Commonwealth: Veterans’ Affairs Legislation Amendment (Military Compensation Review and Other Measures) Act 2013 (Cth)

Veterans' Affairs Legislation Amendment (Military Compensation Review and Other Measures) Act 2013 No. 99, 2013 Compilation No. 1 Compilation date: 10 December 2013 Includes amendments up to: Act No. 5, 2015 Registered: 5 March 2015 About this compilation This compilation This is a compilation of the Veterans' Affairs Legislation Amendment (Military Compensation Review and Other Measures) Act 2013 that shows the text of the law as amended and in force on 10 December 2013 (the compilation date). This compilation was prepared on 5 March 2015. 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 ComLaw (www.comlaw.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 ComLaw 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. 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 ComLaw 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 Self-repealing provisions If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.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 1 Short title 2 Commencement 3 Schedule(s) Schedule 1—Rehabilitation and transition management Military Rehabilitation and Compensation Act 2004 Safety, Rehabilitation and Compensation Act 1988 Schedule 2—Compensation for permanent impairment Military Rehabilitation and Compensation Act 2004 Schedule 3—Expanded lump sum options for wholly dependent partners Part 1—Main amendments Military Rehabilitation and Compensation Act 2004 Part 2—Consequential amendments A New Tax System (Family Assistance) Act 1999 Farm Household Support Act 1992 Social Security Act 1991 Veterans' Entitlements Act 1986 Part 3—Saving and transitional provisions Schedule 4—Weekly compensation for eligible young persons Military Rehabilitation and Compensation Act 2004 Schedule 5—Compensation for financial advice and legal advice Part 1—Main amendments Military Rehabilitation and Compensation Act 2004 Part 2—Consequential amendments Income Tax Assessment Act 1997 Schedule 6—Special Rate Disability Pension Military Rehabilitation and Compensation Act 2004 Schedule 7—Superannuation Military Rehabilitation and Compensation Act 2004 Schedule 8—Remittal power of Veterans' Review Board Military Rehabilitation and Compensation Act 2004 Schedule 9—Membership of the Military Rehabilitation and Compensation Commission Military Rehabilitation and Compensation Act 2004 Schedule 10—Aggravation of or material contribution to war‑caused or defence‑caused injury or disease Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004 Veterans' Entitlements Act 1986 Schedule 11—Treatment for certain SRCA injuries Military Rehabilitation and Compensation Act 2004 Safety, Rehabilitation and Compensation Act 1988 Veterans' Entitlements Act 1986 Schedule 12—Members Military Rehabilitation and Compensation Act 2004 Schedule 13—Treatment costs Aged Care Act 1997 Australian Participants in British Nuclear Tests (Treatment) Act 2006 Military Rehabilitation and Compensation Act 2004 Veterans' Entitlements Act 1986 Schedule 14—Travelling expenses Veterans' Entitlements Act 1986 Schedule 15—Payments into accounts Military Rehabilitation and Compensation Act 2004 Veterans' Entitlements Act 1986 Schedule 16—Other amendments Social Security Act 1991 Veterans' Entitlements Act 1986 Endnotes Endnote 1—About the endnotes Endnote 2—Abbreviation key Endnote 3—Legislation history Endnote 4—Amendment history An Act to amend the Military Rehabilitation and Compensation Act 2004 and other legislation, and for related purposes 1 Short title This Act may be cited as the Veterans' Affairs Legislation Amendment (Military Compensation Review and Other Measures) Act 2013. 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 this Act receives the Royal Assent. 28 June 2013 2. Schedules 1 to 8 1 July 2013. 1 July 2013 3. Schedule 9 The day this Act receives the Royal Assent. 28 June 2013 4. Schedule 10 1 July 2013. 1 July 2013 5. Schedule 11 10 December 2013. 10 December 2013 6. Schedule 12 1 July 2013. 1 July 2013 7. Schedule 13 The 28th day after this Act receives the Royal Assent. 26 July 2013 8. Schedules 14 to 16 The day this Act receives the Royal Assent. 28 June 2013 Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act. (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be 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. Schedule 1—Rehabilitation and transition management Military Rehabilitation and Compensation Act 2004 1 Subsection 5(1) (definition of service chief) Repeal the definition. 2 Subsection 10(1) Omit "Reservist's service chief", substitute "Chief of the Defence Force". 3 Section 37 Omit: A case manager is appointed under Part 5 to assist a full‑time member move to civilian life if the member is likely to be discharged from the Defence Force. substitute: A case manager is appointed under Part 5 to assist a Permanent Forces member, a continuous full‑time Reservist or a part‑time Reservist move to civilian life if the person is likely to be discharged from the Defence Force. 4 Subsection 39(1) Omit "service chief of each arm of the Defence Force", substitute "Chief of the Defence Force". 5 Paragraph 39(3)(a) Omit "the person's service chief for", substitute "subject to paragraph (aa), the Chief of the Defence Force for". 6 Subparagraph 39(3)(a)(i) Omit "or a continuous full‑time Reservist", substitute ", a continuous full‑time Reservist or a part‑time Reservist". 7 Subparagraph 39(3)(a)(ii) Omit "person's service chief", substitute "Chief of the Defence Force". 8 After paragraph 39(3)(a) Insert: (aa) if the Commission, after considering advice from the Chief of the Defence Force, determines, in writing, that the Commission is to be the rehabilitation authority for a specified person at a specified time—the Commission for that time; or 9 At the end of section 39 Add: (4) A determination made under paragraph (3)(aa) is not a legislative instrument. 10 Section 42 Omit: Most decisions under this Part are made by the person's rehabilitation authority. The rehabilitation authority is either the person's service chief or the Commission. substitute: Most decisions under this Part are made by the person's rehabilitation authority. The rehabilitation authority is either the Chief of the Defence Force or the Commission. 11 Paragraphs 61(3)(a), (b) and (c) Omit "person's service chief", substitute "Chief of the Defence Force". 12 Section 63 Repeal the section, substitute: 63 Simplified outline of this Part Under this Part, a case manager is appointed to assist a Permanent Forces member, a continuous full‑time Reservist or a part‑time Reservist move from the Defence Force to civilian life if the member or Reservist is likely to be discharged from the Defence Force for medical reasons (whether or not as a result of a service injury or disease). 13 Paragraph 64(1)(a) Omit "or a continuous full‑time Reservist", substitute ", a continuous full‑time Reservist or a part‑time Reservist". 14 Paragraph 64(1)(b) Omit "person's service chief", substitute "Chief of the Defence Force". 15 Subsection 64(2) Omit "person's service chief", substitute "Chief of the Defence Force". 16 Paragraph 86(1)(d) Omit "person's service chief", substitute "Chief of the Defence Force". 17 Subsection 86(1) (note 2) Repeal the note, substitute: Note 2: If the Chief of the Defence Force has advised the Commission under section 10 that a person is unlikely to be able to perform the duties of a part‑time Reservist in the future, the person might be entitled to compensation under Part 4. 18 Subsection 91(4) Omit "member's service chief", substitute "Chief of the Defence Force". 19 Subsection 96(2) Omit "Reservist's service chief", substitute "Chief of the Defence Force". 20 Subsection 96(3) (definition of pay‑related allowance days) Omit "Reservist's service chief", substitute "Chief of the Defence Force". 21 Subsection 96(3) (definition of reserve days) Omit "Reservist's service chief", substitute "Chief of the Defence Force". 22 Subsection 104(4) Omit "Reservist's service chief", substitute "Chief of the Defence Force". 23 Subsection 109(4) Omit "Reservist's service chief", substitute "Chief of the Defence Force". 24 Subsection 114(2) Omit "Reservist's service chief", substitute "Chief of the Defence Force". 25 Subsection 141(4) Omit "person's service chief", substitute "Chief of the Defence Force". 26 Subsection 144(4) Omit "person's service chief", substitute "Chief of the Defence Force". 27 Subsection 149(2) Omit "person's service chief", substitute "Chief of the Defence Force". 28 Subsection 154(2) Omit "person's service chief", substitute "Chief of the Defence Force". 29 Subsection 161(2) Omit "person's service chief", substitute "Chief of the Defence Force". 30 Subsection 164(4) Omit "person's service chief", substitute "Chief of the Defence Force". 31 Subsection 168(4) Omit "person's service chief", substitute "Chief of the Defence Force". 32 Subsection 173(2) Omit "person's service chief", substitute "Chief of the Defence Force". 33 Subsection 188(6) (definition of cessation date) Omit "person's service chief", substitute "Chief of the Defence Force". 34 Subsection 189(3) Omit "person's service chief", substitute "Chief of the Defence Force". 35 Paragraphs 189(3)(a), (b), (c) and (d) Omit "service chief", substitute "Chief of the Defence Force". 36 Paragraph 272(e) Omit "member's service chief", substitute "Chief of the Defence Force". 37 Paragraph 279(d) Omit "member's service chief", substitute "Chief of the Defence Force". 38 Section 318 Omit: The Commission can require information or documents that are relevant to a claim to be provided. A service chief or a person who has made a claim can require the Commission to provide information or documents that are relevant to a claim. substitute: The Commission can require information or documents that are relevant to a claim to be provided. The Chief of the Defence Force or a person who has made a claim can require the Commission to provide information or documents that are relevant to a claim. 39 Subsections 319(3) and (4) Omit "person's service chief", substitute "Chief of the Defence Force". 40 Paragraph 331(1)(a) Omit "member or former member's service chief", substitute "Chief of the Defence Force". 41 Paragraph 331(1)(b) Omit "deceased member's service chief", substitute "Chief of the Defence Force". 42 Section 335 (heading) Repeal the heading, substitute: 335 Standard of proof for Commission and Chief of the Defence Force 43 Subsection 335(3) Omit "a service chief", substitute "the Chief of the Defence Force". 44 Section 344 Omit: Most determinations made by the Commission (the original determinations) can be reconsidered and reviewed. This also applies to decisions of service chiefs about rehabilitation. substitute: Most determinations made by the Commission (the original determinations) can be reconsidered and reviewed. This also applies to decisions of the Chief of the Defence Force about rehabilitation. 45 Section 344 Omit: The Commission or a service chief must give notice of an original determination to the claimant. The notice must set out the terms of and the reasons for the determination and the claimant's rights to apply for reconsideration or review. substitute: The Commission or the Chief of the Defence Force must give notice of an original determination to the claimant. The notice must set out the terms of and the reasons for the determination and the claimant's rights to apply for reconsideration or review. 46 Section 344 Omit: The Commission or a service chief can also initiate reconsideration of original determinations made by the Commission or the service chief. substitute: The Commission or the Chief of the Defence Force can also initiate reconsideration of original determinations made by the Commission or the Chief of the Defence Force. 47 Subsection 345(1) (paragraph (b) of the definition of original determination) Omit "a service chief", substitute "the Chief of the Defence Force". 48 Subsection 345(1) (paragraph (b) of the definition of original determination) Omit "the service chief", substitute "the Chief of the Defence Force". 49 Subsection 346(2) Omit "relevant service chief", substitute "Chief of the Defence Force". 50 Subsection 346(3) Omit "a service chief", substitute "the Chief of the Defence Force". 51 Subsection 346(3) Omit "the service chief", substitute "the Chief of the Defence Force". 52 Subsection 346(4) Omit "service chief", substitute "Chief of the Defence Force". 53 Section 347 (heading) Repeal the heading, substitute: 347 Commission or Chief of the Defence Force initiating reconsideration of original determinations 54 Subsection 347(2) Omit "A service chief", substitute "The Chief of the Defence Force". 55 Subsection 347(2) Omit "the service chief", substitute "the Chief of the Defence Force". 56 Subsection 347(3) Omit "a service chief", substitute "the Chief of the Defence Force". 57 Subsection 347(3) Omit "the service chief", substitute "the Chief of the Defence Force". 58 Subsections 347(4), (5) and (6) Omit "a service chief", substitute "the Chief of the Defence Force". 59 Subsection 348(1) Omit "a service chief", substitute "the Chief of the Defence Force". 60 Paragraphs 348(1)(a) and (b) Omit "that service chief", substitute "the Chief of the Defence Force". 61 Subsection 348(2) Omit "a service chief", substitute "the Chief of the Defence Force". 62 Subsection 348(2) Omit "that service chief", substitute "the Chief of the Defence Force". 63 Section 349 (heading) Repeal the heading, substitute: 349 Claimant or Chief of the Defence Force initiating reconsideration of determinations 64 Subsection 349(2) Omit "a service chief", substitute "the Chief of the Defence Force". 65 Subsection 349(4) Omit "relevant service chief", substitute "Chief of the Defence Force". 66 Subsection 351(3) Omit "relevant service chief", substitute "Chief of the Defence Force". 67 Subsection 353(2) (table item 12) Omit "relevant service chief", substitute "Chief of the Defence Force". 68 Subsection 353(2) (table item 18) Omit "relevant service chief if the service chief", substitute "Chief of the Defence Force if the Chief of the Defence Force". 69 Subsection 354(1A) Omit "service chief", substitute "Chief of the Defence Force". 70 Section 355 (table item 2) Omit "relevant service chief", substitute "Chief of the Defence Force". 71 Subsections 357(3) and (4) Omit "a service chief", substitute "the Chief of the Defence Force". 72 Paragraph 408A(1)(c) Omit "person's service chief", substitute "Chief of the Defence Force". 73 Subparagraph 408A(1)(e)(iii) Omit "person's service chief", substitute "Chief of the Defence Force". 74 Subsection 409(2) (table item 2) Omit "A service chief", substitute "The Chief of the Defence Force". 75 Section 438 Repeal the section, substitute: 438 Delegation by Chief of the Defence Force and service chiefs Delegation by Chief of the Defence Force (1) The Chief of the Defence Force may, in writing, delegate any of his or her functions or powers under a provision of this Act to the service chief of an arm of the Defence Force. Delegation by service chiefs (2) A service chief to whom functions or powers under a provision of this Act are delegated under subsection (1) may, in writing, delegate any of those functions or powers to: (a) a person: (i) who is engaged under the Public Service Act 1999 and performing duties in the Department administered by the Defence Minister or the Veterans' Affairs Minister; and (ii) whose duties relate to matters to which the provision relates; or (b) a member of the Defence Force whose duties relate to matters to which the provision relates. Chief of the Defence Force is the final decision‑maker (3) A function or power that is performed or exercised by a person under a delegation under subsection (2) is taken, for the purposes of this Act, to have been performed or exercised by the Chief of the Defence Force. 76 Application provisions (1) Part 2 of Chapter 3 of the Military Rehabilitation and Compensation Act 2004 applies, on and after the commencement of item 6, in relation to a part‑time Reservist, where the liability referred to in paragraph 43(1)(b) of that Act was accepted before, on or after the commencement of that item. (2) The amendment made by item 13 applies in relation to: (a) a part‑time Reservist identified, on or after the commencement of that item, as being likely to be discharged from the Defence Force for medical reasons; and (b) a part‑time Reservist identified, before the commencement of that item, as being likely to be discharged from the Defence Force for medical reasons, where he or she has not been so discharged before that commencement. 77 Saving provision (1) A thing done by, or in relation to, a service chief under the Military Rehabilitation and Compensation Act 2004 before the commencement of this item has effect, after that commencement, as if it had been done by, or in relation to, the Chief of the Defence Force under that Act. (2) Subitem (1) does not apply in relation to an instrument of delegation under section 438 of that Act. Safety, Rehabilitation and Compensation Act 1988 78 Section 141 (definition of service chief) Repeal the definition, substitute: service chief means the service chief of an arm of the Defence Force. 79 Subsection 143(1) Omit "employee's service chief", substitute "Chief of the Defence Force". 80 Subsection 148(1) Omit "a service chief", substitute "the Chief of the Defence Force". 81 Paragraph 148(1)(b) Omit "service chief" (wherever occurring), substitute "Chief of the Defence Force". 82 Subsection 148(2) Omit "service chief", substitute "Chief of the Defence Force". 83 After paragraph 151(1)(b) Insert: (ba) the Chief of the Defence Force; or 84 Subsection 152(2) Repeal the subsection, substitute: (2) The Chief of the Defence Force may, in writing, delegate any of his or her functions or powers under a provision of this Act to a service chief. (3) A service chief to whom functions or powers under a provision of this Act are delegated under subsection (2) may, in writing, delegate any of those functions or powers to a person to whom the service chief can, under subsection 438(2) of the MRCA, delegate functions or powers delegated to the service chief under subsection 438(1) of the MRCA. (4) A function or power that is performed or exercised by a person under a delegation under subsection (3) is taken, for the purposes of this Act, to have been performed or exercised by the Chief of the Defence Force. 85 Saving provision (1) A thing done by, or in relation to, a service chief under Part XI of the Safety, Rehabilitation and Compensation Act 1988 before the commencement of this item has effect, after that commencement, as if it had been done by, or in relation to, the Chief of the Defence Force under that Part. (2) Subitem (1) does not apply in relation to an instrument of delegation under subsection 152(2) of that Act. Schedule 2—Compensation for permanent impairment Military Rehabilitation and Compensation Act 2004 1 Paragraph 75(1)(c) Omit "10 impairment points", substitute "the number of impairment points required for the person to become entitled to compensation under section 68 or 71". 2 Subsection 75(1) (note 1) Omit "10". 3 Subsection 75(2) Omit "(but not having regard to the effect of the injuries or diseases on the person's lifestyle)", substitute "and after assessing the effect of the injuries or diseases on the person's lifestyle". 4 Subsection 75(3) Omit "10 impairment points", substitute "the number of impairment points required for the person to become entitled to compensation under section 68 or 71". 5 Subsection 77(1) After "section 68", insert ", to the extent the compensation is in respect of a service injury or disease,". 6 Paragraph 77(1)(a) Repeal the paragraph, substitute: (a) the date on which a claim was made under section 319 for acceptance of liability for the injury or disease; and 7 Subsection 77(2) After "subsection 71(1)", insert ", to the extent the compensation is in respect of a service injury or disease,". 8 Paragraph 77(2)(a) Repeal the paragraph, substitute: (a) the date on which a claim was made under section 319 for acceptance of liability for the injury or disease; and 9 Subsection 77(3) Omit "in relation to a deterioration in a person's condition", substitute ", to the extent the compensation is in respect of a deterioration in a service injury or disease,". 10 Paragraph 77(3)(a) Repeal the paragraph, substitute: (a) the date on which the Commission was notified of the deterioration in the service injury or disease; and 11 Subsection 77(4) After "section 75", insert ", to the extent the compensation is in respect of a service injury or disease,". 12 Paragraph 77(4)(a) Repeal the paragraph, substitute: (a) the date on which a claim was made under section 319 for acceptance of liability for the injury or disease; and 13 Application and transitional provisions—interim compensation and dates of effect (1) The amendments made by items 1, 2 and 4 apply in relation to a claim for compensation that is made on or after 1 July 2013. (2) The amendment made by item 3 applies in relation to a determination that is made under subsection 75(2) of the Military Rehabilitation and Compensation Act 2004 on or after 1 July 2013, to the extent that the interim compensation is in respect of days that occur on or after 1 July 2013. (3) If: (a) immediately before the commencement of this item, a weekly amount of interim compensation was payable to a person under subsection 75(2) of the Military Rehabilitation and Compensation Act 2004; and (b) before the commencement of this item, the person had not made a choice under section 78 of that Act in relation to that weekly amount; and (c) immediately before the commencement of this item, the Commission was not satisfied that the one or more injuries or diseases concerned had all stabilised; then: (d) the Commission must, as soon as practicable after the commencement of this item, determine the weekly amount of interim compensation under subsection 75(2) of that Act (as amended by this Act); and (e) that amount is payable to the person under that subsection for days on or after 1 July 2013; and (f) the Commission must, as soon as practicable after the commencement of this item, give the person a notice under subsection 76(1) of that Act in relation to that determination; and (g) any notice given to the person under subsection 76(1) of that Act, before the commencement of this item, in relation to the weekly amount of interim compensation payable to the person under subsection 75(2) of that Act immediately before that commencement, is taken to have been withdrawn. (4) The amendments made by items 5 and 6 apply, in relation to a service injury or disease of a person, where the Commonwealth first becomes liable to pay compensation to the person under section 68 of the Military Rehabilitation and Compensation Act 2004, in relation to that injury or disease, on or after the commencement of those items. (5) The amendments made by items 7 and 8 apply, in relation to a service injury or disease of a person, where the Commonwealth first becomes liable to pay additional compensation to the person under subsection 71(1) of the Military Rehabilitation and Compensation Act 2004, in relation to that injury or disease, on or after the commencement of those items. (6) The amendments made by items 9 and 10 apply, in relation to a deterioration in a service injury or disease of a person, where the Commonwealth first becomes liable to pay additional compensation to the person under subsection 71(2) of the Military Rehabilitation and Compensation Act 2004, in relation to that deterioration, on or after the commencement of those items. (7) The amendments made by items 11 and 12 apply, in relation to a service injury or disease of a person, where the Commonwealth first becomes liable to pay interim compensation to the person under section 75 of the Military Rehabilitation and Compensation Act 2004, in relation to that injury or disease, on or after the commencement of those items. 14 Transitional provision—recalculation of amounts paid before 1 July 2013 If: (a) before 1 July 2013, either or both of the following is paid to a person: (i) a weekly amount of compensation under Part 2 of Chapter 4 of the Military Rehabilitation and Compensation Act 2004; (ii) a lump sum under section 78 of that Act; and (b) before, on or after 1 July 2013, the Commission, under subsection 67(3) of that Act, makes an instrument amending or substituting Chapter 25 of the guide referred to in section 67 of that Act and the instrument takes effect on 1 July 2013; and (c) as a result of the amendments, the Commission recalculates the amount of the weekly amount, the lump sum or both; and (d) as a result of the recalculation, a lump sum under that Act is paid to the person; then section 79 of that Act does not apply in relation to the payment of the lump sum mentioned in paragraph (d). Schedule 3—Expanded lump sum options for wholly dependent partners Part 1—Main amendments Military Rehabilitation and Compensation Act 2004 1 Section 232 Omit: Division 2 provides the partner with a choice between compensation as a lump sum or as a weekly amount. The Division also provides additional lump sum compensation for a partner if the deceased member died from a service death. substitute: Division 2 provides that compensation is payable weekly, but that the partner may choose to convert 25%, 50%, 75% or 100% of the weekly amount to a lump sum. Division 2 also provides additional lump sum compensation for a partner if the deceased member died from a service death. 2 Paragraph 234(1)(b) Repeal the paragraph, substitute: (b) in any case—subject to section 236, the weekly amount mentioned in subsection (5) of this section. 3 Subsection 234(1) (note) Repeal the note, substitute: Note: Section 236 allows the partner to choose to convert 25%, 50%, 75% or 100% of the weekly amount to a lump sum. 4 Subsection 234(4) Repeal the subsection. 5 Subsection 234(5) Omit "subparagraph (1)(b)(ii)", substitute "paragraph (1)(b)". 6 Subsection 234(7) (definition of partner's age‑based number) Omit "or (b)". 7 Section 235 (heading) Repeal the heading, substitute: 235 Notifying the partner 8 Paragraph 235(1)(a) Repeal the paragraph. 9 Paragraph 235(1)(b) Omit "subparagraph 234(1)(b)(ii)", substitute "paragraph 234(1)(b)". 10 Paragraph 235(1)(c) Repeal the paragraph, substitute: (c) advising the partner that he or she can choose, under section 236, to convert 25%, 50%, 75% or 100% of the weekly amount to a lump sum in accordance with that section; and (ca) advising the partner of the amount of the lump sum that would be payable to the partner in each of those cases; and 11 Section 236 (heading) Repeal the heading, substitute: 236 Choice to take lump sum 12 Subsection 236(1) Repeal the subsection, substitute: (1) A partner who receives a notice under section 235 may choose to convert 25%, 50%, 75% or 100% of the weekly amount to a lump sum. 13 Subsections 236(4) and (5) Repeal the subsections, substitute: (4) The Commission may, either before or after the end of that period, extend the period within which the choice must be made if it considers there are special circumstances for doing so. Amount of lump sum (5) The amount of the lump sum is worked out using the following formula: where: appropriate percentage means the percentage chosen by the partner under subsection (1). partner's age‑based number, in respect of a lump sum, means the number that is advised by the Australian Government Actuary by reference to the partner's age at the date of the member's death. No lump sum for legal personal representative of a deceased partner (6) The legal personal representative of a deceased partner is not entitled to choose to convert any percentage of the weekly amount that was payable to the deceased partner to a lump sum. Effect on weekly payment of choosing a lump sum (7) If a partner who receives a notice under section 235 chooses to convert 100% of the weekly amount to a lump sum, then, as soon as practicable after the choice is made, the weekly amount ceases to be payable to the partner. (8) If a partner who receives a notice under section 235 chooses to convert 25%, 50% or 75% of the weekly amount to a lump sum, then, as soon as practicable after the choice is made, the weekly amount must be reduced accordingly. 14 Section 237 Repeal the section. 15 Paragraph 301(5)(b) Repeal the paragraph, substitute: (b) at any time and in respect of the member's death, the person chose under section 236 to convert a percentage of the weekly amount mentioned in paragraph 234(1)(b) to a lump sum. 16 Subsection 321(2) (note 2) Repeal the note, substitute: Note 2: The legal personal representative of a deceased partner cannot convert compensation for a member's death to a lump sum (see section 236). Part 2—Consequential amendments A New Tax System (Family Assistance) Act 1999 17 Paragraph 7(hc) of Schedule 3 Repeal the paragraph, substitute: (hc) a payment of the weekly amount mentioned in paragraph 234(1)(b) of the Military Rehabilitation and Compensation Act 2004 (including a reduced weekly amount because of a choice under section 236 of that Act) or of a lump sum mentioned in subsection 236(5) of that Act; Farm Household Support Act 1992 18 Subsection 12(4A) Omit "a weekly amount mentioned in paragraph 234(1)(b) of the Military Rehabilitation and Compensation Act 2004, or has received a lump sum mentioned in that paragraph", substitute "the weekly amount mentioned in paragraph 234(1)(b) of the Military Rehabilitation and Compensation Act 2004 (including a reduced weekly amount because of a choice under section 236 of that Act) or has received a lump sum mentioned in subsection 236(5) of that Act". Social Security Act 1991 19 Paragraph 47(7)(b) Repeal the paragraph, substitute: (b) is receiving the weekly amount mentioned in paragraph 234(1)(b) of the MRCA (including a reduced weekly amount because of a choice under section 236 of the MRCA) or has received a lump sum mentioned in subsection 236(5) of the MRCA; and 20 Paragraph 103(7)(b) Repeal the paragraph, substitute: (b) is receiving the weekly amount mentioned in paragraph 234(1)(b) of the MRCA (including a reduced weekly amount because of a choice under section 236 of the MRCA) or has received a lump sum mentioned in subsection 236(5) of the MRCA; and 21 Paragraph 151(7)(b) Repeal the paragraph, substitute: (b) is receiving the weekly amount mentioned in paragraph 234(1)(b) of the MRCA (including a reduced weekly amount because of a choice under section 236 of the MRCA) or has received a lump sum mentioned in subsection 236(5) of the MRCA; and 22 Paragraph 202(7)(b) Repeal the paragraph, substitute: (b) is receiving the weekly amount mentioned in paragraph 234(1)(b) of the MRCA (including a reduced weekly amount because of a choice under section 236 of the MRCA) or has received a lump sum mentioned in subsection 236(5) of the MRCA; and 23 Paragraph 500S(5)(b) Repeal the paragraph, substitute: (b) the person is receiving the weekly amount mentioned in paragraph 234(1)(b) of the MRCA (including a reduced weekly amount because of a choice under section 236 of the MRCA) or has received a lump sum mentioned in subsection 236(5) of the MRCA. 24 Paragraph 552(3)(b) Repeal the paragraph, substitute: (b) the person is receiving the weekly amount mentioned in paragraph 234(1)(b) of the MRCA (including a reduced weekly amount because of a choice under section 236 of the MRCA) or has received a lump sum mentioned in subsection 236(5) of the MRCA. 25 Section 573A (table item 4A) After "Paragraph 234(1)(b)", insert "or subsection 236(5)". 26 Paragraph 578(4)(b) Repeal the paragraph, substitute: (b) the person is receiving the weekly amount mentioned in paragraph 234(1)(b) of the MRCA (including a reduced weekly amount because of a choice under section 236 of the MRCA) or has received a lump sum mentioned in subsection 236(5) of the MRCA. 27 Paragraph 614(3B)(b) Repeal the paragraph, substitute: (b) the person is receiving the weekly amount mentioned in paragraph 234(1)(b) of the MRCA (including a reduced weekly amount because of a choice under section 236 of the MRCA) or has received a lump sum mentioned in subsection 236(5) of the MRCA. 28 Paragraph 660YCF(6)(b) Repeal the paragraph, substitute: (b) the person is receiving the weekly amount mentioned in paragraph 234(1)(b) of the MRCA (including a reduced weekly amount because of a choice under section 236 of the MRCA) or has received a lump sum mentioned in subsection 236(5) of the MRCA. 29 Paragraph 686(4A)(b) Repeal the paragraph, substitute: (b) the person is receiving the weekly amount mentioned in paragraph 234(1)(b) of the MRCA (including a reduced weekly amount because of a choice under section 236 of the MRCA) or has received a lump sum mentioned in subsection 236(5) of the MRCA. 30 Paragraph 735(5)(b) Repeal the paragraph, substitute: (b) the person is receiving the weekly amount mentioned in paragraph 234(1)(b) of the MRCA (including a reduced weekly amount because of a choice under section 236 of the MRCA) or has received a lump sum mentioned in subsection 236(5) of the MRCA. 31 Subsection 771HI(4) Omit "has received a lump sum, or is receiving weekly amounts, mentioned in paragraph 234(1)(b) of the MRCA", substitute "is receiving the weekly amount mentioned in paragraph 234(1)(b) of the MRCA (including a reduced weekly amount because of a choice under section 236 of the MRCA) or has received a lump sum mentioned in subsection 236(5) of the MRCA". 32 Paragraph 787(5)(b) Repeal the paragraph, substitute: (b) the person is receiving the weekly amount mentioned in paragraph 234(1)(b) of the MRCA (including a reduced weekly amount because of a choice under section 236 of the MRCA) or has received a lump sum mentioned in subsection 236(5) of the MRCA. 33 Subparagraph 1061PE(4)(e)(viii) Omit "compensation mentioned in paragraph 234(1)(b) of the Military Rehabilitation and Compensation Act", substitute "the weekly amount mentioned in paragraph 234(1)(b) of the Military Rehabilitation and Compensation Act (including a reduced weekly amount because of a choice under section 236 of that Act) or a lump sum mentioned in subsection 236(5) of that Act". 34 Paragraph 1061PJ(4)(c) Repeal the paragraph, substitute: (c) the weekly amount mentioned in paragraph 234(1)(b) of the Military Rehabilitation and Compensation Act (including a reduced weekly amount because of a choice under section 236 of that Act). 35 Paragraph 1064(7)(a) Omit "has received a lump sum, or is receiving a weekly amount, mentioned in paragraph 234(1)(b) of the Military Rehabilitation and Compensation Act", substitute "is receiving the weekly amount mentioned in paragraph 234(1)(b) of the MRCA (including a reduced weekly amount because of a choice under section 236 of the MRCA) or has received a lump sum mentioned in subsection 236(5) of the MRCA". 36 Paragraph 1065(6)(a) Omit "has received a lump sum, or is receiving a weekly amount, mentioned in paragraph 234(1)(b) of the Military Rehabilitation and Compensation Act", substitute "is receiving the weekly amount mentioned in paragraph 234(1)(b) of the MRCA (including a reduced weekly amount because of a choice under section 236 of the MRCA) or has received a lump sum mentioned in subsection 236(5) of the MRCA". 37 Section 1067G (table items 4A and 20A in Module L of the Youth Allowance Rate Calculator) After "Paragraph 234(1)(b)", insert "or subsection 236(5)". Veterans' Entitlements Act 1986 38 Subsection 5E(1) (subparagraph (b)(ii) of the definition of war widow) Repeal the subparagraph, substitute: (ii) is receiving the weekly amount mentioned in paragraph 234(1)(b) of the MRCA (including a reduced weekly amount because of a choice under section 236 of the MRCA) or has received a lump sum mentioned in subsection 236(5) of the MRCA; or 39 Subsection 5E(1) (subparagraph (b)(ii) of the definition of war widower) Repeal the subparagraph, substitute: (ii) is receiving the weekly amount mentioned in paragraph 234(1)(b) of the MRCA (including a reduced weekly amount because of a choice under section 236 of the MRCA) or has received a lump sum mentioned in subsection 236(5) of the MRCA; or 40 Subsection 5H(1) (paragraphs (ca) and (cb) of the definition of adjusted income) Repeal the paragraphs, substitute: (ca) if compensation under section 233 of the MRCA is payable to the person and the person has not made a choice under section 236 of the MRCA—any payment of the weekly amount mentioned in paragraph 234(1)(b) of the MRCA; and (cb) if compensation under section 233 of the MRCA is payable to the person and the person has made a choice under section 236 of the MRCA—any weekly amount mentioned in paragraph 234(1)(b) of the MRCA that the person would have been paid if the person had not made that choice; and 41 Paragraph 5H(8)(zu) Omit "subparagraph 234(1)(b)(i), or of a weekly amount mentioned in subparagraph 234(1)(b)(ii), of the MRCA", substitute "subsection 236(5) of the MRCA or of the weekly amount mentioned in paragraph 234(1)(b) of the MRCA (including a reduced weekly amount because of a choice under section 236 of the MRCA)". 42 Subsection 5Q(1) (paragraph (b) of the definition of war widow/war widower—pensioner) Repeal the paragraph, substitute: (b) a person who is receiving the weekly amount mentioned in paragraph 234(1)(b) of the MRCA (including a reduced weekly amount because of a choice under section 236 of the MRCA) or who has received a lump sum mentioned in subsection 236(5) of the MRCA. 43 Paragraph 45N(1)(d) Omit "a lump sum mentioned in paragraph 234(1)(b) of the MRCA, or a weekly amount mentioned in that paragraph", substitute "the weekly amount mentioned in paragraph 234(1)(b) of the MRCA (including a reduced weekly amount because of a choice under section 236 of the MRCA), or a lump sum mentioned in subsection 236(5) of the MRCA". 44 Subparagraph 45R(2)(a)(ii) Omit "subparagraph 234(1)(b)(i)", substitute "subsection 236(5)". 45 Subparagraph 45R(2)(a)(iii) Omit "a weekly amount mentioned in subparagraph 234(1)(b)(ii) of the MRCA", substitute "the weekly amount mentioned in paragraph 234(1)(b) of the MRCA (including a reduced weekly amount because of a choice under section 236 of the MRCA)". 46 Subparagraph 45TB(3)(a)(iii) Omit "a lump sum or a weekly amount mentioned in paragraph 234(1)(b) of the MRCA", substitute "the weekly amount mentioned in paragraph 234(1)(b) of the MRCA (including a reduced weekly amount because of a choice under section 236 of the MRCA) or a lump sum mentioned in subsection 236(5) of the MRCA". 47 Subparagraph 45TB(3)(a)(iii) Omit "lump sum or weekly amount", substitute "weekly amount or lump sum". 48 Paragraph 52Z(3A)(j) Omit "subparagraph 234(1)(b)(ii) of the MRCA", substitute "paragraph 234(1)(b) of the MRCA (including a reduced weekly amount because of a choice under section 236 of the MRCA)". Part 3—Saving and transitional provisions 49 Definition In this Part: old lump sum means a lump sum mentioned in subparagraph 234(1)(b)(i) of the Military Rehabilitation and Compensation Act 2004 (as in force before the commencement of this Part), whether that lump sum is paid before, on or after that commencement. 50 Lump sum choice made before commencement—old law continues to apply (1) The amendment made by item 12 does not affect the validity of a choice made before the commencement of that item under section 236 of the Military Rehabilitation and Compensation Act 2004. (2) Division 2 of Part 2 of Chapter 5 of the Military Rehabilitation and Compensation Act 2004, as in force immediately before the commencement of this item, continues to apply on and after that commencement in relation to a choice mentioned in subitem (1). 51 Lump sum choice not made before commencement—new notice to be given If: (a) before the commencement of this item, the Commission gave a wholly dependent partner of a deceased member a notice (the old notice) under section 235 of the Military Rehabilitation and Compensation Act 2004; and (b) immediately before that commencement, the partner had not made a choice under section 236 of that Act; and (c) immediately before that commencement, the period for making that choice had not ended; then: (d) the old notice is taken to have been withdrawn; and (e) as soon as practicable after that commencement, the Commission must give the partner a written notice under section 235 of that Act (as amended by this Act). 52 Preserving things done before commencement—Military Rehabilitation and Compensation Act 2004 If: (a) a choice was made before the commencement of this item under section 236 of the Military Rehabilitation and Compensation Act 2004; and (b) the choice was to be paid a lump sum; then paragraph 301(5)(b) of that Act applies, on and after that commencement, as if the choice were a choice of the kind referred to in that paragraph. 53 Preserving things done before commencement—A New Tax System (Family Assistance) Act 1999 Paragraph 7(hc) of Schedule 3 to the A New Tax System (Family Assistance) Act 1999 applies on and after the commencement of this item as if a reference to a lump sum mentioned in subsection 236(5) of the Military Rehabilitation and Compensation Act 2004 included a reference to an old lump sum. 54 Preserving things done before commencement—Farm Household Support Act 1992 Subsection 12(4A) of the Farm Household Support Act 1992 applies on and after the commencement of this item as if a reference to a lump sum mentioned in subsection 236(5) of the Military Rehabilitation and Compensation Act 2004 included a reference to an old lump sum. 55 Preserving things done before commencement—Social Security Act 1991 (1) The following provisions of the Social Security Act 1991 apply on and after the commencement of this item as if a reference to a lump sum mentioned in subsection 236(5) of the Military Rehabilitation and Compensation Act 2004 included a reference to an old lump sum: (a) paragraph 47(7)(b); (b) paragraph 103(7)(b); (c) paragraph 151(7)(b); (d) paragraph 202(7)(b); (e) paragraph 500S(5)(b); (f) paragraph 552(3)(b); (g) paragraph 578(4)(b); (h) paragraph 614(3B)(b); (i) paragraph 660YCF(6)(b); (j) paragraph 686(4A)(b); (k) paragraph 735(5)(b); (l) subsection 771HI(4); (m) paragraph 787(5)(b); (n) subparagraph 1061PE(4)(e)(viii); (o) paragraph 1064(7)(a); (p) paragraph 1065(6)(a). (2) The following provisions of the Social Security Act 1991 apply on and after the commencement of this item as if a reference to subsection 236(5) of the Military Rehabilitation and Compensation Act 2004 included a reference to subparagraph 234(1)(b)(i) of the Military Rehabilitation and Compensation Act 2004 (as in force before the commencement of this Part): (a) section 573A (table item 4A); (b) section 1067G (table items 4A and 20A in Module L of the Youth Allowance Rate Calculator). 56 Preserving things done before commencement—Veterans' Entitlements Act 1986 (1) The following provisions of the Veterans' Entitlements Act 1986 apply on and after the commencement of this item as if a reference to a lump sum mentioned in subsection 236(5) of the Military Rehabilitation and Compensation Act 2004 included a reference to an old lump sum: (a) subparagraph (b)(ii) of the definition of war widow in subsection 5E(1); (b) subparagraph (b)(ii) of the definition of war widower in subsection 5E(1); (c) paragraph 5H(8)(zu); (d) paragraph (b) of the definition of war widow/war widower—pensioner in subsection 5Q(1); (e) paragraph 45N(1)(d); (f) subparagraph 45R(2)(a)(ii); (g) subparagraph 45TB(3)(a)(iii). (2) If a choice was made before the commencement of this item under section 236 of the Military Rehabilitation and Compensation Act 2004 (the MRCA), then: (a) if the choice was to be paid the weekly amount—paragraph (ca) of the definition of adjusted income in subsection 5H(1) of the Veterans' Entitlements Act 1986 applies, on and after that commencement, as if the person had not made a choice under section 236 of the MRCA (as amended by this Schedule); and (b) if the choice was to be paid the lump sum—paragraph (cb) of that definition is taken to apply, on and after that commencement, as if the choice were a choice under section 236 of the MRCA (as amended by this Schedule). Schedule 4—Weekly compensation for eligible young persons Military Rehabilitation and Compensation Act 2004 1 Section 254 Omit "$66", substitute "$135.34". 2 Section 254 (note) Omit "$66", substitute "$135.34". 3 No indexation of amount for indexation year commencing on 1 July 2013 The dollar amount mentioned in section 254 of the Military Rehabilitation and Compensation Act 2004, as inserted by item 1 of this Schedule, is not to be indexed for the indexation year commencing on 1 July 2013 in accordance with Part 1 of Chapter 11 of that Act. Note: Indexation of that dollar amount will occur for the indexation year commencing on 1 July 2014 and later indexation years. Schedule 5—Compensation for financial advice and legal advice Part 1—Main amendments Military Rehabilitation and Compensation Act 2004 1 Subsection 5(1) Insert: practising lawyer means a person who is admitted to the legal profession by a federal court or a Supreme Court of a State or Territory and who holds a practising certificate (however described) entitling the person to practise that profession. 2 Section 81 (heading) Repeal the heading, substitute: 81 Compensation for cost of financial advice and legal advice Financial advice 3 Section 81 Before "The", insert "(1)". 4 Paragraph 81(c) Repeal the paragraph, substitute: (c) the financial advice was obtained from a suitably qualified financial adviser after the Commission had made the determination; and (ca) the financial advice was obtained in respect of the choice the person may make under subsection 78(1); and 5 At the end of section 81 Add: Legal advice (2) The Commonwealth is liable to pay compensation for the cost of legal advice obtained by a person if: (a) the Commonwealth is liable to pay compensation to the person under section 68, 71 or 75; and (b) the Commission determines that the impairment suffered by the person as a result of one or more service injuries or diseases constitutes at least 50 impairment points; and (c) the legal advice was obtained from a practising lawyer after the Commission had made the determination; and (d) the legal advice was obtained in respect of the choice the person may make under subsection 78(1); and (e) a claim for compensation in respect of the person has been made under section 319. 6 Section 82 (heading) Repeal the heading, substitute: 82 Amount of financial advice and legal advice compensation 7 Before subsection 82(1) Insert: Financial advice 8 Subsection 82(1) Omit "section 81", substitute "subsection 81(1)". 9 Subsection 82(1) Omit "However, the total amount must not exceed $1,200.". 10 Subsection 82(1) (note) Repeal the note. 11 Subsection 82(2) Repeal the subsection, substitute: Legal advice (2) The Commission must determine an amount of compensation under subsection 81(2) for the cost of the legal advice that it considers reasonable. Limit (3) The sum of the total amount of compensation under subsections 81(1) and (2) in respect of the person must not exceed $2,400. Note: The amount of $2,400 is indexed under section 404. (4) The amount of $2,400 applies both to financial advice and legal advice under this Part for the person and financial advice and legal advice under Part 6 (Special Rate Disability Pension) for the person if the date specified in the first notice given to the person under section 76, and the date on which the offer under Part 6 was made, are the same. 12 Subsection 83(1) After "cost of financial advice", insert "or legal advice". 13 Subparagraphs 83(1)(b)(i) and (ii) Omit "financial". 14 Subsection 83(2) Omit "financial" (wherever occurring). 15 Subsection 204(2) After "financial advice", insert ", legal advice". 16 Section 205 (heading) Repeal the heading, substitute: 205 Compensation for cost of financial advice and legal advice Financial advice 17 Section 205 Before "The", insert "(1)". 18 At the end of section 205 Add: Legal advice (2) The Commonwealth is liable to pay compensation for the cost of legal advice obtained by a person if: (a) the legal advice was obtained from a practising lawyer; and (b) the legal advice was obtained in respect of the choice the person may make under this Part; and (c) a claim for compensation in respect of the person has been made under section 319. 19 Section 206 (heading) Repeal the heading, substitute: 206 Amount of financial advice and legal advice compensation 20 Before subsection 206(1) Insert: Financial advice 21 Subsection 206(1) Omit "section 205", substitute "subsection 205(1)". 22 Subsection 206(1) Omit "The total amount must not exceed $1,200.". 23 Subsection 206(1) (note) Repeal the note. 24 Subsection 206(2) Repeal the subsection, substitute: Legal advice (2) The Commission must determine the amount of compensation under subsection 205(2) for the cost of the legal advice that it considers reasonable. Limit (3) The sum of the total amount of compensation under subsections 205(1) and (2) in respect of the person must not exceed $2,400. Note: The amount of $2,400 is indexed under section 404. (4) The amount of $2,400 applies both to financial advice and legal advice under this Part and financial advice and legal advice under Part 2 if the day on which the offer under this Part was made, and the day specified in the first notice given to the person under section 76, are the same. 25 Subsection 207(1) After "cost of financial advice", insert "or legal advice". 26 Subparagraphs 207(1)(b)(i) and (ii) Omit "financial". 27 Subsection 207(2) Omit "financial" (wherever occurring). 28 Section 232 Omit: Division 3 provides compensation for the cost of financial advice obtained for a partner who is entitled to compensation under Division 2. substitute: Division 3 provides compensation for the cost of financial advice and legal advice obtained for a partner who is entitled to compensation under Division 2. 29 Division 3 of Part 2 of Chapter 5 (heading) Repeal the heading, substitute: Division 3—Compensation for cost of financial advice and legal advice for wholly dependent partners 30 Section 239 (heading) Repeal the heading, substitute: 239 Compensation for cost of financial advice and legal advice Financial advice 31 Section 239 Before "The", insert "(1)". 32 After paragraph 239(b) Insert: (ba) the financial advice was obtained in respect of the choice the partner may make under subsection 236(1); and 33 At the end of section 239 Add: Legal advice (2) The Commonwealth is liable to pay compensation for the cost of legal advice obtained by a wholly dependent partner of a deceased member if: (a) the partner is entitled to compensation under section 233; and (b) the legal advice was obtained from a practising lawyer after the member's death; and (c) the legal advice was obtained in respect of the choice the partner may make under subsection 236(1); and (d) a claim for compensation in respect of the partner has been made under section 319. 34 Section 240 (heading) Repeal the heading, substitute: 240 Amount of financial advice and legal advice compensation Financial advice 35 Section 240 Before "The Commission", insert "(1)". 36 Section 240 Omit "section 239", substitute "subsection 239(1)". 37 Section 240 Omit "The total amount (including all previous amounts paid in respect of the partner under this section) must not exceed $1,200.". 38 Section 240 (note) Repeal the note. 39 At the end of section 240 Add: Legal advice (2) The Commission must determine the amount of compensation under subsection 239(2) for the cost of the legal advice that it considers reasonable. Limit (3) The sum of the total amount of compensation under subsections 239(1) and (2) in respect of the partner must not exceed $2,400. Note: The amount of $2,400 is indexed under section 404. 40 Subsection 241(1) After "for the cost of the financial advice", insert "or legal advice". 41 Subparagraphs 241(1)(b)(i) and (ii) Omit "financial". 42 Subsection 241(2) Omit "financial" (wherever occurring). 43 Paragraph 404(1)(c) Repeal the paragraph, substitute: (c) subsection 82(3); 44 Paragraph 404(1)(e) Repeal the paragraph, substitute: (e) subsection 206(3); 45 Paragraph 404(1)(i) Repeal the paragraph, substitute: (i) subsection 240(3); 46 Application provision The amendments made by items 2 to 42 apply in relation to financial advice or legal advice obtained on or after the commencement of those items. 47 No indexation of amounts for indexation year commencing on 1 July 2013 The dollar amounts mentioned in subsections 82(3), 206(3) and 240(3) of the Military Rehabilitation and Compensation Act 2004, as amended by this Schedule, are not to be indexed for the indexation year commencing on 1 July 2013 in accordance with Part 1 of Chapter 11 of that Act. Note: Indexation of those dollar amounts will occur for the indexation year commencing on 1 July 2014 and later indexation years. Part 2—Consequential amendments Income Tax Assessment Act 1997 48 Section 52‑114 (table item 4) After "financial advice", insert "or legal advice". Schedule 6—Special Rate Disability Pension Military Rehabilitation and Compensation Act 2004 1 Paragraph 199(1)(a) Repeal the paragraph, substitute: (a) at least one of the following applies: (i) the person is receiving compensation worked out under Division 2 of Part 4 as a result of one or more service injuries or diseases; (ii) the amount, under section 126, of the person's compensation for a week, as a result of one or more service injuries or diseases, is nil or a negative amount; (iii) the person has been paid a lump sum under section 138 in respect of the person's incapacity for work as a result of one or more service injuries or diseases; 2 Before subsection 204(2) Insert: Permanent impairment compensation 3 Subsection 204(2) Omit "The reduction", substitute "There is a reduction that". 4 Before subsection 204(5) Insert: Commonwealth superannuation 5 Subsection 204(5) Omit "further". 6 At the end of section 204 Add: Relationship with subsection 415(4) (7) This section does not limit the application of subsection 415(4) in relation to a Special Rate Disability Pension. Note: Subsection (7) has the effect that if the maximum weekly amount of a Special Rate Disability Pension is reduced in accordance with this section, that amount may be further reduced in accordance with subsection 415(4). 7 After section 204 Insert: 204A Overpayment if payment of lump sum under section 138 (1) This section applies if the Commission makes a determination under subsection 203(1) in relation to a person where subparagraph 199(1)(a)(iii) applies. (2) An amount, equal to so much of the lump sum under section 138 as is worked out in accordance with a legislative instrument made by the Commission under this subsection, is taken to be an amount of compensation that should not have been paid to the person. Note 1: Section 415 allows the Commission to recover that amount as a debt due to the Commonwealth and allows that amount to be deducted from an amount that is payable under this Act. Note 2: Section 1228 of the Social Security Act 1991 provides that amount is recoverable under that Act by means of deductions from payments under that Act. Note 3: Section 205 of the Veterans' Entitlements Act 1986 provides that amount is recoverable under that Act by means of deductions from payments under that Act. 8 Application provisions (1) Subparagraph 199(1)(a)(ii) of the Military Rehabilitation and Compensation Act 2004, as inserted by this Schedule, applies in relation to a week ending on or after 1 July 2013. (2) Subparagraph 199(1)(a)(iii) of the Military Rehabilitation and Compensation Act 2004, as inserted by this Schedule, applies in relation to lump sums paid before, on or after 1 July 2013. Schedule 7—Superannuation Military Rehabilitation and Compensation Act 2004 1 Subsection 5(1) (before paragraph (a) of the definition of Commonwealth superannuation scheme) Insert: (aa) for the purposes of the following provisions: (i) section 89A; (ii) Division 7 of Part 3 of Chapter 4; (iii) sections 416 to 418 (to the extent to which they relate to compensation under Part 3 of Chapter 4); any superannuation scheme under which or to which, or retirement savings account to which, the Commonwealth or a Commonwealth authority makes contributions on behalf of employees (other than members of the Defence Force) and includes a superannuation scheme established or maintained by the Commonwealth or a Commonwealth authority; or 2 Subsection 5(1) (paragraph (a) of the definition of Commonwealth superannuation scheme) After "which", insert "or to which, or retirement savings account to which,". 3 Subsection 5(1) (paragraph (a) of the definition of Commonwealth superannuation scheme) Omit ", a Commonwealth authority or a licensed corporation (within the meaning of the Safety, Rehabilitation and Compensation Act 1988)", substitute "or a Commonwealth authority". 4 Subsection 5(1) (paragraph (a) of the definition of Commonwealth superannuation scheme) Omit ", a Commonwealth authority or a licensed corporation" (last occurring), substitute "or a Commonwealth authority". 5 Subsection 5(1) Insert: retirement savings account means a retirement savings account within the meaning of the Retirement Savings Accounts Act 1997. 6 Section 84 After: Normal earnings are worked out under Divisions 2 to 6, depending on the member's current status (for example, as a Permanent Forces member or a Reservist) and their status at the time the service injury or disease occurred. insert: Division 7 deals with how to work out the amount of compensation a member receives for a week if the member receives or has received Commonwealth superannuation. 7 At the end of subsection 85(2) Add "or 89A". 8 Subsection 85(2) (note) Omit "worked out under section 89", substitute "of compensation". 9 At the end of subsection 86(2) Add "or 89A". 10 Subsection 86(2) (note) Omit "worked out under section 89", substitute "of compensation". 11 At the end of subsection 87(2) Add "or 89A". 12 Subsection 87(2) (note) Omit "worked out under section 89", substitute "of compensation". 13 At the end of subsection 89(1) Add: Note: See subsection (4) for an exception. 14 At the end of section 89 Add: (4) Subsection (1) does not apply if section 89A applies. 15 At the end of Division 1 of Part 3 of Chapter 4 Add: 89A Amount of compensation for persons receiving Commonwealth superannuation The amount of compensation that the Commonwealth is liable, under section 85, 86 or 87, to pay for a week to a person who receives either or both a pension or lump sum under a Commonwealth superannuation scheme is worked out in accordance with the following sections: (a) if the person is receiving only a pension—section 116B; (b) if the person has received only a lump sum—section 116C; (c) if the person is receiving a pension and has received a lump sum—section 116D. 16 At the end of Part 3 of Chapter 4 Add: Division 7—Amount of compensation where Commonwealth superannuation is received 116A Simplified outline of this Division This Division tells you how to work out the amount of compensation a member receives for a week if the member receives or has received Commonwealth superannuation. The method of working out the amount of compensation depends on whether the member: (a) is receiving only a Commonwealth superannuation pension (see section 116B); or (b) has received only a Commonwealth superannuation lump sum (see section 116C); or (c) has received a lump sum and is receiving a pension (see section 116D). Basically, the amount of compensation paid is the amount worked out under Division 1 reduced by the amount of superannuation received. 116B Amount of compensation for person receiving only Commonwealth superannuation pension (1) If paragraph 89A(a) applies to a person, the amount of compensation that the Commonwealth is liable, under section 85, 86 or 87, to pay to the person for a week is worked out using the following formula: (2) In this Division: Division 1 compensation amount for a person for a week means the amount of compensation the person would have been paid for the week if subsection 89(1) had applied. superannuation pension amount for a person who receives a pension for a week under a Commonwealth superannuation scheme means: (a) if the scheme identifies a part of the pension as attributable to the contributions made under or to the scheme by the Commonwealth or a Commonwealth authority—the amount of that part; or (b) in any other case, either: (i) the amount assessed by the Commission to be the part of the pension that is attributable to the contributions made under or to the scheme by the Commonwealth or a Commonwealth authority; or (ii) if such an assessment cannot be made—the amount of the pension received by the person for the week. 116C Amount of compensation for person who has received only Commonwealth superannuation lump sum (1) If paragraph 89A(b) applies to a person, the amount of