32.1.1 AE = Able-To-Earn

The nature of 'AE' and its relationship to the amount of compensation payable, is discussed at length at 15.1 and 15.2.

In short, AE refers to the client's post-injury earning capacity and is basic to most calculations of the incapacity benefit. In contrast, NWE represents the pre-injury capacity.

While NWE is relatively static (apart from indexation) the AE varies widely depending upon the client's circumstances, including state of convalescence, progress with a vocational rehabilitation program, etc. In general, it is expected that a member's AE will improve over time with active case management, and with rising AE the formulae for calculating weekly entitlement then limits or ends payment, accordingly.

Delegates in fact will be involved in determining the client's AE at each and every period of incapacity for which the client seeks payment. Mostly, this involves requiring and examining a medical certificate of work-hour capacity and the progress of rehabilitation programs etc in order to determine the type or value of employment to which these hours may be applied.

Source URL: https://clik.dva.gov.au/military-compensation-srca-manuals-and-resources-library/incapacity-handbook/ch-32-ae-and-s194/321-clients-post-injury-ability-earn-ae-s192/3211-ae-able-earn