 One of the most common questions we get from veterans is regarding the different compensation acts they may be under. In this article we will unpack the intricacies of the Military Rehabilitation and Compensation Act 2004, also known as MRCA. Who does the MRCA cover? MRCA is for Australian Defence Force (ADF) members who served on or after 1 July 2004. You can find further detail on who is covered by visiting the Department of Veteran Affairs website. What compensation is available? Permanent Impairment (PI) Payments A PI payment compensates for the member’s pain, suffering, and loss of lifestyle as a consequence of injuries or disease sustained during service. These payments are calculated on a range of factors, including your impairment points and service history. Impairment points assess both the severity of your impairments and their impact on your daily life. Once assessed, PI offers can be paid in a lump sum or in smaller weekly amounts. Either way, the payment is fully tax free. Have you received a PI offer? DVA recommends that you seek legal or financial advice prior to accepting your PI offer. If you have over 50 points, have not accepted your offer, and are under MRCA, you can be covered for the cost of this advice. You can find out more about next steps here. Incapacity payments While PI payments grant compensation for lifestyle impacts (including pain and suffering), Incapacity Payments are intended to account for economic loss if you are unable to work or must work at a reduced capacity due to your injury or disease. These are income related payments, meaning that they are usually taxed, except if they are replacing income that is also except from taxation. Special Rate Disability Pension (SRDP) If you have:
You are likely eligible to apply for SRDP. If you are offered SRDP, you will then be given the option between remaining on incapacity payments or taking the SRDP offer. SRDP is offset by other compensation payments and Commonwealth superannuation payments, so it may not always be the best choice for you. You can learn more about SRDP offers here. Have you received an SRDP offer? DVA requires that you seek legal or financial advice prior to electing your choice. If you are under MRCA, you are covered for the cost of this advice. You can contact our office for next steps. Compensation following death There are various entitlements that partners or eligible young persons of deceased members may be entitled to. You can find a full list of these entitlements here. You can learn more about MRCA and its associated concessions here.
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