Compo
Fix
Greatest
change in almost 2 decades
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) on July 1, according
to the Defence Personnel Executive.
The new scheme provides treatment, rehabilitation and increased
compensation for permanent and reserve 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.
The Head of DPE, Rear Admiral Brian 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 its forms – warlike, non-warlike and peacetime,” RADM Adams
said.
“The MRCS brings together the best of existing compensation schemes,
the Veterans’ Entitlements Act and the Safety, Rehabilitation
and Compensation Act.
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Example
1
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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 around $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 servicerelated),
assistance with the cost of household and attendant care,
vehicle modifications, telephone allowance and pharmaceutical
allowance.
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“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.”
Under the MRCS, payments for the severely injured, such as those
who are severely disabled or mentally 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 around $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.
Consultation has been a key focus in developing the new scheme,
with the Defence and veteran communities providing input to the
draft legislation.
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Example
2
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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 around
$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.
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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 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.
The Department of Veterans’ Affairs can provide ADF members with
information about their rehabilitation and compensation options.
Visit www.mrcs.gov.au or
call the MRCS infoline on 1300 550 461.
