Veterans who reach the Permanent Impairment (PI) Rating Threshold of 80 Impairment Points under the Military Rehabilitation and Compensation Act (MRCA) are entitled to significant compensation. Here’s a detailed breakdown of the current entitlements:
- $580,834.95 Lump Sum*
- $108,567.57 Per Eligible Dependant*
- Up to $3,202.28 for Financial Advice*
*All amounts are current as of this writing and are periodically adjusted in line with the Consumer Price Index (CPI).
Lump-Sum Permanent Impairment Compensation Payment
Veterans who achieve a combined permanent impairment rating of 80 points are eligible for a significant lump-sum payment. While a veteran’s combined rating may exceed 80 points, payments do not increase beyond this threshold. The calculation of the lump sum considers the awarded points, lifestyle rating, and the veteran’s age, as detailed in the Actuary Tables.
Upon determination from the Department of Veterans’ Affairs (DVA), veterans can choose between a lump sum, weekly payments, or a combination of both. Importantly, these payments are tax-free. However, veterans are advised to consult with a financial adviser to understand the potential impacts on other benefits received from Services Australia.
Compensation for Eligible Dependants
Veterans reaching the 80-point Permanent Impairment threshold are also entitled to additional compensation for each eligible dependant. As of now, the entitlement per dependant is approximately $108,567.57. For instance, a veteran with three eligible dependants would receive an additional $325,702.71.
Financial Advice for Qualified Veterans
Veterans can seek reimbursement for financial advice up to $3,202.28 from a qualified financial adviser. This provision aims to assist veterans in determining the most suitable compensation option for their needs.
For veterans and their dependants, understanding and navigating MRCA entitlements can be complex. Professional veteran advocacy services can help guide you through the entire process, from understanding the requirements to gathering necessary information and submitting your claim.
Contact KSC today to discuss your DVA claims process.
