Compensation Lump Sum for Eligible Young Persons Following Death

Legislative Authority

Military Rehabilitation and Compensation Act 2004

Stated Current Purpose/Intent

To compensate eligible young persons who were dependent on a member or former member whose service on or after 1 July 2004 caused or contributed to his or her death. The entitlement is a tax-free payment.

Current Eligibility Criteria

An eligible young person who was wholly or partly dependent on a member of former member immediately before that person's death is entitled to a tax-free lump sum compensation payment (currently $83,564.41) 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. The above rate of payment is applicable as at 1 July 2014 and is indexed annually on 1 July.
2. Eligible young persons who are dependants of a member are taken to be wholly dependent on the member if they normally lived with the member at the time of the member's death. Allowance is made for temporary absences or where the member and the eligible young person are living apart due to illness. A temporary absence may include one for educational purposes. A son or daughter of the member who was born after the member's death may be regarded as an eligible young person who was wholly dependent on the member.
3. A dependant of a member who is an eligible young person is someone who:

• is under 16; or
• between 16 and 25, undertaking full-time education and not ordinarily engaged in full-time work on his or her own account; and
• is a dependant of the member – that is, is one of the people listed in the definition of dependant (except a partner) – ie. a son, daughter, step-son, step-daughter, grandson, grand-daughter, brother, sister, half-brother or half-sister); and
• was wholly or partly dependent on the member for economic support immediately before the member's death or would have been but for the incapacity of the member from an injury or disease.

Date of Introduction

1 July 2004

Original Purpose/Intent

The entitlement is based on the payment under SRCA made in respect of dependent children of members whose death on or after 10 June 1997 is accepted as related to service before 1 July 2004.

The original intention has not changed.

Significant Changes in Criteria or Purpose Since Introduction

Nil