Veterans' Entitlements, Treatment and Support (Simplification and Harmonisation) Act 2025 (17 of 2025)

Schedule 2   Single ongoing Act enhancements

Part 4   Additional disablement amount

Military Rehabilitation and Compensation Act 2004

156   After Division 3 of Part 7 of Chapter 4

Insert:

Division 3A - Additional Disablement Amount

220A Eligibility for Additional Disablement Amount

The Commonwealth is liable to pay an Additional Disablement Amount to a person if:

(a) the Commission has accepted liability for one or more service injuries or diseases of the person; and

(b) the person is not receiving any of the following:

(i) compensation for incapacity under Part 3 or 4 of this Chapter;

(ii) a Special Rate Disability Pension;

(iii) a pension under Part II of the VEA as a veteran to whom subsection 22(4), or section 23, 24, 25 or 27, of that Act applies; and

(c) the person is pension age or older; and

(d) the Commission has determined under Part 2 of this Chapter that an impairment suffered by the person as a result of one or more service injuries or diseases constitutes 70 or more impairment points and the effect of the injuries or diseases on the person's lifestyle constitutes 6 or more impairment points.

Note: The Commission is taken to have accepted liability for an injury or disease in certain circumstances (see section 24A).

220B Amount of Additional Disablement Amount

The maximum weekly amount of Additional Disablement Amount that is payable under section 220A is one half of the fortnightly rate at which a pension is payable from time to time under subsection 22(4) of the VEA.

220C Offsets

(1) The maximum weekly amount of Additional Disablement Amount that could be payable to a person is reduced in accordance with this section.

Permanent impairment compensation

(2) There is a reduction that is made by reference to amounts payable or paid to the person under Part 2 of this Chapter (permanent impairment). However, a payment received for eligible young persons, financial advice, legal advice or energy supplement under that Part does not reduce the maximum weekly amount of Additional Disablement Amount that could be payable to the person.

(3) The maximum weekly amount of an Additional Disablement Amount that could be payable to a person is reduced by the sum of:

(a) any weekly amounts that are being paid to the person under Part 2 of this Chapter; and

(b) if the person has chosen to convert all or part of one or more weekly amounts that were payable to the person under that Part to lump sums - those weekly amounts or those parts of those weekly amounts.

(4) Subsection (3) applies to a person to whom section 389 or 402 applies as if the person were being paid the weekly amounts under Part 2 of this Chapter that the person would be paid if that section did not apply to the person.

Note: Section 389 provides that compensation under Part 2 of Chapter 4 is not payable to a person who chooses to institute proceedings for damages against the Commonwealth. Under section 402, compensation under this Act is not payable to a person who recovers damages from a third party.

Commonwealth superannuation

(5) There is a reduction if the person:

(a) has retired voluntarily, or has been compulsorily retired, from the person's work; and

(b) receives either or both a pension or lump sum under a Commonwealth superannuation scheme as a result of the retirement.

(6) The amount of the reduction under subsection (5) is 60% of the reduction that would apply to the person under section 134, 135 or 136 if the person were receiving compensation worked out under Division 2 of Part 4 of this Chapter.

Relationship with subsection 415(4)

(7) This section does not limit the application of subsection 415(4) in relation to an Additional Disablement Amount.

Note: Subsection (7) has the effect that if the maximum weekly amount of an Additional Disablement Amount is reduced in accordance with this section, that amount may be further reduced in accordance with subsection 415(4).

220D Energy supplement for Additional Disablement Amount

(1) The Commonwealth is liable to pay an energy supplement to a person for a day if:

(a) an Additional Disablement Amount:

(i) is payable to the person for the day; or

(ii) would be payable to the person for the day apart from section 220C and paragraph 398(3)(b); and

(b) the person resides in Australia on the day; and

(c) on the day the person either:

(i) is in Australia; or

(ii) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.

Note: Section 424L may affect the person's entitlement to the energy supplement.

(2) The daily rate of the supplement is 1/7 of $10.75.