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6.8.6 Former Part-time Reservists who were Injured During a Period of Full-time Service and Whose Last Full-time Service was as a CFTS Reservist
Normal earnings for a person:
- who was a part-time Reservist at time of discharge; and
- whose service injury or disease occurred while a member of the Permanent Forces or on CFTS; and
- whose last full-time service was as a CFTS Reservist.
are a choice of his or her full-time ADF earnings or pre-CFTS earnings.
ADF earnings are:
f/t ADF pay including allowances + remuneration amount
Pre-CFTS earnings are the sum of pre-CFTS pay and Reserve pay. Pre-CFTS pay, for a person who was working before beginning the last period of CFTS is:
pre-CFTS civilian weekly hours worked x pre-CFTS civilian rate of pay + allowances including overtime
For pre-CFTS pay the example period is normally the last two-week period the person was engaged in work ending immediately before the last period of CFTS. If the example period does not fairly represent the person's pay the delegate may determine a different two-week period or a period of different length.
If the person was not working, pre-CFTS pay is nil.
Reserve pay is:
Reserve days x Reserve daily rate of pay plus pay-related allowances
with an example period of the one year during which the person was a part-time Reservist immediately before the last period of CFTS, or such a period as the delegate determines is reasonable. Reserve and allowance days are averages over the example period whereas pay-related allowances are those that were being paid immediately before the period of CFTS and pay is what the person would receive as a part-time Reservist if not incapacitated for service.
The delegate may determine example periods as times before the person last ceased to be a member of the ADF, rather than a period before beginning the last period of CFTS.
The Reserve pay component has the same tax status as the Reserve pay.
A former member injured their right ankle during a period of CFTS as a Sergeant on 16 November 2005. They completed CFTS and returned to the part-time Reserves and elected their own discharge on 1 December 2006. The former member is now incapacitated for 1 week period from 4 – 8 February 2008 while undergoing surgery for the accepted condition.
The former member has the choice of NE being calculated at their full-time ADF rate of pay including the remuneration amount or, pre-CFTS civilian earnings plus Reserve earnings.
If the person chooses their full-time ADF rate of pay including the remuneration amount his NE is:
f/t ADF rate of pay including pay-related allowances + remuneration amount
$1,114.75 + $123.85 = $1,238.60
If the former member chooses pre-CFTS civilian earnings plus Reserve earnings then NE is:
pre-CFTS pay + Reserve pay
Pre-CFTS pay are civilian earnings in the 2-week period prior to the period of CFTS service, indexed according to the Wage Price Index. Reserve pay is the average of weekly Reserve earnings during the 12 months prior to the period of CFTS indexed in accordance with ADF pay increases.
In this example pre-CFTS pay was $1200.00 per week as a software engineer working 35 hours per week and this is the civilian component of NE.
During the 12 months prior to the period of CFTS, he completed 58 days of Reserve service. This included a 14-day camp during which the former member also received Field Allowance equivalent to $26.94 per day. The daily rate of Reserve pay is $110.69 per day.
According to the formula:
(58 x $110.69) + (14 x $26.94) =
$6,420.02 + $377.16 = $6,797.18
This amount needs to multiplied by 6/313 to convert the annual amount to a weekly amount for NE purposes.
$6,797.18 x 6/313 = $130.30 per week
NE for this option would be:
$1,200.00 + $130.30 = $1,330.30
Accordingly the former member chooses in writing to have their NE based on pre-CFTS pay and allowances plus Reserve pay and allowances.
The former member receives incapacity payments of $1,330.30 for the week they are incapacitated for service and work.
As the former member has chosen the option that includes a Reserve component of NE, that part of the payment ($130.30) attributable to Reserve income is tax-free.
For the purposes of calculating compensation after the maximum rate weeks it will be necessary to determine NWH. The calculation of NWH is linked to the choice the person makes in relation to determining NE.
In this instance NWH is calculated according to the formula in section 174 as:
pre-CFTS civilian weekly hours + Reserve hours
35 + (6 x 58 x 6/313) =
35 + 6.67 hours =