Case Study Examples

We have provided the following case study examples to help veterans and their families understand the proposed changes.

Please note that these examples are hypothetical scenarios that have been prepared for illustrative purposes and are not to be taken as a definitive guide to outcomes.

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    Julie - 39 years of age, veteran covered by MRCA

    Julie is currently serving with the RAAF as an engineer. She has two accepted conditions under MRCA and received $46,058. Julie has no further conditions and nothing is changing.

    Current Benefits

    No need to claim as nothing is changing.

    Under the current system

    Retains lump sum of $46,058.

    Future Benefits

    No need to claim as nothing is changing.

    Under the proposed new system

    Retains lump sum of $46,058.

    Summary

    • Veterans with only service from 1 July 2004 will see no changes.
    • If Julie were to claim it would continue to be under MRCA.

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    Gabby - 47 years of age, veteran covered by DRCA

    Gabby has peacetime service (prior to 1 July 2004) and conditions accepted under DRCA.

    Current Benefits

    Gabby lodges a claim for incapacity benefits under DRCA.

    Under the current system

    Incapacity benefits will commence at $2,008 (net) per fortnight.

    Future Benefits

    Gabby lodges a claim for incapacity benefits under MRCA.

    Under the proposed new system

    Incapacity benefits will commence at $2,573 (net) per fortnight.

    Summary

    • Under DRCA, a 5% super contribution is deducted from the fortnightly incapacity payment.
    • MRCA does not deduct a super contribution and includes a remuneration amount.
    • The remuneration amount is designed to compensate a person for the loss of non-salary benefits a person receives while serving in the ADF.

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    Bruce - 75 years of age, veteran covered by VEA

    Bruce is experiencing a significant worsening of his knee condition accepted under VEA, and requests a reassessment. Bruce is currently receiving $221 per fortnight.

    Current Benefits

    Bruce lodges application for reassessment under VEA.

    Under the current system

    His payments are increased to $332 per fortnight.

    Future Benefits

    Bruce lodges claim under MRCA.

    Under the proposed new system

    • $338 per fortnight, or
    • $221 per fortnight (grandparented payment) plus a lump sum of up to $29,218.

    Summary

    • Bruce’s reassessment is assessed under MRCA.
    • Bruce continues to receive his fortnightly payment under the VEA.
    • Bruce receives a slightly more generous outcome but has the choice of taking the new MRCA component as a lump sum.

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    Fred - 75 years of age, veteran covered by VEA

    Nothing is changing in Fred’s life. Fred is currently receiving $873 per fortnight for service related conditions under the VEA.

    Current Benefits

    No need to claim as nothing is changing.

    Under the current system

    $873 per fortnight, indexed normally.

    Future Benefits

    No need to claim as nothing is changing.

    Under the proposed new system

    $873 per fortnight, indexed normally (grandparented payment).

    Summary

    • Veterans currently receiving payments will continue on their current rate of payment which will be indexed as normal.
    • If Fred were to claim in the future he would be assessed under MRCA.

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    Mary - 54 years of age, veteran covered by DRCA

    Mary has peacetime service (prior to 1 July 2004) and two accepted conditions under DRCA.

    Current Benefits

    Mary lodges a claim for compensation under DRCA for her two accepted conditions.

    Under the current system

    No lump sum as neither condition reaches threshold for payment.

    Future Benefits

    Mary lodges a claim for compensation under MRCA for her two accepted conditions.

    Under the proposed new system

    • $89 per fortnight, or
    • a lump sum of up to $46,862

    Summary

    • Under DRCA each injury is assessed individually and needs to meet a minimum threshold to receive payment. MRCA still requires a minimum threshold, however under MRCA’s whole of person assessment all injuries are combined and assessed together to provide a wholistic outcome.
    • Mary receives a PI payment under MRCA.

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    Roger - 44 years of age, veteran covered by DRCA

    Roger has received $376,860 for six separate conditions under DRCA. Overall he has received a  compensation payments at 115% of the maximum rate. He has lodged a new compensation claim for an ankle condition.

    Current Benefits

    Roger lodges a compensation claim under DRCA.

    Under the current system

    • Lump sum of up to $34,000
    • White Card

    Future Benefits

    Roger lodges a compensation claim under MRCA.

    Under the proposed new system

    • No additional payment as he is over the maximum amount payable under MRCA.
    • Gold Card for life. 

    Summary

    • Under the MRCA whole of person assessment Roger has been paid the maximum amount and therefore is not eligible for any additional payments.
    • Veterans under MRCA with more than 60 impairment points are provided a Gold Card for access to DVA funded health care for all conditions, including non-service-related conditions and illnesses.

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    George - 50 years of age, veteran covered by DRCA

    George has an injury accepted under the DRCA and received a lump sum of $59,386. He has a new condition that he is lodging a claim for.

    Current Benefits

    George lodges a claim for a new condition under DRCA.

    Under the current system

    • Lump sum of $61,464
    • No fortnightly payment option

    Future Benefits

    George lodges a claim for a new condition under MRCA.

    Under the proposed new system

    • $100.70 per fortnight, or
    • a lump sum of up to $52,877

    Summary

    • MRCA whole of person assessment takes all conditions into account rather than each condition individually.
    • MRCA’s lump sum calculations are age-adjusted for accurately converting weekly payments to whole of life lump sum payments.

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    Steve - (deceased) 76 years of age, veteran covered by VEA

    Steve, a TPI veteran, passes away. His death is not related to his service. Steve leaves behind a partner. 

    Current Benefits

    • Partner is automatically granted compensation under the VEA without the need for a claim.
    • A funeral benefit claim is lodged under the VEA.

    Under the current system - (Steve's Partner)

    • $1,044 per fortnight for life.
    • Bereavement payment of $9,700
    • Funeral benefit up to $2,000
    • Gold card for life

    Future Benefits

    • Partner is automatically granted compensation under the VEA without the need for a claim.
    • A funeral benefit claim is lodged under MRCA.

    Under the proposed new system

    • $1,044 per fortnight for life.
    • Bereavement payment of $9,700
    • Funeral benefit up to $13,045
    • Gold card for life

    Summary

    • No claim is required as Steve’s partner does not need to lodge a claim for war widows pension as Steve was a TPI veteran and has automatic entitlement and payment. Therefore automatically granted war widow/ers benefits remain under the VEA.
    • The funeral benefits must be claimed and would therefore be assessed and paid at the higher rate under MRCA.

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    Greg - (deceased) 60 years of age, veteran covered by VEA

    Greg has never claimed with DVA. Greg passes away from a service related condition leaving his partner and 15 year old child.

    Current Benefits

    Greg’s partner (aged 50) lodges a claim under VEA.

    Under the current system (Greg's Partner)

    • Partner receives: war widow’s pension $1,044.30 per fortnight, Gold Card for life.
    • In respect of the child the following benefits apply: orphan pension $116.30 per fortnight, Gold Card while in full time education, education allowance of $336.80 per fortnight.
    • Funeral benefit is paid at maximum of $2,000.

    Future Benefits

    Greg’s partner (aged 50) lodges a claim under MRCA.

    Under the proposed new system

    • Partner receives: Wholly Dependant Partner (WDP) at $522.15 per week (1,044.30 per fortnight) with the option to convert to a lump sum of $640,991), Additional Death Benefit (ADB) due to death being accepted, lump sum of $143,989, Gold Card for life.

    • In respect of the child the following benefits apply: lump sum compensation following death $96,745.46, periodic weekly compensation payment following death $160.91, Gold Card while in full time education, education allowance $336.80 per fortnight.

    • Funeral benefits received at maximum rate $13,045.02.

    Summary

    • Under MRCA, there are additional benefits including ADB and the option to convert WDP to a lump sum.
    • If a veteran passes away prior to lodging claims, their dependants will need to lodge a claim to be assessed for benefits.

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    Joe - (deceased) 46 years of age, veteran covered by DRCA

    Joe died due to basal cell carcinoma, leaving a partner aged 39 and 3 dependant children. His death was service-related and the condition was accepted prior to his death.  

    Current Benefits

    His partner and children would claim under the DRCA.

    Under the current system

    • Total lump sum of $953,281
    • Funeral benefit up to $13,045
    • No Gold Card
    • No access to education scheme or Gold Card for children while studying.

    Future Benefits

    His partner and children would claim under the MRCA.

    Under the proposed new system

    • Total lump sum of $1,149,088
    • Funeral benefit up to $13,045
    • Gold Card for life
    • Their children have access to MRCA education scheme and a Gold Card while they are studying.

    Summary

    • Widow/ers previously paid under DRCA are provided a fixed amount with no access to Gold Cards.
    • Whereas widow/ers who become eligible under MRCA will receive an age-adjusted payment and a Gold Card, and their child/ren can access to an education scheme and a Gold Card while they are studying.
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