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4.9.1 Where total payable to all of the dependants exceeds Ss17(4) limit


When the total amount of compensation calculated exceeds the maximum amount payable, the maximum rate will need to be apportioned between the dependants.  The payments may be reduced proportionately to fit within the limit.

For example:

The maximum rate payable under section 17(4) is $492,145.52 (as at 1 January 2014).  The delegate calculates the total payment due to 2 partial dependants is equal to $550,000.  This exceeds the maximum rate payable.  To reduce each payment proportionately, the delegate applies the following formula:

Dependant 1's notional amount is $450,000:

$450,000 x $492,145.52/$550,000 = $402,664.52

Dependant 2's notional amount is $100,000:

$100,000 x $492,145.52/$550,000 = $89,481.00

Total amount of payments now equals $492,145.52 (the maximum rate).

However, the delegate retains discretion to adopt a different approach.