MCRI No. 26

Military Compensation Scheme

Safety Rehabilitation and Compensation Act 1988

Indexation of NWE - Update under ss8(9B) effective 1 July 2002

Background

1. Subsection 8(9B) of the Safety, Rehabilitation and Compensation Act 1988 authorises determining authorities to increase normal weekly earnings (NWE) for ex-employees by reference to a prescribed index.  Regulation 5 of the Safety, Rehabilitation and Compensation Regulations 2002 prescribes the Australian Bureau of Statistics (ABS) Wage Cost Index (total hourly rates of pay – excluding bonuses/Australia/all industries/all occupations) (WCI) for this purpose.

2. On 1 July each year determining authorities will increase NWE for ex-employees based on any increase in the index for the year ending with the previous December quarter. MCRI20 Amdt 1 refers.

Policy Advice

3. The ABS issued the WCI for the year ending 31 December 2001 on 20 February 2002.  The percentage increase in the index for the period was 3.4%.  Determining authorities should increase NWE for employees affected by this provision by this percentage with effect from 1 July 2002.

4. Any inquiries concerning the information contained in this MCRI should be directed to Craig Boyd on (08) 9366 8571.

(signed)

Mark Travers

Director

Policy and Procedures

22 May 2002