Guide to Determining Impairment and Compensation 2016

Administered by Department of Veterans' Affairs

Legislation au F2016L01290 Not in force Legislative Instrument

Legislation content

Guide to Determining Impairment and Compensation 2016

Instrument 2016 No. MRCC37

made under subsection 67(1) of the

Military Rehabilitation and Compensation Act 2004

Compilation No. 2

Compilation date: 4 March 2025

Includes amendments: F2025L00271

This compilation is in 2 volumes

Volume 1: sections 1–7

 Schedule

Volume 2: The Guide

 Endnotes

About this compilation

This compilation

This is a compilation of the Guide to Determining Impairment and Compensation 2016 that shows the text of the law as amended and in force on 4 March 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 (www.legislation.gov.au). 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If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

 

 

 

1.  Name

This instrument is the Guide to Determining Impairment and Compensation 2016.

 

2.  Short Title

The short title for this instrument is GARP M.

 

4.  Transitional

A process (e.g. an assessment) commenced under the Guide to Determining Impairment and Compensation (Instrument 2015 No. MRCC4) and not finalised before the commencement of this instrument may be completed under this instrument as if the process had been commenced under this instrument.

 

5.  Guide determination

For the purposes of section 67 of the Military Rehabilitation and Compensation Act 2004, it is determined by the Military Rehabilitation and Compensation Commission that the following Guide to Impairment and Compensation applies as the guide for the determination of the degree of impairment and lifestyle ratings when determining the compensation payable to a person under the Military Rehabilitation and Compensation Act 2004.

 

6.  Power under C&T Act

(1) Subsection 13(4) of the C&T Act provides that the MRCC 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 for a service injury or disease where a person also has:

(a) a separate war-caused or defence-caused injury or disease (within the meaning of the VEA); or

(b) a separate injury or disease (within the meaning of the SRCA).

(2) A method may (but does not have to) include a method of offsetting payments made to the person under the VEA or SRCA in respect of the old injury or disease.

(3) In this section:

C&T Act means the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004.

MRCA means the Military Rehabilitation and Compensation Act 2004.

MRCC means the Military Rehabilitation and Compensation Commission.

SRCA means the Safety, Rehabilitation and Compensation Act 1988.

VEA means the Veterans’ Entitlements Act 1986.

 

 

7.  Application provisions

 

The application provisions in the Schedule have effect.

Schedule

 

 

Application provisions

 

(a) In this Schedule:

Commencement day means the day on which GARP M (Transitional Impairment Methodology and Interim Permanent Impairment Lifestyle Methodology) Amendment Determination 2013 commenced.

Note: GARP M (Transitional Impairment Methodology and Interim Permanent Impairment Lifestyle Methodology) Amendment Determination 2013 commenced on 1 July 2013.

Commission means the Military Rehabilitation and Compensation Commission.

permanent impairment, in relation to a person, means the person’s impairment for which compensation is payable under Chapter 4 of Part 2 of the Military Rehabilitation and Compensation Act 2004 (MRCA).

 

(b) Subject to paragraphs (c) and (d), the provisions of Chapter 25 of GARP M (as in force on the commencement day) are taken to apply to all claims to which section 13 of the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004 applies on and from 1 July 2004.

 

(c) Subject to paragraph (e), if,

(i) a person is a person whose permanent impairment was calculated under Chapter 25 as it applied prior to the commencement day (pre-existing methodology); and

(ii) on or after the commencement day, the application of the methodology in Chapter 25 of GARP M as in force on the commencement day (new methodology) would result in a lower amount of compensation for that person for the same condition and level of impairment that applied on the day that the last determination was made before 1 July 2013:

then, the methodology that is to apply to that person in relation to that condition and impairment on and after the commencement day is the pre-existing methodology.

 

(d) Subject to paragraph (e), if,

(i) a person has made a claim in respect of a permanent impairment before 1 July 2013; and

(ii) the claim has not been determined before 1 July 2013;

then, the methodology that is to apply to that person in relation to that condition and impairment on and after the commencement day is the pre-existing methodology.

 

(e) For a person to whom paragraph (c) or (d) applies, the pre-existing methodology is to apply until a determination of the amount of compensation payable for a person’s permanent impairment using the new methodology results in a change in the amount of compensation payable.

 

(f) Despite section 3, this instrument is taken not to apply retrospectively to 2 July 2015 in respect of a claim lodged by a person on or after that date and before the registration of this instrument, to the extent that the application of the new methodology would result in a lower amount of compensation for that person in respect of that claim than the person would have received if the pre-existing methodology had been applied to determine the person’s permanent impairment for that claim.

 

Overview

The Guide to Determining Impairment and Compensation 2016, made under subsection 67(1) of the Military Rehabilitation and Compensation Act 2004, serves as a critical tool for the Military Rehabilitation and Compensation Commission (MRCC) in determining the degree of impairment and lifestyle ratings for the purpose of calculating compensation payable to persons under the Act. The instrument was enacted to provide a consistent and transparent framework for assessing the extent of impairment and the corresponding compensation. It addresses the need to align compensation assessments with contemporary medical and rehabilitation practices, ensuring that veterans and their families receive fair and equitable compensation for service-related injuries and diseases. The instrument aims to balance the interests of claimants with the objectives of the Military Rehabilitation and Compensation Act 2004, providing a method for calculating compensation that is both just and sustainable.

Scope and Application

The Guide to Determining Impairment and Compensation 2016 is a legislative instrument made under the Military Rehabilitation and Compensation Act 2004, designed to establish the methodologies for determining the degree of impairment and lifestyle ratings for compensation purposes under the Military Rehabilitation and Compensation Act. This guide applies to all claims for compensation related to permanent impairment resulting from military service, as defined under the Act, and encompasses both new claims and those pending as of the commencement date of this instrument. The instrument applies to individuals who have sustained injuries or diseases during their military service and are seeking compensation under the Act. It includes transitional provisions allowing processes initiated under previous guides to be completed under this updated guide, ensuring continuity for ongoing claims. The application of this guide can vary depending on whether the claimant's impairment was calculated under the previous or new methodology, with provisions in place to protect those who would receive less compensation under the new methodology. The instrument also outlines the powers of the Military Rehabilitation and Compensation Commission in determining compensation amounts, including methods to offset payments made under other Acts.

Key Provisions

The Guide to Determining Impairment and Compensation 2016 (sections 1-7 and Schedule) provides the framework for determining the degree of impairment and lifestyle ratings for the purpose of calculating compensation under the Military Rehabilitation and Compensation Act 2004 (MRCA). This guide determines the methodologies that the Military Rehabilitation and Compensation Commission (MRCC) must use when assessing the degree of impairment and lifestyle ratings for individuals who have sustained service injuries or diseases. The guide also allows for the inclusion of methods to offset payments made under other relevant acts, such as the Veterans’ Entitlements Act 1986 (VEA) or the Safety, Rehabilitation and Compensation Act 1988 (SRCA). The Act imposes several obligations on the MRCC. It requires the MRCC to apply the methodologies set out in the Guide when determining the degree of impairment and lifestyle ratings for compensation purposes under the MRCA. This includes applying either the pre-existing methodology or the new methodology, depending on the circumstances of the claim and the date it was lodged. Additionally, the MRCC must ensure that the application of the new methodology does not result in a lower amount of compensation for individuals whose claims were lodged before 1 July 2013. Failure to comply with the provisions of this guide may result in civil or criminal consequences, although specific offences, penalties, or consequences are not detailed within the text provided. Typically, breaches of legislative instruments can lead to fines, imprisonment, or other penalties as stipulated in the primary Act or related legislation. However, the exact penalties for breaches of this guide would need to be referenced in the MRCA or other relevant Acts. The guide ensures that any transitional assessments can be completed under its provisions, maintaining continuity in the assessment process for those affected by changes in methodology.

Legal classification tags

Area of Law
Compensation Law
Instrument
Legislative Instrument
Concepts
Commencement Provisions
Transitional Provisions
Compensation Calculation

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.