Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004 (Cth)

Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004

No. 52 of 2004

Compilation No. 8

Compilation date: 21 April 2025

Includes amendments: Act No. 17, 2025

About this compilation

This compilation

This is a compilation of the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004 that shows the text of the law as amended and in force on 21 April 2025 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register ( The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Editorial changes

For more information about any editorial changes made in this compilation, see the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.

Self‑repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

Contents

An Act to amend laws, and to deal with transitional matters, in connection with the Military Rehabilitation and Compensation Act 2004, and for other purposes

Part 1Introduction1Short title

This Act may be cited as the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004.

2Commencement

(1)
Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

Commencement information
Column 1	Column 2	Column 3
Provision(s)	Commencement	Date/Details
1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table	The day on which this Act receives the Royal Assent.	27 April 2004
2. Sections 4 to 24	At the same time as section 3 of the MRCA commences.	1 July 2004
3. Schedules 1 and 2	At the same time as section 3 of the MRCA commences.	1 July 2004
4. Schedule 3, items 1 to 7	At the same time as section 3 of the MRCA commences.	1 July 2004
5. Schedule 3, items 7A and 7B	The later of: (a) the time when section 3 of the MRCA commences; and (b) the time when the Age Discrimination Act 2004 commences.	1 July 2004 (paragraph (a) applies)
6. Schedule 3, items 8 to 105	At the same time as section 3 of the MRCA commences.	1 July 2004
7. Schedule 4	At the same time as section 3 of the MRCA commences.	1 July 2004

Note: This table relates only to the provisions of this Act as originally passed by the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.
(2)
Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act.

3Schedule(s)

Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

4Definitions

(1)
In this Act:
commencement date means the date on which section 3 of the Military Rehabilitation and Compensation Act 2004 commences.
DRCA means the Safety, Rehabilitation and Compensation (Defence‑related Claims) Act 1988.
MRCA means the Military Rehabilitation and Compensation Act 2004.
old injury or disease has the meaning given by section 13.
relates to defence service has the meaning given by section 5.
Simplification Act means the Veterans’ Entitlements, Treatment and Support (Simplification and Harmonisation) Act 2025.
SRCA means the Safety, Rehabilitation and Compensation Act 1988.
VEA means the Veterans’ Entitlements Act 1986.
(2)
Expressions used in this Act that are defined in the MRCA have the same meanings as they have in that Act.

5Definition of relates to defence service

Definition of relates to defence service for injuries, diseases and deaths
(1)
For the purposes of this Act, an injury, disease or death relates to defence service rendered by a person if:
(a)
it resulted from an occurrence that happened while the person was rendering that service; or
(b)
it arose out of, or was attributable to, that service; or
(c)
it resulted from an accident that occurred while the person was travelling, while rendering that service but otherwise than in the course of duty, on a journey:
(i)
to a place for the purpose of performing duty; or
(ii)
away from a place of duty upon having ceased to perform duty; or
(d)
in the case of an injury—it resulted from an accident that would not have occurred:
(i)
but for the rendering of that service by the person; or
(ii)
but for changes in the person’s environment consequent upon his or her having rendered that service; or
(e)
in the case of a disease—it would not have occurred:
(i)
but for the rendering of that service by the person; or
(ii)
but for changes in the person’s environment consequent upon his or her having rendered that service; or
(f)
in the case of a death of a person—it was due to an accident that would not have occurred, or to a disease that would not have been contracted:
(i)
but for the rendering of that service by the person; or
(ii)
but for changes in the person’s environment consequent upon his or her having rendered that service.
Definition of relates to defence service for aggravations and material contributions
(2)
For the purposes of this Act, an aggravation of, or a material contribution to, an injury or disease, or a sign or symptom of an injury or disease, relates to defence service rendered by a person if:
(a)
it resulted from an occurrence that happened while the person was rendering that service; or
(b)
it arose out of, or was attributable to, that service; or
(c)
it resulted from an accident that occurred while the person was travelling, while rendering that service but otherwise than in the course of duty, on a journey:
(i)
to a place for the purpose of performing duty; or
(ii)
away from a place of duty upon having ceased to perform duty; or
(d)
in the case of an aggravation of, or a material contribution to, an injury, or a sign or symptom of an injury—it resulted from an accident that would not have occurred:
(i)
but for the rendering of that service by the person; or
(ii)
but for changes in the person’s environment consequent upon his or her having rendered that service; or
(e)
in the case of an aggravation of, or a material contribution to, a disease, or a sign or symptom of a disease—it would not have occurred:
(i)
but for the rendering of that service by the person; or
(ii)
but for changes in the person’s environment consequent upon his or her having rendered that service.

6Defence service relating to duties before the commencement date

To avoid doubt, defence service may be rendered on or after the commencement date even if the service relates to the performance of a duty that ended before that date.
Example: A member finishes duty just before the commencement date and is injured in an accident while travelling home just after the commencement date. The member is covered by the MRCA.

Part 2Application of the MRCA to certain injuries, diseases, deaths, losses and damage7Application of the MRCA to certain injuries, diseases and deaths

(1)
The MRCA applies to a person’s injury, disease or death if:
(a)
the injury is sustained, the disease is contracted, or the death occurs, on or after the commencement date; and
(b)
the injury, disease or death either:
(i)
relates to defence service rendered by the person on or after that date; or
(ii)
relates to defence service rendered by the person before, and on or after, that date.
(2)
The MRCA applies to an aggravation of, or a material contribution to, a person’s injury or disease, or a sign or symptom of a person’s injury or disease, if:
(a)
the aggravation or material contribution occurs on or after the commencement date (even if the original injury is sustained, or the original disease is contracted, before that date); and
(b)
the aggravation or material contribution either:
(i)
relates to defence service rendered by the person on or after that date; or
(ii)
relates to defence service rendered by the person before, and on or after, that date.
(2A)
Subsection (2) is subject to section 9.
Note: Section 9 sets out when the MRCA does not apply to aggravations of, or material contributions to, VEA injuries and diseases.
(3)
To avoid doubt, defence service is rendered before, and on or after, the commencement date whether the service spans the commencement date or is rendered during separate periods before and on or after that date.

8Application of the MRCA to injuries, diseases and deaths etc. caused by certain treatment

(1)
The MRCA applies to an injury, disease or death if:
(a)
the injury is sustained, the disease is contracted, or the death occurs, on or after the commencement date; and
(b)
the injury, disease or death occurs as an unintended consequence of treatment of a kind mentioned in section 29 of the MRCA; and
(c)
the treatment is provided either:
(i)
on or after the commencement date; or
(ii)
before, and on or after, the commencement date.
(2)
The MRCA applies to an aggravation of, or a material contribution to, an injury or disease, or a sign or symptom of an injury or disease, if:
(a)
the aggravation or material contribution occurs on or after the commencement date (even if the original injury is sustained, or the original disease is contracted, before that date); and
(b)
the aggravation or material contribution occurs as an unintended consequence of treatment of a kind mentioned in section 29 of the MRCA; and
(c)
the treatment is provided either:
(i)
on or after the commencement date; or
(ii)
before, and on or after, the commencement date.
(2A)
Subsection (2) is subject to section 9.
Note: Section 9 sets out when the MRCA does not apply to aggravations of, or material contributions to, VEA injuries and diseases.
(3)
To avoid doubt, treatment is provided before, and on or after, the commencement date whether the treatment spans the commencement date or is provided during separate periods before and on or after that date.

9MRCA does not apply to aggravations of, or material contributions to, VEA injuries and diseases

Defence service
(1)
If:
(a)
before the commencement date, a person was suffering from a war‑caused or defence‑caused injury or disease (within the meaning of the VEA); and
(b)
on or after 1 July 2013, there is an aggravation of, or a material contribution to, that injury or disease; and
(c)
the aggravation or material contribution either:
(i)
relates to defence service rendered by the person on or after 1 July 2013; or
(ii)
relates to defence service rendered by the person before, and on or after, 1 July 2013;
then the MRCA does not apply to that aggravation or material contribution.
Note: The person may be able to apply under section 15 of the VEA for an increase in a rate of pension on the ground that the incapacity of the person has increased because of the aggravation of, or material contribution to, that injury or disease.
(2)
To avoid doubt, defence service is rendered before, and on or after, 1 July 2013 whether the service spans that day or is rendered during separate periods before and on or after that day.
(3)
If:
(a)
before the commencement date, a person was suffering from a war‑caused or defence‑caused injury or disease (within the meaning of the VEA); and
(b)
before 1 July 2013, there was an aggravation of, or a material contribution to, that injury or disease; and
(c)
the aggravation or material contribution either:
(i)
related to defence service rendered by the person on or after the commencement date; or
(ii)
related to defence service rendered by the person before, and on or after, the commencement date; and
(d)
immediately before 1 July 2013, the person had not made a choice of the kind referred to in subsection 12(2) of this Act (as in force immediately before that day);
then the MRCA does not apply to that aggravation or material contribution.
Note: The person may be able to apply under section 15 of the VEA for an increase in a rate of pension on the ground that the incapacity of the person has increased because of the aggravation of, or material contribution to, that injury or disease.
(4)
To avoid doubt, defence service is rendered before, and on or after, the commencement date whether the service spans the commencement date or is rendered during separate periods before and on or after that date.
Treatment
(5)
If:
(a)
before the commencement date, a person was suffering from a war‑caused or defence‑caused injury or disease (within the meaning of the VEA); and
(b)
on or after 1 July 2013, there is an aggravation of, or a material contribution to, that injury or disease; and
(c)
the aggravation or material contribution occurs as an unintended consequence of treatment of a kind mentioned in section 29 of the MRCA; and
(d)
the treatment is provided either:
(i)
on or after 1 July 2013; or
(ii)
before, and on or after, 1 July 2013;
then the MRCA does not apply to that aggravation or material contribution.
Note: The person may be able to apply under section 15 of the VEA for an increase in a rate of pension on the ground that the incapacity of the person has increased because of the aggravation of, or material contribution to, that injury or disease.
(6)
To avoid doubt, treatment is provided before, and on or after, 1 July 2013 whether the treatment spans that day or is provided during separate periods before and on or after that day.
(7)
If:
(a)
before the commencement date, a person was suffering from a war‑caused or defence‑caused injury or disease (within the meaning of the VEA); and
(b)
before 1 July 2013, there was an aggravation of, or a material contribution to, that injury or disease; and
(c)
the aggravation or material contribution occurred as an unintended consequence of treatment of a kind mentioned in section 29 of the MRCA; and
(d)
the treatment was provided either:
(i)
on or after the commencement date; or
(ii)
before, and on or after, the commencement date; and
(e)
immediately before 1 July 2013, the person had not made a choice of the kind referred to in subsection 12(2) of this Act (as in force immediately before that day);
then the MRCA does not apply to that aggravation or material contribution.
Note: The person may be able to apply under section 15 of the VEA for an increase in a rate of pension on the ground that the incapacity of the person has increased because of the aggravation of, or material contribution to, that injury or disease.
(8)
To avoid doubt, treatment is provided before, and on or after, the commencement date whether the treatment spans the commencement date or is provided during separate periods before and on or after that date.

10Subsection 7(4) of the DRCA does not apply

Subsection 7(4) of the DRCA does not apply in determining the day on which a disease is contracted, or aggravated or materially contributed to, for the purposes of paragraph 7(1)(a) or (2)(a) or 8(1)(a) or (2)(a).
Note: The Commission must determine the day on which a disease is contracted, or aggravated or materially contributed to, rather than using the day that is deemed by subsection 7(4) of the DRCA.

11Application of the MRCA to loss or damage to medical aids

The MRCA applies to the loss of, or damage to, a member’s medical aid if the loss or damage results from an occurrence that happens on or after the commencement date.

Part 3Persons who have both VEA/DRCA and MRCA injuries and diseases13Bringing across impairment points from a VEA or DRCA injury or disease

(1)
This section applies if:
(a)
a claim is made under section 319 of the MRCA in respect of a person who also has:
(i)
a separate war‑caused or defence‑caused injury or disease (within the meaning of the VEA) (the old injury or disease); or
(ii)
a separate injury or disease (within the meaning of the DRCA) (the old injury or disease); or
(b)
a claim is made under section 319 of the MRCA in respect of an aggravation of, or a material contribution to:
(i)
a sign or symptom of a war‑caused or defence‑caused injury or disease of a person (within the meaning of the VEA) (the old injury or disease); or
(ii)
an injury or disease of a person (within the meaning of the DRCA) (the old injury or disease) or a sign or symptom of such an injury or disease.
(2)
The Commission must determine the impairment points constituted by the impairment suffered by the person from the old injury or disease using the guide under section 67 of the MRCA.
(3)
For the purposes of determining under the MRCA the number of impairment points constituted by an impairment suffered by a person, the Commission must count the impairment points determined for the old injury or disease under subsection (2) towards the person’s total impairment points.
(4)
The Commission may include in the guide under section 67 of the MRCA one or more methods of working out the amount of compensation a person is entitled to under Part 2 of Chapter 4 of the MRCA (permanent impairment) for the service injury or disease. A method may (but does not have to) include a method of offsetting payments made to the person under the VEA or the DRCA in respect of the old injury or disease.
Note: The regulations may also include a method of converting lump sum amounts into weekly amounts for the purposes of offsetting (see paragraph 24(3)(b)).

14Offsetting VEA and DRCA payments against a Special Rate Disability Pension

(1)
For the purposes of section 204 of the MRCA, the maximum weekly amount of a Special Rate Disability Pension that could be payable to a person, at a time, must also be reduced by one half of the fortnightly rate at which any pension because of paragraph 13(1)(b) or 70(1)(b) of the VEA is payable to the person at that time.
(2)
For the purposes of section 204 of the MRCA, the maximum weekly amount of a Special Rate Disability Pension that could be payable to a person must also be reduced by the sum of any previous payments of a lump sum to the person under section 24, 25 or 27 of the DRCA, converted to a weekly amount in accordance with regulations made for the purposes of paragraph 24(3)(b) of this Act.

Part 4Other transitional provisions15No dual entitlement for similar benefits

No dual entitlement for injuries and diseases
(1)
A person who, at a particular time, would otherwise be entitled to:
(a)
a benefit under a VEA or DRCA provision mentioned in column 1 of the table; and
(b)
a benefit under an MRCA provision mentioned in column 2;
is instead only entitled to the benefit under the MRCA provision at that time.

Equivalent entitlements for injuries and diseases under the VEA or DRCA and the MRCA
Item	Column 1 VEA or DRCA provision	Column 2 MRCA provision
1	Subsection 13(4) of the VEA	Section 253 of the MRCA
2	Section 98 of the VEA	Section 217 of the MRCA
3	Section 105 of the VEA	Section 212 of the MRCA
4	Section 107 of the VEA	Part 3, 4 or 6 of Chapter 4 of the MRCA
5	Section 108 of the VEA	Part 3, 4 or 6 of Chapter 4 of the MRCA
6	Part VII of the VEA	Section 258 of the MRCA
7	Section 19, 20, 21, 21A or 31 of the DRCA	Part 3, 4 or 6 of Chapter 4 of the MRCA
8	Section 22 of the DRCA	Section 127 of the MRCA
9	Subsection 29(1) of the DRCA	Section 214 of the MRCA
10	Subsection 29(3) of the DRCA	Section 217 of the MRCA

Note: Payments of Commonwealth superannuation that are being offset under section 20, 21 or 21A of the DRCA might instead be offset under Part 4 or 6 of Chapter 4 of the MRCA (see section 16 of this Act).

No dual entitlement for travel expenses for treatment
(2)
A person who would otherwise be entitled to:
(a)
a benefit under a VEA or DRCA provision mentioned in column 1 of the table in respect of a journey or accommodation; and
(b)
a benefit under an MRCA provision mentioned in column 2 in respect of the journey or accommodation;
is instead only entitled to the benefit under the MRCA provision in respect of the journey or accommodation.

Equivalent entitlements for travel expenses for treatment under the VEA or DRCA and the MRCA
Item	Column 1 VEA or DRCA provision	Column 2 MRCA provision
1	Subsection 110(1) of the VEA	Subsection 290(1) or 291(1) of the MRCA
2	Subsection 110(2) of the VEA	Subsection 290(2) or 291(2) of the MRCA
3	Subsection 16(6) of the DRCA	Division 2 of Part 4 of Chapter 6 of the MRCA
4	Subsection 16(9) of the DRCA	Section 297 of the MRCA

No dual entitlement for treatment expenses
(3)
A person who would otherwise be entitled to compensation under subsection 16(1) of the DRCA, and Part 2 of Chapter 6 of the MRCA, in respect of the same treatment is instead only entitled to the compensation under the MRCA for the treatment.
No dual entitlement for modifications of aids and appliances etc.
(4)
A person who would otherwise be entitled to:
(a)
a benefit under an DRCA provision mentioned in column 1 of the table in respect of a modification, alteration, repair, replacement or provision of a thing; and
(b)
a benefit under an MRCA provision mentioned in column 2 in respect of the modification, alteration, repair, replacement or provision;
is instead only entitled to the benefit under the MRCA provision in respect of the modification, alteration, repair, replacement or provision.

Equivalent entitlements for modifications of aids and appliances etc. under the DRCA and the MRCA
Item	Column 1 DRCA provision	Column 2 MRCA provision
1	Paragraph 39(1)(c), (d) or (e) of the DRCA	Section 56 of the MRCA
2	Paragraph 39(1)(d) or (e) of the DRCA	Section 212 of the MRCA

No dual entitlement for deaths
(5)
A person who would otherwise be entitled to:
(a)
a benefit under a VEA or DRCA provision mentioned in column 1 of the table in respect of a person’s death; and
(b)
a benefit under an MRCA provision mentioned in column 2 in respect of the death;
is instead only entitled to the benefit under the MRCA provision in respect of the death.

Equivalent entitlements for deaths under the VEA or DRCA and the MRCA
Item	Column 1 VEA or DRCA provision	Column 2 MRCA provision
1	Section 98B of the VEA	Section 266 of the MRCA
2	Subsection 99(1) of the VEA	Section 266 of the MRCA
3	Subsection 99(2) of the VEA	Section 266 of the MRCA
4	Paragraph 99(4)(b) of the VEA	Section 297 of the MRCA
5	Subsection 16(9) of the DRCA	Section 297 of the MRCA
6	Subsection 17(3) of the DRCA	Parts 1 to 4 of Chapter 5 of the MRCA
7	Subsection 17(4) of the DRCA	Part 4 of Chapter 5 of the MRCA
8	Subsection 17(5) of the DRCA	Section 253 of the MRCA
9	Section 18 of the DRCA	Section 266 of the MRCA

(6)
To avoid doubt, if this section stops a person from being entitled, under a provision of an Act, to a benefit at a time or in respect of a thing, then compensation, an allowance, a pension or any other benefit is not payable, or to be granted, under the provision at that time or in respect of that thing to or for the benefit of the person.

16Offsetting amounts of Commonwealth superannuation under the MRCA

(1)
This section applies if:
(a)
item 7 of the table in subsection 15(1) stops a person from being entitled to compensation under section 20, 21 or 21A of the DRCA (compensation for incapacity if superannuation is paid); and
(b)
apart from this section, the person would be entitled to compensation of an amount:
(i)
that is worked out under Subdivision C of Division 2 of Part 4 of Chapter 4 of the MRCA (compensation for incapacity if no superannuation is paid); or
(ii)
that would be worked out under that Subdivision if the person had not chosen to receive a Special Rate Disability Pension.
(2)
The superannuation scheme (within the meaning of the DRCA) is taken to be a Commonwealth superannuation scheme (within the meaning of the MRCA) for the purposes of the MRCA.
Note: This means that amounts of superannuation that are being offset under the DRCA are offset under the MRCA.
(3)
For the purposes of the MRCA, the amounts mentioned in column 1 of the table are taken to be the same as the amounts under the DRCA mentioned in column 2.

Transferring superannuation amounts
Item	Column 1 This MRCA amount...	Column 2 is taken to the same as this DRCA amount...
1	the superannuation pension amount mentioned in section 134 of the MRCA	the superannuation amount (in relation to a pension) mentioned in section 20 of the DRCA
2	the superannuation lump sum amount mentioned in section 135 of the MRCA	the superannuation amount (in relation to a lump sum benefit) mentioned in section 21 of the DRCA
3	the superannuation pension amount mentioned in section 136 of the MRCA	the weekly superannuation amount mentioned in section 21A of the DRCA
4	the superannuation lump sum amount mentioned in section 136 of the MRCA	the superannuation lump sum benefit mentioned in section 21A of the DRCA

17Amount of compensation where a person has redeemed an amount under the DRCA

(1)
This section sets out the amount of compensation for a week that a person who has previously redeemed an amount under section 30 of the DRCA is entitled to under Part 4 of Chapter 4 of the MRCA.
(2)
The amount is worked out using the following formula:

where:
Subdivision C or D compensation amount for a person for a week means the amount of compensation that person would have been paid for the week if Subdivision C or D of Division 2 of Part 4 of Chapter 4 of the MRCA had applied.
weekly amount means the amount for a week that was redeemed at the date of the determination under section 30 of the DRCA.

18Rehabilitation under the MRCA for persons undergoing rehabilitation under the VEA or DRCA

(1)
This section applies if:
(a)
a person is undertaking a rehabilitation program under the VEA or the DRCA (the old program); and
(b)
the rehabilitation authority for the person determines that the person is to undertake a rehabilitation program under the MRCA (the new program).
(2)
The person’s rehabilitation authority may determine that the old program stops being provided under the VEA or the DRCA.
(3)
If the authority does so, the approved program provider may (but does not have to) incorporate all or part of the old program in designing or providing the new program.
(4)
If the approved program provider incorporates all or part of the old program, then the Commonwealth must pay all unpaid costs incurred in respect of the old program.

19Bringing across current Statements of Principles determined under section 196B of the VEA

(1)
For the purposes of the MRCA, a Statement of Principles that is in force under subsection 196B(2), (3), (11) or (12) of the VEA immediately before the commencement date is taken to have been made on the commencement date under that subsection for the purposes of the MRCA.
Note: The Statements of Principles continue in force for the purposes of the VEA in respect of injuries and diseases etc. to which that Act applies.
Translating references in a subsection 196B(2) or (11) Statement of Principles
(2)
For a Statement of Principles mentioned in subsection (1) that is made under subsection 196B(2) or (11), references in column 1 of the table have effect for the purposes of the MRCA as if they were the references in column 2.

Translating references in a subsection 196B(2) or (11) Statement of Principles
Item	Column 1 A reference in the Statement of Principles to this...	Column 2 is taken to include a reference to this...
1	operational service, peacekeeping service or hazardous service as defined in the VEA	warlike service or non‑warlike service as defined in the MRCA
2	paragraph 8(1)(e), 9(1)(e), 70(5)(d) or 70(5A)(d) of the VEA	paragraphs 27(d) and 28(1)(d) of the MRCA
3	section 120A of the VEA	section 338 of the MRCA

Translating references in a subsection 196B(3) or (12) Statement of Principles
(3)
For a Statement of Principles mentioned in subsection (1) that is made under subsection 196B(3) or (12), references in column 1 of the table have effect for the purposes of the MRCA as if they were the references in column 2.

Translating references in a subsection 196B(3) or (12) Statement of Principles
Item	Column 1 A reference in the Statement of Principles to this...	Column 2 is taken to include a reference to this...
1	eligible war service (other than operational service) or defence service (other than hazardous service) as defined in the VEA	peacetime service as defined in the MRCA
2	paragraph 8(1)(e), 9(1)(e) or 70(5)(d) of the VEA	paragraphs 27(d) and 28(1)(d) of the MRCA
3	section 120B of the VEA	section 339 of the MRCA

20Bringing across the current Veterans’ Children Education Scheme

(1)
For the purposes of the MRCA, the scheme in force under section 117 of the VEA immediately before the commencement date is taken to have been determined on that date under section 258 of the MRCA.
Note: The scheme continues in force for the purposes of the VEA in respect of eligible children to whom that Act applies.
(2)
A reference in the scheme to an eligible child as defined in the VEA is taken to be a reference to an eligible young person mentioned in section 258 of the MRCA.
(3)
A reference in the scheme to the Repatriation Commission is taken to be a reference to the Military Rehabilitation and Compensation Commission.

21Bringing across the current Treatment Principles etc.

For the purposes of the MRCA, the following documents that are in force under the VEA immediately before the commencement date are taken to have been determined on that date under section 286 of the MRCA:
(a)
the Treatment Principles in force under section 90 of the VEA;
(b)
the Repatriation Private Patient Principles in force under section 90A of the VEA;
(c)
the scheme for providing pharmaceutical benefits in force under section 91 of the VEA.
Note: The documents continue in force for the purposes of the VEA in respect of treatment to which that Act applies.

22Bringing across declared member declarations

For the purposes of the MRCA, a declaration in force under subsection 5(6A) of the SRCA immediately before the commencement date is taken to have been made on that date under section 8 of the MRCA.

23Decisions reviewable under Chapter 8 of the MRCA

A decision made under or in respect of this Act (other than a decision made under or in respect of a provision being inserted or amended by Schedule 1 or 2 to this Act) is taken to be an original determination for the purposes of Chapter 8 of the MRCA.
Note: This means that the review provisions in Chapter 8 of the MRCA apply to a decision made under or in respect of this Act.

24Regulations may provide for transitional etc. issues

(1)
The Governor‑General may make regulations prescribing matters of a transitional nature (including prescribing any saving or application provisions) arising out of the enactment of the MRCA or this Act.
(2)
Despite subsection 48(2) of the Acts Interpretation Act 1901, regulations made under this section within 1 year after commencement of this section may commence on a day earlier than the day on which they are made, but not earlier than the commencement of this section.
(3)
Without limiting subsection (1), the regulations may provide:
(a)
that persons who are entitled to compensation under the MRCA cease to be entitled to a similar benefit under the VEA or the DRCA; and
(b)
a method of converting a lump sum amount into weekly amounts for the purpose of working out an amount of compensation payable for a service injury or disease under Parts 2 and 6 of Chapter 4 of the MRCA.

Part 5Transitional provisions relating to reviews by the Veterans’ Review BoardDivision 1Preliminary25Definitions

In this Part:
new law means the MRCA, the DRCA and the VEA as amended by Part 1 of Schedule 3 to the Simplification Act.
old law means the MRCA, the DRCA and the VEA as in force immediately before the review pathway commencement day.
old VEA means the VEA, as in force immediately before the review pathway commencement day.
review pathway commencement day means the day on which Part 1 of Schedule 3 to the Simplification Act commences.

Division 2Application of new review pathway26Original determinations under the MRCA

Subject to this Part, the amendments of the MRCA made by Part 1 of Schedule 3 to the Simplification Act apply in relation to an original determination that is made on or after the review pathway commencement day, whether the claim to which the determination relates was made before, on or after that day.

27Determinations under the DRCA

Subject to this Part, the amendments of the DRCA made by Part 1 of Schedule 3 to the Simplification Act apply in relation to a determination that is made under the DRCA on or after the review pathway commencement day, whether the claim to which the determination relates was made before, on or after that day.

28Decisions under the VEA

Subject to this Part, the amendments of the VEA made by Part 1 of Schedule 3 to the Simplification Act apply in relation to a decision that is made under the VEA on or after the review pathway commencement day, whether the claim or application to which the decision relates was made before, on or after that day.

Division 3Continuation of Board29Members of the Board

(1)
This section applies to a person who was, immediately before the review pathway commencement day, holding office as a member of the Board under section 158 of the old VEA.
(2)
The person is taken, on and after the review pathway commencement day, to have been appointed under section 359C of the MRCA:
(a)
for the balance of the person’s term of appointment that remained immediately before that day; and
(b)
on terms and conditions (including remuneration) that are equal to, or better than, the terms and conditions that applied to the person immediately before that day.
Note: The person’s remuneration will not be better than their remuneration as a member of the Board under section 158 of the old VEA unless a higher level of remuneration is determined by the Remuneration Tribunal.

30Acting members of the Board

(1)
This section applies to a person who was appointed to act as a member of the Board under section 161 of the old VEA if the appointment was in force immediately before the review pathway commencement day.
(2)
The person is taken, on and after the review pathway commencement day, to have been appointed under section 359CA of the MRCA:
(a)
for the balance of the person’s term of appointment that remained immediately before that day; and
(b)
on terms and conditions (including remuneration) that are equal to, or better than, the terms and conditions that applied to the person immediately before that day.

31Leave of absence

(1)
This section applies to a leave of absence if:
(a)
the leave of absence was granted under section 162 of the old VEA before the review pathway commencement day; and
(b)
the period of leave is, or includes, that day.
(2)
On and after the review pathway commencement day, the leave of absence is taken to have been granted under section 359CC of the MRCA.

32Staff

(1)
This section applies to a person who, immediately before the review pathway commencement day, was engaged and made available to assist the Board under section 172 of the old VEA.
(2)
The person is taken, on and after the review pathway commencement day, to be engaged and made available to assist the Board under section 359D of the MRCA.
(3)
The repeal of section 172 of the old VEA does not affect the continuity of employment of the person.

33Delegations by Principal Member

A delegation under section 166 of the old VEA that is in force immediately before the review pathway commencement day continues in force (and may be dealt with) on and after that day as if the delegation had been made under section 359DA of the MRCA.

34Delegations by Minister to Principal Member

A delegation under paragraph 212(1)(b) of the old VEA that is in force immediately before the review pathway commencement day continues in force (and may be dealt with) on and after that day as if the delegation had been made under subsection 437A(2) of the MRCA.

35Board annual reports

For the financial year ending before review pathway commencement day
(1)
Subsection (2) applies if:
(a)
the review pathway commencement day occurs after the end of a financial year; and
(b)
the report referred to in subsection 215(4) of the old VEA had not been prepared for the financial year before the review pathway commencement day.
(2)
Despite the repeal of subsections 215(4) to (6) of the old VEA by Part 1 of Schedule 3 to the Simplification Act, those subsections continue to apply in relation to the report for the financial year as if that repeal had not happened.
For the financial year in which review pathway commencement day occurs
(3)
Subsection (4) applies:
(a)
if the review pathway commencement day occurs during a financial year; and
(b)
in relation to the operations of the Board during the part of the financial year before the review pathway commencement day.
(4)
The first annual report prepared by the Principal Member under section 359DB of the MRCA must cover those operations.

Division 4Other matters36Effect of things done by, or in relation to, the Board

A thing done by, or in relation to, the Board under a law of the Commonwealth before the review pathway commencement day is not affected by the amendments made by Part 1 of Schedule 3 to the Simplification Act.

37Reviews in progress

(1)
This section applies if a review by the Board is pending immediately before the review pathway commencement day.
(2)
The Board must, as far as possible, continue the review under the new law.
(3)
Anything done in, or in relation to, the review before the review pathway commencement day continues to have effect for the purposes of, or in relation to, the review (as the case requires) on and after that day.
(4)
Anything done in, or in relation to, the review before the review pathway commencement day that was valid under, or done in accordance with, the old law is taken to be valid under, or to have been done in accordance with, the new law for the purposes of the review on and after the review pathway commencement day.

38Continued effect of certain instruments

(1)
If:
(a)
before the review pathway commencement day, an instrument was made under, or for the purposes of, a provision of the old VEA mentioned in column 1 of an item of the following table; 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 the provision of the MRCA mentioned in column 2 of the item.

Continued effect of certain instruments
Item	Column 1 Provision of the old VEA	Column 2 Provision of the MRCA
1	subsection 132(5)	subsection 353Q(1)
2	subsection 132(6)	subsection 353Q(2)
3	subsection 132(9)	subsection 353Q(3)
4	paragraph 155(7)(b)	subsection 353C(8)
5	paragraph 170A(3)(a)	paragraph 353N(3)(a)
6	paragraph 170A(3)(b)	paragraph 353N(3)(b)
7	subsection 170B(2)	subsection 353P(2)
8	subsection 171(1)	subsection 353T(1)

(2)
If:
(a)
before the review pathway commencement day, an instrument was made under subsection 132(9) 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 132(9) of the VEA as substituted by Part 1 of Schedule 3 to the Simplification Act.

39Transitional regulations

(1)
The Governor‑General may make regulations prescribing matters of a transitional nature (including prescribing any saving or application provisions) arising out of the enactment of Schedule 3 to the Simplification Act.
(2)
This Part does not limit the regulations that may be made for the purposes of subsection (1).

Schedule 1Amendment of the Veterans’ Entitlements Act 1986Part 1Main amendments relating to transitional and application issues1

Section 5 (index of definitions)

Insert in their appropriate alphabetical positions, determined on a letter‑by‑letter basis:

CTPA	5Q(1)
Military Rehabilitation and Compensation Commission	5Q(1)
MRCA	5Q(1)
MRCA commencement date	5Q(1)
relates to service	5Q(1B) and (1C)

After paragraph 5H(8)(b)

Insert:
(ba)
a payment of an instalment of an allowance under section 118A, 118F or 118Q (pharmaceutical and telephone allowance);

Paragraph 5H(8)(zb)

Omit “to a veteran”.

At the end of subsection 5H(8)

Add:
; (zo)
a payment under section 47, 56, 81, 205, 214, 217, 226, 239 or 266 of the MRCA to reimburse costs incurred in respect of the provision of goods or services (other than a payment to the person who provided the goods or service);
(zp)
a payment (either as a weekly amount or a lump sum) under section 68, 71, 75 or 80 of the MRCA (permanent impairment);
(zq)
a payment of a Special Rate Disability Pension under Part 6 of Chapter 4 of the MRCA;
(zr)
if subsection 204(5) of the MRCA applies to a person—an amount per fortnight, worked out under section 5I of this Act, that would, apart from this paragraph, be income of the person;
Note: Subsection 204(5) of the MRCA reduces a Special Rate Disability Pension by reference to amounts of Commonwealth superannuation that the person has received or is receiving.
(zs)
a payment under the Motor Vehicle Compensation Scheme under section 212 of the MRCA;
(zt)
a payment of an allowance under section 221, 245 or 300 of the MRCA (telephone and pharmaceutical allowance);
(zu)
a payment of a lump sum mentioned in paragraph 234(1)(a) or subparagraph 234(1)(b)(i), or of a weekly amount mentioned in subparagraph 234(1)(b)(ii), of the MRCA (wholly dependent partner payment);
(zv)
a payment under section 242 or 255 of the MRCA (continuing permanent impairment and incapacity etc. payments);
(zw)
a payment under section 251 or 253 of the MRCA (eligible young person payment);
(zx)
a payment under the scheme set up under section 258 of the MRCA (education scheme for eligible young persons);
(zy)
a payment under section 262 of the MRCA (compensation for other dependants);
(zz)
a payment under Part 2 of Chapter 6, or Division 2 or 3 of Part 4 of Chapter 6, or subsection 328(4), of the MRCA (compensation for treatment etc.);
(zza)
a payment under section 424 of the MRCA (special assistance).
Note: However:
(a) some of the amounts referred to in paragraphs (8)(zp), (zq), (zr) and (zu) are counted for the purposes of the hardship rules (see subsection 52Z(3A)); and
(b) the amounts referred to in paragraph (8)(zp) are counted for the purposes of rent assistance (see Module C of the Rate Calculator).

After section 5H

Insert:

5ISpecial Rate Disability Pension reduction amount

For the purposes of paragraphs 5H(8)(zr) and 52Z(3A)(i), the amount per fortnight is:

where:
Special Rate Disability Pension reduction amount means the amount by which the Special Rate Disability Pension (as reduced under subsection 204(3)) is reduced under subsection 204(6) of the MRCA (but not below zero).

Subsection 5Q(1)

Insert:
CTPA means the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004.

Subsection 5Q(1)

Insert:
Military Rehabilitation and Compensation Commission means the Military Rehabilitation and Compensation Commission established under section 361 of the MRCA.

Subsection 5Q(1)

Insert:
MRCA means the Military Rehabilitation and Compensation Act 2004.

Subsection 5Q(1)

Insert:
MRCA commencement date means the date on which section 3 of the MRCA commences.

After subsection 5Q(1A)

Insert:
Definition of relates to service for injuries, diseases and deaths
(1B)
For the purposes of this Act, an injury, disease or death relates to service rendered by a person if:
(a)
it resulted from an occurrence that happened while the person was rendering that service; or
(b)
it arose out of, or was attributable to, that service; or
(c)
it resulted from an accident that occurred while the person was travelling, while rendering that service but otherwise than in the course of duty, on a journey:
(i)
to a place for the purpose of performing duty; or
(ii)
away from a place of duty upon having ceased to perform duty; or
(d)
in the case of an injury—it resulted from an accident that would not have occurred:
(i)
but for the rendering of that service by the person; or
(ii)
but for changes in the person’s environment consequent upon his or her having rendered that service; or
(e)
in the case of a disease—it would not have occurred:
(i)
but for the rendering of that service by the person; or
(ii)
but for changes in the person’s environment consequent upon his or her having rendered that service; or
(f)
in the case of a death of a person—it was due to an accident that would not have occurred, or to a disease that would not have been contracted:
(i)
but for the rendering of that service by the person; or
(ii)
but for changes in the person’s environment consequent upon his or her having rendered that service.
Definition of relates to service for aggravations and material contributions
(1C)
For the purposes of this Act, an aggravation of, or a material contribution to, an injury or disease relates to service rendered by a person if:
(a)
it resulted from an occurrence that happened while the person was rendering that service; or
(b)
it arose out of, or was attributable to, that service; or
(c)
it resulted from an accident that occurred while the person was travelling, while rendering that service but otherwise than in the course of duty, on a journey:
(i)
to a place for the purpose of performing duty; or
(ii)
away from a place of duty upon having ceased to perform duty; or
(d)
in the case of an aggravation of, or a material contribution to, an injury—it resulted from an accident that would not have occurred:
(i)
but for the rendering of that service by the person; or
(ii)
but for changes in the person’s environment consequent upon his or her having rendered that service; or
(e)
in the case of an aggravation of, or a material contribution to, a disease—it would not have occurred:
(i)
but for the rendering of that service by the person; or
(ii)
but for changes in the person’s environment consequent upon his or her having rendered that service.

Subsections 8(1) and 9(1)

Omit “Subject to this section,”, substitute “Subject to this section and section 9A,”.

After section 9

Insert:

9AMost war‑caused injuries, diseases and deaths no longer covered by this Act

(1)
A veteran’s injury, disease or death is taken not to be war‑caused if:
(a)
the injury is sustained, the disease is contracted, or the death occurs, on or after the MRCA commencement date; and
(b)
the injury, disease or death either:
(i)
relates to service rendered by the person on or after that date; or
(ii)
relates to service rendered by the person before, and on or after, that date.
Note: After the MRCA commencement date, compensation is provided under the MRCA (instead of this Act) for such injuries, diseases and deaths.
(2)
An injury or disease of a veteran that has been aggravated, or materially contributed to, by service is taken not to be war‑caused if:
(a)
the aggravation or material contribution occurs on or after the commencement date (even if the original injury is sustained, or the original disease is contracted, before that date); and
(b)
the aggravation or material contribution either:
(i)
relates to service rendered by the person on or after that date; or
(ii)
relates to service rendered by the person before, and on or after, that date; and
(c)
if section 12 of the CTPA applies to the veteran—after receiving a notice under that section, the veteran makes a claim under section 319 of the MRCA (or continues with a claim already made under that section) in respect of the aggravated injury or disease.
Note: After the MRCA commencement date, compensation is provided under the MRCA (instead of this Act) for such aggravations and material contributions.
(3)
To avoid doubt, service is rendered before, and on or after, the MRCA commencement date whether the service spans the commencement date or is rendered during separate periods before and on or after that date.

Paragraph 13(1)(b)

Omit “has become incapacitated”, substitute “is incapacitated”.

After subsection 13(2A)

Insert:
Subsection (2A) ceases to apply
(2AA)
The Commonwealth is not liable, under subsection (2A), to pay a pension to a dependant of a veteran in respect of the veteran’s death if the death occurs on or after the MRCA commencement date.

After subsection 13(6)

Insert:
Subsection (6) ceases to apply
(6A)
The Commonwealth is not liable, under subsection (6), to pay a pension in respect of a person’s death, or the incapacity of a person, if:
(a)
either:
(i)
the occurrence resulting in the death or incapacity happened on or after the MRCA commencement date; or
(ii)
the disease was contracted on or after the MRCA commencement date; and
(b)
either:
(i)
the occurrence or disease relates to service rendered by the person on or after that date; or
(ii)
the occurrence or disease relates to service rendered by the person before, and on or after, that date (whether the service spans the commencement date or is rendered during separate periods before and on or after that date).

After subsection 15(1)

Insert:
(1A)
However, a veteran who:
(a)
receives a notice under section 12 of the CTPA in respect of an aggravation of, or a material contribution to, an injury or disease; and
(b)
after receiving the notice, makes a claim under section 319 of the MRCA (or continues with a claim already made under that section) in respect of the aggravation or material contribution;
is not entitled to apply for an increase in the rate of the pension on the ground that the veteran’s incapacity has increased because of that aggravation or material contribution.
Note: Under section 12 of the CTPA, a veteran who has a war‑caused or defence‑caused injury or disease that is aggravated or materially contributed to by service after the MRCA commencement date can choose whether the MRCA or the VEA will apply to the aggravated injury or disease.

16A

Subsection 23(5)

Repeal the subsection, substitute:
(5)
The rate at which pension is payable to a veteran to whom section 115D applies (veterans working under rehabilitation scheme) is the reduced amount worked out using the following formula:

16B

Subsection 24(5)

Repeal the subsection, substitute:
(5)
The rate at which pension is payable to a veteran to whom section 115D applies (veterans working under rehabilitation scheme) is the reduced amount worked out using the following formula:

16C

Application of items 16A and 16B

The amendments made by items 16A and 16B apply from the pension period that begins after those items commence.

Subsection 38(1D)

Repeal the subsection, substitute:
(1D)
Subsection (1B) does not apply to a person whose partner:
(a)
is a veteran to whom section 24 applies; or
(b)
is receiving, or eligible to receive, a Special Rate Disability Pension under Part 6 of Chapter 4 of the MRCA.
Note: A person is still eligible to receive a Special Rate Disability Pension even if the amount of the pension is totally offset under section 204 of the MRCA.

After paragraph 52(1)(m)

Insert:
(ma)
if the person is provided with a motor vehicle under the Motor Vehicle Compensation Scheme under section 212 of the MRCA—the value of that motor vehicle;

Subsection 52Z(3A)

After “following payments”, insert “and amounts”.

At the end of subsection 52Z(3A)

Add:
; (g)
a payment of a weekly amount under section 68, 71 or 75 of the MRCA (permanent impairment);
(h)
a payment of a Special Rate Disability Pension under Part 6 of Chapter 4 of the MRCA;
(i)
if subsection 204(5) of the MRCA applies to a person—an amount per fortnight worked out under section 5I of this Act;
(j)
a payment of a weekly amount mentioned in subparagraph 234(1)(b)(ii) of the MRCA (wholly dependent partner payment).
Note: Subsection 204(5) of the MRCA reduces a Special Rate Disability Pension by reference to amounts of Commonwealth superannuation that the person has received or is receiving.

Subsection 52Z(3A) (note)

Omit “payments referred to in paragraphs (a) to (e)”, substitute “payments and amounts referred to in this subsection”.

Paragraphs 70(1)(b), 70(5)(d) and 70(5A)(d)

Omit “has become incapacitated”, substitute “is incapacitated”.

At the end of subsections 85(1) and (2)

Add:
Note: A veteran might stop being eligible to be provided with treatment under this Part for an injury or disease if the veteran is entitled to treatment under the MRCA for the injury or disease (see sections 85A and 85B of this Act).

Paragraph 85(4)(b)

Before “a veteran”, insert “before the MRCA commencement date”.

After subsection 85(7)

Insert:
(7A)
A veteran is eligible to be provided with treatment under this Part for any injury or disease if:
(a)
the veteran is receiving a service pension under Part III; and
(b)
an impairment suffered by the veteran from one or more service injuries or diseases constitutes at least 30 impairment points (within the meaning of the MRCA); and
(c)
the treatment is provided after both paragraphs (a) and (b) begin to apply to the veteran; and
(d)
the veteran is not already being provided with treatment for any injury or disease under Chapter 6 of the MRCA.

After section 85

Insert:

85ATreatment under section 279 or 280 of the MRCA for aggravated injuries or diseases

(1)
This section applies if:
(a)
a person is entitled to treatment for an aggravated injury or disease (within the meaning of the MRCA) under section 279 or 280 of the MRCA; and
(b)
apart from this section, the person would also be eligible to be provided with treatment for the original injury or disease under subsection 85(1) or (2) of this Act.
Note: A person who is eligible to be provided with treatment under this Act for any injury or disease would continue to be provided with that treatment.
(2)
The person is entitled to treatment only under section 279 or 280 of the MRCA, and not under subsection 85(1) or (2) of this Act, for the original injury or disease during the period in which the person is provided with treatment for the aggravated injury or disease.
(3)
During this period, the treatment for the original injury or disease is taken to be treatment to which a person is entitled under Part 3 of Chapter 6 of the MRCA for the purposes of section 289 of that Act (compensable treatment) but not for the purposes of section 273 of that Act (compensation for those entitled to treatment).

85BTreatment under section 279 or 280 of the MRCA if a person is entitled to treatment under the VEA for a separate injury or disease

(1)
This section applies if:
(a)
a person is entitled to treatment for a service injury or disease (within the meaning of the MRCA) under section 279 or 280 of the MRCA; and
(b)
apart from this section, the person would also be eligible to be provided with treatment for a separate war‑caused or defence‑caused injury or disease under subsection 85(1) or (2) of this Act.
Note: A person who is eligible to be provided with treatment under this Act for any injury or disease would continue to be provided with that treatment.
(2)
The person is entitled to treatment only under section 279 or 280 of the MRCA, and not under subsection 85(1) or (2) of this Act, for the war‑caused or defence‑caused injury or disease during the period in which the person is provided with treatment for the service injury or disease.
(3)
During this period, the treatment for the war‑caused or defence‑caused injury or disease is taken to be treatment to which a person is entitled under Part 3 of Chapter 6 of the MRCA for the purposes of section 289 of that Act (compensable treatment) but not for the purposes of section 273 of that Act (compensation for those entitled to treatment).

Paragraph 86(2)(c)

Repeal the paragraph, substitute:
(c)
a deceased veteran was, before the MRCA commencement date, a prisoner of war at a time when the veteran was on operational service;

Subsection 91(6)

Omit “approved scheme,”, substitute “approved scheme or a determination under paragraph 286(1)(c) of the MRCA,”.

Subsection 91(8)

Repeal the subsection, substitute:
(8)
If the Pharmaceutical Benefits Remuneration Tribunal submits the recommendations and a copy of the report to the Minister:
(a)
the Commission may prepare an instrument under subsection (2) varying the approved scheme; or
(b)
the Military Rehabilitation and Compensation Commission may vary the determination under paragraph 286(1)(c) of the MRCA;
in any manner the relevant Commission considers desirable as a result of its consideration of the recommendations and the report.

Paragraph 98B(1)(d)

After “veteran had”, insert “, before the MRCA commencement date,”.

Paragraph 99(2)(c)

After “veteran was”, insert “, before the MRCA commencement date,”.

Subsection 99(3)

Repeal the subsection, substitute:
(3)
A funeral benefit must not to be granted under paragraph (1)(e) unless:
(a)
if subparagraph (1)(e)(i) or (ii) applies—treatment is or was provided in the institution; and
(b)
in any case—the treatment is or was arranged:
(i)
by the Commission under Part V of this Act; or
(ii)
by the Military Rehabilitation and Compensation Commission under Chapter 6 of the MRCA.

Subparagraph 99(4)(b)(iii)

After “the Commission”, insert “or the Military Rehabilitation and Compensation Commission”.

After subsection 100(1)

Insert:
(1A)
The Commission may grant a benefit towards the funeral expenses incurred in respect of a person’s funeral if:
(a)
either:
(i)
the person was a wholly dependent partner of a deceased member; or
(ii)
the person was both an eligible young person, and a dependant of a deceased member, immediately before the member’s death; and
(b)
the person died in indigent circumstances; and
(c)
section 12 of the MRCA applies in respect of the member.
Note: Expressions used in this subsection have the same meanings as they have in the MRCA (see subsection (4)).

At the end of section 100

Add:
(4)
Expressions used in subsection (1A) have the same meanings as they have in the MRCA.

Subsection 106(2)

Repeal the subsection, substitute:
(2)
The Commission must not grant assistance or benefits to a person under subsection (1):
(a)
in circumstances in which the person is eligible to be granted an allowance or assistance under another provision of this Act; or
(b)
to a veteran, or a dependant of a veteran or a deceased veteran, if the veteran is only a veteran because of service rendered after the MRCA commencement date.
Note: The Military Rehabilitation and Compensation Commission can grant assistance or benefits to veterans who render service after the MRCA commencement date, or to dependants of such veterans (see section 424 of the MRCA).

Subsection 115B(1)

After “classes of veterans”, insert “who render service before the MRCA commencement date”.

At the end of subsection 115B(1)

Add:
Note: A rehabilitation program that is being provided to a veteran under the scheme might cease if the veteran is also provided with rehabilitation under the MRCA (see section 18 of the CTPA).

39A

Section 115D

Repeal the section, substitute:

115DReduced 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.

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.”.

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

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.

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.

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.

Paragraph SCH6‑C7(c)

Omit “a disability pension”, substitute “either or both a disability pension and permanent impairment compensation”.

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.

Point SCH6‑C12

Omit “disability pension”, substitute “either or both a disability pension and permanent impairment compensation”.

Point SCH6‑C12 (note)

Omit “Note”, substitute “Note 1”.

At the end of point SCH6‑C12

Add:
Note 2: For permanent impairment compensation see point SCH6‑C16.

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”.

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”.

Point SCH6‑C14

After “disability pension” (second occurring), insert “and permanent impairment compensation”.

Point SCH6‑C14

Omit “disability pension income”, substitute “disability income”.

Point SCH6‑C14 (note)

Omit “Note”, substitute “Note 1”.

At the end of point SCH6‑C14

Add:
Note 2: For permanent impairment compensation see point SCH6‑C16.

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 2Amendments relating to income support supplement67

Section 5 (index of definitions)

Insert in its appropriate alphabetical position, determined on a letter‑by‑letter basis:

wholly dependent partner

5E(1)

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).

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).

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.

Paragraph 45B(1)(c)

Omit “or a social security benefit”, substitute “, a social security benefit or another income support supplement”.

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.

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.

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

Paragraphs 45R(2)(b) and (c)

Omit “pension receipt day”, substitute “benefit day”.

Paragraph 45R(2)(d)

Omit “pension receipt day” (wherever occurring), substitute “benefit day”.

Subsection 45R(2)

Omit “pension receipt day” (last occurring), substitute “benefit day”.

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;

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.

Subsection 53M(5)

After “paragraph (c)”, insert “, (ca) or (cb)”.

Part 3Amendments relating to the Statements of Principles83

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.”.

After paragraph 196B(2)(c)

Insert:
or (ca)
warlike or non‑warlike service rendered by members;

Subsection 196B(2) (note 2)

Omit “see subsection 5Q(1A)”, substitute “referred to in paragraphs (2)(b) and (c), see subsection 5Q(1A)”.

Subsection 196B(2) (after note 2)

Insert:
Note 2A: For warlike service, non‑warlike service and membersreferred to in paragraph (2)(ca), see section 196KA. (These definitions are for the purposes of the MRCA.)

After paragraph 196B(3)(b)

Insert:
or (ba)
peacetime service rendered by members;

Subsection 196B(3) (note 2)

Omit “see subsection 5Q(1A)”, substitute “referred to in paragraph (3)(b), see subsection 5Q(1A)”.

Subsection 196B(3) (after note 2)

Insert:
Note 2A: For peacetime serviceand membersreferred to in paragraph (3)(ba), see section 196KA. (These definitions are for the purposes of the MRCA.)

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.

Paragraph 196B(4)(b)

After “this Act”, insert “, or the MRCA,”.

Paragraph 196B(4)(c)

After “suffered”, insert “or sustained”.

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.

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.)

Paragraph 196B(7)(d)

After “suffered”, insert “or sustained”.

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.

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.)

Subsection 196B(11) (note)

Omit “Note”, substitute “Note 1”.

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:

196KADefinitions for the purposes of the MRCA

In this Division:
(a)
for the purposes of paragraphs 196B(4)(d) and 196B(7)(e), service death has the same meaning as in the MRCA; and
(b)
for the purposes of paragraphs 196B(4)(d) and 196B(7)(e), service disease has the same meaning as in the MRCA; and
(c)
for the purposes of paragraphs 196B(4)(d) and 196B(7)(e), service injury has the same meaning as in the MRCA; and
(d)
for the purposes of paragraphs 196B(2)(ca) and 196B(3)(ba), members has the same meaning as in the MRCA; and
(e)
for the purposes of paragraph 196B(3)(ba), peacetime service has the same meaning as in the MRCA; and
(f)
for the purposes of paragraph 196B(2)(ca), non‑warlike service does not have the meaning given by this Act but instead has the same meaning as in the MRCA; and
(g)
for the purposes of paragraph 196B(2)(ca), warlike service does not have the meaning given by this Act but instead has the same meaning as in the MRCA.

112

After subsection 196W(4)

Insert:
(4A)
The Council may give directions under subsection (4) for the purposes of this Act, the MRCA, or both Acts.

113

Paragraph 196X(2)(b)

After “the Commission”, insert “, or the Military Rehabilitation and Compensation Commission,”.

114

After paragraph 196Y(1)(a)

Insert:
(aa)
the Military Rehabilitation and Compensation Commission;

115

At the end of paragraph 196Y(1)(b)

Add “of this Act”.

116

After paragraph 196Y(1)(b)

Insert:
(ba)
a person eligible to make a claim for compensation under section 319 of the MRCA;

117

Paragraph 196Y(1)(c)

After “members of Peacekeeping Forces”, insert “, or members within the meaning of the MRCA,”.

118

Subsection 196ZA(1)

Omit “any person referred to in paragraph 196Y(1)(a) or (b), or an organisation referred to in paragraph 196Y(1)(c),”, substitute “any person or organisation referred to in any of paragraphs 196Y(1)(a) to (c)”.

119

Subsection 196ZA(3)

After “the Commission” (first occurring), insert “, the Military Rehabilitation and Compensation Commission”.

120

Subsection 196ZA(3)

Omit “the Commission” (second occurring), substitute “the relevant Commission”.

121

Subsection 196ZA(4)

After “the Commission” (first occurring), insert “, the Military Rehabilitation and Compensation Commission”.

122

Subsection 196ZA(4)

Omit “the Commission” (second occurring), substitute “the relevant Commission”.

123

Subsection 196ZD(1)

Omit “a person referred to in paragraph 196Y(1)(a) or (b), or an organisation referred to in paragraph 196Y(1)(c),”, substitute “any person or organisation referred to in any of paragraphs 196Y(1)(a) to (c)”.

Part 4Amendments relating to offsetting permanent impairment payments under the SRCA124

Subsection 23(4)

Omit “subsection (5)”, substitute “subsections (5) and (6)”.

125

Subsection 23(5)

Omit “If”, substitute “Subject to subsection (6), if”.

127

At the end of section 23

Add:
(6)
If section 25A applies to a veteran, the rate at which pension is payable to the veteran is the rate per fortnight specified in subsection (4) or (5) of this section, reduced in accordance with section 25A.

128

Subsection 24(4)

Omit “subsection (5)”, substitute “subsections (5) and (6)”.

129

Subsection 24(5)

Omit “If”, substitute “Subject to subsection (6), if”.

131

At the end of section 24

Add:
(6)
If section 25A applies to a veteran, the rate at which pension is payable to the veteran is the rate per fortnight specified in subsection (4) or (5) of this section, reduced in accordance with section 25A.

132

Subsection 24A(1)

Omit “subsection (2)”, substitute “subsections (1A) and (2)”.

133

After subsection 24A(1)

Insert:
(1A)
However, subsection (1) does not prevent a rate applicable under subsection 24(4) or (5) from being reduced to give effect to subsection 24(6).

134

At the end of section 202CE

Add:
(9)
Subsection (6) does not apply to a TFN declaration given to the Military Rehabilitation and Compensation Commission:
(a)
by a person who is an applicant for compensation or an allowance under the Military Rehabilitation and Compensation Act 2004; or
(b)
by a person who is a recipient for the purposes of this Part because the person receives, or expects to receive, such compensation or allowance.
5
Subsection 221A(1) (definition of prescribed non‑resident)
Before “a pension”, insert “compensation or”.
6
Subsection 221A(1) (after paragraph (b) of the definition of prescribed non‑resident)
Insert:
(ba)
the Military Rehabilitation and Compensation Act 2004; or

Paragraph 251U(1)(b)

After “Veterans’ Entitlements Act 1986”, insert “or the Military Rehabilitation and Compensation Act 2004”.

Subsection 265A(3)

Repeal the subsection, substitute:
(3)
The provisions of subsection (1) do not apply in any case where the death of the taxpayer has occurred in circumstances (including the circumstances of his or her service) in which the Commonwealth would not be liable to pay pensions or compensation:
(a)
under Part II or IV of the Veterans’ Entitlements Act 1986 to the dependants of deceased members of the Forces or veterans; or
(b)
mentioned in paragraph 234(1)(b) of the Military Rehabilitation and Compensation Act 2004 to the wholly dependent partners of deceased members (within the meaning of that Act).

Subsection 265A(4)

After “Part II or IV of that Act,”, insert “or any decision of the Military Rehabilitation and Compensation Commission established under section 361 of the Military Rehabilitation and Compensation Act 2004 on a question affecting the right of a dependant of a deceased member (within the meaning of that Act) to compensation under Chapter 5 of that Act,”.

Part 2Amendment of the Income Tax Assessment Act 199710

Sections 51‑32 and 51‑33

Repeal the sections, substitute:

51‑32Compensation payments for loss of tax exempt payments

(1)
A compensation payment for the loss of pay or an allowance for your warlike service is exempt from income tax if:
(a)
the compensation payment is made under the Safety, Rehabilitation and Compensation Act 1988 in respect of an injury (as defined in that Act) you suffered; and
(b)
you suffered your injury while covered by a certificate in force under paragraph 23AD(1)(a) of the Income Tax Assessment Act 1936; and
(c)
your injury or disease caused the loss of your pay or allowance; and
(d)
your pay or allowance was payable under the Defence Act 1903 or under a determination under that Act.
(2)
A compensation payment for the loss of pay or an allowance for your warlike service is exempt from income tax if:
(a)
the compensation payment is made under the Military Rehabilitation and Compensation Act 2004 in respect of a service injury or disease (as defined in that Act); and
(b)
you sustained your service injury or contracted your service disease, or your service injury or disease was aggravated or materially contributed to, while covered by a certificate in force under paragraph 23AD(1)(a) of the Income Tax Assessment Act 1936; and
(c)
your injury or disease caused the loss of your pay or allowance; and
(d)
your pay or allowance was payable under the Defence Act 1903 or under a determination under that Act.
(3)
Subsections (4) and (5) apply to:
(a)
a deployment allowance; or
(b)
some other allowance that is exempt from income tax specified in writing by the Minister administering section 1 of the Defence Act 1903 for the purposes of this subsection;
that is payable under a determination under that Act for your non‑warlike service.
(4)
A compensation payment for the loss of the allowance is exempt from income tax if:
(a)
the compensation payment is made under the Safety, Rehabilitation and Compensation Act 1988 in respect of an injury (as defined in that Act) you suffered; and
(b)
your injury caused the loss of your allowance.
(5)
A compensation payment for the loss of the allowance is exempt from income tax if:
(a)
the compensation payment is made under the Military Rehabilitation and Compensation Act 2004 in respect of a service injury or disease (as defined in that Act); and
(b)
your injury or disease caused the loss of your allowance.

51‑33Compensation payments for loss of pay and/or allowances as a Defence reservist

(1)
A compensation payment for the loss of your pay or an allowance is exempt from income tax if:
(a)
the compensation payment is made under the Safety, Rehabilitation and Compensation Act 1988 in respect of an injury (as defined in that Act) you suffered; and
(b)
you suffered your injury while serving as a member of the Naval Reserve, Army Reserve or Air Force Reserve (but not while on continuous full time service); and
(c)
your pay or allowance was payable for service of a kind described in paragraph (b).
(2)
A compensation payment for the loss of your pay or an allowance is exempt from income tax if:
(a)
the compensation payment is made under the Military Rehabilitation and Compensation Act 2004 in respect of a service injury or disease (as defined in that Act); and
(b)
you sustained your service injury or contracted your service disease, or your service injury or disease was aggravated or materially contributed to, while serving as a member of the Naval Reserve, Army Reserve or Air Force Reserve; and
(c)
your pay or allowance was payable for service of a kind described in paragraph (b); and
(d)
the compensation payment is worked out by reference to your normal earnings (as defined in that Act) as a part‑time Reservist (as defined in that Act).

After Subdivision 52‑C

Insert:

Subdivision 52‑CA—Exempt payments under the Military Rehabilitation and Compensation Act 2004

Guide to Subdivision 52‑CA

52‑112What this Subdivision is about

This Subdivision tells you:
(a)
the payments under the Military Rehabilitation and Compensation Act 2004 that are wholly or partly exempt from income tax; and
(b)
any special circumstances, conditions or exceptions that apply to a payment in order for it to be exempt; and
(c)
how to work out how much of a payment is exempt.

Table of sections

Operative provisions
52‑114 How much of a payment under the Military Rehabilitation and Compensation Act is exempt?
i.
[This is the end of the Guide.]

Operative provisions

52‑114How much of a payment under the Military Rehabilitation and Compensation Act is exempt?

(1)
The table in this section tells you about the income tax treatment of payments under the Military Rehabilitation and Compensation Act 2004. References in the table to provisions are to provisions of that Act.
(2)
Expressions used in this Subdivision that are also used in the Military Rehabilitation and Compensation Act 2004 have the same meanings as in that Act.
(3)
Ordinary payment means a payment other than a payment made because of a person’s death.

Income tax treatment of Military Rehabilitation and Compensation Act payments
Item	Category of payment and provision under which it is paid	Ordinary payment	Payment because of a person’s death
1	Alterations to aids and appliances relating to rehabilitation (section 57)	Exempt	Not applicable
2	Compensation for journey and accommodation costs (sections 47, 290, 291 and 297 and subsection 328(4))	Exempt	Not applicable
3	Compensation for permanent impairment (sections 68, 71, 75 and 80)	Exempt	Exempt
4	Compensation for financial advice (sections 81, 205 and 239)	Exempt	Not applicable
5	Compensation for incapacity for Permanent Forces member or continuous full‑time Reservist (section 85)	See section 51‑32	Exempt
6	Compensation for incapacity for part‑time Reservists (section 86)	See section 51‑33	Exempt
7	Compensation by way of Special Rate Disability Pension (section 200)	Exempt	Not applicable
8	Compensation under the Motor Vehicle Compensation Scheme (section 212)	Exempt	Not applicable
9	Compensation for household services and attendant care services (sections 214 and 217)	Exempt	Not applicable
10	Telephone allowance (sections 221 and 245)	Exempt	Not applicable
11	Compensation for loss or damage to medical aids (section 226)	Exempt	Not applicable
12	Compensation for a wholly dependent partner for a member’s death (section 233)	Not applicable	Exempt
13	Continuing permanent impairment and incapacity etc. compensation for a wholly dependent partner (subparagraphs 242(1)(a)(i) and (iii))	Not applicable	Exempt
14	Compensation for eligible young persons who were dependent on deceased member (section 253)	Not applicable	Exempt
15	Continuing permanent impairment and incapacity etc. compensation for eligible young persons (subparagraphs 255(1)(c)(i) and (iii))	Not applicable	Exempt
16	Education and training, or a payment, under the education scheme for certain eligible young persons (section 258)	Exempt if provided for or made to a person under 16	Exempt
17	Compensation for other persons who were dependent on deceased member (section 262)	Not applicable	Exempt
18	Compensation for cost of a funeral (section 266)	Not applicable	Exempt
19	Compensation for treatment costs (sections 271, 272 and 273)	Exempt	Not applicable
20	Pharmaceutical allowance (section 300)	Exempt	Not applicable
21	Special assistance (section 424)	Exempt	Exempt

After subparagraph 52‑145(1)(b)(iii)

Insert:
(iiia)
the scheme under section 258 of the Military Rehabilitation and Compensation Act 2004 to provide education and training; or
13
Subsection 995‑1(1) (definition of ordinary payment)
Omit “and 52‑65”, substitute “, 52‑65 and 52‑114”.

Part 3Application and amendment of assessments14

Application of amendments

(1) The amendments made by Part 1 of this Schedule apply to assessments for the 2004‑05 year of income and later years of income.
(2) Subject to subitem (3), the amendments made by Part 2 of this Schedule apply to assessments for the 2004‑05 income year and later income years.
(3) Subsections 51‑32(1) and (4) and 51‑33(1) of the Income Tax Assessment Act 1997, substituted by item 10 of this Schedule, apply to assessments for the 1996‑97 income year and later income years.

Amendment of assessments

Section 170 of the Income Tax Assessment Act 1936 does not prevent the amendment of an assessment made before the commencement of this item for the purposes of giving effect to subsections 51‑32(1) and (4) and 51‑33(1) of the Income Tax Assessment Act 1997 substituted by item 10 of this Schedule.

Endnotes

Endnote 1About the endnotes

The endnotes provide information about this compilation and the compiled law.

The following endnotes are included in every compilation:

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Abbreviation key—Endnote 2

The abbreviation key sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history—Endnotes 3 and 4

Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.

The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.

Editorial changes

The Legislation Act 2003 authorises First Parliamentary Counsel to make editorial and presentational changes to a compiled law in preparing a compilation of the law for registration. The changes must not change the effect of the law. Editorial changes take effect from the compilation registration date.

If the compilation includes editorial changes, the endnotes include a brief outline of the changes in general terms. Full details of any changes can be obtained from the Office of Parliamentary Counsel.

Misdescribed amendments

A misdescribed amendment is an amendment that does not accurately describe how an amendment is to be made. If, despite the misdescription, the amendment can be given effect as intended, then the misdescribed amendment can be incorporated through an editorial change made under section 15V of the Legislation Act 2003.

If a misdescribed amendment cannot be given effect as intended, the amendment is not incorporated and “(md not incorp)” is added to the amendment history.

Endnote 2Abbreviation key

ad = added or inserted	o = order(s)
am = amended	Ord = Ordinance
amdt = amendment	orig = original
c = clause(s)	par = paragraph(s)/subparagraph(s)
C[x] = Compilation No. x	/sub‑subparagraph(s)
Ch = Chapter(s)	pres = present
def = definition(s)	prev = previous
Dict = Dictionary	(prev…) = previously
disallowed = disallowed by Parliament	Pt = Part(s)
Div = Division(s)	r = regulation(s)/rule(s)
ed = editorial change	reloc = relocated
exp = expires/expired or ceases/ceased to have	renum = renumbered
effect	rep = repealed
F = Federal Register of Legislation	rs = repealed and substituted
gaz = gazette	s = section(s)/subsection(s)
LA = Legislation Act 2003	Sch = Schedule(s)
LIA = Legislative Instruments Act 2003	Sdiv = Subdivision(s)
(md) = misdescribed amendment can be given	SLI = Select Legislative Instrument
effect	SR = Statutory Rules
(md not incorp) = misdescribed amendment	Sub‑Ch = Sub‑Chapter(s)
cannot be given effect	SubPt = Subpart(s)
mod = modified/modification	underlining = whole or part not
No. = Number(s)	commenced or to be commenced

Endnote 3Legislation history

Act	Number and year	Assent	Commencement	Application, saving and transitional provisions
Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004	52, 2004	27 Apr 2004	s 4–24 and Sch 1–4: 1 July 2004 (s 2(1) items 2–7) Remainder: 27 Apr 2004 (s 2(1) item 1)
Veterans’ Entitlements (Clarke Review) Act 2004	100, 2004	30 June 2004	Sch 6 (items 1–4): 1 July 2004 (s 2(1) item 8)	—
Statute Law Revision Act 2005	100, 2005	6 July 2005	Sch 2 (item 22): 1 July 2004 (s 2(1) item 40)	—
Veterans’ Affairs Legislation Amendment (Statements of Principles and Other Measures) Act 2007	29, 2007	15 Mar 2007	Sch 4 (item 30): 16 Mar 2007 (s 2(1) item 7)	—
Veterans’ Affairs Legislation Amendment (2007 Measures No. 1) Act 2007	89, 2007	21 June 2007	Sch 3: 1 July 2004 (s 2(1) items 20, 21)	—
Veterans’ Affairs Legislation Amendment (Military Compensation Review and Other Measures) Act 2013	99, 2013	28 June 2013	Sch 10 (items 1–8): 1 July 2013 (s 2(1) item 4)	Sch 10 (item 8)
Safety, Rehabilitation and Compensation Legislation Amendment (Defence Force) Act 2017	108, 2017	14 Sept 2017	Sch 3 (items 22–42): 12 Oct 2017 (s 2(1) item 5)	Sch 3 (items 34, 37)
Veterans’ Entitlements, Treatment and Support (Simplification and Harmonisation) Act 2025	17, 2025	20 Feb 2025	Sch 3 (items 108–109): 21 Apr 2025 (s 2(1) item 3) Sch 7 (items 2–17): 1 July 2026 (s 2(1) item 5)	—

Endnote 4Amendment history

Provision affected	How affected
Part 1
s 3.............................................	rep No 17, 2025
s 4.............................................	am No 108, 2017; No 17, 2025 (Sch 7 items 3–5)
s 5.............................................	am No 17, 2025
s 6.............................................	rs No 17, 2025
Part 2
Part 2.........................................	rs No 17, 2025
s 7.............................................	am No 100, 2004; No 99, 2013; No 108, 2017
rs No 17, 2025
s 8.............................................	am No 100, 2004; No 99, 2013; No 108, 2017
rep No 17, 2025
s 9.............................................	rs No 99, 2013
rep No 17, 2025
s 10............................................	am No 108, 2017
rep No 17, 2025
s 11............................................	am No 108, 2017
rep No 17, 2025
Part 3
Part 3 heading.............................	rs No 108, 2017
s 12............................................	rep No 99, 2013
ad No 17, 2025
s 13............................................	am No 99, 2013; No 108, 2017; No 17, 2025
s 14............................................	am No 108, 2017
s 14A.........................................	ad No 17, 2025
Part 4
Part 4 heading.............................	am No 17, 2025
s 15............................................	am No 108, 2017
rep No 17, 2025
s 16............................................	am No 108, 2017
rep No 17, 2025
s 17............................................	am No 108, 2017
rep No 17, 2025
s 18............................................	am No 108, 2017
rep No 17, 2025
s 19............................................	rep No 17, 2025
s 20............................................	rep No 17, 2025
s 21............................................	rep No 17, 2025
s 22............................................	am No 108, 2017; No 17, 2025
s 23............................................	am No 108, 2017; No 17, 2025
s 24............................................	am No 108, 2017
Part 5
Part 5.........................................	ad No 17, 2025
Division 1
s 25............................................	ad No 17, 2025
Division 2
s 26............................................	ad No 17, 2025
s 27............................................	ad No 17, 2025
s 28............................................	ad No 17, 2025
Division 3
s 29............................................	ad No 17, 2025
s 30............................................	ad No 17, 2025
s 31............................................	ad No 17, 2025
s 32............................................	ad No 17, 2025
s 33............................................	ad No 17, 2025
s 34............................................	ad No 17, 2025
s 35............................................	ad No 17, 2025
Division 4
s 36............................................	ad No 17, 2025
s 37............................................	ad No 17, 2025
s 38............................................	ad No 17, 2025
s 39............................................	ad No 17, 2025
Part 6
Part 6.........................................	ad No 17, 2025
Division 1
s 40............................................	ad No 17, 2025
Division 2
Subdivision A
s 41............................................	ad No 17, 2025
s 42............................................	ad No 17, 2025
s 43............................................	ad No 17, 2025
s 44............................................	ad No 17, 2025
s 45............................................	ad No 17, 2025
s 46............................................	ad No 17, 2025
s 47............................................	ad No 17, 2025
Subdivision B
s 48............................................	ad No 17, 2025
s 49............................................	ad No 17, 2025
s 50............................................	ad No 17, 2025
s 51............................................	ad No 17, 2025
s 52............................................	ad No 17, 2025
s 53............................................	ad No 17, 2025
Division 3
Subdivision A
s 54............................................	ad No 17, 2025
s 55............................................	ad No 17, 2025
s 56............................................	ad No 17, 2025
s 57............................................	ad No 17, 2025
s 58............................................	ad No 17, 2025
s 59............................................	ad No 17, 2025
s 60............................................	ad No 17, 2025
Subdivision B
s 61............................................	ad No 17, 2025
s 62............................................	ad No 17, 2025
s 63............................................	ad No 17, 2025
s 64............................................	ad No 17, 2025
s 65............................................	ad No 17, 2025
s 66............................................	ad No 17, 2025
Division 4
Subdivision A
s 67............................................	ad No 17, 2025
s 68............................................	ad No 17, 2025
s 69............................................	ad No 17, 2025
s 70............................................	ad No 17, 2025
s 71............................................	ad No 17, 2025

s 72............................................	ad No 17, 2025
Subdivision B
s 73............................................	ad No 17, 2025
s 74............................................	ad No 17, 2025
s 75............................................	ad No 17, 2025
s 76............................................	ad No 17, 2025
s 77............................................	ad No 17, 2025
Division 5
Subdivision A
s 78............................................	ad No 17, 2025
s 79............................................	ad No 17, 2025
s 80............................................	ad No 17, 2025
s 81............................................	ad No 17, 2025
Subdivision B
s 82............................................	ad No 17, 2025
s 83............................................	ad No 17, 2025
s 84............................................	ad No 17, 2025
s 85............................................	ad No 17, 2025
s 86............................................	ad No 17, 2025
s 87............................................	ad No 17, 2025
Division 6
Subdivision A
s 88............................................	ad No 17, 2025
s 89............................................	ad No 17, 2025
s 90............................................	ad No 17, 2025
s 91............................................	ad No 17, 2025
s 92............................................	ad No 17, 2025
s 93............................................	ad No 17, 2025
s 94............................................	ad No 17, 2025
s 95............................................	ad No 17, 2025
s 96............................................	ad No 17, 2025
s 97............................................	ad No 17, 2025
s 98............................................	ad No 17, 2025
s 99............................................	ad No 17, 2025
s 100..........................................	ad No 17, 2025
s 101..........................................	ad No 17, 2025
s 102..........................................	ad No 17, 2025
s 103..........................................	ad No 17, 2025
s 104..........................................	ad No 17, 2025
Subdivision B
s 105..........................................	ad No 17, 2025
s 106..........................................	ad No 17, 2025
s 107..........................................	ad No 17, 2025
s 108..........................................	ad No 17, 2025
s 109..........................................	ad No 17, 2025
s 110..........................................	ad No 17, 2025
s 111..........................................	ad No 17, 2025
s 112..........................................	ad No 17, 2025
s 113..........................................	ad No 17, 2025
s 114..........................................	ad No 17, 2025
s 115..........................................	ad No 17, 2025
s 116..........................................	ad No 17, 2025
s 117..........................................	ad No 17, 2025
s 118..........................................	ad No 17, 2025
s 119..........................................	ad No 17, 2025
s 120..........................................	ad No 17, 2025
Subdivision C
s 121..........................................	ad No 17, 2025
Subdivision D
s 122	ad No 17, 2025
Schedule 1
Schedule 1..................................	am No 29, 2007; No 89, 2007
rep No 17, 2025
Schedule 2
Schedule 2..................................	rep No 17, 2025
Schedule 3
Schedule 3..................................	am No 100, 2005
rep No 17, 2025
Schedule 4
Schedule 4..................................	rep No 17, 2025