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6.7 Calculating the Rate of Incapacity Payments for Serving Members

Last amended: 19 June 2014

Section 342 requires the delegate to determine the date of onset of incapacity for serving members.  This is relevant in that it identifies the 2-week example period for determining the civilian component of NE for part-time Reservists (section 99) or Reservists injured during a period of CFTS (section 114A).

The amount of compensation that is payable for serving members is calculated by the formula:

normal earnings (NE)     -     actual earnings(AE)

Normal and actual earnings are defined differently according to the circumstances of the member.  There are four main scenarios for serving members eligible to receive incapacity payments, however there are only three methods of calculating NE and these include:

  • f/t ADF pay & allowances;
  • Reserve pay & allowances + civilian pay & allowances; and
  • pre-CFTS civilian earnings + Reserve pay & allowances.

The different methods of calculating NE are outlined in the table below.

Type of member:

Normal earnings:

Actual earnings:

6.7.1  Permanent Forces members or continuous full-time Reservists (CFTS)

Section 91

F/T ADF pay & allowances

Section 92

Actual ADF pay & allowances

6.7.2  Part-time Reservists injured during part-time Reserve service

Sections 95 – 100

Reserve pay & allowances + civilian pay & allowances

Section 101

Actual Reserve pay & allowances + Actual civilian pay & allowances

6.7.3  Part-time Reservists who were injured during a period of full-time service, and whose last full-time service was as a Permanent Forces member.

Section 104

F/T ADF pay & allowances + remuneration amount

Section 105

Actual Reserve pay & allowances + Actual civilian pay & allowances

6.7.4  Part-time Reservists who were injured during a period of full-time service, and whose last full-time service was as a CFTS Reservists.

Sections 108 – 114

F/T ADF pay & allowances + remuneration amount

Or

Pre-CFTS civilian earnings + Reserve pay & allowances

Section 115

Actual Reserve pay & allowances + Actual civilian pay & allowances