Part 1
//
© 2026 Zoe. All rights reserved.
Zoe is a legal information platform. Always consult the Federal Register of Legislation for authoritative text.
Commonwealth legislation
This regulation sets a clear method for converting lump-sum payments previously paid under the Defence Force Retirement and Compensation Arrangements (DRCA) into a weekly amount used to reduce a Special Rate Disability Pension (SRDP), and preserves certain review instruments made under the old Veterans' Entitlements Act (VEA) by treating them as if made under the MRCA. It affects former DRCA recipients (whose past lump sums will be converted and indexed), the administrators who calculate pension offsets, and holders of pre-existing VEA review instruments.
Want the full deep dive?
Zoe can write the in-depth analysis on top of the summary above: how it works, who it affects and what each part actually does.
Direct links to the current provisions in Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Regulations 2020.
This instrument is the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Regulations 2020.
This instrument is made under the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004.
Note 1: A number of expressions used in this instrument are defined in the Act, including the following:
(a) DRCA;
(b) MRCA;
(c) Simplification Act.
Note 2: Expressions used in this instrument that are defined in the MRCA have the same meanings as they have in that Act. For example:
(a) compensation;
(b) Special Rate Disability Pension.
In this instrument:
Act means the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004.
(1) For the purposes of paragraph 24(3)(b) of the Act, this section sets out the method of converting into a weekly amount the sum of any previous payments of a lump sum to a person under sections 24, 25 and 27 of the DRCA.
Note: Subsection 14(2) of the Act applies regulations made for paragraph 24(3)(b) of the Act (see section 7 of this instrument).
(2) For the purposes of subsection (1), and subject to section 7, the method is: Start formula start fraction Current lump sum amount over Aged based number end fraction end formula where:
aged based number means the person’s life expectancy (in years) worked out using the Australian Life Tables 2015‑17 published by the Australian Government Actuary by reference to:
(a) the person’s age on the day the lump sum amount for the purposes of section 24, 25 or 27 of the DRCA was paid to the person; and
(b) the person’s gender.
Note: The Australian Life Tables 2015‑17 could in 2020 be viewed on the Australian Government Actuary’s website (http://www.aga.gov.au).
current lump sum amount means the amount worked out in accordance with subsection (3).
(3) The current lump sum amount means the amount worked out using the following formula: Start formula Previous lump sum amount times start fraction Maximum amount for the current financial year over Maximum amount for the relevant financial year end fraction end formula where:
maximum amount means the maximum amount specified in subsection 24(9) of the DRCA, as indexed in accordance with section 13 of that Act.
previous lump sum amount means the sum of any amounts previously:
(a) assessed as payable to the person under sections 24, 25 and 27 of the DRCA; and
(b) paid as a lump sum or lump sums.
relevant financial year means the financial year in which an amount of compensation was paid to the person under section 24, 25 or 27 of the DRCA.
(1) For the purposes of subsection 14(2) and paragraph 24(3)(b) of the Act, the weekly amount worked out under section 6 of this instrument is the weekly amount by which the maximum weekly amount of a Special Rate Disability Pension (SRDP) must be reduced in the first financial year in which the SRDP is payable.
Note: Section 203 of the MRCA provides the day from which an SRDP is payable.
(2) In the second and subsequent financial years in which the SRDP is payable, the indexation provisions of section 404 of the MRCA apply to the weekly amount worked out under section 6 of this instrument as if a reference to dollar amount in section 404 of the MRCA were a reference to that weekly amount.
(1) If: (a) before the review pathway commencement day, an instrument was made under, or for the purposes of, subsection 170B(1) of the old VEA; and (b) immediately before the review pathway commencement day, the instrument is in force; the instrument continues to have effect, on and after the review pathway commencement day, as if it had been made under subsection 353P(1) of the MRCA. (2) In this section:
old VEA has the same meaning as in section 25 of the Act.
review pathway commencement day has the same meaning as in section 25 of the Act.
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
This instrument is the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Regulations 2020.
This instrument is made under the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004.
Note 1: A number of expressions used in this instrument are defined in the Act, including the following:
(a) DRCA;
(b) MRCA;
(c) Simplification Act.
Note 2: Expressions used in this instrument that are defined in the MRCA have the same meanings as they have in that Act. For example:
(a) compensation;
(b) Special Rate Disability Pension.
In this instrument:
Act means the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004.
(1) For the purposes of paragraph 24(3)(b) of the Act, this section sets out the method of converting into a weekly amount the sum of any previous payments of a lump sum to a person under sections 24, 25 and 27 of the DRCA.
Note: Subsection 14(2) of the Act applies regulations made for paragraph 24(3)(b) of the Act (see section 7 of this instrument).
(2) For the purposes of subsection (1), and subject to section 7, the method is: where:
aged based number means the person’s life expectancy (in years) worked out using the Australian Life Tables 2015‑17 published by the Australian Government Actuary by reference to:
(a) the person’s age on the day the lump sum amount for the purposes of section 24, 25 or 27 of the DRCA was paid to the person; and
(b) the person’s gender.
Note: The Australian Life Tables 2015‑17 could in 2020 be viewed on the Australian Government Actuary’s website (http://www.aga.gov.au).
current lump sum amount means the amount worked out in accordance with subsection (3).
(3) The current lump sum amount means the amount worked out using the following formula: where:
maximum amount means the maximum amount specified in subsection 24(9) of the DRCA, as indexed in accordance with section 13 of that Act.
previous lump sum amount means the sum of any amounts previously:
(a) assessed as payable to the person under sections 24, 25 and 27 of the DRCA; and
(b) paid as a lump sum or lump sums.
relevant financial year means the financial year in which an amount of compensation was paid to the person under section 24, 25 or 27 of the DRCA.
(1) For the purposes of subsection 14(2) and paragraph 24(3)(b) of the Act, the weekly amount worked out under section 6 of this instrument is the weekly amount by which the maximum weekly amount of a Special Rate Disability Pension (SRDP) must be reduced in the first financial year in which the SRDP is payable.
Note: Section 203 of the MRCA provides the day from which an SRDP is payable.
(2) In the second and subsequent financial years in which the SRDP is payable, the indexation provisions of section 404 of the MRCA apply to the weekly amount worked out under section 6 of this instrument as if a reference to dollar amount in section 404 of the MRCA were a reference to that weekly amount.
(1) If: (a) before the review pathway commencement day, an instrument was made under, or for the purposes of, subsection 170B(1) of the old VEA; and (b) immediately before the review pathway commencement day, the instrument is in force; the instrument continues to have effect, on and after the review pathway commencement day, as if it had been made under subsection 353P(1) of the MRCA. (2) In this section:
old VEA has the same meaning as in section 25 of the Act.
review pathway commencement day has the same meaning as in section 25 of the Act.