The Military Rehabilitation and Compensation Act 2004 (MRCA) provides treatment, rehabilitation and compensation for members and former members of the Australian Defence Force (ADF), their dependants and other eligible persons in respect of injury, disease or death related to service rendered on or after 1 July 2004. The MRCA also sets out governance, administration and reporting requirements.
A primary aim of this legislation is rehabilitation for ADF members and former members whose capacity for work is affected by conditions that have been accepted as related to their service. All members due for medical discharge, whether or not this results from service related injury or disease, will be individually case-managed through their transition to civilian life.
Prior to this legislation ADF members were subject to two compensation acts, depending on service. They were the Veterans' Entitlements Act 1986 (VEA) and the Safety, Rehabilitation and Compensation (Defence-related claims) Act 1988 (DRCA). Existing veterans, ADF members and former members will not lose their entitlements or their ability to claim under either the VEA or the DRCA. All conditions due to service prior to the 1 July 2004 will continue to be covered by the VEA and/or the DRCA.
The MRCA is designed to create a fair and equitable compensation system recognising the needs of serving members of the ADF as well as eligible former members. The MRCA adopts the beneficial 'beyond reasonable doubt' standard of proof provided in the VEA for determining whether an injury, disease or death relating to warlike or non-warlike service is a service injury, disease or death. The 'reasonable satisfaction' standard of proof applies when determining whether an injury, disease or death relating to peacetime service is a service injury, disease or death and for all other determinations under MRCA. It utilises the Statements of Principles (SOPs) from the VEA in linking injury, disease or death with service. Where service after 01 July 2004 aggravates a pre-existing condition, and the cause of the aggravation satisfies a SOP factor, compensation can be provided to the extent of the aggravation, as is the case under the DRCA.
The actual financial benefits for permanent impairment arising from warlike or non-warlike service are higher than those arising from peacetime service, except for the most serious impairment and for service related deaths, where the same compensation benefits are payable.
The operative provisions of the MRCA commenced on 1 July 2004. The MRCA is prospective in operation and only applies to service rendered on or after the commencement day of 1 July 2004. However, the provisions of the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004 [3] (CTPA), mean that defence service before, and on or after 1 July 2004 can, where applicable, also be included in considering liability under the MRCA.
The VEA was not repealed as a consequence of the passage of the MRCA. This means that veterans (as defined in the VEA) with compensation coverage under the MRCA may be eligible for certain other benefits that continue under the VEA, such as the service pension or treatment for malignant neoplasia or post traumatic stress disorder. It also means that people with compensation coverage under the VEA continue to be covered under the VEA for eligible service before 1 July 2004, subject to the provisions of the CTPA.
Persons with compensation coverage under the DRCA continue to be covered by that Act for service before 1 July 2004, subject to the provisions of the CTPA.
The MRCA provides for the establishment of the Military Rehabilitation and Compensation Commission (MRCC). The MRCC comprises of:
The functions of the MRCC under the MRCA include:
Schedule 2 to the CTPA gives the MRCC functions and powers to determine and manage claims that relate to defence service under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act1988 (DRCA).
The MRCA is administered by the Department of Veterans' Affairs (DVA), which administers the two other primary pieces of legislation in relation to members and former members of the ADF. They are the DRCA and the VEA. There will be considerable interaction between the MRCA, the DRCA and the VEA. This interaction is detailed further in Chapter 12 [5] of this manual.
The MRCA, with which this handbook is specifically concerned, applies not only to members and former members of the ADF, but also in relation to members and former members of the Reserve Forces as well as cadets, officers of cadets and instructors of cadets. Certain other persons who hold honorary rank in the ADF and members of philanthropic organisations that provide services to the ADF are also covered for compensation purposes by the MRCA in the event that they sustain injury or suffer disease as a result of their service to the ADF. The MRCA also applies to certain family members of those who lost their lives or suffer severe impairment as a result of their service.
Delegates derive their powers under the MRCA by delegation from the MRCC.
The Compensation and Income Policy Branch and Rehabilitation Policy & Reform Branch which are part of the Rehabilitation and Support Division have primary responsibility for policy matters affecting the administration of the MRCA.
The Claims & Operations Division has primary responsibility for:
Links
[1] https://clik.dva.gov.au/user/login?destination=comment/reply/19301%23comment-form
[2] https://clik.dva.gov.au/user/login?destination=comment/reply/19313%23comment-form
[3] https://www.legislation.gov.au/Series/C2004A01286
[4] https://clik.dva.gov.au/user/login?destination=comment/reply/19309%23comment-form
[5] https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-12-transitional-provisions
[6] https://clik.dva.gov.au/user/login?destination=comment/reply/19331%23comment-form