7.1 Legislation

Section 19 (2A) of the SRCA refers to a ‘maximum rate compensation week’ and section 129 of the MRCA refers to a ‘maximum rate week’.  

The definition of each is similar i.e. it is a week during which:

• the person's incapacity prevents the person from working either his or her normal weekly hours, or working at the level he or she worked before the incapacity; and

• the total number of hours in that week and all previous maximum rate weeks during which the person's incapacity has prevented him or her from so working does not exceed 45 times the person's normal weekly hours.

The amount of compensation that the Commonwealth is liable to pay for a maximum rate (compensation) week is: NE-AE

7.1.1 SRCA only – legislative changes

7.1.1.1 Safety, Rehabilitation and Compensation and Other Legislation Amendment Act 2001

The Safety, Rehabilitation and Compensation and Other Legislation Amendment Act 2001, which commenced on 1 April 2002, included amendments to section 19 that introduced new terminology and additional calculations for a part of a week and including an ‘adjustment percentage’.

The new provisions apply to all determinations made on or after 1 April 2002. The overall effect of the provisions was largely unchanged to the earlier legislation and policy.

7.1.1.2 Military Compensation Act - 7 April 1994

The Military Compensation Act 1994, which commenced on 7 April 1994, provided that clients continue to receive weekly compensation at 100% of normal weekly earnings for the first 45 weeks of incapacity, in respect of payments made under Ss20, 21 and 21A. This beneficial amendment applies only to clients who were discharged on or after 7 April 1994.

If a client was discharged before 7 April 1994, compensation paid under Ss20, 21 and 21A is reduced to 75% of NWE immediately upon discharge from the ADF, though the percentage of NWE may be higher if the person engages in suitable employment.

7.1.2 MRCA only – Section 10

The calculation of a person’s maximum compensation weeks is only applicable once the person has discharged from all forms of ADF service.  In some scenarios where a person may not be discharged, but is not actively serving i.e. standby Reservists or Cadets, section 10 provides for Defence to specify a date from which a person is taken to have ceased to be a member for the purposes of MRCA, even though they may not have been formally discharged. The 45 week calculation commences from this specified date.