11.4 Ceasing incapacity payments at Age Pension age

Section 23(1) of the DRCA provides that weekly incapacity compensation is not payable under section 19, 20, 21, 21A or 22 to a person who has reached age pension age. Section 120 [1] of the MRCA provides that weekly incapacity compensation is not payable under section 118 [2] to a person who has reached age pension age.*  However other forms of compensation (e.g. medical expenses, permanent impairment, household care) still continue to be payable.

Former employees under the DRCA may continue to receive incapacity compensation after age pension age, at a reduced rate calculated under S134 [3].

Incapacity payments may continue past age pension age where the person was injured after reaching an age that is that is 2 years before age pension age.  In these circumstances, S23(1A) [4] of the DRCA and section 121 [5] of the MRCA provides that incapacity compensation may be paid for a maximum of 104 weeks (whether consecutive or not) after injury.

*Note: Under the MRCA, incapacity payments may continue past age pension age where the person remains a member of the ADF, including serving and inactive/standby Reserve members. This is becasue the age pension age provision of MRCA (s121) applies to a person who is paid under section 118 'Compensation for incapacitated former members.' There is no provision to cease payment based on age for a serving member of the ADF.