Policy

When a previous MRCA PI lump sum has been paid, the additional amount of PI payable is calculated by converting the lump sum paid to an equivalent weekly amount and subtracting this from the total weekly amount of PI payable at Step 4 or 7 of GARP M, whichever is applicable. When converting the lump sum to an equivalent weekly amount, the delegate is essentially finding the indexed weekly amount the veteran would be receiving now, if they had not converted their payment to a lump sum.

In order to work out the net DCP for Step 6, for any VEA conditions that were accepted conditions on the date the person claimed MRCA PI:

(a) on VIEW determine the client’s General Rate DCP % (or above General Rate) entitlement on the date of the MRCA PI claim (see under ‘Level’ heading in VIEW/Payabilities/Pensions Recurring Payability History/Payabilities);

(b) using the General Rate DCP % (or above General Rate) determined at (a), apply the statutory rate payable as at Date of PI determination (Step 2).

Reparation Payments made by the Defence Abuse Response Taskforce (DART) under the Defence Abuse Reparation Scheme are not compensation payments. Receipt of a Reparation Payment does not require the recipient to waive any legal rights and does not affect her or his right to take other action or access other entitlements. Reparation Payments therefore have no impact on liability or compensation under the MRCA.

Any payments received via settlement of private insurance matters will not affect a client’s entitlement to either permanent impairment or incapacity compensation under the MRCA and there is no requirement to “offset” these payments against any MRCA benefits (as occurs with payments for common law damages).

The Defence Abuse Response Taskforce and the Defence Abuse Reparation Scheme

Defence Abuse Response Taskforce (DART)

The Defence Abuse Response Taskforce (DART) was established as part of the Australian Government's response to the DLA Piper Review

4.3.1 Interim Payments

Section 25 of the DRCA authorises an interim payment of compensation for permanent impairment where:

Guide to the Assessment of the Degree of Permanent Impairment 2023 (DRCA PI Guide)

The DRCA PI Guide is a document prepared by the MRCC, and approved by the Minister, in accordance with section 28 of the DRCA. Its purpose is to provide an objective basis for the assessment of the amount of lump-sum compensation for permanent impairment and non-economic loss payable to an injured employees covered under the DRCA (i.e. defence personnel).

Key Points