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31.3.2 Adjustments to NWE for Award and National Wage increases

Document
Pre-October 2001

Before 1 October 2001, NWE was adjusted to take into account increases in salary or allowances resulting from award or National Wage increases for all ex and current full-time members, and Reservists (ADF and civilian employment).

Thus, delegates preparing back-payments to discharged members in respect of a periods of incapacity prior to October 2001, should establish the NWE as the client's rank and pay level current at that time (if still serving during that period of incapacity), or that rank and pay level current at the date of discharge (if discharged before the period of incapacity in question).

Post-October 2001

Amendments to the SRCA commencing on 1 October 2001 provide that the NWE of discharged members only (including 'Former Employees' per S123) is increased annually on 1 July by reference to a statutory indexation rate (the Wage Price Index) under S8(9B). Reference is no longer made to comparable wage movements for serving members. This exception is established by S8(9) and (9A).

This amendment to the method adjusting NWE does not affect serving members, who continue to receive award and National Wage increases to their NWE.

However this amendment means that where the injury was prior to 1 October 2001 but the delegate is calculating the NWE in relation to a period of incapacity following 1 October 2001:

  • If discharged prior to 1 October 2001:
  • the NWE is advanced to those pay rates current at 1 March 2001, and
  • rates of allowance also be updated to the same date (see 31.3.3), and
  • every subsequent annual indexation % is applied in turn from the NWE current at 1 July 2002.
  • If discharged after 1 November 2001:
  • the NWE is advanced to those pay rates current at the date of discharge, and
  • rates of allowance also be updated to the same date (see 31.3.3), and
  • every subsequent annual indexation % is applied in turn from the NWE current at 1 July 2002.