DCA 70 - NORMAL WEEKLY EARNINGS: INCLUSION OF SERVICE ALLOWANCE

DEFENCE COMPENSATION ADVICE - NO. 70

Safety Rehabilitation and Compensation Act 1988

NORMAL WEEKLY EARNINGS: INCLUSION OF SERVICE ALLOWANCE

1.  The purpose of this DCA is to clarify the appropriateness, or otherwise, of including a member's Defence Force Service Allowance in the calculation of normal weekly earnings (NWE) under section 8 of the SRC Act.

2.  The ADF salary structure allows for payment of Service Allowance, in addition to the basic salary, to members holding certain ranks. According to Defence Determination 0201 covering Service Allowance, members holding the rank of Lieutenant Colonel, Wing Commander or Commander, and above, are not eligible to receive Service Allowance. These members receive a "consolidated salary (only) which gives full recognition to the responsibilities within the rank...".

3.  Service Allowance has not been payable for the rank of LTCOL, WGCDR or CMDR and above, since 5 November 1981. A copy of advice from Pay and Conditions Branch, HQADF, confirming this, is attached.

4.  "NWE", is intended to be a fair representation of what an employee could reasonably have expected to earn but for the injury. Because Service Allowance is not payable for the ranks mentioned in paragraph 2 above, it must not be included in the NWE when calculating an amount of weekly compensation payable to members holding those ranks on and from 5 November 1981.

5.  Service Allowance remains payable for the rank of Major, Squadron Leader or Lieutenant Commander and below, and should be included in the NWE for those cases.

6.  Please ensure that all Military Compensation and Rehabilitation staff are made aware of the above and that all relevant cases reflect the above advice.

7.  Further information concerning calculation of NWE can be obtained from Comcare's Legislation Information Paper No.4. Alternatively, contact Paul Reis on (06) 2668637, please.

Glen Tye

Assistant Director

Compensation and Rehabilitation

May 1994

Department   of   Defence

MINUTE

DM89-27677

ACT Claims

DC, Sydney

DC, Melbourne

DC, Brisbane

DC, Perth

DC, Adelaide

DC, Hobart

DAO, Townsville

Attention: Manager Compensation & Rehabilitation

Safety Rehabilitation and Compensation Act 1988 - Defence Compensation Advice No.70

1.  Attached is a copy of DCA No.70 which deals with the appropriateness, or otherwise, of including Service Allowance in the calculation of normal weekly earnings under section 8 of the SRC Act.

2.  Please ensure that all action officers are provided with a copy of DCA No.70.

3.  Any Offices with an inordinate number of cases in which Service Allowance has been incorrectly included in the NWE, resulting in an overpayment of weekly compensation benefits, are requested to contact me to discuss means of resolving potentially problematic cases.

Paul Reis

Executive Officer

Compensation & Rehabilitation

May 1994