Compensation Following Death for Other Dependants of a Deceased Member

Legislative Authority

Military Rehabilitation and Compensation Act 2004
Chapter 5 Part 4 Sections 262 and 263

Stated Current Purpose/Intent

To compensate family members (other than wholly dependent partners and eligible young persons) who were wholly or partly dependent on a member or former member, whose service on or after 1 July 2004 relates to his or her death.  The entitlement is a tax-free payment.

Current Eligibility Criteria

Dependants as defined in section 15 of the MRCA (other than wholly dependent partners and eligible young person dependants) who were wholly or partly dependent on a deceased member for economic support immediately before his or her death are eligible for compensation where:

• liability for the member's death has been accepted; or
• the deceased member satisfied the criteria for receiving a SRDP during some period of their life; or
• the deceased member's permanent impairment immediately before their death was assessed at 80 or more points.

Notes

1. Those who may qualify include a member's father, mother, step-father, step-mother, grandfather, grandmother, son, daughter, step-son, step-daughter, grandson, grand-daughter, brother, sister, half-brother or half-sister.  Additionally the father, mother, step-father, step-mother, son, daughter, step-son or step-daughter of the member's partner may be regarded as a dependant of the member. Others who may qualify are those for whom the member is regarded as the parent and those who are regarded as the parent of the member.
2. A tax-free lump sum of up to $264,620.66 is available for distribution amongst all wholly or partly dependent other dependants with a maximum of $83,564.41 per person.
3. The above rates of payment are applicable as at 1 July 2014 and are indexed annually on 1 July.
4. The amount payable to each individual is calculated having regard to:

• the financial losses suffered by each dependant as a consequence of the member's death;
• the degree of their dependency on the member; and
• the length of time the dependant would have remained dependent on the member but for the members' death.

Date of Introduction

1 July 2004

Original Purpose/Intent

The entitlement is based on the payment under SRCA made in respect of other dependants.

The original intention has not changed.

Significant Changes in Criteria or Purpose Since Introduction

Nil