Last amended: Invalidity service pension pre 1/1/2000 - definition of permanently incapacitated

The definition of permanently incapacitated, for service pension purposes, changed on 1/1/2000. Prior to this date a person was considered to be permanently incapacitated for work if:

• the person was permanently blind in both eyes [4], or
• the degree of permanent incapacity was 85% or more.

Cases prior to 1/1/2000 did not require a GARP [4] assessment, or that a determination be made in relation to the number of hours worked. This former standard of permanently incapacitated still applies to all recipients of invalidity service pension (and those who had submitted a claim) prior to 1/1/2000. Any reviews of continuing invalidity service pension entitlement for a veteran whose original determination predates 1/1/2000 must still be determined under the pre 1/1/2000 rules.

Invalidity service pension post 1/1/2000 - definition of permanently incapacitated

For service pension purposes a person is taken to be permanently incapacitated for work if:    

• the person is permanently blind in both eyes [4], or
• the person is a veteran to whom section 24 [7] VEA applies ([glossary:special rate:] [glossary:pension:] [8]), or
• the person has an impairment that, if deemed to be an injury or disease for the Guide to the Assessment of Rates of Veterans' Pensions (GARP), would rate 40 or more in Table 18.1 of that Guide, and

• solely because of the incapacity [4], the person is permanently unable to work for periods adding up to more than 8 hours per weeks, and
• the Repatriation Commission regards the incapacity as permanent.     More ? [9]

Invalidity ISS pre 1/1/2000 - definition of permanently incapacitated

The definition of permanently incapacitated, for invalidity ISS purposes, changed on 1/1/2000. The pre 1/1/2000 test of permanent incapacity is the same as for invalidity service pension. Prior to this date a person was considered to be permanently incapacitated for work if the:

• person was permanently blind in both eyes [4], or
• the degree of permanent incapacity was 85% or more.

The same savings provisions that apply to invalidity service pension will apply for invalidity ISS recipients who had received, or who had claimed, invalidity ISS prior to this date.

Invalidity ISS post 1/1/2000 - definition of permanently incapacitated

For income support supplement purposes a person is taken to be permanently incapacitated for work if:    

• the person is permanently [glossary:blind in both eyes:][glossary:, or:] [13]
• the person has a physical, intellectual or psychiatric impairment that results in 20 points or more under the Impairment Tables in Schedule 1B of the Social Security Act 1991, and      More ? [14]
• the Commission is satisfied that solely because of the impairment, the person cannot work for at least 30 hours per week at award wages or above, for the following 2 years.

Duration of incapacity

Invalidity service pension [4] is only intended to be granted to people with permanent disabilities. It should not be granted on a short-term or interim basis as more appropriate Australian Government Assistance Schemes are available to persons with short-term disabilities.  For invalidity ISS purposes 'permanent' means for at least the next 2 years.

Persons automatically considered to be permanently incapacitated

In certain situations a person may be regarded as permanently incapacitated without the need for a medical assessment. These situations require no further investigation and the person can be automatically considered to be permanently incapacitated.    

Other claimants

A person will be considered to have a permanent incapacity for work for pension purposes if they are prevented from permanently obtaining and retaining employment due to physical, intellectual and/or psychiatric impairment from all disabilities (whether accepted or not).

Last amended: 15 August 2022

Medical examinations

To determine a person's incapacity for work, consideration is to be given to medical factors only. It is important that evidence is available to identify the disability/disabilities causing incapacity for work. For ISP this is normally gathered from the GARP forms generated by MAGPIES [4] and the Work Test Questionnaire form D0570.  For invalidity-ISS this information is obtained using the Medical and Work Details form D0571.    

Evaluation by treating doctor

Usually the treating doctor is the appropriate person to evaluate and advise on the effects of disability/disabilities on the person's employability and is asked to comment on things like:

• the nature of the disability,
• treatment provided or available,
• whether any incapacity is likely to continue indefinitely,
• how the disability affects capacity to work,
• whether the disability alone prevents the person from working,
• the manner in which the disability manifests itself,
• the period of time the person has suffered from the disability, and
• the combined effect of all disabilities (if there is more than one).

Initial medical assessment protocol

Before applying the Repatriation Commission approved guidelines, an initial diagnosis would have been received from the treating doctor and the veteran would have undergone a medical assessment to ascertain GARP impairment points and/or an assessment of ability to work.    

Independent medical assessment

If further evidence is required in order to make a decision, the decision maker has the discretion to send the claimant for an independent medical assessment. The following points are guidelines on when that discretion might be exercised:

• the veteran is in receipt of JobSeeker from Centrelink (recipients have to declare that they are fit and able to work, and willing to look for work) and may suggest that they are capable of working more than 8 hours per week,
• the veteran is still employed with a retirement date in the future (e.g. voluntary redundancy cases),
• the veteran has travelled some distance to visit a doctor (this might suggest that the veteran is seeking a more favourable medical assessment),
• the Disability Compensation Payment model for diagnosing psychiatric conditions is not satisfied. 'Diagnostic Guidelines for Psychiatric Assessment and Reports' and the 'Second Opinion Protocol for Psychiatric Cases' provide guidelines on the provision of psychiatric reports that are of a suitable standard. These documents can be accessed via Start\Departmental\Applications\CCPS\CCPS Research Library (read here [34]). Delegates should also refer to the Commission Guideline for Psychiatric Compensation Claims [35] available in the Reference Library,
• the new claim application raises other medical questions.     More → [36]

Factors determining capacity for work – service pension

VEA→

For service pension purposes, in deciding whether a disability/disabilities affects a person's capacity for work, factors such as the following are taken into account:

• the work that the veteran might reasonably be expected to undertake possibly with retraining, given their skills, qualifications and experience;
• whether the work is actually undertaken and is not uncommon in the Australian workforce;
• whether the work is of a kind for which award wages are, or could reasonably be expected to be, paid.

Work in this context is not necessarily limited to:

• the particular type of job that the veteran has previously undertaken; or
• work readily available to the veteran at this time or in the veteran's local area.

Factors determining capacity for work – invalidity ISS

For invalidity ISS purposes, in deciding whether a medical condition is affecting a person's capacity to work for at least 30 hours per week at award wages or above, factors such as the following are taken into account:

• physical and intellectual characteristics that would be required to perform the work, and the person's ability to demonstrate those characteristics, both at present and in the future,
• the ability to:

• regularly report to work,
• persist at work tasks,
• understand and follow work instructions,
• communicate with others in the workplace,
• travel to and from work, and move around at work,
• manipulate objects at work,
• exhibit appropriate work behaviour,
• undertake a variety of tasks and to alternate between tasks,
• lift, carry and move objects at work,

• whether attendance at medical appointments/treatment interferes with their ability to work,
• whether the person is fit for any work, either skilled or unskilled, without needing preparatory training other than on-the-job training. This may involve consideration of:

• the person's work history,
• the person's level and type of education and training history,
• work which would be suited to the person's work skills,

The person needs to have, or have the potential to acquire, all the characteristics necessary to perform the work.

Factors not taken into account –invalidity ISS

The following factors are not to be considered in the assessment of permanent incapacity for ISS purposes:

• the availability of the person's usual work in the locally accessible labour market,
• the person's  motivation to work or train, except when medical evidence indicates that the lack of motivation is directly attributable to the impairment.