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The Work Capacity Test - ement to Special Rate or Intermediate Rate pension. Section19(5C)(a) requires that assessm


Special Rate - 24(1)(b) and 28

Intermediate Rate – 23(1)(b) and 28

  1. Under this test, the veteran's incapacity from accepted conditions must, of itself alone:
  • for Special Rate, render the veteran permanently incapable of undertaking their normal remunerative work or any other type of remunerative work they might reasonably undertake aggregating more than 8 hours per week; and
  • for Intermediate Rate, render the veteran incapable of undertaking their normal remunerative work or any other type of remunerative work that they might reasonably undertake for 50% or more of the full-time hours ordinarily worked or 20 hours per week.

  1. For the veteran to be considered 'permanently incapacitated' as is required for Special Rate, it means likely to continue indefinitely. The best material to assist in determination of permanency is a report from the veteran's general practitioner, complemented by a report from an occupational physician or similar professional.

  1. If the evidence indicates that permanency is at issue, the delegate should consider if there is evidence to indicate that:

(i)the veteran can reasonably update past skills or undertake a program of retraining within a reasonable time; or

(ii)the veteran's condition would improve following a program of medical rehabilitation or course of treatment.

  1. If these circumstances apply, the delegate should assess whether the veteran meets the requirements for temporary payment at the Special Rate as required by s 24(1)(d). Details on these requirements can be found in Commission Guideline CM5574 and CM5569 of 2004.

  1. The threshold for the Special Rate requires that an eligible veteran is 'precluded from earning other than a negligible percentage of a living wage'; and for Intermediate Rate, the threshold reflects the intention to provide for veterans whose capacity to work (and earn) is greater than negligible.

  1. Section 28 provides the basis for assessing whether or not a veteran has the capacity to undertake remunerative work. The delegate must make the determination based on sound medical evidence.

  1. The information in Attachment B to these Guidelines discusses the terms contained in the Work Capacity test in more detail.