Legislation In Brief

There are a number of sections of the Act dealing with incapacity payments.

Payments in this area can be complex and will involve some calculation of entitlements in all cases.  The volatile nature of correct entitlement does mean that overpayments are reasonably frequent, but unavoidable.

The sections of the Act applicable to incapacity are listed on the following page.

SECTION

DESCRIPTION

8

Section 8 relates to the initial calculation of an employee's normal weekly earnings (NWE), to ascertain the correct entitlement to incapacity payment.

19

Section 19 is the major area where payments for incapacity are determined.  There are various calculations required, based on how much incapacity the employee has taken and over how long a period.

Initially, there is an entitlement to 45 weeks benefit at full NWE, then reduced benefits depending on the extent of incapacity.

20

Retirement related, this section is used to determine an employee's entitlement to incapacity payments when he or she is in receipt of a superannuation pension.

21

Again retirement related, this section determines an employee's entitlement where a lump sum superannuation benefit has been taken.

21A

Constituting a combination of section 20 and 21, this section determines the employee's entitlement where a lump sum payment and weekly pension are taken.

22

This section determines an employee's entitlement where he or she is maintained in hospital, nursing home or similar care for the previous year.

30

Section 30 is the section used to determine an employee's entitlement when Comcare redeems further incapacity payments in lieu of one lump sum amount.

131 to 136

Each of sections 131 to 136 determine the circumstances for former employees receiving/not receiving superannuation and working/not working in other employment.

137

Similar to section 30, this section provides for redemption of incapacity payments to former employees.

Source URL: https://clik.dva.gov.au/military-compensation-reference-library/historical-information/comcare-operations-manual/volume-twelve-overpayments-recovery/part-four-incapacity-overpayments/legislation-brief