australia (VESPIA) informed the inquiry that some advocacy services appear as Australian companies but conduct key functions offshore.
VESPIA advocates for mandatory data storage in Australian centres and a government ban on undisclosed offshore handling of personal and medical information. While the Defence Force Welfare Association supports keeping data within the country, it acknowledged this could create issues for veterans based overseas.
Crackdown on Fee Structures and Professional Standards
DVA is also examining ways to regulate paid advocates further, including imposing rules on fee structures. The government is particularly focused on ensuring commercial advocacy providers set reasonable and transparent fees. Concerns have been raised about:
- Commission-based fees
- Contingency fees tied to impairment points or gold card outcomes
- Contract termination penalties
Possible regulatory measures include banning commission-based and contingency fees, as well as no win, no fee advertising. Enforcement could involve infringement notices, injunctions, and civil or criminal penalties. Another proposal is requiring advocates to be mandatory members of a professional body, similar to legal practitioners.
Addressing Health Provider Exploitation
In a related move, the federal government has committed to preventing doctors and health professionals from taking advantage of veterans, while increasing rebates for medical reports and services. Veterans' Affairs Minister Matt Keogh stated, While many thousands of health care providers across Australia provide critical services... regrettably some do not.
DVA clarified it will only pay for reports submitted following a formal request and cannot guarantee payment for unsolicited work. The Department will NOT pay for medical reports which are requested by other parties, including veterans or former members of the ADF, their advocates, solicitors or dependants, the statement emphasised.
These updates are part of DVA's broader effort to safeguard the integrity of the veteran support system, making it easier for veterans and families to access fair, transparent, and accountable care and compensation. The government is investing over $203 million to strengthen program integrity and veterans' advocacy, including reforms to combat fraud and expand professionalised free advocacy services.
