Operational Advice 96/015
INFORMATION FOR EMPLOYEEs
Effect of redundancy package on
compensation entitlements
If you are currently in receipt of compensation benefits, the acceptance of a redundancy package will impact on your ongoing payments following separation.
You should discuss the implications of accepting the package with your Human Resources (HR) area, who, if the questions are specifically compensation related can call your Claims Manager in Comcare Australia. In some instances, due to the complexity of individual cases, the Claims Manager will not be able to provide specific information on payment amounts but will only be able to give general information on the provisions of the Safety, Rehabilitation and Compensation Act 1988 (SRC Act).
As a beginning though, the following points should be considered when contemplating acceptance of a package.
Ongoing Liability
Where a condition has been accepted as being work related, liability will continue for as long as the condition continues to exist and be work related. It should be noted that the continued acceptance of liability does not necessarily mean that weekly payments will continue.
NOTE: Compensation is not permanent and should not be relied upon in determining any long term financial plans.
Incapacity Benefits
Incapacity Benefits are those payments made in lieu of salary. The nature of the Redundancy package accepted is likely to affect continued payments to current employees following separation from the APS.
Where you are actively seeking redundancy, it is likely that ongoing incapacity payments will be reduced or even cease.
You should check with your HR area on how you might be affected. Incapacity payments following separation cannot be calculated until the following information is officially provided to Comcare Australia:
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the nature of the redundancy;
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the structure of the payment package;
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the timing for payment and separation.
This means that Comcare Australia will not be able to provide you with any specific information on amounts or payments of incapacity until after you have been made redundant.
Separation Pay
Payments in lieu of recreation and long service leave, and severance pay will not be taken into account in calculating any ongoing incapacity payments.
Superannuation
Any employer funded components of superannuation payouts will be taken into account in calculating any ongoing incapacity payments. (This includes funds paid out as lump sums, pensions or rolled over by choice).
taxation
Comcare Australia staff will not provide any information on the taxation implications of redundancy and compensation. Please see your HR area or call the Australian Taxation Office.
Medical or other related costs
For as long as liability exists, and subject to normal reviews and approvals, medical and other claims related expenses will continue to be paid by Comcare Australia.
Employment
Any employment, or ability to engage in employment, following separation is likely to reduce ongoing incapacity payments.