6.6 Loss of Earnings Allowance

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VEA

What is Loss of Earnings Allowance?

Loss of Earnings Allowance compensates an eligible veteran, Member of the Forces, or Member of a Peacekeeping Force for salary, wages or earnings lost while receiving treatment for war-caused or defence-caused disabilities or while attending appointments required to investigate a claim for a disability compensation payment. It may also compensate the person's representative or attendant assisting in these matters.

When can Loss of Earnings Allowance be paid to a veteran or member?

Section 108(2)

Loss of Earnings Allowance can be paid where a veteran or member is undertaking/ has undertaken remunerative work and has lost salary, wages or earnings due to:

• receiving treatment for a war or defence-caused disability. This includes waiting for the supply or repair of an artificial limb or other surgical aid. Treatment may also include passive measures such as cessation of work, or a period of rest and recuperation where recommended as treatment by a medical practitioner,
• using part or all of employer provided sick leave for a war or defence-caused disability, and subsequently, in that year, having no benefit to cover an absence for another illness  That is, if the veteran has accessed sick leave for an accepted condition, he or she can then access Loss of Earnings Allowance for a period of time off work for a non-accepted condition, up to the time limit of sick leave accessed for accepted conditions in that year, or     
• commitments related to the investigation of a claim for, or an application for increased rate of, disability compensation payment.    
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  Disability Compensation Payment

  Chapter 4.1

   

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There is no requirement that a veteran or member exhaust his or her sick leave entitlement before accessing Loss of Earnings Allowance. A veteran or member may organise leave without pay and receive Loss of Earnings Allowance for the period he or she is accessing eligible treatment. The sick leave provisions in the Loss of Earnings Allowance provisions are to provide a “safety net” so veterans and members are not disadvantaged by the impacts of their accepted conditions.

Time limitation on claiming the Loss of Earnings Allowance

Per s112(2) of the Veterans Entitlements Act 1986 (VEA), an application for Loss of Earnings Allowance for a period in which a person has suffered a loss of salary or wages (or a loss of earnings on his or her own account) must be made within 12 months after the commencement of the period in which they suffered such a loss. 

Put simply, a person has 12 months from the date on which their loss of earnings commenced to claim loss of earnings allowance for that period of loss.

A claim for loss of earnings allowance not made within this time limt has no effect and must be rejected per s112(4) of the VEA. 

When can Loss of Earnings Allowance be paid to an attendant or representative?

Section 108(3)

A person other than a veteran or member can receive Loss of Earnings Allowance for a loss of salary, wages or earnings if he or she is:

• an attendant authorised by Commission to accompany a veteran for the purposes of assisting with travel for health or disability compensation payment-related reasons, or     
• section 108(4) - acting on behalf of a veteran or member, or a dependant of a veteran or member, in relation to a claim for disability compensation payment and as a result of the investigation of that claim, suffers a loss of salary, wages or earnings.    

When is Loss of Earnings Allowance not paid?

Section 108(7)

Loss of Earnings Allowance is not payable to veterans or members receiving a disability compensation payment at the [glossary:Special Rate:Def Special Rate (T&PI)] [glossary:(:][glossary:T&PI:Def Special Rate (T&PI)][glossary:):] as they are already receiving the maximum pension/allowance allowable under the VEA.    

How much is the Loss of Earnings Allowance?

Section 108(8)

The amount of Loss of Earnings Allowance payable is the lesser of the:

• difference between the Special Rate and the person's assessed rate of disability compensation payment (or the disability compensation payment that would be payable but for offsetting provisions), or
• amount of salary wages or earnings actually lost (including loadings or other allowances that would have been payable).    
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  Special Rate of pension

  Section 4.1.6

   

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When calculating the amount of the Loss of Earnings Allowance, please refer to the Commission Guidelines: CM 5514 – Calculation of Loss of Earnings Allowance and CM 7030 – Application of the Loss of Earnings Allowance Provisions.    

The latter Guideline provides further assistance for calculating Loss of Earnings Allowance in cases involving:

• self employed persons
• rest and recuperation
• sick leave provisions
• the amount of lost earnings.

See Also