Legislative Authority

Veterans' Entitlements Act 1986
Section 7A (qualifying service)
Section 36 (eligibility)
Section 36A to 36M (claims)
Section 36N (rate)
Schedule 6 (calculation of rates)

Stated Current Purpose/Intent

To provide income support for Australian veterans and mariners, Commonwealth veterans and mariners, and allied veterans and mariners, in recognition of the effects of eligible service (see Note).

Age service pension is similar in many ways to the age pension paid by Department of Human Services but is available five years earlier.

Current Eligibility Criteria

A person is eligible for an age service pension if the person:

• is a veteran or mariner;
• has rendered qualifying service (as set out in section 7A of the VEA); and
• has turned 60 years of age.

In addition to the above a Commonwealth veteran or mariner, or allied veteran or mariner (generally) must have been an Australian resident for at least 10 years, or a refugee who holds a permanent entry permit or visa and is a permanent resident.

Note

Service pension is an income support payment and as such is subject to the income and assets tests, unless the pensioner is blind.

Date of Introduction

The service pension was introduced on 1 January 1936 under the Australian Soldiers' Repatriation Act 1935.  Prior to this, war service disability pensions and a range of other benefits and services were payable from the beginning of World War I by the Australian Government, to compensate war veterans and their dependants for war-caused disablement or death.  These benefits were provided under the War Pensions Act 1914 then by the Australian Soldiers' Repatriation Act 1920 and later by the VEA.  In 2004 members, former members and declared members became eligible for pensions and benefits under the MRCA.

Original Purpose/Intent

To compensate Australian veterans for the indefinable and intangible effects of war service that could lead to premature ageing and the loss of ability to earn a living.

Significant Changes in Criteria or Purpose Since Introduction

Chronology of changes, including those relating to means testing.

Legislative Authority

Veterans' Entitlements Act 1986
Section 7A (qualifying service)
Section 37 (eligibility)
Section 37A to 37N (payability, claims and rate)
Schedule 6 (rate calculators)

Stated Current Purpose/Intent

To provide income support to Australian veterans and mariners, Commonwealth veterans and mariners, and allied veterans and mariners, who are considered permanently incapacitated for work due to medical factors, and who are not yet entitled to pension on the basis of age.

Current Eligibility Criteria

A person is eligible if he/she:

• is an Australian, Commonwealth or allied veteran or mariner; and
• has rendered qualifying service; and
• is permanently incapacitated for work; and
• claims before reaching pension age.

A person is automatically accepted as meeting the permanent incapacity for work criterion if he/she:

• is permanently blinded in both eyes; or
• receives or is eligible for the Special Rate of Disability Compensation Payment (i.e. Totally and Permanently Incapacitated (T&PI)); or
• receives or has at some time in their life been eligible for the Special Rate Disability Pension (SRDP) under the Military Rehabilitation and Compensation Act 2004.

A veteran who does not automatically meet the permanent incapacity for work criterion is considered to be permanently incapacitated to work if:

• he/she has 40 impairment points or more under the Guide to the Assessment of Rates of Veterans' Pensions (GARP); and
• he/she is permanently unable to do work for periods adding up to more than 8 hours per week solely because of the incapacity; and
• the incapacity is considered to be permanent.

Invalidity service pension for blinded veterans is not subject to the income and assets tests.  However, any additional entitlements are subject to the income and assets tests.

A Commonwealth veteran or mariner, or allied veteran or mariner (generally) must have been an Australian resident for at least 10 years, or a refugee who holds a permanent entry permit or visa and is a permanent resident.

Date of Introduction

Service pension on the ground of permanent unemployability was first paid in 1936.

Original Purpose/Intent

As current.

Significant Changes in Criteria or Purpose Since Introduction

Chronology of changes including those relating to means testing.

Legislative Authority

Veterans' Entitlements Act 1986 (saving provisions only)
Responsibility for administration of carers pension transferred to the Department of Social Security (now Department of Human Services).
Savings and Transitional Provisions at Section 8 of Schedule 5 provide amendments relating to the transfer of carers.

Notes

1. Carer pension and Carer allowance are administered by Department of Human Services.

Significant Changes in Criteria or Purpose Since Introduction

Legislative Authority

Veterans' Entitlements Act 1986
Section 38 (eligibility)
Section 38A to 38N (payability, claims, rate)
Schedule 6 (calculation of rates)

Stated Current Purpose/Intent

To provide income support for a veteran's partner.

Current Eligibility Criteria

A person is eligible for a partner service pension if the person is:

• a member of couple, whose partner is a veteran receiving age or invalidity service pension or who would be receiving such a pension if not for the operation of one or more of the disqualifying provisions; or
• a member of a couple whose partner is a veteran with qualifying service, and who is qualified for a social security age pension; or
• a non-illness separated partner of a veteran who is receiving age or invalidity service pension or would be receiving such a pension if not for the operation of one or more of the disqualifying provisions, where the spouse is qualified for a social security age pension; or
• a non-illness separated partner of a veteran who is receiving age or invalidity service pension or would be receiving such a pension if not for the operation of one or more of the disqualifying provisions, where special domestic circumstances apply; or
• a non-illness separated partner of a veteran who is receiving age or invalidity service pension or would be receiving such a pension if not for the operation of one or more of the disqualifying provisions, with eligibility limited to 12 months from the date of separation; or
• the widow, widower or eligible former partner of a veteran who was immediately before his or her death, receiving age or invalidity service pension or would have been receiving such a pension if not for the operation of one or more of the disqualifying provisions; and the widow or widower was receiving partner service pension or a social security pension immediately before the veteran's death; or
• a widow, widower or eligible former partner of a veteran who had made a claim for partner service pension which had not been determined before the veteran died, and the veteran had made a claim for age or invalidity service pension which had not been determined before he or she died, but which the Commission determines would have been granted; or
• the widow, widower or eligible former partner of a veteran with qualifying service, who is qualified to receive a social security age pension;

and

• is of qualifying age or older; or
• has dependent children; or
• is the partner of a veteran who:
  • is receiving the Special Rate of Disability Compensation Payment (T&PI); or
  • is receiving, or is eligible to receive, a special rate disability pension safety net payment under the MRCA.

Notes

1. Qualifying age is equivalent to the pension age for veterans [7], which is 60 years.
2. Eligible former partner means a person who is the former partner of a veteran and would be eligible for partner service pension under non-illness separated provisions, but for the death of the veteran.  For example, a former spouse/de facto partner receiving partner service pension for 12 months following separation from the veteran partner, or a former spouse/de facto partner receiving partner service pension under special domestic circumstances.

Date of Introduction

In 1936 (providing the veteran was permanently incapacitated).

Original Purpose/Intent

To provide financial assistance to a veteran's partner or spouse.

Significant Changes in Criteria or Purpose Since Introduction

Chronology of changes including those relating to means testing.

Legislative Authority

Veterans' Entitlements Act 1986
Section 45A (eligibility)
Section 45B to 45R (payability, claims)
Schedule 6 (calculation of rates)

Stated Current Purpose/Intent

To provide income support for war widows and widowers.

Current Eligibility Criteria

A person is eligible for an income support supplement (ISS) if the person:

• is receiving a war widow(er)'s pension under the VEA, or compensation as a wholly dependent partner under the MRCA; and
• is an Australian resident; and
• is residing in Australia.

Notes

1. The ISS is an income support payment and as such is subject to the income and assets tests.
2. The ceiling rate of ISS was frozen at $120.10 per fortnight on introduction.  Changes were made later to make ad hoc increases to the frozen ceiling rate and then to index the ceiling rate.
3. Prior to the introduction of ISS, war widows and widowers could receive income support under the Social Security Act 1991 .  The war widow(er)'s pension was income for the social security payment which generally resulted in a payment of $120.10 per fortnight (frozen since January 1986).

Date of Introduction

20 March 1995

Significant Changes in Criteria or Purpose Since Introduction

DFISA ceased 1 January 2022.  The information below is for historical and backdating assessments only.

Legislative Authority

Veterans' Entitlements Act 1986
Section 118NB (eligibility)
Section 118NC (when payable)
Section 118ND (calculation of amount payable)

Part VIIAB (including the sections above) was revoked by the Veterans' Affairs Legislation Amendment (Exempting Disability Payments from Income Testing and Other Measures) Act 2021 which received Royal Assent 13 December 2021 with an implementation date of 1 January 2022.

Stated Current Purpose/Intent

The purpose of DFISA was to effectively exempt adjusted disability pension from the income test for income support payments paid under Social Security Law, while continuing to regard it as income for the purposes of rent assistance paid under both Social Security and Veterans' Entitlements Law.

Current Eligibility Criteria

The amount of DFISA was the difference between the person's rate of social security payment, and what the rate would be if adjusted disability pension were exempt from the assessment, but included in the calculation of any rent assistance entitlement.

DFISA was payable to people whose social security income support payment was reduced or not payable because of the impact of adjusted disability pension.

Adjusted disability pension means:

• disability pensions paid under Parts II or IV (other than a pension that was payable under section 30 to a dependant of a deceased veteran) of the VEA;
• dependant pension, which was a small frozen amount paid to dependants of disability pensioners, not granted since 1986;
• temporary incapacity allowance (paid by Centrelink); and
• permanent impairment payments and special rate disability pension paid under the MRCA.

Date of Introduction

20 September 2004

Significant Changes in Criteria or Purpose Since Introduction

Part VIIAB (including section 118NJ – regulation making power) was revoked by the Veterans’ Affairs Legislation Amendment (Exempting Disability Payments from Income Testing and Other Measures) Act 2021 receiving Royal Assent 13 December 2021, implementation date 1 January 2022.

DFISA-Like Payments ceased 1 January 2022.

The information below is for historical purposes.

Legislative Authority

Veterans' Entitlements Act 1986
Section 118NJ (regulation making power)

Veterans' Entitlements (DFISA-like Payment) Regulations 2015

Part VIIAB, which includes section 118NJ, was repealed by the Veterans' Affairs Legislation Amendment (Exempting Disability Payments from Income Testing and Other Measures) Act 2021 with effect from 1 January 2022.

Stated Current Purpose/Intent

The purpose of DFISA-like payments was to recompense those who were qualified for income support payments other than those paid under social security law.

Adjusted disability pension was counted as income for the purposes of the following income support payments administered by the former Department of Education Science and Training (DEST) and the former Department of Agriculture, Fisheries and Forestry (DAFF):

• ABSTUDY Living Allowance;
• Farm Help Income Support (repealed 1 July 2014);
• Exceptional Circumstances Relief Payment (repealed 1 July 2014);
• Interim Income Support (repealed 1 July 2014)
• Farm Household Allowance.

To extend secondary benefits to recipients of DFISA-like payments, whose income support payments were reduced to nil because of the adjusted disability pension:

• financial payment that was equivalent to any amount that would have been payable to a person if the person had received the primary payment; and
• non-financial benefits such as concession cards that would have been provided to the person if the person had received the primary payment.

Adjusted disability pension meant:

• disability pensions paid under Parts II or IV of the VEA (other than a pension that was payable under section 30 to a dependant of the a deceased veteran);
• dependant pension, which was a small frozen amount paid to dependants of disability pensioners (repealed in 2009);
• temporary incapacity allowance (repealed in 2011); and
• permanent impairment payments and special rate disability pension paid under the MRCA.

The amount of DFISA-like payment was calculated in the same way as the calculation for DFISA.  It was the difference between the person's rate of income support payment and what the rate would be if adjusted disability pension were exempt from the assessment, but included in the calculation of any rent assistance entitlement.

Current Eligibility Criteria

DFISA-like payments were payable to a person who was receiving or was eligible to receive income support payments from DEST if their payment was reduced because of the inclusion of adjusted disability pension in the assessment.

Since 1 July 2014, the former Department of Agriculture’s Farm Household Allowance, paid by DHS/Centrelink, did not include adjusted disability pension in the income test of the Farm Household Allowance and thus there was no DFISA-like payment.

Date of Introduction

20 September 2004

Significant Changes in Criteria or Purpose Since Introduction

Legislative Authority

Veterans' Entitlements Act 1986
Sections 52Y to 52ZAA

Stated Current Purpose/Intent

To provide assistance to a person who owns valuable assets, which produce little or no income, in circumstances where there are valid reasons why the assets cannot or should not be disposed of, or the person cannot otherwise raise funds on those assets.

Current Eligibility Criteria

The assets test presumes that people with substantial assets, apart from their home, apply those assets to produce income for their own support.  In cases where substantial assets are held but they produce little or no income, the owners are expected to re?arrange their financial affairs before calling on the community for income support through the pension system.

However, there are instances where a person is unable to re-arrange his or her financial affairs, or could not reasonably be expected to re-arrange them because of particular circumstances applying.  Consequently, special provisions are included in the VEA so that people are not placed in severe financial hardship due to the normal application of the assets test.

The following conditions must be met before the hardship provisions can apply:

• the rate of service pension or income support supplement payable (including nil rate) is determined under the assets test;
• the person must not have disposed of income or assets for less than adequate consideration;
• the person or the person's partner has an unrealisable asset;
• the person would be considered to be suffering severe financial hardship, if the financial hardship provisions were not applied;
• the person must lodge a written request for payment of service pension or income support supplement under the hardship provisions; and
• there is no other course of action which the person could reasonably be expected to take to improve his or her financial position.

A pensioner is not in severe financial hardship if their total annual assets tested service pension or income support supplement plus other income exceeds the maximum annual rate of pension.

Date of Introduction

1985

Original Purpose/Intent

Hardship provisions were introduced under the assets test in 1985 to assist in cases where the value of a person's assets reduced the amount of service pension payable with the result that the pensioner was in severe financial hardship.

Significant Changes in Criteria or Purpose Since Introduction

Legislative Authority

Veterans' Entitlements Act 1986
Section 53

Stated Current Purpose/Intent

To provide all service pensioners and income support supplement recipients with assistance, additional to their assessed rate of pension.

Current Eligibility Criteria

All service pensioners and income support supplement recipients are eligible for all Commonwealth concessions.

Date of Introduction

Fringe benefits were first introduced in 1936.  With effect from 1 April 1993, the special fringe benefits income and assets tests were abolished.  From that date, all service pensioners became eligible for the full range of Commonwealth concessions and were issued with a Pensioner Concession Card (PCC).

Original Purpose/Intent

Pensioner concessions provide service pensioners with assistance of a non-cash nature, which is additional to their assessed rate of pension.  These benefits have been generally defined by the General Orders Service Pension as “any good or service, or assistance towards purchasing a good or service, which is available on concessional terms to pensioners, beneficiaries and/or people with limited means but which is not generally available on concessional terms to everyone in the community.”

Pensioner concessions are made available by Commonwealth, State, Territory and local governments.  Certain private organisations such as theatres, cinemas, clubs and sporting associations also offer pensioner discounts.

Once a pensioner is eligible for pensioner concessions, he or she becomes eligible, through the Commonwealth, for the following:

• concessions under the Pharmaceutical Benefits Scheme;
• subsidised products from the National Diabetes Services;
• concessional hearing aid services;
• fare reductions for travel on Great Southern Railways where an extended journey involves both State and National railway lines; and
• postal redirection concessions.

Concessions provided by State, Territory, and local governments vary from place to place but commonly include:

• rebates on municipal rates and water, gas and electricity charges;
• transport concessions on State or Territory rail, bus, ferry and tram services;
• reductions in drivers' licence fees and motor vehicle registration charges;
• rebates on third party motor vehicle insurance premiums in some cases;
• exemption from stamp duty; and
• free ambulance services.

Dependants of pensioner concession card holders, who are listed on the card, are eligible for concessions under the Pharmaceutical Benefits Scheme and may be eligible for a range of other concessions offered by state and territory governments.

Significant Changes in Criteria or Purpose Since Introduction

Primarily, changes have been the result of changes to the former means test and then the introduction of the income and assets tests.

Legislative Authority

Veterans' Entitlements Act 1986
Sections 118V-118ZZA

Stated Current Purpose/Intent

To provide concessions to retirees of pension age who fail to qualify for an income support pension or a social security pension or benefit.

Current Eligibility Criteria

To be eligible for a CSHC from DVA, a person must be:

• a veteran with qualifying service;
• a partner (including widows and widowers) of a veteran with qualifying service; or
• a war widow or widower.

The person must also:

• have reached pension age (or qualifying age if a war widow or widower);
• be an Australian resident and residing in Australia;
• not be receiving a service pension, income support supplement or age pension from DVA;
• not be receiving a pension or benefit or CSHC from Services Australia; and
• satisfy the CSHC income test*.

*Clients over pension age whose pension was reduced to nil on 1 January 2017 as a result of changes to the assets test do not need to meet the usual CSHC income test.

Notes

1. CSHC holders are also entitled to pharmaceuticals at the concessional rate under the Pharmaceutical Benefits Scheme and the Medicare Safety Net threshold.

Date of Introduction

1 July 1994

Original Purpose/Intent

In the 1993 Budget, the Government announced the provision of a Seniors Health Card to assist those retirees who qualified for fringe benefits under the income test, but either failed the assets test or were excluded by the residency requirements.

The CSHC does not give the cardholder direct access to any State, Territory or local government concessions, although some State, Territory and local governments may recognise the CSHC for additional concessions.  To avoid confusion with State Seniors Cards, the prefix 'Commonwealth' was added to the name.

The card originally provided a limited range of health-related concessions and was targeted at those retirees who are asset rich but income poor.

Significant Changes in Criteria or Purpose Since Introduction

Legislative Authority

Prior to 26 June 2015

Veterans' Entitlements Act 1986
Sections 118P to 118PC

Stated Current Purpose/Intent

Seniors supplement ceased 26 June 2015.  The purpose was to provide assistance to self funded retirees and eligible Gold Card holders in meeting quarterly utilities bills.  The seniors supplement was paid quarterly.

Current Eligibility Criteria

Between 20 September 2009 and 26 June 2015, to be eligible for seniors supplement, a person must have been the holder of a Commonwealth Seniors Health Card, or a Gold Card holder who is of veteran pension age and not receiving an income support payment.

Date of Introduction

Seniors supplement commenced on 20 September 2009; the first payment was paid on 31 December 2009.  It ceased 26 June 2015 with the last payment on 25 June 2015.

Significant Changes in Criteria or Purpose Since Introduction

Legislative Authority

Veterans' Entitlements Act 1986
Section 79B (eligibility)
Sections 79C to 79G (applications)
Sections 79I to 79J (determination)
Section 79K (maximum amount of advance)

Stated Current Purpose/Intent

To provide pensioners with greater choice in how they meet unexpected needs for additional cash.

Current Eligibility Criteria

A person may be eligible for a lump sum advance of pension if he or she is receiving:

• age service pension
• invalidity service pension
• partner service pension
• income support supplement
• war widow(er)'s pension
• Disability Compensation Payment
• social security age pension by DVA.

To be eligible for a lump sum advance, a person must:

• be paid one of the above types of pension; and
• have been receiving a pension from DVA or Services Australia continually during the three months before the application for an advance; and
• be able to afford to repay the advance without suffering severe financial hardship; and
• be an Australian resident living in Australia at the time of application.

A person is not eligible for a lump sum advance if the person:

• has been paid an advance in the last 12 months that has not been fully repaid; or
• is not eligible to receive an amount over the minimum lump sum amount; or
• owes a debt to the Commonwealth because he or she has been overpaid pension by DVA or Services Australia.

The maximum amount that can be advanced as a lump sum is equal to three weeks of the maximum pension rate less the minimum pension supplement amount.

Pensioners can apply for multiple advances in a given year as long as the total does not exceed 1.5 times (three weeks) their fortnightly pension.

Date of Introduction

Lump sum advance of service pension was introduced on 4 July 1996.

Lump sum advance of pension was extended to Disability Compensation Payment recipients from 1 January 1998.

Original Purpose/Intent

The purpose and intent of this benefit have not changed.

Significant Changes in Criteria or Purpose Since Introduction

Legislative Authority

Veterans' Entitlements Act 1986
Section 5GA
Schedule 6

Stated Current Purpose/Intent

The Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 introduced the Pension Supplement to simplify the number of supplementary allowances currently available and to provide pensioners with more flexibility in managing their own budgets.

Current Eligibility Criteria

All veterans who are in receipt of income support.

Date of Introduction

20 September 2009

Notes

1. The Pension Supplement incorporated the value of the previous GST Supplement, pharmaceutical allowance, utilities allowance and telephone allowance (at the higher internet rate).
2. The Pension Supplement is paid fortnightly.
3. A portion of the Pension Supplement is only available to people resident in Australia or temporarily overseas.  This maintains the current portability rules applying to the former utilities allowance and telephone allowance.
4. A pension payment will not fall below the minimum amount of the Pension Supplement until income or assets reach a level that would otherwise reduce the pension to nil.
5. An amount of the Pension Supplement equal to the previous GST Supplement is taxable, except where a pension is received that is not taxable.  The remainder of the Pension Supplement is non-taxable.
6. The combined pension couple rate of the Pension Supplement and the Pension Supplement minimum amount are indexed to the CPI each 20 March and 20 September.  The single rate of the Pension Supplement and Pension Supplement minimum amount is 66.33 per cent of the combined pension couple rate.

Significant Changes in Criteria or Purpose Since Introduction

Legislative Authority

Veterans' Entitlements Act 1986
Section 5F (definitions)
Schedule 5(10) Savings and Transitional Provisions

Stated Current Purpose/Intent

To financially assist veteran service pensioners, and income support supplement recipients who have dependent children.

Current Eligibility Criteria

A veteran or war widow/er with a dependent child or children (as defined in section 5F VEA) may qualify for Family Tax Benefit from Services Australia. A DVA income support pensioner with a dependent child or children, automatically qualifies for Family Tax Benefit Part A.

Date of Introduction

Additional pension for children has been payable since 1936.  Guardian allowance was first introduced in 1965.

Original Purpose/Intent

An acknowledgment of the additional financial strain of dependent children on persons receiving income support.

Significant Changes in Criteria or Purpose Since Introduction

Legislative Authority

Veterans' Entitlements Act 1986
Section 5Q(1) (definition)
Schedule 6 Module G

Income Tax Assessment Act 1936

Stated Current Purpose/Intent

To help offset the higher than normal costs incurred by service pensioners and income support supplement recipients whose permanent place of residence is situated in a remote area of Australia.

Current Eligibility Criteria

A person is eligible if the person is receiving, or eligible to receive, service pension or income support supplement and permanently resides in the remote area [21].

A person who is eligible for remote area allowance and has family tax benefit children, is eligible for remote area allowance for each eligible child.  The child does not have to live in the remote area, but must normally be in Australia.

Remote area allowance will be payable for up to 8 weeks if the child is overseas temporarily.  Remote area allowance for family tax benefit children will be paid as part of the DVA pension, not by Services Australia.

Notes

1. Though remote area allowance is not subject to either the income or assets tests and is not taxable, it does affect any zone tax offset otherwise available to the pensioner from the Australian Taxation Office.

Date of Introduction

Remote area allowance was introduced into the DVA in 1984.

Original Purpose/Intent

The original purpose has not changed.

Significant Changes in Criteria or Purpose Since Introduction

Legislative Authority

Veterans' Entitlements Act 1986
Section 53H (definition)
53J-N (bereavement payment - partnered)
53P-Q (bereavement payment - single)
53R-T (bereavement payment - death of a dependent child)

Stated Current Purpose/Intent

To allow a service pensioner or income support supplement (ISS) recipient continued access to payments at the following rates for a limited time:

• the combined provisional rate of pension on the death of his or her partner; or
• his or her current rate of pension on the death of a dependent child, or a person for whom he or she was caring.

The payment is designed to assist the widow or widower gradually to adjust her/his financial situation, and to defray costs caused by the bereavement.

Current Eligibility Criteria

Bereavement payments may be made to:

• the widow, widower or carer of a deceased service pensioner;
• an ISS recipient whose deceased partner was in receipt of an income support supplement, service pension, or certain pensions from Services Australia;
• the estate of a deceased non-partnered service pensioner;
• parents whose dependent children have died.

Date of Introduction

Re-adjustment allowance (the equivalent of six pays) was introduced in 1968.

Disability Compensation (formerly disability pension) bereavement payments commenced on 19 December 1989.

Service pension bereavement payments (the equivalent of seven pays) were introduced on 1 January 1990.

Notes

1. The amount of bereavement payment where the deceased pensioner has a partner is the equivalent of seven pension instalments. If the deceased pensioner was not partnered, one pension instalment is payable to the estate.
2. For partnered pensioners, instalments are of the combined provisional rate of pension.
3. Also payable to the widow or widower of a Disability Compensation Payment recipient.

Original Purpose/Intent

The original purpose has not changed.

Significant Changes in Criteria or Purpose Since Introduction

Legislative Authority

Veterans' Entitlements Act 1986
Section 118AA (eligibility)
Section 118AAB (need for a claim)
Section 118AAC (entitlement to and amount of payment)
Section 118AAD (payment to be refunded)

Stated Current Purpose/Intent

To assist eligible pensioners with the costs of enrolling in a course of study to develop their skills, obtain a qualification; or to improve their employment prospects.

Current Eligibility Criteria

To be eligible, a person must be receiving:

• an invalidity service pension; or
• an income support supplement; or
• a partner service pension, and their partner is receiving an invalidity service pension.

In addition, the person must be:

• under pension age; and
• be enrolled or intend to enrol in either a full-time or part-time course of education which is an approved course under the Austudy scheme; and
• be qualified for financial supplement under the student financial supplement scheme, or if not in receipt of financial supplement, be qualified to receive the Pensioner Education Supplement (PES) paid by Services Australia; and
• have not already received an EdEP in the current calendar year.

Date of Introduction

1995

Original Purpose/Intent

There have been no changes to the original purpose/intent.

Significant Changes in Criteria or Purpose Since Introduction

Nil.

Legislative Authority

Veterans' Entitlements Act 1986
Part IIIAB, Sections 45T to 45UU

The Pension Bonus Scheme closed to new registrations from 1 July 2014.  The Work Bonus Scheme replaces the Pension Bonus Scheme.

Stated Intent/purpose

The Pension Bonus Scheme was designed to encourage people of retirement age to remain in the workforce longer by offering a one-off, tax-free lump sum bonus if they deferred receipt of a pension for up to five years after reaching pension age (or qualifying age in the case of deferral of the income support supplement).

Eligibility

There are certain criteria that must be met to qualify for the bonus.  The person must be:

• a veteran with qualifying service or their partner;
• a war widow or widower eligible for income support supplement; or
• a veteran in receipt of DVA Disability Compensation Payment or their partner.

They must also:

• have reached pension or qualifying age;
• defer claiming income support pension for at least one year when they become eligible;
• have registered with DVA before 1 July 2014 as a member of the Pension Bonus Scheme;
• remain in the workforce or be a partner of an eligible person who remains in the workforce;
• work (or have a registered partner who has worked) a minimum of 960 hours each year; and
• be an Australian resident.

Amount of Pension Bonus Payable

The bonus is calculated as 9.4% of annual basic pension entitlement multiplied by each year of deferred retirement and by each year of deferred take-up of pension, to a maximum of five years.

The actual amount of bonus will vary according to the rate of pension payable at the time of claim and how long pension has been deferred.  A top up bonus may be payable if the person's rate of pension increases due to a reduction in their income or assets in the 13 weeks after the pension bonus is granted.

Date of Introduction

The Pension Bonus Scheme commenced on 1 July 1998.

Significant Changes in Criteria or Purpose Since Introduction

Legislative Authority

Veterans' Entitlements Act 1986
Part IIIB, Division 1A Work Bonus

Stated Purpose/Intent

The Work Bonus replaces the former Pension Bonus Scheme, as a scheme to encourage and reward older Australians who remain in the paid workforce past their normal retirement age.

Under this income test concession, the first $300 of the person's fortnightly work bonus income is excluded from the income test.  The income concession amount is not subject to indexation.  Where the fortnightly work bonus income is less than $300 per fortnight, an eligible person will accrue the unused portion of the $300 per fortnight income concession to a work bonus bank to offset their income in the future.

Eligibility

A person who:

• is receiving service pension or income support supplement;
• has reached qualifying age; and
• receives employment income arising from remunerative work undertaken as an employee in an employer/employee relationship or receives income generated from gainful work such as business earnings from self-employment that meet the personal exertion test.

A person who is receiving service pension or income support supplement at the transitional rate is not eligible for the work bonus.

Date of Introduction

20 September 2009

Significant Changes in Criteria or Purpose Since Introduction

Legislative Authority

Veterans' Entitlements Act 1986 (Part IIIA)

Veterans’ Entitlements (Veteran Payment) Instrument 2018 [30]

Stated Purpose/Intent

The Veteran Payment is to provide interim income support for current and former members of the Australian Defence Force who may be in financial difficulty, between lodging a claim for a mental health condition under the Safety, Rehabilitation and Compensation Act (Defence-related claims) 1988 (DRCA) or Military Rehabilitation and Compensation Act 2004 (MRCA) and the claim being determined.

Additionally, the payment will provide early access to vocational and psychosocial rehabilitation, including financial counselling.

Eligibility

A person is eligible for a veteran payment if the person:

• is a current or former member of the ADF

• has made a claim for a mental health condition under either the DRCA or the MRCA and this claim is undetermined

• is unable to undertake remunerative work for more than eight hours per week

• is below Age Pension age on the day the claim was made

• is a resident of Australia and was present in Australia at the time of lodging the claim for a mental health condition.

Veteran payment is also payable to partners who are either:

• legally married to and living with a current or former member, or

• living in a de facto relationship with a current or former member

and the member is receiving the veteran payment.

Veteran payment is an income support payment and as such is subject to the income and assets test, unless the person is blind.

Date of Introduction

Legislation for Veteran Payment was included as Schedule Two of the Veterans’ Affairs Legislation Amendment (Veteran-centric Reforms No. 1) Bill 2018 which received Royal Assent on 28 March 2018.

The veteran payment was introduced on 1 May 2018 under the Veterans’ Entitlement Act 1986. Prior to this, former members awaiting the determination of their claim for a mental health condition would approach Centrelink for financial assistance.

Veteran Payment was included as a recommendation in the Government’s Response to the Senate Foreign Affairs, Defence and Trade Committee’s Report, The Constant Battle: Suicide by Veterans. The response included several measures to be put in place to reduce suicide and self-harm in the veteran community, with a package of new measures to deliver better support for veterans and their families.

Legislative Authority

Veterans' Entitlements Act 1986
Section 9 (liability provisions)
Section 13 (eligibility of veterans and mariners)
Section 18 (duties of Commission in relation to pensions)
Section 19 (determination of claims and applications)
Section 22 (general rate and EDA)
Section 29 (Guide to Assessment of Rates of Veterans' Pensions - GARP)
Sections 30A to 30P and 74 (limitations due to payment of other compensation)
Section 70 (eligibility of Defence & Peacekeeping Forces)
Section 120A (reasonable hypothesis by reference to the Statements of Principles)
Section 120B (reasonable satisfaction by reference to the Statements of Principles)

Stated Current Purpose/Intent

To compensate a veteran, member of the Forces, member of a Peacekeeping Force or Australian mariner for incapacity resulting from eligible service.

Current Eligibility Criteria

To be eligible a person must have:

• an injury or disease, or both, determined as war-caused or defence-caused; and
• all such injuries or diseases assessed and a pension rate determined according to the GARP.

Notes

1. There is no "inability to work" test for the general rate.
2. An extreme disablement adjustment (EDA) may be paid to persons over age pension age.
3. An intermediate or special rate disability compensation payment is not payable concurrently with a general rate disability compensation payment.
4. Claims for acceptance of an injury, disease or death as being war-caused are determined in accordance with the Statements of Principles (SOPs) issued by the Repatriation Medical Authority (RMA). These SOPs are binding on all determining authorities. However, determinations by the RMA are appealable and/or subject to review by the Specialist Medical Review Council.
5. Determinations on the assessment of Disability Compensation Payment are made in accordance with the current edition of GARP [33].
6. Peacetime Service Members of the Forces are eligible for compensation benefits under the Veterans' Entitlements Act 1986 (VEA), in relation to their peacetime service from 7 December 1972 until 6 April 1994, provided they had served continuously for three years before 6 April 1994. The three year rule does not apply to members who died or who were discharged on invalidity grounds. All members, including those not eligible under the VEA, are also eligible under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) in relation to any period of peacetime service up until 6 April 1994. For peacetime service since the enactment of the Military Compensation Act 1994 (MCA) on 7 April 1994 all members are covered under the Military Compensation Scheme (MCS). Benefits under the MCS are based on those in the DRCA. Only those members who enlisted before 22 May 1986 and served continuously up to and after 7 April 1994 are eligible under both the VEA and DRCA for their peacetime service after 7 April 1994. If a member has eligibility under both the VEA and the DRCA any compensation received through the DRCA is offset against Disability Compensation Payment. DI B18/94 [34] refers.
7. Peacekeeping and Hazardous Service – Members with such service are also covered under both the VEA and the DRCA. The three year qualifying period does not apply to such service. Similar offsetting provisions apply where both compensation and Disability Compensation Payments are payable. Peacekeeping service is not restricted to members of the Forces (eg members of the Australian police forces who have rendered peacekeeping service in Cyprus and Cambodia). The MCS does not apply to members of a Peacekeeping Force who are not members of the Forces, but those persons will be covered under the DRCA.
8. Operational Service – Members with operational service before 7 April 1994 are only covered under the VEA. The MCA also provides coverage for operational service on or after 7 April 1994 under both the DRCA and VEA. Where a member is eligible for benefits under both the VEA and the DRCA, offsetting provisions apply.

Date of Introduction

1921

Original Purpose/Intent

The original intention has not changed.

Significant Changes in Criteria or Purpose since Introduction

Legislative Authority

Veterans' Entitlements Act 1986
Section 9 (liability provisions)
Section 13 (eligibility of veterans and mariners)
Section 18 (duties of Commission in relation to pensions)
Section 19 (determination of claims and applications)
Section 24 (criteria T&PI)
Section 25 (criteria TTI)
Section 28 (capacity to undertake remunerative work)
Section 29 (Guide to the Assessment of Rates of Veterans' Pensions - GARP)
Section 30A to 30P and 74 (limitation due to payment of other compensation)
Section 70 (eligibility of Defence & Peacekeeping Forces)
Section 120 (Standard of Proof)
Section 120A and 120B (Statements of Principles)

Stated Current Purpose/Intent

To provide compensation to a veteran, member of the Forces, member of a Peacekeeping Force or Australian mariner where, because of either:

• total and permanent incapacity; (T&PI) or
• temporary total incapacity (TTI);

resulting from eligible service, the person is unable to resume or to continue in remunerative work for periods aggregating more than eight hours per week.

Current Eligibility Criteria

A person is eligible for T&PI pension if:

• the degree of incapacity from his or her war-caused or defence-caused disabilities has been determined to be at least 70 per cent; or
• he or she has suffered from or is suffering from pulmonary tuberculosis, and is receiving or entitled to receive a disability compensation payment at the general rate; and
• he or she is totally and permanently incapacitated, that is to say, the person's incapacity from his or her accepted disabilities, alone, renders the person incapable of undertaking remunerative work for periods aggregating more than eight hours per week; and
• he or she is, by reason of his or her incapacity from accepted disabilities alone, prevented from continuing to undertake remunerative work and, as a consequence, suffers a loss of earnings that the person would not suffer if free of that incapacity.

If the person is aged 65 years or over, they must have been engaged in continuous remunerative work that commenced prior to turning 65 and continued past the age of 65. There is no requirement for this continuous period of employment to have been with the same employer/self-employment (e.g. the person may have worked for multiple employers or owned more than one business).

A person is also eligible if he or she is blinded in both eyes as a result of a war-caused or defence-caused injury or disease.

A person is eligible for TTI pension if:

• he or she is temporarily incapacitated from war-caused or defence-caused disabilities; and
• if the incapacity were permanent, the person would qualify for a T&PI pension.

The period for which TTI pension is determined as payable is the time for which the incapacity is likely to continue.

Notes

1. On the death of a person entitled to a special rate pension an eligible dependant of the person has an automatic entitlement to a war widow(er)'s pension or orphan's pension, as appropriate.

Date of Introduction

1920

Original Purpose/Intent

To compensate "severely disabled veterans of a relatively young age who could never go back to work and could never hope to support themselves or their families or provide for their old age."

Significant Changes in Criteria or Purpose since Introduction

Legislative Authority

Veterans' Entitlements Act 1986
Section 9 (liability provisions)
Section 13 (eligibility of veterans and mariners)
Section 18 (duties of Commission in relation to pensions)
Section 19 (determination of claims and applications)
Section 22(4) (criteria)
Section 29 (Guide to the Assessment of Rates of Veterans' Pensions - GARP)
Section 30A to 30P and 74 (limitations due to the payment of other compensation)
Section 70 (eligibility of Defence & Peacekeeping Forces)
Section 120 (standard of proof)
Section 120A and 120B (Statements of Principles)

Stated Current Purpose/Intent

To compensate a veteran, member of the Forces, member of a Peacekeeping Force or Australian mariner, who is extremely disabled and in receipt of the 100 per cent general rate Disability Compensation Payment but whose accepted disabilities have further degenerated after age 65.

Current Eligibility Criteria

A person is eligible if:

• the degree of incapacity from war-caused or defence-caused disabilities is determined to be 100 per cent; or
• he or she has suffered from or is suffering from pulmonary tuberculosis, and is receiving or entitled to receive a Disability Compensation Payment at the 100 per cent general rate;

and

• he or she has attained the age of 65 years; and
• he or she has an impairment rating of at least 70 points and a lifestyle rating of at least 6 points under the GARP; and
• he or she is not receiving an intermediate or a special rate Disability Compensation Payment.

The adjustment was initially a 50 per cent increment to the 100 per cent general rate Disability Compensation Payment.  Over time, new measures have changed this ratio.

On the death of a person entitled to EDA an eligible dependant of the person has an automatic entitlement to a war widow(er)'s pension or orphan's pension, as appropriate.

Date of Introduction

December 1988

Original Purpose/Intent

The original intention has not changed.  The EDA was intended to provide a more substantial level of compensation to veterans who were retired and whose degree of incapacity was greater than that required to qualify for the 100 per cent general rate, but who could not satisfy the eligibility criteria for the intermediate or special rate.

Significant Changes in Criteria or Purpose since Introduction

Legislative Authority

Veterans' Entitlements Act 1986
Section 9 (liability provisions)
Section 13 (eligibility of veterans and mariners)
Section 18 (duties of Commission in relation to pensions)
Section 19 (determination of claims and applications)
Section 27 (criteria)
Section 30A to 30P and 74 (limitations due to payment of other compensation)
Section 70 (eligibility of Defence and Peacekeeping Forces)
Section 120 (standard of proof)
Section 120A and 120B (Statements of Principles)

Stated Current Purpose/Intent

To provide further compensation for a veteran, member of the Forces, member of a Peacekeeping Force or Australian mariner, who has certain war-caused or defence-caused amputations and/or loss of sight.

Current Eligibility Criteria

A person is eligible if he or she is:

• not eligible for a Disability Compensation Payment at the special rate;
• eligible for a Disability Compensation Payment at the general rate, intermediate rate, or for an EDA; and
• has an incapacity from an accepted disability of the following kind:

1. two arms amputated;
2. two legs and one arm amputated;
3. two legs amputated above the knee;
4. two legs amputated and blinded in one eye;
5. one arm and one leg amputated and blinded in one eye;
6. one leg and one arm amputated;
7. one leg amputated above, and one leg amputated below, the knee;
8. two legs amputated below the knee;
9. one arm amputated and blinded in one eye;
10. one leg amputated and blinded in one eye;
11. one leg amputated above the knee;
12. one leg amputated below the knee;
13. one arm amputated above the elbow;
14. one arm amputated below the elbow; or
15. blinded in one eye.

The rate of Disability Compensation Payment and additional payment together may not exceed the amount of the special rate. (Persons entitled to additional payment for disabilities listed at items 1 to 6 above receive the same amount as the special rate.)

On the death of a person entitled to additional payment for disabilities listed at items 1 to 8 above, an eligible dependant of the person has an automatic entitlement to a war widow(er)'s pension or orphan's pension, as appropriate.

VEA subsection 27(4) contains deeming provisions for partial amputations and for loss of function without amputation.

Notes

1. See Notes 6, 7 and 8 under Disability Compensation Payment - General Rate [36].
2. Eligibility for the additional payment is assessed when the rate of Disability Compensation Payment is assessed.

Date of Introduction

1921

Original Purpose/Intent

The original intention has not changed.

Significant Changes in Criteria or Purpose Since Introduction

Legislative Authority

Veterans' Entitlements Act 1986
Section 8 (liability provisions)
Section 5E(1) (definition)
Section 13 (eligibility of partners of veterans and mariners)
Section 18 (duties of Commission in relation to pensions)
Section 19 (determination of claims and applications)
Section 45 (income support supplement)
Section 70 (eligibility of partners of Defence and Peacekeeping Forces)
Section 120 (standard of proof)
Section 120A and 120B (Statements of Principles)

Stated Current Purpose/Intent

To compensate the widow/er of a veteran, member of the Forces, member of a Peacekeeping Force or Australian mariner, whose eligible service has caused or contributed to his or her death.

The widow/er must have been a partner of, or legally married to, an eligible person immediately before the eligible person died.  The eligible person must have:

• had death determined as war-caused or defence-caused; or
• died as a result of an injury or disease which is accepted as war-caused or defence-caused; or
• been in receipt of a Disability Compensation Payment at the special rate; or
• been in receipt of an extreme disablement adjustment; or
• been in receipt of temporarily totally incapacitated special rate; or
• been in receipt of intermediate rate; or
• been in receipt of a Disability Compensation Payment, increased by one of items 1-8 of section 27 of the VEA; or
• been a former Australian prisoner of war.

Notes

1. The war widow(er)'s pension is the sum of three amounts. The smaller amount of $25 (prior to 20 March 2008) was fixed and has its origins in the former separate benefit, domestic allowance.  Domestic allowance ceased to exist as a separate payment after the VEA was introduced on 22 May 1986.  The supplement component (increase of 4%) was introduced in July 2000 to compensate pensioners for the effects of the GST.
2. War widow(er)'s pension is not affected by other income except payments in the nature of compensation. In respect of the death of a veteran, all pensions payable to a dependant may be limited by the amount of compensation paid, or the assessed fortnightly equivalent. Where two or more pensions are subject to these provisions, an orphan's pension is to be limited before a war widow(er)'s pension.

Date of Introduction

1914

Original Purpose/Intent

The original intention has not changed.

Significant Changes in Criteria or Purpose since Introduction

Legislative Authority

Veterans' Entitlements Act 1986
Section 8 (liability provisions)
Section 13 (eligibility of children of veterans and mariners)
Section 18 (duties of Commission in relation to pensions)
Section 19 (determination of claims and applications)
Section 30A to 30P and 74 (limitation due to payment of other compensation)
Section 30(2) (rate)
Section 70 (eligibility of children of Defence and Peacekeeping Forces)
Section 120 (standard of proof)
Section 120A and 120B (Statements of Principles)

Stated Current Purpose/Intent

To compensate the eligible dependent children of a deceased veteran, member of the Forces, member of a Peacekeeping Force or Australian mariner.

Eligibility Criteria

Orphans of an eligible person:

• whose death was war-caused or defence-caused;
• who died as a result of a war-caused or defence-caused disability;
• who had been receiving:
  • a special rate pension;
  • an EDA; or
  • an increased rate of pension for certain amputations or certain amputations and blindness described in items 1 to 8 of section 27 of the VEA; or
• who was a former Australian prisoner of war; or
• a veteran or mariner, who has rendered operational service, whose death was not war-caused, and the child is not being maintained by a parent, adoptive parent or step-parent.

The child must have been wholly or substantially dependent on the person, immediately prior to the person's death.  If the child is between 16 and 25 years old he or she must be:

• receiving full-time education at a school, college or university;
• not receiving VCES, Austudy or other education assistance from the Commonwealth; and
• not receiving a disability support pension from Services Australia, or another Commonwealth allowance.

Notes

1. Orphan's pension is not affected by other income except payments in the nature of compensation. In respect of the death of a veteran, all pensions payable to a dependant may be limited by the amount of compensation paid, or the assessed fortnightly equivalent.  Where two or more pensions are subject to these provisions, an orphan's pension is to be limited before a war widow(er)'s pension.

Date of Introduction

1920

Original Purpose/Intent

The original intention has not changed.

Significant Changes in Criteria or Purpose Since Introduction

Original Purpose/Intent

To provide all Australian service personnel who were held prisoner of war (POW) and civilians who were interned by Japan during World War II and their surviving widows with a one-off ex gratia payment of $25,000 in recognition of the treatment they received in captivity.

Ex-POWs and civilian internees of Japan

Veterans' Entitlements Act 1986 – Section 106
Compensation (Japanese Internment) Act 2001 – Section 7(1)
Veterans' Entitlements (Compensation – Japanese Internment) Regulations

A veteran is eligible if the veteran was interned by Japanese military forces at any time during the designated war period and was alive at 1 January 2001.

A dependant (other than a child) of a deceased veteran is eligible if the dependant was alive on 1 January 2001; the veteran was interned by Japanese military forces at any time during the designated war period and died before 1 January 2001.

A partner of a deceased veteran is eligible if the person was alive at 1 January 2001, the veteran died before 1 January 2001, the person was a partner of the veteran immediately before the veteran's death, and veteran was interned by Japanese military forces at any time during the designated war.

A person (civilian) is eligible if the person was alive at 1 January 2001, the person was interned by Japanese military forces at any time during the designated war period, and the person was domiciled in Australia immediately before the commencement of internment.

Ex-POWs of North Korea

Veterans' Entitlements (Clarke Review) Act 2004 – Part 2.

To provide all Australian service personnel who were held POWs and civilians who were interned by North Korea during the Korean War and their surviving widows with a one-off ex gratia payment of $25,000 in recognition of the treatment they received in captivity.

In 2004 eligibility was extended to ex-POWs of North Korea and their surviving widows who were alive on 1 July 2003 in response to a recommendation of the Clarke Review of Veterans' Entitlements.

A veteran is eligible if the veteran was interned by North Korean military forces at any time during the designated war period and was alive on 1 July 2003.

Ex-POWs (Europe)

A $25,000 one-off payment is also available to Australian former POWs in Europe, or their surviving widows who were alive on 1 January 2007.

To be eligible for the ex-gratia payment the person must have been:

• a member of the Australian Defence Forces (ADF) who was held prisoner by Germany, Italy or their allies at any time between 3 September 1939 and 11 May 1945;
• a civilian, who was interned or detained by the Germans, Italians or their allies at any time between 3 September 1939 and 11 May 1945, who was domiciled in Australia  immediately before their detention or internment; or
• the widow or widower of an eligible veteran or civilian.

The payment is also available to the estates of eligible people who were alive on 1 January 2007 but have since died.

Date of Introduction

May 2001 (POW-J)
July 2004 (POW-K)
January 2007 (POW-E)

Assessment under the Income and Assets Tests

Compensation (Japanese Internment) Act 2001 – Section 12
Veterans’ Entitlements (Clarke Review) Act 2004 – Section 13
Social Security and Veterans’ Affairs Legislation Amendment (One-off Payments and Other 2007 Budget Measures) Act 2007 Schedule 5 Item 10

The $25,000 one-off payment is disregarded under the assets test and treated as a deduction from the value of the person's total assets for life.

Veterans’ Entitlements Act 1986 – Section 5H(12) – Legislative instruments

The $25,000 one-off payment is regarded as an exempt lump sum under the income test.  If the money received from these payments is invested, used to acquire assets or disposed of, then the subsequent investment, asset acquisition or disposal is assessed using the appropriate income and assets test rules.

Original Purpose/Intent

To provide special recognition of the hardships endured by all Australian service personnel who were held prisoner of war (POW) and civilians who were interned by Japan during World War II.

Legislative Authority

Veterans' Entitlements Act 1986
Part VIB

Eligibility

The same as the eligibility for the ex-gratia payments made to ex-POWs and civilian internees of Japan, ex-POWs in Europe, and prisoners of North Korea during the Korean War.

Date of Introduction

20 September 2011

Legislative Authority

Veterans' Entitlements Act 1986
Section 98

Stated Current Purpose/Intent

To assist an eligible veteran, member of the Forces, member of a Peacekeeping Force or Australian mariner with the cost of the services of an attendant.

Eligibility Criteria

The eligible person must be in receipt of a Disability Compensation Payment for incapacity from one of the following war-caused or defence-caused injuries or diseases:

• blinded in both eyes;
• blinded in both eyes together with total loss of speech or total deafness;
• both arms amputated;
• both legs amputated and one arm amputated;
• both legs amputated at the hip or one leg amputated at the hip and the other amputated in the upper third;
• injury or disease affecting the cerebro-spinal system and the Commission is of the opinion that the person has a need for the services of an attendant to assist the person; or
• injury or disease that has caused a condition similar in effect or severity to an injury or disease affecting the cerebro-spinal system and the Commission is of the opinion that the person has a need for the services of an attendant to assist the person.

Notes

1. The allowance may not be payable to a person while he or she is an in-patient at "public expense" in a hospital or other institution, or where a carer payment under the Social Security Act 1991 is payable (see the topic: “Recreation Transport Allowance”).
2. Attendant allowance is payable at the higher or lower rate depending on the type of disablement.
3. Attendant allowance is not payable if Carer Payment is being paid to a person in respect of the veteran.
4. The allowance is payable at a higher and lower rate depending on the incapacity.

Date of Introduction

1922

Original Purpose/Intent

The original intention has not changed.

Significant Changes in Criteria or Purpose Since Introduction

Legislative Authority

Veterans' Entitlements Act 1986
Section 97

Stated Current Purpose/Intent

To compensate an eligible veteran, member of the Forces, member of a Peacekeeping Force or Australian mariner for exceptional wear and tear of, or damage to, clothing.

Current Eligibility Criteria

The eligible person must be in receipt of a Disability Compensation Payment for incapacity from a war-caused or defence-caused incapacity as follows:

• one leg and one arm amputated;
• one leg or one arm amputated;
• both legs or both arms amputated;
• one leg amputated, causing essential hip disarticulation;
• blinded in both eyes; or
• an injury or disease of another kind, which causes exceptional wear and tear of, or damage to, clothing.

Notes

1. The rate payable depends on the type of incapacity.

Date of Introduction

November 1959

Original Purpose/Intent

In the period 1953-1958, representations by the Returned Service League sought the introduction of allowances, to certain categories of members, to compensate for abnormal deterioration of clothing resulting from a service-related disablement and/or the treatment thereof.

Initially resolutions of the League referred to the effects on clothing of "oils, ointments, or other substances used in the necessary treatment of accepted war disabilities".  Later resolutions referred to the damage caused by the wearing of surgical aids and appliances.

In 1958, the Commission agreed in principle that a range of allowances was warranted to meet these needs. The scheme was introduced in November 1959.

In 1967, the allowance was extended to blinded veterans who damaged their clothing because of their lack of sight.

Significant Changes in Criteria or Purpose Since Introduction

Legislative Authority

Veterans' Entitlements Act 1986
Section 102

Stated Current Purpose/Intent

To reward battle deeds and successes.

Current Eligibility Criteria

To qualify for the allowance a veteran or mariner:

• must be in receipt of a pension under Part II, or would be in receipt of such pension but for cancellation under section 124(1), or reduction under section 26;
• must not be in receipt of an allowance or gratuity from a foreign government for a similar award at the same time; and
• must have been awarded an "eligible decoration" which is one of the following decorations awarded for gallantry during a war to which the VEA applies or during war-like operations:

Imperial Honours

Victoria Cross*
George Cross
George Medal
Distinguished Service Order
Distinguished Service Cross
Military Cross
Distinguished Flying Cross
Distinguished Conduct Medal
Conspicuous Gallantry Medal
Distinguished Service Medal
Military Medal
Distinguished Flying Medal
Member of the Most Excellent Order of the British Empire (Military Division)**
Medal of the Most Excellent Order of the British Empire (Military Division) (1919-1958), and with Gallantry Emblem (1958-1974)

Australian Honours System

Victoria Cross for Australia*
Star of Gallantry
Medal for Gallantry
Cross of Valour**
Star of Courage**

*In addition to decoration allowance, Victoria Cross recipients are entitled to receive an annual Victoria Cross Allowance.

**These medals must be awarded during a war or during warlike operations covered in the VEA to qualify for the allowance.

Veterans who were admitted as a member of the Order of the British Empire or received the British Empire Medal between 1919 and 1958 will also be eligible for decoration allowance if the award was for gallantry.

Date of Introduction

Since World War I.

Original Purpose/Intent

The original intention has not changed.

Notes

1. An "eligible decoration" does not refer to a bar to such a decoration.
2. If the veteran has been paid a gratuity by Australia, a State, or an overseas country in respect of the award of an eligible decoration, no allowance will be paid until the sum of the amounts of the allowance that would have been awarded to the person under section 102 equals the amount of such gratuity.
3. After WWI, the amount was either a pension or lump sum.
4. From 1966 to 2000 the amount of $2 per fortnight was paid to disability pensioners who had been awarded a decoration for gallantry specified in section 102 and who were in receipt of a Disability Compensation Payment.  This amount was increased to $2.10 per fortnight on 1 July 2000.

Significant Changes in Criteria or Purpose Since Introduction

Legislative Authority

Veterans' Entitlements Act 1986
Section 108

Stated Current Purpose/Intent

To compensate an eligible veteran, member of the Forces, member of a Peacekeeping Force or Australian mariner, or his or her authorised attendant, authorised representative or personal legal representative, for the loss of salary, wages or earnings, due to the investigation of a claim for, or treatment of, a war-caused or defence-caused injury or disease.

Current Eligibility Criteria

An eligible veteran, member of the Forces, member of a Peacekeeping Force or Australian mariner, must be engaged in an occupation and have lost salary, wages or earnings, on his or her own account by reason of:

• undergoing treatment for an accepted disability;
• waiting for an artificial limb or surgical aid for an accepted disability; or
• investigation of or treatment related to the investigation of a claim for a Disability Compensation Payment.

An authorised attendant, authorised representative or personal legal representative, must be engaged in an occupation and have lost salary, wages or earnings, on his or her own account by assisting a claimant:

• with the investigation of his or her claim; or
• (for an authorised attendant only) to obtain treatment.

Time Limit

The time limit, prescribed in section 112(2) of the VEA, is "within 12 months of the commencement of the relevant period".

Date of Introduction

1 November 1978

Original Purpose/Intent

The intentions of sustenance allowance as they evolved after World War I formed the basis for loss of earnings allowance and temporary incapacity allowance.

Significant Changes in Criteria or Purpose Since Introduction

Legislative Authority

Veterans' Entitlements Act 1986
Section 104

Stated Current Purpose/Intent

To assist an eligible veteran, member of the Forces, member of a Peacekeeping Force or Australian mariner with the cost of transportation for recreation purposes.

Current Eligibility Criteria

A person with one of the following war-caused or defence-caused disabilities:

1. both legs amputated above the knees;
2. negligible powers of locomotion so as to be capable of moving, with the aid of crutches or walking sticks, for short distances only;
3. in the opinion of the Commission the handicap is similar with regard to locomotion to 1 or 2 above;
4. both arms amputated at or below the wrists;
5. both legs amputated below the knees;
6. one leg amputated above the knee and the other below the knee;
7. one leg amputated above or below the knee and one arm amputated below the elbow;
8. blinded in both eyes;
9. in the opinion of the Commission is incapacitated in effect or severity similar to 4, 5, 6, 7 or 8 above; or
10. in the opinion of the Commission, the handicap is similar with regard to locomotion to 4, 5, 6, 7 or 8 above.

Notes

1. Recreation transport allowance (RTA) is paid at the lower and higher rate.  Higher rate is payable for items 1-3 (inclusive) and the lower rate is payable for the other items.
2. RTA may not be payable:

• in respect of any period during which the veteran is being cared for at "public expense" in a hospital or other institution (In O'Donnell v. Repatriation Commission  [unreported, 18 October 1993], the Federal Court held: "A veteran can properly be said to be a veteran who is being cared for, at public expense, in a hospital or other institution only if it can be said of him that the expense of his care in the hospital or other institution, that is to say the whole of that expense, is being met from the public purse".); or
• in certain circumstances, where the veteran has participated in, or is participating in, the Vehicle Assistance Scheme.

Date of Introduction

1927

Original Purpose/Intent

In 1957, the Cabinet approved a recommendation by the Minister that the Repatriation Commission be empowered to provide or arrange suitable transport for recreation under Departmental medical advice for soldiers totally and permanently incapacitated as a result of spinal, head, pelvic or hip injury, organic cerebral or spinal disease, and to double amputees at or above the knee, whose means of locomotion were permanently restricted to wheeled chairs or cots.

Significant Changes in Criteria or Purpose Since Introduction

Legislative Authority

Veterans' Entitlements Act 1986
Section 107

Stated Current Purpose/Intent

This allowance was removed from the VEA from 20 September 2011.

Current Eligibility Criteria

Eligibility for this allowance was removed from the VEA with effect 20 September 2011.

Eligibility prior to 20 September 2011 was dependent on the following:

• Admission to a hospital or other institution must have been for a war-caused or defence-caused injury or disease.  Hospital or other institution included a home, hostel, medical centre, out-patient clinic, and rehabilitation or training establishment.
• The treatment must have continued for more than 28 consecutive days.  The initial treatment must have been as an in-patient, but subsequent treatment may have been as a combination of in-patient, out-patient, or rest and recuperation.  Rest and recuperation must have been on the advice of a medical practitioner.
• The treatment, not just the disabling effect of the injury or disease, must have prevented the person from continuing to undertake remunerative work.  A person who was not employed in remunerative work at the time of admission was not eligible.  The person did not need to demonstrate economic loss; it was sufficient that he or she was prevented from continuing to work.
• Temporary incapacity allowance may have been paid concurrently with loss of earnings allowance but the amount of the two allowances, combined with the amount of disability pension normally payable to the person, could not exceed the amount of the special rate pension.

Time Limit

The time limit prescribed in VEA section 112(1) is “within 12 months of the commencement of the relevant period”, ie within 12 months of the commencement of the treatment of the incapacity.

Date of Introduction

1 November 1980

Original Purpose/Intent

To provide compensation to a veteran, member of the Forces, member of a Peacekeeping Force or Australian mariner who was unable to work due to being admitted to a hospital or other institution for treatment of a war-caused or defence-caused injury or disease.

Significant Changes in Criteria or Purpose Since Introduction

Legislative Authority

Veterans' Entitlements Act 1986
Sections 115A - 115L

Veterans’ Vocational Rehabilitation Scheme Instrument 1997 No.5

Current Eligibility Criteria

Most people with eligible service under the VEA can apply for assistance under the VVRS.  This includes the following types of service:

• Operational;
• Peacekeeping;
• Hazardous;
• Eligible Defence Service (generally means at least three years continuous full time service during the period 7 December 1972 to 6 April 1994); and
• British Nuclear Test Defence service (between certain periods from 1952 to 1965).

Commonwealth veterans, allied veterans or allied mariners in receipt of invalidity service pension can also apply to the VVRS for assistance.

Date of Introduction

1 December 1997

Original Purpose/Intent

Under the VVRS, the Repatriation Commission will provide a range of services for veterans to find, or continue in, suitable paid employment, with a particular emphasis on those separating from the Australian Defence Force, and assisting those veterans whose jobs are in jeopardy. VVRS services include advice on job-seeking, assistance with updating or upgrading skills (including help to gain recognition for on-the-job training) and assistance with finding work.

Pensioners who receive Disability Compensation Payment at the special or intermediate rate will retain all their ancillary benefits such as treatment, whilst participating in the VVRS. Disability Compensation Payments are paid at a lower rate under the VVRS equating to 100% of the general rate plus a percentage of the difference between the general rate and either the special or intermediate rate (whichever the veteran was receiving) for the first two years of employment. Over the next five years, while remaining in employment, the rate is gradually reduced to 100% of the general rate.

If the veteran leaves the workforce for any reason, including retirement, they will return to the rate of Disability Compensation Payment they were receiving prior to participating in the VVRS.

The VVRS also provides for concessional assessment of earnings for invalidity service pension recipients. Under the scheme, only 50% of their gross employment earnings are taken into account for the income test for the first two years. After the first two years, for the following five years, the proportion of the earnings used for the income test increases at a rate of 5% every six months until 100% of employment earnings is used.

Significant Changes in Criteria or Purpose Since Introduction

Nil

Legislative Authority

Veterans' Entitlements Act 1986
Section 105

Stated Current Purpose/Intent

To assist an eligible veteran, member of the Forces, member of a Peacekeeping Force or Australian mariner, by providing him or her with a motor vehicle, modifying the vehicle as necessary, and assisting with running costs and maintenance.

Current Eligibility Criteria

A person incapacitated by a war-caused or defence-caused injury or disease, as follows:

1. both legs amputated above the knee; or
2. one leg amputated above the knee and, the other leg amputated at or above the ankle and one arm amputated at or above the wrist, or
3. one leg amputated above the knee and both arms amputated at or above the wrists; or
4. complete paraplegia, to the extent that the person has insufficient power to stand or walk; or
5. a condition accepted by the Commission as being of similar effect and severity to those described at 1, 2 and 3 above.

For Vehicle Assistance Scheme purposes, a leg that is wholly or permanently useless above the knee is treated as an amputation above the knee.

The eligible person must:

• have a capacity to derive personal benefit from assistance provided under the scheme, although he or she need not necessarily drive the vehicle; and
• not be in receipt of DVA's recreation transport allowance, or a mobility allowance from the Department of Human Services; and
• not be entitled to pursue a claim under any other scheme of compensation under any Territory, State, or Commonwealth law; and
• not be a serving member of the Defence Force at the time of lodging an application for assistance.

The eligible person, or the eligible person's partner or carer must possess a valid driving licence.

Date of Introduction

1986

Original Purpose/Intent

The original intention has not changed.  The scheme was introduced to replace the old Gift Car Scheme (which was established in 1950).

Significant Changes in Criteria or Purpose Since Introduction

Legislative Authority

A New Tax System (Goods and Services Tax) Act 1999
Section 38-505

Notes

1. This benefit is administered by the Australian Taxation Office.

Stated Current Purpose/Intent

To assist eligible veterans with the cost of purchasing new cars and essential spare parts.

Current Eligibility Criteria

An eligible person is a former member of the Australian Defence Force or the armed forces of any other Commonwealth country who, as a result of service:

• has lost a leg or both arms or has had a leg or both arms rendered permanently and wholly useless; or
• is in receipt of a pension under Part II of the VEA and is a veteran (within the meaning of that Part) to whom section 24 of that Act applies.

Eligibility for GST exemption applies where:

• the motor car or replacement part is for the personal transportation of the applicant and not for resale; and
• no claim for GST exemption has been made on the purchase of a motor car within the preceding two years  (The Commissioner for Taxation has ruled that the exemption may also apply if the applicant's previously purchased vehicle has been driven more than 40,000 kilometres since purchase).

Date of Introduction

Exemption from Sales Tax was granted (1947).

GST exemptions were introduced when GST replaced Sales Tax on 1 July 2000.

Original Purpose/Intent

In 1947, in response to representations made by limbless ex-servicemen on the basis that it was impracticable for these ex-servicemen to make use of public transport.  Initially, the exemption applied only to ex-servicemen who had lost a leg as a result of their service in the armed forces.

The provision was extended in 1949 to ex-servicemen who had lost both arms, or were deemed under the Repatriation Act 1920 to have lost a leg or both arms, were totally and permanently incapacitated, blind, or had tuberculosis.

Exemption from GST was introduced when GST replaced Sales Tax on 1 July 2000.

Significant Changes in Criteria or Purpose Since Introduction

Legislative Authority

Veterans' Entitlements (Special Assistance – Motorcycle Purchase) Regulations 2001

Stated Current Purpose/Intent

To assist eligible veterans with the purchase of motorcycles and parts under the VEA.

Current Eligibility Criteria

Those eligible under the scheme are veterans who:

• receive the special rate of Disability Compensation Payment; or
• have lost a leg or both arms as a result of war or eligible defence service; or
• have a war-caused or defence-caused injury or disease which renders one leg or both arms permanently and wholly useless.

Date of Introduction

1 July 2000

Original Purpose/Intent

To provide financial assistance to eligible veterans who purchase a motor cycle for use as his or her personal transportation (whether or not as the driver).

Legislative Authority

Veterans' Entitlements Act 1986
Section 103

Stated Current Purpose/Intent

Victoria Cross Allowance is an historic reward for valour.

Current Eligibility Criteria

Victoria Cross recipients are entitled to receive an annual Victoria Cross allowance. The veteran may also be receiving an allowance or annuity from a foreign government for a similar award during the same period.

A bar to the Victoria Cross does not qualify the holder for an additional payment.

Notes

1. The Victoria Cross Allowance is paid in addition to any decoration allowance payable.
2. The allowance may be paid as a lump sum.  No part of this lump sum is recoverable on the death of the veteran.
3. Victoria Cross recipients and their partners are entitled each year to 25 return air trips within Australia for non-commercial purposes.

Date of Introduction

1943

Original Purpose/Intent

The original intention has not changed.

Significant Changes in Criteria or Purpose Since Introduction

Legislative Authority

Veterans' Entitlements Act 1986
Section 98A
Section 98AA

Stated Current Purpose/Intent

An automatic bereavement payment is made to the widow/er of an eligible veteran, member of the Forces, member of a Peacekeeping Force, or Australian mariner, to assist the widow/er gradually to adjust his or her financial situation, and to defray costs caused by the bereavement.

A bereavement payment to the estate of a deceased single veteran previously in receipt of a special rate or Extreme Disablement Adjustment (EDA) Disability Compensation Payment is made if the veteran died in indigent circumstances.  The bereavement payment supports the families to pay for the costs of a funeral where the deceased veteran dies without sufficient assets to pay for a funeral.

Prior to 1 January 2005, the amount of bereavement payment was the equivalent of six pension instalments up to a maximum of 100 per cent of the general rate.

From 1 January 2005, the amount of bereavement payment is the equivalent of six times the actual rate of Disability Compensation Payment.

Current Eligibility Criteria

Pensioner was a member of a couple

The deceased person must have been:

• a member of a couple; and
• receiving a Disability Compensation Payment.

Pensioner was single

The deceased person must have:

• not been a member of a couple;
• been receiving a special rate or EDA Disability Compensation Payment; and
• died in indigent circumstances.

Notes

1. Bereavement payments are also payable in respect of income support pensions.  In this case seven pension instalments are paid to the widow/er (see Income Support Bereavement Payment [56]).

Date of Introduction

1 January 1990

Original Purpose/Intent

The original purpose has not changed.

Significant Changes in Criteria or Purpose Since Introduction

Legislative Authority

Veterans' Entitlements Act 1986
Section 99 (eligibility)
Section 98B (benefit payable to estate)
Section 100 (dependants)

Stated Current Purpose/Intent

A funeral benefit, up to a maximum of $2,000, may be granted toward the cost of the funeral of an eligible veteran, member of the Forces, member of a Peacekeeping Force, Australian mariner or dependant.  It is not a grant to cover all expenses incurred.

Current Eligibility Criteria

A grant may be made towards the cost of expenses incurred in respect of the funeral of a veteran, member of the Forces, member of a Peacekeeping Force or Australian mariner:

• whose death was war-caused or defence-caused;
• who died in an institution where the member's admission had been approved, or while travelling to or from an institution, at which treatment had been approved;
• who died after being discharged from an institution where he or she was being treated for a terminal illness, where the discharge had been approved;
• who died while receiving approved treatment for a terminal illness at home, instead of at an institution; or
• who died in indigent circumstances.

An automatic grant is made to the estate of a deceased veteran, member of the Forces, member of a Peacekeeping Force or Australian mariner:

• who was in receipt of a Disability Compensation Payment at the special rate or the Extreme Disablement Adjustment rate;
• whose Disability Compensation Payment was increased under section 27 (items 1-8); or
• who was a former prisoner of war.

An additional amount may be paid towards transporting the body of a deceased veteran, member of the Forces, member of a Peacekeeping Force or Australian mariner, if the person died while absent from his or her normal place of residence.

A funeral benefit may also be payable towards the cost of the funeral of an eligible dependant who has died in indigent circumstances. The only dependants who are eligible are dependants of veterans whose death was war-caused or defence-caused, or who were in receipt of a Disability Compensation Payment at the special rate, or under section 27 (items 1-8).

Date of Introduction

1920

Original Purpose/Intent

To provide financial assistance towards funeral expenses.

Significant Changes in Criteria or Purpose Since Introduction

Legislative Authority

Veterans' Entitlements Act 1986
Section 116 (eligibility)
Section 117 (scheme)
Section 118 (benefits)

Veterans’ Children Education Scheme Instrument 1992

Stated Current Purpose/Intent

To provide financial assistance and student support services, and arrange for guidance and counselling for eligible children, to help them achieve their full potential in education, or career training.

Current Eligibility Criteria

To be eligible, a student is generally aged under 25 years and be a child of a veteran or a member of the Forces or of a Peacekeeping Force:

• who is receiving (or was receiving prior to their death) a Disability Compensation Payment:

• at the special rate;
• at the EDA rate; or
• at an increased rate because of certain amputations or blindness in one eye (items 1-6 of VEA section 27); or

• whose death was war-caused; or
• who was an Australian prisoner of war and is now deceased.

Also eligible are students whose veteran parent had operational service but whose death was not war-caused and who have also lost their other parent.  This loss may be through death or where the surviving parent is not maintaining them.

A student who is the child of a Vietnam veteran (or who is, or has been, dependent on a Vietnam veteran) but who does not qualify under any of the above criteria may be eligible in certain circumstances. The student will need to be assessed by an appropriately qualified professional and approved as a ‘eligible child’ by the Commissions.

Date of Introduction

1921

Original Purpose/Intent

The scheme was originally known as the Soldiers' Children Education Scheme (SCES).  The purpose of the scheme was to provide support services and financial assistance to children of eligible veterans and members of the Forces, to help them achieve their full educational or training potential and prepare them for suitable careers.  The Scheme was consistent with other Commonwealth education assistance schemes.

Significant Changes in Criteria or Purpose Since Introduction

Legislative Authority

Safety, Rehabilitation and Compensation Act 1988
Part II, Division 3

Stated Current Purpose/Intent

To provide income replacement for economic loss suffered by members and former members of the ADF who are incapacitated for service or work as a result of injury or disease resulting from ADF service rendered prior to 1 July 2004 and for which liability is accepted under the SRCA.

Current Eligibility Criteria

Incapacity payments under the SRCA may be made to members and former members of the ADF, including reservists, cadets and declared members, who are incapacitated for service or work as a result of an injury or disease for which liability is accepted under the SRCA.

Date of Introduction

1 December 1988

Original Purpose/Intent

The original intent has not changed.

Significant Changes in Criteria or Purpose Since Introduction

Nil

Notes

1. For incidents that happened on or after 1 July 2004, members and former members are covered by the provisions of the Military Rehabilitation and Compensation Act 2004 (MRCA).
2. Commonwealth funded superannuation benefits may affect compensation entitlements and are taken into account when calculations are made. Compensation payable may also be offset against any VEA benefits received for the same condition.
3. Incapacity payments under the SRCA include:

• full Normal Weekly Earnings (NWE) at 100 per cent of pre-injury ADF earnings for the first 45 weeks in most cases (the 45 weeks includes any periods for which compensation was paid during service);
• 75 per cent of NWE after 45 weeks; and
• when returning to work after 45 weeks an increased percentage of NWE may apply.

Legislative Authority

Safety, Rehabilitation and Compensation Act 1988
Part II, Division 1 – Section 16
Part XI, Division 2 – Sections 144A and 144B

Stated Current Purpose/Intent

Provides treatment in accordance with the VEA Treatment Principles or the MRCA Treatment Principles through the DVA Health Card arrangements.  In highly exceptional circumstances, treatment can be provided on a reimbursement basis, where the client has long term severe injuries.  It also provides reimbursement of the costs incurred in connection with a journey taken to obtain medical treatment or to attend medical examination in respect of a claim, provided the journey covered a substantial distance (i.e. at least 50 km return trip) or if the journey involved the use of public transport or ambulance services, regardless of the distance involved.

Current Eligibility Criteria

Members and former members of the ADF who require medical treatment for an injury or disease which has been recognised as being service related under the SRCA.

Date of Introduction

1 December 1988

Original Purpose/Intent

To provide compensation for the reasonable cost of medical and other treatment, which it was reasonable for the employee to obtain in respect of an injury or disease that has been accepted under SRCA.

Notes

1. There is generally no entitlement to medical and other treatment for full-time serving members because the ADF meets these expenses as a condition of service.

Significant Changes in Criteria or Purpose Since Introduction

Legislative Authority

Safety, Rehabilitation and Compensation Act 1988
Part II Division 5 Section 29

Stated Current Purpose/Intent

Household services are services of a domestic nature provided for the reasonable requirements of members and former members of the ADF who have seriously incapacitating medical conditions for which the Commonwealth has been found liable to pay compensation under the SRCA.

Current Eligibility Criteria

Assistance with household duties may be provided to a member or former member of the ADF who is unable to carry out duties of a domestic nature that are required for the proper running and maintenance of his or her household due to an accepted condition.  Such services may include cleaning around the home, washing, ironing and assistance with garden maintenance.  The services may be provided up to a weekly limit of $442.40.  However, the ability of other members of the household to carry out such tasks is considered when reasonable needs are assessed

In deciding whether there is a reasonable entitlement to compensation for household services, an assessment by a suitably qualified professional (most often an Occupational Therapist) is usually obtained.

Notes

1. The above rate of payment is applicable as at 1 July 2014 and is indexed annually on 1 July.

Date of Introduction

1 December 1988

Original Purpose/Intent

The original purpose/intent of household services is to minimise the impact of injury or disease.  This has not changed.

Significant Changes in Criteria or Purpose Since Introduction

Nil

Legislative Authority

Safety, Rehabilitation and Compensation Act 1988
Part II Division 5 Section 29

Stated Current Purpose/Intent

Attendant care services are provided for the reasonable requirements of members and former members of the ADF who have a seriously incapacitating medical condition for which the Commonwealth has been found liable to pay compensation under the SRCA. They are provided to minimise the impact of injury or disease.

Current Eligibility Criteria

Members and former members of the ADF who have a seriously incapacitating medical condition for which the Commonwealth has been found liable to pay compensation under the SRCA.

If, because of the accepted condition, attendant care is needed for personal care such as bathing, dressing, administering medications, or other similar assistance, the RCG may pay for such care up to a weekly limit of $442.40.

Notes

1. The above rate of payment is applicable as at 1 July 2014 and is indexed annually on 1 July.

Date of Introduction

1 December 1988

Original Purpose/Intent

Attendant care services are such services (other than household services, medical or surgical services or nursing care) that are required for the essential and regular personal care of the employee.  The types of services that can be covered include personal hygiene (bathing and toileting), grooming and feeding of an injured employee.

Significant Changes in Criteria or Purpose Since Introduction

Nil

Legislative Authority

Safety, Rehabilitation and Compensation Act 1988
Part III Division 1, Division 2, Division 3

Current Eligibility Criteria

Members and former members of the ADF who have suffered an injury resulting in incapacity for work or an impairment, for which the Commonwealth has been found liable to pay compensation under the SRCA and who have been assessed as having the capacity to take part in a rehabilitation program.

Date of Introduction

1 December 1988

Original Purpose/Intent

The aim of rehabilitation is to restore an injured individual to their fullest possible physical, psychological, social and vocational capabilities.

Depending on the individual's circumstances, a rehabilitation program may involve re-training the injured employee for appropriate work and modification to the workplace to facilitate his or her return to the work force.

In all cases, regardless of whether a return to employment is possible or not, other forms of rehabilitation may be provided to help the employee cope with the effects of the compensable injury or disease.  These other forms of rehabilitation may include the provision of aids and appliances, modifications to an injured member's home and/or vehicle as well as other activities designed to restore an injured person's lifestyle as close as possible to their pre-injury level.

Significant Changes in Criteria or Purpose Since Introduction

Nil

Legislative Authority

Safety, Rehabilitation and Compensation Act 1988
Part II, Division 4

Stated Current Purpose/Intent

To provide lump sum compensation benefits to those who suffer a permanent impairment as a result of an injury or disease for which there is a liability to pay compensation under the SRCA.  In some cases, lump sum compensation can also be awarded to the dependants of a member or former member of the ADF who is severely injured.

Current Eligibility Criteria

Members and former members of the ADF who have suffered a permanent impairment as a result of an injury or disease due to service rendered between 1 December 1988 and 30 June 2004 inclusive, may be entitled to a lump sum payment of compensation under the SRCA.

Date of Introduction

1 December 1988

Original Purpose/Intent

To compensate members, former members of the ADF, or their dependants, for the effects of an injury or disease for which the Commonwealth has accepted liability and which has resulted in a minimum of 10 per cent whole person impairment (WPI), or 5 per cent WPI in certain instances.

Notes

1. Additional benefits under the Defence Act 1903, known as a “severe injury adjustment” (SIA) apply only to injuries or diseases sustained or suffered between 7 April 1994 and 30 June 2004 inclusive and only where the compensable injury or disease results in at least 80 per cent WPI and has suffered an injury to the brain or spinal cord resulting in paraplegia, hemiplegia, quadriplegia, an organic brain syndrome, blindness or a condition of similar effect.
2. Generally, if a WPI is less than 10 per cent, no lump sum compensation can be paid. However, there are some exceptions to this requirement, such as for loss of hearing, loss of fingers or toes, and loss of taste or smell, where only 5 per cent WPI is required.
3. If a pension is payable under the VEA because of disability or death due to the same injury, this will be reduced to offset any other compensation paid for the same reason. If a VEA pension has already been granted, past pension payments may be taken into account when calculating a lump sum payment under the SRCA.
4. If a member or former member is permanently impaired after 1 December 1988, there may be an entitlement to a lump sum up to $243,329.42 under the SRCA. Different rates apply for injuries prior to that date.
5. Where an accepted condition results in payment of SIA, up to an additional $75,642.17 is payable under the Defence Act 1903, together with an additional amount of $81,858.18 for each dependent child.
6. Children of those who suffer “severe injuries”, or of those who die in compensable circumstances, have access to the counselling services of the Veterans' Children Education Scheme.
7. It is important to note that these payments are not “settlements” of a claim and may be payable in addition to ongoing entitlements to compensation in respect of vocational or other rehabilitation, medical and other treatment and incapacity for work.
8. Financial advice of an amount up to $1,594.94 is also available for a member who suffers a severe injury.
9. The above rates of payment are applicable as at 1 July 2014 and are indexed annually on 1 July.
10. There are offsetting provisions for pensions paid under the VEA for death or disability.

Significant Changes in Criteria or Purpose Since Introduction

Legislative Authority

Safety, Rehabilitation and Compensation Act 1988
Part II, Division 2

Stated Current Purpose/Intent

To compensate those who were wholly or partly dependent on members or former members of the Australian Defence Force (ADF) who have died as a result of an injury or disease related to service rendered between 1 December 1988 and 30 June 2004 inclusive.

Current Eligibility Criteria

The dependants of a member or former member of the ADF who dies as a result of an injury or disease for which the Commonwealth has been found to be liable to pay compensation, may be entitled to:

• Maximum lump sum compensation following death of $560,141.04 (comprising of payments under the SRCA and under the Defence Act 1903);
• a further lump sum of $81,858.18 for each dependent child is also payable under the Defence Act 1903; and
• a weekly payment under the SRCA of $138.72 for each wholly or mainly dependent child at date of death who is either under the age of 16 or under 25 and continuing in full-time education. (This is in addition to any superannuation benefits).
• Funeral expenses up to $11,267.70 are also payable.
• Financial advice of an amount up to $1,594.94 is provided to the family of a deceased member.

Notes

1. The above rates of payment are applicable as at 1 July 2014 and are indexed annually on 1 July.

Date of Introduction

1 December 1988

Original Purpose/Intent

To provide compensation for those dependent for economic support on an employee who dies in compensable circumstances.

Significant Changes in Criteria or Purpose Since Introduction

The original intent has not changed.

Legislative Authority

Military Rehabilitation and Compensation Act 2004
Chapter 3

Stated Current Purpose/Intent

The aim of rehabilitation is to maximise the potential to restore a person who has an impairment, or an incapacity for service or work, as a result of a service injury or disease to at least the same physical and psychological state, and at least the same social, vocational and educational status, as he or she had before the injury or disease.

Current Eligibility Criteria

Rehabilitation under the MRCA will be available to a member or former member of the ADF and cadets who:

• has an impairment as a result of an injury or disease for which liability has been accepted under the MRCA (ie. the condition is accepted as related to ADF service rendered on or after 1 July 2004); or
• is incapacitated for service or work as a result of an injury or disease for which liability has been accepted under the MRCA.

Notes

1. The Chief of the Defence Force is responsible for rehabilitation whilst the person is serving as a member of the Permanent Force or the Reserves.
2. The Military Rehabilitation and Compensation Commission (MRCC) is responsible for the rehabilitation of:

• former ADF members
• cadets
• declared members
• certain persons holding honorary rank or appointment
• certain accredited representatives of a registered charity
• certain persons receiving assistance under the Career Transition Assistance Scheme; and
• serving members identified for medical discharge.

Legislative Authority

Military Rehabilitation and Compensation Act 2004
Chapter 4 Part 2
Section 67 (Guide to determining impairment and compensation)
Section 68 (entitlement to compensation for permanent impairment)
Section 71 (additional permanent impairment compensation)
Section 74 (amount of compensation)
Section 75 (interim compensation)
Section 78 (choice to take a lump sum)

Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004
Section 13 (Bringing across impairment points from a VEA or SRCA injury or disease)

Stated Current Purpose/Intent

Permanent impairment compensation is a tax-free, non-economic loss payment to compensate a member or former member for permanent impairment arising from injury or disease for which liability has been accepted.

It can be paid as a periodic payment (a maximum weekly amount of $324.60), a lump sum payment based on the weekly amount or a combination of the two. Lump sum payments are age-based, that is, for a given level of permanent impairment they are constant up to age 30 for males and age 35 for females and will reduce after those ages according to a formula provided by the Australian Government Actuary.  The degree of impairment is assessed using a modified version of GARP V used for VEA claims.  The assessment guide specifies different methods for combining the impairment points and lifestyle rating for conditions related to warlike and non-warlike service as opposed to conditions related to peacetime service.

Current Eligibility Criteria

To be eligible a person must have an injury or disease:

• which has been accepted as related to service in the ADF rendered on or after 1 July 2004 which results in a permanent impairment; and
• the level of impairment for all compensable injuries and is assessed at 10 points or more (or five points for hearing loss, loss of fingers or toes, and loss of taste or smell)

Notes

1. Interim compensation is payable where the level of permanent impairment cannot be ascertained because the condition has not stabilised.  The amount of an interim impairment payment is determined on the best estimate of the final level of impairment and from 1 July 2013 include an imputed lifestyle effects.
2. Additional permanent impairment compensation is payable where permanent impairment from accepted injury or disease worsens or where liability for another injury or disease resulting in a permanent impairment is accepted.  Additional permanent impairment compensation is payable where permanent impairment has increased by 5 points or more.
3. The above rate of payment is applicable as at 1 July 2014 and is indexed annually on 1 July.

Date of Introduction

1 July 2004

Original Purpose/Intent

The original intention has not changed.

Significant Changes in Criteria or Purpose Since Introduction

Legislative Authority

Military Rehabilitation and Compensation Act 2004
Chapter 4 Part 2 Section 80

Stated Current Purpose/Intent

To provide additional compensation to members and former members who are severely impaired as a result of ADF service rendered on or after 1 July 2004 to support their dependent children. It is based on a similar payment made under Defence Determination 2003/21 for members severely injured as a result of service between 10 June 1997 and 1 July 2004.

Current Eligibility Criteria

A tax free lump sum payment of $83,564.41 is paid for each dependant who is an eligible young person dependent on a member or former member entitled to the maximum amount of permanent impairment compensation (impairment assessed at 80 points or more).  The young person must have been wholly or partly dependent on the member or former member at the date the claim for acceptance of liability for the condition was made or, the date the Commission  determined that the degree of impairment was 80 points or more.

Notes

1. The above rate of payment is applicable as at 1 July 2014 and is indexed annually on 1 July.

Date of Introduction

1 July 2004

Original Purpose/Intent

The original intention has not changed.

Significant Changes in Criteria or Purpose Since Introduction

Nil

Legislative Authority

Military Rehabilitation and Compensation Act 2004
Chapter 4 Parts 3, 4 and 5

Stated Current Purpose/Intent

To provide income replacement for economic loss where members and former members are incapacitated for service or work as a result of injury or disease for which liability is accepted under the MRCA.

Current Eligibility Criteria

Incapacity payments may be made to members and former members of the ADF, including reservists, cadets and declared members, who are incapacitated for service or work as a result of an injury or disease for which liability is accepted.

Notes

1. Incapacity payments are paid when normal earnings exceed actual earnings, up to Age Pension age [72].
2. Incapacity payments are taxable where they replace taxable earnings and non-taxable where they replace non-taxable earnings.
3. Incapacity payments are calculated by looking at what a member would normally earn prior to the injury that causes the incapacity and any amount that is actually earned whilst incapacitated. If the amount actually earned is less than the amount that is normally earned, incapacity payments will cover that difference.
4. Where the normal earnings of discharged ADF members are based on full-time ADF pay and allowances, a remuneration loading of $152.01 per week is added to compensate for the loss of non-salary benefits you received whilst serving in the ADF.  This amount is indexed annually to the percentage increase in the ADF Workplace Remuneration Arrangement.
5. In the case of a Permanent Force member, normal earnings are calculated against the member's service earnings. In the case of Reserve members, normal earnings are calculated against either civilian or reserve earnings or a combination of both. In all cases, the normal earnings are calculated by looking at what the member was earning at the time of the injury/disease, for serving members, or what was earned at the date of discharge for former members. Special rules apply in calculating payments for school cadets.
6. Incapacity payments are offset dollar for dollar by the Commonwealth funded component of superannuation a member receives.
7. The above rate of payment is applicable as at 1 July 2014 and is indexed annually on 1 July.

Date of Introduction

1 July 2004

Original Purpose/Intent

The original intention has not changed.

Significant Changes in Criteria or Purpose Since Introduction

Legislative Authority

Military Rehabilitation and Compensation Act 2004
Chapter 4 Part 6
Sections 197 to 210

Stated Current Purpose/Intent

The SRDP is a tax-free compensation payment for life that can be provided instead of incapacity payments for people whose capacity for work has been severely curtailed because of injury or disease accepted as related to ADF service rendered on or after 1 July 2004.

The SRDP rate of payment is based on the special rate (T&PI) of disability compensation payment provided under the VEA. It is reduced on a dollar-for-dollar basis by the weekly amount of permanent impairment compensation payable. This ensures that the Commonwealth pays compensation for permanent impairment once only. The residual SRDP payment is then offset by the Commonwealth-funded component of superannuation the person is receiving at a rate of 60 cents in the dollar.

Current Eligibility Criteria

To be offered the choice of receiving incapacity payments or SRDP a person must:

• have an impairment from an injury or disease accepted as related to MRCA service which is assessed at 50 or more points and is likely to continue indefinitely;
• be in receipt of incapacity payments or have had his or her incapacity payments reduced to nil (because of Commonwealth superannuation offsetting or because he or she has received a lump sum of incapacity payments); and
• be assessed as:

• unable to undertake paid work for more than 10 hours a week; and
• unlikely to be assisted by rehabilitation to undertake paid work for more than 10 hours a week.

Notes

1. SRDP rate of payment is linked to the VEA special rate amount but is offset by:
2. Commonwealth funded component of superannuation the person receives at the rate of 60 cents for each dollar of SRDP; and permanent impairment compensation received at the rate of dollar for each dollar of SRDP.
3. SRDP is tax-free and can be paid for life.
4. A person who meets the criteria for SRDP and is asked to make a choice between this payment and incapacity payments, has 12 months to choose. Once a choice is made, it cannot be changed.
5. A person making the choice to take SRDP instead of incapacity payments must seek financial advice about this before making the choice.
6. Compensation of up to $2,464.80 is available for the cost of financial and legal advice obtained from a suitably qualified person.
7. SRDP is offset by 60 cents for each dollar of the Commonwealth funded component of superannuation a person receives.
8. The above rate of payment is applicable as at 1 July 2014 and is indexed annually on 1 July.

Date of Introduction

1 July 2004

Original Purpose/Intent

The original intention has not changed.

Significant Changes in Criteria or Purpose Since Introduction

Legislative Authority

Military Rehabilitation and Compensation Act 2004
Chapter 4 Part 2 Section 81
Chapter 4 Part 6 Section 205
Chapter 5 Part 2 Division 3 Sections 239 to 241

Stated Current Purpose/Intent

A tax-free payment in the nature of reimbursement to eligible persons who incur costs in seeking financial and legal advice connected with making permanent impairment, SRDP or compensation following death payment choices.  This is intended to enable the eligible person to obtain professional financial and legal advice in order to decide which payment option best suits his or her individual circumstances.  The maximum amount payable for any single payment choice is $2,464.80.  The payment is based on a similar payment made under Defence Determination 2003/21 for severe injury or death related to service between 10 June 1997 and 1 July 2004.

Notes

1. The above rate of payment is applicable as at 1 July 2014 and is indexed annually on 1 July.

Current Eligibility Criteria

To be eligible a person must have obtained financial advice in relation to making the choice between:

• where permanent impairment is assessed at or above 50 points, permanent impairment compensation paid as a lump sum, periodic payments or a combination;
• SRDP and incapacity payments;
• taking the compensation following death as a lump sum or as periodic payments (wholly dependent partners).

Date of Introduction

1 July 2004

Original Purpose/Intent

The original intention has not changed.

Significant Changes in Criteria or Purpose Since Introduction

Legislative Authority

Military Rehabilitation and Compensation Act 2004
Chapter 4 Part 7 Division 2 Section 212

Stated Current Purpose/Intent

Section 212 enables the MRCC to establish a scheme called the Motor Vehicle Compensation Scheme for payment of vehicle modifications (and vehicle purchase in some circumstances) reasonably required because of injury or disease for which liability has been accepted under the MRCA.

Current Eligibility Criteria

To be eligible for assistance, a member or former member must:

• have suffered an impairment from an injury or disease for which liability has been accepted which results in the person being unable to drive or be driven in a motor vehicle in safety and comfort without modifications to their vehicle;
• be considered able to drive or derive a benefit from using the motor vehicle at least twice a week.

The benefits of a vehicle to the member's or former member's physical and mental health, and the level of mobility without access to the motor vehicle are taken into account.

Assistance under the Scheme is not provided to a resident of a care institution (nursing home, hostel etc) who is not capable of leaving the institution.

Date of Introduction

1 July 2004

Original Purpose/Intent

The original intention has not changed.

Significant Changes in Criteria or Purpose Since Introduction

Nil

Legislative Authority

Military Rehabilitation and Compensation Act 2004
Chapter 4 Part 7 Division 3
Sections 213, 214, 215 and 216

Stated Current Purpose/Intent

A tax-free payment to compensate for the costs incurred by an eligible member or former member needing assistance with household running and maintenance (such as cooking, house cleaning, laundry and gardening) because of an injury or disease for which liability is accepted.

Current Eligibility Criteria

The reasonable costs of household care reasonably required up to a maximum of $459.61 per week is payable where:

• a member or former member has an injury or disease for which liability has been accepted; and
• he or she needs help with household tasks which they are no longer able to do because of the accepted injury or disease.

Notes

1. The above rate of payment is applicable as at 1 July 2014 and is indexed annually on 1 July.

Date of Introduction

1 July 2004

Original Purpose/Intent

The original intention has not changed.

Significant Changes in Criteria or Purpose Since Introduction

Nil

Legislative Authority

Military Rehabilitation and Compensation Act 2004
Chapter 4 Part 7 Division 3
Sections 213, 217, 218 and 219

Stated Current Purpose/Intent

A tax-free payment to compensate for the costs incurred by an eligible member or former member needing attendant care because of an injury or disease for which liability is accepted.

Current Eligibility Criteria

The costs of attendant care reasonably required up to a maximum of $459.61 per week  is payable where:

• a member or former member has an injury or disease for which liability has been accepted; and
• he or she needs help with personal care which they are no longer able to do because of the accepted injury or disease.

Notes

1. The above rate of payment is applicable as at 1 July 2014 and is indexed annually on 1 July.

Date of Introduction

1 July 2004

Original Purpose/Intent

The original intention has not changed.

Significant Changes in Criteria or Purpose Since Introduction

Nil

Legislative Authority

Military Rehabilitation and Compensation Act 2004
Chapter 4 Part 7 Division 4 Sections 221 to 225
Chapter 5 Part 2 Division 5 Sections 245 to 249
Chapter 6 Part 4 Division 4 Sections 300 to 303

Stated Current Purpose/Intent

To assist eligible members and wholly dependent partners of deceased members, the allowance is based on the Supplement provided under the VEA and replaces the former telephone and pharmaceutical allowances. The MRCA Supplement is payable at a rate of either $6.20 (low rate) per fortnight or $12.40 (high rate) per fortnight, depending on eligibility.

Notes

1. The above rates of payment are applicable as at 1 January 2015 and are indexed annually on 1 January.

Current Eligibility Criteria

The following are eligible for MRCA Supplement:

• members eligible for treatment under Chapter 6 Part 3;
• members eligible for SRDP;
• members eligible for maximum permanent impairment compensation (assessed at 80 points or more); or
• wholly dependent partners of deceased members eligible for a compensation following death under the MRCA.

Date of Introduction

1 July 2004

Original Purpose/Intent

The original purpose has not changed.

Significant Changes in Criteria or Purpose Since Introduction

Legislative Authority

Military Rehabilitation and Compensation Act 2004
Chapter 5 Part 2 Division 2 Paragraph 234(1)(b)

Stated Current Purpose/Intent

To compensate the wholly dependent partner of a member or former member whose service rendered on or after 1 July 2004 has caused or contributed to his or her death. The entitlement is a tax-free payment based on rate of payment of the VEA war widow(er)'s pension, and can be taken as a periodic payment (currently $434.00 per week, paid fortnightly, as at 20 September 2014) or its age-based lump sum equivalent.

Current Eligibility Criteria

This is payable to a wholly dependent partner of a deceased member where:

• liability for the member's death has been accepted; or
• the deceased member satisfied the criteria for receiving a SRDP during some period of his or her life; or
• the deceased member's permanent impairment immediately before his or her death is assessed at 80 or more points.

Notes

1. A wholly dependent partner is a person who was married to, or in a marriage-like relationship (including a same sex relationship) with the member immediately before the member's death; and was wholly dependent on the member for economic support.
2. A partner living with the member immediately before the member's death is deemed as being wholly dependent on the member for economic support without having to establish the dependency for economic support.
3. A partner is also deemed as being wholly dependent where the couple were temporarily living apart or were living apart due to illness of either or both of them immediately before the member's death.
4. Financial and legal advice compensation is provided to defray the costs of advice obtained in connection with making the choice of taking the compensation following death as a lump sum, periodic payments, or a combination of the two – see Financial and Legal Advice Compensation [80].

Date of Introduction

1 July 2004

Original Purpose/Intent

The original intention has not changed.

Significant Changes in Criteria or Purpose Since Introduction

Legislative Authority

Military Rehabilitation and Compensation Act 2004
Chapter 5 Part 2 Division 2 Paragraph 234(1)(a)

Stated Current Purpose/Intent

To provide additional tax-free compensation in a lump sum to the wholly dependent partner of a member or former member whose death is accepted as related to service rendered on or after 1 July 2004.

Current Eligibility Criteria

The additional compensation following death is payable to a wholly dependent partner of a deceased member where liability for the member's death has been accepted. The payment is age‑based with the maximum payment currently being $139,274.03.

Notes

1. See the topic: Periodic Payment - Compensation Following Death for Wholly Dependent Partners [82] for a description of what constitutes a wholly dependent partner.
2. The above rate of payment is applicable as at 1 July 2014 and is indexed annually on 1 July.

Date of Introduction

1 July 2004

Original Purpose/Intent

This is an enhancement of the additional compensation following death available under Defence Determination 2003/21 to wholly dependent partners of members whose death on or after 10 June 1997 is accepted as related to service before 1 July 2004.

The original intention has not changed.

Significant Changes in Criteria or Purpose Since Introduction

Legislative Authority

Military Rehabilitation and Compensation Act 2004
Chapter 5 Part 2 Division 4 Sections 242 and 243
Chapter 5 Part 3 Division 4 Sections 255 and 256

Stated Current Purpose/Intent

To provide financial assistance to wholly dependent partners or eligible young persons, dependent on deceased members who were entitled to MRCA compensation, to assist with the financial demands following the member's death.

Current Eligibility Criteria

A wholly dependent partner of a deceased member is entitled to a bereavement payment where the deceased member was receiving or was entitled to receive incapacity payments, permanent impairment periodic payments or the SRDP safety net payment at the time of death.

Notes

1. There is no bereavement payment payable in respect of permanent impairment payments paid as a lump sum or in respect of lump sum redemption of incapacity payments.
2. If there is more than one wholly dependent partner, the payment is split between the partners having regard to the relative loss of financial support each partner has suffered as a result of the member's or former member's death.
3. If there is no wholly dependent partner, the bereavement payment can be made to eligible young person dependants of the deceased member.
4. The payments is equal to 12 instalments of the weekly amount of incapacity payments, permanent impairment periodic payments and/or SRDP payments that the deceased member was receiving or entitled to receive in the week before the week of the death.

Date of Introduction

1 July 2004

Original Purpose/Intent

The original intention has not changed.

Significant Changes in Criteria or Purpose Since Introduction

Nil

Legislative Authority

Military Rehabilitation and Compensation Act 2004

Stated Current Purpose/Intent

To compensate eligible young persons who were dependent on a member or former member whose service on or after 1 July 2004 caused or contributed to his or her death. The entitlement is a tax-free payment.

Current Eligibility Criteria

An eligible young person who was wholly or partly dependent on a member of former member immediately before that person's death is entitled to a tax-free lump sum compensation payment (currently $83,564.41) where:

• liability for the member's death has been accepted; or
• the deceased member satisfied the criteria for receiving a SRDP during some period of their life; or
• the deceased member's permanent impairment immediately before their death was assessed at 80 or more points.

Notes

1. The above rate of payment is applicable as at 1 July 2014 and is indexed annually on 1 July.
2. Eligible young persons who are dependants of a member are taken to be wholly dependent on the member if they normally lived with the member at the time of the member's death. Allowance is made for temporary absences or where the member and the eligible young person are living apart due to illness. A temporary absence may include one for educational purposes. A son or daughter of the member who was born after the member's death may be regarded as an eligible young person who was wholly dependent on the member.
3. A dependant of a member who is an eligible young person is someone who:

• is under 16; or
• between 16 and 25, undertaking full-time education and not ordinarily engaged in full-time work on his or her own account; and
• is a dependant of the member – that is, is one of the people listed in the definition of dependant (except a partner) – ie. a son, daughter, step-son, step-daughter, grandson, grand-daughter, brother, sister, half-brother or half-sister); and
• was wholly or partly dependent on the member for economic support immediately before the member's death or would have been but for the incapacity of the member from an injury or disease.

Date of Introduction

1 July 2004

Original Purpose/Intent

The entitlement is based on the payment under SRCA made in respect of dependent children of members whose death on or after 10 June 1997 is accepted as related to service before 1 July 2004.

The original intention has not changed.

Significant Changes in Criteria or Purpose Since Introduction

Nil

Legislative Authority

Military Rehabilitation and Compensation Act 2004
Chapter 5 Part 3 Division 3
Sections 253 and 254

Stated Current Purpose/Intent

To provide additional compensation to wholly or mainly dependent children of a member or former member whose service on or after 1 July 2004 has caused or contributed to his or her death or severe injury. The entitlement is a tax-free payment of $138.99 per week.

Notes

1. The above rate of payment is applicable as at 1 July 2014 and is indexed annually on 1 July.

Current Eligibility Criteria

Eligible young person dependants who were wholly or mainly dependent on the deceased member immediately before his or her death are entitled to the lump sum compensation following death.

Date of Introduction

1 July 2004

Original Purpose/Intent

The entitlement is based on the SRCA payment for eligible dependent children of deceased members.

The original intention has not changed.

Significant Changes in Criteria or Purpose Since Introduction

Nil

Legislative Authority

Military Rehabilitation and Compensation Act 2004
Chapter 5 Part 4 Sections 262 and 263

Stated Current Purpose/Intent

To compensate family members (other than wholly dependent partners and eligible young persons) who were wholly or partly dependent on a member or former member, whose service on or after 1 July 2004 relates to his or her death.  The entitlement is a tax-free payment.

Current Eligibility Criteria

Dependants as defined in section 15 of the MRCA (other than wholly dependent partners and eligible young person dependants) who were wholly or partly dependent on a deceased member for economic support immediately before his or her death are eligible for compensation where:

• liability for the member's death has been accepted; or
• the deceased member satisfied the criteria for receiving a SRDP during some period of their life; or
• the deceased member's permanent impairment immediately before their death was assessed at 80 or more points.

Notes

1. Those who may qualify include a member's father, mother, step-father, step-mother, grandfather, grandmother, son, daughter, step-son, step-daughter, grandson, grand-daughter, brother, sister, half-brother or half-sister.  Additionally the father, mother, step-father, step-mother, son, daughter, step-son or step-daughter of the member's partner may be regarded as a dependant of the member. Others who may qualify are those for whom the member is regarded as the parent and those who are regarded as the parent of the member.
2. A tax-free lump sum of up to $264,620.66 is available for distribution amongst all wholly or partly dependent other dependants with a maximum of $83,564.41 per person.
3. The above rates of payment are applicable as at 1 July 2014 and are indexed annually on 1 July.
4. The amount payable to each individual is calculated having regard to:

• the financial losses suffered by each dependant as a consequence of the member's death;
• the degree of their dependency on the member; and
• the length of time the dependant would have remained dependent on the member but for the members' death.

Date of Introduction

1 July 2004

Original Purpose/Intent

The entitlement is based on the payment under SRCA made in respect of other dependants.

The original intention has not changed.

Significant Changes in Criteria or Purpose Since Introduction

Nil

Legislative Authority

Military Rehabilitation and Compensation Act 2004
Chapter 5 Part 5
Sections 265 to 268

Stated Current Purpose/Intent

Funeral assistance is a one-off payment to assist with the costs of the funeral of an eligible member.

Current Eligibility Criteria

Compensation of up to $11,267.70 is available for the cost of the funeral of a deceased member where:

• liability for the deceased member's death has been accepted under the MRCA;
• the deceased member satisfied the criteria for receiving SRDP during some period of his or her life; or
• the deceased member was entitled to maximum permanent impairment compensation for accepted conditions immediately before his or her death (i.e. assessed at or above 80 points).

Notes

1. The ADF currently bears the cost of a military funeral of ADF members who die in-service if the family choose to have a military funeral.  If the cost is borne by the ADF, no funeral assistance is payable under the MRCA.
2. The above rate of payment is applicable as at 1 July 2014 and is indexed annually on 1 July.

Date of Introduction

1 July 2004

Original Purpose/Intent

The payment is based on the funeral expense compensation available under Defence Determination 2003/21.

The original intention has not changed.

Significant Changes in Criteria or Purpose Since Introduction

Nil

Legislative Authority

Military Rehabilitation and Compensation Act 2004
Chapter 6 Parts 2 and 3
Sections 271 to 284

Stated Current Purpose/Intent

To provide health care benefits:

• to eligible members and former members for treatment of injury or disease accepted as related to service;
• to eligible members and former members seriously affected by service related injury or disease for treatment of all conditions;
• to wholly dependent partners and wholly or mainly dependent eligible young persons eligible for compensation for the member's death under the MRCA.

Eligibility Criteria

Treatment is available under the MRCA for:

• ADF members who have conditions for which liability is accepted under the MRCA who have discharged from the ADF or are not currently serving in a full-time capacity, and
• wholly dependent partners and dependent eligible young persons of deceased members who are eligible for compensation for the member's death under the MRCA.

Notes

1. DVA will provide a Repatriation Health Card - For Specific Conditions (White Card) to a former member or entitled serving member to obtain treatment from an approved DVA health provider for an injury or disease for which liability has been accepted under the MRCA. A delegate of the MRCC must make an assessment of their needs and be satisfied that the accepted injury or disease is chronic and requires ongoing long-term treatment.
2. In exceptional circumstances DVA will pay for the reasonable costs of treatment for a former member or eligible serving member who has an injury or disease for which liability has been accepted under the MRCA; and, after an assessment of their needs, a MRCC delegate has determined that the treatment is required for one-off payment to cover the initial acute phase of an injury or disease, or the accepted condition(s) require only a one-off treatment.
3. DVA will provide a Repatriation Health Card — For All Conditions (Gold Card) for treatment of all conditions by an approved DVA health provider where permanent impairment from accepted conditions is assessed at or above 60 points; or a member meets the criteria for the SRDP (even if they don’t choose to take it); or a wholly dependent partner or dependent eligible young person entitled to compensation for the member’s death.
4. Some Gold Card and White Card eligibility remains available under the VEA for service on or after 1 July 2004 if the person is not otherwise entitled under the MRCA.
5. Under MRCA Chapter 6 Part 4 Division 2, the Commonwealth is liable to pay compensation for any costs reasonably incurred in respect of a journey made by a person to obtain necessary treatment for a compensable injury or disease or to attend a medical examination regarding a claim.  Where the Commission has given approval for an attendant to accompany the patient on a journey made to obtain reasonable treatment for a compensable injury or disease, the Commonwealth is also liable to pay the costs reasonably incurred by the attendant for that journey. 
   ('Reasonable costs' means that if the journey was by means other than public transport, i.e. ambulance, taxi etc, it was reasonable for the patient and the attendant to travel by such means.)

Date of Introduction

1 July 2004

Original Purpose/Intent

The original intention has not changed.

Significant Changes in Criteria or Purpose Since Introduction

Legislative Authority

Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006
Part 2

Stated Current Purpose/Intent

To provide health care benefits to Australian participants in the British Nuclear Tests in Australia in the 1950s and 1960s and to Australian members of the British Commonwealth Occupation Force in Japan after the end of the Second World War.

Eligibility Criteria

Treatment is available under the BNT/BCOF Act for:

• ADF members (BCOF participants) who served in Japan after the end of the Second World War as part of the British Commonwealth Occupation Force
• ADF members (BNT participants) who served in support of the British Nuclear Tests in Australia
• civilians (BNT participants) who either supported the British Nuclear Tests in Australia (eg contractors, Commonwealth employees) or who were otherwise potentially exposed to ionising radiation resulting from the British Nuclear Tests in Australia (eg pastoralists, indigenous people).

BCOF participant and BNT participant are defined terms in the legislation. 

Notes

1. Treatment is provided through a Gold Card. 
2. The Gold Card issued under the BNT/BCOF Act provides identical treatment to Gold Cards issued under the VEA and the MRCA.

Date of Introduction

1 July 2017

Original Purpose/Intent

The original intention has not changed.

Legislative Authority

Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006
Section 23B (eligibility)
Section 23C (payability)
Section 23D (rate)

Stated Current Purpose/Intent

To assist eligible Gold Card holders under the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006 in meeting the cost of prescription medications. 

Current Eligibility Criteria

All Gold Card holders under the Act who are Australian residents and who do not receive a precluding payment and who are either in Australia or temporarily (less than 26 weeks) outside Australia.

Precluding payments are:

• Veterans Supplement
• MRCA Supplement
• Service Pension
• Pharmaceutical allowance or pension supplement under the Social Security Act 1991
• War Widow(er) Pension
• Wholly Dependent Partner payment (including lump sums) under the MRCA

Date of Introduction

1 July 2017.

Notes

1. Pharmaceutical Supplement is paid fortnightly.
2. The payment rate is set as equal to the rate of Veterans Supplement under section 118C of the Veterans' Entitlements Act 1986.
3. The payment is non-taxable.

Veterans

Note: Previously, the male and female pension ages differed and was being equalised. Age equalisation for female veterans and female non-veterans was reached on 1 January 2014.

Non-veterans

From 1 July 2017, the Age Pension Age [72] for non-veterans will increase by six months every two years until it reaches 67 years on 1 July 2023.

Note: Previously, the male and female pension ages differed and was being equalised. Age equalisation for female veterans and female non-veterans was reached on 1 January 2014.

Legislative Authority

Treatment Benefits (Special Access) Act 2019
Section 28 (eligibility)
Section 30 (rate)
Section 31 (payability)

Stated Current Purpose/Intent

To assist eligible Gold Card holders under the Treatment Benefits (Special Access) Act 2019 in meeting the cost of prescription medications. 

Current Eligibility Criteria

All Gold Card holders under the Act who are Australian residents and who do not receive a precluding payment and who are either in Australia or temporarily (less than 26 weeks) outside Australia.

Precluding payments are:

• Veterans Supplement
• MRCA Supplement
• Pharmaceutical allowance or pension supplement under the Social Security Act 1991
• Wholly Dependent Partner payment (including lump sums) under the MRCA
• War Widow(er) Pension
• Service Pension
• Veteran Payment
• Pharmaceutical Supplement under BNT/BCOF Act

Date of Introduction

1 July 2019

Notes

1. Pharmaceutical Supplement is paid fortnightly.
2. The payment rate is set as equal to the rate of Veterans Supplement under section 118C of the Veterans' Entitlements Act 1986.
3. The payment is non-taxable.