Document ID: chunk:federal_register_of_legislation:F2025L00271:schedule:1:p5
Version: federal_register_of_legislation:F2025L00271
Segment Type: schedule
Provision Reference: sch 1 (pt 5/5)
Character Range: 12219–13959

MRCA PI Max), go to Step (7).

              Step (7) If the amount worked out in Step (6) exceeds the MRCA PI Max, the MRCA compensation payment is worked out as follows:

(a)  [excess MRCA PI]

     equals                              [amount worked out in Step 6(b)]

     plus                                [DRCA section 24, 25 and 27 lump sums converted to periodic payments]

     plus                                [Step (4) amount]

     minus                               [MRCA PI Max]

(b)  [amount of weekly MRCA PI payable]

     equals                              [Step (4) amount]

     minus                               [excess MRCA PI worked out in Step (7)(a)]

       Conversion of DRCA lump sums

       To work out the net MRCA periodic payment for Step (7), convert the lump sums paid to the person under DRCA sections 24, 25 and 27 to a periodic payment using the formula set out in section 6 of the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Regulations 2020.

       For information only, below is a broad outline of the way that formula applies.

Step (1)  Convert the DRCA amounts to a current lump sum value by multiplying the ratio of the current value for maximum DRCA section 24 payment by the value when the lump sum payment was made.

Step (2)  Convert each lump sum to a periodic payment by dividing by an age-based number provided by the Australian Government Actuary for this purpose.

          Use the age-based number for the age the person would have been on their next birthday when the DRCA lump sum was paid.

       The periodic payment amount is indexed annually on 1 July by the indexation factor calculated under section 404 of the MRCA.