2000/12

SAFETY, REHABILITATION AND COMPENSATION ACT 1988

REVIEW OF KILOMETRE RATE UNDER SUB-SECTION 16(6)

Background

1.Sub-section 16(6) of the Safety, Rehabilitation and Compensation Act 1988 provides that Comcare is liable to pay compensation where an employee reasonably incurs expenditure travelling to obtain medical treatment.  This only applies where the length of travel (including return travel) exceeds 50 kilometres.

2. The rate payable per kilometre is an amount specified by the Minister for Employment, Workplace Relations and Small Business.

3.The rate had been set at 30 cents per kilometre since 1995.  Following representations from a number of employees regarding the adequacy of this rate, Comcare undertook a review of the rate.

Policy Advice

4. The Consumer Price Index includes components under the category 'Transportation – Private Motoring', 'automotive fuel'; 'motor vehicle repair and servicing'; and 'motor vehicle parts and accessories', based on a weighted average of eight capital cities.  These components correspond to the expenses that employees incur in using a motor vehicle to travel to medical treatment.  If the net indexation variations in these components for the December Quarters since 1995 had been applied to the rate of 30 cents annually since 1995, the rate would now be 34 cents.

5. Based on this, Comcare recommended to the Minister for Employment, Workplace Relations and Small Business that the rate be increased.  On 25 October 2000 the Minister approved an increase in the rate to 34 cents per kilometre, effective on and from the date of publication in the Commonwealth of Australia Gazette.  A Notice of Declaration to this effect was published in the Commonwealth of Australia Gazette Government Notices No. 44, dated 8 November 2000.  A copy of the Notice is attached.

6. The rate per kilometre payable under sub-section 16(6) of the Act is, therefore, 34 cents with effect on and from 8 November 2000.

7. Any issues relevant to this policy advice may be discussed with the Policy & Co-ordination Group on 1300 366 979.

Regulatory Services Division

Comcare

16  November 2000