In recent years the workplace relations environment for civilian employment has changed markedly with an increase in individually negotiated Australian Workplace Agreements, Certified Agreements and performance-remuneration arrangements. To provide for consistency of approach in this changed environment, the Safety, Rehabilitation and Compensation Commission agreed to a jurisdictional approach to the calculation of NWE discussed in Comcare JPA 2001/16 and implemented in MCRI 23.
The new approach discussed in the JPA applies only to the civilian component of NWE for clients who are still serving members of the Reserve.
It has no application for clients whose injury arose from full-time ADF service. In these cases, NWE, even after discharge, is based on full-time ADF pay scales. At this time ADF pay scales are still updated by centralised remuneration arrangements, however this may change in future as the ADF moves to more flexible arrangements.
It has no application for the Reserve ADF salary component of NWE. This is treated in a similar fashion to full-time service NWE.
Once discharged from the ADF, the only mechanism for advancing NWE is by indexation using the WPI. This also applies to the civilian component of NWE once the client has discharged from Reserve employment. Where a discharged client is still employed by the Commonwealth in their civilian capacity, NWE can only be advanced by WPI indexation.