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6.8.3 Former Part-time Reservists who were Engaged in Civilian Work Immediately before Discharging from the ADF

This applies where a person incapacitated for work was:

  • a part-time Reservist immediately before leaving the Defence Force;
  • incapacitated as a result of an injury or disease that occurred while a part-time Reservist; and
  • engaged in civilian employment immediately before leaving the Defence Force.

Normal earnings are the sum of an ADF component and a civilian component.

The ADF component is:

Reserve days     x     Reserve daily rate of pay plus pay-related allowances

Note:

The ADF component of NE is not assessable for income for tax purposes.

The civilian component is defined as:

where civilian daily earnings are defined as:

+

(where overtime is applicable).

The example period for the ADF component of NE is the 12-month period prior to discharge.  The example period for the civilian component is the last 2-week period during which the person was engaged in civilian work immediately prior to discharge, or any period of a different length that is considered reasonable if that 2-week does not fairly represent their civilian earnings.

Normal weekly hours are defined as:

where defence days is the average number of days per week in the example period paid as a part-time Reservist and defence hours is the average number of hours per day during the example period the person was paid as a part-time Reservist.

Members of the Reserve Forces on Reserve service, apart from those officers who hold special appointments, are paid as follows:

  • for a period of not less than six hours – one day's pay
  • for a period of less than six hours but not less than three hours – one-half day's pay
  • for a period of less than three hours but not less than two hours – one-third day's pay, and
  • for a period of not less than one hour but less than two hours – one-sixth day's pay.

Accordingly a day of Reserve duty generally corresponds to 6 hours work, and similarly a half day's duty (or Tuesday evening parade) corresponds to 3 hours work.

NWH for Reserve service is calculated using the following formula:

Reserve NWH = (6 hrs     x     Reserve days paraded during the 12-month example period)     x     6/313

Example.

A former member was medically discharged from the Reserves at the end of 2004.  In August 2004 he sustained a left knee injury.  His civilian employment was as an APS Level 3 in Centrelink.

NWH for a member who attended a total of 70 days Reserve service during the example period:

(6     x     70)     x     6/313     =

420     x     6/313

Reserve NWH=8.05 hours

If civilian NWH=37.5 hours

TOTAL NWH=45.55 hours

The former Reservist has had several periods of incapacity payments following complications after surgery.  His maximum rate weeks expired on 16 February 2008, but he remains incapacitated for service.  He is able to work in his APS employment at Centrelink.

According to the formula:

Reserve days     x     Reserve daily rate of pay plus pay-related allowances

(70     x     $87.58)     =

$6,130.60

This amount needs to multiplied by 6/313 to convert the annual amount to a weekly amount for NE purposes.

$6,130.60     x     6/313     =     $117.52 per week.

His civilian NE as an APS 3 in Centrelink is:

$962.86 per week.

NE is therefore:

$962.86     +     $117.52     =     $1080.38.

He is working 37.5 hours per week compared to his NWH of 45.55. hours.  That is, 82% of NWH.  Therefore his adjustment percentage (as per the table at 6.4.1.3) is:

95%

His entitlement to incapacity payments is:

(95%     x     $1080.38)     -     AE     =

$1,026.36     -     $962.86     =     $63.50

Note

Where a Reservist has lost the civilian work they were engaged in at the time of the injury and therefore was not in civilian employment at the time of discharge, the delegate should determine that the example period is the 2-week period when the person was last engaged in civilian work.