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12.7 Transitional Provisions - Permanent Impairment

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Last amended 
8 December 2014

Last amended: 8 December 2014

 

Section 13 of the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004 (CTPA) applies where a person with a condition accepted under the VEA or the SRCA lodges a claim for permanent impairment compensation under section 319 of the MRCA.  Chapter 25 of the Guide to Determining Impairment and Compensation (known as GARP M) contains the method for calculating the amount of PI compensation payable under the MRCA in those cases where an injury or disease has been accepted under the VEA and/or the SRCA before a PI claim is made under the MRCA (see 2.1.8 for an explanation of what constitutes a MRCA PI claim) .

Under section 13 of the CTPA and Chapter 25 of GARP M, the impairment points constituted by the VEA and/or SRCA condition/s as at the MRCA determination date must be counted towards the person’s total impairment points under the MRCA. However, only those impairments from conditions that were accepted under the VEA and/or SRCA as at the date of the MRCA PI claim currently being determined (including requests for reassessment based on deterioration, worsening or aggravation of existing conditions) is lodged under the MRCA can be counted towards this total. (See example below)

One purpose of determining the impairment points from the VEA and/or SRCA condition is to establish whether the person meets the criteria for certain benefits; for example, entitlement to a DVA Health Card - For All Conditions (Gold card) or whether the person has sufficient impairment points to be offered a choice between incapacity payments and the Special Rate Disability Pension (SRDP) under section 199 of the MRCA.  See Chapter 12.7.2 for more information on this.

Chapter 25 of GARP M requires that the total impairment rating from the VEA and/or SRCA condition/s referred to above and the MRCA condition as well as the lifestyle effects of these conditions, are to be used to calculate a gross MRCA periodic payment in $/week.  The gross amount is then to be reduced by the amount that would be payable under the MRCA for the VEA and/or SRCA condition/s.  The remainder is the net notional MRCA periodic payment payable under the MRCA.

 

Example
  • 20/11/09 - Conditions A and D claimed under the VEA.
  • 1/1/10 - Condition A accepted as a non-warlike condition under the VEA and DP backdated to 20/09/09
  • 30/1/10 – Liability for condition C claimed under the SRCA.
  • 2/2/10 - Claim for PI for Condition B lodged under the MRCA.
  • 5/2/10 – Liability for condition C accepted under the SRCA
  • 8/2/10 – Condition D accepted as a warlike condition under the VEA and DP backdated to 20/09/09

 

Condition A is included when calculating the total impairment rating because the determination to accept condition A under the VEA was made before the PI claim date.

Although liability for condition C was claimed under the SRCA before the PI claim date the determination to accept liability was not made until after the PI claim date.  Therefore condition C is not included in the whole person impairment calculation.

Similarly, Condition D is not included: because although the condition was claimed under the VEA before the MRCA PI claim date it was not accepted under the VEA until after the MRCA PI claim date