Resumption of incapacity payments after redemption - s 31(1)
Whether the client has previously redeemed a lump sum is relevant to the operation of s 31(1). This subsection restores weekly incapacity payments, at a reduced rate, to a client who has received a s 30 redemption, but is now no longer able to engage in any suitable employment at all and this incapacity is likely to continue indefinitely.
The rate of weekly payment is set by s 31(2) as the amount that would have been payable to the client had the redemption not been made LESS the amount per week that was redeemed.
Note that a weekly payment under s 31 can NOT be redeemed.
Section 31(1) states:
31(1)Where:
(a)at any time after a lump sum is paid to an employee under section 30 in respect of an injury, the injury results in the employee being incapacitated for work to the extent that the employee is not able to engage in suitable employment; and
(b)the incapacity is likely to continue indefinitely;
Comcare is liable to pay compensation to the employee under this section during the period of the incapacity.
Resumption of incapacity payments after redemption of 1971 and 1930 Act injuries
A former employee whose weekly incapacity benefits have been redeemed under s 137 cannot benefit from s 31 in the event of a worsening of his/her incapacity for work.
However, a client who (in effect) received a redemption in respect of incapacity under the 1930 or 1971 Acts (but is not a former employee) can resume incapacity payments under s 31 by virtue of s 125(2) in Part X which states:
125(2)Without limiting the generality of subsection (1), any payment referred to in that subsection that had effect as a redemption of a liability of the Commonwealth, or of a Commonwealth authority, referred to in that subsection, has effect as a redemption under section 30 of the corresponding liability of the relevant authority under this Act.