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Temporary Incapacity Allowance

Legislative Authority

Veterans' Entitlements Act 1986
Section 107


Stated Current Purpose/Intent

This allowance was removed from the VEA from 20 September 2011.


Current Eligibility Criteria

Eligibility for this allowance was removed from the VEA with effect 20 September 2011.

Eligibility prior to 20 September 2011 was dependent on the following:

  • Admission to a hospital or other institution must have been for a war-caused or defence-caused injury or disease.  Hospital or other institution included a home, hostel, medical centre, out-patient clinic, and rehabilitation or training establishment.
  • The treatment must have continued for more than 28 consecutive days.  The initial treatment must have been as an in-patient, but subsequent treatment may have been as a combination of in-patient, out-patient, or rest and recuperation.  Rest and recuperation must have been on the advice of a medical practitioner.
  • The treatment, not just the disabling effect of the injury or disease, must have prevented the person from continuing to undertake remunerative work.  A person who was not employed in remunerative work at the time of admission was not eligible.  The person did not need to demonstrate economic loss; it was sufficient that he or she was prevented from continuing to work.
  • Temporary incapacity allowance may have been paid concurrently with loss of earnings allowance but the amount of the two allowances, combined with the amount of disability pension normally payable to the person, could not exceed the amount of the special rate pension.


Time Limit

The time limit prescribed in VEA section 112(1) is “within 12 months of the commencement of the relevant period”, ie within 12 months of the commencement of the treatment of the incapacity.


Date of Introduction

1 November 1980


Original Purpose/Intent

To provide compensation to a veteran, member of the Forces, member of a Peacekeeping Force or Australian mariner who was unable to work due to being admitted to a hospital or other institution for treatment of a war-caused or defence-caused injury or disease.


Significant Changes in Criteria or Purpose Since Introduction


From 1 July 1994, the SWPA Act and Regulations were repealed and Australian mariners became eligible under the VEA on the same basis as veterans.


Temporary Incapacity Allowance was removed from the Veterans' Entitlements Act 1986 from 20 September 2011