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Part 3: Payment of financial entitlements on death

11.3.1 Purpose

This Part sets out financial benefits that may be provided on the death of a member. They include payments for leave not taken, bereavement payments and reimbursement for financial or legal advice.

11.3.2 Entitlement for leave and other compensation

  1. This section applies if a member dies. This includes a member of the Reserves. For paragraph 2.d.

  2. Note: In the total workforce model, this includes a member in any Service category, except Service category 1.

  3. The CDF must authorise a payment to a person under section 1.6.4. The payment must be the total of what the member would have been entitled to if they had left the ADF without dying. The total is made up of amounts for these entitlements.

    See: Chapter 1 Part 6 section 1.6.4, Payments of amounts on death of a member

    1. Recreation leave.

      See: Chapter 5 Part 4

    2. Long service leave.

      See: Chapter 5 Part 5

    3. War service leave.

      See: Chapter 5 Part 8

    4. Compensation for loss or damage to clothing or personal effects.

      See: Chapter 10 Part 4

  4. This table sets out where related information about death and disability can be found.

    Related information
    Item Information Description
    1. Section 1.3.60, definition of Presumed date of death
    See:Chapter 1 Part 3 Division 1
    Provides for circumstances where the CDF must direct that, for Chapters 1 to 17, a member's death is presumed to have occurred on a specified date
    2. Section 1.6.3, Payment of amount to person under legal disability
    See: Chapter 1 Part 6
    Provides for payment of amounts to persons who are under a legal disability.
    Example: A deceased member's dependent children.
    3. Section 1.6.4, Payment of amounts on death of a member See: Chapter 1 Part 6 Sets out the standard procedures for payment of amounts following a member's death
    4. Other entitlements There may be other entitlements on the death of a member.
    Example: Superannuation, removals and payments of outstanding salary and allowances.

11.3.3 Bereavement payment

  1. This table defines terms used in this section.

  2. Definitions
    Term Definition in this section
    Dependent person A person who was financially dependent on the deceased member during the relevant pay period.
    Gross fortnightly pay Either of these amounts.
    1. The total of the fortnightly instalments of salary and allowances the member would have been entitled to for the relevant pay period. This includes what they would have had to pay for any of these.
      1. Income tax.
      2. Superannuation.
      3. A debt due to the Commonwealth.
    2. The average amount of gross fortnightly pay that the member was entitled to for each completed pay period in the last three months of service. This amount is used only if it is greater than the amount under paragraph a.
    Relevant pay period The fortnight that ends on the day immediately before the day the member died.
  3. This section applies to a member who dies, if they were meeting both these conditions when they died.

    1. They were on continuous full-time service during all or part of the relevant pay period.

    2. Salary was payable for that period.

  4. If there is a dependent person, the CDF must authorise payment under Chapter 1 Part 6 section 1.6.4 to them. The payment is four times the member's gross fortnightly pay.

  5. Payment must be made in four equal fortnightly instalments. The payments begin on the first day of the pay period immediately after the member's death.

  6. No payment will be made if there is no dependent person.

11.3.4 Payment for financial or legal advice

  1. This payment assists persons with legal or financial responsibility upon a member's death to carry out their duties. It is intended to assist the person to make sound and rational decisions associated with their role.

  2. This section applies to a person who meets both of the following conditions.

    1. They must be a member of the family as defined under section 58A of Defence Act 1903.

      See: Defence Act 1903 section 58A, Interpretation

    2. They hold any of the following roles.

      1. An executor of the deceased member's will.

      2. A beneficiary of the deceased member's estate.

      3. A legal personal representative of the beneficiary of the deceased member's estate.

  3. The person may be eligible for a payment under this section if all of the following have been met.

    1. The CDF forms a belief that the person would have difficulty making decisions required of them, but that this is unlikely to result in the appointment of another person to make the decision on their behalf.

    2. The CDF believes the difficulty is caused by either of the following.

      1. A lack of demonstrated adult cognitive maturity.

      2. Another cognitive or functional impairment.

        Note: The CDF may rely on various formal and informal sources in forming his belief.

    3. The CDF decides that based on his belief, the person needs the support to carry out their role in making sound and rational decisions on financial or legal matters.

  4. The person may be reimbursed up to $2,000 for each of the following costs.

    1. Financial advice obtained from a financial advisor who holds a current Australian financial services licence.

    2. Legal advice obtained from a legal practitioner.

      Exception: The payment is not for legal or court costs or for obtaining legal advice relating to disputes.

      Example of exception: Disputes over access to children, testament or will disputes, rental property disputes, or disputes between beneficiaries.

Persons who can make the decision under subsection 11.3.4.3 on behalf of the CDF:
Director General Defence Community Organisation

Application to Reservists: Yes.



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