EXPLANATORY STATEMENT
Issued by the authority of the Minister for Veterans’ Affairs
Military Rehabilitation and Compensation Act 2004
Section 67
(MRCA Instrument No. 1 of 2004)
GUIDE TO DETERMINING IMPAIRMENT AND COMPENSATION
The purpose and operation of GARP V (M)
The Military Rehabilitation and Compensation Act 2004 (the Act) provides for compensation and rehabilitation for members and former members of the Australian Defence Force who sustain injury or disease as a result of their service.
Where the Military Rehabilitation and Compensation Commission (the Commission) has accepted liability for an injury or disease which results in permanent impairment, compensation is payable if the degree of that impairment is above a certain level. Section 67 of the Act provides that the Commission may determine in writing a guide to determining the level of impairment and compensation.
The purpose of the instrument to which this Explanatory Statement relates is to adopt and modify a similar guide prepared by the Repatriation Commission under the Veterans’ Entitlements Act 1986 (VEA) known as the Guide to the Assessment of Rates of Veterans’ Pensions Fifth Edition (GARP V). This guide sets out the criteria to assess the degree of impairment from a service injury or disease and to provide criteria for assessing the effect of impairment on a person’s lifestyle when determining the compensation payable to a person under the VEA.
The guide, determined under the Act, is to be known as GARP V (M).
This guide will be used in the same way as the GARP V under the VEA. Paragraph 67(1)(b) of the Act states that impairment will be assessed on a point scale from 0 to 100, as impairment points are used elsewhere as thresholds for the provision of certain benefits. Impairment points and lifestyle rating will be combined to determine the amount of compensation payable. This will be expressed as a compensation factor on a scale from 0 to 1. The compensation factor will be applied to the maximum amount payable under section 74 of the Act.
Subsection 67(2) of the Act requires the Commission to specify two methods that are not used in GARP V. These are tables used to determine compensation payable for warlike and non-warlike service as distinct from peacetime service, because different compensation factors will apply for the same impairment and lifestyle rating.
In addition the Commission must specify a method for calculating compensation payable when a mixture of warlike or non-warlike service and peacetime service applies, as the compensation payable for impairment will be a weighted average.
Under subsection 13(4) of the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004 the Commission may include in the guide under section 67 of the Act one or more methods of working out the amount of compensation a person is entitled to under Part 2 of Chapter 4 of the Act (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 Safety, Rehabilitation and Compensation Act 1988 in respect of the old injury or disease.
Under subsection 67(4) of the Act, the guide, and any repeal or amendment of the guide, is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.
This determination comes into effect on 1 July 2004.
Documents Incorporated by Reference
Certain chapters of the Guide to the Assessment of Rates of Veterans’ Pensions (GARP V)
GARP V is available on the Web page of the Department of Veterans’ Affairs http://www.dva.gov.au/pensions/ [search for “CLIK”]
Consultation
A Working Group of Ex-Service Organisations, that comprised 11 organisations that represent veterans, members and former members, and their families, was consulted. The Department of Defence was part of the joint project team developing the new Act.
Retrospective Operation
None. The Instrument was made on 21 June 2004 and commenced on 1 July 2004.The instrument was notified in Commonwealth of Australia Gazette No. GN 27, 7 July 2004.
Overview
The Military Rehabilitation and Compensation Act 2004 was enacted by the Parliament of Australia to provide for compensation and rehabilitation for current and former members of the Australian Defence Force who have sustained injury or disease as a result of their service. This legislation fills a critical gap in providing structured support for service personnel affected by their duties. The Act empowers the Military Rehabilitation and Compensation Commission to determine a guide for assessing the level of impairment and compensation payable to eligible individuals, as outlined in section 67. The explanatory statement indicates that the guide, referred to as GARP V (M), is an adaptation of the Guide to the Assessment of Rates of Veterans' Pensions Fifth Edition (GARP V), previously used under the Veterans' Entitlements Act 1986. This guide is designed to standardise the assessment of impairment and its impact on the lifestyle of affected individuals, thereby ensuring fair and consistent compensation. The policy objective is to streamline the process of determining the compensation factor, which is applied to the maximum amount payable under section 74 of the Act, thus ensuring that compensation reflects the actual degree of impairment and its effects.
Scope and Application
The Military Rehabilitation and Compensation Act 2004 applies to members and former members of the Australian Defence Force who have sustained injury or disease as a result of their service, providing them with compensation and rehabilitation. The Act’s scope includes the determination of impairment and compensation, as outlined in the Guide to Determining Impairment and Compensation (GARP V (M)). This guide, adopted and modified from the Guide to the Assessment of Rates of Veterans’ Pensions (GARP V) under the Veterans’ Entitlements Act 1986, sets criteria for assessing the degree of impairment and its effect on a person’s lifestyle to determine compensation. Impairment is assessed on a point scale from 0 to 100, combined with a lifestyle rating to determine a compensation factor on a scale from 0 to 1, which is then applied to the maximum amount payable. The guide also specifies methods for calculating compensation for warlike and non-warlike service, as well as mixed service scenarios. The guide, including any amendments or repeals, is a disallowable instrument under the Acts Interpretation Act 1901. The determination, which commenced on 1 July 2004, was developed in consultation with a Working Group of Ex-Service Organisations and the Department of Defence, ensuring it reflects the needs of the affected parties.
Key Provisions
The Military Rehabilitation and Compensation Act 2004 (the Act) provides for compensation and rehabilitation for members and former members of the Australian Defence Force who sustain injury or disease as a result of their service. Section 67 of the Act allows the Military Rehabilitation and Compensation Commission (the Commission) to determine in writing a guide to determining the level of impairment and compensation. This guide, known as GARP V (M), is used to assess the degree of impairment from a service injury or disease and to provide criteria for assessing the effect of impairment on a person’s lifestyle when determining the compensation payable. Impairment is assessed on a point scale from 0 to 100, and combined with a lifestyle rating to determine the amount of compensation payable. The Commission must also specify two methods for determining compensation payable for warlike and non-warlike service, and a method for calculating compensation payable when a mixture of warlike or non-warlike service and peacetime service applies.
The obligations and requirements imposed by the Act include the requirement for the Commission to determine the guide in writing and to specify the two methods for calculating compensation. The guide and any repeal or amendment of the guide is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901. The guide is to be used in the same way as the Guide to the Assessment of Rates of Veterans’ Pensions Fifth Edition (GARP V) under the Veterans’ Entitlements Act 1986 (VEA). The instrument was made on 21 June 2004 and commenced on 1 July 2004.
The Act also provides for offences, penalties, or civil/criminal consequences for breach. However, the Explanatory Statement does not provide specific information on the penalties or consequences for breach of the Act. It is important to note that the guide and any repeal or amendment of the guide is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901, which means that the guide can be disallowed by either house of Parliament.