Section 8(9B) of the SRCA authorises determining authorities to increase normal weekly earnings (NWE) for ex-employees by reference to a prescribed index – the Wage Price Index (WPI).
Regulation 5 of the Safety, Rehabilitation and Compensation Regulations 2002 prescribes the 'Wage Price Index, Australia (Total hourly rates of pay – excluding bonuses/all Australia/all industries/all occupations) published by the Australian Bureau of Statistics' for this purpose. Regulation 6 prescribes the manner in which an increase in NWE is calculated using the WPI.
On 1 July each year, determining authorities will increase NWE for ex-employees based on any increase in the WPI for the year ending with the previous December quarter.
WPI – Historical Rates
Historical rates for WPI are set out in the following Table:
|
Date |
WPI Increase |
|
1 July 2002 |
3.4% |
|
1 July 2003 |
3.4% |
|
1 July 2004 |
3.7% |
|
1 July 2005 |
3.5% |
|
1 July 2006 |
4.2% |
|
1 July 2007 |
4.0% |
|
1 July 2008 |
4.2% |
|
1 July 2009 |
4.2% |
|
1 July 2010 |
2.9% |
The WPI indexation amount is paid in full on each payment date, i.e. it is NOT paid on a pro-rata basis where the member has been discharged for less than a full year.
This means that wage increases after 1 October 2001 (other than WPI) cannot be passed on to discharged full or part-time members of the ADF:
- Wage increases should continue to be applied in the normal manner for those clients who are still employed by the in the ADF.
- If compensation is being paid retrospectively, military wage increases up to and beyond 1 October 2001 can be passed on up until the date of the member's discharge. Increases thereafter can only be via the WPI.
- For members of the Reserve, once the member has discharged from the ADF the civilian component of NWE as well as the Reserve component can only be increased by the WPI, even where the client continues in civilian employment.