Interim compensation under the Military Rehabilitation and Compensation Act 2004 (MRCA) is designed to provide financial assistance to Australian Defence Force (ADF) members or veterans while the Department of Veterans’ Affairs (DVA) makes a final determination on a permanent impairment (PI) compensation claim. This is often critical, as PI claims can take considerable time to process, and interim compensation can help bridge the financial gap until a decision is reached.
Eligibility for Interim Compensation
A veteran or ADF member may be eligible for interim compensation if:
1. They have suffered an impairment due to a service-related injury or disease.
2. There is sufficient medical evidence to support a level of impairment, though the injury or disease may not yet be stable for a full assessment.
Since interim payments are intended as temporary assistance, the DVA must have enough initial medical evidence to estimate the degree of impairment. Interim compensation is generally awarded only if the impairment is expected to reach a permanent state at a later date or if there is a need for further medical evidence to finalise the PI rating.
Calculation of Interim Compensation
The DVA uses the Guide to the Assessment of Rates of Veterans’ Pensions (GARP M) to assess the degree of impairment. The interim compensation amount is calculated based on the impairment points determined from available medical evidence and adjusted according to lifestyle factors outlined in GARP M. However, since this is an interim rate, it may differ from the final amount once the impairment stabilises and a full assessment can be conducted.
If, for instance, an injury results in an impairment of 10 or more points (the threshold for initial PI compensation), the claimant may receive a portion of what they could ultimately expect if the impairment becomes permanent.
Re-assessment of Interim Compensation
Once the condition stabilises, The DVA reassesses the impairment level to determine if it meets the criteria for a permanent rate of compensation. If the reassessed impairment rating is higher or lower than the initial interim assessment, the compensation amount is adjusted accordingly. If the condition worsens over time, the veteran can apply for a review under Section 71 of the MRCA to increase the compensation level, potentially converting it from interim to permanent status.
Termination of Interim Compensation
Interim compensation generally continues until one of the following occurs:
1. Permanent determination: The DVA assesses the impairment as stable and provides a final, permanent compensation amount.
2. Claim withdrawn: The claimant may withdraw their claim at any point.
3. Further evidence suggests no entitlement: If evidence indicates the injury or impairment is not compensable, payments may cease.
Important Considerations
– Interim payments are not recoverable: If a final PI determination results in a lower rating, the DVA does not recover the difference, ensuring that veterans are not financially disadvantaged by receiving interim compensation.
– Effect on other entitlements: Receiving interim compensation may affect other financial support programs, so veterans should discuss potential impacts with the DVA or a qualified advocate.
– Eligibility changes: Eligibility for a Gold Card, allowing medical treatment for any condition, typically requires a rating of 60 impairment points. Veterans receiving interim compensation must wait until a final PI determination to confirm eligibility for the Gold Card.
For further details, the MRCA Policy Manual and other DVA resources outline guidelines on interim compensation and its application. However, the complexities of the MRCA system and the requirements for interim compensation can make navigating the process challenging. KSC Claims offers specialised assistance helping veterans understand their eligibility, assist with claims, and clarify the specifics of interim compensation. With expertise in the DVA claims process, KSC provides guidance to ensure veterans receive the support they need during and beyond their claim journey.
Image reference: Sydney, Australia – April 25, 2019: Australian Army Officer stands with the Australian Flag during the ANZAC parade. Igor Corovic.
