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'Incapacity' for the purposes of the SRCA and former Commonwealth compensation Acts, means incapacity for work.
- It is also common usage that the word 'incapacity' also means 'incapacity payments'. Incapacity payments compensate injured employees for salary or other earned income lost due to the incapacitating effects of injury. The Act provides this compensation as regular payments calculated on a weekly basis but actually paid fortnightly through PMKeyS, the Defence payroll system.
- These payments are not made at a flat rate but are calculated on the basis of formulae contained in the Act, in relation to the client's former income, degree of incapacity, receipt of superannuation and other factors.