Main features of the Military Rehabilitation and Compensation Scheme

Rehabilitation

Rehabilitation is a primary focus, providing support to help injured members achieve recovery and return to work where possible.
This includes a requirement for the injured member's Service Chief to appoint a case manager for each ADF member being discharged on medical grounds whose role is to provide advice and assistance during the transition to civilian life.

Compensation payments for permanent impairment broadly match the Veterans’ Entitlements Act (VEA) for warlike and non-warlike service and the Safety, Rehabilitation and Compensation Act (SRCA) for peacetime service.
Compensation for severe impairment has been enhanced for all types of service with the maximum permanent impairment payment being $259.27 per week and the maximum lump sum being $339,747.40.
Those eligible for maximum permanent impairment compensation can receive a lump sum payment of $66,746.56 for each child dependent on the member at the time compensation is awarded.
Permanent impairment payments are available as a tax-free periodic payment, a tax-free lump sum or a combination of both.
Adoption of the principles in the VEA Guide to the Assessment of Rates of Veterans' Pensions (GARP) for assessing a person's impairment level for injuries and conditions related to defence service. This Guide is called GARP M.

ADF members incapacitated for work by accepted conditions can receive incapacity payments based on their ADF salary and allowances indexed to ADF pay and allowances rates.
The Normal Earnings calculation for discharged members has been boosted by a loading of $117.10 per week to compensate for the loss of non-salary related ADF benefits.
Reservists incapacitated while on Continuous Full-Time Service (CFTS) can have their incapacity payments based on their choice of pre-CFTS earnings or full-time ADF earnings.
Part-time Reservists incapacitated while rendering Defence service can have their payments based on both their civilian and military earnings.
Cadets, cadet officers and instructors can have their incapacity payments worked out on a case by case basis as their income can vary widely.
Consistent with the SRCA, ADF member’s incapacity payments are affected by the Commonwealth-funded component of any superannuation received which accrued whilst they served in the ADF.

Former members unable to work or be rehabilitated to work more than 10 hours a week will be offered a choice between a tax-free Special Rate Disability Pension (SRDP) safety net for life or taxable incapacity payments payable to age 65.
The SRDP is offset by the value of any permanent impairment payment received (expressed as a periodic payment) and the remaining amount will be affected by the Commonwealth-funded component of any superannuation the member is receiving which accrued during their service.

A medical treatment regime featuring payment of reasonable costs of treatment for short-term accepted conditions.
Provision of the White Card, providing free care for members needing ongoing treatment for conditions accepted as service-related.
Provision of the Gold Card for members with 60 or more permanent impairment points, or those eligible for the SRDP safety net payment, providing free care for all conditions regardless of whether they are service-related.

Compensation is available where the member's death is accepted as service-related, or where the member received or was entitled to the SRDP or maximum permanent impairment compensation (impairment assessed at or above 80 points under GARP M).
Compensation for widowed partners includes payments equivalent to the VEA war widow's pension for life or its age-based lump sum equivalent. The maximum payment for a lump sum is $460,351.19.
An additional age-based lump sum of up to $111,244.27 is available if the death is related to service.
Eligible widowed partners can also receive Gold Card treatment benefits, telephone allowance, pharmaceutical allowance, funeral benefit of up to $9,000.00 and continuation of the member's weekly permanent impairment payments, incapacity payments or the SRDP for 12 weeks after death.
Death benefits for each dependent child include a tax-free payment of $66,746.56, plus (if wholly or mainly dependent) $73.42 per week, education assistance and Gold Card treatment benefits.
A maximum of $211,364.12 is available for distribution amongst other family members who were wholly or partly dependent on the deceased member with a maximum of $66,746.56 for each eligible person.

Reimbursement for the cost of financial advice up to $1,334.93 is available for those who have 50 or more impairment points and for widowed partners when making a choice between a periodic payment and a lump sum.
The same benefit is available for those who are entitled to make the choice between incapacity payments and the SRDP safety net payment.

Assistance with the cost of household and attendant care required because of accepted conditions - up to $367.11 per week for household care services and up to $367.11 per week for attendant care services.
Vehicle modifications where necessary because of accepted conditions and a vehicle or vehicle replacement in limited circumstances.
Telephone allowance of $21.40 per quarter payable to members and former members who meet the criteria for the SRDP, or are eligible for maximum permanent impairment compensation, and wholly dependent partners eligible for compensation for a deceased member's death.
Pharmaceutical allowance of $2.90 per week for White and Gold Cardholders.

Service pension and associated allowances for warlike service, that is the same as VEA "qualifying service".
Income support supplement and associated allowances to widowed partners.
Victoria Cross Allowance.
Seniors Health Card where members have qualifying (warlike) service.
Gold Cards for:
- members with warlike service at age 70;
- members receiving service pension who meet the treatment eligibility income and asset limits; and
- members receiving service pension whose permanent impairment is assessed at or above 30 points.
White Cards for members with warlike or non-warlike service for treatment of non-service related posttraumatic stress disorder, a malignant neoplasm or pulmonary tuberculosis.
Funeral benefits for certain non-service related deaths.

Adoption of the VEA beneficial "beyond reasonable doubt" standard of proof for determining liability for injury, disease or death connected with warlike or non-warlike service.
Use of the VEA Statements of Principles when determining claims for acceptance of liability for injury, disease or death.
Choice of paths for review of decisions by the Military Rehabilitation & Compensation Commission (MRCC) or Service Chief:
- Reconsideration by an MRCC delegate not involved in the initial decision and from there to the Administrative Appeals Tribunal (AAT); or
- Review by the Veterans' Review Board and from there to the AAT.

An independent Military Rehabilitation and Compensation Commission (MRCC) is responsible for the regulation and administration of the scheme.
The MRCC administers the scheme through the Department of Veterans' Affairs.
The MRCC is a five-member Commission comprising three members of the Repatriation Commission, a person representing Defence and a person representing the Department of Employment and Workplace Relations.