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Temporary Special Rate vs Loss of Earnings allowance - 7

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  1. The Loss of Earnings allowance is provided under s 108 of the VEA. Unlike the Temporary Special Rate pension, eligibility for the Loss of Earnings allowance is not dependent on a veteran's level of incapacity from accepted conditions or the number of hours they are able to undertake remunerative work.

  1. Loss of Earnings allowance may be granted to a veteran who has been absent from their usual place of employment and has lost salary, wages or earnings due to:
  • receiving treatment for an accepted condition;
  • waiting for the supply or repair of an artificial limb or other surgical aid;
  • attending an appointment for the purposes of investigation of a claim or application for increase for disability pension; or
  • having no benefit to cover an absence for another illness, after using sick leave for accepted conditions.

  1. Loss of Earnings allowance may also be paid to an attendant approved by the Commission to accompany a veteran in the circumstances outlined above. A person acting on behalf of a veteran in conjunction with a claim or investigation of a claim may also be paid the Loss of Earnings allowance for any resulting loss of salary, wages or earnings.

  1. The table below outlines the key differences to be considered when determining whether or not a veteran is eligible for either the Temporary Special Rate or Loss of Earnings allowance.

Temporary Special Rate

Loss of Earnings Allowance

Age

There are specific work history requirements for veterans aged 65 years and over.

As per Special Rate, if claiming at or over age 65, work requirements are based on the veteran's last paid work.

No age requirements/limits.

Disability level

Veteran is assessed at 70% incapacity or more due to accepted conditions.

No minimum level of disability pension.

Work capacity

Veteran is temporarily incapable of undertaking remunerative work for more than 8 hours a week due to accepted conditions alone.

No work capacity or work hours requirements.

Work History

Veteran is prevented from continuing their remunerative work due to their accepted conditions alone.

If claiming at or over age 65, the veteran

  • was undertaking their last paid work after turning 65;
  • had been in that last paid work for a continuous 10-year period that commenced prior to the veteran turning 65; and
  • has ceased their last paid work.

No work history or specific age requirements or limits.

Loss

Loss of salary, wages or earnings as the veteran is prevented from continuing their remunerative work due to accepted conditions alone.

Loss of salary, wages, or earnings due to the veteran (being absent from work):

  • undergoing treatment for a service-related condition;
  • waiting for the supply/repair of an aid;
  • having no benefit to cover an absence for another illness, after using sick leave for their accepted conditions; or
  • attending an appointment arranged by DVA

Duration

Paid during the period incapacity is likely to continue based on medical evidence. If granted, is subject to review prior to expiration of the scheduled payment period.

Paid for the period of actual lost salary, wages or earnings due to absence from work.

Amount of Compensation

Statutory rate regardless of actual amount of earnings

The lesser of:

  • the Special rate pension minus the veteran's present disability pension, and
  • the amount of salary, wages or earnings actually lost.