COMPO CHANGES
Minister Vale said the Bill will remain an exposure draft until the end of August to allow members and their families, together with the veteran community, time to consider the Bill and comment on it.
Members no longer subjected to a scheme designed for civilians

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

On June 27, Minister Assisting the Minister for Defence, Danna Vale, released 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," Mrs Vale 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," the Minister said.

Stated briefly, 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.

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, this year.

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

CDF 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.

“It shows how seriously the Government and I, as Chief of the Defence Force, take our duty of care obligations to you as members of the ADF, and to your families, in the event of injury, illness or death while serving your nation.”
"The Military Rehabilitation and Compensation Bill recognises the unique circumstances of military service in Australia today," Mrs Vale said.

"With this legislation we, will establish a modern scheme to meet the needs of future generations of veterans and their families.

Small teams of people who have been closely involved in developing the Bill will visit major bases and establishments during July to make presentations to commanders and members.

"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 Minister said

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.

How the new scheme 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 - based on an amount equivalent to the current VEA widow’s/widower’s pension - 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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