Chapter 23 of GARP M
Chapter 23 of GARP M provides the methodology for converting medical impairment and lifestyle effects to compensation factors, which are then multiplied by the maximum weekly permanent impairment amount under the MRCA, to find the amount of permanent impairment compensation payable to a veteran.
A different methodology in Chapter 23 applies when veterans have conditions arising from a combination of both peacetime and warlike/non-warlike service, which frequently arises in transitional cases, when veterans have conditions accepted under the MRCA as well as under the VEA/DRCA.
In determining the relevant compensation factor in these situations, the ‘Combined Ratings’ formula in Chapter 23 of GARP M is applied. This formula is commonly referred to as the weighted compensation factor.
The service type for VEA and DRCA conditions
When applying the weighted compensation factor formula in Chapter 23 of GARP M:
- conditions accepted under the VEA should be treated as if they relate to warlike/non-warlike service, and
- conditions accepted under the DRCA should be treated as if they relate to peacetime service, or
where a condition is accepted under both the VEA and the DRCA, treat the condition as if it were related to warlike/non-warlike service.
Multiple conditions arising out of the service type/s
For transitional veterans with service-related conditions arising from different service types, the amount of MRCA PI compensation payable is a weighted average between:
- the amount payable if all conditions arose from warlike/non-warlike service (‘A’ in the formula), and
- the amount payable if all conditions arose from peacetime service (‘B’ in the formula).
Where there are multiple impairment ratings at ‘A’ and ‘B’, they are arithmetically added. The following example illustrates this.
Example
Warrant Officer Smith has 4 accepted service-related conditions:
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When applying the formula in Chapter 23:
The total impairment at (A) is 30 (20+10 impairment points).
The total impairment at (B) is 20 (10+10 impairment points).
The lifestyle rating (L) from these conditions is 4.
The combined impairment rating (C) is 42.
Under Table 23.1, the compensation factor that would be applied if all 4 conditions (i.e. using 42 impairment points at C above) had resulted from warlike service would be 0.461.
Under Table 23.1, the compensation factor that would be applied if all 4 conditions (i.e. using 42 impairment points at C above) had resulted from peacetime service would be 0.258.
The weighted average compensation factor (CF final) is worked out using the formula, as follows:
(30 * 0.461 + 20 * 0.258) / (30 + 20) = 0.380
The maximum compensation payable (as at the date of determination) is multiplied by the weighted compensation factor to work out the person’s entitlement of periodic payment (i.e. the MRCA PI weekly amount).
For more information about the maximum compensation payable under the MRCA, please visit the DVA website (current payment rates) at: www.dva.gov.au/get-support/financial-support/payment-rates/compensation-payment-rates-mrca#permanent-impairment.
For an example calculation using the 7-steps in Chapter 25 of GARP M, please see Chapter 12.7.2.8 of the MRCA Transitional Provisions Policy Manual.
Apportionment
In bringing across VEA and DRCA conditions, it may be necessary to apply apportionment under Chapter 20 of GARP where the client has two or more conditions accepted under two different Acts which affect the same body system. As per a single Act situation, apportionment is used to establish the separate contribution each condition makes to the overall functional impairment. It may be required in some cases to determine the appropriate impairment rating and the relevant compensation factor to be applied.
History of policy changes
Historically, it has not been explicit in Chapter 23 (or Chapter 25) of GARP M:
that impairment from service-related conditions under the VEA and the DRCA are to be treated a particular way when determining the weighted compensation factor for the purpose of applying Chapter 25 and working out the amount of MRCA PI compensation payable,
how multiple conditions arising at ‘A’ and/or ‘B’ in the formula should be treated.
Instead, policy guidelines provided delegates with these instructions.
The Guide to Determining Impairment and Compensation Amendment Instrument 2025 (the GARP M amending instrument) commenced from 3 March 2025 and clarified and reinforced the existing policy guidelines.
The GARP M amending instrument did not change the process for how Chapter 23 has been applied to calculate weighted compensation factors.