Compensation payments for serving and former members of the Australian Defence Force (ADF) will increase from 1 July 2007, following the latest round of indexation adjustments, the Minister for Veterans' Affairs, Bruce Billson, said today. "The increases will apply to benefits paid under the Military Rehabilitation and Compensation Act 2004 (MRCA) and the Safety Rehabilitation and Compensation Act 1988 (SRCA)," Mr Billson said. MRCA covers ADF members or former members injured or killed as a result of service rendered on or after 1 July 2004. SRCA covers ADF members or former members injured or killed as a result of service rendered up to and including 30 June 2004.

Mr Billson said that under MRCA the maximum permanent impairment payment would increase from $259.27 to $267.83 per week. "These payments can be provided either as a tax-free periodic payment, a tax-free age-based lump sum or a combination of both," he said. "The maximum amount payable as a lump sum will increase from $339,747.41 to $350,964.43 "Compensation for eligible widowed partners under MRCA includes the war widow's pension for life or an age-based lump sum equivalent, plus an additional age-based lump sum if the death is related to service. The additional age-based lump sum payment will increase from $111,244.27 to $114,915.33."

Mr Billson said the war widow's pension was increased twice yearly, in March and September. "The lump sum payable to a dependant of a seriously injured member will rise from $66,746.56 to $68,949.20. Benefits for dependants under the age of 16, or under 25 and studying full-time, will increase from $73.42 to $75.84 per week." Mr Billson said that under SRCA, the maximum payment for permanent impairment would rise from $194,357.87 to $200,771.68. "For those members or former members severely impaired, an additional payment up to $62,412.52 (up from $60,418.70) may be payable under the Defence Act 1903, he said.

"The lump sum payable to each eligible dependant child of a severely impaired member will rise to $65,796.06 from $63,694.15. "Under the Defence Act, the lump sum death benefit will increase from $254,776.57 to $263,184.20. This amount is then reduced by any lump sum compensation for a member's death under the SRCA (which has increased from $212,026.74 to $219,023.62). A further lump sum of $65,796.06, up from $63,694.15, will also be payable under the Defence Act for each dependant child of a deceased member." Mr Billson said eligible children may also be entitled to receive a weekly payment of $72.98, up from $70.65.