30.4.14 The 1930 Act - provisions re: the amount of weekly compensation

The amount of the weekly payment made under the 1930 Act is determined by the 'The First Schedule' to that Act, which says:

1The amount of compensation shall be:

a)..............

b)..............

c)where the employee is totally incapacitated for work by the injury – a weekly payment during his incapacity of the sum of $31.80 and in addition, the sum of:

(i)$7.70 in respect of –

1.the wife of the employee, if she was married to the employee at the date of the injury and is wholly or mainly dependent upon his earnings, or

2.if he has no wife, or if compensation is not payable in respect of his wife – one female, over the age of sixteen years, who is wholly or mainly dependent upon the earnings of the employee and was, at the date of the injury, a member of the employee's family or caring for a child who was at that date, and is, under the age of sixteen years and wholly or mainly dependent upon the earnings of the employee, and

(ii)$2.80 in respect of each child, born before or after the date of the injury, who, not being a child of the marriage contracted, or an ex-nuptial relationship formed, after the date of the injury, is under the age of sixteen years and is wholly or mainly dependent upon the earnings of the employee, and

d)where the employee is partially incapacitated for work by the injury, a weekly payment during his incapacity –

(i)of the amount (if any) by which the weekly amount that he is earning or is able to earn in some suitable employment or business, after the injury is less than his weekly pay at the date of injury, or of the amount of Thirty-one dollars eighty cents, whichever is the less, or

(ii)of the amount (if any) by which the weekly amount that he is earning or is able to earn in some suitable employment or business, after the injury is less than the weekly amount that would have been payable to him under sub-paragraph (b) of this paragraph, if he had been totally incapacitated, whichever is greater.

Indexation of values

Naturally the statutory rates contained in the above quotation from the Act were indexed and updated in line with contemporary cost price and salary movements, and the table of historical values is reproduced at 30.4.15 on the next page.

Interpretation of Schedule 1 provisions – total incapacity

For clients who were 'totally incapacitated' (i.e. worked 0 hrs in that week) for a period under the 1930 Act, the amount payable is:

• the scheduled amount for a client for that period (see table at 30.4.15), plus
• the scheduled amount in respect of client's spouse for that period (see 30.4.15), plus
• the scheduled amount in respect of each child of the client (see 30.4.15).

Interpretation of Schedule 1 provisions – partial incapacity

For clients who were able to work at least part of the week in question (under the 1930 Act), the amount payable is the greater of the following (1) and (2):

1.the lesser of (pre injury 'pay' – able to earn), or
(weekly statutory amount for the client only) excluding spouse and child amounts

2.the (weekly statutory amount if totally incapacitated – able to earn)
It is to be expected that option (2) will be the amount payable in most cases.

Pre injury 'Pay' and 'able to earn in some suitable employment or business'

While the 1930 Act uses terminology which varies from that used by the 1971 Act and the SRCA. However the identity of the amounts referred to is essentially the same i.e.:

• 'Pay' means 'NWE' under the SRCA for all practical purposes.
• 'Able to earn in suitable employment etc.' means 'AE' under the SRCA for practical purposes.

Delegates should therefore adopt the principles outlined at chapter 31 (re: NWE) and chapter 32 (re: AE) when determining the 1930 Act counterparts of these quantities.