31.1.1 Overview - the role of NWE

Sections 8 and 9 of the SRCA provide for the calculation of normal weekly earnings (NWE). Essentially, these provisions are a re-enactment of S25 of the Compensation (Commonwealth Government Employees) Act 1971 (the 1971 Act), and allow for the calculation of a weekly amount that is a fair representation of what a client would have earned but for their compensable injury.

See 14.1 and 14.2 for general discussion of content and operation of S8 and S9.

In short, the Normal Weekly Earnings (NWE) represents a deemed value in respect of the client's pre-injury earnings.

NWE is intended to provide a fair representation of what the client could normally have expected to earn at any particular point in time but for the injury, based on the client's actual earning capacity at the time of injury. It is subsequently adjusted for those general (industrial) wage movements current between injury and time of incapacity.

NWE for reservists includes civilian earnings as well as earnings from the Commonwealth (i.e. full-time civilian + part-time reserves employment).

NWE thus provides a reference point for the calculation of the weekly incapacity compensation entitlement for a client under the SRCA. It is incorporated within all incapacity payment calculations other than for some categories of 'Former Employee' (see chapter 13) and also other than for those periods of incapacity which predate the SRCA.