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Military Rehabilitation and Compensation Act 2004
117Simplified outline of this Part
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117 Simplified outline of this Part
This Part provides for compensation to be provided for former members who are incapacitated for work as a result of a service injury or disease. The Commission must have accepted liability for the injury or disease, and a claim must have been made in respect of the former member, to be entitled to the compensation.
The amount of compensation a person receives for a week depends on the difference between the person’s normal and actual earnings for the week. The person’s normal earnings are a notional amount. The person’s actual earnings are based on how much the person actually earns for the week.
Normal earnings are worked out under Divisions 3 to 8.
Division 3 applies to a person who left the Defence Force as a Permanent Forces member. Division 4 applies to a person who left the Defence Force as a continuous full‑time Reservist.
Divisions 5 to 8 apply to a person who left the Defence Force as a part‑time Reservist. The Division that applies depends on the person’s status (for example, as a Permanent Forces member or a Reservist) when the service injury or disease occurred and on leaving the Defence Force.
Division 9 applies to a person who was a cadet or declared member.
Part 5 of this Chapter contains other important rules that apply in working out normal earnings, actual earnings and the amount of compensation generally.
118 Compensation for incapacitated former members
(a) the person is a former member; and
(c) the service injury or disease results in the person’s incapacity for work for the week; and
(b) section 119 (aggravations etc.);
(c) sections 120 and 121 (persons who are the age that is 2 years before pension age or older);
(d) section 122 (imprisonment of persons);
(e) section 138 (small amounts of compensation);
(f) section 196 (compensation for part weeks).
(2) The amount of compensation that the Commonwealth is liable to pay is:
(a) if a person has chosen to receive a Special Rate Disability Pension under Part 6—the amount worked out under Part 6; or
(b) otherwise—the amount worked out under Division 2 of this Part.
Note: The Commonwealth is not liable to pay compensation if the amount worked out under Division 2 is nil or a negative amount.