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Review of Military Compensation Arrangements Report - Volume 2

This report was released on 18 March 2011.

Part 2. Operation of the Military Rehabilitation and Compensation Act

5. Initial liability and the Statements of Principles

  • Initial liability and the Statements of Principles (HTML)   
    Initial liability and the Statements of Principles (PDF 307 KB)   
    • Introduction.
    • Background.
    • Submissions.
    • Introduction of the Statements of Principles.
    • Repatriation Medical Authority and the Specialist Medical Review Council
    • Review of the Statements of Principles.
    • Discretionary powers to override a Statement of Principles.
    • Acceptance rates between the Safety, Rehabilitation and Compensation Act and the Military Rehabilitation and Compensation Act
    • Difficulties with the ‘occurrence’ test under the Military Rehabilitation and Compensation Act
    • Liability and personal fitness regimes.
    • Provisions excluding the acceptance of liability.
    • Submissions relating to liability exclusions.
    • Conclusions.

6. Rehabilitation

  • Rehabilitation (HTML)  
    Rehabilitation (PDF 346 KB)  
    • Introduction.
    • Background.
    • Department of Veterans’ Affairs research.
    • Legislative and policy issues identified by stakeholders relating to rehabilitation.
    • Possible legislative and policy changes and improvements to claims administration and service delivery for rehabilitation clients.
    • Conclusions.
       

7. Transition management

  • Transition Management (HTML)  
    Transition Management (PDF 352 KB) 
    • Introduction.
    • Background.
    • Submissions.
    • Reviews in 2008 and 2009.
    • Current initiatives.
    • Moves towards a seamless transition.
    • Tri-service administration.
    • Timing of transfer from Defence to the Military Rehabilitation and Compensation Commission — rehabilitation and transition.
    • Rehabilitation authority and transition management for part-time Reservists.
    • Advice and assistance to clients.
    • Case managers.
    • Monitoring of transition service performance.
    • Information on the websites.
    • Conclusions. 

8. Permanent impairment compensation

  • Permanent impairment Compensation (HTML) 
    Permanent impairment compensation (PDF 467 KB)
    • Introduction.
    • Background.
    • Permanent impairment compensation differential
    • Age-based lump sums.
    • Multiple conditions and the whole person impairment methodology.
    • Date of effect of permanent impairment compensation payments.
    • Stabilisation.
    • Limit on damages against the Commonwealth or other liable parties for non-economic loss 
    • Choice to institute action for damages against the Commonwealth or other liable parties for non-economic loss.
    • Conclusions. 

9. Death benefit provisions

  • Death benefit provisions (HTML)  
    Death benefit provisions (PDF 520 KB)
    • Introduction.
    • Background.
    • Degree of financial support provided to a wholly dependent partner
    • Rationale for age-based lump sums.
    • Restructuring the existing wholly dependent partner death benefit
    • Differentials in wholly dependent partner compensation.
    • Benefits for eligible young persons.
    • Definition of dependant and other issues.
    • Conclusions. 

Appendix to Chapter 9: Wholly dependent partner scenarios

10. Incapacity payments

  • Incapacity payments (HTML)  
    Incapacity payments (PDF 319 KB)  
    • Introduction.
    • Background.
    • Submissions.
    • Beneficial nature of the Military Rehabilitation and Compensation Act’s incapacity payment provisions.
    • Incapacity payments based on pre-injury earnings.
    • Implications of the ongoing nature of payments.
    • Policy issues surrounding the argument for abandoning the notion of pre-injury earnings 
    • Comprehensive and complex nature of Australian Defence Force remuneration.
    • A multitude of pay-related allowances applies to incapacity pay.
    • A simpler and more efficient approach might be considered.
    • What is a reasonable period for the employer to administer incapacity payments? 
    • Benefit structure may act as impediment to return to work.
    • Numbers in the incapacity payment system: concerns and implications.
    • Wage Price Indexation versus actual movements in salary and allowance rates.
    • Income replacement for self-employed continuous full-time service Reservists.
    • Conclusions.

11. Special Rate Disability Pension

  • Special Rate Disability Pension (HTML)  
    Special Rate Disability Pension (PDF 341 KB)   
    • Introduction.
    • Background.
    • Submissions.
    • Comparisons — Special Rate of pension and Special Rate Disability Pension.
    • Relevance of the Special Rate Disability Pension.
    • Automatic eligibility for invalidity service pension for Special Rate Disability Pension-eligible clients.
    • Special Rate Disability Pension eligibility and commutation of a small amount of weekly compensation for incapacity into lump sum compensation.
    • Impact of taxation reforms on the superannuation offset to the Special Rate Disability Pension
    • Special Rate Disability Pension payment during imprisonment
    • Conclusions.

Appendix to Chapter 11: Incapacitated and severely impaired former member scenarios 

12. Military superannuation and related compensation issues

13. Ancillary benefits

  • Ancillary benefits (HTML) 
    Ancillary benefits (PDF 259 KB) 
    • Introduction.
    • Background.
    • Household services and attendant care provided by spouses.
    • Overlap between household services and attendant care, and the Military Rehabilitation and Compensation Act
    • Home Care program.
    • Level of services for high-dependency clients.
    • Conclusions. 

14. Treatment provisions

  • Treatment provisions (HTML)   
    Treatment provisions (PDF 281 KB) 
    • Introduction.
    • Background.
    • Advantages of Treatment Pathway 2.
    • Needs assessments.
    • Could there be only one pathway?
    • Veterans’ Entitlements Act and Military Rehabilitation and Compensation Act card system compatibility.
    • Conclusions. 

15. Administration

  • Administration (HTML)  
    Administration (PDF 371 KB)
    • Introduction.
    • Background.
    • Key performance indicators.
    • Claim and payment trends.
    • Benchmarking.
    • Time taken to process.
    • Staff and case management issues.
    • Information technology support
    • Quality assurance.
    • Interdepartmental working group.
    • Reform of government administration.
    • Complaints and compliments.
    • Conclusions.

16. Claims

  • Claims (HTML)   
    Claims (PDF 312 KB) 
    • Introduction.
    • Background.
    • Submissions.
    • Structure of the claim form.
    • Lag time from injury to claim.
    • Time limits to report or claim for injury.
    • Single Access Mechanism.
    • Separation Health Examination and Support for Wounded, Injured or Ill Project
    • Provisions for rejecting claims.
    • Irwin case.
    • Conclusions

17. Reconsideration and review

  • Reconsideration and review (HTML)   
    Reconsideration and review (PDF 516 KB) 
    • Introduction.
    • Background.
    • The Military Rehabilitation and Compensation Act determining system.
    • Statistics 
    • Advocacy
    • Veterans’ Review Board
    • Administrative Appeals Tribunal
    • Legal aid 
    • Submissions.
    • Complexities of retaining the two paths.
    • Options for change.
    • Issues to be considered in moves towards a single path.
    • A streamlined Military Rehabilitation and Compensation Act determining system  
    • Veterans’ Review Board general practice direction.
    • Other Veterans’ Review Board matters.
    • Other issues from the submissions.
    • Conclusions.

18. Governance arrangements

  • Governance arrangments (HTML)   
    Governance arrangements (PDF 281 KB) 
    • Introduction.
    • Background.
    • Australian Defence Force coverage under the Occupational Health and Safety Act
    • Funding and ministerial responsibility.
    • Problems with a premium-based model
    • Visibility of military compensation costs.
    • The Defence safety management system.
    • An integrated approach to safety management and military compensation.
    • The Military Rehabilitation and Compensation Commission.
    • Conclusions.

Part 3. Legislative schemes governing military compensation before the Military Rehabilitation and Compensation Act, and any anomalies that exist

19. Compensation offsetting between the Veterans’ Entitlements Act and the Safety, Rehabilitation and Compensation Act

20. Ceasing new claims under the Safety, Rehabilitation and Compensation Act

21. Aggravations of conditions accepted under the Veterans’ Entitlements Act related to service rendered after 1 July 2004

22. Permanent impairment claims that cross multiple Acts

  • Permanent impairment claims that cross multiple Acts (HTML)  
    Permanent impairment claims that cross multiple Acts (PDF 312 KB)  
    • Introduction.
    • Background.
    • Submissions.
    • Permanent impairment compensation under the Military Rehabilitation and Compensation Act
    • Whole person impairment assessment methodology.
    • Compensation offsetting.
    • Transitional provisions under the Military Rehabilitation and Compensation Act
    • Method of calculating permanent impairment under the Military Rehabilitation and Compensation Act for claims that are transitional in nature.
    • Recent case law.
    • Revisiting the offsetting method.
    • Conclusions. 

Appendix to Chapter 22: Alternative method for calculating permanent impairment claims that are transitional in nature

23. Other perceived anomalies

  • Other perceived anomalies (HTML)  
    Other perceived anomalies (PDF 341 KB)  
    • Introduction.
    • Household services and attendant care under the Veterans’ Entitlements Act
    • Motor vehicle compensation scheme.
    • Lump sum payments for Veterans’ Entitlements Act recipients.
    • Telephone allowance for certain Veterans’ Entitlements Act pensioners.
    • Private vehicle travel expenses.
    • Funeral benefits.
    • Benefits for eligible children.
    • Education allowance for eligible young persons.
    • Criteria for certain benefits: the Veterans’ Entitlements Act compared to the Military Rehabilitation and
    • Compensation Act
    • Automatic grant of death benefits for dependants of prisoners of war
    • Conclusions.

Part 4. Medical and financial care provided to Australian Defence Force personnel injured during peacetime service

24. Treatment cards for Safety, Rehabilitation and Compensation Act clients

25. Non-liability health cover for certain conditions

Part 5. Implications of an Australian Defence Force compassionate payment scheme for non-dependants

26. Compassionate payment scheme

Part 6. Suitability of access to military compensation schemes for members of the Australian Federal Police who have been deployed overseas

27. Coverage for Australian Federal Police

  • Coverage for Australian Federal Police (HTML)  
    Coverage for Australian Federal Police (PDF 252 KB) 
    • Introduction.
    • Background.
    • Interim Australian Federal Police compensation arrangement
    • Historical background.
    • Military compensation arrangements reflect the special nature of military service 
    • Potential anomalies, complexity and transitional issues.
    • Comparisons between the roles of the Australian Federal Police and the Australian Defence Force fraught with difficulties.
    • Conclusions.

Part 7. Miscellaneous issues

28. Death and disability insurance in the context of military compensation

29. Reconsideration of compensation-related recommendations from the Review of Veterans’ Entitlements

30. Suitability of access to military compensation schemes for non-members

Acronyms

References

Legislation and case law

Appendixes

Appendix A: List of submissions

Appendix B: Consultation

Appendix C: Warlike and non-warlike service determinations

Appendix D: Comparison of benefits for different kinds of service

Appendix E: Comparison of compensation benefits

Appendix F: International schemes

Appendix G: State compensation schemes

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