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Intent Paper
Rehabilitation and Compensation - Military Rehabilitation and Compensation Act 2004 (MRCA)
- Financial and Legal Advice Compensation
External
Legislative Authority
Military Rehabilitation and Compensation Act 2004
Chapter 4 Part 2 Section 81
Chapter 4 Part 6 Section 205
Chapter 5 Part 2 Division 3 Sections 239 to 241
Stated Current Purpose/Intent
A tax-free payment in the nature of reimbursement to eligible persons who incur costs in seeking financial and legal advice connected with making permanent impairment, SRDP or compensation following death payment choices. This is intended to enable the eligible person to obtain professional financial and legal advice in order to decide which payment option best suits his or her individual circumstances. The maximum amount payable for any single payment choice is $2,464.80. The payment is based on a similar payment made under Defence Determination 2003/21 for severe injury or death related to service between 10 June 1997 and 1 July 2004.
Notes
- The above rate of payment is applicable as at 1 July 2014 and is indexed annually on 1 July.
Current Eligibility Criteria
To be eligible a person must have obtained financial advice in relation to making the choice between:
- where permanent impairment is assessed at or above 50 points, permanent impairment compensation paid as a lump sum, periodic payments or a combination;
- SRDP and incapacity payments;
- taking the compensation following death as a lump sum or as periodic payments (wholly dependent partners).
Date of Introduction
1 July 2004
Original Purpose/Intent
The original intention has not changed.
Significant Changes in Criteria or Purpose Since Introduction | |
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2013 | In response to the Review of Military Compensation Arrangements, from 1 July 2013, reimbursement for legal advice was made available to clients when making a choice between Special Rate Disability Pension and Permanent Impairment payments and Wholly Dependent Partner lump sum/periodic payments. The maximum amount for both financial and legal advice was increased to $2,400. |