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6.7.3 Serving Part-time Reservists who were Injured on Full-Time Service and Whose last Full-Time Service was as a Permanent Forces Member

This section applies to a person who is:

  • a part-time Reservist;
  • incapacitated for service or work;
  • sustained an injury while on full–time service; and
  • the person's last full-time service was as a Permanent Forces member.

Normal earnings are calculated in accordance with section 104:

F/T ADF rate of pay including pay-related allowances     +     Remuneration amount

Where:

  • ADF pay is the amount the Reservist would receive if he or she was still a member of the Permanent Forces and not incapacitated for service;
  • The allowance component is the amount of compensable allowances he or she would receive if still a Permanent Forces member and not incapacitated, as advised by Defence.  The delegate needs to request advice from Defence (via DVA SAM) about the date on which each allowance would have ceased to be paid.
  • Remuneration amount is a loading included in normal earnings to compensate a member for the non-salary benefits of being a full-time serving member.  It is only included in normal earnings where normal earnings are calculated by reference to a full-time ADF rate of pay and the person is no longer a full-time serving member.

Note:

Where a former full-time member has their NE calculated by reference to their full-time ADF earnings then a Remuneration amount is included in NE to compensate for the non-salary benefits of being a full-time serving member.  MRCA Regulation 20 prescribes that this amount is indexed annually from 1 July, by reference to the percentage increase in the ADF Workplace Remuneration Arrangement at 31 December of the previous year.

Actual earnings are calculated in accordance with section 105:

actual Reserve ADF rate of pay     +     pay-related allowances     +     actual civilian earnings

where the actual civilian earnings are the greater of the amount the Reservist is deemed able to earn from suitable work (as per section 181), or the amount the Reservist actually earns from civilian work (including allowances other than expense allowances).

Example:

A Permanent Navy member discharges from the Permanent Forces and transfers to the Navy Reserves at the rank of Petty Officer.  While on full time service the member injured their right knee.  The member is now incapacitated for (defence) service (but able to do their sedentary civilian work) for a 4-week period from 3 September to 28 September 2007.

NE is:

f/t ADF rate of pay including pay-related allowances     +     remuneration amount

$1,114.75     +     $123.85     =     $1,238.60

His AE is

Reserve ADF rate of pay     +     pay-related allowances     +     actual civilian earnings

As he is incapacitated for service his Reserve ADF rate of pay is zero.  His actual civilian earnings are $786.50 per week.

NE     -     AE     =

$1,238.60     -     $786.50     =     $452.10 per week.

He is entitled to receive incapacity payments at the rate of $452.10 for the 4-week period of his incapacity for (defence) service.