EXPLANATORY STATEMENT
Issued by the authority of the Minister for Veterans' Affairs
Military Rehabilitation and Compensation Act 2004
MRCA Instrument No.6 of 2004
DETERMINATION OF RATE OF INTEREST
The Military Rehabilitation and Compensation Act 2004 (MRC Act) provides
compensation payments for injury, disease or death caused by service in the
Australian Defence Force.
Section 78 provides that a person may choose to receive compensation payments in
the form of weekly payments or a lump sum. Where a person chooses to receive a
lump sum, subsection 79(1) requires that it be paid within 30 days after the date on
which the Military Rehabilitation and Compensation Commission became aware of
the choice.
If the lump sum is not paid within this time, subsection 79(2) requires the
Commonwealth to pay interest at a rate set by the Minister in writing under subsection
79(3). This provision is similar to subsection 26(3) of the Safety, Rehabilitation and
Compensation Act 1988.
The purpose of the instrument to which this Explanatory Statement relates is to
specify that the rate of interest is the weighted average yield derived from the
Treasury note tender for ninety day notes settled immediately before the last day of
the 30 day settlement period. This rate also applies for the purposes of subsection
26(3) of the Safety, Rehabilitation and Compensation Act 1988.
The interest rate will come into effect from 1 July 2004.
By virtue of subsection 79(4) of the MRC Act, the instrument is a disallowable
instrument for the purposes of section 46A of the Acts Interpretation Act 1901.