DEFENCE members may soon have one of the most comprehensive, innovative and beneficial compensation schemes in Australia if draft legislation before Parliament is passed.

On June 27, Minister Assisting the Minister for Defence Danna Vale issued the Military Rehabilitation and Compensation Bill 2003.

“The new scheme enhances benefits available to Defence personnel and their families in the tragic event that a member suffers illness, injury or death as a result of their service to our nation,” she said.

“As well as improving support for injured members, the new scheme also increases the amount available to war widows and dependents who choose a lump sum as compensation.”

Mrs Vale said rehabilitation was a key focus of the new scheme.

“We want to ensure that any injured ADF member receives the support they need to make a full recovery or reach their optimum level of health, and to return to work where possible.”

CDF Gen Peter Cosgrove said the new scheme was a substantial departure from existing military compensation arrangements.

“This will be the first compensation scheme in the ADF’s history to specifically deal with the special nature of military service in all its forms, warlike, non-warlike and peacetime,” he said.

The scheme will consist of:

• Compensation for economic loss in the form of incapacity payments based on the member’s pre-injury earnings, where the member is unable to work as a result of a service related injury or illness.
• Compensation for permanent impairment and non-economic loss in the form of lump sum payments for the pain and suffering associated with an injury or illness.
• Vocational, medical and social rehabilitation aimed at assisting the member to return to work or, in case of severe injury or illness, in assisting the member to improve his or her quality of life.
• Comprehensive coverage of medical, hospital and pharmaceutical expenses associated with the injury or illness, through a combination of reimbursement or white or gold cards.

Following the consultation period, the Bill will be amended, if necessary, and then submitted to Parliament.

Gen Cosgrove said the development of the new military compensation scheme was a significant achievement.

“Its release is an important event for all ADF personnel in that it will establish a more effective and contemporary framework for their compensation arrangements into the future.”

The release of the exposure legislation follows extensive consultation with the ex-service community. Further meetings will be held with Defence and veteran representatives around the nation. Submissions on the draft legislation close on August 31, 2003.

“The Military Rehabilitation and Compensation Bill recognises the unique circumstances of military service in Australia today,” she said.

“I welcome the Opposition parties’ in-principle endorsement of a new scheme and look forward to their support for the passage of this legislation through Parliament.”

The new scheme is planned to start in mid-2004.

• Further information and copies of the draft legislation are available at www.defence.gov.au/dpe/militarycompensation2003

New compensation – how it works

The new scheme introduces a loading of $100 per week when calculating a member’s normal weekly earnings for the purposes of assessing his or her incapacity payments.

This is aimed at reflecting more accurately the ADF’s total remuneration package, which includes a range of salary related and non-salary related benefits.

Under the new scheme, maximum lump sum payments for permanent impairment are significantly increased, while being based on the member’s age.

For example, in the case of a 30-year-old male, or a 35-year-old female, the maximum payment has been increased to $300,000. Alternatively, members may elect to take the lump sum as a fortnightly pension.

It is proposed to offer partners of ADF members who die through a service related injury or illness a choice in benefits.

This choice would be between a tax free lifetime pension three-quarters based on an amount equivalent to the current VEA widow’s/widower’s pension three-quarters or an age-based lump sum payment, the latter being an actuarial equivalent of the pension. In the case of a 25-year-old widow, the lump sum payment would be around $365,000.

Irrespective of whether partners of ADF members choose a pension or a lump sum, they will be entitled to a further lump sum payment of up to $100,000 in the event their spouse dies as a consequence of an injury or illness sustained on warlike service.

For all partners, an additional $60,000 will be paid for each dependant child, plus a payment for each child of $66 per week; their children will also have access to the Veterans’ Children’s Education Scheme.

The new scheme will include a unique safety net arrangement wherein severely injured members who are unable to work may elect to receive the Special Rate Disability Pension prescribed in the VEA, if this is more beneficial to them than incapacity payments under the new scheme.

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