B Military Rehabilitation and Compensation Bill 2003

Military Rehabilitation and Compensation Act 2004

No. 51, 2004

An Act to provide rehabilitation, compensation and other entitlements for veterans, members and former members of the Defence Force, and for other purposes

[Assented to 27 April 2004]

The Parliament of Australia enacts:

Chapter 1—Introduction

1 Short title

This Act may be cited as the Military Rehabilitation and Compensation Act 2004.

2 Commencement

(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

Commencement information
Column 1	Column 2	Column 3
Provision(s)	Commencement	Date/Details
1. Sections 1 and 2 and anything in this Act not elsewhere covered by this table	The day on which this Act receives the Royal Assent.	27 April 2004
2. Sections 3 to 359	A single day to be fixed by Proclamation. However, if any of the provision(s) do not commence within the period of 6 months beginning on the day on which this Act receives the Royal Assent, they commence on the first day after the end of that period.	1 July 2004 (Gazette 2004, No. GN22)
3. Sections 360 to 385	The day on which this Act receives the Royal Assent.	27 April 2004
4. Sections 386 to 440	At the same time as the provision(s) covered by table item 2.	1 July 2004

Note: This table relates only to the provisions of this Act as originally passed by the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.

(2) Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act.

3 Simplified outline of this Act

This Act provides for compensation and other benefits to be provided for current and former members of the Defence Force who suffer a service injury or disease. The Act also provides for compensation and other benefits to be provided for the dependants of some deceased members.

Before most benefits can be paid or provided, the Commission must accept liability for an injury, disease or death of a current or former member under Chapter 2. Chapters 3 to 6 set out what the benefits are.

The procedure for dealing with claims under this Act is dealt with under Chapters 7 and 8. The Military Rehabilitation and Compensation Commission and the administration of the Act are dealt with in Chapters 9 to 11.

Provisions in this Act might be affected by the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004.

A person who is entitled to a benefit under this Act might also be entitled to a pension, allowance or other benefit under the Veterans’ Entitlements Act 1986. This might include the following:

(a) a service pension under Part III of that Act;

(b) treatment under Part V of that Act;

(c) an allowance such as a telephone allowance, a pharmaceutical allowance, a Victoria Cross allowance or Income Support Supplement;

(d) a funeral benefit.

4 Extension to external Territories

This Act extends to every external Territory.

5 Definitions

In this Act:

actual earnings:

(a) in Part 3 of Chapter 4—has the meaning given by subsection 89(3); and

(b) in Part 4 of Chapter 4—has the meaning given by subsection 132(1).

aggravated injury or disease means an injury or disease that is a service injury or disease because of paragraph 27(d), subsection 29(2) or section 30 (aggravations etc.) (and only because of that paragraph, subsection or section).

appointed Commission member means a Commission member described in paragraph 364(1)(b).

approved program provider has the meaning given by section 41.

approved rehabilitation program has the meaning given by section 41.

attendant care services has the meaning given by section 213.

Australian Defence Force cadets means:

(a) the Australian Navy Cadets established by the Naval Defence Act 1910; and

(b) the Australian Army Cadets established by the Defence Act 1903; and

Board means the Veterans’ Review Board constituted under the Veterans’ Entitlements Act 1986.

cadet means a member of the Australian Defence Force cadets.

civilian work means work other than as a member of the Defence Force.

claimant means a person who has made a claim under section 319.

Commission means the Military Rehabilitation and Compensation Commission established by section 361.

Commission Chair means the Chair of the Commission.

Commission member means a member of the Commission (including the Commission Chair).

Commonwealth superannuation scheme means:

(a) if a person’s normal earnings are worked out (or would be worked out if the person had not chosen a Special Rate Disability Pension) under:

(i) Subdivision D of Division 4 of Part 4 of Chapter 4; or

(ii) Division 5 of Part 4 of Chapter 4; or

(iii) Subdivision D of Division 8 of Part 4 of Chapter 4;

any superannuation scheme under which the Commonwealth, a Commonwealth authority or a licensed corporation (within the meaning of the Safety, Rehabilitation and Compensation Act 1988) makes contributions on behalf of employees (other than members of the Defence Force) and includes a superannuation scheme established or maintained by the Commonwealth, a Commonwealth authority or a licensed corporation; or

(b) otherwise—any superannuation scheme under which the Commonwealth makes contributions on behalf of members of the Defence Force.

Note: Section 14 affects the operation of paragraph (a) of this definition.

compensable treatment has the meaning given by section 289.

compensation means compensation under this Act, including the following:

(a) alterations provided, or aids and appliances provided or repaired, under section 56;

(b) a Special Rate Disability Pension under Part 6 of Chapter 4;

(d) education or training provided under the education scheme mentioned in Division 6 of Part 3 of Chapter 5;

(e) treatment provided under Chapter 6;

(f) a pharmaceutical allowance under Division 4 of Part 4 of Chapter 6.

continuous full‑time Reservist means a member of the Reserves on continuous full‑time service.

continuous full‑time service (CFTS) means defence service of a continuous nature that is rendered by a member of the Reserves.

date of the member’s death for a deceased member means the date determined under section 343 for the member.

deceased member means a person:

(a) who has died; and

(b) who was a member or former member before his or her death.

declared member means a person to whom a determination under section 8 applies.

Defence Department means the Department of State that deals with defence and that is administered by the Defence Minister.

Defence Force means:

(a) the Permanent Forces; and

(b) the Reserves.

Defence Minister means the Minister administering section 1 of the Defence Act 1903.

defence service has the meaning given by paragraph 6(1)(d).

dental practitioner means a person registered or licensed as a dental practitioner or dentist under a law of a State or Territory that provides for the registration or licensing of dental practitioners or dentists.

dependant has the meaning given by section 15.

dependent means dependent for economic support.

disease means:

(a) any physical or mental ailment, disorder, defect or morbid condition (whether of sudden onset or gradual development); or

(b) the recurrence of such an ailment, disorder, defect or morbid condition;

but does not include:

(d) a temporary departure from:

(i) the normal physiological state; or

(ii) the accepted ranges of physiological or biochemical measures;

that results from normal physiological stress (for example, the effect of exercise on blood pressure) or the temporary effect of extraneous agents (for example, the effect of alcohol on blood cholesterol levels).

duty, for a cadet or a declared member, has the meaning given by section 9.

Note: Duty has its ordinary meaning for other kinds of members.

eligible young person means:

(a) a person under 16; or

(b) a person who:

(i) is 16 or more but under 25; and

(ii) is receiving full‑time education at a school, college, university or other educational institution; and

(iii) is not in full‑time employment or engaged in work full‑time on his or her own account.

expense allowance means an allowance paid in respect of any expense incurred, or likely to be incurred, by a person in respect of the person’s work.

financial year means each period of 12 months commencing on 1 July.

former member means a person who has ceased to be a member.

Note: A cadet or a part‑time Reservist who is unlikely to be able to perform his or her duties in the future as a result of an incapacity might be taken to be a former member (see section 10).

full‑time service means defence service as:

(a) a Permanent Forces member; or

(b) a continuous full‑time Reservist.

hospital or other institution includes the following:

(a) a home;

(b) a hostel;

(d) an out‑patient clinic;

(e) a rehabilitation or training establishment.

household services has the meaning given by section 213.

impairment, in relation to a person, means the loss, the loss of the use, or the damage or malfunction, of any part of the person’s body, of any bodily system or function, or of any part of such a system or function.

impairment points of a person means the points worked out for the person using the guide determined under section 67.

incapacitated person:

(a) in Division 5 of Part 4 of Chapter 4—has the meaning given by section 152; and

(b) in Division 6 of Part 4 of Chapter 4—has the meaning given by section 160; and

(d) in Division 8 of Part 4 of Chapter 4—has the meaning given by section 166.

incapacitated Reservist:

(a) in Division 3 of Part 3 of Chapter 4—has the meaning given by section 94; and

(b) in Division 4 of Part 3 of Chapter 4—has the meaning given by section 103; and

incapacity for service, in relation to a person who has sustained an injury or contracted a disease, means an incapacity of the person to engage in the defence service that he or she was engaged in before the onset of the incapacity, at the same level at which he or she was previously engaged.

Note: For example, a person might be unable to engage in defence service at the same level at which he or she was engaged before the incapacity because the person is unable to perform all of his or her previous duties or is unable to work his or her normal weekly hours.

incapacity for service or work means incapacity for service or incapacity for work.

incapacity for work, in relation to a person who has sustained an injury or contracted a disease, means:

(a) an incapacity of the person to engage in the work that he or she was engaged in before the onset of the incapacity, at the same level at which he or she was previously engaged; or

(b) if the person was not previously engaged in work, an incapacity of the person to engage in any work that it is reasonably likely that he or she would otherwise be engaged in.

Note: For example, a person might be unable to engage in work at the same level at which he or she was engaged before the incapacity because the person is unable to perform all of his or her previous duties or is unable to work his or her normal weekly hours.

indexation year means the financial year commencing on 1 July 2003, and each subsequent financial year.

initial training for a person means:

(a) for an officer (other than a non‑commissioned officer)—training undertaken to become a commissioned officer; and

(b) otherwise—recruit training and initial employment training undertaken to allocate the person to a category of defence work.

injury means any physical or mental injury (including the recurrence of a physical or mental injury) but does not include:

(a) a disease; or

(b) the aggravation of a physical or mental injury.

legal personal representative means:

(a) the executor of the will, or the administrator of the estate, of a deceased person; or

(b) the trustee of the estate of a person under a legal disability; or

(d) a person who, by order of a court or otherwise, has the legal administration or control of the affairs of another person.

medical aid of a person means an artificial limb or other artificial substitute, or a medical, surgical or other similar aid or appliance, that is used by the person.

medical practitioner means a person registered or licensed as a medical practitioner under a law of a State or Territory that provides for the registration or licensing of medical practitioners.

member means:

(a) a member of the Defence Force; or

(b) a cadet; or

non‑warlike service has the meaning given by paragraph 6(1)(b).

normal earnings:

(a) in Part 3 of Chapter 4—has the meaning given by subsection 89(3);

(b) in Part 4 of Chapter 4—has the meaning given by subsection 132(2).

normal weekly hours has the meaning given by subsection 132(2).

onset date, for a person’s incapacity for service or work, means the date determined under section 342 for the person.

overtime includes:

(a) time spent performing duties on shifts or on Saturdays, Sundays or other holidays; and

(b) excess travelling time;

that does not count towards the average number of hours worked.

partner of a member means a person of the opposite sex to the member in respect of whom at least one of the following applies:

(a) if the member is a member of the Aboriginal race of Australia or a descendant of Indigenous inhabitants of the Torres Strait Islands—the person is recognised as the member’s husband or wife by the custom prevailing in the tribe or group to which the member belongs;

(b) the person is legally married to the member;

(c) the person lives with the member as his or her partner on a bona fide domestic basis although not legally married to the member.

Note: This section also applies to former members (see section 20).

part‑time Reservist means a member of the Reserves who is not on continuous full‑time service.

pay‑related allowance means an allowance specified in a determination under section 11.

peacetime service has the meaning given by paragraph 6(1)(c).

Permanent Forces means:

(a) the Permanent Navy established by the Naval Defence Act 1910; and

(b) the Regular Army established by the Defence Act 1903; and

Permanent Forces member means a member of the Permanent Forces.

pharmaceutical benefits has the same meaning as in section 91 of the Veterans’ Entitlements Act 1986.

practitioner means a person:

(a) who is a medical practitioner; or

(b) who is a dental practitioner.

rehabilitation authority has the meaning given by section 39.

rehabilitation program has the meaning given by section 41.

Repatriation Commission means the body corporate continued in existence by section 179 of the Veterans’ Entitlements Act 1986.

Repatriation Medical Authority means the body corporate established under section 196A of the Veterans’ Entitlements Act 1986.

Reserves means:

(a) the Naval Reserve established by the Naval Defence Act 1910; and

(b) the Army Reserve established by the Defence Act 1903; and

service chief means:

(a) for a person who is a member—the service chief of the arm of the Defence Force of which the person is a member; and

(b) for a person who is a former member or for a deceased member—the service chief of the arm of the Defence Force of which the person was a member before last ceasing to be a member of the Defence Force.

service death has the meaning given by section 28 and subsection 29(3).

service disease has the meaning given by section 27, subsections 29(1) and (2) and section 30.

Note: A reference to a service disease being contracted includes a reference to a disease being aggravated by defence service (see section 7).

service injury has the meaning given by section 27, subsections 29(1) and (2) and section 30.

Note: A reference to a service injury being sustained includes a reference to an injury being aggravated by defence service (see section 7).

service injury, disease or death means a service injury, a service disease or a service death.

service injury or disease means a service injury or a service disease.

Special Rate Disability Pension has the meaning given by section 198.

SRC Minister means the Minister administering Division 3 of Part VII of the Safety, Rehabilitation and Compensation Act 1988.

Statement of Principles means a Statement of Principles made under section 196B of the Veterans’ Entitlements Act 1986.

suitable work for a person means work for which the person is suited having regard to the following:

(a) the person’s age, experience, training, language and other skills;

(b) the person’s suitability for rehabilitation or vocational retraining;

(c) if work is available in a place that would require the person to change his or her place of residence—whether it is reasonable to expect the person to change his or her place of residence;

(d) any other relevant matter.

treatment has the meaning given by section 13.

Tribunal means the Administrative Appeals Tribunal.

trust funds, in respect of a trustee of payments of compensation, means the following:

(a) the amounts of compensation received by the trustee;

(b) interest on those amounts;

(d) returns received on those investments.

Veterans’ Affairs Minister means the Minister administering section 1 of the Veterans’ Entitlements Act 1986.

vocational assessment and rehabilitation has the meaning given by section 41.

warlike service has the meaning given by paragraph 6(1)(a).

wholly dependent partner of a deceased member means a person:

(a) who was the partner of the member immediately before his or her death; and

(b) who was wholly dependent on the member at that time.

Note: A partner who was living with a deceased member immediately before the member’s death is taken to have been wholly dependent on the partner (see section 17).

work means work for financial gain or reward (whether as an employee, a self‑employed person or otherwise).

6 Kinds of service to which this Act applies

(1) In this Act:

(a) warlike service means service with the Defence Force that is of a kind determined in writing by the Defence Minister to be warlike service for the purposes of this Act; and

(b) non‑warlike service means service with the Defence Force that is of a kind determined in writing by the Defence Minister to be non‑warlike service for the purposes of this Act; and

(d) defence service means warlike service, non‑warlike service or peacetime service.

Note: The determination may be varied or revoked (see subsection 33(3) of the Acts Interpretation Act 1901).

(2) For the purposes of subsection (1), service with the Defence Force means:

(a) for a cadet—participation in the activities of the Australian Defence Force cadets; and

(b) for a declared member—engagement in, or performance of, activities or acts specified in the determination under section 8 that applies to the member.

7 Reference to service injury sustained or service disease contracted includes reference to aggravation etc.

To avoid doubt, a reference to a service injury being sustained, or a service disease being contracted, at a particular time includes a reference to an injury or disease that is aggravated, or materially contributed to, by defence service at such a time.

8 Ministerial determinations that other people are members

(1) The Defence Minister may make a written determination that a person, or a class of persons, who engage, or have engaged, in activities, or who perform, or have performed, acts:

(a) at the request or direction of the Defence Force; or

(b) for the benefit of the Defence Force; or

are taken to be, or to have been, members for the purposes of this Act.

Note: The determination may be varied or revoked (see subsection 33(3) of the Acts Interpretation Act 1901).

(2) The determination must specify:

(a) the date (which may be retrospective) from which the determination applies; and

(b) the person, or class of persons, to whom the determination applies; and

(3) The date referred to in paragraph (2)(a) must be, or be after, the date on which this section commences.

(4) A determination, or a variation or revocation of a determination, is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.

9 Definition of duty for cadets and declared members

In this Act:

duty:

(a) for a cadet—means participation in an activity mentioned in paragraph 6(2)(a); and

(b) for a declared member—means engagement in or performance of an activity or act specified in the determination that applies to the member, as mentioned in paragraph 6(2)(b).

Note: Duty has its ordinary meaning for other kinds of members.

10 Determinations for part‑time Reservists and cadets who are unlikely to return to defence service

Determination that part‑time Reservist unlikely to return to defence service

(1) If a claim for compensation has been made under section 319 in respect of a part‑time Reservist, the Reservist’s service chief may advise the Commission in writing if the Reservist is unlikely to be able to perform the duties of a part‑time Reservist in the future as a result of his or her incapacity.

Determination that cadet unlikely to return to defence service

(2) If a claim for compensation has been made under section 319 in respect of a cadet, the commanding officer of the cadet’s unit (within the meaning of the Cadet Forces Regulations 1977) may advise the Commission in writing if the cadet is unlikely to be able to perform the duties of a cadet in the future as a result of his or her incapacity.

Person taken to have ceased to be a member

(3) If the Commission is given an advice in respect of a person under subsection (1) or (2), the person is taken to have ceased to be a member for the purposes of this Act.

Advice to specify the date

(4) The advice must specify the date (which must not be retrospective) from which the person is taken to have ceased to be a member for the purposes of this Act.

11 Ministerial determination of pay‑related allowances

(1) The Defence Minister must make a written determination specifying which allowances that are paid under a determination made under section 58B or 58H of the Defence Act 1903 are pay‑related allowances for the purposes of this Act.

Note: The determination may be varied or revoked (see subsection 33(3) of the Acts Interpretation Act 1901).

(2) A determination, or a variation or revocation of a determination, is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.

12 Deceased members whose dependants are entitled to benefits under this Act

Deceased member whose death was a service death

(1) This section applies in respect of a deceased member if the Commission has accepted liability for the member’s death.

Note: A dependant of a deceased member in respect of whom this section applies might be entitled to compensation under Chapter 5 or 6.

Deceased members eligible for Special Rate Disability Pension

(2) This section applies in respect of a deceased member if the member satisfied the eligibility criteria in section 199 (persons who are eligible for Special Rate Disability Pension) during some period of his or her life.

Deceased members with 80 impairment points

(3) This section applies in respect of a deceased member if the Commission has determined under Part 2 of Chapter 4 that the impairment suffered by the deceased member before the member’s death, as a result of one or more service injuries or diseases, constituted 80 or more impairment points.

13 Definition of treatment

(1) In this Act:

treatment means treatment provided, or action taken, with a view to:

(a) restoring a person to physical or mental health or maintaining a person in physical or mental health; or

(b) alleviating a person’s suffering; or

(2) For the purposes of subsection (1), treatment includes:

(a) providing accommodation in a hospital or other institution, or providing medical procedures, nursing care, social or domestic assistance or transport; and

(b) supplying, renewing, maintaining and repairing artificial replacements, medical aids and other aids and appliances; and

for the purposes of, or in connection with, any treatment.

14 Definition of Commonwealth superannuation scheme for a person who has chosen a Special Rate Disability Pension

For the purposes of paragraph (a) of the definition of Commonwealth superannuation scheme in section 5, the normal earnings of a person who has chosen a Special Rate Disability Pension would be worked out under Subdivision D of Division 4 or 8 of Part 4 of Chapter 4 if the amount worked out under that Subdivision is greater than the amount worked out under Subdivision C of Division 4 or 8 of Part 4 of Chapter 4.

15 Definition of dependant

(1) A dependant of a member means any person mentioned in subsection (2):

(a) who is wholly or partly dependent on the member; or

(b) who would be wholly or partly dependent on the member but for an incapacity of the member that resulted from an injury or disease or an aggravation of an injury or disease.

Note 1: Sections 17 and 18 set out some examples of when a person is wholly dependent on a member.

Note 2: This section also applies to former members (see section 20).

(2) These are the persons who can be a dependant of a member for the purposes of subsection (1):

(a) any of the following persons:

(i) the member’s partner;

(ii) the member’s father, mother, step‑father or step‑mother;

(iii) the father, mother, step‑father or step‑mother of the member’s partner;

(iv) the member’s grandfather or grandmother;

(v) the member’s son, daughter, step‑son or step‑daughter;

(vi) the son, daughter, step‑son or step‑daughter of the member’s partner;

(vii) the member’s grandson or grand‑daughter;

(viii) the member’s brother, sister, half‑brother or half‑sister; or

Note: This paragraph is affected by section 16.

(b) a person in respect of whom the member stands in the position of a parent; or

16 Adoptive relationships

For the purposes of paragraph 15(2)(a) of the definition of dependant, relationships mentioned in that paragraph include:

(a) relationships by adoption; and

(b) relationships that are traced through relationships by adoption.

17 Eligible young persons and partners living with a member

For the purposes of this Act, an eligible young person, or the partner of a member, is taken to be wholly dependent on a member if:

(a) the young person or partner lives with the member; or

(b) the Commission is of the opinion that the young person or partner would be living with the member but for:

(i) a temporary absence of the member, or the young person or partner (as the case requires); or

(ii) an absence of the member, or the young person or partner (as the case requires), due to illness or infirmity.

Note: This section also applies to former members (see section 20).

18 Child of a member born or adopted after the member’s death

(1) For the purposes of this Act, a son or daughter of a deceased member who is born alive after the member’s death:

(a) is taken to have been wholly dependent on the member immediately before the member’s death; and

(b) is taken to have been an eligible young person immediately before the member’s death.

Note: A deceased member may be a member or former member at the time of his or her death (see the definition of deceased member in section 5).

(2) For the purposes of this Act, if, before a deceased member’s death, a member begins adoption proceedings to adopt a child, and the proceedings are finalised after the member’s death, the child:

(a) is taken to have been wholly dependent on the member immediately before the member’s death; and

(b) is taken to have been an eligible young person immediately before the member’s death.

Note: A deceased member may be a member or former member at the time of his or her death (see the definition of deceased member in section 5).

19 Ascertaining whether persons receiving family tax benefits etc. are dependent

For the purposes of ascertaining whether a person is or was dependent on a member, any amount of the following benefits must not be taken into account:

(a) family tax benefit worked out under Part 2 or 3 of Schedule 1 to the A New Tax System (Family Assistance) Act 1999 (an individual’s Part A rate);

(b) carer’s allowance under the Social Security Act 1991;

Note: This section also applies to former members (see section 20).

20 Some references to members include references to former members

For the purposes of the definition of partner in section 5, and for the purposes of sections 15, 17 and 19, a reference to a member includes a reference to a former member.

Chapter 2—Accepting liability for service injuries, diseases and deaths

Part 1—Simplified outline of this Chapter

21 Simplified outline of this Chapter

A condition for most benefits under this Act is that the Commission has accepted liability for an injury, disease or death. The Commission accepts liability if there is some connection between the injury, disease or death and defence service.

The process for deciding whether to accept liability is as follows:

(a) first, a person makes a claim under section 319 for acceptance of liability for an injury, disease or death (the rules for making claims are found in Chapter 7);

(b) then, the Commission decides whether the injury, disease or death is a service injury, disease or death under Part 3;

(c) then, the Commission decides whether it is prevented from accepting liability for the injury, disease or death because of an exclusion under Part 4 (for example, because the injury, disease or death resulted from a serious default or a wilful act).

The Commission must accept liability if the injury, disease or death is a service injury, disease or death, and none of the exclusions in Part 4 apply.

The effect of this Chapter in respect of cadets and declared members might be modified by the regulations (see section 439).

Part 2—When the Commission must accept liability for service injuries, diseases and deaths

22 Simplified outline of this Part

The Commission accepts liability for an injury, disease or death under this Part.

The Commission must accept liability if a claim for acceptance of liability has been made under section 319, the injury, disease or death is a service injury, disease or death, and none of the exclusions in Part 4 apply.

There are 2 standards of proof that the Commission applies in deciding matters under this Chapter (and the rest of the Act).

The more beneficial standard of proof (in subsections 335(1) and (2)) applies to some claims that an injury, disease or death is a service injury, disease or death that relates to warlike or non‑warlike service. The other standard of proof (in subsection 335(3)) applies to all other decisions under this Chapter.

For some claims for acceptance of liability for an injury, disease or death the standard of proof can only be met if the injury or disease, or the cause of death, is covered by a Statement of Principles (see sections 338 and 339). (Chapter 7 has more rules about the Statements of Principles.)

A Statement of Principles is an instrument made under the Veterans’ Entitlements Act 1986. The Statement sets out all factors related to defence service that have been found to cause specific injuries, diseases and deaths.

For other claims for acceptance of liability, the Statements of Principles are not relevant.

23 Commission’s acceptance of liability for service injuries and diseases

When Commission must accept liability for service injuries and diseases

(1) The Commission must accept liability for an injury sustained, or a disease contracted, by a person if:

(a) the person’s injury or disease is a service injury or disease under section 27; and

(b) the Commission is not prevented from accepting liability for the injury or disease by Part 4; and

Note 1: The standard of proof mentioned in subsections 335(1) and (2) applies to claims that the injury or disease is a service injury or disease that relates to warlike or non‑warlike service.

Note 2: The standard of proof mentioned in subsection 335(3) applies to the following:

(a) claims that the injury or disease is a service injury or disease that relates to peacetime service;

(b) all claims when determining whether a person sustained a particular injury or contracted a particular disease;

(c) all claims when determining whether the Commission is prevented from accepting liability for the injury or disease by Part 4.

When Commission must accept liability for service injuries and diseases arising from Commonwealth treatment

(2) The Commission must accept liability for an injury sustained, or a disease contracted, by a person if:

(a) the person’s injury or disease is a service injury or disease under section 29 (arising from treatment provided by the Commonwealth); and

(b) a claim for acceptance of liability for the injury or disease has been made under section 319.

Note: The standard of proof mentioned in subsection 335(3) applies to all claims:

(a) that an injury or disease is a service injury or disease under section 29; and

(b) when determining whether a person sustained a particular injury or contracted a particular disease.

When Commission must accept liability for service injuries and diseases arising from aggravations of signs and symptoms

(3) The Commission must accept liability for an injury sustained, or a disease contracted, by a person if:

(a) the person’s injury or disease is a service injury or disease under section 30 (aggravations etc. of signs and symptoms); and

(b) the Commission is not prevented from accepting liability for the injury or disease by Part 4; and

Note 1: The standard of proof mentioned in subsections 335(1) and (2) applies to claims that the injury or disease is a service injury or disease that relates to warlike or non‑warlike service.

Note 2: The standard of proof mentioned in subsection 335(3) applies to the following:

(a) claims that an injury or disease is a service injury or disease that relates to peacetime service; and

(b) all claims when determining whether a sign or symptom was aggravated etc.; and

(c) all claims when determining whether the Commission is prevented from accepting liability for the injury or disease by Part 4.

Acceptance of liability for aggravations etc. of injuries and diseases

(4) A reference in this section to acceptance of liability for an injury or disease is taken to include a reference to acceptance of liability for an aggravation of an injury or disease.

Note: The definitions of injury and disease exclude aggravations (see section 5).

24 Commission’s acceptance of liability for service deaths

When Commission must accept liability for service deaths

(1) The Commission must accept liability for the death of a person if:

(a) the person’s death is a service death under section 28; and

(b) the Commission is not prevented from accepting liability for the death by subsection 34(4) or section 35 or 36; and

Note 1: The standard of proof mentioned in subsections 335(1) and (2) applies to claims that the death is a service death that relates to warlike or non‑warlike service.

Note 2: The standard of proof mentioned in subsection 335(3) applies to the following:

(a) claims that the death is a service death that relates to peacetime service;

(b) all claims when determining whether a person sustained or contracted a particular injury or disease;

(d) all claims when determining whether the Commission is prevented from accepting liability for the death by subsection 34(4) or section 35 or 36.

When Commission must accept liability for service deaths arising from Commonwealth treatment

(2) The Commission must accept liability for the death of a person if:

(a) the person’s death is a service death under section 29 (service death arising from treatment provided by the Commonwealth); and

(b) a claim for acceptance of liability for the death has been made under section 319.

Note: The standard of proof mentioned in subsection 335(3) applies to all claims:

(a) that a death is a service death under section 29; and

(b) when determining the cause of a person’s death.

Commission must accept liability for deaths after being prevented from accepting liability for the injury or disease that resulted in the death

(3) To avoid doubt, the Commission must accept liability for a service death even if the Commission was prevented by section 32 or 33 from accepting liability for a service injury or disease that resulted in the death.

Note: Sections 32 and 33 only prevent the Commission from accepting liability for a service injury or disease, and not a service death.

25 Limited effect of acceptance of liability

The Commission’s acceptance of liability for an injury, disease or death only has effect for the purposes of this Act.

Note: This means that a person cannot rely on the Commission’s acceptance of liability for an injury, disease or death in a common law action against the Commonwealth.

Part 3—Definitions of service injury, service disease and service death

26 Simplified outline of this Part

This Part defines service injury, service disease and service death.

An injury, disease or death is a service injury, disease or death if:

(a) it is related to defence service in the ways mentioned in section 27 or 28; or

(b) it resulted from certain treatment provided by the Commonwealth (see section 29); or

(c) an aggravation of, or a material contribution to, a sign or symptom of the injury or disease relates to defence service (see section 30).

However, even if an injury, disease or death is a service injury or disease under this Part, the Commission might be prevented from accepting liability for the injury, disease or death by an exclusion under Part 4.

27 Main definitions of service injury and service disease

For the purposes of this Act, an injury sustained, or a disease contracted, by a person is a service injury or a service disease if one or more of the following apply:

(a) the injury or disease resulted from an occurrence that happened while the person was a member rendering defence service;

(b) the injury or disease arose out of, or was attributable to, any defence service rendered by the person while a member;

(i) the injury was sustained due to an accident that would not have occurred; or

(ii) the disease would not have been contracted;

but for:

(iii) the person having rendered defence service while a member; or

(iv) changes in the person’s environment consequent upon his or her having rendered defence service while a member;

(d) the injury or disease:

(i) was sustained or contracted while the person was a member rendering defence service, but did not arise out of that service; or

(ii) was sustained or contracted before the commencement of a period of defence service rendered by the person while a member, but not while the person was rendering defence service;

and, in the opinion of the Commission, the injury or disease was contributed to in a material degree by, or was aggravated by, any defence service rendered by the person while a member after he or she sustained the injury or contracted the disease;

Note: This paragraph might not cover aggravations of, or material contributions to, signs and symptoms of an injury or disease (see Repatriation Commission v Yates (1995) 38 Administrative Law Decisions 80). This is dealt with in section 30.

(e) the injury or disease resulted from an accident that occurred while the person was travelling, while a member rendering peacetime service but otherwise than in the course of duty, on a journey:

(i) to a place for the purpose of performing duty; or

(ii) away from a place of duty upon having ceased to perform duty.

28 Main definition of service death

Definition of service death

(1) For the purposes of this Act, the death of a person is a service death if one or more of the following apply:

(a) the death resulted from an occurrence that happened while the person was a member rendering defence service;

(b) the death arose out of, or was attributable to, any defence service rendered by the person while a member;

(i) an accident that would not have occurred; or

(ii) a disease that would not have been contracted;

but for:

(iii) the person having rendered defence service while a member; or

(iv) changes in the person’s environment consequent upon his or her having rendered defence service while a member;

(d) the injury or disease from which the person died:

(i) was sustained or contracted while the person was a member rendering defence service, but did not arise out of that service; or

(ii) was sustained or contracted before the commencement of a period of defence service rendered by the person while a member, but not while the person was rendering defence service;

(e) the injury or disease from which the person died is an injury or disease that has been determined under section 27, 29 or 30 to be a service injury or a service disease, as the case may be;

Note 1: The effect of this paragraph is that, if the person has died from an injury or disease that has already been determined by the Commission to be a service injury or disease, the death is a service death. Accordingly, the Commission is not required to relate the death to defence service rendered by the person and sections 338 and 339 do not apply.

Note 2: This paragraph does not apply to certain aggravations etc. of injuries and diseases (see subsection (2)).

(f) the death resulted from an accident that occurred while the person was travelling, while a member rendering peacetime service but otherwise than in the course of duty, on a journey:

(i) to a place for the purpose of performing duty; or

(ii) away from a place of duty upon having ceased to perform duty.

Aggravations etc. that cease before death

(2) Paragraph (1)(e) does not apply if:

(a) the service injury or disease mentioned in that paragraph is an aggravated injury or disease; and

(b) immediately before the death, the injury or disease was no longer aggravated or contributed to in a material degree.

29 Definitions of service injury, service disease and service death arising from treatment provided by the Commonwealth

Liability for injuries and diseases caused by treatment

(1) For the purposes of this Act, an injury sustained, or a disease contracted, by a person is a service injury or a service disease if:

(a) either:

(i) the person receives treatment under this Act for an earlier service injury or disease and the treatment is paid for or provided wholly or partly by the Commonwealth; or

(ii) the person receives any treatment under regulations made under the Defence Act 1903; and

(b) as an unintended consequence of that treatment, the person sustains the injury or contracts the disease.

Liability for injuries and diseases aggravated by treatment

(2) For the purposes of this Act, an injury sustained, or a disease contracted, by a person is a service injury or a service disease if:

(a) either:

(i) the person receives treatment under this Act for the service injury or disease and the treatment is paid for or provided wholly or partly by the Commonwealth; or

(ii) the person receives any treatment under regulations made under the Defence Act 1903; and

(b) as an unintended consequence of that treatment, the injury or disease, or a sign or symptom of the injury or disease, is aggravated by the treatment.

Liability for deaths caused by treatment

(3) For the purposes of this Act, the death of a person is a service death if:

(a) either:

(i) the person receives treatment under this Act for a service injury or disease and the treatment is paid for or provided wholly or partly by the Commonwealth; or

(ii) the person receives any treatment under regulations made under the Defence Act 1903; and

(b) as a consequence of that treatment, the person dies.

30 Definitions of service injury and service disease for aggravations etc. of signs and symptoms

For the purposes of this Act, an injury sustained, or a disease contracted, by a person is a service injury or a service disease if:

(a) the injury or disease:

(i) was sustained or contracted while the person was a member rendering defence service, but did not arise out of that service; or

(ii) was sustained or contracted before the commencement of a period of defence service rendered by the person while a member, but not while the person was rendering defence service; and

(b) in the opinion of the Commission, a sign or symptom of the injury or disease was contributed to in a material degree by, or was aggravated by, any defence service rendered by the person while a member after he or she sustained the injury or contracted the disease.

Part 4—When the Commission is prevented from accepting liability for service injuries, diseases and deaths

31 Simplified outline of this Part

Even if the Commission decides that an injury, disease or death is a service injury, disease or death, the Commission might be prevented from accepting liability for that injury, disease or death because of an exclusion under this Part.

There are 5 kinds of exclusions. They relate to the following:

(a) serious defaults or wilful acts etc.;

(b) reasonable counselling about a person’s performance as a member;

(d) travel during peacetime service;

(e) the use of tobacco products.

The Commission applies the standard of proof mentioned in subsection 335(3) in deciding whether the exclusions apply.

32 Exclusions relating to serious defaults or wilful acts etc.

Exclusion of injuries or diseases resulting from serious default or wilful acts etc.

(1) The Commission must not accept liability for an injury sustained, or a disease contracted, by a person if:

(a) the injury or disease resulted from the person’s serious default or wilful act while a member; or

(b) the injury or disease arose from:

(i) a serious breach of discipline committed by the person while a member; or

(ii) an occurrence that happened while the person was committing a serious breach of discipline while a member; or

except if the injury or disease results in serious and permanent impairment.

(2) For the purpose of paragraph (1)(a), an injury or disease is taken to have resulted from a person’s serious default or wilful act if:

(a) the person consumed alcohol or took a drug (other than a drug administered by a person legally authorised to administer the drug or a drug legally obtained and taken in accordance with the directions provided with the drug); and

(b) the injury or disease resulted from being under the influence of the alcohol or drug.

This subsection does not otherwise limit paragraph (1)(a).

Exclusion of aggravations etc. resulting from serious default etc.

(3) The Commission must not accept liability for an injury sustained, or a disease contracted, by a person if:

(a) the injury or disease has been contributed to in a material degree, or aggravated, by defence service; and

(b) the material contribution or aggravation:

(i) resulted from the serious default or wilful act of the person while a member; or

(ii) arose from a serious breach of discipline committed by the person while a member; or

(iii) arose from an occurrence that happened while the person was committing a serious breach of discipline while a member; or

(iv) was intentionally self‑inflicted while the person was a member;

except if the aggravation or material contribution results in serious and permanent impairment.

Exclusion of aggravations etc. of signs or symptoms resulting from serious default etc.

(4) The Commission must not accept liability for an injury sustained, or a disease contracted, by a person if:

(a) a sign or symptom of the injury or disease has been contributed to in a material degree, or aggravated, by defence service; and

(b) the material contribution or aggravation:

(i) resulted from the serious default or wilful act of the person while a member; or

(ii) arose from a serious breach of discipline committed by the person while a member; or

(iii) arose from an occurrence that happened while the person was committing a serious breach of discipline while a member; or

(iv) was intentionally self‑inflicted while the person was a member;

except if the aggravation or material contribution results in serious and permanent impairment.

(5) For the purpose of subparagraph (3)(b)(i) or (4)(b)(i), a material contribution or aggravation is taken to have resulted from a person’s serious default or wilful act if:

(b) the material contribution or aggravation results from being under the influence of the alcohol or drug.

This subsection does not otherwise limit subparagraph (3)(b)(i) or (4)(b)(i).

33 Exclusions relating to reasonable counselling about performance etc.

Injuries or diseases resulting from reasonable counselling about performance etc.

(1) The Commission must not accept liability for an injury sustained, or a disease contracted, by a person if the injury or disease resulted from:

(a) reasonable and appropriate counselling in relation to the person’s performance as a member; or

(b) a failure to obtain a promotion, transfer or benefit in relation to the person’s service as a member.

Aggravations etc. of injuries or diseases resulting from reasonable counselling about performance etc.

(2) The Commission must not accept liability for an injury sustained, or a disease contracted, by a member if:

(a) the injury or disease was contributed to in a material degree, or aggravated, by defence service; and

(b) the material contribution or aggravation resulted from:

(i) reasonable and appropriate counselling in relation to the person’s performance as a member; or

(ii) a failure to obtain a promotion, transfer or benefit in relation to the person’s service as a member.

Aggravations etc. of signs and symptoms of injuries or diseases resulting from reasonable counselling about performance etc.

(3) The Commission must not accept liability for an injury sustained, or a disease contracted, by a member if:

(a) a sign or symptom of the injury or disease was contributed to in a material degree, or aggravated, by defence service; and

(b) the material contribution or aggravation resulted from:

(i) reasonable and appropriate counselling in relation to the person’s performance as a member; or

(ii) a failure to obtain a promotion, transfer or benefit in relation to the person’s service as a member.

34 Exclusions of injuries, diseases and deaths relating to certain false representations

Injuries or diseases

(1) The Commission must not accept liability for an injury sustained, or a disease contracted, by a person, if the person made a wilful and false representation, in connection with his or her defence service or proposed defence service, that he or she did not suffer, or had not previously suffered, from that injury or disease.

Aggravations etc. of injuries or diseases

(2) The Commission must not accept liability for an injury sustained, or a disease contracted, by a person, if:

(a) the injury or disease was contributed to in a material degree, or aggravated, by defence service; and

(b) the person made a wilful and false representation, in connection with his or her defence service or proposed defence service, that he or she did not suffer, or had not previously suffered, from that injury or disease.

Aggravations etc. of signs and symptoms of injuries or diseases

(3) The Commission must not accept liability for an injury sustained, or a disease contracted, by a person, if:

(a) a sign or symptom of the injury or disease was contributed to in a material degree, or aggravated, by defence service; and

Deaths

(4) The Commission must not accept liability for the death of a person if the person made a wilful and false representation, in connection with his or her defence service or proposed defence service, that he or she did not suffer, or had not previously suffered, from the injury or disease that resulted in his or her death.

35 Exclusions relating to travel

Commission not to accept liability for injuries etc. resulting from certain peacetime accidents

(1) This section only applies in respect of an injury, disease or death of a person that relates to peacetime service rendered by the person as a member.

Note: This section applies if the injury, disease or death is a service injury, disease or death because of the application of any of sections 27, 28 and 30 (not only paragraphs 27(e) and 28(1)(f)).

(2) The Commission must not accept liability for:

(a) an injury sustained, or a disease contracted, by a person, or the death of a person; or

(b) an injury or a disease that has been aggravated, or materially contributed to; or

if the injury, disease, death, aggravation or material contribution resulted from the kinds of accidents mentioned in subsection (3), (4) or (5).

Substantial delay commencing journey

(3) The Commission must not accept liability if the injury, disease, death, aggravation or material contribution resulted from an accident that occurred while the person was a member travelling on a journey from the person’s place of duty if the person delayed commencing the journey for a substantial time after he or she ceased to perform duty at that place, unless:

(a) the delay was for a reason connected with the performance of the person’s duties; or

(b) in the circumstances of the particular case:

(i) the nature of the risk of the injury, disease, death, aggravation or material contribution occurring was not substantially changed; and

(ii) the extent of that risk was not substantially increased;

by that delay or by anything that happened during that delay.

Routes that are not reasonably direct

(4) The Commission must not accept liability if the injury, disease, death, aggravation or material contribution resulted from an accident that occurred while the person was a member travelling on a journey, or a part of a journey, by a route that was not reasonably direct having regard to the means of transport used, unless:

(a) the journey, or that part of the journey, was made by that route for a reason connected with the performance of the person’s duties; or

(b) in the circumstances of the particular case:

(i) the nature of the risk of the injury, disease, death, aggravation or material contribution occurring was not substantially changed; and

(ii) the extent of that risk was not substantially increased;

by reason that the journey, or that part of the journey, was made by that route.

Substantial interruptions to journeys

(5) The Commission must not accept liability if the injury, disease, death, aggravation or material contribution resulted from an accident that occurred while the person was a member travelling on a part of a journey made after a substantial interruption of the journey, unless:

(a) the interruption was made for a reason connected with the performance of the person’s duties; or

(b) in the circumstances of the particular case:

(i) the nature of the risk of the injury, disease, death, aggravation or material contribution occurring was not substantially changed; and

(ii) the extent of that risk was not substantially increased;

by reason of that interruption.

36 Exclusion relating to use of tobacco products

The Commission must not accept liability for:

(a) an injury sustained, or a disease contracted, by a person, or the death of a person; or

(b) an injury or a disease that has been aggravated, or materially contributed to; or

if the injury, disease, death, aggravation or material contribution is related to defence service only because of the person’s use of tobacco products.

Chapter 3—Rehabilitation

Part 1—General provisions

Division 1—Simplified outline of this Chapter

37 Simplified outline of this Chapter

This Chapter provides for the following for certain current and former members suffering a service injury or disease:

(a) rehabilitation programs;

(b) assistance in finding suitable defence or civilian work;

The capacity for rehabilitation of a person with a service injury or disease is assessed under Part 2. If the person is capable of rehabilitation, he or she may be required to undertake a rehabilitation program under that Part.

Under Part 3, a person who is undertaking a rehabilitation program, or a person who cannot undertake a program, can have his or her home or place of work etc. altered or an aid or appliance provided.

All members and former members who are incapacitated for service or work are assisted in finding suitable work under Part 4.

A case manager is appointed under Part 5 to assist a full‑time member move to civilian life if the member is likely to be discharged from the Defence Force.

Division 2—Aim of rehabilitation

38 Aim of rehabilitation

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.

Division 3—Definitions

39 Definition of rehabilitation authority

(1) The service chief of each arm of the Defence Force is a rehabilitation authority for the purposes of this Chapter.

(2) The Commission is a rehabilitation authority for the purposes of this Chapter.

(3) The rehabilitation authority for a person at a time is:

(a) the person’s service chief for a time when the person:

(i) is a Permanent Forces member or a continuous full‑time Reservist; and

(ii) has not been identified by or on behalf of the person’s service chief as being likely to be discharged from the Defence Force for medical reasons; or

(b) the Commission for any other time.

40 Rule if rehabilitation authority for a person changes

(1) This section applies if a person’s rehabilitation authority (the original rehabilitation authority) changes to another rehabilitation authority (the new rehabilitation authority) because of section 39.

(2) If:

(a) under subsection 44(2), the person requests the original rehabilitation authority to carry out an assessment of the person’s capacity for rehabilitation; and

(b) the rehabilitation authority changes before the assessment begins;

the person’s request is taken to have been made to the new rehabilitation authority.

(3) A determination of the original rehabilitation authority that is in force immediately before the rehabilitation authority changes has effect as a determination of the new rehabilitation authority. The new rehabilitation authority is responsible for giving effect to the determination.

41 Other definitions

(1) In this Chapter:

approved program provider means:

(a) a person or body that is an approved program provider for the purposes of the Safety, Rehabilitation and Compensation Act 1988; or

(b) a person nominated in writing by a rehabilitation authority, being a person the rehabilitation authority is satisfied has appropriate skills and expertise to design and provide rehabilitation programs.

approved rehabilitation program means a rehabilitation program determined under section 51 for a person by the person’s rehabilitation authority.

rehabilitation program means a program that consists of or includes any one or more of the following:

(a) medical, dental, psychiatric and hospital services (whether on an in‑patient or out‑patient basis);

(b) physical training and exercise;

(d) occupational therapy;

(e) vocational assessment and rehabilitation;

(f) counselling;

(g) psycho‑social training.

vocational assessment and rehabilitation consists of or includes any one or more of the following:

(a) assessment of transferable skills;

(b) functional capacity assessment;

(d) vocational counselling and training;

(e) review of medical factors;

(f) training in resume preparation, job‑seeker skills and job placement;

(g) provision of workplace aids and equipment.

Part 2—Rehabilitation programs

Division 1—Application of Part

42 Simplified outline of this Part

This Part applies to a person who is incapacitated for service or work, or who is impaired, as a result of a service injury or disease.

Most decisions under this Part are made by the person’s rehabilitation authority. The rehabilitation authority is either the person’s service chief or the Commission.

The rehabilitation authority, either on its own initiative or on the person’s request, carries out an initial assessment of the person’s capacity for rehabilitation. The person might be required to undergo an examination (paid for by the Commonwealth) as part of the assessment. (Compensation can be paid for costs incurred in travelling to the examination.)

Once the assessment is done, the rehabilitation authority decides if the person should undertake a rehabilitation program (provided by an approved program provider). In certain cases, the rehabilitation authority can stop or vary the program once it has begun.

A person’s right to compensation can be suspended if the person fails to undergo an examination or fails to undertake the program as required.

43 Persons to whom this Part applies

(1) This Part applies to a person at a time if, at that time:

(a) the person is incapacitated for service or work, or has an impairment, as a result of a service injury or disease; and

(b) the Commission has accepted liability for the injury or disease.

(2) To avoid doubt, this Part applies to a person who is incapacitated or impaired as a result of an aggravated injury or disease even if the incapacity or impairment resulted from the original injury or disease and not from the aggravation or material contribution.

Division 2—Assessment of a person’s capacity for rehabilitation

44 When an assessment may or must be carried out

Assessments on rehabilitation authority’s initiative

(1) The rehabilitation authority for a person to whom this Part applies may, on its own initiative, carry out an initial assessment or a further assessment of the person’s capacity for rehabilitation.

Requests for assessments

(2) A person to whom this Part applies may request his or her rehabilitation authority to carry out an initial assessment or a further assessment of his or her capacity for rehabilitation.

(3) The rehabilitation authority:

(a) must carry out an initial assessment; and

(b) may carry out a further assessment;

if the person requests the rehabilitation authority to do so.

Requirement to carry out assessment before ceasing or varying a program

(4) The rehabilitation authority must carry out an assessment before ceasing or varying a rehabilitation program under section 53.

45 What may be done as part of an assessment

(1) This section applies if the person’s rehabilitation authority carries out an assessment under section 44 of the person’s capacity for rehabilitation.

(2) The rehabilitation authority may seek the assistance of a person the authority is satisfied has suitable qualifications or expertise to provide assistance.

(3) The rehabilitation authority may take into account any relevant information of which it is aware.

(4) The rehabilitation authority may require the person to undergo an examination under section 46.

46 Requirements for examinations

(1) This section applies if the person’s rehabilitation authority requires the person to undergo an examination.

(2) The examination is to be carried out by an examiner nominated by the rehabilitation authority whom the authority is satisfied has suitable qualifications or expertise to carry out the examination.

(3) The examiner must give a written report of the examination to the rehabilitation authority. The report must include:

(a) an assessment of the person’s capacity for rehabilitation; and

(b) if the person has a capacity for rehabilitation—the kinds of rehabilitation from which the person would benefit; and

(c) any other information relating to the provision of a rehabilitation program for the person that the rehabilitation authority requires.

(4) The Commonwealth is liable to pay the cost of conducting the examination.

47 Compensation for journey and accommodation costs

The Commonwealth is liable to pay compensation for any costs reasonably incurred if:

(a) the costs are incurred:

(i) in making a necessary journey in connection with the examination; or

(ii) in remaining, for the purpose of the examination, at a place to which the person has made a journey for that purpose; and

(b) a claim for compensation in respect of the person has been made under section 319.

Note: This section might be affected by section 50 or 52 (failure to undergo examination or rehabilitation program).

48 Amount of compensation for journey and accommodation costs

(1) The amount of compensation that the Commonwealth is liable to pay under section 47 is the amount determined by the rehabilitation authority to be the amount reasonably incurred in making the journey or remaining at the place.

(2) In determining the amount, the rehabilitation authority must have regard to:

(a) the means of transport available to the person for the journey; and

(b) the route or routes by which the person could have travelled; and

49 Whom the compensation is payable to

(1) Compensation under section 47 for costs reasonably incurred is payable to:

(a) the person who made the claim for compensation; or

(b) if that person so directs:

(i) the person who provided services in connection with the journey or accommodation; or

(ii) any other person who incurred the cost of services in connection with the journey or accommodation.

Note: A special rule applies if a trustee is appointed under section 432.

(2) A payment under section 47 to a person who provided services in connection with the journey or accommodation discharges any liability of any other person for the cost of those services to the extent of the payment.

50 Consequences of failure to undergo an examination

(1) If the rehabilitation authority for a person requires the person to undergo an examination under section 45 and the person:

(a) refuses or fails to undergo the examination; or

(b) in any way obstructs the examination;

the rehabilitation authority may determine that the person’s right to compensation (but not the person’s right to treatment or compensation for treatment under Chapter 6) under this Act is suspended until the examination takes place.

(2) A determination under subsection (1) must not be made in relation to a refusal or failure to undergo the examination if, before the time fixed for the examination, the person gives to the rehabilitation authority evidence of a reasonable excuse for the refusal or failure.

(3) The rehabilitation authority must determine that the suspension under subsection (1) is terminated from a date determined by the rehabilitation authority if, within 14 days after the date fixed for the examination, the person gives to the rehabilitation authority evidence of a reasonable excuse for the refusal, failure or obstruction.

(4) If a determination under subsection (1) is made by a delegate of the rehabilitation authority, the rehabilitation authority must ensure that any determination terminating the suspension under subsection (3) also made by a delegate of the rehabilitation authority is made by a delegate other than a delegate who was involved in making the determination under subsection (1).

(5) If a person’s right to compensation is suspended under subsection (1), compensation is not payable during or in respect of the period of the suspension.

Division 3—Provision of rehabilitation programs

51 Rehabilitation authority may determine that a person is to undertake a rehabilitation program

(1) The rehabilitation authority for a person to whom this Part applies may determine that the person is to undertake a rehabilitation program specified in the determination if an assessment has been made under section 44 of the person’s capacity for rehabilitation.

(2) In making a determination under subsection (1) in respect of the person, the person’s rehabilitation authority is to have regard to the following:

(a) any written report in respect of the person under subsection 46(3);

(b) any reduction in the future liability of the Commonwealth to pay or provide compensation if the program is undertaken;

(d) any improvement in the person’s opportunity to be engaged in work after completing the program;

(e) the person’s attitude to the program;

(f) the relative merits of any alternative and appropriate rehabilitation program;

(g) any other matter the rehabilitation authority considers relevant.

(3) If the rehabilitation authority for a person makes a determination under subsection (1) that a person is to undertake a rehabilitation program, the rehabilitation authority must make arrangements with an approved program provider for the provision of the program for the person.

Note: The person might also be entitled to have his or her home altered or aids or appliances provided under Part 3.

(4) For the purposes of designing or providing a rehabilitation program:

(a) the rehabilitation authority or approved program provider concerned may seek the assistance of persons with suitable qualifications or expertise in the design or provision of rehabilitation programs; and

(b) the rehabilitation authority or approved program provider concerned may take into account any relevant information of which it is aware or that is brought to its attention.

(5) The cost of a rehabilitation program provided for a person under this section is to be paid by the Commonwealth.

52 Consequences of failure to undertake a rehabilitation program

(1) If the rehabilitation authority for a person requires the person to undertake a rehabilitation program under section 51, and the person refuses or fails to undertake the rehabilitation program, the rehabilitation authority may determine that the person’s right to compensation (but not the person’s right to treatment or compensation for treatment under Chapter 6) under this Act is suspended until the person undertakes the rehabilitation program.

(2) A determination under subsection (1) must not be made in relation to a refusal or failure to undertake the rehabilitation program if, before the date fixed for starting the rehabilitation program, the person gives to the rehabilitation authority evidence of a reasonable excuse for the refusal or failure.

(3) The rehabilitation authority must determine that the suspension under subsection (1) is terminated from a date determined by the rehabilitation authority if, within 14 days after the date fixed for starting the rehabilitation program, the person gives to the rehabilitation authority evidence of a reasonable excuse for the refusal or failure.

(5) If a person’s right to compensation is suspended under subsection (1), compensation is not payable during or in respect of the period of the suspension.

53 Cessation or variation of a rehabilitation program

(1) This section applies if:

(a) the rehabilitation authority for a person has made a determination under subsection 51(1) that the person is to undertake a rehabilitation program; and

(b) an approved program provider has commenced providing the rehabilitation program.

(2) The rehabilitation authority may, on its own initiative or on written application by the person, determine that:

(a) the rehabilitation program cease; or

(b) the rehabilitation program be varied.

(3) Before making a determination under subsection (2), the rehabilitation authority must:

(a) undertake an assessment under section 44 of the person’s capacity for rehabilitation; and

(b) consult the person about the proposed determination.

Part 3—Alterations, aids and appliances relating to rehabilitation

Division 1—Preliminary

54 Simplified outline of this Part

This Part applies to a person with an impairment from a service injury or disease who is either undertaking a rehabilitation program or who cannot undertake a program.

If it is reasonably required for the person, the Commission can:

(a) alter the person’s home or work; or

(b) alter articles used by the person; or

55 Persons to whom Part applies

(1) This Part applies to a person if:

(a) the person has an impairment as a result of a service injury or disease; and

(b) the Commission has accepted liability for the injury or disease; and

(i) is undertaking, or has completed, an approved rehabilitation program in respect of the impairment; or

(ii) has been assessed under section 44 as not having the capacity for rehabilitation.

(2) To avoid doubt, this Part applies to a person who has an impairment as a result of an aggravated injury or disease even if the impairment resulted from the original injury or disease and not from the aggravation or material contribution.

Division 2—Alterations, aids and appliances relating to rehabilitation

56 Alterations, aids and appliances relating to rehabilitation

(1) The Commission may do the following for a person to whom this Part applies:

(a) alter the person’s place of residence, education, work or service, or articles used by the person;

(b) provide aids or appliances for use by the person; or

if the alterations, aids or appliances are reasonably required by the person.

Note: Section 58 sets out the matters that the Commission must consider in determining if an alteration, aid or appliance is reasonably required by the person.

(2) The Commonwealth is liable to pay compensation for any costs reasonably incurred by a person to whom this Part applies if the costs are incurred in respect of alterations, aids or appliances of a kind mentioned in subsection (1).

(3) A claim for compensation in respect of the person must have been made under section 319.

Note: This section might be affected by section 50 or 52 (failure to undergo examination or rehabilitation program).

57 Amount of compensation for alterations, aids and appliances

The amount of compensation that the Commonwealth is liable to pay under subsection 56(2) is the amount determined by the Commission to be the amount reasonably incurred in respect of the alterations, aids or appliances.

Note: Section 58 sets out the matters that the Commission must consider in determining the amount of compensation.

58 Matters to be considered in determining matters relating to alterations, aids and appliances

(1) This section applies for the purposes of:

(a) determining whether an alteration, aid or appliance is reasonably required by a person under section 56; and

(b) the amount of compensation under section 57.

(2) The Commission must have regard to:

(a) the likely period during which the alteration, article, aid or appliance will be required; and

(b) any difficulties faced by the person in gaining access to, or enjoying reasonable freedom of movement in, his or her place of residence, education, work or service; and

(d) if the person has previously received compensation under this section in respect of an alteration of his or her place of residence and has later disposed of that place of residence—whether the value of that place of residence was increased as a result of the alteration; and

(e) if the person is a Permanent Forces member or a continuous full‑time Reservist:

(i) the length of time that the person is likely to continue to serve as a Permanent Forces member or a continuous full‑time Reservist; and

(ii) whether the provision of an alteration, article, aid or appliance would increase that length of time.

59 Whom compensation for alterations etc. is payable to

(1) Compensation under subsection 56(2) for costs reasonably incurred is payable to:

(a) the person who made the claim for compensation; or

(b) if that person so directs:

(i) the person who provided services in connection with the alteration, aids or appliances; or

(ii) any other person who incurred the cost of services in connection with the alteration, aids or appliances.

Note: A special rule applies if a trustee is appointed under section 432.

(2) A payment under subsection 56(2) to a person who provided services in connection with the alteration, aids or appliances discharges any liability of any other person for the cost of the services to the extent of the payment.

Part 4—Assistance in finding suitable work

60 Simplified outline of this Part

All members and former members who are incapacitated for service or work from a service injury or disease are assisted in finding suitable work under this Part.

The work might be work in the Defence Force or civilian work.

61 Assistance in finding suitable work for full‑time members

(1) This section applies if:

(a) a person is a Permanent Forces member or a continuous full‑time Reservist; and

(b) the person is incapacitated for service or work as a result of a service injury or disease for which the Commission has accepted liability.

(2) To avoid doubt, this section applies to a person who is incapacitated as a result of an aggravated injury or disease even if the incapacity resulted from the original injury or disease and not from the aggravation or material contribution.

(3) The person’s rehabilitation authority must take all reasonable steps to:

(a) if the person is a Permanent Forces member who has not been identified by or on behalf of the person’s service chief as being likely to be discharged from the Permanent Forces for medical reasons—assist the person to find suitable work within the Permanent Forces; or

(b) if the person is a continuous full‑time Reservist who has not been identified by or on behalf of the person’s service chief as being likely to be discharged from the Reserves for medical reasons—assist the person to find suitable work as a continuous full‑time Reservist; or

(c) if the person has been identified by or on behalf of the person’s service chief as being likely to be discharged from the Defence Force for medical reasons—assist the person to find suitable civilian work.

Note: A person who has been identified as being likely to be discharged from the Defence Force is entitled to a case manager (see section 64).

62 Assistance in finding suitable work for other members and former members

(1) This section applies if:

(a) a person:

(i) is a part‑time Reservist, a cadet or a declared member; or

(ii) is a former member; and

(b) the person is incapacitated for service or work as a result of a service injury or disease for which the Commission has accepted liability.

(3) The person’s rehabilitation authority must take all reasonable steps to assist the person to find suitable civilian work.

Part 5—Transition management

63 Simplified outline of this Part

Under this Part, a case manager is appointed to assist a full‑time member move from the Defence Force to civilian life if the member is likely to be discharged from the Defence Force for medical reasons (whether or not as a result of a service injury or disease).

64 Transition management

(1) This section applies to a person if:

(a) the person is a Permanent Forces member or a continuous full‑time Reservist; and

(b) the person has been identified by or on behalf of the person’s service chief as being likely to be discharged from the Defence Force for medical reasons.

(2) The person’s service chief must appoint a case manager for the person.

(3) The role of the case manager is to assist the person in the transition to civilian life, including by advising the person about entitlements and services for which the person may be eligible as a member or former member, and about how to obtain access to such entitlements and services.

Chapter 4—Compensation for members and former members

Part 1—Simplified outline of this Chapter

65 Simplified outline of this Chapter

This Chapter provides for compensation and other benefits to be provided for current and former members who suffer a service injury or disease.

Part 2 provides for compensation to be provided for current and former members who have suffered a permanent impairment.

Part 3 provides for compensation to be provided for current members who are incapacitated for service from a service injury or disease. Current part‑time Reservists, cadets and declared members who are incapacitated for work can also be paid compensation under that Part.

Part 4 provides for compensation to be provided for former members who are incapacitated for work from a service injury or disease.

Part 5 contains rules for adjusting the amount of compensation the Commonwealth is liable to pay under Parts 3 and 4.

Some former members who have suffered a serious impairment from an injury or disease can choose to be paid a Special Rate Disability Pension under Part 6 instead of compensation under Part 4.

Part 7 provides for additional compensation and benefits to be provided, such as compensation to modify vehicles, and compensation for household and attendant care services and damage to a member’s medical aid. Part 7 also provides for an allowance to pay for a current or former member’s home phone.

Part 2—Permanent impairment

66 Simplified outline of this Part

Compensation is payable for permanent impairment that occurs as a result of one or more service injuries or diseases if the degree of that impairment is above a certain level.

The level of impairment is measured in impairment points according to a guide prepared by the Commission.

Interim compensation can be payable to a person whose condition has not stabilised.

The compensation is payable weekly unless the person chooses to convert some or all of the weekly amount to a lump sum.

A severely impaired person who has a dependent child is entitled to an additional lump sum.

67 Guide to determining impairment and compensation

(1) The Commission may determine, in writing, a guide setting out:

(a) criteria to be used in deciding the degree of impairment of a person resulting from a service injury or disease; and

(b) methods by which the degree of that impairment can be expressed in impairment points on a scale from 0 to 100; and

(d) methods by which the effect of a service injury or disease on a person’s lifestyle can be expressed as a numerical rating; and

(e) methods by which the impairment points of a person, and the effect on a person’s lifestyle, from a service injury or disease can be used to determine the compensation payable to the person under this Part by reference to the maximum compensation that can be payable to a person under this Part.

(2) The guide must:

(a) specify different methods under paragraph (1)(e) for:

(i) service injuries or diseases that relate to warlike service or non‑warlike service; and

(ii) other service injuries or diseases; and

(b) specify a method for determining the compensation payable to a person who has both:

(i) a service injury or disease that relates to warlike service or non‑warlike service; and

(ii) another service injury or disease.

(3) The Commission may, from time to time, repeal or amend the guide in writing.

(4) The guide, and any repeal or amendment of the guide, is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.

68 Entitlement to compensation for permanent impairment

(1) The Commonwealth is liable to pay compensation to a person if:

(a) the Commission has accepted liability for one or more service injuries or diseases (the compensable condition) of the person; and

(b) the Commission is satisfied that:

(i) as a result of the compensable condition, the person has suffered an impairment; and

(ii) the impairment is likely to continue indefinitely; and

(iii) the person’s compensable condition has stabilised; and

Note 1: The impairment must constitute a minimum number of impairment points for compensation to be payable (see sections 69 and 70). However, the impairment points from more than one service injury or disease can be combined to make up that minimum number.

Note 2: This subsection might also be affected by sections 73 (indefinite impairments) and 389 (choice to institute action for damages).

(2) The Commission must determine:

(a) the degree of impairment suffered by the person as a result of the compensable condition; and

(b) the date on which the person became entitled to compensation under this section by satisfying paragraph (1)(b) and sections 69 and 70 (if applicable).

69 No compensation for less than the threshold impairment points

The Commonwealth is liable to pay compensation to a person under section 68 only if:

(a) for an impairment resulting from a single service injury or disease consisting of:

(i) hearing loss; or

(ii) the loss, or the loss of the use, of a finger or toe; or

(iii) the loss of the sense of taste or smell;

the impairment suffered by the person constitutes at least 5 impairment points; and

(b) otherwise—the impairment suffered by the person from the compensable condition constitutes at least 10 impairment points.

Note: This section might be affected by section 70 (aggravations etc.).

70 Compensation for aggravations etc.

(1) The Commonwealth is liable to pay compensation under section 68 in respect of a single aggravated injury or disease only if:

(a) for an aggravation of, or a material contribution to:

(i) hearing loss; or

(ii) the loss, or the loss of the use, of a finger or toe; or

(iii) the loss of the sense of taste or smell;

the impairment suffered by the person as a result of the aggravation or material contribution constitutes at least 5 impairment points; and

(b) otherwise—the impairment suffered by the person as a result of the aggravation or material contribution constitutes at least 10 impairment points.

(2) The amount of compensation that the Commonwealth is liable to pay in respect of the person’s aggravated injury or disease is the amount payable in respect of the impairment points of the person, and the effect on the person’s lifestyle, from the aggravation or material contribution.

71 Additional compensation

Additional compensation for impairment from another service injury or disease

(1) The Commonwealth is liable to pay additional compensation to a person who has been paid, or is entitled to be paid, compensation under this Part (including interim compensation under section 75) if:

(a) the Commission has accepted liability for one or more additional service injuries or diseases of the person (other than the original compensable condition in respect of which the person is entitled to be paid compensation); and

(b) the Commission is satisfied that:

(i) as a result of the additional injuries or diseases, the person suffers additional impairment; and

(ii) the additional impairment is likely to continue indefinitely; and

(iii) the increase in the person’s overall impairment constitutes at least 5 impairment points; and

(iv) each of the person’s additional injuries or diseases have stabilised; and

Note 1: The impairment points from more than one service injury or disease can be combined to make up the 5 impairment points needed for compensation to be payable.

Note 2: This subsection might also be affected by sections 72 (aggravations), 73 (indefinite impairments) and 389 (choice to institute action for damages).

Additional compensation for deterioration of original condition

(2) The Commonwealth is liable to pay additional compensation to a person who has been paid, or is entitled to be paid, compensation under this Part (including interim compensation under section 75) for the compensable condition if:

(a) the Commission is satisfied that:

(i) the person has suffered additional impairment as a result of a deterioration in the person’s compensable condition; and

(ii) the additional impairment is likely to continue indefinitely; and

(iii) the deterioration is directly related to the natural progression of the compensable condition; and

(iv) the increase in the person’s overall impairment constitutes at least 5 impairment points; and

(v) the person’s compensable condition has stabilised; and

(b) a claim for compensation in respect of the person has been made under section 319.

Note 1: This subsection might be affected by sections 72 (aggravations etc.) and 73 (indefinite impairments).

Note 2: The Commission must be notified of the deterioration (see paragraph 77(3)(a)).

Determination of date

(3) The Commission must determine the date on which:

(a) for additional compensation under subsection (1)—the person became entitled to compensation under this section by satisfying paragraph (1)(b) and section 72 (if applicable); and

(b) for additional compensation under subsection (2)—the person became entitled to compensation under this section by satisfying paragraph (2)(a).

72 Additional compensation for aggravations etc.

(1) The Commonwealth is liable to pay additional compensation under subsection 71(1) in respect of a single aggravated injury or disease only if the increase in the person’s overall impairment resulting from the aggravation or material contribution constitutes at least 5 impairment points.

(2) The amount of additional compensation that the Commonwealth is liable to pay under subsection 71(1) in respect of the aggravated injury or disease of a person is the amount payable in respect of the impairment points of the person, and the effect on the person’s lifestyle, from the aggravation or material contribution.

73 Deciding whether an impairment is likely to continue indefinitely

For the purposes of subparagraph 68(1)(b)(ii) and subparagraphs 71(1)(b)(ii) and (2)(a)(ii), in deciding whether an impairment suffered by a person is likely to continue indefinitely, the Commission must have regard to:

(a) the duration of the impairment; and

(b) the likelihood of improvement in the one or more service injuries or diseases concerned; and

(d) any other relevant matters.

74 Amount of compensation

(1) The maximum weekly amount of compensation payable to a person under this Part (including additional compensation under section 71) is $233.07.

Note: The amount of $233.07 is indexed under section 404.

(2) The Commission must, as soon as practicable after the Commonwealth becomes liable to pay compensation under section 68 or 71 to a person for an impairment resulting from one or more service injuries or diseases:

(a) assess the effect of the injuries or diseases on the person’s lifestyle; and

(b) determine the weekly amount of compensation to which the person is entitled under that section.

75 Interim compensation

(1) The Commonwealth is liable to pay interim compensation to a person if:

(a) the Commission is satisfied that the person will be entitled to compensation under section 68 or 71; and

(b) the Commission is not able to determine the degree of impairment suffered by the person because the one or more service injuries or diseases concerned have not stabilised; and

(c) the Commission is satisfied that the impairment suffered by the person as a result of the injuries or diseases constitutes at least 10 impairment points; and

(d) a claim for compensation in respect of the person has been made under section 319.

Note 1: The impairment points from more than one service injury or disease can be combined to make up the 10 impairment points needed for compensation to be payable.

Note 2: Compensation is not payable under this section if the person chooses under section 389 to institute a common law action.

(2) The weekly amount of the interim compensation is the amount the Commission determines to be reasonable having regard to the Commission’s estimate of the final degree of impairment that will be suffered by the person (but not having regard to the effect of the injuries or diseases on the person’s lifestyle).

(3) The Commission must determine the date on which the impairment suffered by the person constituted at least 10 impairment points.

(4) The Commission must, when the Commission becomes satisfied that the one or more injuries or diseases concerned have all stabilised:

(a) determine the degree of impairment suffered by the person; and

(b) assess the effect of the injuries or diseases on the person’s lifestyle; and

(5) If the weekly amount determined under subsection (4) is more than the weekly amount determined under subsection (2), the person is entitled to an additional weekly amount equal to the difference between those amounts.

76 Notifying the claimant

(1) If the Commission determines, under section 74, the weekly amount of compensation that is payable to a person under section 68 or 71, or determines the weekly amount of interim compensation payable to a person under subsection 75(2), the Commission must give the person a written notice:

(a) specifying that weekly amount; and

(b) specifying what percentage that weekly amount is of the maximum weekly amount of compensation that could be payable to a person under this Part; and

(c) advising the person that the person can choose, under section 78, to convert some or all of the weekly amount to a lump sum in accordance with that section.

Note 1: Section 74 sets the maximum weekly amount of compensation that could be payable to a person under this Part. That amount is indexed under section 404.

Note 2: If the Commission determines that no compensation is payable under this Part, the Commission is required to notify the person of that determination (see section 346).

(2) If the Commission determines under subsection 75(4) a weekly amount of compensation payable to a person that is more than the weekly amount determined for the person under subsection 75(2), the Commission must give the person a written notice:

(a) specifying the difference between those weekly amounts; and

(b) advising the person that the person can choose, under section 78, to receive a lump sum instead of the difference between those weekly amounts (whether or not the person has made a choice under that section in respect of the amount determined for the person under subsection 75(2)).

Note: The amount of the lump sum is worked out under subsection 78(5).

(3) The notice must specify the date on which it is given.

(4) The notice may be included in the notice given under section 346.

77 When weekly compensation becomes payable

(1) Weekly compensation payable to a person under section 68 is payable from the later of:

(a) either:

(i) if compensation is payable in respect of a single service injury or disease—the date on which a claim was made under section 319 for acceptance of liability for the injury or disease; or

(ii) otherwise—the date on which the most recent claim was made under section 319 for acceptance of liability for one of the service injuries or diseases concerned; and

(b) the date determined by the Commission under paragraph 68(2)(b).

(2) Additional weekly compensation payable to a person under subsection 71(1) is payable from the later of:

(a) either:

(i) if compensation is payable in respect of a single service injury or disease—the date on which a claim was made under section 319 for acceptance of liability for the injury or disease; or

(ii) otherwise—the date on which the most recent claim was made under section 319 for acceptance of liability for one of the service injuries or diseases concerned; and

(b) the date determined by the Commission under paragraph 71(3)(a).

(3) Additional weekly compensation payable to a person under subsection 71(2) in relation to a deterioration in a person’s condition is payable from the later of:

(a) the date on which the Commission was notified of the deterioration in the one or more service injuries or diseases concerned; and

(b) the date determined by the Commission under paragraph 71(3)(b).

(4) Interim weekly compensation payable to a person under section 75 is payable from the later of:

(a) either:

(i) if compensation is payable in respect of a single service injury or disease—the date on which a claim was made under section 319 for acceptance of liability for the injury or disease; or

(ii) otherwise—the date on which the most recent claim was made under section 319 for acceptance of liability for one of the service injuries or diseases concerned; and

(b) the date determined by the Commission under subsection 75(3).

(5) An additional weekly amount to which a person is entitled under subsection 75(5) is payable from the date on which the Commission becomes satisfied that all of the person’s service injuries or diseases have stabilised.

78 Choice to take lump sum

(1) A person who receives a notice under section 76 about a weekly amount payable to the person under section 68 or 71 or subsection 75(2) (the convertible amount) may choose:

(a) to convert 100% of the convertible amount to a lump sum; or

(b) if the convertible amount is at least 10%, but not more than 20%, of the maximum weekly amount of compensation that could be payable to a person under this Part—to convert 50% of the convertible amount to a lump sum; or

(c) if the convertible amount is more than 20% of the maximum weekly amount of compensation that could be payable to a person under this Part—to convert 25%, 50% or 75% of the convertible amount to a lump sum.

Note: Section 74 sets the maximum weekly amount of compensation that could be payable to a person under this Part. That amount is indexed under section 404.

(2) A person who makes the choice cannot change it.

(3) The choice must be made in writing and must be given to the Commission within 6 months after the date on which the person received the notice.

(4) The Commission may, either before or after the end of that period, extend the period within which the choice must be made if it considers there are special circumstances for doing so.

(5) The amount of the lump sum is worked out using the following formula:

where:

appropriate percentage means the percentage chosen by the person under subsection (1).

notice date means the date specified in the notice given to the person under section 76.

weekly amount converted to a lump sum means the appropriate percentage of the weekly amount payable to the person, as at the date of the notice given to the person under section 76, converted to a lump sum in accordance with advice from the Australian Government Actuary by reference to the person’s age at that date.

Note: Arrears of compensation are payable for the period between the date when compensation became payable and the notice date. These are not subtracted from the weekly amount converted to a lump sum.

(6) However, a lump sum that can be payable to a person must not exceed that worked out by reference to the conversion to a lump sum of a periodic payment payable to a male aged 30.

(7) The legal personal representative of a deceased person is not entitled to choose to convert any percentage of a weekly amount that was payable to the deceased person to a lump sum.

79 When lump sum is payable

(1) The lump sum is payable to the person within 30 days after the date on which the Commission became aware of the choice under section 78.

(2) The Commonwealth is liable to pay interest to the person on the amount of the lump sum if the lump sum is not paid to the person before the end of that period. The interest is payable in respect of the period starting at the end of that period of 30 days and ending on the day on which the lump sum is paid.

(3) The interest is payable at the rate from time to time determined in writing by the Minister.

(4) A determination under subsection (3) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.

80 Additional amounts payable if maximum compensation paid

(1) This section applies to a person (the impaired person) who has been paid, or is entitled to be paid, compensation under this Part if the Commission has determined that the degree of impairment suffered by the person as a result of one or more service injuries or diseases constitutes at least 80 impairment points.

(2) The Commonwealth is liable to pay the impaired person $60,000 for each person who is both a dependant of the impaired person and an eligible young person at the later of:

(a) the date determined by the Commission to be the date on which the impairment suffered by the impaired person constitutes at least 80 impairment points; or

(b) either:

(i) if the person has a single service injury or disease—the date on which a claim was made under section 319 for acceptance of liability for the injury or disease; or

(ii) otherwise—the date on which the most recent claim was made under section 319 for acceptance of liability for one of the service injuries or diseases concerned.

Note: The amount of $60,000 is indexed under section 404.

(3) The amount specified in subsection (2) is also payable in respect of a son or daughter of the impaired person:

(a) who was born alive on or after the later of those times but who was conceived before that time; or

(b) who was adopted on or after the later of those times but in respect of whom adoption proceedings were begun before that time.

81 Compensation for cost of financial advice

The Commonwealth is liable to pay compensation for the cost of financial advice obtained by a person if:

(a) the Commonwealth is liable to pay compensation to the person under section 68, 71 or 75; and

(b) the Commission determines that the impairment suffered by the person as a result of one or more service injuries or diseases constitutes at least 50 impairment points; and

(c) after the Commission has made the determination, the person obtains financial advice from a suitably qualified financial adviser; and

(d) a claim for compensation in respect of the person has been made under section 319.

82 Amount of financial advice compensation

(1) The Commission must determine an amount of compensation under section 81 for the cost of the financial advice that it considers reasonable. However, the total amount must not exceed $1,200.

Note: The amount of $1,200 is indexed under section 404.

(2) The total amount of $1,200 applies both to financial advice under this Part for the person and financial advice under Part 6 (Special Rate Disability Pension) for the person if the date specified in the first notice given to the person under section 76, and the date on which the offer under Part 6 was made, are the same.

83 Whom the compensation is payable to

(1) Compensation under section 81 for the cost of financial advice is payable to:

(a) the person who made the claim for compensation; or

(b) if that person so directs:

(i) the person who gave the financial advice; or

(ii) any other person who incurred the cost of the financial advice.

Note: A special rule applies if a trustee is appointed under section 432.

(2) An amount paid to the person who gave the financial advice discharges any liability of any other person for the cost of the financial advice to the extent of the payment.

Part 3—Compensation for incapacity for service or work for members

Division 1—Entitlement to compensation

84 Simplified outline of this Part

This Part provides for compensation to be provided for current members who are incapacitated for service as a result of a service injury or disease. The Part also provides for compensation for some current part‑time Reservists, cadets and declared members who are incapacitated for work as a result of a service injury or disease.

The Commission must have accepted liability for the injury or disease, and a claim must have been made in respect of the member, to be entitled to the compensation.

The amount of compensation a member receives for a week depends on the difference between the member’s normal and actual earnings for the week. The member’s normal earnings are a notional amount. The member’s actual earnings are based on how much the member actually earns for the week.

Normal earnings are worked out under Divisions 2 to 6, depending on the member’s current status (for example, as a Permanent Forces member or a Reservist) and their status at the time the service injury or disease occurred.

Part 5 of this Chapter contains other important rules that apply in working out normal earnings, actual earnings and the amount of compensation generally.

85 Compensation for incapacitated full‑time members

(1) The Commonwealth is liable to pay compensation to a person for a week if:

(a) the person is a Permanent Forces member or a continuous full‑time Reservist for the week; and

(b) the Commission has accepted liability for a service injury or disease of the person; and

(d) a claim for compensation in respect of the person has been made under section 319.

Note: This section might be affected by the following provisions:

(a) sections 50, 52 and 329 (failure to undergo examination or rehabilitation program);

(b) section 88 (aggravations etc.);

(2) The amount of compensation that the Commonwealth is liable to pay is worked out under section 89.

Note: The Commonwealth is not liable to pay compensation if the amount worked out under section 89 is nil or a negative amount.

86 Compensation for incapacitated part‑time Reservists

(1) The Commonwealth is liable to pay compensation to a person for a week if:

(a) the person is a part‑time Reservist for the week; and

(b) the Commission has accepted liability for a service injury or disease of the person; and

(i) the service injury or disease results in the person’s incapacity for service for the week;

(ii) the service injury or disease results in the person’s incapacity for work for the week; and

(d) the person’s service chief has not advised the Commission under section 10 that the person is unlikely to be able to perform the duties of a part‑time Reservist in the future; and

(e) a claim for compensation in respect of the person has been made under section 319.

Note 1: This section might be affected by the following provisions:

(a) sections 50, 52 and 329 (failure to undergo examination or rehabilitation program);

(b) section 88 (aggravations etc.);

Note 2: A person whose service chief has advised the Commission under section 10 that the person is unlikely to be able to perform the duties of a part‑time Reservist in the future might be entitled to compensation under Part 4.

(2) The amount of compensation that the Commonwealth is liable to pay is worked out under section 89.

Note: The Commonwealth is not liable to pay compensation if the amount worked out under section 89 is nil or a negative amount.

87 Compensation for incapacitated cadets and declared members

(1) The Commonwealth is liable to pay compensation to a person for a week if:

(a) the person is a cadet or a declared member for the week; and

(b) the Commission has accepted liability for a service injury or disease of the person; and

(d) if the person is a cadet—the commanding officer of the cadet’s unit (within the meaning of the Cadet Forces Regulations 1977) has not advised the Commission under section 10 that the person is unlikely to be able to perform the duties of a cadet in the future; and

(e) a claim for compensation in respect of the person has been made under section 319.

Note 1: This section might be affected by the following provisions:

(a) sections 50, 52 and 329 (failure to undergo examination or rehabilitation program);

(b) section 88 (aggravations etc.);

Note 2: A person whose commanding officer has advised the Commission under section 10 that the person is unlikely to be able to perform the duties of a cadet in the future might be entitled to compensation under Part 4.

(2) The amount of compensation that the Commonwealth is liable to pay is worked out under section 89.

Note: The Commonwealth is not liable to pay compensation if the amount worked out under section 89 is nil or a negative amount.

88 No compensation in certain cases relating to aggravations etc. of injuries or diseases

The Commonwealth is only liable to pay compensation under section 85, 86 or 87 in respect of an aggravated injury or disease if it is because of the aggravation or material contribution (whether wholly or partly) that the service injury or disease results in the person’s incapacity for service or work for the week.

89 Amount of compensation for current members

(1) The amount of compensation that the Commonwealth is liable, under section 85, 86, or 87, to pay to a member for a week is worked out using the following formula:

(2) However, if an amount of compensation worked out using the formula is nil or a negative amount, then the Commonwealth is not liable to pay the compensation for the week.

(3) Use this table to work out a member’s actual earnings and normal earnings:

Definitions of actual earnings and normal earnings
Item	For this type of member	actual earnings has the meaning given by...	normal earnings has the meaning given by...
1	A Permanent Forces member	section 92	subsection 91(1)
2	A continuous full‑time Reservist	section 92	subsection 91(1)
3	A part‑time Reservist to whom Division 3 applies	section 101	subsection 95(1)
4	A part‑time Reservist to whom Division 4 applies	section 105	subsection 104(1)
5	A part‑time Reservist to whom Division 5 applies	section 115	subsection 108(1)
6	A cadet or a declared member	the regulations (see Division 6)	the regulations (see Division 6)

Note 1: If a member’s normal earnings are less than the federal minimum wage, then the member’s normal earnings are instead the federal minimum wage (see section 179).

Note 2: Certain amounts (such as bonuses) are excluded from the calculation of normal and actual earnings under section 180.

Division 2—Working out normal and actual earnings for full‑time members

90 Simplified outline of this Division

This Division tells you how to work out the normal and actual earnings for a Permanent Forces member or a continuous full‑time Reservist who is incapacitated for service.

The normal earnings are based on how much the member would have earned for the week if the member were not incapacitated. Normal earnings worked out under this Division might be adjusted under Part 5.

Section 92 tells you how to work out actual earnings.

91 Working out normal earnings

(1) The normal earnings for a week for a Permanent Forces member, or a continuous full‑time Reservist, who is incapacitated for service means the amount worked out using the following formula:

(2) The member’s normal ADF pay for a week means the amount of pay that the member would have earned for the week as a member of the Defence Force if the member were not incapacitated for service.

Note: The member’s normal ADF pay might be adjusted under Part 5.

(3) The member’s normal pay‑related allowances for a week means the total amount of compensable pay‑related allowances that would have been paid to the member for the week if the member were not incapacitated for service.

Note: The member’s normal pay‑related allowances might be adjusted under Part 5.

(4) The member’s service chief must advise the Commission in writing of the date on which each compensable pay‑related allowance would normally have ceased to be paid to the member if the member were not incapacitated for service.

(5) In this section:

compensable pay‑related allowance for a member means a pay‑related allowance:

(a) that was being paid to the member immediately before the onset date for the member’s incapacity for service; or

(b) that would be paid to the member because the member is promoted, as mentioned in paragraph 186(2)(b).

92 Working out actual earnings

(1) The actual earnings for a week for a Permanent Forces member, or a continuous full‑time Reservist, who is incapacitated for service means the amount worked out using the following formula:

(2) The member’s actual ADF pay for a week means the amount of pay that the member earns for the week as a member of the Defence Force.

(3) The member’s actual pay‑related allowances for a week means the total amount of compensable pay‑related allowances (as defined in subsection 91(5)) that are paid to the member for the week.

Division 3—Working out normal and actual earnings for part‑time Reservists

Subdivision A—Simplified outline of this Division

93 Simplified outline of this Division

This Division tells you how to work out the normal and actual earnings for a person who is currently a part‑time Reservist and who was a part‑time Reservist when the service injury or disease occurred. (For example, this Division would apply to a person who has always been a part‑time Reservist.)

The Reservist’s normal earnings are made up of an ADF component and a civilian component. For a Reservist who is incapacitated for both service and work:

(a) the ADF component is based on how much the Reservist would have earned as a part‑time Reservist if the Reservist were not incapacitated for service; and

(b) the civilian component is based on how much the Reservist earned from civilian work during an example period taken from before the onset of the incapacity for work.

Normal earnings worked out under this Division might be adjusted under Part 5.

Subdivision E tells you how to work out actual earnings.

Subdivision B—Working out normal earnings for part‑time Reservists

94 Application of this Division to part‑time Reservists

This Division applies to a person in respect of a week if:

(a) the person is a part‑time Reservist for the week; and

(b) the person is incapacitated for either or both service or work for the week as a result of a service injury or disease; and

(c) the person was also a part‑time Reservist when the service injury was sustained or the service disease was contracted.

The person is called an incapacitated Reservist in this Division.

95 Working out normal earnings

(1) The normal earnings for an incapacitated Reservist for a week is the amount worked out using the following formula:

(2) In this section:

ADF component for a week:

(a) for an incapacitated Reservist who is incapacitated for service—means the amount worked out under section 96; and

(b) for an incapacitated Reservist who is not incapacitated for service—means the amount worked out under section 97.

civilian component for a week:

(a) for an incapacitated Reservist who is incapacitated for work—means the amount worked out under section 98; and

(b) for an incapacitated Reservist who is not incapacitated for work—means the amount worked out under section 100.

Subdivision C—Working out the ADF component of normal earnings

96 Working out the ADF component for an incapacitated Reservist who is incapacitated for service

(1) The ADF component for a week for an incapacitated Reservist who is incapacitated for service is the amount worked out using the following formula:

Note: The expressions used in this formula are defined in subsection (3).

(2) The Reservist’s service chief must advise the Commission in writing of:

(a) the date on which each compensable pay‑related allowance would normally have ceased to be paid to the Reservist; and

(b) the number of days (if any) in each week that the Reservist would have been paid as a Reservist; and

(c) the number of days (if any) in each week that the Reservist would have been paid an amount of pay‑related allowances;

if the Reservist were not incapacitated for service.

(3) In this section:

amount of pay‑related allowances for an incapacitated Reservist for a day means the total amount of compensable pay‑related allowances that would have been paid to the Reservist as a part‑time Reservist for the day if the Reservist were not incapacitated for service.

Note: The Reservist’s pay‑related allowances might be adjusted under Part 5.

compensable pay‑related allowance means a pay‑related allowance:

(a) that was being paid to an incapacitated Reservist immediately before the onset date for the Reservist’s incapacity for service; or

(b) that would be paid to an incapacitated Reservist because the Reservist is promoted, as mentioned in paragraph 186(2)(b).

pay‑related allowance days for an incapacitated Reservist for a week means the number of days advised by the Reservist’s service chief under paragraph (2)(c).

rate of pay for an incapacitated Reservist for a day means the amount of pay that the Reservist would have earned for the day as a part‑time Reservist if the Reservist were not incapacitated for service.

Note: The Reservist’s rate of pay might be adjusted under Part 5.

reserve days for an incapacitated Reservist for a week means the number of days advised by the Reservist’s service chief under paragraph (2)(b).

97 Working out the ADF component for an incapacitated Reservist who is not incapacitated for service

(1) The ADF component for a week for an incapacitated Reservist who is not incapacitated for service means the amount worked out using the following formula:

Note: An incapacitated Reservist might only be incapacitated for work and not incapacitated for service (see paragraph 86(1)(c)).

(2) In this section:

compensable pay‑related allowance has the same meaning as in subsection 96(3).

Subdivision D—Working out the civilian component of normal earnings

98 Working out the civilian component for an incapacitated Reservist who is incapacitated for work

Working out the civilian component of normal earnings

(1) The civilian component for a week for an incapacitated Reservist who is incapacitated for work is the amount worked out using the following formula:

Note: The civilian component for an incapacitated Reservist who is not incapacitated for work is worked out under section 100.

Civilian daily earnings for those working before the onset of the incapacity

(2) The following formula sets out how to work out the civilian daily earnings for an incapacitated Reservist who was engaged in civilian work before the onset date for the incapacity:

Note 1: The expressions used in this formula are defined in subsection (5).

Note 2: The Reservist’s civilian daily earnings might be adjusted under Part 5.

(3) If the incapacitated Reservist was required to work overtime on a regular basis in that work, the civilian daily earnings also include the amount worked out using the following formula:

Note: The expressions used in this formula are defined in subsection (5).

Civilian daily earnings for those not working

(4) The civilian daily earnings for an incapacitated Reservist who was not engaged in civilian work before the onset date for the incapacity is nil.

Definitions

(5) In this section:

allowances for an incapacitated Reservist for a day means the average amount of allowances (other than expense allowances) paid to the Reservist for a day for his or her civilian work during the example period.

civilian daily hours for an incapacitated Reservist means the average number of hours worked each day by the Reservist in his or her civilian work during the example period.

civilian overtime hours for an incapacitated Reservist means the average number of hours of overtime worked each day by the Reservist in his or her civilian work during the example period.

civilian overtime rate of pay for an incapacitated Reservist means the average hourly overtime rate of pay for the Reservist’s overtime in civilian work during the example period.

civilian rate of pay for an incapacitated Reservist means the average hourly ordinary time rate of pay for the Reservist’s civilian work during the example period.

example period has the meaning given by section 99.

99 Definition of example period for the civilian component of normal earnings

(1) For the purposes of section 98, the example period for an incapacitated Reservist who is incapacitated for work is the latest period of 2 weeks:

(a) during which the Reservist was continuously engaged in civilian work; and

(b) ending before the onset date for the incapacity.

(2) However, the Commission may determine as the example period:

(a) a different 2 week period that it considers reasonable; or

(b) a period of a different length that it considers reasonable;

if the civilian daily earnings for the example period under subsection (1) would not fairly represent the daily rate at which the Reservist was being paid for his or her civilian work before the onset date for the incapacity.

100 Working out the civilian component for an incapacitated Reservist who is not incapacitated for work

The civilian component for a week for an incapacitated Reservist who is not incapacitated for work is the amount the Reservist earns (including from allowances other than expense allowances) for the week from civilian work that he or she undertakes for the week.

Note: An incapacitated Reservist might only be incapacitated for service and not incapacitated for work (see paragraph 86(1)(c)).

Subdivision E—Working out actual earnings

101 Working out actual earnings

(1) The actual earnings for a week for an incapacitated Reservist means the amount worked out using the following formula:

(2) The Reservist’s actual ADF pay for a week means the amount of pay that the Reservist earns for the week as a part‑time Reservist.

(3) The Reservist’s actual pay‑related allowances for a week means the total amount of compensable pay‑related allowances (as defined in subsection 96(3)) that are paid to the Reservist for the week.

(4) The Reservist’s actual civilian earnings means the greater of the following amounts:

(a) the weekly amount (if any) that the Reservist is able to earn in suitable work;

(b) the amount the Reservist earns (including from allowances other than expense allowances) for the week from civilian work that he or she undertakes for the week.

Note: Section 181 sets out some matters the Commission must have regard to in determining how much the person is able to earn under paragraph (4)(a).

Division 4—Working out normal and actual earnings for part‑time Reservists who were previously Permanent Forces members

102 Simplified outline of this Division

This Division tells you how to work out the normal and actual earnings for a person:

(a) who is currently a part‑time Reservist; and

(b) who was a Permanent Forces member or a continuous full‑time Reservist when the service injury or disease occurred; and

The normal earnings are based on the amount the person would have earned if the person were still a Permanent Forces member.

Normal earnings worked out under this Division might be adjusted under Part 5.

Section 105 tells you how to work out actual earnings.

103 Application of this Division to part‑time Reservists who were previously Permanent Forces members

This Division applies to a person in respect of a week if:

(a) the person is a part‑time Reservist for the week; and

(b) the person is incapacitated for either or both service or work for the week as a result of a service injury or disease; and

(c) the person was a Permanent Forces member, or a continuous full‑time Reservist, when the service injury was sustained or the service disease contracted; and

(d) the person was a Permanent Forces member immediately before completing his or her last period of full‑time service.

The person is called an incapacitated Reservist in this Division.

104 Working out normal earnings

(1) The normal earnings for a week for an incapacitated Reservist means the amount worked out using the following formula:

Note: The amount of $100 is indexed under section 183.

(2) The Reservist’s full‑time ADF pay for a week means the amount of pay that the Reservist would have earned for the week as a Permanent Forces member if:

(a) the Reservist were still a Permanent Forces member; and

(b) the Reservist were not incapacitated for service.

Note: The Reservist’s full‑time ADF pay might be adjusted under Part 5.

(3) The Reservist’s allowance component for a week means the total amount of compensable pay‑related allowances that would have been paid to the Reservist for the week if:

(a) the Reservist were still a Permanent Forces member; and

(b) the Reservist were not incapacitated for service.

Note: The Reservist’s allowance component might be adjusted under Part 5.

(4) The Reservist’s service chief must advise the Commission in writing of the date on which each compensable pay‑related allowance would normally have ceased to be paid to the Reservist if:

(a) the Reservist were still a Permanent Forces member; and

(b) the Reservist were not incapacitated for service.

(5) In this section:

compensable pay‑related allowance for an incapacitated Reservist means a pay‑related allowance:

(a) that was being paid to the Reservist immediately before completing his or her last period of full‑time service; or

(b) that the Reservist would have been paid after completing his or her initial training, as mentioned in section 189.

105 Working out actual earnings

(1) The actual earnings for a week for an incapacitated Reservist means the amount worked out using the following formula:

(2) The Reservist’s actual ADF pay for a week means the amount of pay that the Reservist earns for the week as a part‑time Reservist.

(3) The Reservist’s actual pay‑related allowances for a week means the total amount of compensable pay‑related allowances (as defined in subsection 104(5)) that are paid to the Reservist for the week.

(4) The Reservist’s actual civilian earnings means the greater of the following amounts:

(a) the weekly amount (if any) that the Reservist is able to earn in suitable work;

(b) the amount the Reservist earns (including from allowances other than expense allowances) for the week from civilian work that he or she undertakes for the week.

Note: Section 181 sets out some matters the Commission must have regard to in determining how much the person is able to earn under paragraph (4)(a).

Division 5—Working out normal and actual earnings for part‑time Reservists who were previously continuous full‑time Reservists

Subdivision A—Simplified outline of this Division

106 Simplified outline of this Division

This Division tells you how to work out the normal and actual earnings for a person:

(a) who is currently a part‑time Reservist; and

(b) who was a Permanent Forces member or a continuous full‑time Reservist when the service injury or disease occurred; and

The Reservist has a one‑off choice between 2 ways of working out normal earnings. Normal earnings can be based on the amount the person would have earned if the person were still a continuous full‑time Reservist. (This amount is called the full‑time ADF earnings.) Alternatively, normal earnings can be based on the Reservist’s earnings from other work engaged in before beginning his or her last period of continuous full‑time service. (This amount is called the pre‑CFTS earnings.)

Normal earnings worked out under this Division might be adjusted under Part 5.

Subdivision B—Working out normal earnings for part‑time Reservists who were previously continuous full‑time Reservists

107 Application of this Division to part‑time Reservists who were previously continuous full‑time Reservists

This Division applies to a person in respect of a week if:

(a) the person is a part‑time Reservist for the week; and

(b) the person is incapacitated for either or both service or work for the week as a result of a service injury or disease; and

(c) the person was a Permanent Forces member, or a continuous full‑time Reservist, when the service injury was sustained or the service disease was contracted; and

(d) the person was a continuous full‑time Reservist immediately before completing his or her last period of full‑time service.

The person is called an incapacitated Reservist in this Division.

108 Working out normal earnings

(1) The normal earnings for the week for an incapacitated Reservist means whichever of the following amounts is chosen by the Reservist:

(a) the amount of the Reservist’s full‑time ADF earnings for a week (see Subdivision C);

(b) the amount of the Reservist’s pre‑CFTS earnings for a week (see Subdivision D).

(2) The Reservist must inform the Commission in writing of his or her choice between the full‑time ADF earnings and the pre‑CFTS earnings.

(3) The Reservist is only entitled to make one choice for all weeks in respect of which this Division applies. The Reservist cannot change his or her choice once it has been made.

Subdivision C—Working out full‑time ADF earnings

109 Working out full‑time ADF earnings

(1) The full‑time ADF earnings for a week for an incapacitated Reservist means the amount worked out using the following formula:

Note: The amount of $100 is indexed under section 183.

(2) The Reservist’s full‑time ADF pay for a week means the amount of pay that the Reservist would have earned for the week as a continuous full‑time Reservist if:

(a) the Reservist were still a continuous full‑time Reservist; and

(b) the Reservist were not incapacitated for service.

Note: The Reservist’s full‑time ADF pay might be adjusted under Part 5.

(3) The Reservist’s allowance component for a week means the total amount of compensable pay‑related allowances that would have been paid to the Reservist for the week if:

(a) the Reservist were still a continuous full‑time Reservist; and

(b) the Reservist were not incapacitated for service.

Note: The Reservist’s allowance component might be adjusted under Part 5.

(4) The Reservist’s service chief must advise the Commission in writing of the date on which each compensable pay‑related allowance would normally have ceased to be paid to the Reservist if:

(a) the Reservist were still a continuous full‑time Reservist; and

(b) the Reservist were not incapacitated for service.

(5) In this section:

compensable pay‑related allowance for an incapacitated Reservist means a pay‑related allowance:

(a) that was being paid to the Reservist immediately before completing his or her last period of full‑time service; or

(b) that the Reservist would have been paid after completing his or her initial training, as mentioned in section 189.

Subdivision D—Working out pre‑CFTS earnings

110 Simplified outline of this Subdivision

The pre‑CFTS earnings are worked out by looking back at the period before the Reservist began his or her last period of continuous full‑time service. During this period, the Reservist might have been a part‑time Reservist as well as being engaged in other work.

The Reservist’s pre‑CFTS earnings have 2 components: pre‑CFTS pay and reserve pay. The Reservist’s pre‑CFTS pay is based on earnings from work the Reservist was engaged in before beginning the last period of continuous full‑time service. The work engaged in might be civilian work or defence work (as some people become continuous full‑time Reservists after being Permanent Forces members). The Reservist’s reserve pay is based on earnings from service as a part‑time Reservist.

However, for a Reservist whose service injury or disease occurred while a continuous full‑time Reservist, the Commission may determine pre‑CFTS earnings by looking back at the period before the onset date for the Reservist’s incapacity instead of the period before the Reservist began his or her last period of continuous full‑time service.

111 Working out pre‑CFTS earnings

(1) The pre‑CFTS earnings for a week for an incapacitated Reservist means the amount worked out using the following formula:

(2) In this section:

pre‑CFTS pay for a person for a week is worked out under section 112.

reserve pay for a person for a week is worked out under section 114.

112 Working out pre‑CFTS pay

Pre‑CFTS pay for those engaged in work before beginning last period of full‑time service

(1) The following formula sets out how to work out the pre‑CFTS pay for a week for an incapacitated Reservist who was engaged in work before beginning his or her last period of continuous full‑time service:

Note 1: The expressions used in this formula are defined in subsection (4).

Note 2: The Reservist’s pre‑CFTS pay might be adjusted under Part 5.

(2) If the incapacitated Reservist was required to work overtime on a regular basis in that work, the pre‑CFTS pay for a week also includes the amount worked out using the following formula:

Note: The expressions used in this formula are defined in subsection (4).

Pre‑CFTS pay for those not working

(3) The pre‑CFTS pay for a week for an incapacitated Reservist who was not engaged in work before beginning his or her last period of full‑time service is nil.

Definitions

(4) In this section:

allowances for an incapacitated Reservist for a week is the average amount of allowances (other than expense allowances) paid to the Reservist for a week for his or her work during the example period.

example period has the meaning given by section 113.

pre‑CFTS overtime hours for an incapacitated Reservist means the average number of hours of overtime worked each week by the Reservist in his or her work during the example period.

pre‑CFTS overtime rate of pay for an incapacitated Reservist means the average hourly overtime rate of pay for the Reservist’s overtime in work during the example period.

pre‑CFTS rate of pay for an incapacitated Reservist means the Reservist’s average hourly ordinary time rate of pay for the Reservist’s work during the example period.

pre‑CFTS weekly hours for an incapacitated Reservist means the average number of hours worked in each week by the Reservist in his or her work during the example period.

work includes work as a member of the Defence Force (other than as a part‑time Reservist).

Note: A person might have been a Permanent Forces member before beginning his or her last period of continuous full‑time service. This work is taken into account in working out pre‑CFTS pay. However, work as a part‑time Reservist is taken into account in working out reserve pay.

113 Definition of example period for pre‑CFTS pay

(1) For the purposes of section 112, the example period for an incapacitated Reservist is the latest period of 2 weeks:

(a) during which the Reservist was continuously engaged in work (as defined in subsection 112(4)); and

(b) ending before the Reservist began his or her last period of continuous full‑time service.

(2) However, the Commission may determine as the example period:

(a) a different 2 week period that it considers reasonable; or

(b) a period of a different length that it considers reasonable;

if the pre‑CFTS pay for the example period under subsection (1) would not fairly represent the weekly rate at which the Reservist was being paid for his or her work before beginning the continuous full‑time service.

114 Working out reserve pay

Reserve pay for persons who were part‑time Reservists

(1) The reserve pay for a week for an incapacitated Reservist who was a part‑time Reservist before beginning his or her last period of continuous full‑time service is worked out using the following formula:

Note: The expressions used in this formula are defined in subsection (4).

(2) The Reservist’s service chief must advise the Commission in writing of the date on which each compensable pay‑related allowance would normally have ceased to be paid to the Reservist if the Reservist were not incapacitated for service.

Reserve pay for persons who were not part‑time Reservists

(3) The reserve pay for a week for an incapacitated Reservist who was not a part‑time Reservist before beginning his or her last period of continuous full‑time service is nil.

Definitions

(4) In this section:

amount of pay‑related allowances for an incapacitated Reservist for a day means the total amount of compensable pay‑related allowances that would have been paid to the Reservist for the day if the Reservist were not incapacitated for service.

Note: The Reservist’s pay‑related allowances might be adjusted under Part 5.

compensable pay‑related allowance for an incapacitated Reservist means a pay‑related allowance:

(a) that was being paid to the Reservist immediately before the Reservist began his or her last period of continuous full‑time service; or

(b) that would be paid to the Reservist because the Reservist is promoted, as mentioned in paragraph 186(2)(b).

example period for an incapacitated Reservist means:

(a) the latest period of one year:

(i) during which the Reservist was a part‑time Reservist; and

(ii) ending before the Reservist began his or her last period of continuous full‑time service; or

(b) such other period that the Commission determines is reasonable.

pay‑related allowance days for an incapacitated Reservist for a week means the average number of days (if any) served each week during the example period for which the Reservist was paid a pay‑related allowance.

rate of pay for an incapacitated Reservist for a day means the amount of pay that the Reservist would have been paid for the day as a part‑time Reservist if the Reservist were not incapacitated for service.

Note: The Reservist’s rate of pay might be adjusted under Part 5.

reserve days for an incapacitated Reservist for a week means the average number of days (if any) served each week during the example period for which the Reservist was paid as a part‑time Reservist.

114A Example periods for those injured as continuous full‑time Reservists

(1) For the purposes of the definition of example period in sections 113 and 114 for an incapacitated Reservist who was a continuous full‑time Reservist when the service injury was sustained, or the service disease was contracted, the Commission may determine, as the end of the example period, a time before the onset date for the Reservist’s incapacity for service or work (instead of a time before the Reservist began his or her last period of continuous full‑time service).

(2) If the Commission does so, a reference in sections 112, 113 and 114 to a time before the Reservist began his or her last period of continuous full‑time service is taken instead to be a reference to a time before the onset date for the Reservist’s incapacity.

Subdivision E—Working out actual earnings

115 Working out actual earnings

(1) The actual earnings for a week for an incapacitated Reservist means the amount worked out using the following formula:

(2) The Reservist’s actual ADF pay for a week means the amount of pay that the Reservist earns for the week as a part‑time Reservist.

(3) The Reservist’s actual pay‑related allowances for a week means the total amount of compensable pay‑related allowances (as defined in subsection 114(4)) that are paid to the Reservist for the week.

(4) The Reservist’s actual civilian earnings means the greater of the following amounts:

(a) the weekly amount (if any) that the Reservist is able to earn in suitable work;

(b) the amount the Reservist earns (including from allowances other than expense allowances) for the week from civilian work that he or she undertakes for the week.

Note: Section 181 sets out some matters the Commission must have regard to in determining how much the person is able to earn under paragraph (4)(a).

Division 6—Working out normal and actual earnings for cadets and declared members

116 Regulations may prescribe methods for working out normal and actual earnings for cadets and declared members

The regulations may prescribe one or more methods of working out the normal earnings and actual earnings for persons who are cadets or declared members.

Note: The regulations may also modify the application of this Part in respect of cadets and declared members (see section 439).

Part 4—Compensation for incapacity for work for former members

Division 1—Entitlement to compensation

117 Simplified outline of this Part

This Part provides for compensation to be provided for former members who are incapacitated for work as a result of a service injury or disease. The Commission must have accepted liability for the injury or disease, and a claim must have been made in respect of the former member, to be entitled to the compensation.

The amount of compensation a person receives for a week depends on the difference between the person’s normal and actual earnings for the week. The person’s normal earnings are a notional amount. The person’s actual earnings are based on how much the person actually earns for the week.

Normal earnings are worked out under Divisions 3 to 8.

Division 3 applies to a person who left the Defence Force as a Permanent Forces member. Division 4 applies to a person who left the Defence Force as a continuous full‑time Reservist.

Divisions 5 to 8 apply to a person who left the Defence Force as a part‑time Reservist. The Division that applies depends on the person’s status (for example, as a Permanent Forces member or a Reservist) when the service injury or disease occurred and on leaving the Defence Force.

Division 9 applies to a person who was a cadet or declared member.

Part 5 of this Chapter contains other important rules that apply in working out normal earnings, actual earnings and the amount of compensation generally.

118 Compensation for incapacitated former members

(1) The Commonwealth is liable to pay compensation to a person for a week if:

(a) the person is a former member; and

(b) the Commission has accepted liability for a service injury or disease of the person; and

(d) a claim for compensation in respect of the person has been made under section 319.

Note: This section might be affected by the following provisions:

(a) sections 50, 52 and 329 (failure to undergo examination or rehabilitation program);

(b) section 119 (aggravations etc.);

(d) section 122 (imprisonment of persons);

(e) section 138 (small amounts of compensation);

(f) section 196 (compensation for part weeks).

(2) The amount of compensation that the Commonwealth is liable to pay is:

(a) if a person has chosen to receive a Special Rate Disability Pension under Part 6—the amount worked out under Part 6; or

(b) otherwise—the amount worked out under Division 2 of this Part.

Note: The Commonwealth is not liable to pay compensation if the amount worked out under Division 2 is nil or a negative amount.

119 No compensation in certain cases relating to aggravations etc. of injuries or diseases

The Commonwealth is only liable, under section 118, to pay compensation in respect of an aggravated injury or disease if it is because of the aggravation or material contribution (whether wholly or partly) that the service injury or disease results in the person’s incapacity for work for the week.

120 Compensation for those over 65

Other than as provided in section 121, the Commonwealth is not liable to pay compensation to a person to whom section 118 applies if the person is 65 or older.

121 Compensation for those over 63

(1) This section applies to a person if:

(a) section 118 applies to the person; and

(b) the person’s service injury is sustained, or service disease is contracted, when the person is 63 or older.

(2) The Commonwealth is only liable, under section 118, to pay compensation to the person for a maximum of 104 weeks (whether consecutive or not) during which the person is incapacitated for work.

122 Persons who are imprisoned

The Commonwealth is not liable to pay compensation for a week to a person to whom section 118 applies if the person is imprisoned for the week in connection with his or her conviction of an offence.

Division 2—Amount of compensation (other than for those who have chosen to receive a Special Rate Disability Pension)

Subdivision A—Simplified outline of this Division

123 Simplified outline of this Division

This Division tells you how to work out the amount of compensation a former member receives for a week during which her or she is incapacitated for work (other than for a person who has chosen to receive a Special Rate Disability Pension).

Subdivision B—Amount of compensation generally

124 Simplified outline of this Subdivision

Different methods for working out the amount of compensation apply in different situations (such as where a person is also receiving Commonwealth superannuation). This Subdivision gives an overview of where these different methods are found in this Division.

The normal rule for working out the amount of compensation is found in Subdivision C.

Special rules apply in the following cases:

(a) retired persons who are receiving Commonwealth superannuation (see section 126);

(b) those maintained in hospitals etc. (see section 127);

(d) those who choose to receive a Special Rate Disability Pension (see Part 6).

125 Amount of compensation for former members

Amount of compensation generally

(1) Generally, the amount of compensation that the Commonwealth is liable, under section 118, to pay to a person for a week is worked out under Subdivision C.

Amount of compensation for others

(2) Subsection (1) does not apply if any of the following provisions apply instead:

(a) section 126 (retired persons receiving Commonwealth superannuation);

(b) section 127 (those maintained in hospitals etc.);

(d) Part 6 (those who choose to receive a Special Rate Disability Pension).

No compensation if amount worked out is nil or a negative amount

(3) If an amount of compensation worked out under this Division is nil or a negative amount, then the Commonwealth is not liable to pay the compensation for the week.

126 Amount of compensation for retired persons receiving Commonwealth superannuation

The amount of compensation that the Commonwealth is liable, under section 118, to pay for a week to a person who:

(a) has retired voluntarily, or is compulsorily retired, from his or her work; and

(b) receives either or both a pension or lump sum under a Commonwealth superannuation scheme as a result of the retirement;

is worked out in accordance with the following sections:

(d) if the person has received only a lump sum—section 135;

(e) if the person is receiving a pension and has received a lump sum—section 136.

127 Amount of compensation for former members who are maintained in hospital etc.

Application of section

(1) This section applies to a person (the patient) if:

(a) the patient has been continuously maintained in a hospital or other institution as a result of a service injury or disease for at least one year; and

(b) the patient is still being maintained as such a patient; and

(i) no dependants; and

(ii) no dependent young persons (see subsection (4)); and

(iii) no carer for a dependent young person (see subsection (4)); and

(d) subsection 125(1) would apply to the patient but for the operation of this section.

Amount of compensation

(2) The Commission must determine the amount of compensation that it considers reasonable that the Commonwealth is liable, under section 118, to pay to the patient for each week during which he or she is so maintained. However, the amount must be at least one‑half of, and not more than, the amount of compensation that would otherwise have been payable to the patient for a week if subsection 125(1) had applied.

Matters to be considered

(3) In determining the amount, the Commission must have regard to:

(a) the present and probable future needs and expenses of the patient; and

(b) the period during which the patient is likely to remain a patient in the hospital or the other institution.

The Commission must not have regard to any other matter.

Definitions

(4) In this section:

carer for a dependent young person means a person:

(a) who is wholly or mainly maintained by the patient; and

(b) who has the care of a dependent young person (other than a person who has that care only because the patient remunerates that person for caring for the young person).

dependent young person means an eligible young person who is dependent on the patient.

Subdivision C—Amount of compensation where no Commonwealth superannuation is received

128 Simplified outline of this Subdivision

This Subdivision tells you the normal rule for working out the amount of compensation for a former member.

The person is paid a full amount of compensation for at least the first 45 weeks of the incapacity. A reduced rate of compensation might be paid after that depending on how many hours a week the person is working.

129 Amount of compensation for maximum rate weeks

(1) If subsection 125(1) applies to a person, the amount of compensation that the Commonwealth is liable, under section 118, to pay to the person for a week that is a maximum rate week is worked out using the following formula:

Note: Section 132 defines normal earnings and actual earnings.

(2) In this Subdivision, a week is a maximum rate week for a person who is incapacitated for work if:

(a) it is a week during which:

(i) the person’s incapacity prevents the person from working his or her normal weekly hours; or

(ii) if the person is working his or her normal weekly hours, the person’s incapacity prevents the person from working at the level at which he or she worked before the incapacity; and

(b) the total number of hours in that week, and in all previous maximum rate weeks (if any), during which the incapacity has prevented the person from so working, does not exceed 45 times the person’s normal weekly hours.

Note: Section 132 defines normal weekly hours.

130 Amount of compensation for the week whose hours exceed 45 times the normal weekly hours

(1) If during, but before the end of, a particular week the total number of hours worked out in accordance with paragraph 129(2)(b) exceeds 45 times the normal weekly hours for a person, then:

(a) subsection (2) applies in respect of the hours that elapse before that number is exceeded (the maximum rate hours as defined in subsection (2)); and

(b) subsection (3) applies in respect of the remaining hours in the week (the reduced rate hours as defined in subsection (3)).

Note: Section 132 defines normal weekly hours.

Amount of compensation in respect of maximum rate hours

(2) The amount of compensation that the Commonwealth is liable, under section 118, to pay to a person in respect of the maximum rate hours is worked out using the following formula:

where:

maximum rate hours for a person means the total number of hours in the week:

(a) that would have counted towards the person’s normal weekly hours (whether those hours are worked or not); and

(b) that elapse before the total number of hours worked out in accordance with paragraph 129(2)(b) exceeds 45 times the person’s normal weekly hours.

Note: Section 132 defines normal weekly hours, normal earnings and actual earnings.

Amount of compensation in respect of reduced rate hours

(3) The amount of compensation that the Commonwealth is liable, under section 118, to pay to a person in respect of the reduced rate hours is worked out using the following formula:

where:

reduced compensation amount for a person means the amount of compensation worked out in accordance with section 131 if that section had applied for the whole week.

reduced rate hours for a person means the total number of hours worked out using the following formula:

Note: Section 132 defines normal weekly hours. Subsection (2) defines maximum rate hours.

131 Amount of compensation after 45 weeks

(1) If subsection 125(1) applies to a person, the amount of compensation that the Commonwealth is liable, under section 118, to pay to the person for a week (other than a week in respect of which section 129 or 130 applies) is worked out using the following formula:

(2) In this section:

adjustment percentage for a person for a week means the following percentage:

(a) if the person is not working during that week—75%;

(b) if the person is working for 25% or less of his or her normal weekly hours during that week—80%;

(c) if the person is working for more than 25% but not more than 50% of his or her normal weekly hours during that week—85%;

(d) if the person is working for more than 50% but not more than 75% of his or her normal weekly hours during that week—90%;

(e) if the person is working for more than 75% but less than 100% of his or her normal weekly hours during that week—95%;

(f) if the person is working for 100% or more of his or her normal weekly hours during that week—100%.

Note: Section 132 defines normal weekly hours, normal earnings and actual earnings.

132 Definitions of actual earnings, normal earnings and normal weekly hours

(1) In this Part:

actual earnings for a person for a week means the greater of the following amounts:

(a) the weekly amount (if any) that the person is able to earn in suitable work;

(b) the amount (if any) that the person earns for the week (including from allowances other than expense allowances) from any work that is undertaken by the person during the week.

Note 1: Bonuses are excluded from the calculation of actual earnings under section 180.

Note 2: Section 181 sets out some matters that the Commission must have regard to in determining the amount that the person is able to earn under paragraph (a).

(2) Use this table to work out the normal earnings and the normal weekly hours for a person:

Definitions of normal earnings and normal weekly hours
Item	For this type of person	normal earnings has the meaning given by...	normal weekly hours means...
1	A person who was a Permanent Forces member immediately before last ceasing to be a member	Division 3	37.5 hours
2	A person who was a continuous full‑time Reservist immediately before last ceasing to be a member	Division 4	(a) if the person has chosen pre‑CFTS earnings under section 143—the number of hours worked out under section 150; or (b) otherwise—37.5 hours
3	A person who is or was a part‑time Reservist to whom section 152 applies	Division 5	the number of hours worked out under section 158
4	A person who is or was a part‑time Reservist to whom section 160 applies	Division 6	37.5 hours
5	A person who is or was a part‑time Reservist to whom section 163 applies	Division 7	37.5 hours
6	A person who is or was a part‑time Reservist to whom section 166 applies	Division 8	(a) if the person has chosen pre‑CFTS earnings under section 167—the number of hours worked out under section 174; or (b) otherwise—37.5 hours
7	A former cadet or declared member	the regulations (see Division 9)	the number of hours worked out under the regulations (see Division 9)

Note 1: If a person’s normal earnings are less than the federal minimum wage, then the person’s normal earnings are instead the federal minimum wage (see section 179).

Note 2: Certain amounts (such as bonuses) are excluded from the calculation of normal earnings under section 180.

Subdivision D—Amount of compensation where Commonwealth superannuation is received

133 Simplified outline of this Subdivision

This Subdivision tells you how to work out the amount of compensation a person receives for a week if the person receives or has received Commonwealth superannuation.

The method of working out the amount of compensation depends on whether the person:

(a) is receiving only a Commonwealth superannuation pension (see section 134); or

(b) has received only a Commonwealth superannuation lump sum (see section 135); or

Basically, the amount of compensation paid is the amount worked out under Subdivision C reduced by the amount of superannuation received.

134 Amount of compensation for retired person receiving only Commonwealth superannuation pension

(1) If paragraph 126(c) applies to a person, the amount of compensation that the Commonwealth is liable, under section 118, to pay to the person for a week is worked out using the following formula:

(2) In this Subdivision:

Subdivision C compensation amount for a person for a week means the amount of compensation the person would have been paid for the week if Subdivision C had applied.

superannuation pension amount for a person who receives a pension for a week under a Commonwealth superannuation scheme means:

(a) if the scheme identifies a part of the pension as attributable to the contributions made under the scheme by the Commonwealth, a Commonwealth authority or a licensed corporation—the amount of that part; or

(b) in any other case, either:

(i) the amount assessed by the Commission to be the part of the pension that is attributable to the contribution made under the scheme by the Commonwealth, a Commonwealth authority or a licensed corporation; or

(ii) if such an assessment cannot be made—the amount of the pension received by the person for the week.

135 Amount of compensation for retired person who has received only Commonwealth superannuation lump sum

(1) If paragraph 126(d) applies to a person, the amount of compensation that the Commonwealth is liable, under section 118, to pay to the person for a week is worked out using the following formula:

(2) In this Subdivision:

superannuation age‑based number for a person who receives a lump sum under a Commonwealth superannuation scheme means the number that is advised by the Australian Government Actuary by reference to the person’s age on the day on which the lump sum is paid.

superannuation lump sum amount for a person who receives a lump sum under a Commonwealth superannuation scheme means:

(a) if the scheme identifies a part of the lump sum as attributable to the contributions made under the scheme by the Commonwealth, a Commonwealth authority or a licensed corporation—the amount of that part; or

(b) in any other case, either:

(i) the amount assessed by the Commission to be the part of the lump sum that is attributable to the contribution made under the scheme by the Commonwealth, a Commonwealth authority or a licensed corporation; or

(ii) if such an assessment cannot be made—the amount of the lump sum.

Note: Subsection 134(2) defines Subdivision C compensation amount.

136 Amount of compensation for retired person receiving both superannuation pension and lump sum

If paragraph 126(e) applies to a person, the amount of compensation that the Commonwealth is liable, under section 118, to pay to the person for a week is worked out using the following formula:

Note: Subsection 134(2) defines Subdivision C compensation amount and superannuation pension amount. Subsection 135(2) defines superannuation age‑based number and superannuation lump sum amount.

Subdivision E—Small amounts of compensation

137 Simplified outline of this Subdivision

Under this Subdivision, a person who receives weekly compensation of $150 or less is entitled to convert that amount into a lump sum if the person is still working or is receiving or has received Commonwealth superannuation.

If the person later stops working because the person’s condition deteriorates, or the person stops receiving the superannuation, then the person can be paid compensation on a weekly basis again.

138 Converting small amounts of weekly compensation into lump sum compensation

(1) This section applies if:

(a) apart from this section, the Commonwealth would be liable to pay an amount of compensation, worked out in accordance with subsection 125(1) or section 126, of $150 or less for a person’s incapacity for work for a week; and

(b) the person:

(i) is engaged in work; or

(ii) is receiving a pension under a Commonwealth superannuation scheme; or

(iii) has received a lump sum under a Commonwealth superannuation scheme; and

(d) the person advises the Commission in writing that he or she chooses to receive a lump sum under this Division rather than weekly payments.

Note 1: The Commonwealth might later be liable for weekly compensation if the person becomes unable to engage in work or stops receiving superannuation (see section 139).

Note 2: The amount of $150 is indexed under section 404.

(2) Instead of being liable to pay compensation for that week and future weeks, the amount of compensation that the Commonwealth is liable to pay is the amount of the lump sum worked out using the following formula:

Note: This section might be affected by the following provisions:

(a) sections 50, 52 and 329 (failure to undergo examination or rehabilitation program);

(b) section 122 (persons who are imprisoned);

(3) In this section:

n means the number worked out using the formula:

where:

number of days means the number of days in the period beginning on the day after the day on which the person advises the Commission of his or her choice under paragraph (1)(d) and ending:

(a) if the person’s service injury is sustained, or service disease is contracted, before the person turns 63—on the day before the person turns 65; and

(b) if the person’s service injury is sustained, or service disease is contracted, on or after the day on which the person turns 63—on the day before the person is no longer entitled to compensation under this Part.

specified number means the number specified in writing (in decimal notation) by the Commission for the purposes of this definition.

weekly amount means the amount payable to the person under section 118 for the week in which the person advises the Commission of his or her choice under paragraph (1)(d).

139 Weekly compensation following conversion of weekly amounts to a lump sum

(1) This section applies if:

(a) the Commonwealth has paid a lump sum to a person under section 138 in respect of the person’s incapacity for work; and

(b) either:

(i) subparagraph 138(1)(b)(i) applied and the person’s condition later deteriorates to the extent that the person is no longer able to engage in work; or

(ii) subparagraph 138(1)(b)(ii) applied and the person stops receiving the pension under the Commonwealth superannuation scheme; and

(2) The Commonwealth is liable to pay compensation under section 118 for each week during which the person continues to be incapacitated for work.

Note: This section might be affected by the following provisions:

(a) sections 50, 52 and 329 (failure to undergo examination or rehabilitation program);

(b) sections 120 and 121 (persons who are 63 or more);

(d) section 196 (compensation for part weeks).

(3) The amount of compensation that the Commonwealth is liable to pay for a week is worked out using the following formula:

Note: The Commonwealth is not liable to pay compensation if the amount worked out is nil or a negative amount (see subsection 125(3)).

(4) In subsection (3):

Subdivision C or D compensation amount for a person for a week means the amount of compensation the person would have been paid for the week if Subdivision C or D had applied.

weekly amount has the same meaning as in subsection 138(3).

Division 3—Working out normal earnings for certain former Permanent Forces members

140 Simplified outline of this Division

This Division tells you how to work out the normal earnings for a person who left the Defence Force as a Permanent Forces member.

The normal earnings are based on how much the person would have earned for the week if the person were still a Permanent Forces member.

Normal earnings worked out under this Division might be adjusted under Part 5.

141 Working out normal earnings

(1) The normal earnings for a week for a person who was a Permanent Forces member immediately before last ceasing to be a member of the Defence Force means the amount worked out using the following formula:

Note: The amount of $100 is indexed under section 183.

(2) The person’s ADF pay for a week means the amount of pay that the person would have earned for the week as a Permanent Forces member if:

(a) the person were still a Permanent Forces member; and

(b) the person were not incapacitated for service.

Note: The person’s ADF pay for a week might be adjusted under Part 5.

(3) The person’s allowance component for a week means the total amount of compensable pay‑related allowances that would have been paid to the person for the week if:

(a) the person were still a Permanent Forces member; and

(b) the person were not incapacitated for service.

Note: The person’s allowance component for a week might be adjusted under Part 5.

(4) The person’s service chief must advise the Commission in writing of the date on which each compensable pay‑related allowance would normally have ceased to be paid to the person if:

(a) the person were still a Permanent Forces member; and

(b) the person were not incapacitated for service.

(5) In this section:

compensable pay‑related allowance for a person means a pay‑related allowance:

(a) that was being paid to the person immediately before the person last ceased to be a member of the Defence Force; or

(b) that the person would have been paid after completing his or her initial training, as mentioned in section 189.

Division 4—Working out normal earnings and normal weekly hours for certain former continuous full‑time Reservists

Subdivision A—Simplified outline of this Division

142 Simplified outline of this Division

This Division tells you how to work out the normal earnings for a person who left the Defence Force as a continuous full‑time Reservist.

The person has a one‑off choice between 2 ways of working out normal earnings. Normal earnings can be based on the amount the person would have earned if the person were still a continuous full‑time Reservist. (This amount is called the ADF earnings.) Alternatively, normal earnings can be based on the person’s earnings from other work engaged in before beginning his or her last period of continuous full‑time service. (This amount is called the pre‑CFTS earnings.)

Normal earnings worked out under this Division might be adjusted under Part 5.

Subdivision E tells you how to work out the normal weekly hours for a person who chooses the pre‑CFTS earnings. (Normal weekly hours for a person who chooses the ADF earnings are 37.5 hours (see subsection 132(2).)

Subdivision B—Working out normal earnings

143 Working out normal earnings

(1) The normal earnings for a week for a person who was a continuous full‑time Reservist immediately before last ceasing to be a member of the Defence Force means whichever of the following amounts is chosen by the person:

(a) the amount of the person’s ADF earnings for a week (see Subdivision C);

(b) the amount of the person’s pre‑CFTS earnings for a week (see Subdivision D).

(2) The person must inform the Commission in writing of his or her choice between the ADF earnings and the pre‑CFTS earnings.

(3) The person is only entitled to make one choice for all weeks in respect of which subsection (1) applies. The person cannot change his or her choice once it has been made.

Subdivision C—Working out ADF earnings

144 Working out ADF earnings

(1) The ADF earnings for a week for a person who was a continuous full‑time Reservist immediately before last ceasing to be a member of the Defence Force means the amount worked out using the following formula:

Note: The amount of $100 is indexed under section 183.

(2) The person’s ADF pay for a week means the amount of pay that the person would have earned for the week as a continuous full‑time Reservist if:

(a) the person were still a continuous full‑time Reservist; and

(b) the person were not incapacitated for service.

Note: The person’s ADF pay for a week might be adjusted under Part 5.

(3) The person’s allowance component for a week means the total amount of compensable pay‑related allowances that would have been paid to the person for the week if:

(a) the person were still a continuous full‑time Reservist; and

(b) the person were not incapacitated for service.

Note: The person’s allowance component for a week might be adjusted under Part 5.

(4) The person’s service chief must advise the Commission in writing of the date on which each compensable pay‑related allowance would normally have ceased to be paid to the person if:

(a) the person were still a continuous full‑time Reservist; and

(b) the person were not incapacitated for service.

(5) In this section:

compensable pay‑related allowance for a person means a pay‑related allowance:

(a) that was being paid to the person immediately before the person last ceased to be a member of the Defence Force; or

(b) that the person would have been paid after completing his or her initial training, as mentioned in section 189.

Subdivision D—Working out pre‑CFTS earnings

145 Simplified outline of this Subdivision

The pre‑CFTS earnings are worked out by looking back at the period before the person began his or her last period of continuous full‑time service. During this period, the person might have been a part‑time Reservist as well as being engaged in work.

The person’s pre‑CFTS earnings has 2 components: pre‑CFTS pay and reserve pay.

The person’s pre‑CFTS pay is based on earnings from work the person was engaged in before beginning the last period of continuous full‑time service. The work engaged in might be civilian work or defence work (as some people become continuous full‑time Reservists after being Permanent Forces members).

The person’s reserve pay is based on earnings from service as a part‑time Reservist.

146 Working out pre‑CFTS earnings

(1) The pre‑CFTS earnings for a week for a person who was a continuous full‑time Reservist immediately before last ceasing to be a member of the Defence Force means the amount worked out using the following formula:

(2) In this section:

pre‑CFTS pay for a person for a week means the amount worked out under section 147.

reserve pay for a person for a week means the amount worked under section 149.

147 Working out pre‑CFTS pay

Pre‑CFTS pay for those engaged in work before beginning last period of full‑time service

(1) The following formula sets out how to work out the pre‑CFTS pay for a week for a person who was engaged in work before beginning his or her last period of continuous full‑time service:

Note 1: The expressions used in this formula are defined in subsection (4).

Note 2: The person’s pre‑CFTS pay might be adjusted under Part 5.

(2) If the person was required to work overtime on a regular basis in that work, the pre‑CFTS pay for a week also includes the amount worked out using the following formula:

Note: The expressions used in this formula are defined in subsection (4).

Pre‑CFTS pay for those not working

(3) The pre‑CFTS pay for a week for a person who was not engaged in work before beginning his or her last period of continuous full‑time service is nil.

Definitions

(4) In this section:

allowances for a person for a week is the average amount of allowances (other than expense allowances) paid to the person for a week for his or her work during the example period.

example period has the meaning given by section 148.

pre‑CFTS overtime hours for a person means the average number of hours of overtime worked each week by the person in his or her work during the example period.

pre‑CFTS overtime rate of pay for a person means the average hourly overtime rate of pay for the person’s overtime in his or her work during the example period.

pre‑CFTS rate of pay for a person means the person’s average hourly ordinary time rate of pay for the person’s work during the example period.

pre‑CFTS weekly hours for a person means the average number of hours worked in each week by the person in his or her work during the example period.

work includes work as a member of the Defence Force (other than as a part‑time Reservist).

Note: A person might have been a Permanent Forces member before beginning his or her last period of continuous full‑time service. This work is taken into account in the pre‑CFTS pay. However, work as a part‑time Reservist is taken into account in working out the reserve pay.

148 Definition of example period for former continuous full‑time Reservists

(1) For the purposes of section 147, the example period for a person who was a continuous full‑time Reservist immediately before last ceasing to be a member of the Defence Force is the latest period of 2 weeks:

(a) during which the person was continuously engaged in work (as defined in subsection 147(4)); and

(b) ending before the person began his or her last period of continuous full‑time service.

(2) However, the Commission may determine as the example period:

(a) a different 2 week period that it considers reasonable; or

(b) a period of a different length that it considers reasonable;

if the pre‑CFTS pay for the example period under subsection (1) would not fairly represent the weekly rate at which the person was being paid for his or her work before beginning the continuous full‑time service.

149 Working out reserve pay

Reserve pay for persons who were part‑time Reservists

(1) The reserve pay for a week for a person who was a part‑time Reservist immediately before beginning his or her last period of continuous full‑time service is the amount worked out using the following formula:

Note: The expressions used in this subsection are defined in subsection (4).

(2) The person’s service chief must advise the Commission in writing of the date on which each compensable pay‑related allowance would normally have ceased to be paid to the person if:

(a) the person were still a part‑time Reservist; and

(b) the Reservist were not incapacitated for service.

Reserve pay for persons who were not part‑time Reservists

(3) The reserve pay for a week for a person who was not a part‑time Reservist immediately before beginning his or her last period of continuous full‑time service is nil.

Definitions

(4) In this section:

amount of pay‑related allowances for a person for a day means the total amount of compensable pay‑related allowances that would have been paid to the person for the day if:

(a) the person were still a part‑time Reservist; and

(b) the person were not incapacitated for service.

Note: The person’s pay‑related allowances might be adjusted under Part 5.

compensable pay‑related allowance for a person means a pay‑related allowance:

(a) that was being paid to the person immediately before the person began his or her last period of continuous full‑time service; or

(b) that would be paid to the person because the person is promoted, as mentioned in section 186.

example period for a person who was a part‑time Reservist immediately before beginning his or her last period of continuous full‑time service is:

(a) the latest period of one year:

(i) during which the person was a part‑time Reservist; and

(ii) ending before the person began that continuous full‑time service; or

(b) such other period that the Commission determines is reasonable.

pay‑related allowance days for a person for a week means the average number of days (if any) served each week during the example period for which the person was paid an amount of pay‑related allowances.

rate of pay for a person for a day means the amount of pay that the person would have been paid for the day as a part‑time Reservist if:

(a) the person were still a part‑time Reservist; and

(b) the person were not incapacitated for service.

Note: The person’s rate of pay might be adjusted under Part 5.

reserve days for a person for a week means the average number of days (if any) served each week during the example period for which the person was paid as a part‑time Reservist.

Subdivision E—Working out normal weekly hours for persons who have chosen pre‑CFTS earnings

150 Working out normal weekly hours for persons who have chosen pre‑CFTS earnings

(1) The normal weekly hours for a person who has chosen the pre‑CFTS earnings under section 143 are worked out using the following formula:

(2) In this section:

ADF hours for a person means the average number of hours per week (if any) during the example period (as defined in subsection 149(4)) for which the person was paid as a part‑time Reservist.

pre‑CFTS overtime hours has the meaning given by subsection 147(4).

pre‑CFTS weekly hours has the meaning given by subsection 147(4).

Division 5—Working out normal earnings and normal weekly hours for former part‑time Reservists who were engaged in civilian work

Subdivision A—Simplified outline of this Division

151 Simplified outline of this Division

This Division tells you how to work out the normal earnings for a person who:

(a) was a part‑time Reservist when the service injury or disease occurred; and

(b) was still a part‑time Reservist when he or she left the Defence Force; and

The person’s normal earnings are made up of an ADF component and a civilian component. The ADF component is based on how much the person would have earned as a part‑time Reservist if the person were still a part‑time Reservist. The civilian component is based on how much the person earned from civilian work during an example period taken before the person left the Defence Force.

Normal earnings worked out under this Division might be adjusted under Part 5.

Subdivision E tells you how to work out the normal weekly hours for the person.

Subdivision B—Working out normal earnings of former part‑time Reservists who were engaged in civilian work

152 Application of this Division to former part‑time Reservists who were engaged in civilian work

This Division applies to a person in respect of a week if:

(a) the person was a part‑time Reservist immediately before last ceasing to be a member of the Defence Force; and

(b) the person is incapacitated for work for the week as a result of a service injury or disease; and

(c) the person was also a part‑time Reservist when the service injury was sustained or the service disease was contracted; and

(d) the person was engaged in civilian work before last ceasing to be a member of the Defence Force.

The person is called an incapacitated person in this Division.

153 Working out normal earnings

(1) The normal earnings for an incapacitated person for a week is the amount worked out using the following formula:

(2) In this section:

ADF component for an incapacitated person for a week means the amount worked out under Subdivision C.

civilian component for an incapacitated person for a week means the amount worked out under Subdivision D.

Subdivision C—Working out the ADF component of normal earnings

154 Working out the ADF component of normal earnings

(1) The ADF component for a week for an incapacitated person is the amount worked out using the following formula:

Note: The expressions used in this subsection are defined in subsection (3).

(2) The person’s service chief must advise the Commission in writing of the date on which each compensable pay‑related allowance would normally have ceased to be paid to the person if:

(a) the person were still a part‑time Reservist; and

(b) the person were not incapacitated for service.

(3) In this section:

amount of pay‑related allowances for an incapacitated person for a day means the total amount of compensable pay‑related allowances that would have been paid to the person for the day as a part‑time Reservist if:

(a) the person were still a part‑time Reservist; and

(b) the person were not incapacitated for service.

Note: The person’s pay‑related allowances might be adjusted under Part 5.

compensable pay‑related allowance for an incapacitated person means a pay‑related allowance that was being paid to the person immediately before the person last ceased to be a member of the Defence Force.

example period has the meaning given by section 155.

pay‑related allowance days for an incapacitated person for a week means the average number of days (if any) served each week during the example period for which the person was paid an amount of pay‑related allowances.

rate of pay for an incapacitated person for a day means the amount of pay that the person would have been paid for the day as a part‑time Reservist if:

(a) the person were still a part‑time Reservist; and

(b) the person were not incapacitated for service.

Note: The person’s rate of pay might be adjusted under Part 5.

reserve days for an incapacitated person for a week means the average number of days (if any) served each week during the example period for which the person was paid as a part‑time Reservist.

155 Definition of example period for ADF component of normal earnings

For the purposes of section 154 and the definitions of defence days and defence hours in section 158, the example period for an incapacitated person is:

(a) the latest period of one year:

(i) during which the person was a part‑time Reservist; and

(ii) ending before the person last ceased to be a member of the Defence Force; or

(b) such other period that the Commission determines is reasonable.

Subdivision D—Working out the civilian component of normal earnings

156 Working out the civilian component of normal earnings

(1) The civilian component for a week for an incapacitated person is the amount worked out using the following formula:

(2) The following formula sets out how to work out the civilian daily earnings for an incapacitated person:

Note 1: The expressions used in this formula are defined in subsection (4).

Note 2: The person’s civilian daily earnings might be adjusted under Part 5.

(3) If the incapacitated person was required to work overtime on a regular basis in his or her work, the civilian daily earnings also include the amount worked out using the following formula:

Note: The expressions used in this formula are defined in subsection (4).

(4) In this section:

allowances for an incapacitated person for a day means the average amount of allowances (other than expense allowances) paid to the person for a day for his or her civilian work during the example period.

civilian daily hours for an incapacitated person means the average number of hours worked each day by the person in his or her civilian work during the example period.

civilian overtime hours for an incapacitated person means the average number of hours of overtime worked each day by the person in his or her civilian work during the example period.

civilian overtime rate of pay for an incapacitated person means the person’s average hourly overtime rate of pay for the person’s overtime in his or her civilian work during the example period.

civilian rate of pay for an incapacitated person means the average hourly ordinary time rate of pay for the person’s civilian work during the example period.

example period has the meaning given by section 157.

157 Definition of example period for the civilian component of normal earnings

(1) For the purposes of this section 156 and the definition of civilian days in section 158, the example period for an incapacitated person is the latest period of 2 weeks:

(a) during which the person was continuously engaged in civilian work; and

(b) ending before the person last ceased to be a member of the Defence Force.

(2) However, the Commission may determine as the example period:

(a) a different 2 week period that it considers reasonable; or

(b) a period of a different length that it considers reasonable;

if the civilian daily earnings for the example period under subsection (1) would not fairly represent the daily rate at which the person was being paid for his or her civilian work before last ceasing to be a member of the Defence Force.

Subdivision E—Working out normal weekly hours

158 Working out normal weekly hours

(1) The normal weekly hours for an incapacitated person means the amount worked out using the following formula:

(2) In this section:

civilian daily hours has the meaning given by subsection 156(4).

civilian days for an incapacitated person means the average number of days (if any) per week during the example period for which the person was paid civilian daily earnings.

civilian overtime hours has the meaning given by subsection 156(4).

defence days for an incapacitated person means the average number of days (if any) per week during the example period for which the person was paid as a part‑time Reservist.

defence hours for an incapacitated person means the average number of hours per day during the example period for which the person was paid as a part‑time Reservist.

example period:

(a) for the purposes of the definition of defence days and defence hours—has the meaning given by section 155; and

(b) for the purposes of the definition of civilian days—has the meaning given by section 157.

Division 6—Working out normal earnings for former part‑time Reservists who were not engaged in civilian work

159 Simplified outline of this Division

This Division tells you how to work out the normal earnings for a person who:

(a) was a part‑time Reservist when the service injury or disease occurred; and

(b) was still a part‑time Reservist when he or she left the Defence Force; and

Basically, the person’s normal earnings are 7 times the daily rate that the person would be paid if the person were still a part‑time Reservist.

Normal earnings worked out under this Division might be adjusted under Part 5.

160 Application of this Division to former part‑time Reservists who were not engaged in civilian work

This Division applies to a person in respect of a week if:

(a) the person was a part‑time Reservist immediately before last ceasing to be a member of the Defence Force; and

(b) the person is incapacitated for work for the week as a result of a service injury or disease; and

(c) the person was a part‑time Reservist when the service injury was sustained or the service disease was contracted; and

(d) the person was not engaged in civilian work before last ceasing to be a member of the Defence Force.

The person is called an incapacitated person in this Division.

161 Working out normal earnings

(1) The normal earnings for an incapacitated person for a week means the amount worked out using the following formula:

Note: The expressions used in this formula are defined in subsection (3).

(2) The person’s service chief must advise the Commission in writing of the date on which each compensable pay‑related allowance would normally have ceased to be paid to the person if:

(a) the person were still a part‑time Reservist; and

(b) the person were not incapacitated for service.

(3) In this section:

(a) the person were still a part‑time Reservist; and

(b) the person were not incapacitated for service.

Note: The person’s pay‑related allowances might be adjusted under Part 5.

compensable pay‑related allowance for an incapacitated person means a pay‑related allowance that was being paid to the person immediately before last ceasing to be a member of the Defence Force.

example period for an incapacitated person is:

(a) the latest period of one year:

(i) during which the person was a part‑time Reservist; and

(ii) ending before the person ceased to be a member of the Defence Force; or

(b) such other period that the Commission determines is reasonable.

pay‑related allowance days for an incapacitated person for a week means the average number of days per week (if any) served each week during the example period for which the person was paid an amount of pay‑related allowances.

rate of pay for an incapacitated person for a day means the rate of pay that the person would have been paid for the day as a part‑time Reservist if:

(a) the person were still a part‑time Reservist; and

(b) the person were not incapacitated for service.

Note: The person’s rate of pay might be adjusted under Part 5.

Division 7—Working out normal earnings for former part‑time Reservists who were previously Permanent Forces members

162 Simplified outline of this Division

This Division tells you how to work out the normal earnings for a person:

(a) who was a Permanent Forces member or a continuous full‑time Reservist when the service injury or disease occurred; and

(b) who was a part‑time Reservist when he or she left the Defence Force; and

The normal earnings are based on how much the person would have earned if the person were still a Permanent Forces member.

Normal earnings worked out under this Division might be adjusted under Part 5.

163 Application of this Division to former part‑time Reservists who were previously Permanent Forces members

This Division applies to a person in respect of a week if:

(a) the person was a part‑time Reservist immediately before last ceasing to be a member of the Defence Force; and

(b) the person is incapacitated for work for the week as a result of a service injury or disease; and

(c) the person was a Permanent Forces member, or a continuous full‑time Reservist, when the service injury was sustained or the service disease was contracted; and

(d) the person was a Permanent Forces member immediately before completing his or her last period of full‑time service.

The person is called an incapacitated person in this Division.

164 Working out normal earnings

(1) The normal earnings for a week for an incapacitated person means the amount worked out using the following formula:

Note: The amount of $100 is indexed under section 183.

(2) The person’s full‑time ADF pay for a week means the amount of pay that the person would have earned for the week as a Permanent Forces member if:

(a) the person were still a Permanent Forces member; and

(b) the person were not incapacitated for service.

Note: The person’s full‑time ADF pay might be adjusted under Part 5.

(3) The person’s allowance component for a week means the total amount of compensable pay‑related allowances that would have been paid to the person for the week if:

(a) the person were still a Permanent Forces member; and

(b) the person were not incapacitated for service.

Note: The person’s allowance component might be adjusted under Part 5.

(4) The person’s service chief must advise the Commission in writing of the date on which each compensable pay‑related allowance would normally have ceased to be paid to the person if:

(a) the person were still a Permanent Forces member; and

(b) the person were not incapacitated for service.

(5) In this section:

compensable pay‑related allowance for an incapacitated person means a pay‑related allowance:

(a) that was being paid to the person immediately before completing his or her last period of full‑time service; or

(b) that the person would have been paid after completing his or her initial training, as mentioned in section 189.

Division 8—Working out normal earnings and normal weekly hours for former part‑time Reservists who were previously continuous full‑time Reservists

Subdivision A—Simplified outline of this Division

165 Simplified outline of this Division

This Division tells you how to work out the normal earnings for a person:

(a) who was a Permanent Forces member or a continuous full‑time Reservist when the service injury or disease occurred; and

(b) who was a part‑time Reservist when he or she left the Defence Force; and

The person has a one‑off choice between 2 ways of working out normal earnings. Normal earnings can be based on the amount the person would have earned if the person were still a continuous full‑time Reservist. (This amount is called the full‑time ADF earnings.) Alternatively, normal earnings can be based on the person’s earnings from other work engaged in before beginning his or her last period of continuous full‑time service. (This amount is called the pre‑CFTS earnings.)

Normal earnings worked out under this Division might be adjusted under Part 5.

Subdivision D tells you how to work out the normal weekly hours for a person who chooses the pre‑CFTS earnings. (Normal weekly hours for a person who chooses the ADF earnings are 37.5 hours (see subsection 132(2).)

Subdivision B—Working out normal earnings for former part‑time Reservists who were previously continuous full‑time Reservists

166 Application of this Division to former part‑time Reservists who were previously continuous full‑time Reservists

This Division applies to a person in respect of a week if:

(a) the person was a part‑time Reservist immediately before last ceasing to be a member of the Defence Force; and

(b) the person is incapacitated for work for the week as a result of a service injury or disease; and

(c) the person was a Permanent Forces member, or a continuous full‑time Reservist, when the service injury was sustained or the service disease was contracted; and

(d) the person was a continuous full‑time Reservist immediately before completing his or her last period of full‑time service.

The person is called an incapacitated person in this Division.

167 Working out normal earnings

(1) The normal earnings for an incapacitated person for a week means whichever of the following amounts is chosen by the person:

(a) the amount of the person’s full‑time ADF earnings for a week (see Subdivision C);

(b) the amount of the person’s pre‑CFTS earnings for a week (see Subdivision D).

(2) The person must inform the Commission in writing of his or her choice between the full‑time ADF earnings and the pre‑CFTS earnings.

(3) The person is only entitled to make one choice for all weeks in respect of which subsection (1) applies. The person cannot change his or her choice once it has been made.

Subdivision C—Working out full‑time ADF earnings

168 Working out full‑time ADF earnings

(1) The full‑time ADF earnings for a week for an incapacitated person means the amount worked out using the following formula:

Note: The amount of $100 is indexed under section 183.

(2) The person’s full‑time ADF pay for a week means the amount of pay that the person would have earned for the week as a continuous full‑time Reservist if:

(a) the person were still a continuous full‑time Reservist; and

(b) the person were not incapacitated for service.

Note: The person’s full‑time ADF pay might be adjusted under Part 5.

(3) The person’s allowance component for a week means the total amount of compensable pay‑related allowances that would have been paid to the person for the week if:

(a) the person were still a continuous full‑time Reservist; and

(b) the person were not incapacitated for service.

Note: The person’s allowance component might be adjusted under Part 5.

(4) The person’s service chief must advise the Commission in writing of the date on which each compensable pay‑related allowance would normally have ceased to be paid to the person if:

(a) the person were still a continuous full‑time Reservist; and

(b) the person were not incapacitated for service.

(5) In this section:

compensable pay‑related allowance for an incapacitated person means a pay‑related allowance:

(a) that was being paid to the person immediately before completing his or her last period of full‑time service; or

(b) that the person would have been paid after completing his or her initial training, as mentioned in section 189.

Subdivision D—Working out pre‑CFTS earnings

169 Simplified outline of this Subdivision

The person’s pre‑CFTS earnings have 2 components: pre‑CFTS pay and reserve pay.

The person’s reserve pay is based on earnings from service as a part‑time Reservist.

However, for a person whose service injury or disease occurred while a continuous full‑time Reservist, the Commission may determine pre‑CFTS earnings by looking back at the period before the person last ceased to be a member of the Defence Force instead of the period before the person began his or her last period of continuous full‑time service.

170 Working out pre‑CFTS earnings

(1) The pre‑CFTS earnings for a week for an incapacitated person means the amount worked out using the following formula:

(2) In this section:

pre‑CFTS pay for an incapacitated person for a week means the amount worked out under section 171.

reserve pay for an incapacitated person for a week means the amount worked out under section 173.

171 Working out pre‑CFTS pay

Pre‑CFTS pay for those engaged in work before beginning last period of full‑time service

(1) The following formula sets out how to work out the pre‑CFTS pay for a week for an incapacitated person who was engaged in work before beginning his or her last period of continuous full‑time service:

Note 1: The expressions used in this formula are defined in subsection (4).

Note 2: The person’s pre‑CFTS pay might be adjusted under Part 5.

(2) If the incapacitated person was required to work overtime on a regular basis in that work, the pre‑CFTS pay for the week also includes the amount worked out using the following formula:

Note: The expressions used in this formula are defined in subsection (4).

Pre‑CFTS pay for those not working

(3) The pre‑CFTS pay for a week for an incapacitated person who was not engaged in work before beginning his or her last period of continuous full‑time service is nil.

Definitions

(4) In this section:

allowances for an incapacitated person for a week is the average amount of allowances (other than expense allowances) paid to the person for a week for his or her work during the example period.

example period has the meaning given by section 172.

pre‑CFTS overtime hours for an incapacitated person means the average number of hours of overtime worked each week by the person in his or her work during the example period.

pre‑CFTS overtime rate of pay for an incapacitated person means the average hourly overtime rate of pay for the person’s overtime in his or her work during the example period.

pre‑CFTS rate of pay for an incapacitated person means the average hourly ordinary time rate of pay for the person’s work during the example period.

pre‑CFTS weekly hours for an incapacitated person means the average number of hours worked in each week by the person in his or her work during the example period.

work includes work as a member of the Defence Force (other than as a part‑time Reservist).

172 Definition of example period for the pre‑CFTS pay

(1) For the purposes of this section 171, the example period for an incapacitated person is the latest period of 2 weeks:

(a) during which the person was continuously engaged in work (as defined in subsection 171(4)); and

(b) ending before the person began his or her last period of continuous full‑time service.

(2) However, the Commission may determine as the example period:

(a) a different 2 week period that it considers reasonable; or

(b) a period of a different length that it considers reasonable;

173 Working out reserve pay

Reserve pay for persons who were part‑time Reservists

(1) The reserve pay for a week for an incapacitated person who was a part‑time Reservist immediately before beginning his or her last period of continuous full‑time service is the amount worked out using the following formula:

Note: The expressions used in this formula are defined in subsection (4).

(2) The person’s service chief must advise the Commission in writing of the date on which each compensable pay‑related allowance would normally have ceased to be paid to the person if:

(a) the person were still a part‑time Reservist; and

(b) the person were not incapacitated for service.

Reserve pay for persons who did not serve as part‑time Reservists

(3) The reserve pay for a week for an incapacitated Reservist who was not serving as a part‑time Reservist immediately before beginning his or her last period of continuous full‑time service is nil.

Definitions

(4) In this section:

amount of pay‑related allowances for an incapacitated person for a day means the total amount of compensable pay‑related allowances that would have been paid to the person for the day if:

(a) the person were still a part‑time Reservist; and

(b) the person were not incapacitated for service.

Note: The person’s pay‑related allowance might be adjusted under Part 5.

compensable pay‑related allowance for an incapacitated person means a pay‑related allowance that was being paid to the person immediately before beginning his or her last period of continuous full‑time service.

example period for an incapacitated person is:

(a) the latest period of one year:

(i) during which the person was a part‑time Reservist; and

(ii) ending before the person began his or her last period of continuous full‑time service; or

(b) such other period that the Commission determines is reasonable.

rate of pay for a person for a day means the amount of pay that the person would have been paid for the day as a member of the Reserves if:

(a) the person were still a part‑time Reservist; and

(b) the person were not incapacitated for service.

Note: The person’s rate of pay might be adjusted under Part 5.

reserve days for an incapacitated person for a week means the average number of days (if any) served each week during the example period for which the person was paid as a part‑time Reservist.

173A Example periods for those injured as continuous full‑time Reservists

(1) For the purposes of the definition of example period in sections 172 and 173 for an incapacitated person who was a continuous full‑time Reservist when the service injury was sustained, or the service disease was contracted, the Commission may determine, as the end of the example period, a time before the person last ceased to be a member of the Defence Force (instead of a time before the person began his or her last period of continuous full‑time service).

(2) If the Commission does so, a reference in sections 171, 172 and 173 to a time before the person began his or her last period of continuous full‑time service is taken instead to be a reference to a time before the person last ceased to be a member of the Defence Force.

Subdivision E—Working out normal weekly hours for persons who have chosen pre‑CFTS earnings

174 Working out normal weekly hours for persons who have chosen pre‑CFTS earnings

(1) The normal weekly hours for an incapacitated person who has chosen the pre‑CFTS earnings under section 167 means the amount worked out using the following formula:

(2) In this section:

ADF hours for an incapacitated person means the average number of hours per week (if any) during the example period (as defined in subsection 173(4)) for which the person was paid as a part‑time Reservist.

pre‑CFTS overtime hours has the meaning given by subsection 171(4).

pre‑CFTS weekly hours has the meaning given by subsection 171(4).

Division 9—Working out normal and actual earnings and normal weekly hours for persons who were cadets or declared members

175 Regulations may prescribe methods for working out normal and actual earnings and normal weekly hours for cadets and declared members

The regulations may prescribe one or more methods of working out normal earnings, actual earnings and normal weekly hours for persons who were cadets and declared members.

Note: The regulations may also modify the application of this Part in respect of cadets and declared members (see section 439).

Part 5—Adjusting the amount of compensation for incapacity for service or work

Division 1—Introduction

176 Simplified outline of this Part

This Part sets out some important rules relating to a person’s normal earnings, actual earnings and the amount of compensation paid under Part 3 or 4.

Division 2 has some general rules that apply when working out normal and actual earnings.

Division 3 adjusts normal earnings for persons whose normal earnings relate to ADF pay.

Division 4 adjusts normal earnings for persons whose normal earnings relate to civilian pay.

Division 5 sets out how to work out compensation for part of a week.

177 Definitions of normal earnings and actual earnings

In this Part:

actual earnings has the meaning given by subsection 89(3) or 132(1) (as the case requires).

normal earnings has the meaning given by subsection 89(3) or 132(2) (as the case requires).

Division 2—General rules relating to normal and actual earnings etc.

178 Simplified outline of this Division

This Division deals with the following matters:

(a) the amount of a person’s normal earnings if his or her normal earnings are less than the federal minimum wage;

(b) amounts to be excluded in working out normal and actual earnings;

(d) indexation.

179 Normal earnings that are less than the federal minimum wage

If a person’s normal earnings for a week are less than the amount of the federal minimum wage for the week (as set by the Australian Industrial Relations Commission), then the person’s normal earnings for the week are instead the amount of the federal minimum wage for the week.

180 Amounts that are excluded when working out normal and actual earnings

(1) In working out normal earnings, do not include:

(a) any amount of a bonus that is earned by the person (whether paid as a lump sum or periodically); or

(b) the amount of any expected increase due to:

(i) the reasonable expectation of a bonus; or

(ii) the reasonable expectation of a promotion; or

(iii) the reasonable expectation of a posting.

(2) In working out actual earnings, do not include any amount of a bonus that is earned by the person (whether paid as a lump sum or periodically).

181 Matters to be considered in determining actual earnings

(1) This section sets out those matters that the Commission must have regard to in determining the weekly amount that a person is able to earn in suitable work for the purposes of:

(a) paragraphs 101(4)(a), 105(4)(a) and 115(4)(a) (definition of actual civilian earnings); and

(b) paragraph (a) of the definition of actual earnings in subsection 132(1).

In addition, the Commission may have regard to any other matter it considers relevant.

(2) If the person is working in suitable work, the Commission must have regard to the weekly amount that the person is earning in that work.

(3) If any of the following applies after the person becomes incapacitated for work, the Commission must have regard to the matters set out in subsection (4):

(a) the person fails to accept an offer of suitable work that is made to the person;

(b) an offer of suitable work is made to the person and accepted but the person fails to begin, or fails to continue, the work;

(c) an offer of suitable work is made to the person on the condition that the person complete a reasonable rehabilitation or vocational retraining program but the person fails to do so.

(4) If subsection (3) applies, the Commission must have regard to:

(a) the weekly amount that the person would be earning in that work if the person had not failed as described in subsection (3); and

(b) whether that failure was reasonable in all the circumstances.

(5) If the person has failed to seek suitable work after becoming incapacitated for work, the Commission must have regard to:

(a) the weekly amount that the person could reasonably be expected to earn in suitable work, having regard to the state of the labour market at the relevant time; and

(b) whether that failure was reasonable in all the circumstances.

182 Indexation of pre‑CFTS pay and civilian daily earnings

(1) The regulations may specify:

(a) an index for the purposes of this section; and

(b) the manner of working out an increase in the amount of a person’s pre‑CFTS pay or civilian daily earnings (as the case requires) by reference to the movement of that index over the year ending each 31 December.

(2) The amount of a person’s pre‑CFTS pay or civilian daily earnings, for an indexation year in which there is an increase in the prescribed index, is increased in the manner prescribed by the regulations.

(3) In this section:

civilian daily earnings means the amount worked out under the following provisions:

(a) subsections 98(2) and (3);

(b) subsections 156(2) and (3).

pre‑CFTS pay means the amount worked out under the following provisions:

(a) section 112;

(b) section 147;

183 Indexation of $100 in ADF pay

(1) The regulations may specify:

(a) an index for the purposes of this section; and

(b) the manner of working out an increase in the amount of $100 mentioned in subsections 104(1), 109(1), 141(1), 144(1), 164(1) and 168(1) by reference to the movement of that index over the year ending each 31 December.

(2) The amount of $100, for an indexation year in which there is an increase in the prescribed index, is increased in the manner prescribed by the regulations.

Division 3—Adjusting ADF pay and pay‑related allowances

184 Simplified outline of this Division

This Division adjusts the amount of a person’s normal earnings worked out under Part 3 or 4 if the normal earnings relate to ADF pay.

The normal earnings are adjusted in the following situations:

(a) if a person’s pay would increase (because of an increment increase, a pay rise or a promotion);

(b) if a pay‑related allowance, or the category of defence work that is used to determine the person’s normal earnings, is abolished;

Once a person’s normal earnings have been worked out under Part 3 or 4, the earnings can only be adjusted under this Division.

185 Increases in pay and allowances

(1) This section applies for the purposes of the following sections:

(a) section 91;

(b) section 96;

(d) section 109;

(e) section 114;

(f) section 141;

(g) section 144;

(h) section 149;

(i) section 154;

(j) section 161;

(k) section 164;

(l) section 168;

(m) section 173.

(2) The amount of pay that a person would have earned for a period as a member of the Defence Force, and the amount of a pay‑related allowance that a person would have been paid for a period, include the following amounts that would have applied for the period:

(a) the amount of any increase in the person’s pay by way of an increment in a range of pay;

(b) the amount of any increase in the person’s pay or a pay‑related allowance as a result of:

(i) the operation of a law of the Commonwealth, a State or a Territory; or

(ii) the making, alteration or operation of an award, order, determination or industrial agreement, or the doing of any other act or thing, under such a law.

186 Increases in pay and allowances due to actual promotions

(1) This section applies for the purposes of sections 91, 96, 114 and 149 if a person is promoted.

(2) The amount of pay that the person would have earned for a period as a member of the Defence Force, and the amount of a pay‑related allowance that the person would have been paid for a period, include:

(a) the amount of any actual increase in the person’s pay or a pay‑related allowance; or

(b) the amount of an additional pay‑related allowance the person would be paid;

for the period because the person is promoted.

Note: A person must actually be promoted in order to receive an increase under this subsection.

187 Commission must determine category of defence work when defence work abolished

(1) This section applies for the purposes of sections 104, 109, 114, 141, 144, 149, 154, 161, 164, 168 and 173 if the category of defence work that is used to determine a person’s normal earnings ceases to exist.

Note: For example, the category of defence work that is used to determine the normal earnings of a person to whom section 104 applies is the category of defence work that the person was engaged in immediately before completing his or her last period of full‑time service.

(2) The Commission must determine which of the current categories of defence work should be used to determine a person’s normal earnings instead.

(3) The amount of pay that the person would have earned for a period is the amount that the person would have earned for the period if the person performed the category of defence work determined under subsection (2).

Note: The amount of pay mentioned in subsection (3) might include increases mentioned in section 185.

188 Commission may determine pay‑related allowances when defence work abolished

(1) This section applies for the purposes of sections 91, 96, 104, 109, 114, 141, 144, 149, 154, 161, 164, 168 and 173 if a person’s compensable pay‑related allowance (the old allowance) ceases to exist before the allowance’s cessation date.

Note: Subsection (6) defines cessation date and compensable pay‑related allowance.

(2) The Commission may determine which of the current pay‑related allowances (if any) the person would have been paid instead.

(3) The amount of the old allowance that the person would have been paid for a period is the amount (if any) for the period of the pay‑related allowance determined under subsection (2).

Note: The amount of the pay‑related allowance mentioned in subsection (3) might include increases mentioned in section 185.

(4) The pay‑related allowance determined under subsection (2) is taken to be a compensable pay‑related allowance.

(5) The cessation date for the new allowance is taken to be the old allowance’s cessation date.

(6) In this section:

cessation date for a person’s pay‑related allowance means the date advised by the person’s service chief under the following provisions (as the case requires):

(a) subsection 91(4);

(b) subsection 96(2);

(d) subsection 109(4);

(e) subsection 114(2);

(f) subsection 141(4);

(g) subsection 144(4);

(h) subsection 149(2);

(i) subsection 154(2);

(j) subsection 161(2);

(k) subsection 164(4);

(l) subsection 168(4);

(m) subsection 173(2).

compensable pay‑related allowance has the meaning given by the following provisions (as the case requires):

(a) subsection 91(5);

(b) subsection 96(3);

(d) subsection 109(5);

(e) subsection 114(4);

(f) subsection 141(5);

(g) subsection 144(5);

(h) subsection 149(4);

(i) subsection 154(3);

(j) subsection 161(3);

(k) subsection 164(5);

(l) subsection 168(5);

(m) subsection 173(4).

189 Amount of pay and allowances for those undergoing initial training

(1) This section applies for the purposes of sections 104, 109, 141, 144, 164 and 168:

(a) in respect of a person who was undergoing initial training immediately before:

(i) if section 104, 109, 164 or 168 applies—completing his or her last period of full‑time service; and

(ii) if section 141 or 144 applies—last ceasing to be a member of the Defence Force; and

(b) for each week that occurs after the person would have completed the initial training if the person had completed the training.

(2) The amount of pay that the person would have earned, and the amount of pay‑related allowances that the person would have been paid, for each such week is the amount advised under subsection (3).

Note: An amount advised under this section might later include increases mentioned in section 185.

(3) The person’s service chief must advise the Commission in writing of the following:

(a) the rank that the service chief considers the person would have held after completing the initial training;

(b) the amount of pay for a week for that rank that the service chief considers the person would have earned as a member of the Defence Force after completing the training;

(c) any pay‑related allowance that the service chief considers the person would have been paid after completing the training;

(d) the amount of that pay‑related allowance for a week that the service chief considers the person would have been paid after completing the training.

190 No other adjustments to be taken into account

The only adjustments of the amount of a person’s pay or a pay‑related allowance to be taken into account in determining the person’s normal earnings are the adjustments mentioned in this Division.

Division 4—Adjusting other pay

191 Simplified outline of this Division

This Division adjusts the amount of a person’s civilian daily earnings or pre‑CFTS pay if:

(a) the amount is varied during the example period; or

(b) it is impracticable to work it out for the person.

192 Definitions of civilian daily earnings, example period and pre‑CFTS pay

In this Division:

civilian daily earnings has the meaning given by section 98 or 156 (as the case requires).

example period has the meaning given by section 99, 113, 148, 157 or 172 (as the case requires).

pre‑CFTS pay has the meaning given by section 112, 147 or 171 (as the case requires).

193 Variations during the example period

(1) This section applies for the purposes of sections 98, 112, 147, 156 and 171 if a person’s civilian daily earnings or pre‑CFTS pay varies during the example period.

(2) If the variation occurs as a result of:

(a) the operation of a law of the Commonwealth, a State or a Territory; or

(b) the making, alteration or operation of an award, order, determination or industrial agreement, or the doing of any other act or thing, under such a law;

then the amount of the civilian daily earnings or pre‑CFTS pay for the person is instead the amount that would have been his or her civilian daily earnings or pre‑CFTS pay if the variation had taken effect at the beginning of the example period.

194 Civilian daily earnings or pre‑CFTS pay if working them out is impracticable

(1) This section applies for the purposes of sections 98, 112, 147, 156 and 171 if it is impracticable to work out the civilian daily earnings or pre‑CFTS pay for a person.

(2) The civilian daily earnings or pre‑CFTS pay for a person before the relevant date is the civilian daily earnings or pre‑CFTS pay before that date of another person performing comparable work.

(3) In this section:

relevant date for a person means:

(a) if section 98 applies—the onset date for the person’s incapacity; and

(b) if section 156 applies—the date the person last ceased to be a member of the Defence Force; and

Division 5—Working out compensation for parts of weeks

195 Simplified outline of this Division

This Division sets out how to work out the amount of compensation the Commonwealth is liable to pay under Part 3 or 4 of this Chapter if a person is only entitled to compensation for part of a week and not a whole week.

196 Working out compensation for parts of weeks

(1) The Commonwealth is liable to pay compensation under section 85, 86, 87 or 118 for a part of a week rather than a whole week if a person satisfies subsection 85(1), 86(1), 87(1) or 118(1) for the part of the week.

(2) The following formula sets out how to work out the amount of compensation that the Commonwealth is liable to pay to a person for a part of a week rather than a whole week:

(3) In this section:

number of days means:

(a) if the person is entitled to compensation under section 118 and Division 6 of Part 4 applies to the person—7; and

(b) if the person is entitled to compensation under section 87—the number of days prescribed by the regulations in respect of the person; and

Note 1: Division 6 of Part 4 applies to former part‑time Reservists who are incapacitated for work but who did not engage in civilian work before last ceasing to be a member of the Defence Force.

Note 2: Section 87 applies to incapacitated cadets and declared members.

Part 6—Choice to receive a Special Rate Disability Pension

197 Simplified outline of this Part

This Part provides a choice for severely impaired people (at least 50 impairment points) who are unable to work more than 10 hours per week to receive a pension under this Part instead of compensation worked out under Division 2 of Part 4.

The rate of the pension is the same as the rate applicable under section 24 of the Veterans’ Entitlements Act 1986. However, the rate may be reduced for a recipient who receives an amount under Part 2 (permanent impairment) or who receives Commonwealth superannuation.

A person who works more than 10 hours per week stops receiving the Special Rate Disability Pension. However, the person might still be eligible for assistance under the Return to Work Scheme determined by the Commission under section 210, or compensation worked out under Division 2 of Part 4.

198 What is a Special Rate Disability Pension?

(1) A Special Rate Disability Pension is an ongoing weekly payment (other than a payment under the Return to Work Scheme in section 210) that can be paid to certain persons instead of compensation worked out under Division 2 of Part 4.

(2) The maximum weekly amount of a Special Rate Disability Pension is one half of the fortnightly rate at which a pension is payable from time to time under section 24 of the Veterans’ Entitlements Act 1986.

199 Persons who are eligible to make a choice under this Part

(1) A person is eligible to make a choice under this Part if the Commission is satisfied that the person meets the following criteria (the eligibility criteria):

(a) the person is receiving compensation worked out under Division 2 of Part 4 as a result of one or more service injuries or diseases;

(b) as a result of the injuries or diseases, the person has suffered an impairment that is likely to continue indefinitely;

(d) the person is unable to undertake remunerative work for more than 10 hours per week, and rehabilitation is unlikely to increase the person’s capacity to undertake remunerative work.

(2) The Commission must, as soon as practicable after becoming satisfied that a person meets the eligibility criteria, make the person a written offer of a choice under this Part. The offer must specify the date on which the offer is made.

200 Choice to receive Special Rate Disability Pension

(1) A person who is offered the choice under this Division can choose to receive a Special Rate Disability Pension instead of compensation worked out under Division 2 of Part 4.

(2) A person who makes the choice cannot change it.

(3) However, a person to whom the Commonwealth is no longer liable to pay a Special Rate Disability Pension under section 209 is taken not to have chosen to receive the Pension.

Note: This means that the person might still be entitled to compensation worked out under Division 2 of Part 4 or under the Return to Work Scheme in section 210.

201 When the choice is to be made

(1) A person who is offered the choice under this Part and who wishes to make the choice must do so within 12 months after the date on which the offer was made.

(2) The Commission may, either before or after the end of that period, extend the period within which the person must make the choice if the Commission is satisfied that:

(a) there was a delay in the person receiving the offer under subsection 199(2); or

(b) the person did not receive the offer.

202 Other requirements for the choice

(1) The Commission may, in writing, approve a form for the purposes of this section.

(2) A person must make the choice in writing in accordance with the form.

(3) Before making the choice, the person must obtain financial advice from a suitably qualified financial adviser in respect of the choice.

Note: The person might be entitled to compensation for the cost of the financial advice under section 205.

203 Determinations by Commission

(1) The Commission must determine that the Commonwealth is liable to pay a Special Rate Disability Pension to a person instead of compensation worked out under Division 2 of Part 4 if:

(a) the person is offered the choice under this Part; and

(b) the person makes the choice to receive the pension within the period applicable under section 201 and in accordance with section 202; and

(c) the Commission is satisfied that the person meets the eligibility criteria on the day on which the person makes the choice.

(2) The Commission must determine that a person is to continue to receive compensation worked out under Division 2 of Part 4 if:

(a) the person is offered a choice under this Part; and

(b) either:

(i) the person does not make the choice within the period applicable under section 201 and in accordance with section 202; or

(ii) the Commission is satisfied that the person does not meet the eligibility criteria on the day on which the person makes the choice.

(3) If the Commission makes a determination under subsection (1) in relation to a person, a Special Rate Disability Pension is payable to the person instead of compensation worked out under Division 2 of Part 4 from the day on which the Commission becomes aware of the person’s choice.

204 Offsets

(1) The maximum weekly amount of a Special Rate Disability Pension that could be payable to a person is reduced in accordance with this section.

(2) The reduction is made by reference to amounts payable or paid to the person under Part 2 (permanent impairment). However, a payment received for eligible young persons or for financial advice under that Part does not reduce the maximum weekly amount of Special Rate Disability Pension that could be payable to the person.

(3) The maximum weekly amount of a Special Rate Disability Pension that could be payable to a person is reduced by the sum of:

(a) any weekly amounts that are being paid to the person under Part 2; and

(b) if the person has chosen to convert all or part of one or more weekly amounts that were payable to the person under that Part to lump sums—those weekly amounts or those parts of those weekly amounts.

(4) Subsection (3) applies to a person to whom section 389 or 402 applies as if the person were being paid the weekly amounts under Part 2 that the person would be paid if that section did not apply to the person.

Note: Section 389 provides that compensation under Part 2 is not payable to a person who chooses to institute proceedings for damages against the Commonwealth. Under section 402, compensation under this Act is not payable to a person who recovers damages from a third party.

(5) There is a further reduction if the person:

(a) has retired voluntarily, or has been compulsorily retired, from his or her work; and

(b) receives either or both a pension or lump sum under a Commonwealth superannuation scheme as a result of the retirement.

(6) The amount of the reduction under subsection (4) is 60% of the reduction that would apply to the person under section 134, 135 or 136 if the person were receiving compensation worked out under Division 2 of Part 4.

205 Compensation for cost of financial advice

The Commonwealth is liable to pay compensation for the cost of financial advice obtained by a person if:

(a) the person obtains financial advice from a suitably qualified financial adviser as mentioned in subsection 202(3); and

(b) a claim for compensation in respect of the person has been made under section 319.

206 Amount of financial advice compensation

(1) The Commission must determine the amount of compensation under section 205 for the cost of the financial advice that it considers reasonable. The total amount must not exceed $1,200.

Note: The amount of $1,200 is indexed under section 404.

(2) The total amount of $1,200 applies both to financial advice under this Part and financial advice under Part 2 if the day on which the offer under this Part was made, and the day specified in the first notice given to the person under section 76, are the same.

207 Whom the compensation is payable to

(1) Compensation under section 205 for the cost of financial advice is payable to:

(a) the person who made the claim for compensation; or

(b) if that person so directs:

(i) the person who gave the financial advice; or

(ii) any other person who incurred the cost of the financial advice.

Note: A special rule applies if a trustee is appointed under section 432.

(2) An amount paid to the person who gave the financial advice discharges any liability of any other person for the cost of the financial advice to the extent of the payment.

208 Persons who are imprisoned

The Commonwealth is not liable to pay a Special Rate Disability Pension to a person for any period during which the person is imprisoned in connection with his or her conviction of an offence.

209 Ceasing to meet certain criteria

The Commonwealth is no longer liable to pay a Special Rate Disability Pension to a person if the Commission is satisfied that:

(a) the person’s impairment as a result of all of the service injuries or diseases from which the person suffers constitutes fewer than 50 impairment points; or

(b) the person is able to undertake remunerative work for more than 10 hours per week.

210 Return to work scheme

(1) The Commission may determine, in writing, a scheme, called the Return to Work Scheme, under which the Commonwealth is liable to pay compensation of a kind mentioned in subsection (2) to a person in circumstances identified in the Return to Work Scheme if:

(a) the person:

(i) was receiving a Special Rate Disability Pension; and

(ii) becomes able to undertake remunerative work for more than 10 hours per week; and

(b) a claim for compensation in respect of the person has been made under section 319.

Note: The person would no longer be entitled to Special Rate Disability Pension because of paragraph 209(b).

(2) The compensation is a weekly payment of an amount:

(a) worked out under the Return to Work Scheme; and

(b) worked out, at least in part, by reference to the number of hours per week of remunerative work that the person is able to undertake.

(3) The Commission may, from time to time, repeal or amend the Return to Work Scheme in writing.

(4) The Return to Work Scheme, and any repeal or amendment of the Return to Work Scheme, is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.

Part 7—Other types of compensation for members and former members

Division 1—Simplified outline of this Part

211 Simplified outline of this Part

This Part provides other types of compensation for current and former members who have suffered a service injury or disease.

A person who, because of an impairment resulting from a service injury or disease, has special requirements for his or her car can obtain compensation under Division 2.

Compensation is provided under Division 3 for household and attendant care services that are required because of a service injury or disease.

An allowance to pay for a home phone is provided under Division 4 for those who have suffered a serious impairment from a service injury or disease.

Compensation for loss or damage to a member’s medical aid might be provided under Division 5 (but only if the member has not claimed compensation for a related service injury or disease).

Division 2—Motor Vehicle Compensation Scheme

212 Motor Vehicle Compensation Scheme

(1) The Commission may determine, in writing, a scheme, called the Motor Vehicle Compensation Scheme (the MVCS), under which the Commonwealth is liable to provide compensation of a kind mentioned in subsection (2) to a person in circumstances identified in the MVCS if:

(a) the person has suffered an impairment as a result of a service injury or disease for which the Commission has accepted liability; and

(b) because of that impairment, the person has a need for compensation of that kind; and

(2) The kinds of compensation are:

(a) modifying a motor vehicle for a person; and

(b) maintaining or repairing modifications to a motor vehicle; and

(d) purchasing a motor vehicle for a person; and

(e) other kinds of compensation relating to motor vehicles specified in the MVCS.

(3) The Commission may, from time to time, repeal or amend the MVCS in writing.

(4) The MVCS, and any repeal or amendment of the MVCS, is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.

(5) The Commonwealth is only liable to pay compensation under the MVCS in respect of an aggravated injury or disease if it is because of the aggravation or material contribution (whether wholly or partly) that the person suffered the impairment.

Division 3—Compensation for household and attendant care services

213 Definitions of attendant care services and household services

In this Division:

attendant care services for a person means services (other than household services, medical or surgical services or nursing care) that are required for the essential and regular personal care of the person.

household services for a person means services of a domestic nature (including cooking, house cleaning, laundry and gardening services) that are required for the proper running and maintenance of the person’s household.

214 Compensation for household services

(1) The Commonwealth is liable to pay weekly compensation for household services provided to a person if:

(a) the Commission has accepted liability for a service injury or disease of the person; and

(b) the person obtains household services that he or she reasonably requires because of the injury or disease; and

(2) However, the Commonwealth is only liable to pay compensation in respect of an aggravated injury or disease if it is because of the aggravation or material contribution (whether wholly or partly) that the person reasonably requires the household services.

215 Matters to be considered in household services compensation claims

In determining whether household services are reasonably required for a person, the Commission must have regard to the following matters:

(a) the extent to which household services were provided by the person before the service injury or disease;

(b) the extent to which he or she is able to provide those services after the service injury or disease;

(d) the age of the household members and their need for household services;

(e) the extent to which household services were provided by household members before the service injury or disease;

(f) the extent to which household members, or any other relatives of the person, might reasonably be expected to provide household services for themselves and for the person after the service injury or disease;

(g) the need to avoid substantial disruption to the work or other activities of the household members;

(h) any other matter that the Commission considers relevant.

216 Amount of household compensation

The weekly amount of compensation under section 214 that the Commonwealth is liable to pay for household services is the lesser of the following amounts:

(a) the weekly amount paid or payable for those services;

(b) $330.

Note: The amount of $330 is indexed under section 404.

217 Compensation for attendant care services

(1) The Commonwealth is liable to pay weekly compensation for attendant care services provided to a person if:

(a) the Commission has accepted liability for a service injury or disease of the person; and

(b) the person obtains attendant care services that he or she reasonably requires because of the injury or disease; and

218 Matters to be considered in attendant care compensation claims

In determining whether attendant care services are reasonably required for a person, the Commission must have regard to the following matters:

(a) the nature of the person’s injury or disease;

(b) the degree to which that injury or disease impairs the person’s ability to provide for his or her personal care;

(c) the extent to which any medical service or nursing care received by the person provides for his or her essential and regular personal care;

(d) the extent to which the attendant care services are necessary to meet any reasonable wish by the person to live outside an institution;

(e) the extent to which attendant care services are necessary to enable the person to undertake or continue defence service or any other work;

(f) any assessment made in relation to the rehabilitation of the person;

(g) the extent to which a relative of the person might reasonably be expected to provide attendant care services;

(h) any other matter that the Commission considers relevant.

219 Amount of compensation for attendant care services

The weekly amount of compensation under section 217 that the Commonwealth is liable to pay for attendant care services is the lesser of the following amounts:

(a) the weekly amount paid or payable for those services;

(b) $330.

Note: The amount of $330 is indexed under section 404.

220 Whom household and attendant care compensation is payable to

(1) Compensation under section 214 or 217 for household services or attendant care services is payable to:

(a) the person who made the claim for compensation; or

(b) if that person so directs:

(i) the person who provided, or will provide, the services; or

(ii) any other person who incurred, or will incur, the cost of the services.

Note: A special rule applies if a trustee is appointed under section 432.

(2) A payment under section 214 or 217 to a person who provided, or will provide, the services discharges any liability of any other person for the cost of the services to the extent of the payment.

Division 4—Telephone allowance for members and former members

221 Eligibility for telephone allowance

Persons eligible for Special Rate Disability Pension

(1) A person is eligible for a telephone allowance if:

(a) the person satisfies the eligibility criteria in section 199 (persons who are eligible for Special Rate Disability Pension), or has satisfied those criteria during some period of his or her life; and

(b) the person is an Australian resident (within the meaning of section 5G of the Veterans’ Entitlements Act 1986); and

(c) the person’s telephone service is connected in Australia in the person’s name or jointly in the person’s name and someone else’s name.

Note: Section 222 sets out some circumstances in which telephone allowance is not payable.

Persons with 80 or more impairment points

(2) A person is eligible for a telephone allowance if:

(a) the Commission has determined under Part 2 that an impairment suffered by the person as a result of one or more service injuries or diseases constitutes 80 or more impairment points; and

(b) the person is an Australian resident (within the meaning of section 5G of the Veterans’ Entitlements Act 1986); and

(c) the person’s telephone service is connected in Australia in the person’s name or jointly in the person’s name and someone else’s name.

Note: Section 222 sets out some circumstances in which telephone allowance is not payable.

222 Telephone allowance not payable in some circumstances

Persons leaving Australia otherwise than temporarily

(1) A person who leaves Australia otherwise than temporarily is not eligible for a telephone allowance on or after the next telephone allowance payday.

Temporary absence from Australia

(2) A person who is temporarily absent from Australia and has been so absent for more than 26 weeks is not eligible for a telephone allowance after the first 26 weeks of the absence.

When a person becomes eligible for telephone allowance after leaving Australia

(3) A person mentioned in subsection (1) or (2) again becomes eligible to receive the telephone allowance on the later of the following days:

(a) the day on which the person returns to Australia;

(b) the day on which the person notifies the Commission of his or her return to Australia.

Persons receiving other allowances etc.

(4) Even though a person is eligible for a telephone allowance, the allowance is not payable to the person if he or she is receiving a telephone allowance under:

(a) the Veterans’ Entitlements Act 1986; or

(b) the Social Security Act 1991; or

Entitlement under this Act when Veterans’ Entitlements Act rate is lower

(5) However, if the rate of telephone allowance at which a person is being paid telephone allowance under the Veterans’ Entitlements Act 1986 is lower than the rate at which the person would be paid under section 223 of this Act, then the allowance is payable under this Act rather than the Veterans’ Entitlements Act 1986.

Definition of telephone allowance payday

(6) In this section:

telephone allowance payday has the same meaning as in section 118T of the Veterans’ Entitlements Act 1986.

223 Annual rate of telephone allowance

The annual rate of telephone allowance that is payable under section 221 is the rate that is payable from time to time under subsection 118S(1) of the Veterans’ Entitlements Act 1986.

224 Payment by instalments

A full instalment of telephone allowance is payable to a person on each telephone allowance payday (within the meaning of section 118T of the Veterans’ Entitlements Act 1986) on which:

(a) the person is eligible for the allowance; and

(b) the allowance is payable to the person.

Note: If a trustee is appointed under section 432, then the allowance would be payable to the trustee instead.

225 Working out amount of instalment

(1) The amount of an instalment of telephone allowance is the amount worked out by dividing the amount of the annual rate of telephone allowance by 4.

(2) If the amount of an instalment is not a multiple of 10 cents, the amount is to be increased to the nearest multiple of 10 cents.

Division 5—Compensation for loss of, or damage to, medical aids

226 Compensation for loss of, or damage to, medical aids

(1) The Commonwealth is liable to pay compensation for the loss of, or damage to, a member’s medical aid if:

(a) the loss or damage results from an occurrence that happened while the member was rendering defence service; and

(b) the loss or damage requires the medical aid to be repaired or replaced; and

(c) a claim for acceptance of liability for the loss or damage, and a claim for compensation in respect of the member, has been made under section 319.

Exclusions

(2) However, the Commonwealth is not liable to pay compensation for the loss or damage if:

(a) a claim for the Commission to accept liability for a service injury, disease or death resulting from the occurrence has been made under section 319; or

(b) one or more of the exclusions in sections 227 and 228 applies in respect of the loss or damage, or in respect of the occurrence that resulted in the loss or damage.

(3) The Commonwealth is not liable to pay compensation for the loss or damage to the extent that the medical aid is repaired or replaced by the Commonwealth (other than under this section).

227 Exclusions relating to serious defaults etc.

(1) The Commonwealth is not liable to pay compensation for the loss of, or damage to, a member’s medical aid if:

(a) the occurrence that results in the loss or damage:

(i) resulted from the member’s serious default or wilful act; or

(ii) happened while the member was committing a serious breach of discipline; or

(iii) resulted from reasonable and appropriate counselling in relation to the member’s performance as a member; or

(b) the loss or damage was intentionally caused by the member.

(2) For the purpose of subparagraph (1)(a)(i), an occurrence is taken to have resulted from a member’s serious default or wilful act if:

(a) the member consumed alcohol or took a drug (other than a drug administered by a person legally authorised to administer the drug or a drug legally obtained and taken in accordance with the directions provided with the drug); and

(b) the occurrence resulted from the member being under the influence of the alcohol or drug.

This subsection does not otherwise limit subparagraph (1)(a)(i).

228 Exclusions relating to travel

Substantial delay commencing journey

(1) The Commission is not liable to pay compensation for the loss of, or damage to, a member’s medical aid that resulted from an accident that occurred while the member was travelling on a journey from the member’s place of duty if the member delayed commencing the journey for a substantial time after he or she ceased to perform duty at that place, unless:

(a) the delay was for a reason connected with the performance of the member’s duties; or

(b) in the circumstances of the particular case:

(i) the nature of the risk of having the accident was not substantially changed; and

(ii) the extent of that risk was not substantially increased;

by that delay or by anything that happened during that delay.

Routes that are not reasonably direct

(2) The Commission is not liable to pay compensation for the loss of, or damage to, a member’s medical aid that resulted from an accident that occurred while the member was travelling on a journey, or a part of a journey, by a route that was not reasonably direct having regard to the means of transport used, unless:

(a) the journey, or that part of the journey, was made by that route for a reason connected with the performance of the member’s duties; or

(b) in the circumstances of the particular case:

(i) the nature of the risk of having the accident was not substantially changed; and

(ii) the extent of that risk was not substantially increased;

because the journey, or that part of the journey, was made by that route.

Substantial interruptions to journeys

(3) The Commission is not liable to pay compensation for the loss of, or damage to, a member’s medical aid that resulted from an accident that occurred while the member was travelling on a part of a journey made after a substantial interruption of the journey, unless:

(a) the interruption was made for a reason connected with the performance of the member’s duties; or

(b) in the circumstances of the particular case:

(i) the nature of the risk of having the accident was not substantially changed; and

(ii) the extent of that risk was not substantially increased;

because of that interruption.

229 Amount of medical aid compensation

The amount of compensation that the Commonwealth is liable to pay under section 226 for the loss of, or damage to, a member’s medical aid is the amount reasonably incurred by the member (whether paid or payable) in the necessary replacement or repair of the medical aid. This may include any reasonable fees or charges of a practitioner, or other qualified person, for a consultation, examination, prescription, or other service that is reasonably rendered in connection with the replacement or repair.

230 Whom medical aid compensation is payable to

(1) Compensation under section 226 for the loss of, or damage to, a member’s medical aid is payable to:

(a) the person who made the claim for compensation; or

(b) if that person so directs:

(i) the person who provided any goods or services in connection with the replacement or repair of the medical aid; or

(ii) any other person who incurred the cost of goods or services in connection with the replacement or repair.

Note: A special rule applies if a trustee is appointed under section 432.

(2) A payment under section 226 to a person who provided the goods or services discharges any liability of any other person for the cost of the goods or services to the extent of the payment.

Chapter 5—Compensation for dependants of certain deceased members, members and former members

Part 1—Simplified outline of this Chapter

231 Simplified outline of this Chapter

This Chapter provides for compensation and other benefits for dependants of certain deceased, current and former members.

Most of the benefits are provided to dependants of deceased members to whom section 12 applies. That section applies to a deceased member who died from a service death or who suffered a serious impairment from a service injury or disease before his or her death.

Part 2 provides compensation for the partners of these members if the partners were wholly dependent on the member before the member’s death.

Part 3 provides compensation for the children of these members. Other young people who were dependent on a deceased member before the member’s death might also be entitled to compensation.

The Commission can set up a scheme under Part 3 to provide education and training for the children and young dependants of deceased members, as well as for the children and young dependants of some current and former members.

Part 4 provides compensation for other dependants who were wholly or partly dependent on a deceased member to whom section 12 applies.

Part 5 provides compensation for the cost of such a deceased member’s funeral.

Part 2—Compensation for member’s death for wholly dependent partners

Division 1—Simplified outline of this Part

232 Simplified outline of this Part

This Part provides compensation for the partners of deceased members in respect of whom section 12 applies if the partner was wholly dependent on the member before his or her death.

Division 2 provides the partner with a choice between compensation as a lump sum or as a weekly amount. The Division also provides additional lump sum compensation for a partner if the deceased member died from a service death.

Division 3 provides compensation for the cost of financial advice obtained for a partner who is entitled to compensation under Division 2.

Division 4 provides a partner with a further lump sum if the deceased member received some types of compensation under Chapter 4.

The partner might be entitled to an allowance to pay for his or her home phone under Division 5.

A partner who is entitled to compensation under this Chapter might also be entitled to have free treatment, or compensation for treatment, provided under Chapter 6.

Division 2—Compensation for member’s death for wholly dependent partners

233 Compensation for member’s death for wholly dependent partners

The Commonwealth is liable to pay compensation for a wholly dependent partner of a deceased member if:

(a) section 12 applies in respect of the member; and

(b) a claim for compensation in respect of the partner has been made under section 319.

234 Amount of compensation for wholly dependent partners

(1) The amount of compensation that the Commonwealth is liable to pay under section 233 is:

(a) if the Commission has accepted liability for the member’s death—the amount of the lump sum mentioned in subsection (2); and

(b) in any case—whichever of the following amounts is chosen by the partner:

(i) the amount of the lump sum mentioned in subsection (4);

(ii) the weekly amount mentioned in subsection (5).

Note: The subsection is affected by the following provisions:

(a) subsection (6) (meaning of relates to warlike service and relates to non‑warlike or peacetime service);

(b) section 236 (requirements for choosing between lump sum and weekly amount);

(2) For the purposes of paragraph (1)(a), the amount of the lump sum is the amount worked out using the following formula:

Note 1: Subsection (7) defines partner’s age‑based number.

Note 2: The amount of $100,000 is indexed under section 404.

(4) For the purposes of subparagraph (1)(b)(i), the amount of the lump sum is the amount worked out using the following formula:

Note 1: Subsection (7) defines partner’s age‑based number.

Note 2: The amount of the lump sum might be reduced under section 237 if the partner fails to make a choice within 6 months and receives the weekly amount for a period.

(5) For the purposes of subparagraph (1)(b)(ii), the weekly amount is:

(a) one half of the fortnightly rate at which a pension is payable from time to time under paragraphs 30(1)(a) and (b) of the Veterans’ Entitlements Act 1986; and

(b) payable from the date of the member’s death until the partner’s death.

(6) For the purposes of paragraph (1)(a), if 2 or more causes contribute to a member’s death, the death relates to warlike service or relates to non‑warlike or peacetime service if the warlike, non‑warlike or peacetime service materially contributes to the death.

(7) In this section:

partner’s age‑based number, in respect of a lump sum under paragraph (1)(a) or (b), means the number that is advised by the Australian Government Actuary by reference to the partner’s age at the date of the member’s death.

235 Notifying the partner of the choice

(1) The Commission must give the partner a written notice as soon as practicable:

(a) specifying the amount of the lump sum mentioned in subparagraph 234(1)(b)(i); and

(b) specifying the weekly amount mentioned in subparagraph 234(1)(b)(ii) that is currently payable; and

(d) specifying the date on which the notice is given.

(2) The notice may be included in the notice given under section 346.

236 Requirements for choosing between the lump sum and the weekly amount

(1) A partner who receives a notice under section 235 may choose to be paid the lump sum or the weekly amount.

Note: The weekly amount is payable from the date of the member’s death (see subsection 234(5)).

(2) A partner who makes a choice cannot change it.

(3) The choice must be made in writing and must be given to the Commission within 6 months after the date on which the partner received the notice.

(4) Before the end of the 6 month period, the Commission may extend the period within which the choice must be made if it considers there are special circumstances for doing so.

(5) The legal personal representative of a deceased partner is not entitled to choose to be paid the lump sum.

237 Commonwealth to pay weekly amount after 6 months etc.

(1) The Commonwealth is liable to pay the weekly amount mentioned in subparagraph 234(1)(b)(ii) if a partner has not made a choice under section 236 within:

(a) if the Commission has extended the period under subsection 236(4)—the period as extended by the Commission under that subsection; or

(b) otherwise—the period of 6 months after receiving the notice under section 235.

Note: The weekly amount is payable from the date of the member’s death (see subsection 234(5)).

(2) If the partner subsequently chooses the lump sum mentioned in subparagraph 234(1)(b)(i), then the amount of the lump sum that the Commonwealth is liable to pay is worked out using the following formula:

238 Whom the compensation is payable to

Compensation under section 233 is payable to the partner.

Note: A special rule applies if a trustee is appointed under section 432.

Division 3—Compensation for cost of financial advice for wholly dependent partners

239 Compensation for cost of financial advice for wholly dependent partners

The Commonwealth is liable to pay compensation for the cost of financial advice obtained by a wholly dependent partner of a deceased member if:

(a) the partner is entitled to compensation under section 233; and

(b) the financial advice was obtained from a suitably qualified financial adviser after the member’s death; and

240 Amount of financial advice compensation

The Commission must determine the amount of compensation under section 239 for the cost of the financial advice that it considers reasonable. The total amount (including all previous amounts paid in respect of the partner under this section) must not exceed $1,200.

Note: The amount of $1,200 is indexed under section 404.

241 Whom the compensation is payable to

(1) Compensation under section 239 for the cost of the financial advice is payable to:

(a) the person who made the claim for compensation; or

(b) if that person so directs:

(i) the person who gave the financial advice; or

(ii) any other person who incurred the cost of the financial advice.

Note: A special rule applies if a trustee is appointed under section 432.

(2) An amount paid to the person who gave the financial advice discharges any liability of any other person for the cost of the financial advice to the extent of the payment.

Division 4—Continuing permanent impairment and incapacity etc. compensation for wholly dependent partners

242 Continuing permanent impairment and incapacity etc. compensation for wholly dependent partners

(1) The Commonwealth is liable to pay compensation for a wholly dependent partner of a deceased member if:

(a) the member was paid compensation for the week before the week in which the member died under one or more of the following provisions:

(i) section 68, 71 or 75 (permanent impairment);

(ii) Part 3 or 4 of Chapter 4 (incapacity for service or work);

(iii) Part 6 of Chapter 4 (Special Rate Disability Pension); and

(b) a claim for compensation in respect of the partner has been made under section 319.

(2) In subsection (1):

(a) a reference to compensation paid for a week does not include a reference to compensation paid as a lump sum; and

(b) a reference to compensation paid includes a reference to compensation that the member was entitled to be paid.

243 Amount of permanent impairment and incapacity etc. compensation

(1) The amount of compensation that the Commonwealth is liable to pay under section 242 is the amount that is 12 times:

(a) the total amount of compensation that the member was paid under the provisions mentioned in paragraph 242(1)(a) for the week before the week in which the member died; or

(b) the total amount of compensation that the member was entitled to have been paid under those provisions for that week;

(as the case requires).

(2) The amount mentioned in subsection (1) is the total amount of compensation that the Commonwealth is liable to pay under section 242, even if more than one person is entitled to compensation under that section because of the same deceased member’s death.

244 Whom permanent impairment and incapacity etc. compensation is payable to

(1) Compensation for the partner under section 242 is payable to the partner.

Note: A special rule applies if a trustee is appointed under section 432.

(2) If 2 or more partners are entitled to compensation under section 242 because of the same deceased member’s death, then the compensation is payable in accordance with the directions of the Commission.

(3) In making directions under subsection (2), the Commission must have regard to any loss of financial support suffered by the partners as a result of the member’s death. The Commission must not have regard to any other matter.

Division 5—Telephone allowance for wholly dependent partners

245 Eligibility for telephone allowance

A wholly dependent partner of a deceased member is eligible for a telephone allowance if:

(a) section 12 applies in respect of the member; and

(b) the partner is an Australian resident (within the meaning of section 5G of the Veterans’ Entitlements Act 1986); and

(c) the partner’s telephone service is connected in Australia in the partner’s name or jointly in the partner’s name and someone else’s name.

Note: Section 246 sets out some circumstances when telephone allowance is not payable.

246 Telephone allowance not payable in some circumstances

People leaving Australia otherwise than temporarily

(1) A wholly dependent partner who leaves Australia otherwise than temporarily is not eligible for a telephone allowance on or after the next telephone allowance payday.

Temporary absence from Australia

(2) A wholly dependent partner who is temporarily absent from Australia and has been so absent for more than 26 weeks is not eligible for a telephone allowance after the first 26 weeks of the absence.

When a person becomes eligible for telephone allowance after leaving Australia

(3) The wholly dependent partner mentioned in subsections (1) and (2) again becomes eligible to receive the telephone allowance on the later of the following days:

(a) the day on which the partner returns to Australia; or

(b) the day on which the partner notifies the Commission of his or her return to Australia.

Partners receiving other allowances etc.

(4) Even though a wholly dependent partner is eligible for a telephone allowance, the allowance is not payable to the partner i