Weekly Payments

Part 3 Division 2 of the Workers Compensation Act 1987 (the 1987 Act) sets out the method for calculating weekly compensation payments. All calculations are based on a worker’s pre-injury average weekly earnings (PIAWE).

The entitlement to weekly benefits will depend on whether the injured worker is assessed as having either

no current work capacity (‘total incapacity’) or a current work capacity (‘partial incapacity’).

The appropriate rate for weekly benefits will also vary according to specified entitlement periods (the first of which commences from the first date of incapacity for which weekly compensation is payable).

The table on the right summarises the formulas for calculating weekly payments.

If the relevant calculation of compensation payable to a worker with highest needs (i.e. more than 30% WPI) results in an amount of less than $788.32, the amount payable to the worker will be $788.32: section 32A. That is, a worker with highest needs must receive a minimum compensation payment of $788.32 as adjusted. This amount is indexed twice each year on 1 April and 1 October. As at 1 October 2016 the rate was $796.

The maximum weekly payment is fixed by section 34 and is adjusted twice each year. The maximum as at 1 October 2016 was $2,058.10.

In the first entitlement period (up to week 13)

A worker with no current work capacity is to be paid 95% of PIAWE (minus any deductible).

A worker with current work capacity is also entitled to 95% of PIAWE (minus any deductible and minus the amount the worker is earning or could earn in suitable employment).

In the second entitlement period (week 14 to week 130)

A worker with no current work capacity is to be paid 80% of PIAWE (minus any deductible).

A worker with current work capacity who is not working at least 15 hours per week is also entitled to 80% of PIAWE (minus any deductible and minus the amount the worker is earning or could earn in suitable employment).

A worker with current work capacity who is working at least 15 hours per week is entitled to 95% of PIAWE (minus any deductible and minus the amount the worker is earning or could earn in suitable employment).

After the second entitlement period (more than 130 weeks)

A worker with no current work capacity will continue to be paid 80% of PIAWE (minus any deductible).

A worker (other than a worker with high needs) with current work capacity who is not working at least 15 hours per week is not entitled to any weekly payment.

A worker with current work capacity who is working at least 15 hours per week is entitled to 80% of PIAWE (minus any deductible and minus the amount the worker is earning or could earn in suitable employment) but subject to meeting the other requirements set out in section 38(3) – that is, the worker:

• has applied to the insurer in writing before the end of the second entitlement period for continuation of weekly payments after the second entitlement period, and
• has returned to work for a period of not less than 15 hours per week and earning at least $155 per week (as adjusted each year on 1 July; as at 1 July 2016 the amount was $183) and
• is assessed by the insurer as being, and likely to continue to be, incapable of undertaking further work that would increase the worker’s current weekly earnings.

A worker with high needs (i.e. with 21% WPI or more) must make a written application to the insurer for continuation of weekly compensation after the second entitlement period, but does not have to be working for at least 15 hours per week.

A worker, including a worker with high needs (21% WPI to 30% WPI), may be subject to a work capacity assessment by the insurer.

A worker with highest needs (31% WPI or higher) is not subject to work capacity assessment, unless the worker requests it and the insurer thinks it is appropriate.

Please refer to page # for more information regarding work capacity assessments.

Maximum period for payments

Weekly payments are limited to a maximum of 260 weeks (5 years) except for workers with high needs, i.e. workers who have been assessed with more than 20% WPI.

If the worker first made his or her claim for compensation before 1 October 2012 (an existing claim) weekly compensation payments received by the worker before 1 January 2013 are not counted towards the maximum 260 weeks specified in section 39: Workers Compensation Regulation 2016 Schedule 8 part 1 clause 3.

An entitlement to weekly payments will cease one year after the worker reaches retirement age; or if the injury is sustained after retirement age, for one year from the first occasion of incapacity (if payments have not been discontinued beforehand): section 52 of the 1987 Act.