(1)

For section 175 of the Act, this regulation applies to a person:

(a)

who was a declared member; and

(b)

who, for a week referred to in this regulation, was incapacitated for either or both service or work as a result of a service injury or disease; and

(c)

who was a declared member when the service injury was sustained or the service disease was contracted; and

(d)

in respect of whom the Commonwealth is liable to pay compensation under section 118 of the Act; and

(e)

who has not chosen to receive a Special Rate Disability Pension under Part 6 of Chapter 4 of the Act; and

(f)

who had paid civilian work before last ceasing to be a member of the Defence Force.

(2)

The person's normal earnings for a week is the amount worked out by:

(a)

treating the person as if he or she were an incapacitated person mentioned in section 152 of the Act; and

(b)

assuming, for the application of section 153 of the Act, that the person would have an ADF component of nil; and

(c)

working out the amount that would be the person's normal earnings if the person were an incapacitated person; and

(d)

working out the number of hours that would be the person's normal weekly hours if the person were an incapacitated person.

(3) The actual earnings for a week for a member to whom this regulation applies is the amount worked out by treating the member as if he or she were a person mentioned in section 129 of the Act:

(a)

to whom subsection 125 (1) of the Act applies; and

(b)

if, for subsection 130 (1) of the Act, the number of hours worked by the person exceeds the number mentioned in that subsection — to whom section 130 applies; and

(c)

whose actual earnings are worked out in accordance with section 132 of the Act.