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The Work Capacity Test - ement to Special Rate or Intermediate Rate pension. Section19(5C)(a) requires that assessm
Special Rate - 24(1)(b) and 28
Intermediate Rate – 23(1)(b) and 28
- Under this test, the veteran's incapacity from accepted conditions must, of itself alone:
- for Special Rate, render the veteran permanently incapable of undertaking their normal remunerative work or any other type of remunerative work they might reasonably undertake aggregating more than 8 hours per week; and
- for Intermediate Rate, render the veteran incapable of undertaking their normal remunerative work or any other type of remunerative work that they might reasonably undertake for 50% or more of the full-time hours ordinarily worked or 20 hours per week.
- For the veteran to be considered 'permanently incapacitated' as is required for Special Rate, it means likely to continue indefinitely. The best material to assist in determination of permanency is a report from the veteran's general practitioner, complemented by a report from an occupational physician or similar professional.
- If the evidence indicates that permanency is at issue, the delegate should consider if there is evidence to indicate that:
(i)the veteran can reasonably update past skills or undertake a program of retraining within a reasonable time; or
(ii)the veteran's condition would improve following a program of medical rehabilitation or course of treatment.
- If these circumstances apply, the delegate should assess whether the veteran meets the requirements for temporary payment at the Special Rate as required by s 24(1)(d). Details on these requirements can be found in Commission Guideline CM5574 and CM5569 of 2004.
- The threshold for the Special Rate requires that an eligible veteran is 'precluded from earning other than a negligible percentage of a living wage'; and for Intermediate Rate, the threshold reflects the intention to provide for veterans whose capacity to work (and earn) is greater than negligible.
- Section 28 provides the basis for assessing whether or not a veteran has the capacity to undertake remunerative work. The delegate must make the determination based on sound medical evidence.
- The information in Attachment B to these Guidelines discusses the terms contained in the Work Capacity test in more detail.