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MILITARY REHABILITATION AND COMPENSATION ACT 2004 - SECT 138

Converting small amounts of weekly compensation into lump sum compensation

  (1)   This section applies if:

  (a)   apart from this section, the Commonwealth would be liable to pay an amount of compensation, worked out in accordance with subsection   125(1) or section   126, of $150 or less for a person's incapacity for work for a week; and

  (b)   the person:

  (i)   is engaged in work; or

  (ii)   is receiving a pension under a Commonwealth superannuation scheme; or

  (iii)   has received a lump sum under a Commonwealth superannuation scheme; and

  (c)   the Commission is satisfied that the degree of the person's incapacity is unlikely to change; and

  (d)   the person advises the Commission in writing that he or she chooses to receive a lump sum under this Division rather than weekly payments.

Note 1:   The Commonwealth might later be liable for weekly compensation if the person becomes unable to engage in work or stops receiving superannuation (see section   139).

Note 2:   The amount of $150 is indexed under section   404.

  (2)   Instead of being liable to pay compensation for that week and future weeks, the amount of compensation that the Commonwealth is liable to pay is the amount of the lump sum worked out using the following formula:

Start formula start fraction 52 times Weekly amount times open square bracket open round bracket Specified number plus 1 close round bracket start superscript n end superscript minus 1 close square bracket over Specified number times open square bracket open round bracket Specified number plus 1 close round bracket start superscript n end superscript close square bracket end fraction end formula

Note:   This section might be affected by the following provisions:

(a)   sections   50, 52 and 329 (failure to undergo examination or rehabilitation program);

(b)   section   122 (persons who are imprisoned);

(c)   subsection   125(3) (nil and negative amounts).

  (3)   In this section:

"n" means the number worked out using the formula:

Start formula start fraction Number of days over 365 end fraction end formula

where:

"number of days" means the number of days in the period beginning on the day after the day on which the person advises the Commission of his or her choice under paragraph   (1)(d) and ending:

  (a)   if the person's service injury is sustained, or service disease is contracted, before the person turns the age that is 2 years before pension age--on the day before the person turns pension age; and

  (b)   if the person's service injury is sustained, or service disease is contracted, on or after the day on which the person turns the age that is 2 years before pension age--on the day before the person is no longer entitled to compensation under this Part.

"specified number" means the number specified in writing (in decimal notation) by the Commission for the purposes of this definition.

"weekly amount" means the amount payable to the person under section   118 for the week in which the person advises the Commission of his or her choice under paragraph   (1)(d).


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