44.2.1 NWE at 1/12/88

The client's normal weekly earnings (NWE) as at 1/12/1988 (the commencing day of the SRC Act) is relevant to calculation of the amount of weekly incapacity compensation paid to former employees under the transitional provisions in Division 3, Part X of the Act.

NWE at 1/12/1988 is applied in two sections in Part X:

• s 131: compensation for former employees under 65 who were in receipt of superannuation benefits and were unable to engage in suitable employment on 1/12/1988;
• s 132: compensation for former employees under 65 who were not in receipt of superannuation benefits and were unable to engage in suitable employment on 1/12/1988.

Under the 1971 Act, Average Weekly Earnings (AWE) were a ceiling for incapacity benefits. As such, they were not required to be calculated in every case where a client was incapacitated, and the procedures for calculation were complex and time consuming.

The following policy has been adopted for establishing NWE on 1 December 1988, the commencing day of the SRC Act.

Where AWE was calculated

Where an Average Weekly Earnings figure (AWE) had been calculated under the 1971 Act, this amount is deemed to be the NWE under the SRC Act from 1 December 1988.

Where AWE was not calculated

Where the client was no longer employed by the ADF on 1 December 1988, the NWE figure is the salary according to the military pay scales (at 1/12/1988) for the rank of the client at discharge.

Note: This policy must be applied using common sense. Where it is known, or it can be established by evidence, that the client received additional special allowances or regular overtime payments, these should be taken into account in the usual manner for calculating NWE under the 1988 Act.

References

• Comcare Operations Manual vol 14, pt 2 : Establishing NWE in transitional cases