Section 19 (2A) of the SRCA refers to a ‘maximum rate compensation week’ and section 129 of the MRCA refers to a ‘maximum rate week’.
The definition of each is similar i.e. it is a week during which:
the person's incapacity prevents the person from working either his or her normal weekly hours, or working at the level he or she worked before the incapacity; and
Service type is no longer defined as either full-time or part-time, rather a person is either a member of the Permanent Forces or the Reserve Forces and may undertake that service on a part-time or full-time basis.
NWE is not calculated for those periods of incapacity predating 1 December 1988.
Incapacity payments under the 1971 Act and the 1930 Act did not utilise the NWE concept as a basis for payment. Weekly compensation for incapacity to work was – during the currency of these Acts – made on the basis of published statutory rates, including additional specified amounts in respect of dependants, varied annually.
NWE/NE is calculated with reference to a relevant period (SRCA) or the example period (MRCA). This period is usually the latest 2 week period before the date of injury (SRCA) or the date of incapacity (MRCA) though there is discretion to determine a different period that more fairly represents the person’s normal weekly earnings i.e. a different length of period or a different period in time.
Serving | Discharged | |||
Type of allowance | DRCA | |||
NWE and NE should be adjusted in line with incremental pay advances that the person actually received, or would have received if not for their discharge. This is covered by subsection 8(6) of the SRCA and section 185 of the MRCA. Prior policy indicated that time-based increments were only applicable to serving members or medically discharged former members.
The following amounts are excluded from NWE/NE:
Bonuses earned by the person are also excluded from actual earnings.
These minimum and maximum compensation provisions are applicable only after the first 45 weeks of incapacity payments. Chapter 7 discusses 45 weeks/maximum rate compensation weeks.
NWE is determined by reference to Section 8 and 9. Section 8 prescribes how the NWE is to be calculated and section 9 determines the period of pre-injury employment (the 'relevant period') from which the NWE is to be averaged. NWE is based upon earnings at the date of injury, and not necessarily when incapacity for work first arises from the injury.
NWE and NE is always based on earnings from the period of Australian Defence Force (ADF) employment during which the injury occurred. Subsequent earnings from employment undertaken after discharge from the ADF is not considered. The method to calculate NWE or NE differs between serving and discharged members and type of service giving rise to the injury.
