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Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004
115DReduced daily pension amount—pensions under Parts II and IV
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#### 115D Reduced daily pension amount—pensions under Parts II and IV
Application and overview of this section
(1) This section applies to a veteran who is engaged in remunerative work of more than 8 hours per week as a result of undertaking a vocational rehabilitation program under the Veterans’ Vocational Rehabilitation Program. The section sets out how to work out the veteran’s reduced daily pension amount. This amount is used to work out the rate of pension payable under sections 23 and 24.
> Note: This section does not apply to certain veterans (see subsections (5) and (6)).
Reduced daily pension amount during the initial period
(2) A veteran’s reduced daily pension amount for a pension period that occurs within the initial period is worked out using the following formula:

> Note 1: Expressions used in this subsection are defined in subsection (7).
> Note 2: The Commission can increase a reduced daily pension amount under section 115F.
Reduced daily pension amount during the second period
(3) A veteran’s reduced daily pension amount for a pension period that occurs within the second period is worked out using the following formula:

> Note 1: Expressions used in this subsection are defined in subsection (7).
> Note 2: The Commission can increase a reduced daily pension amount under section 115F.
Reduced daily pension amount 5 years after the initial period
(4) A veteran’s reduced daily pension amount for a pension period that occurs more than 5 years after the end of the initial period is nil.
> Note: The Commission can increase a reduced daily pension amount under section 115F.
Veteran who is unemployed for at least 2 weeks
(5) This section does not apply to a veteran who is unemployed for a continuous period of at least 2 weeks in respect of the pension periods within that 2 week period.
Veteran who is blinded in both eyes
(6) This section does not apply to a veteran for a pension period if the veteran is receiving a pension for the period at the special rate because of subsection 24(3).
Definitions
(7) In this section:
> CPI amount means the amount worked out using the following formula:
> 
> daily above general rate for a veteran means the rate worked out using the following formula:
> 
> initial period for a veteran means the period:
(a) that begins on the day after the day the veteran first commenced remunerative work as a result of undertaking a vocational rehabilitation program; and
(b) that ends immediately before the first CPI indexation day that occurs more than 2 years after that day.
> pension rate on commencement for a veteran means the rate of pension under this Act that was payable to the veteran on the day on which the veteran commenced his or her vocational rehabilitation program.
> second period means the period:
(a) that begins immediately after the initial period; and
(b) runs for 5 years.
> taper amount for a veteran means:
(a) if the veteran’s average weekly hours are 40 hours or more—nil; and
(b) otherwise—the amount worked out using the following formula:

39B Subsection 115E(1)
Omit “the application of the pension reduction amount to the rate”, substitute “the application of section 115D in respect of the rate”.
Note: The heading to section 115E is replaced by the heading “Application for increase in reduced daily pension amount”.
39C Subsection 115E(2)
Omit “to have the pension reduction amount reduced”, substitute “to have the reduced daily pension amount under section 115D increased”.
39D Subsection 115F(2)
Repeal the subsection, substitute:
(2) If this section applies, the Commission may increase in writing the veteran’s reduced daily pension amount under section 115D, for a past, present or future pension period, to the amount that the Commission is satisfied results in the work and pension income rate being equal to the unaffected pension rate.
40 At the end of subsection 116A(1)
Add “However, the persons must be the children of veterans who render service before the MRCA commencement date.”.
41 Paragraph 118R(a)
After “Social Security Act”, insert “or the MRCA”.
42 After subparagraphs 118S(2)(d)(i) and (4)(c)(i)
Insert:
(ia) the MRCA; or
43 Subsection 120(7)
Repeal the subsection, substitute:
(7) In this section:
> hazardous service means service in the Defence Force, before the MRCA commencement date, that is of a kind determined in writing by the Minister administering section 1 of the Defence Act 1903 to be hazardous service for the purposes of this section.
44 Saving determinations of hazardous service
A determination in force under subsection 120(7) of the VEA immediately before the commencement of item 43 of this Schedule continues in force after that time despite the amendment made by that item.
45 After point SCH6‑C4
Insert:
No rent assistance if person receiving a Special Rate Disability Pension
SCH6‑C4A No additional amount is to be added to a person’s maximum basic rate under point SCH6‑C3 if the person chooses to receive a Special Rate Disability Pension under section 200 of the MRCA.
46 Paragraph SCH6‑C7(c)
Omit “a disability pension”, substitute “either or both a disability pension and permanent impairment compensation”.
47 At the end of point SCH6‑C7
Add:
> Note 1: For disability pension see section 5Q.
> Note 2: For permanent impairment compensation see point SCH6‑C16.
48 Point SCH6‑C12
Omit “disability pension”, substitute “either or both a disability pension and permanent impairment compensation”.
49 Point SCH6‑C12 (note)
Omit “Note”, substitute “Note 1”.
50 At the end of point SCH6‑C12
Add:
> Note 2: For permanent impairment compensation see point SCH6‑C16.
51 Point SCH6‑C13
After “disability pension” (first occurring), insert “and permanent impairment compensation”.
Note: The heading to point SCH6‑C13 is altered by inserting “and permanent impairment compensation” after “disability pension”.
52 Point SCH6‑C13 (step 1 of the method statement)
After “disability pension” (first occurring), insert “and permanent impairment compensation”.
53 Point SCH6‑C13 (step 1 of the method statement)
Omit “disability pension income”, substitute “disability income”.
54 Point SCH6‑C13 (step 1 of the method statement, after note 1)
Insert:
> Note 1A: For permanent impairment compensation see point SCH6‑C16.
55 Point SCH6‑C13 (step 1 of the method statement, note 2)
After “disability pension”, insert “and permanent impairment compensation”.
56 Point SCH6‑C13 (step 3 of the method statement)
Omit “disability pension income”, substitute “disability income”.
57 Point SCH6‑C13 (step 4 of the method statement)
Omit “disability pension income”, substitute “disability income”.
58 Point SCH6‑C13 (step 5 of the method statement)
Omit “disability pension income” (first and second occurring), substitute “disability income”.
59 Point SCH6‑C13 (step 5 of the method statement)
Omit “disability pension income excess”, substitute “disability income excess”.
60 Point SCH6‑C13 (step 6 of the method statement)
Omit “disability pension income excess”, substitute “disability income excess”.
61 Point SCH6‑C14
Omit “disability pension” (first occurring), substitute “either or both a disability pension and permanent impairment compensation”.
Note: The heading to point SCH6‑C14 is altered by adding at the end “and permanent impairment compensation”.
62 Point SCH6‑C14
After “disability pension” (second occurring), insert “and permanent impairment compensation”.
63 Point SCH6‑C14
Omit “disability pension income”, substitute “disability income”.
64 Point SCH6‑C14 (note)
Omit “Note”, substitute “Note 1”.
65 At the end of point SCH6‑C14
Add:
> Note 2: For permanent impairment compensation see point SCH6‑C16.
66 At the end of Module C in Schedule 6
Add:
SCH6‑C16 In this Module:
> permanent impairment compensation means:
(a) any payment of a weekly amount under section 68, 71 or 75 of the MRCA (permanent impairment); and
(b) if the person was paid a lump sum under section 68, 71 or 75 of the MRCA (permanent impairment)—any weekly amounts that the person would have been paid if the person had not chosen the lump sum.
Part 2—Amendments relating to income support supplement
67 Section 5 (index of definitions)
Insert in its appropriate alphabetical position, determined on a letter‑by‑letter basis:
| wholly dependent partner | 5E(1) |
| ------------------------ | ----- |
68 Subsection 5E(1) (definition of war widow)
Repeal the definition, substitute:
> war widow means a woman:
(a) who was the partner of, was legally married to, or was the wholly dependent partner of:
(i) a veteran; or
(ii) a person who was a member of the Forces for the purposes of Part II or IV of this Act; or
(iii) a person who was a member (within the meaning of the MRCA);
immediately before the death of the veteran or person; and
(b) who:
(i) is receiving a pension payable under Part II or IV of this Act at a rate determined under or by reference to subsection 30(1); or
(ii) has received a lump sum mentioned in paragraph 234(1)(b) of the MRCA, or is receiving a weekly amount mentioned in that paragraph; or
(iii) is receiving a pension that is payable under the law of a foreign country, and that is, in the opinion of the Commission, similar in character to a pension referred to in subparagraph (i).
69 Subsection 5E(1) (definition of war widower)
Repeal the definition, substitute:
> war widower means a man:
(a) who was the partner of, was legally married to, or was the wholly dependent partner of:
(i) a veteran; or
(ii) a person who was a member of the Forces for the purposes of Part II or IV of this Act; or
(iii) a person who was a member (within the meaning of the MRCA);
immediately before the death of the veteran or person; and
(b) who:
(i) is receiving a pension payable under Part II or IV of this Act at a rate determined under or by reference to subsection 30(1); or
(ii) has received a lump sum mentioned in paragraph 234(1)(b) of the MRCA, or is receiving a weekly amount mentioned in that paragraph; or
(iii) is receiving a pension that is payable under the law of a foreign country, and that is, in the opinion of the Commission, similar in character to a pension referred to in subparagraph (i).
70 Subsection 5E(1)
Insert:
> wholly dependent partner has the meaning given by the MRCA.
71 Subsection 5H(1) (after paragraph (c) of the definition of adjusted income)
Insert:
(ca) if the person was paid a lump sum mentioned in subparagraph 234(1)(b)(i) of the MRCA (wholly dependent partner payment)—any weekly amounts that the person would have been paid if the person had chosen the weekly amount mentioned in subparagraph 234(1)(b)(ii) of that Act; and
(cb) any payment of a weekly amount mentioned in subparagraph 234(1)(b)(ii) of the MRCA (wholly dependent partner payment); and
(cc) if the person was paid a lump sum under section 68, 71 or 75 of the MRCA (permanent impairment)—any weekly amounts that the person would have been paid if the person had not chosen the lump sum; and
(cd) any payment of a weekly amount under section 68, 71 or 75 of the MRCA (permanent impairment); and
(ce) any payment of a Special Rate Disability Pension under Part 6 of Chapter 4 of the MRCA; and
72 Subsection 5Q(1) (definition of War widow/war widower—pensioner)
Repeal the definition, substitute:
> war widow/war widower—pensioner means:
(a) a person who is receiving a pension under Part II or IV of this Act at a rate determined under or by reference to subsection 30(1); or
(b) a person who has received a lump sum mentioned in paragraph 234(1)(b) of the MRCA, or who is receiving a weekly amount mentioned in that paragraph.
73 Paragraph 45B(1)(c)
Omit “or a social security benefit”, substitute “, a social security benefit or another income support supplement”.
74 After subsection 45D(1)
Insert:
(1A) Income support supplement is not payable to a person if the person is already receiving an income support supplement.
75 At the end of subsection 45N(1)
Add:
; and (d) a war widower or war widow who, immediately before receiving a lump sum mentioned in paragraph 234(1)(b) of the MRCA, or a weekly amount mentioned in that paragraph, was receiving a partner service pension.
76 Paragraph 45R(2)(a)
Repeal the paragraph, substitute:
(a) any of the following applies:
(i) a pension is payable to a person under Part II or IV at a rate determined under or by reference to subsection 30(1) from a particular day (the benefit day); or
(ii) a lump sum mentioned in subparagraph 234(1)(b)(i) of the MRCA is payable to a person, in respect of the death of a deceased member on a particular day (the benefit day); or
(iii) a weekly amount mentioned in subparagraph 234(1)(b)(ii) of the MRCA is payable to a person from a particular day (the benefit day); and
77 Paragraphs 45R(2)(b) and (c)
Omit “pension receipt day”, substitute “benefit day”.
78 Paragraph 45R(2)(d)
Omit “pension receipt day” (wherever occurring), substitute “benefit day”.
79 Subsection 45R(2)
Omit “pension receipt day” (last occurring), substitute “benefit day”.
80 At the end of paragraph 45TB(3)(a)
Add:
(iii) if, after reaching the qualifying age, the person became entitled to be paid a lump sum or a weekly amount mentioned in paragraph 234(1)(b) of the MRCA—the date of the death of the member in respect of whom the lump sum or weekly amount was payable;
81 At the end of section 45TB
Add:
2 or more special dates of eligibility
(5) For the purposes of this section, if a person would otherwise have 2 or more special dates of eligibility for a designated pension, only the first date is to be counted.
82 Subsection 53M(5)
After “paragraph (c)”, insert “, (ca) or (cb)”.
Part 3—Amendments relating to the Statements of Principles
83 At the end of subsection 196B(1)
Add “The main function of the Authority is to determine Statements of Principles for the purposes of this Act and the MRCA.”.
84 After paragraph 196B(2)(c)
Insert:
or (ca) warlike or non‑warlike service rendered by members;
85 Subsection 196B(2) (note 2)
Omit “see subsection 5Q(1A)”, substitute “referred to in paragraphs (2)(b) and (c), see subsection 5Q(1A)”.
86 Subsection 196B(2) (after note 2)
Insert:
> Note 2A: For warlike service, non‑warlike service and members referred to in paragraph (2)(ca), see section 196KA. (These definitions are for the purposes of the MRCA.)
87 After paragraph 196B(3)(b)
Insert:
or (ba) peacetime service rendered by members;
88 Subsection 196B(3) (note 2)
Omit “see subsection 5Q(1A)”, substitute “referred to in paragraph (3)(b), see subsection 5Q(1A)”.
89 Subsection 196B(3) (after note 2)
Insert:
> Note 2A: For peacetime service and members referred to in paragraph (3)(ba), see section 196KA. (These definitions are for the purposes of the MRCA.)
90 After subsection 196B(3)
Insert:
(3A) The Authority may determine a Statement of Principles under subsection (2) or (3) for the purposes of this Act, the MRCA, or both Acts.
91 Paragraph 196B(4)(b)
After “this Act”, insert “, or the MRCA,”.
92 Paragraph 196B(4)(c)
After “suffered”, insert “or sustained”.
93 Paragraph 196B(4)(d)
Repeal the paragraph, substitute:
(d) the extent (if any) to which:
(i) the injury, disease or death may be war‑caused or defence‑caused; or
(ii) the injury, disease or death may be a service injury, a service disease or a service death.
94 At the end of subsection 196B(4)
Add:
> Note 3: For service injury, service disease and service death see section 196KA. (These definitions are for the purposes of the MRCA.)
95 Paragraph 196B(7)(d)
After “suffered”, insert “or sustained”.
96 Paragraph 196B(7)(e)
Repeal the paragraph, substitute:
(e) the extent (if any) to which:
(i) the injury, disease or death may be war‑caused or defence‑caused; or
(ii) the injury, disease or death may be a service injury, a service disease or a service death.
97 At the end of subsection 196B(7)
Add:
> Note 1: For war‑caused see sections 8 and 9.
> Note 2: For defence‑caused see section 69.
> Note 3: For service injury, service disease and service death see section 196KA. (These definitions are for the purposes of the MRCA.)
98 Subsection 196B(11) (note)
Omit “Note”, substitute “Note 1”.
99 At the end of subsection 196B(11)
Add:
> Note 2: The Statement of Principles may be determined for the purposes of this Act, the MRCA, or both Acts, in accordance with the directions of the Council (see subsection 196W(4A)).
100 Subsection 196B(12) (note)
Omit “Note”, substitute “Note 1”.
101 At the end of subsection 196B(12)
Add:
> Note 2: The Statement of Principles may be determined for the purposes of this Act, the MRCA, or both Acts, in accordance with the directions of the Council (see subsection 196W(4A)).
102 After paragraph 196E(1)(a)
Insert:
(aa) the Military Rehabilitation and Compensation Commission;
103 At the end of paragraph 196E(1)(b)
Add “of this Act”.
104 After paragraph 196E(1)(b)
Insert:
(ba) a person eligible to make a claim for compensation under section 319 of the MRCA;
105 Paragraph 196E(1)(c)
After “members of Peacekeeping Forces”, insert “, or members within the meaning of the MRCA,”.
106 Subsection 196F(1)
Omit “any person referred to in paragraph 196E(1)(a) or (b) or organisation referred to in paragraph 196E(1)(c)”, substitute “any person or organisation referred to in any of paragraphs 196E(1)(a) to (c)”.
107 Subsection 196F(3)
After “the Commission” (first occurring), insert “, the Military Rehabilitation and Compensation Commission”.
108 Subsection 196F(3)
Omit “the Commission” (second occurring), substitute “the relevant Commission”.
109 Subsection 196I(1)
Omit “a person referred to in paragraph 196E(1)(a) or (b), or an organisation referred to in paragraph 196E(1)(c),”, substitute “any person or organisation referred to in any of paragraphs 196E(1)(a) to (c)”.
110 Subsection 196J(1)
After “the Commission”, insert “or the Military Rehabilitation and Compensation Commission (as the case requires)”.
111 At the end of Division 1 of Part XIA
Add: