Policy

Last amended: 19 June 2014

Weekly compensation is paid to clients in respect to lost or decreased income i.e. it involves the clients livelihood. As such, incapacity payments may represent vital support to the client who might otherwise suffer considerable financial distress. On that basis, weekly payments in respect to a current period of incapacity should be regarded as urgent and second only to death payments in priority.

In some cases a client may decide, after onset of incapacity, to move residence to a small country town, a coastal holiday shack or remote rural area. The significance of this relocation, is that a vocational rehabilitation program may be difficult or impossible to implement in such places. Furthermore, the job market is likely to be small, or oriented only towards able-bodied pursuits (i.e. farm labouring).

Section 23(1) provides that weekly incapacity compensation is not payable under Ss19, 20, 21, 21A or 22 to a person who has reached [glossary:Age Pension age:469]. However other forms of compensation (e.g. medical expenses, permanent impairment, household care) still continue to be payable after [glossary:Age Pension age:469].

Note that former employees may continue to receive incapacity compensation after [glossary:Age Pension age:469], at a reduced rate calculated under S134.

Content contained within Chapter 37 (37.1 to 37.12) has been removed as information has been replaced by content in Chapter 6.6 of the MRCA Policy Manual - Effect of Commonwealth superannuation on incapacity payments.

The policy in relation to allowances has been revised in line with the outcome of Comcare v Simmons [2014] FCAFC4 (Simmons). Prior to the date of this decision (13 February 2014), the inclusion of allowances in calculations of NWE was determined in accordance with the policy for calculating Normal Earnings under the MRCA.  The revised policy is based on the Jurisdictional Policy Advice No. 2015/01.

The policy on incapacity payments under the Safety, Rehabilitation and Compensation Act 1988 (SRCA) is now contained within the ‘MRCA Info” Library under the “Incapacity Payments Policy” tab. Though contained in the MRCA Info Library the policy information relates to incapacity payments under both the SRCA and MRCA.

Please go to the Incapacity Payments Policy Manual http://clik.dva.gov.au/military-compensation-reference-library/incapacity-policy-manual

DRCA original determinations made on or after 21 April 2025 must be appealed directly to the Veterans’ Review Board (VRB) within 12 months. Subsequent determinations by the VRB can be appealed to the Administrative Review Tribunal. Claimants cannot request a reconsideration by the Commission for determinations made on or after 21 April 2025, however the Commission continues to have the discretion to initiate a reconsideration of own motion.

DRCA original determinations made on or after 21 April 2025 must be appealed directly to the Veterans’ Review Board (VRB) within 12 months. Subsequent determinations by the VRB can be appealed to the Administrative Review Tribunal. Claimants cannot request a reconsideration by the Commission for determinations made on or after 21 April 2025, however the Commission continues to have the discretion to initiate a reconsideration of own motion.

DRCA original determinations made on or after 21 April 2025 must be appealed directly to the Veterans’ Review Board (VRB) within 12 months. Subsequent determinations by the VRB can be appealed to the Administrative Review Tribunal. Claimants cannot request a reconsideration by the Commission for determinations made on or after 21 April 2025, however the Commission continues to have the discretion to initiate a reconsideration of own motion.

DRCA original determinations made on or after 21 April 2025 must be appealed directly to the Veterans’ Review Board (VRB) within 12 months. Subsequent determinations by the VRB can be appealed to the Administrative Review Tribunal. Claimants cannot request a reconsideration by the Commission for determinations made on or after 21 April 2025, however the Commission continues to have the discretion to initiate a reconsideration of own motion.