Military Compensation Scheme
Safety Rehabilitation and Compensation Act 1988 (SRC Act)
SUBJECT
- INDEXATION OF NWE UNDER SUB-SECTION 8(9B) FROM 1 JULY 2005
- STATUTORY COMPENSATION RATES EFFECTIVE FROM AND INCLUDING 1 JULY 2005
- SUB-SECTION 16(6) RATE FOR TRAVELLING TO OBTAIN MEDICAL TREATMENT
Purpose
The purpose of the MCRI is to advise Military Compensation and Rehabilitation Service (MCRS) Delegates of changes in the rate to be applied to ex employees' NWE and in statutory benefit rates of compensation payable under the SRC Act. Please note that the increased compensation rate will only be effective from and including 1 July 2005.
For convenience and to prevent confusion, the other rates of compensation which were effective from 1 July 2004 have also been included in this further amendment.
Background
Normal Weekly Earnings (NWE)
Sub-section 8(9B) of the SRC Act authorises determining authorities such as the MCRS to increase NWE for ex-employees of the Commonwealth (including members and former members of the Australian Defence Force - ADF) by reference to a prescribed index. Regulation 5 of the Safety, Rehabilitation and Compensation Regulations 2002 prescribes the Australian Bureau of Statistics (ABS) Wage Cost Index (WCI — total hourly rates of pay - excluding bonuses/Australia/all industries/all occupations) for this purpose.
On 1 July each year determining authorities will increase NWE for ex employees based on any increase in the WCI for the year ending in the previous December quarter. This MCRI should be read in conjunction with MCRI 20 although further amendments to the MCRI 20 WCI rates will be contained in MCRI 2.
WCI
The ABS issued its “Labour Price Index” (the WCI for SRC Act purposes) for the year ending
31 December 2004 on 23 February 2005. The percentage increase in the index for the period was 3.5 per cent. The MCRS should increase NWE for ex members of the ADF who are affected by this provision by this percentage effective from 1 July 2005.
Statutory Rates
Section 13 of the Act provides for indexation to be applied to relevant amounts specified in subsection 17(3), 17(4), 17(5), 18(2), 19(7), 19(8), 19(9), 24(9), 27(2), 29(1), 29(3), 30(1) and 137(1) on 1 July each year. The indexation is based on variations in the Consumer Price Index (CPI) for the previous December quarter. The relevant change for the December quarter 2004 as published by the Australian Bureau of Statistics, reflected an increase of 2.6 per cent in the All Groups Consumer Price Index.
NOTE — The relevant CPI percentage increase is different to, and should not be confused with, the ABS Wage Cost Index (WCI) referred to above. The two will often not be the same.
STATUTORY RATES OF COMPENSATION
|
Sub-section |
Benefit |
1 July 2004 Rate $ |
1 July 2005 Rate $ |
|
17(3) |
Death lump sum |
201,025.04 |
206,251.69 |
|
17(4) |
Death lump sum |
201,025.04 |
206,251.69 |
|
17(5) |
Death dependant child |
66.99 |
68.73 |
|
18(2) |
Funeral expenses |
4,640.43 |
4,761.08 |
|
19(7) |
Incapacity - employee |
338.38 |
347.18 |
|
19(8) |
Incapacity - prescribed person |
83.78 |
85.96 |
|
19(9) |
Incapacity - dependant child |
41.87 |
42.76 |
|
24(9) |
Permanent impairment |
134,016.69 |
137,501.12 |
|
27(2) |
Non-economic loss - impairment component |
25,128.15 |
25,781.48 |
|
- non-economic loss |
25,128.15 |
25,781.48 |
|
|
29(1) |
Household services |
335.03 |
343.74 |
|
29(3) |
Attendant care services |
335.03 |
343.74 |
|
30(1) |
Redemption “ceiling” |
83.78 |
85.96 |
|
137(1) |
Redemption “ceiling” |
83.78 |
85.96 |
|
ADDITIONAL DEFENCE ACT 1903 BENEFITS FOR ADF MEMBERS AND DEPENDANTS WHERE APPLICABLE |
|||
|
Determination under the Defence Act 1903 |
Additional Death Benefit |
241,556.66 less the amount payable under the SRC Act. |
247,837.13 less the amount payable under the SRC Act. |
|
Dependant Child |
60,389.17 |
61,959.29 |
|
|
Severe Injury Adjustment |
241,556.66 less the amount payable under Sections 24 and 27 of the SRC Act. |
247,837.13 less the amount payable under the SRC Act. |
|
|
Dependant Child |
60,389.17 |
61,959.29 |
|
|
Financial Advice |
1,207.85 |
1,239.25 |
|
SUB-SECTION 16(6) KILOMETRE RATE FOR TRAVEL TO OBTAIN MEDICAL TREATMENT IN PRIVATE MOTOR VEHICLE
Jurisdictional Policy Advice Number 2003/09 was received from Comcare some time ago. This is a reminder of the rate of compensation payable in accordance with sub-section 16(6) of the SRC Act in cases where an employee reasonably incurs expenditure in travelling to (and, in some circumstances in staying at a place) to obtain medical treatment for which the Commonwealth is liable to pay compensation under the SRC Act. The rate payable is still currently 47 cents per kilometre with effect from and including 1 October 2003.
This rate should be applied to all claims for this allowance for journeys on or after 1 October 2003. Delegates are reminded that to qualify for payment of this allowance, it must actually be necessary for the employee to travel in excess of 50 km to obtain appropriate medical treatment. If suitable and appropriate treatment is available closer than that which requires a 50 km return journey, then compensation should not be awarded for any km rate that might be claimed.
Amendment Action
Remove MCRI 2 (Amendment 11) and replace with MCRI 2 (Amendment 12).
Any enquiries concerning the information contained in this MCRI should be directed to
Mr John M Vidler on (02) 6289 4851 or by e-mail at john.vidler@dva.gov.au or to Mr Craig Boyd on (08) 9366 8571 or by e-mail at craig.boyd@dva.gov.au
[signed]
Mark Travers
Director
Policy and Procedures
May 2005
References
COMCARE Jurisdictional Policy Advice Number 2005/01 (“Indexation of benefits under Section 13 effective 1 July 2005”)
COMCARE Jurisdictional Policy Advice Number 2005/04 (“Indexation of NWE – Update under Section 8(9B) effective 1 July 2005, and
COMCARE Jurisdictional Policy Advice Number 2003/09 – Mileage rate for the purposes of sub-section 16(6) of the Safety, Rehabilitation and Compensation Act 1988
MCRI 2 - Amendment 12 - Rates from 1 July 2005