Compensation Payments under Section 134

11.This amendment confirms Comcare's current policy approach, and removes any doubt which may have resulted from the decision of the Administrative Appeals Tribunal (AAT) in Re Brede and Department of Defence (1994).

12.The existing sections 131, 132 and 132A of the SRC Act specify the level of compensation payable to those former employees who were injured prior to the commencement of the SRC Act (1 December 1988), who were not aged 65 at that date and who were in receipt of superannuation and/or compensation under the Compensation (Commonwealth Government Employees) Act 1971.

13.The existing section 134 reduces the amount of compensation payable under the SRC Act under sections 131, 132 and 132A when the former employee turns 65 by 5 per cent for each year since the commencement of the Act.  This formula ensures that after 2008, former employees will not receive compensation after they turn 65, and will be in the same position as those who were injured after

1 December 1988.

14.The new subsection 134(2) makes it clear that neither section 8 nor section 13 apply to the reduced amount of compensation calculated in accordance with section 134.  This will “freeze” the compensation payments at the reduced rate. (Section 8 provides for calculation and indexation of Normal Weekly Earnings, while section 13 provides for calculation and indexation of certain compensation benefits in accordance with the consumer price index).  This applies from the date of commencement of the SRC Act (1 December 1988).