McCauley and Repatriation Commission (Veterans' entitlements)

This matter concerned an appeal by Mr McCauley against a decision of the Repatriation Commission concerning his eligibility for an Intermediate Rate pension under the *Veterans' Entitlements Act 1986* (Cth). Mr McCauley, a former Warrant Officer in the Royal Australian Air Force, had a lengthy service career and several accepted service-related conditions, including tinnitus, hearing loss, skin cancer, and degenerative conditions of his spine and knee. He was medically discharged due to his psychological and physical conditions and had not worked since. The Tribunal noted that it was not in dispute that Mr McCauley was not entitled to either the Special Rate of pension or a Temporary payment at the special rate.

The primary legal issue before the Tribunal was whether Mr McCauley met the criteria for an Intermediate Rate pension. This required determining if his accepted service-related conditions rendered him permanently incapacitated for work, and if so, whether that incapacity was of such a degree that he was unable to earn a livelihood by way of **any** suitable employment. The Tribunal also considered the applicant's vocational rehabilitation efforts and his expressed views on his future employment prospects.

The Tribunal reasoned that to qualify for an Intermediate Rate pension, an applicant must demonstrate permanent incapacity for work. While Mr McCauley had been medically discharged and expressed concerns about his ability to return to work due to pain and psychological symptoms, the Tribunal found that the evidence did not establish that he was permanently incapacitated for work to the requisite degree. His withdrawal from a Certificate IV course and subsequent uncertainty about vocational options, coupled with his qualifications in areas such as Work Health and Safety and Leadership and Management, suggested that suitable employment might still be available. The Tribunal concluded that the evidence did not support a finding of permanent incapacity for any suitable employment, a necessary threshold for the Intermediate Rate pension.

Consequently, the Tribunal affirmed the Reviewable Decision, finding that Mr McCauley did not meet the criteria for an Intermediate Rate pension.