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s 96

Amount of income replacement benefits—first payment period

In force
Chapter 2Motor accident injuries—defined benefits
Part 2.4Defined benefits—income replacement benefits
Division 2.4.3Income replacement benefits—payments

96 Amount of income replacement benefits—first payment period

(1)

An injured person entitled to income replacement benefits is entitled to the amount each week worked out as follows for the first payment period:

A means the amount of the injured person’s post-injury earning capacity.

N means—

(a)

if P is $100 AWE indexed or less—1.0; or

(b)

if P is more than $100 AWE indexed but less than $800 AWE indexed—1.0 + SG/100 ; or

(c)

if P is $800 AWE indexed or more—0.95.

Note AWE indexed, for an amount—see s 18.

Example—working out N, par (b)

Kristin is injured in a motor accident on 1 March 2021. Because of her injuries, Kristin is unable to return to her part-time job as a teacher’s assistant at Lyneham Primary School for 8 weeks following the accident. Kristin does not perform any other paid work during the 8 weeks.

Kristin gives the relevant insurer for the motor accident a letter from her employer stating that Kristin’s annual salary at the time of the motor accident was $36 500 and that Kristin had been a part-time employee at Lyneham Primary School for 18 months before the accident.

The relevant insurer for the motor accident calculates Kristin’s gross income for the 52 weeks before the accident as follows:

Kristin’s gross income for the 52 weeks before the motor accident is $36 400 and her pre-injury income is $700.

Kristin also gives the relevant insurer a copy of the last payslip she received from her employer before the motor accident, which shows that employer contributions were payable to her chosen superannuation fund for the 52 weeks before the motor accident. The superannuation charge number for the 2020-21 year is 9.5%.

In working out the amount of income replacement benefits Kristin is entitled to each week, N is calculated as follows:

N is therefore 1.095. Using the formula set out in subsection (1), the amount of income replacement benefits payable to Kristen for each week during the first payment period after the motor accident that Kristin is entitled to income replacement benefits is calculated as follows:

P means—

(a)

if the injured person’s pre-injury income AWE adjusted is $2 250 AWE indexed or less—the amount of the injured person’s pre-injury income AWE adjusted; or

(b)

if the injured person’s pre-injury income AWE adjusted is more than $2 250 AWE indexed—$2 250 AWE indexed.

(2)

In this section:

SG, for the factor N, paragraph (b), means—

(a)

if superannuation contributions were paid or payable to a superannuation scheme on behalf of the injured person by an employer of the injured person during the 52 weeks before the motor accident—the superannuation guarantee charge number set out in the Superannuation Guarantee (Administration) Act 1992 (Cwlth), section 19 (2) for the year in which the contributions were paid or payable; or

(b)

if no superannuation contributions were paid or payable to a superannuation scheme on behalf of the injured person by an employer of the injured person during the 52 weeks before the motor accident—0.

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