DEFENCE COMPENSATION ADVICE - NO. 84
">Military Compensation Scheme - Safety, Rehabilitation and Compensation Act 1988
">APPLICATION OF SECTIONS 20, 21 AND 21A OF THE SAFETY REHABILITATION AND COMPENSATION ACT 1988 (SRC ACT) AS AMENDED BY THE MILITARY COMPENSATION ACT 1994 (MCA)
">1. The purpose of this DCA is to provide delegates with clarification on the application of sections 20, 21 and 21A of the SRC Act as amended by the MCA.
2. The MCA commenced operation on 7 April 1994 and, amongst other things, amends sections 20, 21 and 21A of the SRC Act enabling payment of compensation to members of the Australian Defence Force at a rate of 100% of normal weekly earnings for the first 45 weeks of incapacity for work, less any government funded superannuation benefit, regardless of whether the member continues to serve or is discharged. Prior to 7 April 1994, the rate of compensation payable to members reduced to 75% *of normal weekly earnings immediately upon discharge from the ADF and receipt by the member of a government funded superannuation benefit.
3. Although the MCA itself does not expressly state the date from which the amendment to sections 20, 21 and 21A are to apply, those amendments are to be interpreted as applying to members who retire, either voluntarily or compulsorily, from the ADF on or after 7 April 1994, irrespective of the date of injury.
4. In other words, the rate of compensation for a member injured in 1990 and discharged medically unfit for further service on 30 June 1994, ie. after the commencement of the MCA on 7 April 1994, will be based on 100% of normal weekly earnings for 45 weeks of incapacity, less any government funded superannuation benefit, from 1 July 1994 onwards. Assuming the incapacity is for a continuous period, the member's rate of compensation will remain at 100% of normal weekly earnings until 11 May 1995 and will reduce to 75%* of normal weekly earnings on and from 12 May 1995. Delegates are reminded that any period of incapacity relating to the injury occurring during the member's service should be deducted from the 45 week period.
5. The amendment to sections 20, 21 and 21A does not apply to members injured and discharged before 7 April 1994 irrespective of the fact that the period of incapacity may extend beyond 7 April 1994. Weekly compensation in such cases should be based on 75%* of normal weekly earnings less any government funded superannuation benefit.
6. As indicated above, the applicability or otherwise of the amended sections 20, 21 and 21A depends on the date of retirement rather than the date of injury. However, delegates should note that the date of retirement is not the deciding factor when considering whether an injury sustained during operational or war-like service may be "covered" under the SRC Act (as amended by the MCA). The issue to consider here is the date on which the operation or war-like service was rendered. For example, an injury sustained during operational service on or after 7 April 1994 may be accepted under the SRC Act. However, an injury sustained during operational service before 7 April 1994 receives compensation cover under the Veterans' Entitlements Act 1986, only.
7. Any enquiries concerning the foregoing should be directed to Mr Paul Reis on (06) 2668637 or via CCMail.
GWEN WHARTON
Director,
Military Compensation
and Rehabilitation Section
February 1995
*NOTE: The rate of compensation applicable where the employee is not
employed during a particular week in suitable employment is 75% of
normal weekly earnings.
Where the employee is employed in suitable employment, the rate of
compensation payable will be between 80% and 100% depending on
the number of hours worked in the particular week.
Related Advices:
1. DCA No. 83 - "Declaration of peacekeeping, hazardous, operational
service under the Veterans' Entitlements Act 1986"