(1) The normal earnings for a week for a person who was a Permanent Forces member immediately before last ceasing to be a member of the Defence Force means the amount worked out using the following formula:
Note: The amount of $100 is indexed under section 183.
(2) The person's ADF pay for a week means the amount of pay that the person would have earned for the week as a Permanent Forces member if:
(a) the person were still a Permanent Forces member; and
(b) the person were not incapacitated for service.
Note: The person's ADF pay for a week might be adjusted under Part 5.
(3) The person's allowance component for a week means the total amount of compensable pay - related allowances that would have been paid to the person for the week if:
(a) the person were still a Permanent Forces member; and
(b) the person were not incapacitated for service.
Note: The person's allowance component for a week might be adjusted under Part 5.
(4) The Chief of the Defence Force must advise the Commission in writing of the date on which each compensable pay - related allowance would normally have ceased to be paid to the person if:
(a) the person were still a Permanent Forces member; and
(b) the person were not incapacitated for service.
(5) In this section:
"compensable pay-related allowance" for a person means a pay - related allowance:
(a) that was being paid to the person immediately before the person last ceased to be a member of the Defence Force; or
(b) that the person would have been paid after completing his or her initial training, as mentioned in section 189.