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Workers' Compensation - Benefits
 
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Weekly income replacement payments
Re-crediting sick leave and annual recreation leave
Other benefits
Settlement of a claim
Lump sum payments
Payments to dependants
Common law damages


The information provided below is a condensed version of the workers' compensation benefits provided under the Workers Rehabilitation and Compensation Act 1988. Please refer to the Act for a comprehensive schedule of benefits.

Weekly income replacement payments    

Weekly income replacement payments are payable:
  • on the next normal payday; or
  • no later than 14 days after,

receipt of a claim (together with a Workers Compensation Medical Certificate) by the employer.

Weekly payments are payable from the date of incapacity or 14 days before the claim was provided to the employer, whichever is later.

The amount payable is the greater of:
  • the “ordinary time rate of pay” which the worker was earning immediately prior to the injury; or
  • the average of the worker’s normal weekly earnings over the previous year. This includes any regular allowances except for travel or accommodation allowances. Overtime is excluded unless it is a part of the regular pattern of employment.

It is advisable for agencies to check with the Fund Administration Agent, Marsh Pty Ltd, regarding the calculation of weekly income replacement payments. The Workers Rehabilitation and Compensation Act 1988 requirements regarding paid holidays etc, are quite complex.

Unless the Workers Rehabilitation and Compensation Tribunal finds otherwise, weekly payments continue, provided that the worker continues to produce a Workers Compensation Medical Certificate, for up to 9 years or until the worker reaches 65 years old (unless the worker is 64 or older when injured, in which case payments continue for one year from the date of injury), but reduce over time in accordance with the following “step down” provisions:
  • 100% of the normal weekly payment for 13 weeks;
  • 85% of the normal weekly payment for weeks 14 to 78, inclusive; and
  • 80% of the normal weekly payment thereafter.

Note, however, that injuries incurred prior to 1 July 2001 are subject to different rates.

The Workers Rehabilitation and Compensation Act 1988 includes a ‘safety net’ provision which ensures that, in most instances, an injured worker will not receive less than 70% of the ‘basic salary’. As at 1 January 2009, this equated to $424.60 (70% of $606.57).

Where a worker is able to undertake some form of employment (either part-time or in a less well-paid position), they may be entitled to have their weekly payments increased up to their pre-injury earnings. The Fund will only reimburse agencies for payments to which workers are entitled under the Workers Rehabilitation and Compensation Act 1988.

Recovery of weekly income replacement payments
Weekly income replacement payments are made by the employer on a ‘without prejudice’ basis, ie they are not an admission of liability. However, even if a claim is later successfully disputed by the employer, these payments are not recoverable from the worker unless:
  • the claim is fraudulent;
  • the worker obstructs or delays determination of the claim, and the Workers Rehabilitation and Compensation Tribunal later finds that there is no liability to pay the claim; or
  • the injury results from serious or wilful misconduct by the worker, or is intentionally self-inflicted.

The employer may, however, deduct these payments from the worker’s sick leave entitlements.

Re-crediting sick leave, annual recreation leave and long service leave    


If a worker takes sick leave, annual recreation leave or long service leave and the agency is subsequently found to be liable to pay weekly income replacement payments for that period:
  • the period is taken to a be a period during which the worker was receiving weekly income replacement payments; and
  • the worker’s sick, annual or long service leave entitlements are to be re-credited.

Other benefits    

The employer is liable for all reasonable expenses necessarily incurred by a worker as the result of an injury, including:
  • travel to and from these services.

All claims must either be paid, or disputed, within 28 days. To dispute a claim both the worker and the service provider must be served with a written notice stating that the employer disputes liability. The written notice to the worker must:
  • give the reasons why the employer disputes liability;
  • identify or attach any medical or other evidence the employer is relying upon to dispute liability;
  • inform the worker of his or her right to refer the matter to the Workers Rehabilitation and Compensation Tribunal (provided this is done within 60 days from the date the notice was served); and
  • state whether the employer disputes:
    • just this expense; or
    • all expenses of a specific kind, or incurred with a specific provider; or
    • all expenses.
The written notice to the service provider must outline the reasons why the employer disputes liability to pay the expense.

Settlement of a claim    

Claims may be settled by agreement between the parties after 12 months if the injury is stable. See finalising a claim for information on settlement processes and requirements.

Lump sum payments    

A worker suffering a permanent impairment may be entitled to receive a lump sum payment in addition to their normal weekly payments. The amount paid is based on an assessment of the level of impairment.

Payments to dependants    

If a worker dies as a result of a work-related injury or disease, and a claim is received and liability accepted, the worker’s dependants are entitled to:
  • a lump sum payment; and
  • weekly payments. The amount and length of time paid depend on the relationship of the dependant(s).

If liability is disputed, the employer must notify the dependant(s), in writing, and refer the matter to the Tribunal, within 28 days of receiving the claim for compensation. The notification to the dependant(s) must include information on the matters disputed and the reasons for disputing liability. These are the only matters that will be considered by the Workers Rehabilitation and Compensation Tribunal.

Common law damages    

A worker may only sue an employer for damages under common law when the injury or disease results in a 30% or greater whole-person impairment. Injured workers wishing to pursue a common law action must notify the Workers Rehabilitation and Compensation Tribunal (on a form available from the Tribunal) within two years of the date of the injury and a claim must be lodged with the Supreme Court of Tasmania within three years (under special circumstances this may be extended to six years).

Statutory benefits will continue to be paid until the common law claim has been resolved. If the action is successful, the amount of damages awarded will be reduced by the amount of workers’ compensation already paid. If an action is not successful, workers’ compensation payments will continue as prescribed in legislation.

See the Workers Rehabilitation and Compensation Act 1988 or the Workplace Safe publication A Guide to Workers Compensation in Tasmania for detailed information on benefits.

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