Considering that the objective of the benefit is to compensate Veterans for the effect of a permanent and severe impairment on loss of employment and career progression opportunities, the Veterans Ombudsman is concerned that the majority of Veterans who are in receipt of the allowance, particularly totally and permanently incapacitated Veterans who likely suffer from the greatest loss of employmen [...] This affects eligibility for the Permanent Impairment Allowance, and potentially the Supplement, because the adjudication of an application is weighed towards the degree of functional, physical and mental impairment rather than the stated objective of the allowance – the effect of a permanent and severe impairment on loss of employment and career progression opportunities. [...] Recommendation 2: That the Minister and the Department of Veterans Affairs amend the relevant Permanent Impairment Allowance policy and regulations to include specific loss of earning capacity criteria to ensure alignment between the determination of the extent of impairment and the objective of the allowance. [...] In Australia, when a Veteran selects permanent impairment compensation as a lump sum instead of a periodic payment, the amount of the lump sum is adjusted based on the age of the Veteran.59 Recommendation 3: That the Minister and the Department of Veterans Affairs amend the Permanent Impairment Allowance policy and the relevant regulations so that the assignment of grade levels is based on specifi [...] Payment of Permanent Impairment Allowance and Supplement to the Survivor60 The Permanent Impairment Allowance and the Supplement should be provided to the survivor at the full rate for a period of one year following the death of the Veteran, if the Veteran was in receipt of the benefits at the time of death.