The tribunal's decision
16 There was no dispute before the tribunal that the appellant's army service constituted eligible defence service for the purpose of the VE Act. It was also common ground, and the tribunal accepted, that Mr Boys was involved in three motor accidents, in 1981, 1982 and 1983 respectively, when he was returning to army camp (Puckapunyal), each of which affected his neck.
17 There was also no dispute that he suffered from cervical spondylosis.
18 Mr Boys first sought to establish that his cervical spondylosis was related to his service and that he was eligible for an increase in the rate of payment of his pension (which was being paid at 90% of the "general rate") by an application to the Repatriation Commission lodged 14 May 2014 - that is to say, approximately six weeks before the revocation of SoP No 34.
19 On 7 May 2015, a delegate of the Commission decided that Mr Boys' cervical spondylosis was not related to service, and decided that he was eligible for an increase in the payment of his pension to 100% of the general rate. The VE Act also provided for the assessment and payment of disability pensions at a "special rate", which was higher than the general rate. The Commission found that Mr Boys was not eligible for pension at the special rate.
20 By an application dated 26 May 2015, Mr Boys applied to the Veterans' Review Board for a review of the Commission's decision. On 8 November 2017, the Board informed Mr Boys that it had affirmed the Commission's decision.
21 Several weeks later, Mr Boys applied to the tribunal for a review of the Board's decision. The tribunal heard the application in August 2019, and, after receiving further submissions in May 2020, affirmed the Board's decision in July 2020. It is that decision that is the subject of this appeal.
22 The critical issue before the tribunal was whether Mr Boys' cervical spondylosis was related to his service. Resolution of that issue turned on whether factor 6(f) of SoP No 67 existed.
23 For reasons about which one can only speculate, the tribunal proceeded on the basis that Statement of Principles No 66 of 2014 applied. That was the Statement of Principles applicable to the condition of cervical spondylosis where a veteran had undertaken "operational service" (which, as noted above, Mr Boys had not). It was materially different to SoP No 67 and had not been referred to by either party during their submissions to the tribunal.
24 By reference to the wrong Statement of Principles, the tribunal reasoned as follows (footnotes omitted):
27. The Respondent submits that there was not a sufficient connection between the motor vehicle accidents identified as being causative of the cervical spondylosis condition and the Applicant's eligible defence service.
28. Both the Applicant and the Respondent have referred to a Statement of Principles determined under s 196B(2) of the Veterans' Entitlements Act 1986 (Cth) ("the Act"): Statement of Principles concerning cervical spondylosis No. 66 of 2014 ("the Statement of Principles").
29. Paragraph 3 of the Statement of Principles relevantly states:
"(b) For the purposes of this Statement of Principles, "cervical spondylosis" means a degenerative joint disorder affecting the cervical vertebrae or intervertebral discs with:
(i) clinical manifestations of local pain and stiffness, or symptoms and signs of cervical cord or cervical nerve root compression; and
(ii) imaging evidence of degenerative change, including disc space narrowing or osteophytes.
Other commonly associated features include facet joint arthritis, bone hypotrophy and spinal stenosis. This definition excludes diffuse idiopathic skeletal hyperostosis and bulging of an intervertebral disc in the absence of other signs of disc degeneration. Cervical spondylosis includes spondylosis at the lumbrosacral junction. …
(d) In the application of this Statement of Principles, the definition of "cervical spondylosis" is that given at paragraph 3(b) above."
30. The Respondent submits therefore that the Statement of Principles for cervical spondylosis requires the presence of both manifestations of pain and symptomology consistent with such a diagnosis and radiological imaging confirming such a diagnosis. The Respondent submits that the date of clinical onset therefore ought to be 13 June 2014, given the radiology confirming cervical spondylosis on that date. The Applicant stated that there was an X-ray examination on 13 June 2014, further to sub-paragraph 3(b)(ii). The Applicant submitted that 13 June 2014 is the date at which the diagnosis is "confirmed", submitting that that would be the 'norm' as to a condition described as degenerative in nature. For the purposes of the Statement of Principles there is not "cervical spondylosis" until 13 June 2014, in that there is not until that time, as stated by the Applicant, imaging evidence of degenerative change, including disc space narrowing or osteophytes, as required by sub-paragraph 3(b)(ii).
31. Paragraph 5 of the Statement of Principles states that, subject to clause 7, at least one of the factors set out in clause 6 must be related to the relevant service rendered by the person. The Applicant states that factor 6(f) in the Statement of Principles is applicable:
"6. The factor that must as a minimum exist before it can be said that a reasonable hypothesis has been raised connecting cervical spondylosis … with the circumstances of a person's relevant service is: …
(f) having a dispositional [sic] joint disease in the cervical spine before the clinical onset of cervical spondylosis … ".
32. It is found, having regard to the evidence of Professor Brazenor, as referred to above, as a minimum, that the Applicant did have a dispositional [sic] joint disease in the cervical spine before the clinical onset of cervical spondylosis, as stated in factor 6(f) of the Statement of Principles. The Statement of Principles does uphold the contention of the Applicant that the cervical spondylosis is, on the balance of probabilities, connected with the Applicant's service.
33. As to whether it can be said on the balance of probabilities that the cervical spondylosis is connected with the circumstances of the Applicant's relevant service, there is also to be 'reasonable satisfaction' that an injury suffered by a person or a disease contracted by a person was defence-caused only if, in addition to the Statement of Principles, the material raises a connection between the injury, disease or death of the person and some particular service rendered by the person: s 120B of the Act.
34. As stated in Re Repatriation Commission v Norman Edwin Tuite [1993] FCA 39; (1993) 39 FCR 540; (1993) 29 ALD 609 (18 February 1993) at [6] and [8] per Davies J:
"6. … if an injury or disease is claimed to have arisen out of or be attributable to a service[perso]n's period of camp life, the question will usually be whether life in camp was a contributing cause and not merely the setting in which the event occurred. Denning J has said that the service 'must be a cause as distinct from being part of the circumstances in or on which the cause operates'. See Marshall v Minister of Pensions (1948) 1 KB 106 at 110; W. v Minister of Pensions (1946) 2 All ER 501 at 502; Minister of Pensions v Chennell (1947) 1 KB 250 at 256. …
8. If the circumstances of eligible … service provide an operative cause contributing to the service[perso]n's … disease, it matters not that the relevant circumstances … could be found elsewhere than in camp life. The question in each case, and it is a question of fact for the administrative decision-maker, is whether the eligible … service contributed causally to the injury or disease."
35. The motor vehicle accidents, on the Applicant's evidence, as referred to above, have a temporal connection with the eligible service of the Applicant. Having regard to the Applicant's evidence, the defence service was the setting in which the Applicant had the motor vehicle accidents and not, on the Applicant's evidence, the cause of them. It is found that there is some connection with the Applicant's relevant service, but the injury suffered or a disease contracted was not therefore defence-caused on the balance of probabilities.
25 Before the tribunal, Mr Boys also applied for assessment of his pension at the special rate.
26 The criteria for assessment of a pension at the special rate are defined in s 24 of the VE Act, and relevantly included a requirement in s 24(1)(c) that "the veteran is, by reason of incapacity from that war-caused injury or war-caused disease, or both, alone, prevented from continuing to undertake remunerative work that the veteran was undertaking and is, by reason thereof, suffering a loss of salary or wages, or of earnings on his or her own account, that the veteran would not be suffering if the veteran were free of that incapacity".
27 Because the tribunal had concluded that Mr Boys' cervical spondylosis was not "defence-caused", it concluded that Mr Boys "was not, by reason of incapacity from the defence-caused injury or defence-caused disease, or both, alone, prevented from continuing to undertake the remunerative work that [he] was undertaking when he last worked as a builder". It reasoned as follows (footnotes omitted):
39. The Respondent submits that from the "commencement of the assessment period the Applicant was suffering and continues to suffer from a number of non-service related disabilities, including cervical spondylosis, frontal lobe dysfunction, asthma, bilateral knee problems and sleep apnoea", therefore in contradiction to s 24(1)(c) of the Act.
…
41. "The relevant 'remunerative work that the Applicant was undertaking' within the meaning of section 24(1)(c) of the Act" was as a builder, in a management and administrative sense, as referred to above. The Applicant stated that in the late 2000's that his workload reduced to 7 to 10 hours per week in the building business.
42. As stated in Cavell v Repatriation Commission [(1988) 9 AAR 534]: "… anything that plays a part in excluding [the Applicant] from work is sufficient to prevent applicability of s 24(1)(c)".
43. The Applicant stated that if it were not for his back, neck, alcohol abuse, alcohol induced mood disorder and adjustment disorder, he would still be operating the building business.
44. The Applicant stated that his sleep apnoea condition is controlled by a CPAP machine, so the Applicant is sleeping all night, constantly. The Applicant's asthma, he stated, was under control, in that he had used medication only once in 2019 up to the date of the hearing. The Applicant stated that he does not consider that he has any issue, from his lay opinion, in terms of having any type of frontal lobe issue. The Applicant stated that he has no problems with his right knee, further to the removal of a piece of cartilage a few years ago. The Applicant stated that he has no problems with his left knee. The Applicant referred to having severe cellulitis in his right lower leg, which required hospitalisation for 6 days, before 'clearing up'.
45. Both limbs of section 24(1)(c) are to be satisfied. The second limb of section 24(1)(c) is to be read with section 24(2)(a) of the Act. The Applicant stated that he has not received any salary from the business for about the three years leading into the hearing, from about 2016. The Applicant stated that since 2016 he has been "approached" as to new building work and has 'knocked them back' or 'passed them on' to others.
46. As found above, the cervical spondylosis was not defence-caused on the balance of probabilities. The Applicant stated that with the exception of cervical spondylosis, he would still be operating the business. It is therefore found, having regard to the evidence of the Applicant, that the Applicant during the assessment period was not, by reason of incapacity from the defence-caused injury or defence-caused disease, or both, alone, prevented from continuing to undertake the remunerative work that the Applicant was undertaking when he last worked as a builder.
47. Section 24 of the Act therefore does not apply, in that the Applicant states he is not able to work by reason of the cervical spondylosis, which is not an incapacity from defence-caused injury or defence-caused disease, or both, alone, preventing him from continuing to undertake remunerative work that the Applicant was undertaking and is, by reason thereof, suffering a loss of salary or wages, or of earnings on his own account, that the Applicant would not be suffering if the Applicant were free of that incapacity.