Commonwealth: Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004 (Cth)

Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004 No. 52 of 2004 Compilation No. 7 Compilation date: 12 October 2017 Includes amendments up to: Act No. 108, 2017 Registered: 13 October 2017 About this compilation This compilation This is a compilation of the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004 that shows the text of the law as amended and in force on 12 October 2017 (the compilation date). The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law. Uncommenced amendments The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Legislation Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the series page on the Legislation Register for the compiled law. Application, saving and transitional provisions for provisions and amendments If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes. Editorial changes For more information about any editorial changes made in this compilation, see the endnotes. Modifications If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the series page on the Legislation Register for the compiled law. Self‑repealing provisions If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes. Contents Part 1—Introduction 1 Short title 2 Commencement 3 Schedule(s) 4 Definitions 5 Definition of relates to defence service 6 Defence service relating to duties before the commencement date Part 2—Application of the MRCA to certain injuries, diseases, deaths, losses and damage 7 Application of the MRCA to certain injuries, diseases and deaths 8 Application of the MRCA to injuries, diseases and deaths etc. caused by certain treatment 9 MRCA does not apply to aggravations of, or material contributions to, VEA injuries and diseases 10 Subsection 7(4) of the DRCA does not apply 11 Application of the MRCA to loss or damage to medical aids Part 3—Persons who have both VEA/DRCA and MRCA injuries and diseases 13 Bringing across impairment points from a VEA or DRCA injury or disease 14 Offsetting VEA and DRCA payments against a Special Rate Disability Pension Part 4—Other transitional provisions 15 No dual entitlement for similar benefits 16 Offsetting amounts of Commonwealth superannuation under the MRCA 17 Amount of compensation where a person has redeemed an amount under the DRCA 18 Rehabilitation under the MRCA for persons undergoing rehabilitation under the VEA or DRCA 19 Bringing across current Statements of Principles determined under section 196B of the VEA 20 Bringing across the current Veterans' Children Education Scheme 21 Bringing across the current Treatment Principles etc. 22 Bringing across declared member declarations 23 Decisions reviewable under Chapter 8 of the MRCA 24 Regulations may provide for transitional etc. issues Schedule 1—Amendment of the Veterans' Entitlements Act 1986 Part 1—Main amendments relating to transitional and application issues Part 2—Amendments relating to income support supplement Part 3—Amendments relating to the Statements of Principles Part 4—Amendments relating to offsetting permanent impairment payments under the SRCA Schedule 2—Amendment of the Safety, Rehabilitation and Compensation Act 1988 Part 1—Main amendments relating to transitional and application issues Part 2—Defence‑related injuries and deaths etc. Schedule 3—General consequential amendments Aged Care Act 1997 Age Discrimination Act 2004 A New Tax System (Family Assistance) Act 1999 A New Tax System (Family Assistance) (Administration) Act 1999 A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999 Data‑matching Program (Assistance and Tax) Act 1990 Defence Act 1903 Defence Force (Home Loans Assistance) Act 1990 Defence Reserve Service (Protection) Act 2001 Disability Discrimination Act 1992 Farm Household Support Act 1992 Fringe Benefits Tax (Application to the Commonwealth) Act 1986 Income Tax Rates Act 1986 National Health Act 1953 Registration of Deaths Abroad Act 1984 Social Security Act 1991 Superannuation Act 1976 Taxation Administration Act 1953 Schedule 4—Consequential amendments of Income Tax Assessment Acts Part 1—Amendment of the Income Tax Assessment Act 1936 Part 2—Amendment of the Income Tax Assessment Act 1997 Part 3—Application and amendment of assessments Endnotes Endnote 1—About the endnotes Endnote 2—Abbreviation key Endnote 3—Legislation history Endnote 4—Amendment history An Act to amend laws, and to deal with transitional matters, in connection with the Military Rehabilitation and Compensation Act 2004, and for other purposes Part 1—Introduction 1 Short title This Act may be cited as the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004. 2 Commencement (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms. Commencement information Column 1 Column 2 Column 3 Provision(s) Commencement Date/Details 1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table The day on which this Act receives the Royal Assent. 27 April 2004 2. Sections 4 to 24 At the same time as section 3 of the MRCA commences. 1 July 2004 3. Schedules 1 and 2 At the same time as section 3 of the MRCA commences. 1 July 2004 4. Schedule 3, items 1 to 7 At the same time as section 3 of the MRCA commences. 1 July 2004 5. Schedule 3, items 7A and 7B The later of: 1 July 2004 (paragraph (a) applies) (a) the time when section 3 of the MRCA commences; and (b) the time when the Age Discrimination Act 2004 commences. 6. Schedule 3, items 8 to 105 At the same time as section 3 of the MRCA commences. 1 July 2004 7. Schedule 4 At the same time as section 3 of the MRCA commences. 1 July 2004 Note: This table relates only to the provisions of this Act as originally passed by the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent. (2) Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act. 3 Schedule(s) Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms. 4 Definitions (1) In this Act: commencement date means the date on which section 3 of the Military Rehabilitation and Compensation Act 2004 commences. DRCA means the Safety, Rehabilitation and Compensation (Defence‑related Claims) Act 1988. MRCA means the Military Rehabilitation and Compensation Act 2004. old injury or disease has the meaning given by section 13. relates to defence service has the meaning given by section 5. SRCA means the Safety, Rehabilitation and Compensation Act 1988. VEA means the Veterans' Entitlements Act 1986. (2) Expressions used in this Act that are defined in the MRCA have the same meanings as they have in that Act. 5 Definition of relates to defence service Definition of relates to defence service for injuries, diseases and deaths (1) For the purposes of this Act, an injury, disease or death relates to defence service rendered by a person if: (a) it resulted from an occurrence that happened while the person was rendering that service; or (b) it arose out of, or was attributable to, that service; or (c) it resulted from an accident that occurred while the person was travelling, while rendering that service but otherwise than in the course of duty, on a journey: (i) to a place for the purpose of performing duty; or (ii) away from a place of duty upon having ceased to perform duty; or (d) in the case of an injury—it resulted from an accident that would not have occurred: (i) but for the rendering of that service by the person; or (ii) but for changes in the person's environment consequent upon his or her having rendered that service; or (e) in the case of a disease—it would not have occurred: (i) but for the rendering of that service by the person; or (ii) but for changes in the person's environment consequent upon his or her having rendered that service; or (f) in the case of a death of a person—it was due to an accident that would not have occurred, or to a disease that would not have been contracted: (i) but for the rendering of that service by the person; or (ii) but for changes in the person's environment consequent upon his or her having rendered that service. Definition of relates to defence service for aggravations and material contributions (2) For the purposes of this Act, an aggravation of, or a material contribution to, an injury or disease, or a sign or symptom of an injury or disease, relates to defence service rendered by a person if: (a) it resulted from an occurrence that happened while the person was rendering that service; or (b) it arose out of, or was attributable to, that service; or (c) it resulted from an accident that occurred while the person was travelling, while rendering that service but otherwise than in the course of duty, on a journey: (i) to a place for the purpose of performing duty; or (ii) away from a place of duty upon having ceased to perform duty; or (d) in the case of an aggravation of, or a material contribution to, an injury, or a sign or symptom of an injury—it resulted from an accident that would not have occurred: (i) but for the rendering of that service by the person; or (ii) but for changes in the person's environment consequent upon his or her having rendered that service; or (e) in the case of an aggravation of, or a material contribution to, a disease, or a sign or symptom of a disease—it would not have occurred: (i) but for the rendering of that service by the person; or (ii) but for changes in the person's environment consequent upon his or her having rendered that service. 6 Defence service relating to duties before the commencement date To avoid doubt, defence service may be rendered on or after the commencement date even if the service relates to the performance of a duty that ended before that date. Example: A member finishes duty just before the commencement date and is injured in an accident while travelling home just after the commencement date. The member is covered by the MRCA. Part 2—Application of the MRCA to certain injuries, diseases, deaths, losses and damage 7 Application of the MRCA to certain injuries, diseases and deaths (1) The MRCA applies to a person's injury, disease or death if: (a) the injury is sustained, the disease is contracted, or the death occurs, on or after the commencement date; and (b) the injury, disease or death either: (i) relates to defence service rendered by the person on or after that date; or (ii) relates to defence service rendered by the person before, and on or after, that date. (2) The MRCA applies to an aggravation of, or a material contribution to, a person's injury or disease, or a sign or symptom of a person's injury or disease, if: (a) the aggravation or material contribution occurs on or after the commencement date (even if the original injury is sustained, or the original disease is contracted, before that date); and (b) the aggravation or material contribution either: (i) relates to defence service rendered by the person on or after that date; or (ii) relates to defence service rendered by the person before, and on or after, that date. (2A) Subsection (2) is subject to section 9. Note: Section 9 sets out when the MRCA does not apply to aggravations of, or material contributions to, VEA injuries and diseases. (3) To avoid doubt, defence service is rendered before, and on or after, the commencement date whether the service spans the commencement date or is rendered during separate periods before and on or after that date. 8 Application of the MRCA to injuries, diseases and deaths etc. caused by certain treatment (1) The MRCA applies to an injury, disease or death if: (a) the injury is sustained, the disease is contracted, or the death occurs, on or after the commencement date; and (b) the injury, disease or death occurs as an unintended consequence of treatment of a kind mentioned in section 29 of the MRCA; and (c) the treatment is provided either: (i) on or after the commencement date; or (ii) before, and on or after, the commencement date. (2) The MRCA applies to an aggravation of, or a material contribution to, an injury or disease, or a sign or symptom of an injury or disease, if: (a) the aggravation or material contribution occurs on or after the commencement date (even if the original injury is sustained, or the original disease is contracted, before that date); and (b) the aggravation or material contribution occurs as an unintended consequence of treatment of a kind mentioned in section 29 of the MRCA; and (c) the treatment is provided either: (i) on or after the commencement date; or (ii) before, and on or after, the commencement date. (2A) Subsection (2) is subject to section 9. Note: Section 9 sets out when the MRCA does not apply to aggravations of, or material contributions to, VEA injuries and diseases. (3) To avoid doubt, treatment is provided before, and on or after, the commencement date whether the treatment spans the commencement date or is provided during separate periods before and on or after that date. 9 MRCA does not apply to aggravations of, or material contributions to, VEA injuries and diseases Defence service (1) If: (a) before the commencement date, a person was suffering from a war‑caused or defence‑caused injury or disease (within the meaning of the VEA); and (b) on or after 1 July 2013, there is an aggravation of, or a material contribution to, that injury or disease; and (c) the aggravation or material contribution either: (i) relates to defence service rendered by the person on or after 1 July 2013; or (ii) relates to defence service rendered by the person before, and on or after, 1 July 2013; then the MRCA does not apply to that aggravation or material contribution. Note: The person may be able to apply under section 15 of the VEA for an increase in a rate of pension on the ground that the incapacity of the person has increased because of the aggravation of, or material contribution to, that injury or disease. (2) To avoid doubt, defence service is rendered before, and on or after, 1 July 2013 whether the service spans that day or is rendered during separate periods before and on or after that day. (3) If: (a) before the commencement date, a person was suffering from a war‑caused or defence‑caused injury or disease (within the meaning of the VEA); and (b) before 1 July 2013, there was an aggravation of, or a material contribution to, that injury or disease; and (c) the aggravation or material contribution either: (i) related to defence service rendered by the person on or after the commencement date; or (ii) related to defence service rendered by the person before, and on or after, the commencement date; and (d) immediately before 1 July 2013, the person had not made a choice of the kind referred to in subsection 12(2) of this Act (as in force immediately before that day); then the MRCA does not apply to that aggravation or material contribution. Note: The person may be able to apply under section 15 of the VEA for an increase in a rate of pension on the ground that the incapacity of the person has increased because of the aggravation of, or material contribution to, that injury or disease. (4) To avoid doubt, defence service is rendered before, and on or after, the commencement date whether the service spans the commencement date or is rendered during separate periods before and on or after that date. Treatment (5) If: (a) before the commencement date, a person was suffering from a war‑caused or defence‑caused injury or disease (within the meaning of the VEA); and (b) on or after 1 July 2013, there is an aggravation of, or a material contribution to, that injury or disease; and (c) the aggravation or material contribution occurs as an unintended consequence of treatment of a kind mentioned in section 29 of the MRCA; and (d) the treatment is provided either: (i) on or after 1 July 2013; or (ii) before, and on or after, 1 July 2013; then the MRCA does not apply to that aggravation or material contribution. Note: The person may be able to apply under section 15 of the VEA for an increase in a rate of pension on the ground that the incapacity of the person has increased because of the aggravation of, or material contribution to, that injury or disease. (6) To avoid doubt, treatment is provided before, and on or after, 1 July 2013 whether the treatment spans that day or is provided during separate periods before and on or after that day. (7) If: (a) before the commencement date, a person was suffering from a war‑caused or defence‑caused injury or disease (within the meaning of the VEA); and (b) before 1 July 2013, there was an aggravation of, or a material contribution to, that injury or disease; and (c) the aggravation or material contribution occurred as an unintended consequence of treatment of a kind mentioned in section 29 of the MRCA; and (d) the treatment was provided either: (i) on or after the commencement date; or (ii) before, and on or after, the commencement date; and (e) immediately before 1 July 2013, the person had not made a choice of the kind referred to in subsection 12(2) of this Act (as in force immediately before that day); then the MRCA does not apply to that aggravation or material contribution. Note: The person may be able to apply under section 15 of the VEA for an increase in a rate of pension on the ground that the incapacity of the person has increased because of the aggravation of, or material contribution to, that injury or disease. (8) To avoid doubt, treatment is provided before, and on or after, the commencement date whether the treatment spans the commencement date or is provided during separate periods before and on or after that date. 10 Subsection 7(4) of the DRCA does not apply Subsection 7(4) of the DRCA does not apply in determining the day on which a disease is contracted, or aggravated or materially contributed to, for the purposes of paragraph 7(1)(a) or (2)(a) or 8(1)(a) or (2)(a). Note: The Commission must determine the day on which a disease is contracted, or aggravated or materially contributed to, rather than using the day that is deemed by subsection 7(4) of the DRCA. 11 Application of the MRCA to loss or damage to medical aids The MRCA applies to the loss of, or damage to, a member's medical aid if the loss or damage results from an occurrence that happens on or after the commencement date. Part 3—Persons who have both VEA/DRCA and MRCA injuries and diseases 13 Bringing across impairment points from a VEA or DRCA injury or disease (1) This section applies if: (a) a claim is made under section 319 of the MRCA in respect of a person who also has: (i) a separate war‑caused or defence‑caused injury or disease (within the meaning of the VEA) (the old injury or disease); or (ii) a separate injury or disease (within the meaning of the DRCA) (the old injury or disease); or (b) a claim is made under section 319 of the MRCA in respect of an aggravation of, or a material contribution to: (i) a sign or symptom of a war‑caused or defence‑caused injury or disease of a person (within the meaning of the VEA) (the old injury or disease); or (ii) an injury or disease of a person (within the meaning of the DRCA) (the old injury or disease) or a sign or symptom of such an injury or disease. (2) The Commission must determine the impairment points constituted by the impairment suffered by the person from the old injury or disease using the guide under section 67 of the MRCA. (3) For the purposes of determining under the MRCA the number of impairment points constituted by an impairment suffered by a person, the Commission must count the impairment points determined for the old injury or disease under subsection (2) towards the person's total impairment points. (4) The Commission may include in the guide under section 67 of the MRCA one or more methods of working out the amount of compensation a person is entitled to under Part 2 of Chapter 4 of the MRCA (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 DRCA in respect of the old injury or disease. Note: The regulations may also include a method of converting lump sum amounts into weekly amounts for the purposes of offsetting (see paragraph 24(3)(b)). 14 Offsetting VEA and DRCA payments against a Special Rate Disability Pension (1) For the purposes of section 204 of the MRCA, the maximum weekly amount of a Special Rate Disability Pension that could be payable to a person, at a time, must also be reduced by one half of the fortnightly rate at which any pension because of paragraph 13(1)(b) or 70(1)(b) of the VEA is payable to the person at that time. (2) For the purposes of section 204 of the MRCA, the maximum weekly amount of a Special Rate Disability Pension that could be payable to a person must also be reduced by the sum of any previous payments of a lump sum to the person under section 24, 25 or 27 of the DRCA, converted to a weekly amount in accordance with regulations made for the purposes of paragraph 24(3)(b) of this Act. Part 4—Other transitional provisions 15 No dual entitlement for similar benefits No dual entitlement for injuries and diseases (1) A person who, at a particular time, would otherwise be entitled to: (a) a benefit under a VEA or DRCA provision mentioned in column 1 of the table; and (b) a benefit under an MRCA provision mentioned in column 2; is instead only entitled to the benefit under the MRCA provision at that time. Equivalent entitlements for injuries and diseases under the VEA or DRCA and the MRCA Column 1 Column 2 Item VEA or DRCA provision MRCA provision 1 Subsection 13(4) of the VEA Section 253 of the MRCA 2 Section 98 of the VEA Section 217 of the MRCA 3 Section 105 of the VEA Section 212 of the MRCA 4 Section 107 of the VEA Part 3, 4 or 6 of Chapter 4 of the MRCA 5 Section 108 of the VEA Part 3, 4 or 6 of Chapter 4 of the MRCA 6 Part VII of the VEA Section 258 of the MRCA 7 Section 19, 20, 21, 21A or 31 of the DRCA Part 3, 4 or 6 of Chapter 4 of the MRCA 8 Section 22 of the DRCA Section 127 of the MRCA 9 Subsection 29(1) of the DRCA Section 214 of the MRCA 10 Subsection 29(3) of the DRCA Section 217 of the MRCA Note: Payments of Commonwealth superannuation that are being offset under section 20, 21 or 21A of the DRCA might instead be offset under Part 4 or 6 of Chapter 4 of the MRCA (see section 16 of this Act). No dual entitlement for travel expenses for treatment (2) A person who would otherwise be entitled to: (a) a benefit under a VEA or DRCA provision mentioned in column 1 of the table in respect of a journey or accommodation; and (b) a benefit under an MRCA provision mentioned in column 2 in respect of the journey or accommodation; is instead only entitled to the benefit under the MRCA provision in respect of the journey or accommodation. Equivalent entitlements for travel expenses for treatment under the VEA or DRCA and the MRCA Column 1 Column 2 Item VEA or DRCA provision MRCA provision 1 Subsection 110(1) of the VEA Subsection 290(1) or 291(1) of the MRCA 2 Subsection 110(2) of the VEA Subsection 290(2) or 291(2) of the MRCA 3 Subsection 16(6) of the DRCA Division 2 of Part 4 of Chapter 6 of the MRCA 4 Subsection 16(9) of the DRCA Section 297 of the MRCA No dual entitlement for treatment expenses (3) A person who would otherwise be entitled to compensation under subsection 16(1) of the DRCA, and Part 2 of Chapter 6 of the MRCA, in respect of the same treatment is instead only entitled to the compensation under the MRCA for the treatment. No dual entitlement for modifications of aids and appliances etc. (4) A person who would otherwise be entitled to: (a) a benefit under an DRCA provision mentioned in column 1 of the table in respect of a modification, alteration, repair, replacement or provision of a thing; and (b) a benefit under an MRCA provision mentioned in column 2 in respect of the modification, alteration, repair, replacement or provision; is instead only entitled to the benefit under the MRCA provision in respect of the modification, alteration, repair, replacement or provision. Equivalent entitlements for modifications of aids and appliances etc. under the DRCA and the MRCA Column 1 Column 2 Item DRCA provision MRCA provision 1 Paragraph 39(1)(c), (d) or (e) of the DRCA Section 56 of the MRCA 2 Paragraph 39(1)(d) or (e) of the DRCA Section 212 of the MRCA No dual entitlement for deaths (5) A person who would otherwise be entitled to: (a) a benefit under a VEA or DRCA provision mentioned in column 1 of the table in respect of a person's death; and (b) a benefit under an MRCA provision mentioned in column 2 in respect of the death; is instead only entitled to the benefit under the MRCA provision in respect of the death. Equivalent entitlements for deaths under the VEA or DRCA and the MRCA Column 1 Column 2 Item VEA or DRCA provision MRCA provision 1 Section 98B of the VEA Section 266 of the MRCA 2 Subsection 99(1) of the VEA Section 266 of the MRCA 3 Subsection 99(2) of the VEA Section 266 of the MRCA 4 Paragraph 99(4)(b) of the VEA Section 297 of the MRCA 5 Subsection 16(9) of the DRCA Section 297 of the MRCA 6 Subsection 17(3) of the DRCA Parts 1 to 4 of Chapter 5 of the MRCA 7 Subsection 17(4) of the DRCA Part 4 of Chapter 5 of the MRCA 8 Subsection 17(5) of the DRCA Section 253 of the MRCA 9 Section 18 of the DRCA Section 266 of the MRCA (6) To avoid doubt, if this section stops a person from being entitled, under a provision of an Act, to a benefit at a time or in respect of a thing, then compensation, an allowance, a pension or any other benefit is not payable, or to be granted, under the provision at that time or in respect of that thing to or for the benefit of the person. 16 Offsetting amounts of Commonwealth superannuation under the MRCA (1) This section applies if: (a) item 7 of the table in subsection 15(1) stops a person from being entitled to compensation under section 20, 21 or 21A of the DRCA (compensation for incapacity if superannuation is paid); and (b) apart from this section, the person would be entitled to compensation of an amount: (i) that is worked out under Subdivision C of Division 2 of Part 4 of Chapter 4 of the MRCA (compensation for incapacity if no superannuation is paid); or (ii) that would be worked out under that Subdivision if the person had not chosen to receive a Special Rate Disability Pension. (2) The superannuation scheme (within the meaning of the DRCA) is taken to be a Commonwealth superannuation scheme (within the meaning of the MRCA) for the purposes of the MRCA. Note: This means that amounts of superannuation that are being offset under the DRCA are offset under the MRCA. (3) For the purposes of the MRCA, the amounts mentioned in column 1 of the table are taken to be the same as the amounts under the DRCA mentioned in column 2. Transferring superannuation amounts Column 1 Column 2 Item This MRCA amount... is taken to the same as this DRCA amount... 1 the superannuation pension amount mentioned in section 134 of the MRCA the superannuation amount (in relation to a pension) mentioned in section 20 of the DRCA 2 the superannuation lump sum amount mentioned in section 135 of the MRCA the superannuation amount (in relation to a lump sum benefit) mentioned in section 21 of the DRCA 3 the superannuation pension amount mentioned in section 136 of the MRCA the weekly superannuation amount mentioned in section 21A of the DRCA 4 the superannuation lump sum amount mentioned in section 136 of the MRCA the superannuation lump sum benefit mentioned in section 21A of the DRCA 17 Amount of compensation where a person has redeemed an amount under the DRCA (1) This section sets out the amount of compensation for a week that a person who has previously redeemed an amount under section 30 of the DRCA is entitled to under Part 4 of Chapter 4 of the MRCA. (2) The amount is worked out using the following formula: where: Subdivision C or D compensation amount for a person for a week means the amount of compensation that person would have been paid for the week if Subdivision C or D of Division 2 of Part 4 of Chapter 4 of the MRCA had applied. weekly amount means the amount for a week that was redeemed at the date of the determination under section 30 of the DRCA. 18 Rehabilitation under the MRCA for persons undergoing rehabilitation under the VEA or DRCA (1) This section applies if: (a) a person is undertaking a rehabilitation program under the VEA or the DRCA (the old program); and (b) the rehabilitation authority for the person determines that the person is to undertake a rehabilitation program under the MRCA (the new program). (2) The person's rehabilitation authority may determine that the old program stops being provided under the VEA or the DRCA. (3) If the authority does so, the approved program provider may (but does not have to) incorporate all or part of the old program in designing or providing the new program. (4) If the approved program provider incorporates all or part of the old program, then the Commonwealth must pay all unpaid costs incurred in respect of the old program. 19 Bringing across current Statements of Principles determined under section 196B of the VEA (1) For the purposes of the MRCA, a Statement of Principles that is in force under subsection 196B(2), (3), (11) or (12) of the VEA immediately before the commencement date is taken to have been made on the commencement date under that subsection for the purposes of the MRCA. Note: The Statements of Principles continue in force for the purposes of the VEA in respect of injuries and diseases etc. to which that Act applies. Translating references in a subsection 196B(2) or (11) Statement of Principles (2) For a Statement of Principles mentioned in subsection (1) that is made under subsection 196B(2) or (11), references in column 1 of the table have effect for the purposes of the MRCA as if they were the references in column 2. Translating references in a subsection 196B(2) or (11) Statement of Principles Column 1 Column 2 Item A reference in the Statement of Principles to this... is taken to include a reference to this... 1 operational service, peacekeeping service or hazardous service as defined in the VEA warlike service or non‑warlike service as defined in the MRCA 2 paragraph 8(1)(e), 9(1)(e), 70(5)(d) or 70(5A)(d) of the VEA paragraphs 27(d) and 28(1)(d) of the MRCA 3 section 120A of the VEA section 338 of the MRCA Translating references in a subsection 196B(3) or (12) Statement of Principles (3) For a Statement of Principles mentioned in subsection (1) that is made under subsection 196B(3) or (12), references in column 1 of the table have effect for the purposes of the MRCA as if they were the references in column 2. Translating references in a subsection 196B(3) or (12) Statement of Principles Column 1 Column 2 Item A reference in the Statement of Principles to this... is taken to include a reference to this... 1 eligible war service (other than operational service) or defence service (other than hazardous service) as defined in the VEA peacetime service as defined in the MRCA 2 paragraph 8(1)(e), 9(1)(e) or 70(5)(d) of the VEA paragraphs 27(d) and 28(1)(d) of the MRCA 3 section 120B of the VEA section 339 of the MRCA 20 Bringing across the current Veterans' Children Education Scheme (1) For the purposes of the MRCA, the scheme in force under section 117 of the VEA immediately before the commencement date is taken to have been determined on that date under section 258 of the MRCA. Note: The scheme continues in force for the purposes of the VEA in respect of eligible children to whom that Act applies. (2) A reference in the scheme to an eligible child as defined in the VEA is taken to be a reference to an eligible young person mentioned in section 258 of the MRCA. (3) A reference in the scheme to the Repatriation Commission is taken to be a reference to the Military Rehabilitation and Compensation Commission. 21 Bringing across the current Treatment Principles etc. For the purposes of the MRCA, the following documents that are in force under the VEA immediately before the commencement date are taken to have been determined on that date under section 286 of the MRCA: (a) the Treatment Principles in force under section 90 of the VEA; (b) the Repatriation Private Patient Principles in force under section 90A of the VEA; (c) the scheme for providing pharmaceutical benefits in force under section 91 of the VEA. Note: The documents continue in force for the purposes of the VEA in respect of treatment to which that Act applies. 22 Bringing across declared member declarations For the purposes of the MRCA, a declaration in force under subsection 5(6A) of the SRCA immediately before the commencement date is taken to have been made on that date under section 8 of the MRCA. 23 Decisions reviewable under Chapter 8 of the MRCA A decision made under or in respect of this Act (other than a decision made under or in respect of a provision being inserted or amended by Schedule 1 or 2 to this Act) is taken to be an original determination for the purposes of Chapter 8 of the MRCA. Note: This means that the review provisions in Chapter 8 of the MRCA apply to a decision made under or in respect of this Act. 24 Regulations may provide for transitional etc. issues (1) The Governor‑General may make regulations prescribing matters of a transitional nature (including prescribing any saving or application provisions) arising out of the enactment of the MRCA or this Act. (2) Despite subsection 48(2) of the Acts Interpretation Act 1901, regulations made under this section within 1 year after commencement of this section may commence on a day earlier than the day on which they are made, but not earlier than the commencement of this section. (3) Without limiting subsection (1), the regulations may provide: (a) that persons who are entitled to compensation under the MRCA cease to be entitled to a similar benefit under the VEA or the DRCA; and (b) a method of converting a lump sum amount into weekly amounts for the purpose of working out an amount of compensation payable for a service injury or disease under Parts 2 and 6 of Chapter 4 of the MRCA. Schedule 1—Amendment of the Veterans' Entitlements Act 1986 Part 1—Main amendments relating to transitional and application issues 1 Section 5 (index of definitions) Insert in their appropriate alphabetical positions, determined on a letter‑by‑letter basis: CTPA 5Q(1) Military Rehabilitation and Compensation Commission 5Q(1) MRCA 5Q(1) MRCA commencement date 5Q(1) relates to service 5Q(1B) and (1C) 2 After paragraph 5H(8)(b) Insert: (ba) a payment of an instalment of an allowance under section 118A, 118F or 118Q (pharmaceutical and telephone allowance); 3 Paragraph 5H(8)(zb) Omit "to a veteran". 4 At the end of subsection 5H(8) Add: ; (zo) a payment under section 47, 56, 81, 205, 214, 217, 226, 239 or 266 of the MRCA to reimburse costs incurred in respect of the provision of goods or services (other than a payment to the person who provided the goods or service); (zp) a payment (either as a weekly amount or a lump sum) under section 68, 71, 75 or 80 of the MRCA (permanent impairment); (zq) a payment of a Special Rate Disability Pension under Part 6 of Chapter 4 of the MRCA; (zr) if subsection 204(5) of the MRCA applies to a person—an amount per fortnight, worked out under section 5I of this Act, that would, apart from this paragraph, be income of the person; Note: Subsection 204(5) of the MRCA reduces a Special Rate Disability Pension by reference to amounts of Commonwealth superannuation that the person has received or is receiving. (zs) a payment under the Motor Vehicle Compensation Scheme under section 212 of the MRCA; (zt) a payment of an allowance under section 221, 245 or 300 of the MRCA (telephone and pharmaceutical allowance); (zu) a payment of a lump sum mentioned in paragraph 234(1)(a) or subparagraph 234(1)(b)(i), or of a weekly amount mentioned in subparagraph 234(1)(b)(ii), of the MRCA (wholly dependent partner payment); (zv) a payment under section 242 or 255 of the MRCA (continuing permanent impairment and incapacity etc. payments); (zw) a payment under section 251 or 253 of the MRCA (eligible young person payment); (zx) a payment under the scheme set up under section 258 of the MRCA (education scheme for eligible young persons); (zy) a payment under section 262 of the MRCA (compensation for other dependants); (zz) a payment under Part 2 of Chapter 6, or Division 2 or 3 of Part 4 of Chapter 6, or subsection 328(4), of the MRCA (compensation for treatment etc.); (zza) a payment under section 424 of the MRCA (special assistance). Note: However: (a) some of the amounts referred to in paragraphs (8)(zp), (zq), (zr) and (zu) are counted for the purposes of the hardship rules (see subsection 52Z(3A)); and (b) the amounts referred to in paragraph (8)(zp) are counted for the purposes of rent assistance (see Module C of the Rate Calculator). 5 After section 5H Insert: 5I Special Rate Disability Pension reduction amount For the purposes of paragraphs 5H(8)(zr) and 52Z(3A)(i), the amount per fortnight is: where: Special Rate Disability Pension reduction amount means the amount by which the Special Rate Disability Pension (as reduced under subsection 204(3)) is reduced under subsection 204(6) of the MRCA (but not below zero). 6 Subsection 5Q(1) Insert: CTPA means the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004. 7 Subsection 5Q(1) Insert: Military Rehabilitation and Compensation Commission means the Military Rehabilitation and Compensation Commission established under section 361 of the MRCA. 8 Subsection 5Q(1) Insert: MRCA means the Military Rehabilitation and Compensation Act 2004. 9 Subsection 5Q(1) Insert: MRCA commencement date means the date on which section 3 of the MRCA commences. 10 After subsection 5Q(1A) Insert: Definition of relates to service for injuries, diseases and deaths (1B) For the purposes of this Act, an injury, disease or death relates to service rendered by a person if: (a) it resulted from an occurrence that happened while the person was rendering that service; or (b) it arose out of, or was attributable to, that service; or (c) it resulted from an accident that occurred while the person was travelling, while rendering that service but otherwise than in the course of duty, on a journey: (i) to a place for the purpose of performing duty; or (ii) away from a place of duty upon having ceased to perform duty; or (d) in the case of an injury—it resulted from an accident that would not have occurred: (i) but for the rendering of that service by the person; or (ii) but for changes in the person's environment consequent upon his or her having rendered that service; or (e) in the case of a disease—it would not have occurred: (i) but for the rendering of that service by the person; or (ii) but for changes in the person's environment consequent upon his or her having rendered that service; or (f) in the case of a death of a person—it was due to an accident that would not have occurred, or to a disease that would not have been contracted: (i) but for the rendering of that service by the person; or (ii) but for changes in the person's environment consequent upon his or her having rendered that service. Definition of relates to service for aggravations and material contributions (1C) For the purposes of this Act, an aggravation of, or a material contribution to, an injury or disease relates to service rendered by a person if: (a) it resulted from an occurrence that happened while the person was rendering that service; or (b) it arose out of, or was attributable to, that service; or (c) it resulted from an accident that occurred while the person was travelling, while rendering that service but otherwise than in the course of duty, on a journey: (i) to a place for the purpose of performing duty; or (ii) away from a place of duty upon having ceased to perform duty; or (d) in the case of an aggravation of, or a material contribution to, an injury—it resulted from an accident that would not have occurred: (i) but for the rendering of that service by the person; or (ii) but for changes in the person's environment consequent upon his or her having rendered that service; or (e) in the case of an aggravation of, or a material contribution to, a disease—it would not have occurred: (i) but for the rendering of that service by the person; or (ii) but for changes in the person's environment consequent upon his or her having rendered that service. 11 Subsections 8(1) and 9(1) Omit "Subject to this section,", substitute "Subject to this section and section 9A,". 12 After section 9 Insert: 9A Most war‑caused injuries, diseases and deaths no longer covered by this Act (1) A veteran's injury, disease or death is taken not to be war‑caused if: (a) the injury is sustained, the disease is contracted, or the death occurs, on or after the MRCA commencement date; and (b) the injury, disease or death either: (i) relates to service rendered by the person on or after that date; or (ii) relates to service rendered by the person before, and on or after, that date. Note: After the MRCA commencement date, compensation is provided under the MRCA (instead of this Act) for such injuries, diseases and deaths. (2) An injury or disease of a veteran that has been aggravated, or materially contributed to, by service is taken not to be war‑caused if: (a) the aggravation or material contribution occurs on or after the commencement date (even if the original injury is sustained, or the original disease is contracted, before that date); and (b) the aggravation or material contribution either: (i) relates to service rendered by the person on or after that date; or (ii) relates to service rendered by the person before, and on or after, that date; and (c) if section 12 of the CTPA applies to the veteran—after receiving a notice under that section, the veteran makes a claim under section 319 of the MRCA (or continues with a claim already made under that section) in respect of the aggravated injury or disease. Note: After the MRCA commencement date, compensation is provided under the MRCA (instead of this Act) for such aggravations and material contributions. (3) To avoid doubt, service is rendered before, and on or after, the MRCA commencement date whether the service spans the commencement date or is rendered during separate periods before and on or after that date. 13 Paragraph 13(1)(b) Omit "has become incapacitated", substitute "is incapacitated". 14 After subsection 13(2A) Insert: Subsection (2A) ceases to apply (2AA) The Commonwealth is not liable, under subsection (2A), to pay a pension to a dependant of a veteran in respect of the veteran's death if the death occurs on or after the MRCA commencement date. 15 After subsection 13(6) Insert: Subsection (6) ceases to apply (6A) The Commonwealth is not liable, under subsection (6), to pay a pension in respect of a person's death, or the incapacity of a person, if: (a) either: (i) the occurrence resulting in the death or incapacity happened on or after the MRCA commencement date; or (ii) the disease was contracted on or after the MRCA commencement date; and (b) either: (i) the occurrence or disease relates to service rendered by the person on or after that date; or (ii) the occurrence or disease relates to service rendered by the person before, and on or after, that date (whether the service spans the commencement date or is rendered during separate periods before and on or after that date). 16 After subsection 15(1) Insert: (1A) However, a veteran who: (a) receives a notice under section 12 of the CTPA in respect of an aggravation of, or a material contribution to, an injury or disease; and (b) after receiving the notice, makes a claim under section 319 of the MRCA (or continues with a claim already made under that section) in respect of the aggravation or material contribution; is not entitled to apply for an increase in the rate of the pension on the ground that the veteran's incapacity has increased because of that aggravation or material contribution. Note: Under section 12 of the CTPA, a veteran who has a war‑caused or defence‑caused injury or disease that is aggravated or materially contributed to by service after the MRCA commencement date can choose whether the MRCA or the VEA will apply to the aggravated injury or disease. 16A Subsection 23(5) Repeal the subsection, substitute: (5) The rate at which pension is payable to a veteran to whom section 115D applies (veterans working under rehabilitation scheme) is the reduced amount worked out using the following formula: 16B Subsection 24(5) Repeal the subsection, substitute: (5) The rate at which pension is payable to a veteran to whom section 115D applies (veterans working under rehabilitation scheme) is the reduced amount worked out using the following formula: 16C Application of items 16A and 16B The amendments made by items 16A and 16B apply from the pension period that begins after those items commence. 17 Subsection 38(1D) Repeal the subsection, substitute: (1D) Subsection (1B) does not apply to a person whose partner: (a) is a veteran to whom section 24 applies; or (b) is receiving, or eligible to receive, a Special Rate Disability Pension under Part 6 of Chapter 4 of the MRCA. Note: A person is still eligible to receive a Special Rate Disability Pension even if the amount of the pension is totally offset under section 204 of the MRCA. 18 After paragraph 52(1)(m) Insert: (ma) if the person is provided with a motor vehicle under the Motor Vehicle Compensation Scheme under section 212 of the MRCA—the value of that motor vehicle; 19 Subsection 52Z(3A) After "following payments", insert "and amounts". 20 At the end of subsection 52Z(3A) Add: ; (g) a payment of a weekly amount under section 68, 71 or 75 of the MRCA (permanent impairment); (h) a payment of a Special Rate Disability Pension under Part 6 of Chapter 4 of the MRCA; (i) if subsection 204(5) of the MRCA applies to a person—an amount per fortnight worked out under section 5I of this Act; (j) a payment of a weekly amount mentioned in subparagraph 234(1)(b)(ii) of the MRCA (wholly dependent partner payment). Note: Subsection 204(5) of the MRCA reduces a Special Rate Disability Pension by reference to amounts of Commonwealth superannuation that the person has received or is receiving. 21 Subsection 52Z(3A) (note) Omit "payments referred to in paragraphs (a) to (e)", substitute "payments and amounts referred to in this subsection". 22 Paragraphs 70(1)(b), 70(5)(d) and 70(5A)(d) Omit "has become incapacitated", substitute "is incapacitated". 23 At the end of subsections 85(1) and (2) Add: Note: A veteran might stop being eligible to be provided with treatment under this Part for an injury or disease if the veteran is entitled to treatment under the MRCA for the injury or disease (see sections 85A and 85B of this Act). 24 Paragraph 85(4)(b) Before "a veteran", insert "before the MRCA commencement date". 25 After subsection 85(7) Insert: (7A) A veteran is eligible to be provided with treatment under this Part for any injury or disease if: (a) the veteran is receiving a service pension under Part III; and (b) an impairment suffered by the veteran from one or more service injuries or diseases constitutes at least 30 impairment points (within the meaning of the MRCA); and (c) the treatment is provided after both paragraphs (a) and (b) begin to apply to the veteran; and (d) the veteran is not already being provided with treatment for any injury or disease under Chapter 6 of the MRCA. 26 After section 85 Insert: 85A Treatment under section 279 or 280 of the MRCA for aggravated injuries or diseases (1) This section applies if: (a) a person is entitled to treatment for an aggravated injury or disease (within the meaning of the MRCA) under section 279 or 280 of the MRCA; and (b) apart from this section, the person would also be eligible to be provided with treatment for the original injury or disease under subsection 85(1) or (2) of this Act. Note: A person who is eligible to be provided with treatment under this Act for any injury or disease would continue to be provided with that treatment. (2) The person is entitled to treatment only under section 279 or 280 of the MRCA, and not under subsection 85(1) or (2) of this Act, for the original injury or disease during the period in which the person is provided with treatment for the aggravated injury or disease. (3) During this period, the treatment for the original injury or disease is taken to be treatment to which a person is entitled under Part 3 of Chapter 6 of the MRCA for the purposes of section 289 of that Act (compensable treatment) but not for the purposes of section 273 of that Act (compensation for those entitled to treatment). 85B Treatment under section 279 or 280 of the MRCA if a person is entitled to treatment under the VEA for a separate injury or disease (1) This section applies if: (a) a person is entitled to treatment for a service injury or disease (within the meaning of the MRCA) under section 279 or 280 of the MRCA; and (b) apart from this section, the person would also be eligible to be provided with treatment for a separate war‑caused or defence‑caused injury or disease under subsection 85(1) or (2) of this Act. Note: A person who is eligible to be provided with treatment under this Act for any injury or disease would continue to be provided with that treatment. (2) The person is entitled to treatment only under section 279 or 280 of the MRCA, and not under subsection 85(1) or (2) of this Act, for the war‑caused or defence‑caused injury or disease during the period in which the person is provided with treatment for the service injury or disease. (3) During this period, the treatment for the war‑caused or defence‑caused injury or disease is taken to be treatment to which a person is entitled under Part 3 of Chapter 6 of the MRCA for the purposes of section 289 of that Act (compensable treatment) but not for the purposes of section 273 of that Act (compensation for those entitled to treatment). 27 Paragraph 86(2)(c) Repeal the paragraph, substitute: (c) a deceased veteran was, before the MRCA commencement date, a prisoner of war at a time when the veteran was on operational service; 29 Subsection 91(6) Omit "approved scheme,", substitute "approved scheme or a determination under paragraph 286(1)(c) of the MRCA,". 30 Subsection 91(8) Repeal the subsection, substitute: (8) If the Pharmaceutical Benefits Remuneration Tribunal submits the recommendations and a copy of the report to the Minister: (a) the Commission may prepare an instrument under subsection (2) varying the approved scheme; or (b) the Military Rehabilitation and Compensation Commission may vary the determination under paragraph 286(1)(c) of the MRCA; in any manner the relevant Commission considers desirable as a result of its consideration of the recommendations and the report. 31 Paragraph 98B(1)(d) After "veteran had", insert ", before the MRCA commencement date,". 32 Paragraph 99(2)(c) After "veteran was", insert ", before the MRCA commencement date,". 33 Subsection 99(3) Repeal the subsection, substitute: (3) A funeral benefit must not to be granted under paragraph (1)(e) unless: (a) if subparagraph (1)(e)(i) or (ii) applies—treatment is or was provided in the institution; and (b) in any case—the treatment is or was arranged: (i) by the Commission under Part V of this Act; or (ii) by the Military Rehabilitation and Compensation Commission under Chapter 6 of the MRCA. 34 Subparagraph 99(4)(b)(iii) After "the Commission", insert "or the Military Rehabilitation and Compensation Commission". 35 After subsection 100(1) Insert: (1A) The Commission may grant a benefit towards the funeral expenses incurred in respect of a person's funeral if: (a) either: (i) the person was a wholly dependent partner of a deceased member; or (ii) the person was both an eligible young person, and a dependant of a deceased member, immediately before the member's death; and (b) the person died in indigent circumstances; and (c) section 12 of the MRCA applies in respect of the member. Note: Expressions used in this subsection have the same meanings as they have in the MRCA (see subsection (4)). 36 At the end of section 100 Add: (4) Expressions used in subsection (1A) have the same meanings as they have in the MRCA. 37 Subsection 106(2) Repeal the subsection, substitute: (2) The Commission must not grant assistance or benefits to a person under subsection (1): (a) in circumstances in which the person is eligible to be granted an allowance or assistance under another provision of this Act; or (b) to a veteran, or a dependant of a veteran or a deceased veteran, if the veteran is only a veteran because of service rendered after the MRCA commencement date. Note: The Military Rehabilitation and Compensation Commission can grant assistance or benefits to veterans who render service after the MRCA commencement date, or to dependants of such veterans (see section 424 of the MRCA). 38 Subsection 115B(1) After "classes of veterans", insert "who render service before the MRCA commencement date". 39 At the end of subsection 115B(1) Add: Note: A rehabilitation program that is being provided to a veteran under the scheme might cease if the veteran is also provided with rehabilitation under the MRCA (see section 18 of the CTPA). 39A Section 115D Repeal the section, substitute: 115D Reduced daily pension amount—pensions under Parts II and IV Application and overview of this section (1) This section applies to a veteran who is engaged in remunerative work of more than 8 hours per week as a result of undertaking a vocational rehabilitation program under the Veterans' Vocational Rehabilitation Program. The section sets out how to work out the veteran's reduced daily pension amount. This amount is used to work out the rate of pension payable under sections 23 and 24. Note: This section does not apply to certain veterans (see subsections (5) and (6)). Reduced daily pension amount during the initial period (2) A veteran's reduced daily pension amount for a pension period that occurs within the initial period is worked out using the following formula: Note 1: Expressions used in this subsection are defined in subsection (7). Note 2: The Commission can increase a reduced daily pension amount under section 115F. Reduced daily pension amount during the second period (3) A veteran's reduced daily pension amount for a pension period that occurs within the second period is worked out using the following formula: Note 1: Expressions used in this subsection are defined in subsection (7). Note 2: The Commission can increase a reduced daily pension amount under section 115F. Reduced daily pension amount 5 years after the initial period (4) A veteran's reduced daily pension amount for a pension period that occurs more than 5 years after the end of the initial period is nil. Note: The Commission can increase a reduced daily pension amount under section 115F. Veteran who is unemployed for at least 2 weeks (5) This section does not apply to a veteran who is unemployed for a continuous period of at least 2 weeks in respect of the pension periods within that 2 week period. Veteran who is blinded in both eyes (6) This section does not apply to a veteran for a pension period if the veteran is receiving a pension for the period at the special rate because of subsection 24(3). Definitions (7) In this section: CPI amount means the amount worked out using the following formula: daily above general rate for a veteran means the rate worked out using the following formula: initial period for a veteran means the period: (a) that begins on the day after the day the veteran first commenced remunerative work as a result of undertaking a vocational rehabilitation program; and (b) that ends immediately before the first CPI indexation day that occurs more than 2 years after that day. pension rate on commencement for a veteran means the rate of pension under this Act that was payable to the veteran on the day on which the veteran commenced his or her vocational rehabilitation program. second period means the period: (a) that begins immediately after the initial period; and (b) runs for 5 years. taper amount for a veteran means: (a) if the veteran's average weekly hours are 40 hours or more—nil; and (b) otherwise—the amount worked out using the following formula: 39B Subsection 115E(1) Omit "the application of the pension reduction amount to the rate", substitute "the application of section 115D in respect of the rate". Note: The heading to section 115E is replaced by the heading "Application for increase in reduced daily pension amount". 39C Subsection 115E(2) Omit "to have the pension reduction amount reduced", substitute "to have the reduced daily pension amount under section 115D increased". 39D Subsection 115F(2) Repeal the subsection, substitute: (2) If this section applies, the Commission may increase in writing the veteran's reduced daily pension amount under section 115D, for a past, present or future pension period, to the amount that the Commission is satisfied results in the work a