More compo
New scheme from July 1

THE ADF has one of the most comprehensive and generous compensation schemes in Australia following the introduction of the new Military Rehabilitation and Compensation Scheme (MRCS) today (July 1), according to Head DPE RAdm Brian Adams.

The new scheme provides treatment, rehabilitation and increased compensation for permanent and reserve ADF members, cadets, cadet officers and instructors who suffer mental or physical injury, or contract a disease as a result of their service after June 30.

The MRCS also provides increased compensation to families of those who are killed as a result of their service.

RAdm Adams said the introduction of the new MRCS signalled the most comprehensive change in military compensation in nearly two decades.

“It is the first single compensation scheme in the ADF’s history to specifically deal with the special nature of military service in all it’s forms – warlike, non-warlike and peacetime,” he said.

“The MRCS brings together the best of existing compensation schemes, the Veterans’ Entitlements Act and the Safety, Rehabilitation and Compensation Act.

“The new scheme has no impact on benefits already being received under the previous compensation schemes.

“The MRCS also introduces a focus on providing rehabilitation services to help injured or ill members make as full a recovery as possible and, where possible, return to their normal duties.”

Consultation has been a key focus in developing the new scheme, with the Defence and veteran communities providing input to the draft legislation.

A number of changes to the scheme were made as a result of their input.

The new scheme will be administered by the Department of Veterans’ Affairs (DVA) and overseen by an independent Military Rehabilitation and Compensation Commission, comprising members of the existing Repatriation Commission, a representative from Defence and a representative from the Department of Employment and Workplace Relations.

Under the MRCS, payments for the severely injured, such as those who are severely disabled or psychologically impaired, have increased, regardless of the nature of the service that caused the impairment.

The lump sum available for permanent impairment for the most severely injured or ill has increased from $241,556 to about $316,400.

Discharged members who are assessed as unable to work due to their service-related condition will receive incapacity payments based on their ADF salary and allowances, indexed to ADF pay rates.

This will be boosted by $107.69 per week to compensate for the loss of other ADF benefits such as subsidised housing and free health care.

The new MRCS also extends the time allowed for members and their families to choose between a lump sum or a pension from three months to six months, and provides reimbursement of up to $1265 for the cost of obtaining financial advice to assist them with their decision.

The DVA can provide ADF members with information about their rehabilitation and compensation options.

To find out more about the new MRCS visit www.mrcs.gov.au or call the MRCS infoline on 1300 550 461.

New scenarios explained

Example 1 A 30-year-old male ADF member who becomes a quadriplegic following a service-related accident will have the choice of the maximum lump-sum of about $316,400 compared to $241,556 under existing arrangements. They will also receive a lump-sum payment for each dependent child of $63,283, up from $60,389, free medical care for all conditions (regardless of whether they are service-related), assistance with the cost of household and attendant care, vehicle modifications, telephone allowance and pharmaceutical allowance.

Example 2 A 25-year-old widow of an ADF member killed on peacekeeping duties classified as warlike service, with two children, will have a choice of lump sum benefits totalling about $580,000 compared to $362,234 under existing arrangements. She also will receive free health care for herself and her dependent children, military superannuation benefits, an allowance of $69.61 per week for each dependent child, up from $66.99, telephone allowance and a funeral benefit of up to $4851, up from $4640.