What Caused the DVA Claims Backlog?

The Australian Government Department of Veterans’​ Affairs (DVA) has faced significant challenges in managing the volume of claims submitted by veterans, particularly since 2017. The sudden surge in claims after 2017 led to a substantial backlog that left thousands of veterans waiting for their claims to be processed. However, after years of overwhelming pressure, the DVA has successfully cleared the DVA Claims Backlog, with the last of the unallocated claims processed by February 2024. Now, the department operates in a new business-as-usual (BAU) environment.

1. The Rise in Claims Volume Post-2017

The DVA’s claims volume significantly increased in the years following 2017. In the 2017-18 period, DVA received 54,875 claims. By 2018-19, this figure surged by 89% to 103,534 claims. This rapid increase in claims stemmed from several key factors:

• Veteran Centric Reform (VCR) program: The introduction of online claiming through the VCR program made it easier for veterans to submit their claims, contributing to a higher volume.
• Outreach programs: These programs raised awareness among veterans about their entitlements, leading more to seek DVA support.
• Increased ADF operational deployments: The surge in Australian Defence Force (ADF) deployments, especially in combat zones, resulted in more veterans submitting claims.
• Non-liability health care: Introduced in 2017 for mental health conditions, this reform connected more veterans with DVA services.

By 2021, DVA had projected a decline in veterans, expecting a reduction to 152,100 veteran clients by June 2021. Instead, the number grew to 240,231, 58% higher than anticipated. This rapid growth, combined with the increase in claims, stretched the DVA’s capacity to process them efficiently.

2. The Backlog Peaks and Royal Commission Intervention

The increasing volume of claims overwhelmed DVA’s processing capacity, with the department unable to keep up with the growing number of applications. As of 31 May 2022, there were 41,799 unallocated claims waiting to be assigned to decision-makers. This backlog was a major concern, especially as veterans continued to face long waits for their claims to be processed.

This situation was highlighted by the Royal Commission into Defence and Veteran Suicide, which recognised the significant delays in the claims process. The interim report from the Royal Commission revealed that the backlog was a serious issue, identifying 41,799 unallocated claims. These delays were contributing to ongoing stress for veterans and their families.

3. Clearing the Backlog: A Major Milestone

In a positive turn of events, the DVA succeeded in clearing the last of the unallocated claims backlog—the permanent impairment backlog—by the end of February 2024, ahead of the Royal Commission’s deadline of March 31, 2024. As of November 30, 2024, over 97.5% of the 41,799 claims identified in the Royal Commission’s interim report have been completed.

4. Government Commitment to DVA’s Capacity

The turnaround in DVA’s ability to clear the backlog is largely attributed to additional government funding. The government committed to funding ongoing staff to support the DVA in processing claims and reducing the backlog. This funding played a critical role in enabling the department to meet its processing goals and eliminate the backlog within a relatively short timeframe.

In the 2024-25 Budget, the government extended its commitment to DVA, ensuring that the department would have the resources it needs to operate efficiently and continue processing claims in a timely manner. This commitment ensures that DVA can maintain its capacity to process claims and focus on improving processing times and outcomes for veterans.

5. The New Business-as-Usual Environment

With the backlog cleared, DVA has transitioned into a business-as-usual (BAU) environment, where claims processing is more streamlined and efficient. DVA now receives around 4,000 claims every two weeks, and in this new BAU model, it aims to:

• Register, screen, and allocate new claims to a processing officer within two weeks of receipt.
• Maintain improved processing times and deliver better outcomes for veterans and their families.

This new approach is a significant shift from the chaotic backlog situation that had plagued the department for years. It is a sign of progress in ensuring that veterans receive timely support, though the DVA continues to recognise the importance of further improving claims processing timeframes and outcomes.

6. Ongoing Focus on Improvement

While clearing the backlog is a major accomplishment, DVA acknowledges that many veterans have had to wait too long for their claims to be processed. The department is now focused on improving claims processing timeframes and outcomes for veterans and their families. This includes efforts to enhance internal systems, simplify processes, and ensure that veterans’ needs are met promptly and effectively.

Conclusion

The DVA claims backlog, which had caused significant delays and stress for thousands of veterans, has now been largely cleared. This achievement follows a combination of increased government funding, additional staff, and reform efforts to improve the efficiency of claims processing. With the backlog behind them, DVA is operating in a new business-as-usual environment, focused on meeting its targets for processing claims and ensuring better outcomes for veterans. The clearing of the backlog is just the first step in a continued effort to improve the DVA claims process and make sure that veterans receive the support they deserve in a timely manner.