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6.6 Loss of Earnings Allowance

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"The information contained in the Consolidated Library of Information and Knowledge (CLIK) does not replace legislation and any relevant decisions that have been determined by the courts."

VEA

What is Loss of Earnings Allowance?

Loss of Earnings Allowance compensates an eligible veteran, Member of the Forces, or Member of a Peacekeeping Force for salary, wages or earnings lost while receiving treatment for war-caused or defence-caused disabilities or while attending appointments required to investigate a claim for a disability pension. It may also compensate the person's representative or attendant assisting in these matters.

When can Loss of Earnings Allowance be paid to a veteran or member?

Section 108(2)

Loss of Earnings Allowance can be paid where a veteran or member is undertaking/ has undertaken remunerative work and has lost salary, wages or earnings due to:

  • receiving treatment for a war or defence-caused disability. This includes waiting for the supply or repair of an artificial limb or other surgical aid. Treatment may also include passive measures such as cessation of work, or a period of rest and recuperation where recommended as treatment by a medical practitioner,
  • using part or all of employer provided sick leave for a war or defence-caused disability, and subsequently, in that year, having no benefit to cover an absence for another illness  That is, if the veteran has accessed sick leave for an accepted condition, he or she can then access Loss of Earnings Allowance for a period of time off work for a non-accepted condition, up to the time limit of sick leave accessed for accepted conditions in that year, or     
  • commitments related to the investigation of a claim for, or an application for increased rate of, disability pension.    
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    Disability Pension

    Chapter 4.1

     

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There is no requirement that a veteran or member exhaust his or her sick leave entitlement before accessing Loss of Earnings Allowance. A veteran or member may organise leave without pay and receive Loss of Earnings Allowance for the period he or she is accessing eligible treatment. The sick leave provisions in the Loss of Earnings Allowance provisions are to provide a “safety net” so veterans and members are not disadvantaged by the impacts of their accepted conditions.

When can Loss of Earnings Allowance be paid to an attendant or representative?

Section 108(3)

A person other than a veteran or member can receive Loss of Earnings Allowance for a loss of salary, wages or earnings if he or she is:

  • an attendant authorised by Commission to accompany a veteran for the purposes of assisting with travel for health or disability pension-related reasons, or     
  • section 108(4) - acting on behalf of a veteran or member, or a dependant of a veteran or member, in relation to a claim for disability pension and as a result of the investigation of that claim, suffers a loss of salary, wages or earnings.    
When is Loss of Earnings Allowance not paid?

Section 108(7)

Loss of Earnings Allowance is not payable to veterans or members receiving a disability pension at the [glossary:Special Rate:Def Special Rate (T&PI)] [glossary:(:][glossary:T&PI:Def Special Rate (T&PI)][glossary:):] as they are already receiving the maximum pension/allowance allowable under the VEA.    

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Special Rate of pension

Section 4.1.6

 

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How much is the Loss of Earnings Allowance?

Section 108(8)

The amount of Loss of Earnings Allowance payable is the lesser of the:

  • difference between the Special Rate and the person's assessed rate of disability pension (or the disability pension that would be payable but for offsetting provisions), or
  • amount of salary wages or earnings actually lost (including loadings or other allowances that would have been payable).    
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    Special Rate of pension

    Section 4.1.6

     

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When calculating the amount of the Loss of Earnings Allowance, please refer to the Commission Guidelines: CM 5514 – Calculation of Loss of Earnings Allowance and CM 7030 – Application of the Loss of Earnings Allowance Provisions.    

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Reference Library - Calculation of Loss of Earnings Allowance - Commission Guideline CM5514

CG/CM5514

Reference Library – Application of the Loss of Earnings Allowance Provisions - Commission Guideline CM7030

CG/CM7030

 

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The latter Guideline provides further assistance for calculating Loss of Earnings Allowance in cases involving:

  • self employed persons
  • rest and recuperation
  • sick leave provisions
  • the amount of lost earnings.
See Also

Loss of Earnings Allowance

Chapter 4.1 Disability Pension Eligibility

 


 

 

For the purposes of Part VI of the VEA, a reference to a veteran is taken to be a reference to:

  • a veteran as defined in subsection 5C(1) of the VEA;
  • a member of the Forces as defined in subsection 68(1) of the VEA; or
  • a member of a Peacekeeping Force as defined in subsection 68(1) of the VEA.

For the purposes of Part VII of the VEA, according to subsection 5C(1), veteran means a person (including a deceased person):

  • who is taken to have rendered eligible war service, or
  • in respect of whom a pension is, or pensions are, payable under subsection 13(6) and
  • in Part III and Part VIIC of the VEA includes a person who is:

 

 

A member of the forces is a person who served in the defence force for a continuous period that commenced after 7 December 1972 and has the type of service required in sections 69, 69A and 69B of the VEA.

“Member of a Peacekeeping Force means a person who is serving, or has served, with a Peacekeeping Force outside Australia as an Australian member, or as a member of the Australian contingent, of that Peacekeeping Force."

Disability pension, for the purposes of service pension and income support supplement, means:

  • a pension paid for incapacity from war caused conditions, or peacetime, peacekeeping or hazardous service caused conditions (other than a war widow's or orphan's pension); or
  • temporary incapacity allowance; or
  • any other payment in respect of incapacity or death resulting from war or war-like operations in which the Crown has been engaged [usually paid by another Commonwealth country].

Disability pension, for the purposes of service pension and income support supplement, means:

  • a pension paid for incapacity from war caused conditions, or peacetime, peacekeeping or hazardous service caused conditions (other than a war widow's or orphan's pension); or
  • temporary incapacity allowance; or
  • any other payment in respect of incapacity or death resulting from war or war-like operations in which the Crown has been engaged [usually paid by another Commonwealth country].

According to Section 179 of the VEA, the Commission is a body corporate under the name of Repatriation Commission.

 

 

Veterans' Entitlements Act 1986.