This bill became law on Feb 14th, 2025.
Defence & foreign affairs
The law lets the Australian Government keep acting for a private insurer in selling and handling insurance linked to Defence Service Homes.
Longstanding Defence Service Home Insurance work was being done without clear express legal authority, leaving past policies, claims and information handling open to doubt. The bill gives the Veterans’ Affairs Secretary explicit power to act for the insurer and validates past insurance activities so cover and claims remain effective.
Since 1919 the Defence Service Homes schemeThe long-running government program that helps eligible defence community members with housing-related support, and now also sits behind the insurance brand on this page. had supported veterans’ housing, and from 1990 the Department of Veterans’ Affairs had also been selling Defence Service Homes InsuranceThe insurance brand used by the Department of Veterans' Affairs when it sold and handled insurance for Defence Service Homes policyholders.-branded general insurance as an agent for a private insurer without clear express statutory authority. When that legal gap became urgent during the February 2025 Townsville flood, the government moved a bill to validate past policies and claims, give the Veterans’ Affairs Secretary clear authority to keep running the insurance arrangements, and, after Royal AssentThe final step that turns a bill into an Act; the page says the law starts the day after Royal Assent., preserve confidence that existing and past cover remained effective.
The main criticism was not of the bill's goal but of the government's handling of the problem, especially the lack of transparency about when ministers knew the insurance arrangement was unlawful and why the fix took so long. That concern was raised in Senate debate by the Greens, while no party represented in the debate opposed the bill itself.
Matt Keogh MP introduced this bill. It passed on the voices.
Did it become law?
Yes
Became law 14 Feb 2025
Final passage
Passed without a counted vote
Members called out ‘aye’ or ‘no’ — no individual votes were recorded.
Passage speed
10 days
From introduction to the latest recorded parliamentary step
Meaning
The law lets the Australian Government keep acting for a private insurer in selling and handling insurance linked to Defence Service Homes.
The Secretary of the Department of Veterans’ Affairs can do what is needed to run these insurance activities for the Australian Government.
The law confirms that Defence Service Home Insurance activities carried out since 1 January 1990 are legally valid, giving policyholders confidence their cover and claims remain effective.
Past insurance deals and actions by Department of Veterans’ Affairs staff, contractors and consultants are treated as valid, not just actions by senior officials.
People can seek compensation in the Federal CourtThe court where a person can ask for compensation if the validation law acquires their property and the amount is disputed. if this validationThe bill's legal fix that treats earlier insurance arrangements and actions as if they were valid from the start. law takes property from them and they cannot agree with the Australian Government on a fair amount.
(1) The Commonwealth may engage in activities with respect to insurance within the meaning of paragraph 51(xiv) of the Constitution, other than State insurance that does not extend beyond the limits of the State concerned, as an agent (including an authorised representative) for an insurer.Defence Service Homes Amendment (Insurance) as-passed bill text
(2) The Secretary may, on behalf of the Commonwealth, do anything necessary or convenient for the purposes of carrying out such activities.Defence Service Homes Amendment (Insurance) as-passed bill text
The Bill will commence on the day after it receives the Royal Assent. Part 2 of Schedule 1 to the Bill operates to confirm the validity of past activities carried out by the Commonwealth as an agent for an insurer. An effect of that Part is to confirm that all insurance policies that the Department of Veterans’ Affairs (the Department) has sold before the commencement of this Bill are valid and effective. This practically reassures existing and past policyholders that their policies are effective so claims may be lodged for their coverage period.Defence Service Homes Amendment (Insurance) explanatory memorandum
Subitems (2), (3) and (4) operate together to validate previous arrangements entered into by the Commonwealth as well as anything done before this Part commences. The arrangements or things are deemed to be valid and effective for all purposes, so long as the arrangements or things were entered into or done by a person working in or for the Department of Veterans’ Affairs at that time. The person could be an APS employee, contractor or consultant working in or for the Department.Defence Service Homes Amendment (Insurance) explanatory memorandum
Subitem (7) gives the person from whom property is acquired the right to bring an action in the Federal Court of Australia to determine the reasonable amount of compensation, if the Commonwealth and the person cannot agree on the amount of compensation.Defence Service Homes Amendment (Insurance) explanatory memorandum
Context
Since 1919 the Defence Service Homes schemeThe long-running government program that helps eligible defence community members with housing-related support, and now also sits behind the insurance brand on this page. had supported veterans’ housing, and from 1990 the Department of Veterans’ Affairs had also been selling Defence Service Homes InsuranceThe insurance brand used by the Department of Veterans' Affairs when it sold and handled insurance for Defence Service Homes policyholders.-branded general insurance as an agent for a private insurer without clear express statutory authority. When that legal gap became urgent during the February 2025 Townsville flood, the government moved a bill to validate past policies and claims, give the Veterans’ Affairs Secretary clear authority to keep running the insurance arrangements, and, after Royal AssentThe final step that turns a bill into an Act; the page says the law starts the day after Royal Assent., preserve confidence that existing and past cover remained effective.
Defence Service Homes schemeThe long-running government program that helps eligible defence community members with housing-related support, and now also sits behind the insurance brand on this page. begins
The Defence Service Homes schemeThe long-running government program that helps eligible defence community members with housing-related support, and now also sits behind the insurance brand on this page. began providing housing-related support for Australian Defence ForceAustralia's military force; the page says many policyholders are current or former ADF members or their families. members, veterans and their families, creating the long-running program that later carried the insurance brand.
Hansard ↗Defence Service Homes InsuranceThe insurance brand used by the Department of Veterans' Affairs when it sold and handled insurance for Defence Service Homes policyholders. starts selling private insurer products
From 1990, Defence Service Homes InsuranceThe insurance brand used by the Department of Veterans' Affairs when it sold and handled insurance for Defence Service Homes policyholders. acted for a third-party commercial insurer to offer branded home, contents, motor and other insurance products.
Hansard ↗Government says longstanding insurance practice needs formal legal authority
Introducing the bill, the minister said it would formalise and regularise longstanding CommonwealthThe Australian federal government, which this bill lets act for the insurer and which is given the legal power being confirmed here. practice and confirm the validity of past Defence Service Home Insurance activities.
Australian Parliament House ↗Townsville flood sharpens the need to protect policyholders' cover
During debate, supporters said the Townsville flood made it urgent to remove doubt about whether Defence Service Homes policyholders were properly insured.
Hansard ↗Parliament passes the bill
Both houses passed the bill in the same form, clearing the way for the CommonwealthThe Australian federal government, which this bill lets act for the insurer and which is given the legal power being confirmed here. to keep operating Defence Service Homes InsuranceThe insurance brand used by the Department of Veterans' Affairs when it sold and handled insurance for Defence Service Homes policyholders. with explicit authority for more than 32,000 current policyholders.
Parliamentary timeline ↗Royal AssentThe final step that turns a bill into an Act; the page says the law starts the day after Royal Assent. confirms past policies and claims remain effective
Royal AssentThe final step that turns a bill into an Act; the page says the law starts the day after Royal Assent. turned the bill into an Act, with the explanatory memorandum saying the validationThe bill's legal fix that treats earlier insurance arrangements and actions as if they were valid from the start. provisions would reassure existing and past policyholders that their cover was effective and claims could be lodged for the covered period.
Parliamentary timeline ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
Both houses passed the bill in the same form, completing parliamentary passage.
Finally passed both Houses
The Governor-General gave Royal AssentThe final step that turns a bill into an Act; the page says the law starts the day after Royal Assent., turning the bill into an Act.
Key criticism
The main criticism was not of the bill's goal but of the government's handling of the problem, especially the lack of transparency about when ministers knew the insurance arrangement was unlawful and why the fix took so long. That concern was raised in Senate debate by the Greens, while no party represented in the debate opposed the bill itself.
Criticism was narrow and focused on delay, transparency and the earlier privatisation setup.
Delay and lack of transparency
Critics said the real problem was the government's management of the issue: Parliament was not told clearly when the unlawful insurance arrangement was discovered or why legislation to validate it was delayed. The worry was that a long-running legal defect was left unresolved until an urgent repair bill was needed.
Privatisation created the legal mess
A broader reservation was that the need for retrospective validationThe bill's legal fix that treats earlier insurance arrangements and actions as if they were valid from the start. arose from a privatised insurance model that left the CommonwealthThe Australian federal government, which this bill lets act for the insurer and which is given the legal power being confirmed here. operating through arrangements later found to lack proper legal authority. The concern was less about continuing cover for veterans than about the policy and administrative choices that created the defect.
Further sources
Votes
The bill passed both chambers on the voices, so there is no list of individual Aye and No votes for final passage.
House agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Senate agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Parliamentary debate
Start here — lead voices
Keogh supports the bill and urges the House to pass it promptly, saying it will formalise longstanding CommonwealthThe Australian federal government, which this bill lets act for the insurer and which is given the legal power being confirmed here. practice and let Defence Service Homes InsuranceThe insurance brand used by the Department of Veterans' Affairs when it sold and handled insurance for Defence Service Homes policyholders. keep providing and renewing insurance for veterans, ADFAustralia's military force; the page says many policyholders are current or former ADF members or their families. members and their families.
Read in Hansard ↗Shoebridge says the Greens will support the bill, but they want transparency about when the government learned the insurance arrangements were unlawful and why it took so long to fix them.
Read in Hansard ↗Gallagher supports the bill, saying it will formalise the CommonwealthThe Australian federal government, which this bill lets act for the insurer and which is given the legal power being confirmed here.'s long-standing insurance practice and give clear legal authority for Defence Service Homes InsuranceThe insurance brand used by the Department of Veterans' Affairs when it sold and handled insurance for Defence Service Homes policyholders. to keep providing and renewing cover for veterans and their families.
Read in Hansard ↗McAllister supports the bill and thanks senators for their contributions to the debate, presenting it as an important measure for defence families.
Read in Hansard ↗All speeches by bloc
3 speakers · 4 contributions · 3 support
Hansard records 2 separate contributions by Matt Keogh, including an amendment-moving contribution. They are grouped here so the speaker is listed once.
Moved amendment
Keogh supports the bill and urges the House to pass it promptly, saying it will formalise longstanding CommonwealthThe Australian federal government, which this bill lets act for the insurer and which is given the legal power being confirmed here. practice and let Defence Service Homes InsuranceThe insurance brand used by the Department of Veterans' Affairs when it sold and handled insurance for Defence Service Homes policyholders. keep providing and renewing insurance for veterans, ADFAustralia's military force; the page says many policyholders are current or former ADF members or their families. members and their families. He argues it also validates past authorised-representative activity and helps keep costs down for Defence families.
“Full details of the measures contained in this bill are set out in the explanatory memorandum. I urge members to support this legislation and move it through our parliament promptly.”Read this contribution in Hansard ↗
Second reading speech
Keogh supports the bill and says it is needed to keep the Defence Service Homes InsuranceThe insurance brand used by the Department of Veterans' Affairs when it sold and handled insurance for Defence Service Homes policyholders. arrangements operating for serving personnel, veterans and their families. He commends it to the House for fast passage.
“I won't add too much more on the bill—it was all covered in my second reading speech only a day ago—other than to say that the amendments that are put forward in this bill ensure the continued operation of the Defence Service Homes Insurance arrangements. That is incredibly important for our personnel, our veterans and their families that utilise this insurance opportunity provided by and through the government. For that reason, I commend the bill to the House.”Read this contribution in Hansard ↗
“This Bill will formalise longstanding Commonwealth practice by providing express legislative authority for the Commonwealth to continue to provide general insurance or act as an authorised representative of a third-party insurer.”Read the full speech in Hansard ↗
“I would like to thank all senators for their contribution to the debate on the Defence Service Homes Amendment (Insurance) Bill 2025, and for their acknowledgement of the important role defence families play in supporting our defence personnel.”Read the full speech in Hansard ↗
2 speakers · 2 support
“We will be supporting this bill. This bill fixes a problem that was faced. It will sort things out.”Read the full speech in Hansard ↗
“I'm not going to yack on for too long. This is pretty straightforward. There has been a review. It has found a potential problem in insurance. You can get a house through the Defence Service Homes Insurance Scheme, under DVA, and DVA acts as the agent. QBE does the insurance, but DVA is the agent. Technically we don't know whether they're allowed to do that, so we've just got to try and fix this up. I've had discussions with the minister. I appreciate that correspondence. I think it is best for us to expediate this. Why? We have had a massive flood around Townsville. There are a lot of people there who have DVA housing. I'm absolutely certain they want to make sure that, at this point in time, their house is insured.”Read the full speech in Hansard ↗
1 speaker · 1 support
“I also note that this comes about through Labor's privatisation, which is no doubt loved by the coalition. Between them, there's nothing they don't want to privatise. It turns out, once again, they've got themselves in a muddle. But, because we're worried about the individual veterans and because we are worried about individual families, we will support the validation so that the whole thing doesn't fall over.”Read the full speech in Hansard ↗
Record
House · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
House · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
House · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Senate · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Senate · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Senate · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
Senate · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Senate · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Parliament · Finally passed both Houses
Passed both houses
Both houses passed the bill in the same form, completing parliamentary passage.
Assent · Assent
Assent
The Governor-General gave Royal AssentThe final step that turns a bill into an Act; the page says the law starts the day after Royal Assent., turning the bill into an Act.
