Motor Accident Injuries Act 2019

In this division:

AWE adjusted, for an injured person’s pre-injury income, means the person’s income as adjusted in line with any adjustment in the AWE—

after the date of the motor accident in which the person sustained the personal injury; and

on a day (an adjustment day) prescribed by regulation for the pre-injury income; and

rounded up to the nearest dollar.

However, if an amount to be AWE adjusted would, if adjusted in line with the adjustment (the negative adjustment) to the AWE, become smaller, the amount is not reduced in line with the negative adjustment.

An amount that, in accordance with subsection (2), is not reduced may be increased in line with an adjustment in the AWE that would increase the amount only to the extent that the increase, or part of the increase, is not one that would cancel out the effect of the negative adjustment.

Subsection (3) does not apply to a negative adjustment once the effect of the negative adjustment has been offset against an increase in line with an adjustment in the AWE.

Example—adjustments

On 30 September 2020, Penny has pre-injury income of $1 500 per week. Penny’s entitlement to income replacement benefits started on 15 June 2020.

The adjustment days prescribed for pre-injury income are 1 April and 1 October.

The AWE last published before 1 October 2020 (for May 2020) is $1 884.30. The AWE published for November 2019 (being 6 months before May 2020) is $1 856.80.

The AWE adjustment factor for Penny’s pre-injury income is calculated as follows:

$1 884.30 $1 856.0 = 1.015 (rounded to 3 decimal places).

The amount of Penny’s pre-injury income on the 1 October 2020 adjustment date is calculated as follows:

$1 500 1.015 = $1 522.50.

Penny’s benefit from the adjustment date of 1 October 2020 is $1 522.50, rounded to $1 523.