51.In all cases, the Act requires that, when determining the amount of compensation payable under section 39, certain matters under section 39 (2) must be considered.  The paragraphs which apply to modifications that are not dealt with elsewhere in this Advice include:

Section 39 (2) (d)

52.“... any alternative means of transport available to the employee.”

53.Consideration should be given to alternatives to modifications of vehicles, where applicable.  This may vary from the use of other appropriate household vehicles, to alternative forms of transport which may be available.

Example

It may be more practical for an employee to use another household vehicle (such as an immediate family member's car that does have power steering) rather than his or her own vehicle.

or

Where it is feasible that public transport be used as an alternative measure, this option will apply.

54.However, this does not mean that it may always be reasonable for the employee to use another family member's car or to use public transport.  In all cases, the employee (and family members, as applicable) should be provided with choice where consideration is given to either of the situations indicated in the above example.

55.As part of determining the reasonableness of using alternative forms of transport, you should have regard to the form of transport the employee ordinarily used prior to sustaining his or her injury.  You should assess:

  • the amount of time the employee usually used his or her own vehicle; or

  • how often public transport was utilised; and

  • the extent to which the employee's current condition precludes use of usual pre-injury transport.

56.Where it is demonstrated that the employee is capable of continuing to use pre-injury transport, claims for vehicle modification should be rejected.

Section 39 (2) (f)

57.“... when the employee has previously received compensation under this section in respect of ... a modification of a vehicle and has later disposed of that ... vehicle - whether the value of that ... vehicle was increased as a result of the ... modification.”

58.As with alterations, modifications should not financially advantage the employee.  It should be assumed that any past modification involving the following:

  • specialised seating, such as Recaro seats (for the employee as either a driver or passenger);

  • automatic transmission; and

  • installation of power steering

will increase the value of a vehicle, despite normal vehicle depreciation.  Irrespective of the age of the vehicle, some financial advantage will be retained as a result of the modification.  In keeping with the intent of section 39 (2) (f), future payment for the same modification should be reduced to reflect this financial advantage.

59.The following table will apply where further claims for the same modifications are made:

The following example demonstrates how the table applies:

Example

An employee retains his vehicle for 3 years following modification.  He then purchases a replacement vehicle without the modification and claims the cost of $2000 to be met under section 39.

Having regard to the above table, the employee's entitlement will be $400.