Monday 7 November 2011

Changes to entitlements

Changes to the Accident Compensation Act 1985 have resulted in an increase in a number of entitlements, which workers and family members may be eligible to receive as a result of a work-related injury, illness or death.

Weekly payments, Previous legislation, New legislation

Weekly payment rate after a worker has received weekly payments for longer than 13 weeks 75% of pre-injury income / 80% of pre-injury income

Statutory maximum for weekly payments $1,300 / Twice Victoria’s average weekly earnings, currently $1760

Period for which overtime and shift allowances are taken into account in the calculation of weekly payments for workers entitled to these allowances 26 weeks / 52 weeks

Payments for family members following work-related deaths: Previous legislation & New legislation

Maximum lump sum entitlement for dependants following a work-related death $273,970 / $503,000

Impairment Benefits Previous legislation & New legislation

Maximum no-fault lump sum impairment benefit for a permanent injury $409,200 / $503,000

No-fault lump sum impairment benefit for a worker who has a permanent psychiatric impairment and satisfies the existing 30% ‘whole person impairment’ threshold $13,650 / $68,240

Weekly Payments

Superannuation contributions have been introduced at the superannuation guarantee rate (currently 9%) for injured workers still receiving weekly payments after 52 weeks. This is calculated as a percentage of the worker’s weekly payments.

Injured workers who receive weekly payments for 130 weeks and have since returned to work, but who require surgery for their work-related injury, may be entitled to weekly payments for up to 13 weeks.

Payments for family members following work-related deaths

In certain circumstances provisional payments may be made to the dependants of a deceased worker before an Agent has formally accepted a claim. These payments can be made for:

Reasonable costs of burial or cremation, up to a capped amount (currently $9,300)

Medical and like costs, related to the worker’s injury up to $7,500

Family counselling, up to $5,320

A weekly pension for a partner, up to 12 weeks

Where it is appropriate that WorkSafe exercise its discretion, this will ensure families can receive some payments and do not have to wait for a claim to be processed.

The changes also extend eligibility to pensions and lump sums for dependent children of deceased workers up to the age of 25 who are studying full-time or undertaking a full-time apprenticeship. Children of a deceased worker who are born after the worker’s death will now be treated as a dependant of the deceased worker.

The surviving partner who was living with a worker at the time of death will be deemed to be dependent on the earnings of the deceased worker.

Where a deceased worker has no dependants, non-dependant family members may be eligible, in certain circumstances, to be reimbursed for expenses that they reasonably incurred as a result of the worker’s death, if these expenses caused them financial hardship. The maximum amount which can be reimbursed will be $30,000 per family.

Lump sum entitlements will also be able to be determined without the need to go to Court, where the dependant is legally represented, is not a minor and is not under a disability.

Lump sum impairment benefits

Lump sum impairment benefits for some injured workers who are compensated for permanent spinal impairments only have increased by 10%.

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