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This is a Bill, not an Act. For current law, see the Acts databases.
New South Wales Workers Compensation Legislation Amendment Bill 2012 Contents Page 1 Name of Act 2 2 Commencement 2 Schedule 1 Amendments relating to weekly payments of compensation 3 Schedule 2 Amendments relating to lump sum compensation 34 Schedule 3 Amendments relating to damages for nervous shock 38 Schedule 4 Amendments relating to medical and related expenses 39 Schedule 5 Amendments relating to journey claims 42 Schedule 6 Amendments relating to heart attack and stroke 43 Schedule 7 Amendments relating to disease injuries 45 Schedule 8 Amendments relating to commutation of compensation 46 Schedule 9 Amendments relating to insurer licensing and transfer of claims 48 Schedule 10 Amendments relating to WorkCover Independent Review Officer 53 Schedule 11 Miscellaneous amendments 58 Schedule 12 Amendments relating to savings and transitional provisions 60 b2012-030-33.d16 New South Wales Workers Compensation Legislation Amendment Bill 2012 No , 2012 A Bill for An Act to amend the Workers Compensation Act 1987 and other Acts with respect to the reform of the NSW workers compensation scheme. See also Safety, Return to Work and Support Board Bill 2012. Clause 1 Workers Compensation Legislation Amendment Bill 2012 The Legislature of New South Wales enacts: 1 1 Name of Act 2 This Act is the Workers Compensation Legislation Amendment 3 Act 2012. 4 2 Commencement 5 (1) This Act commences on a day or days to be appointed by proclamation, 6 except as provided by subsection (2). 7 (2) The following provisions of this Act commence on the date of assent: 8 (a) Schedule 2 (Amendments relating to lump sum compensation), 9 (b) Schedule 3 (Amendments relating to damages for nervous 10 shock), 11 (c) Schedule 4 (Amendments relating to medical and related 12 expenses), except Schedule 4 [1], 13 (d) Schedule 5 (Amendments relating to journey claims), 14 (e) Schedule 6 (Amendments relating to heart attack and stroke), 15 (f) Schedule 7 (Amendments relating to disease injuries), 16 (g) Schedule 9 (Amendments relating to insurer licensing and 17 transfer of claims), 18 (h) Schedule 12 (Amendments relating to savings and transitional 19 provisions). 20 Note. Schedule 12 provides for some amendments to have operation on and 21 from 19 June 2012. 22 Page 2 Workers Compensation Legislation Amendment Bill 2012 Amendments relating to weekly payments of compensation Schedule 1 Schedule 1 Amendments relating to weekly 1 payments of compensation 2 1.1 Amendment of Workers Compensation Act 1987 No 70 3 [1] Section 22A Further provisions concerning apportionment of liability 4 under section 22 5 Omit section 22A (2). 6 [2] Part 3, Division 2 7 Insert before section 33: 8 Subdivision 1 Interpretation 9 32A Definitions 10 In this Division and in Schedule 3: 11 base rate of pay--see section 44G. 12 base rate of pay exclusion--see section 44G. 13 current weekly earnings--see section 44I. 14 current work capacity, in relation to a worker, means a present 15 inability arising from an injury such that the worker is not able to 16 return to his or her pre-injury employment but is able to return to 17 work in suitable employment. 18 fair work instrument means: 19 (a) a fair work instrument (other than an FWA order) within 20 the meaning of the Fair Work Act 2009 of the 21 Commonwealth, or 22 (b) a transitional instrument within the meaning of the Fair 23 Work (Transitional Provisions and Consequential 24 Amendments) Act 2009 of the Commonwealth. 25 first entitlement period, in relation to a claim for compensation 26 in the form of weekly payments made by a worker, means an 27 aggregate period not exceeding 13 weeks (whether or not 28 consecutive) in respect of which a weekly payment has been paid 29 or is payable to the worker. 30 maximum weekly compensation amount means the maximum 31 weekly compensation amount under section 34. 32 no current work capacity, in relation to a worker, means a 33 present inability arising from an injury such that the worker is not 34 able to return to work, either in the worker's pre-injury 35 employment or in suitable employment. 36 Page 3 Workers Compensation Legislation Amendment Bill 2012 Schedule 1 Amendments relating to weekly payments of compensation non-pecuniary benefit--see section 44F. 1 ordinary earnings--see section 44E. 2 ordinary hours of work--see section 44H. 3 pre-injury average weekly earnings--see section 44C. 4 relevant period--see section 44D. 5 second entitlement period, in relation to a claim for 6 compensation in the form of weekly payments made by a worker, 7 means an aggregate period of 117 weeks (whether or not 8 consecutive) after the expiry of the first entitlement period in 9 respect of which a weekly payment has been paid or is payable to 10 the worker. 11 seriously injured worker means a worker whose injury has 12 resulted in permanent impairment and: 13 (a) the degree of permanent impairment has been assessed for 14 the purposes of Division 4 to be more than 30%, or 15 (b) the degree of permanent impairment has not been assessed 16 because an approved medical specialist has declined to 17 make an assessment until satisfied that the impairment is 18 permanent and the degree of permanent impairment is 19 fully ascertainable, or 20 (c) the insurer is satisfied that the degree of permanent 21 impairment is likely to be more than 30%. 22 suitable employment, in relation to a worker, means employment 23 in work for which the worker is currently suited: 24 (a) having regard to: 25 (i) the nature of the worker's incapacity and the details 26 provided in medical information including, but not 27 limited to, any certificate of capacity supplied by the 28 worker (under section 44B), and 29 (ii) the worker's age, education, skills and work 30 experience, and 31 (iii) any plan or document prepared as part of the return 32 to work planning process, including an injury 33 management plan under Chapter 3 of the 1998 Act, 34 and 35 (iv) any occupational rehabilitation services that are 36 being, or have been, provided to or for the worker, 37 and 38 (v) such other matters as the WorkCover Guidelines 39 may specify, and 40 (b) regardless of: 41 Page 4 Workers Compensation Legislation Amendment Bill 2012 Amendments relating to weekly payments of compensation Schedule 1 (i) whether the work or the employment is available, 1 and 2 (ii) whether the work or the employment is of a type or 3 nature that is generally available in the employment 4 market, and 5 (iii) the nature of the worker's pre-injury employment, 6 and 7 (iv) the worker's place of residence. 8 work capacity assessment means a work capacity assessment 9 under section 44A. 10 work capacity decision--see section 43. 11 Subdivision 2 Entitlement to weekly compensation 12 [3] Sections 34-44 13 Omit the sections. Insert instead: 14 34 Maximum weekly compensation amount 15 (1) The maximum weekly compensation amount is $1,838.70. 16 (2) If the amount mentioned in subsection (1): 17 (a) is adjusted by the operation of Division 6, or 18 (b) is adjusted by an amendment of this section, 19 the maximum weekly compensation amount applicable to a 20 worker injured before the date on which the adjustment takes 21 effect is, for any period of incapacity for work occurring on and 22 after that date, to be determined by reference to that amount as so 23 adjusted. 24 (3) Such an adjustment does not apply to the extent that the liability 25 to make weekly payments of compensation in respect of any such 26 period of incapacity has been commuted. 27 35 Factors to determine rate of weekly payments 28 (1) For the purposes of the provisions of this Subdivision used to 29 determine the rate of weekly payments payable to an injured 30 worker in respect of a week: 31 AWE means the worker's pre-injury average weekly earnings. 32 D (or a deductible amount) means the sum of the value of each 33 non-pecuniary benefit (if any) that is provided by the employer to 34 a worker in respect of that week (whether or not received by the 35 worker during the relevant period), being a non-pecuniary benefit 36 Page 5 Workers Compensation Legislation Amendment Bill 2012 Schedule 1 Amendments relating to weekly payments of compensation provided by the employer for the benefit of the worker or a 1 member of the family of the worker. 2 E means the amount to be taken into account as the worker's 3 earnings after the injury, calculated as whichever of the following 4 is the greater amount: 5 (a) the amount the worker is able to earn in suitable 6 employment, 7 (b) the worker's current weekly earnings. 8 MAX means the maximum weekly compensation amount. 9 (2) If the determination of an amount for the purpose of determining 10 the rate of weekly payments payable to an injured worker results 11 in an amount that is less than zero, the amount is to be treated as 12 zero. 13 36 Weekly payments in first entitlement period (first 13 weeks) 14 (1) The weekly payment of compensation to which an injured worker 15 who has no current work capacity is entitled during the first 16 entitlement period is to be at the rate of: 17 (a) (AWE x 95%) - D, or 18 (b) MAX - D, 19 whichever is the lesser. 20 (2) The weekly payment of compensation to which an injured worker 21 who has current work capacity is entitled during the first 22 entitlement period is to be at the rate of: 23 (a) (AWE x 95%) - (E + D), or 24 (b) MAX - (E + D), 25 whichever is the lesser. 26 37 Weekly payments in second entitlement period (weeks 14-130) 27 (1) The weekly payment of compensation to which an injured worker 28 who has no current work capacity is entitled during the second 29 entitlement period is to be at the rate of: 30 (a) (AWE x 80%) - D, or 31 (b) MAX - D, 32 whichever is the lesser. 33 (2) The weekly payment of compensation to which an injured worker 34 who has current work capacity and has returned to work for not 35 less than 15 hours per week is entitled during the second 36 entitlement period is to be at the rate of: 37 Page 6 Workers Compensation Legislation Amendment Bill 2012 Amendments relating to weekly payments of compensation Schedule 1 (a) (AWE x 95%) - (E + D), or 1 (b) MAX - (E + D), 2 whichever is the lesser. 3 (3) The weekly payment of compensation to which an injured worker 4 who has current work capacity and has returned to work for less 5 than 15 hours per week (or who has not returned to work) is 6 entitled during the second entitlement period is to be at the rate 7 of: 8 (a) (AWE x 80%) - (E + D), or 9 (b) MAX - (E + D), 10 whichever is the lesser. 11 38 Special requirements for continuation of weekly payments after 12 second entitlement period (after week 130) 13 (1) A worker's entitlement to compensation in the form of weekly 14 payments under this Part ceases on the expiry of the second 15 entitlement period unless the worker is entitled to compensation 16 after the second entitlement period under this section. 17 (2) A worker who is assessed by the insurer as having no current 18 work capacity and likely to continue indefinitely to have no 19 current work capacity is entitled to compensation after the second 20 entitlement period. 21 (3) A worker who is assessed by the insurer as having current work 22 capacity is entitled to compensation after the second entitlement 23 period only if: 24 (a) the worker has applied to the insurer in writing (in the form 25 approved by the Authority) no earlier than 52 weeks before 26 the end of the second entitlement period for continuation 27 of weekly payments after the second entitlement period, 28 and 29 (b) the worker has returned to work (whether in 30 self-employment or other employment) for a period of not 31 less than 15 hours per week and is in receipt of current 32 weekly earnings (or current weekly earnings together with 33 a deductible amount) of at least $155 per week, and 34 (c) the worker is assessed by the insurer as being, and as likely 35 to continue indefinitely to be, incapable of undertaking 36 further additional employment or work that would increase 37 the worker's current weekly earnings. 38 (4) An insurer must, for the purpose of assessing an injured worker's 39 entitlement to weekly payments of compensation after the expiry 40 Page 7 Workers Compensation Legislation Amendment Bill 2012 Schedule 1 Amendments relating to weekly payments of compensation of the second entitlement period, ensure that a work capacity 1 assessment of the worker is conducted: 2 (a) during the last 52 weeks of the second entitlement period, 3 and 4 (b) thereafter at least once every 2 years. 5 Note. An insurer can conduct a work capacity assessment of a worker 6 at any time. The WorkCover Guidelines can also require a work capacity 7 assessment to be conducted. 8 (5) An insurer is not to conduct a work capacity assessment of a 9 seriously injured worker unless the insurer thinks it appropriate 10 to do so and the worker requests it. An insurer can make a work 11 capacity decision about a seriously injured worker without 12 conducting a work capacity assessment. 13 (6) The weekly payment of compensation to which an injured worker 14 who has no current work capacity is entitled under this section 15 after the second entitlement period is to be at the rate of: 16 (a) (AWE x 80%) - D, or 17 (b) MAX - D, 18 whichever is the lesser. 19 (7) The weekly payment of compensation to which an injured worker 20 who has current work capacity is entitled under this section after 21 the second entitlement period is to be at the rate of: 22 (a) (AWE x 80%) - (E + D), or 23 (b) MAX - (E + D), 24 whichever is the lesser. 25 (8) A worker's entitlement to compensation under this section may 26 be reassessed at any time. 27 39 Cessation of weekly payments after 5 years 28 (1) Despite any other provision of this Division, a worker has no 29 entitlement to weekly payments of compensation under this 30 Division in respect of an injury after an aggregate period of 31 260 weeks (whether or not consecutive) in respect of which a 32 weekly payment has been paid or is payable to the worker in 33 respect of the injury. 34 (2) This section does not apply to an injured worker whose injury 35 results in permanent impairment if the degree of permanent 36 impairment resulting from the injury is more than 20%. 37 Note. For workers with more than 20% permanent impairment, 38 entitlement to compensation may continue after 260 weeks but 39 entitlement after 260 weeks is still subject to section 38. 40 Page 8 Workers Compensation Legislation Amendment Bill 2012 Amendments relating to weekly payments of compensation Schedule 1 (3) For the purposes of this section, the degree of permanent 1 impairment that results from an injury is to be assessed as 2 provided by section 65 (for an assessment for the purposes of 3 Division 4). 4 40 Entitlement after second entitlement period not affected by certain 5 circumstances 6 (1) A worker who receives weekly payments under section 38 does 7 not cease to be entitled to weekly payments under that section by 8 reason only that the worker occasionally, but not during more 9 than 4 weeks in the first period of 12 consecutive weeks 10 immediately after the worker first received weekly payments 11 under that section, or in any subsequent consecutive period of 12 12 weeks: 13 (a) has worked more hours during a week, or 14 (b) has worked fewer hours during a week (even if the number 15 of hours worked is less than 15), or 16 (c) has received higher current weekly earnings, or 17 (d) has received lower current weekly earnings (even if the 18 earnings are less than $155 per week), 19 than the hours worked, or the current weekly earnings received, 20 at the time of making the application for payments under 21 section 38. 22 (2) A reference in subsection (1) to hours of work does not include 23 hours of leave approved by the employer. 24 41 Compensation for incapacity after second entitlement period 25 resulting from surgery 26 (1) An injured worker who suffers incapacity resulting from injury 27 related surgery is entitled to weekly payments of compensation 28 (special compensation) as provided by this section in respect of 29 that incapacity when the incapacity occurs after the second 30 entitlement period. 31 (2) The special compensation provided for by this section is payable 32 at the rate provided under section 37, as if the period of incapacity 33 in respect of which the special compensation is payable occurred 34 during (not after) the second entitlement period. 35 (3) Special compensation is not payable in respect of any period of 36 incapacity that occurs: 37 (a) during the first 13 consecutive weeks after the end of the 38 second entitlement period, or 39 Page 9 Workers Compensation Legislation Amendment Bill 2012 Schedule 1 Amendments relating to weekly payments of compensation (b) more than 13 weeks after the surgery concerned, or 1 (c) during any period in respect of which the worker is 2 otherwise entitled to compensation after the second 3 entitlement period (under section 38). 4 (4) Surgery is injury related if it is surgery that the worker undergoes 5 in the course of medical treatment provided to the worker as a 6 result of an injury (the initial injury) received by the worker 7 (being medical treatment for which the insurer has accepted 8 liability under this Part). 9 (5) The following requirements must be satisfied for a worker to be 10 eligible for the special compensation provided for by this section: 11 (a) the worker must have received weekly payments of 12 compensation in respect of the initial injury and have had 13 current work capacity prior to suffering the incapacity 14 resulting from the injury related surgery, 15 (b) the worker must have returned to work after the initial 16 injury (whether in self-employment or other employment) 17 for a period of not less than 15 hours per week and have 18 been in receipt of current weekly earnings (or current 19 weekly earnings together with a deductible amount) of at 20 least $155 per week. 21 (6) This section does not limit section 52 (Termination of weekly 22 payments on retiring age). 23 42 Application by worker to alter amount of weekly payments 24 (1) A worker who is receiving weekly payments of compensation 25 may apply in writing to the insurer for an increase or reduction in 26 the amount of the payments and must specify in the application 27 the reasons for so applying and provide with the application any 28 supporting evidence. 29 (2) Within 28 days after receiving an application, the insurer must: 30 (a) approve or reject the application, and 31 (b) give the worker and the employer written notice of its 32 decision, including, in the case of rejection, a statement of 33 the reasons for the decision. 34 Subdivision 3 Work capacity 35 43 Work capacity decisions by insurers 36 (1) The following decisions of an insurer (referred to in this Division 37 as work capacity decisions) are final and binding on the parties 38 Page 10 Workers Compensation Legislation Amendment Bill 2012 Amendments relating to weekly payments of compensation Schedule 1 and not subject to appeal or review except review under 1 section 44 or judicial review by the Supreme Court: 2 (a) a decision about a worker's current work capacity, 3 (b) a decision about what constitutes suitable employment for 4 a worker, 5 (c) a decision about the amount an injured worker is able to 6 earn in suitable employment, 7 (d) a decision about the amount of an injured worker's 8 pre-injury average weekly earnings or current weekly 9 earnings, 10 (e) any other decision of an insurer that affects a worker's 11 entitlement to weekly payments of compensation, 12 including a decision to suspend, discontinue or reduce the 13 amount of the weekly payments of compensation payable 14 to a worker on the basis of any decision referred to in 15 paragraphs (a)-(d). 16 (2) The following decisions are not work capacity decisions: 17 (a) a decision to dispute liability for weekly payments of 18 compensation, 19 (b) a decision that can be the subject of a medical dispute 20 under Part 7 of Chapter 7 of the 1998 Act. 21 (3) The Commission does not have jurisdiction to determine any 22 dispute about a work capacity decision of an insurer and is not to 23 make a decision in respect of a dispute before the Commission 24 that is inconsistent with a work capacity decision of an insurer. 25 44 Review of work capacity decisions 26 (1) An injured worker may refer a work capacity decision of an 27 insurer for review: 28 (a) by the insurer (an internal review) in accordance with the 29 WorkCover Guidelines within 30 days after an application 30 for internal review is made by the worker, or 31 (b) by the Authority (as a merit review of the decision), but not 32 until the dispute has been the subject of internal review by 33 the insurer, or 34 (c) to the Independent Review Officer (as a review only of the 35 insurer's procedures in making the work capacity decision 36 and not of any judgment or discretion exercised by the 37 insurer in making the decision), but not until the dispute 38 has been the subject of internal review by the insurer and 39 merit review by the Authority. 40 Page 11 Workers Compensation Legislation Amendment Bill 2012 Schedule 1 Amendments relating to weekly payments of compensation (2) An application for review of a work capacity decision must be 1 made in the form approved by the Authority and specify the 2 grounds on which the review is sought. The worker must notify 3 the insurer in a form approved by the Authority of an application 4 made by the worker for review by the Authority or the 5 Independent Review Officer. 6 (3) The following provisions apply to the review of a work capacity 7 decision when the reviewer is the Authority or the Independent 8 Review Officer: 9 (a) an application for review must be made within 30 days 10 after the worker receives notice in the form approved by 11 the Authority of the insurer's decision on internal review 12 of the decision (when the application is for review by the 13 Authority) or the Authority's decision on a review (when 14 the application is for review by the Independent Review 15 Officer), 16 (b) an application for review by the Authority may be made 17 without an internal review by the insurer if the insurer has 18 failed to conduct an internal review and notify the worker 19 of the decision on the internal review within 30 days after 20 the application for internal review is made, 21 (c) the reviewer may decline to review a decision because the 22 application for review is frivolous or vexatious or because 23 the worker has failed to provide information requested by 24 the reviewer, 25 (d) the worker and the insurer must provide such information 26 as the reviewer may reasonably require and request for the 27 purposes of the review, 28 (e) the reviewer is to notify the insurer and the worker of the 29 findings of the review and may make recommendations to 30 the insurer based on those findings (giving reasons for any 31 such recommendation), 32 (f) the Independent Review Officer must also notify the 33 Authority of the findings of a review and the Authority 34 may make recommendations (giving reasons for any such 35 recommendations) to the insurer based on those findings, 36 (g) recommendations made by the Authority are binding on 37 the insurer and must be given effect to by the insurer, 38 (h) recommendations made by the Independent Review 39 Officer are not binding on the insurer or the Authority. 40 Page 12 Workers Compensation Legislation Amendment Bill 2012 Amendments relating to weekly payments of compensation Schedule 1 (4) A review of a work capacity decision does not operate to stay the 1 decision or otherwise prevent the taking of action based on the 2 decision. 3 (5) The Commission is not to make a decision in proceedings 4 concerning a dispute about weekly payments of compensation 5 payable to a worker while a work capacity decision by an insurer 6 about those weekly payments is the subject of a review under this 7 section. 8 (6) A legal practitioner acting for a worker is not entitled to be paid 9 or recover any amount for costs incurred in connection with a 10 review under this section of a work capacity decision of an 11 insurer. 12 44A Work capacity assessment 13 (1) An insurer is to conduct a work capacity assessment of an injured 14 worker when required to do so by this Act or the WorkCover 15 Guidelines and may conduct a work capacity assessment at any 16 other time. 17 (2) A work capacity assessment is an assessment of an injured 18 worker's current work capacity, conducted in accordance with 19 the WorkCover Guidelines. 20 (3) A work capacity assessment is not necessary for the making of a 21 work capacity decision by an insurer. 22 (4) An insurer is not to conduct a work capacity assessment of a 23 seriously injured worker unless the insurer thinks it appropriate 24 to do so and the worker requests it. 25 (5) An insurer may in accordance with the WorkCover Guidelines 26 require a worker to attend for and participate in any assessment 27 that is reasonably necessary for the purposes of the conduct of a 28 work capacity assessment. Such an assessment can include an 29 examination by a medical practitioner or other health care 30 professional. 31 (6) If a worker refuses to attend an assessment under this section or 32 the assessment does not take place because of the worker's 33 failure to properly participate in it, the worker's right to weekly 34 payments is suspended until the assessment has taken place. 35 Page 13 Workers Compensation Legislation Amendment Bill 2012 Schedule 1 Amendments relating to weekly payments of compensation 44B Evidence as to work capacity 1 (1) A worker must provide to the insurer: 2 (a) certificates of capacity in accordance with this section in 3 respect of the period in respect of which the worker is 4 entitled to weekly payments, and 5 (b) a declaration in the form approved by the Authority as to 6 whether or not the worker is engaged in any form of 7 employment or in self-employment or voluntary work for 8 which he or she receives or is entitled to receive payment 9 in money or otherwise or has been so engaged at any time 10 since last providing a certificate under this section. 11 (2) If a decision to reject a claim for weekly payments or to terminate 12 weekly payments is set aside, a worker is not required to comply 13 with this section in respect of any period from the date that the 14 decision took effect until the day on which the decision is set 15 aside. 16 (3) A certificate of capacity must: 17 (a) be a certificate given by a medical practitioner in a form 18 approved by the Authority, and 19 (b) certify as to the worker's incapacity for work and whether 20 the worker has a current work capacity or has no current 21 work capacity during the period, not exceeding 28 days, 22 stated in the certificate, and 23 (c) specify the expected duration of the worker's incapacity. 24 (4) A certificate of capacity may cover a period exceeding 28 days if: 25 (a) the person giving the certificate states in the certificate the 26 special reasons why the certificate covers the longer 27 period, and 28 (b) the insurer is satisfied that, for the special reasons stated, 29 the certificate should be accepted. 30 (5) A certificate of capacity is of no effect to the extent that it relates 31 to a period that is more than 90 days before the certificate is 32 provided. 33 (6) The insurer may discontinue weekly payments of compensation 34 if the worker fails to comply with a requirement under this 35 section within 7 days after the requirement is communicated to 36 the worker by the insurer. 37 Note. Section 270 of the 1998 Act also allows an insurer to require 38 medical evidence and authorisations about incapacity for work when 39 weekly payments begin. 40 Page 14 Workers Compensation Legislation Amendment Bill 2012 Amendments relating to weekly payments of compensation Schedule 1 Subdivision 4 Interpretation 1 44C Definition--pre-injury average weekly earnings 2 (1) In this Division, pre-injury average weekly earnings, in respect 3 of a relevant period in relation to a worker, means the sum of: 4 (a) the average of the worker's ordinary earnings during the 5 relevant period (excluding any week during which the 6 worker did not actually work and was not on paid leave) 7 expressed as a weekly sum, and 8 (b) any overtime and shift allowance payment that is permitted 9 to be included under this section (but only for the purposes 10 of the calculation of weekly payments payable in the first 11 52 weeks for which weekly payments are payable). 12 (2) If a worker has been continuously employed by the same 13 employer for less than 4 weeks before the injury, pre-injury 14 average weekly earnings, in relation to that worker, may be 15 calculated having regard to: 16 (a) the average of the worker's ordinary earnings that the 17 worker could reasonably have been expected to have 18 earned in that employment, but for the injury, during the 19 period of 52 weeks after the injury expressed as a weekly 20 sum, and 21 (b) any overtime and shift allowance payment that is permitted 22 to be included under this section (but only for the purposes 23 of the calculation of weekly payments payable in the first 24 52 weeks for which weekly payments are payable). 25 (3) If a worker: 26 (a) was not a full time worker immediately before the injury, 27 and 28 (b) at the time of the injury was seeking full time employment, 29 and 30 (c) had been predominantly a full time worker during the 31 period of 78 weeks immediately before the injury, 32 pre-injury average weekly earnings, in relation to that worker, 33 means the sum of: 34 (d) the average of the worker's ordinary earnings while 35 employed during the period of 78 weeks immediately 36 before the injury (excluding any week during which the 37 worker did not actually work and was not on paid leave) 38 (the qualifying period), whether or not the employer is the 39 Page 15 Workers Compensation Legislation Amendment Bill 2012 Schedule 1 Amendments relating to weekly payments of compensation same employer as at the time of the injury expressed as a 1 weekly sum, and 2 (e) any overtime and shift allowance payment that is permitted 3 to be included under this section (but only for the purposes 4 of the calculation of weekly payments payable in the first 5 52 weeks for which weekly payments are payable). 6 (4) In relation to a worker of a class referred to in Column 2 of an 7 item in Schedule 3, pre-injury average weekly earnings means 8 the amount determined in accordance with Column 3 of that item, 9 expressed as a weekly sum. 10 (5) An overtime and shift allowance payment is permitted to be 11 included in the calculation of pre-injury average weekly earnings 12 (but only for the purposes of the calculation of weekly payments 13 payable in the first 52 weeks for which weekly payments are 14 payable) if: 15 (a) the worker worked paid overtime or carried out work that 16 attracted a shift allowance during the relevant period, and 17 (b) the worker would, but for the worker's injury, have been 18 likely, at any time during that 52 week period, to have 19 worked paid overtime or carried out work that attracted a 20 shift allowance. 21 (6) The amount of an overtime and shift allowance payment that is 22 permitted to be included is to be calculated in accordance with the 23 following formula: 24 A --- - B where: 25 A is the total amount paid or payable to the worker for paid 26 overtime and shift allowances in respect of the relevant period. 27 B is the number of weeks during the relevant period during which 28 the worker worked or was on paid annual leave. 29 (7) If the amount of a worker's pre-injury average weekly earnings 30 is less than any minimum amount prescribed by the regulations 31 as applicable to the worker, the amount of the worker's pre-injury 32 average weekly earnings is deemed to be that minimum amount. 33 Different minimum amounts may be prescribed for different 34 classes of workers, including part-time and full-time workers. 35 Page 16 Workers Compensation Legislation Amendment Bill 2012 Amendments relating to weekly payments of compensation Schedule 1 44D Definitions applying to pre-injury average weekly earnings-- 1 relevant period 2 (1) Subject to this section, a reference to the relevant period in 3 relation to pre-injury average weekly earnings of a worker is a 4 reference to: 5 (a) in the case of a worker who has been continuously 6 employed by the same employer for the period of 52 weeks 7 immediately before the injury, that period of 52 weeks, or 8 (b) in the case of a worker who has been continuously 9 employed by the same employer for less than 52 weeks 10 immediately before the injury, the period of continuous 11 employment by that employer. 12 (2) The relevant period, in relation to pre-injury average weekly 13 earnings of a worker who, during the 52 weeks immediately 14 before the injury, voluntarily (otherwise than by reason of an 15 incapacity for work resulting from, or materially contributed to 16 by, an injury that entitles the worker to compensation under this 17 Act): 18 (a) alters the ordinary hours of work, or 19 (b) alters the nature of the work performed by the worker, 20 and, as a result, the worker's ordinary earnings are reduced, does 21 not include the period before the reduction takes effect. 22 (3) If, during the period of 52 weeks immediately before the injury, 23 a worker: 24 (a) is promoted, or 25 (b) is appointed to a different position, 26 (otherwise than on a temporary basis) and, as a result, the 27 worker's ordinary earnings are increased, the relevant period in 28 relation to the worker begins on the day on which the promotion 29 or appointment takes effect. 30 44E Definitions applying to pre-injury average weekly earnings-- 31 ordinary earnings 32 (1) Subject to this section, in relation to pre-injury average weekly 33 earnings, the ordinary earnings of a worker in relation to a week 34 during the relevant period are: 35 (a) if the worker's base rate of pay is calculated on the basis of 36 ordinary hours worked, the sum of the following amounts: 37 (i) the worker's earnings calculated at that rate for 38 ordinary hours in that week during which the worker 39 worked or was on paid leave, 40 Page 17 Workers Compensation Legislation Amendment Bill 2012 Schedule 1 Amendments relating to weekly payments of compensation (ii) amounts paid or payable as piece rates or 1 commissions in respect of that week, 2 (iii) the monetary value of non-pecuniary benefits 3 provided in respect of that week, or 4 (b) in any other case, the sum of the following amounts: 5 (i) the actual earnings paid or payable to the worker in 6 respect of that week, 7 (ii) amounts paid or payable as piece rates or 8 commissions in respect of that week, 9 (iii) the monetary value of non-pecuniary benefits 10 provided in respect of that week. 11 (2) A reference to ordinary earnings does not include a reference to 12 any employer superannuation contribution. 13 44F Definition of "non-pecuniary benefits" 14 (1) The following benefits provided in respect of a week to a worker 15 by the employer for the performance of work by the worker are 16 non-pecuniary benefits in respect of that week: 17 (a) residential accommodation, 18 (b) use of a motor vehicle, 19 (c) health insurance, 20 (d) education fees. 21 (2) Any amount that, under the worker's terms of employment, the 22 employer is required (for the performance of work by the worker) 23 to apply or deal with on behalf of the worker in accordance with 24 the worker's instructions is also a non-pecuniary benefit but this 25 does not include any amount that is a base rate of pay exclusion. 26 (3) Any amount that is excluded from base rate of pay as a base rate 27 of pay exclusion is not a non-pecuniary benefit. 28 (4) The monetary value of a non-pecuniary benefit referred to in 29 subsection (1) in respect of a week is: 30 (a) the value that would be the value as a fringe benefit for the 31 purposes of the Fringe Benefits Tax Assessment Act 1986 32 of the Commonwealth, calculated in accordance with 33 subsection (5), divided by 52, or 34 (b) in the case of residential accommodation that is not a 35 fringe benefit or is otherwise not subject to fringe benefits 36 tax, the amount that would reasonably be payable for that 37 Page 18 Workers Compensation Legislation Amendment Bill 2012 Amendments relating to weekly payments of compensation Schedule 1 accommodation, or equivalent accommodation in the same 1 area, in respect of that week if it were let on commercial 2 terms. 3 (5) Value as a fringe benefit is to be determined in accordance with 4 the formula: 5 1 TV × ----------------------------- - 1 - FBT rate where: 6 TV is the value that would be the taxable value of the benefit as 7 a fringe benefit for the purposes of the Fringe Benefits Tax 8 Assessment Act 1986 of the Commonwealth. 9 FBT rate is the rate of fringe benefits tax imposed by the Fringe 10 Benefits Tax Assessment Act 1986 of the Commonwealth that 11 applies when the non-pecuniary benefit is provided. 12 44G Definition applying to pre-injury average weekly earnings and 13 current weekly earnings--base rate of pay 14 (1) In relation to pre-injury average weekly earnings and current 15 weekly earnings, a reference to a base rate of pay is a reference 16 to the rate of pay payable to a worker for his or her ordinary hours 17 of work but does not include any of the following amounts 18 (referred to in this Division as base rate of pay exclusions): 19 (a) incentive based payments or bonuses, 20 (b) loadings, 21 (c) monetary allowances, 22 (d) piece rates or commissions, 23 (e) overtime or shift allowances, 24 (f) any separately identifiable amount not referred to in 25 paragraphs (a) to (e). 26 (2) In relation to pre-injury average weekly earnings and current 27 weekly earnings, if, at the time of the injury: 28 (a) a worker's base rate of pay is prescribed by a fair work 29 instrument that applies to the worker, and 30 (b) the worker's actual rate of pay for ordinary hours is higher 31 than that rate of pay, 32 the worker's actual rate of pay is to be taken to be the worker's 33 base rate of pay. 34 Page 19 Workers Compensation Legislation Amendment Bill 2012 Schedule 1 Amendments relating to weekly payments of compensation 44H Definition applying to pre-injury average weekly earnings and 1 current weekly earnings--ordinary hours of work 2 In relation to pre-injury average weekly earnings and current 3 weekly earnings, the ordinary hours of work: 4 (a) in the case of a worker to whom a fair work instrument 5 applies are: 6 (i) if the ordinary hours of work in relation to a week 7 are agreed or determined in accordance with a fair 8 work instrument between the worker and the 9 employer--those hours, or 10 (ii) in any other case, the worker's average weekly 11 hours (excluding any week during which the worker 12 did not actually work and was not on paid leave) 13 during the relevant period, or 14 (b) in the case of a worker to whom a fair work instrument 15 does not apply: 16 (i) if the ordinary hours of work are agreed between the 17 worker and the employer, those hours, or 18 (ii) in any other case, the worker's average weekly 19 hours (excluding any week during which the worker 20 did not actually work and was not on paid leave) 21 during the relevant period. 22 44I Definition--current weekly earnings 23 In this Act, current weekly earnings of a worker in relation to a 24 week means: 25 (a) if the worker's base rate of pay is calculated on the basis of 26 ordinary hours worked, the sum of the following amounts: 27 (i) the worker's earnings calculated at that rate for the 28 ordinary hours worked during that week, 29 (ii) amounts paid or payable for overtime or shift 30 allowances in respect of that week, 31 (iii) amounts paid or payable as piece rates or 32 commissions in respect of that week, or 33 (b) in any other case, the worker's actual earnings in respect of 34 that week but not including any amount that is a base rate 35 of pay exclusion unless it is: 36 (i) paid or payable for overtime or shift allowances in 37 respect of that week, or 38 (ii) paid or payable as piece rates or commissions in 39 respect of that week. 40 Page 20 Workers Compensation Legislation Amendment Bill 2012 Amendments relating to weekly payments of compensation Schedule 1 [4] Section 47 Incapacity deemed to exist in certain cases 1 Omit the section. 2 [5] Section 52 Termination of weekly payments on retiring age 3 Omit section 52 (2) (a). Insert instead: 4 (a) receives an injury before reaching the retiring age--a 5 weekly payment of compensation is not to be made in 6 respect of any resulting period of incapacity for work 7 occurring after the date on which that person reaches the 8 retiring age, or 9 [6] Section 52A Discontinuation of weekly payments for partial incapacity 10 after 2 years 11 Omit the section. 12 [7] Section 54 13 Omit the section. Insert instead: 14 54 Notice required before termination or reduction of payment of 15 weekly compensation 16 (1) If a worker has received weekly payments of compensation for a 17 continuous period of at least 12 weeks, the person paying the 18 compensation must not discontinue payment, or reduce the 19 amount, of the compensation without first giving the worker not 20 less than the required period of notice of intention to discontinue 21 payment of the compensation or to reduce the amount of the 22 compensation. 23 Maximum penalty: 50 penalty units. 24 (2) The required period of notice for the purposes of this section is: 25 (a) when the discontinuation or reduction is on the basis of any 26 reassessment by the insurer of the entitlement to weekly 27 payments of compensation resulting from a work capacity 28 decision of the insurer--3 months, or 29 (b) in any other case--2 weeks for a worker who has been 30 receiving weekly payments of compensation for a 31 continuous period of less than 1 year, or 6 weeks for a 32 worker who has been receiving weekly payments of 33 compensation for a continuous period of 1 year or more. 34 (3) If the payment of compensation to a worker is discontinued, or 35 the amount of compensation is reduced, by a person in 36 circumstances involving the commission by that person of an 37 Page 21 Workers Compensation Legislation Amendment Bill 2012 Schedule 1 Amendments relating to weekly payments of compensation offence under subsection (1), the worker may, whether or not that 1 person has been prosecuted for the offence, recover from the 2 person an amount of compensation that: 3 (a) if no period of notice has been given--is equal to the 4 amount of compensation, or additional compensation, that 5 would have been payable during the required period of 6 notice if payment of the compensation had not been 7 discontinued or if the amount of compensation had not 8 been reduced, or 9 (b) if less than the required period of notice has been given-- 10 is equal to the amount of compensation that would have 11 been payable during the balance of the required period of 12 notice if payment of the compensation had not been 13 discontinued or if the amount of the compensation had not 14 been reduced. 15 (4) The notice referred to in this section is to be given to the worker 16 personally or by post and (if the regulations so require) be in such 17 form or contain such information as may be prescribed by the 18 regulations. 19 (5) This section does not affect the operation of section 58 (Refund 20 of weekly payments paid after return to work etc). 21 (6) This section does not apply to a reduction in weekly 22 compensation as a result only of the application of different rates 23 of compensation after the expiration of earlier periods of 24 incapacity for which higher rates were payable. 25 [8] Sections 55, 55A and 56 26 Omit the sections. 27 [9] Section 79 Definitions 28 Omit paragraph (a) of the definition of adjustable amount. Insert instead: 29 (a) each of the amounts specified in sections 25, 34, 37 and 40, 30 or clause 2 of Part 19H of Schedule 6, without regard to 31 any adjustment under this Division, and 32 [10] Section 79, definition of "base index number" 33 Insert after paragraph (a) of the definition: 34 (a1) in respect of an adjustable amount that is the amount 35 specified in section 34 or clause 2 of Part 19H of 36 Schedule 6--the number 240.5, and 37 Page 22 Workers Compensation Legislation Amendment Bill 2012 Amendments relating to weekly payments of compensation Schedule 1 [11] Part 3, Division 6A 1 Insert after Division 6 of Part 3: 2 Division 6A Indexation of weekly payments 3 82A Indexation--weekly payments 4 (1) The amount of a weekly payment to a worker under Division 2 in 5 respect of an injury is to be varied on each review date after the 6 day on which the worker became entitled to weekly payments in 7 respect of that injury, by varying the amount of the worker's 8 pre-injury average weekly earnings for the purposes of the 9 calculation of the amount of the weekly payment in accordance 10 with the formula: 11 B A × --- - C where: 12 A is the amount of the worker's pre-injury average weekly 13 earnings within the meaning of Division 2 or, if that amount has 14 been varied in accordance with this section, that amount as last so 15 varied. 16 B is: 17 (a) the CPI for the December quarter immediately prior to the 18 review date when the review date is 1 April, or 19 (b) the CPI for the June quarter immediately prior to the 20 review date when the review date is 1 October. 21 C is: 22 (a) the CPI for the June quarter immediately prior to the 23 review date when the review date is 1 April, or 24 (b) the CPI for the December quarter immediately prior to the 25 review date when the review date is 1 October. 26 (2) In this section: 27 CPI means the consumer price index (All Groups Index) for 28 Sydney issued by the Australian Statistician. 29 review date means 1 April and 1 October in each year. 30 (3) A variation of an amount of a worker's pre-injury average weekly 31 earnings under this section does not take effect to the extent 32 (if any) to which it increases that amount to more than 100% of 33 the worker's ordinary earnings (calculated in accordance with 34 Page 23 Workers Compensation Legislation Amendment Bill 2012 Schedule 1 Amendments relating to weekly payments of compensation Division 2) expressed as a weekly sum to which the worker 1 would be entitled if he or she were employed in the same position 2 or positions (if it or they can be identified) as he or she was 3 employed in immediately before the injury, being the position or 4 positions on the basis of which the calculation of the worker's 5 pre-injury average weekly earnings was made. 6 (4) The Minister is, on or before each review date, to notify, by order 7 published on the NSW legislation website, the number that 8 equates to the factor B for the purposes of the variation required --- - 9 C for that review date under this section. 10 (5) A notification published on the NSW legislation website after a 11 review date for the purposes of the variation required for that 12 review date under this section has effect as if published before 13 that review date. 14 82B Indexation of certain amounts--according to average weekly 15 earnings 16 (1) The amount A is to be varied, in respect of the financial year 17 beginning on 1 July 2012 and each subsequent financial year, in 18 accordance with the formula: 19 B A × --- - C where: 20 A is the amount of $155 specified in sections 38, 40 and 41 or, if 21 that amount has been varied in accordance with this section, that 22 amount as last so varied. 23 B is the latest average weekly earnings as at 30 May in the 24 preceding financial year of all employees for NSW published by 25 the Australian Statistician in respect of the December quarter of 26 that financial year or, if that is not available, the latest available 27 quarter. 28 C is the average weekly earnings of all employees for NSW as at 29 30 May in the year preceding the preceding financial year 30 published by the Australian Statistician in respect of the quarter 31 preceding that 30 May corresponding to the quarter referred to 32 above. 33 (2) The Minister is to notify, by order published on the NSW 34 legislation website before the start of each financial year, the 35 amount that is to apply for that financial year as the amount 36 Page 24 Workers Compensation Legislation Amendment Bill 2012 Amendments relating to weekly payments of compensation Schedule 1 specified in sections 38, 40 and 41 as varied in accordance with 1 this section. 2 (3) A notification published on the NSW legislation website after the 3 start of a financial year and specifying an amount that is to apply 4 as the amount specified in sections 38, 40 and 41 for that financial 5 year is to apply and has effect for that financial year. 6 82C Indexation--no reduction 7 If the variation of an amount specified in section 82A or 82B by 8 operation of that section has the effect of reducing the amount: 9 (a) the variation is deemed not to have taken effect, except for 10 the purposes of the application of this section, and 11 (b) when the amount is varied and increased by operation of 12 this section in respect of the next or a subsequent financial 13 year, that variation has effect as an increase only to the 14 extent (if any) to which the amount of the increase exceeds 15 the amount of the reduction in respect of a preceding 16 financial year, or that part of such a reduction that has not 17 been set off against a previous increase. 18 82D Indexation--rounding 19 Where it is necessary for the purposes of this Division to 20 calculate an amount that consists of or includes a fraction of a 21 whole number, the amount is deemed to have been calculated in 22 accordance with this section if the calculation is made: 23 (a) if the amount is less than $1,000, to the nearest whole $1, 24 or 25 (b) if the amount is $1,000 or more, to the nearest whole $10. 26 [12] Section 87EA Preconditions to commutation 27 Omit section 87EA (1) (g). Insert instead: 28 (g) the injured worker has not had weekly payments of 29 compensation terminated under section 48A of the 1998 30 Act. 31 [13] Section 151I Calculation of past and future loss of earnings 32 Omit "section 35" wherever occurring. Insert instead "section 34". 33 Page 25 Workers Compensation Legislation Amendment Bill 2012 Schedule 1 Amendments relating to weekly payments of compensation [14] Schedule 3 1 Insert after Schedule 2: 2 Schedule 3 Pre-injury average weekly earnings 3 (Section 44C) 4 Column 1 Column 2 Column 3 Item Class of worker at Calculation of pre-injury average time of injury weekly earnings 1 Worker who is: (a) Until the worker attains the age or (a) under the age of stage or, but for the injury, would 21 years, or have attained the stage at which the highest rate is payable--the worker's (b) an apprentice, or pre-injury average weekly earnings are the earnings that the worker would have been entitled to receive in respect of a relevant week if the worker had not sustained the injury and had continued in the employment. (c) working under a (b) On and after the worker attains the contract of age or stage or, but for the injury, employment would have attained the age or stage under which the at which the highest rate is payable-- worker is the worker's pre-injury average required to weekly earnings are to be calculated undergo as if, at the time of the injury, the training, worker were being paid at the highest instruction or rate applicable to that age or stage. examination in (c) If (a) or (b) applies but there is no order to become rate applicable to a worker who has qualified to attained the age of 21 years, the carry on an worker's pre-injury average weekly occupation, earnings are the maximum weekly and who, but for the compensation amount. injury, would have been entitled to increments in earnings at certain ages or stages during the course of employment to become qualified. Page 26 Workers Compensation Legislation Amendment Bill 2012 Amendments relating to weekly payments of compensation Schedule 1 Column 1 Column 2 Column 3 Item Class of worker at Calculation of pre-injury average time of injury weekly earnings 2 Worker employed by 2 The worker's pre-injury average weekly or more employers and earnings are to be calculated in accordance who works for one of with Division 2 of Part 3 with reference to those employers for at the work for the employer for whom the least the ordinary hours worker works for at least the ordinary hours fixed in any applicable fixed in the fair work instrument. fair work instrument. 3 Worker employed by 2 The worker's pre-injury average weekly or more employers who earnings are to be calculated in accordance works for one of those with Division 2 of Part 3 with reference to employers for at least the work for the employer for whom the the prescribed number worker works for at least the prescribed of hours each week and number of hours. to whom no fair work instrument is applicable. 4 Worker employed by 2 The worker's pre-injury average weekly or more employers for earnings are to be calculated in accordance at least the ordinary with Division 2 of Part 3 with reference to hours fixed in any the work which yields the higher weekly applicable fair work ordinary earnings. instrument. 5 Worker employed by 2 The worker's pre-injury average weekly or more employers who earnings are to be calculated in accordance works for one of those with Division 2 of Part 3 with reference to employers for at least the work which yields the higher weekly the ordinary hours fixed ordinary earnings. in an applicable fair work instrument and works for another of those employers for at least the prescribed number of hours each week. 6 Worker employed by 2 The worker's pre-injury average weekly or more employers for earnings are to be calculated in accordance at least the prescribed with Division 2 of Part 3 with reference to number of hours each the work which yields the higher weekly week and to whom no ordinary earnings. fair work instrument is applicable. Page 27 Workers Compensation Legislation Amendment Bill 2012 Schedule 1 Amendments relating to weekly payments of compensation Column 1 Column 2 Column 3 Item Class of worker at Calculation of pre-injury average time of injury weekly earnings 7 Worker employed by 2 The worker's pre-injury average weekly or more employers who earnings are to be calculated in accordance sustains an injury that with Division 2 of Part 3 with reference to results in an incapacity earnings from work with all the employers. to work for one or more of those employers but not for all those employers. 8 Worker employed by 2 The worker's pre-injury average weekly or more employers in earnings are the worker's average ordinary circumstances other earnings expressed as an amount per hour than those described in for all work carried out by the worker for all the preceding employers multiplied by: provisions of this (a) the prescribed number of hours per Schedule. week, or (b) the total of the worker's ordinary hours per week, whichever is the lesser. 9 Worker who, during the The worker's pre-injury average weekly period of 52 weeks earnings are to be calculated in accordance immediately before the with Division 2 of Part 3 with reference to injury, receives advice the amount that is the average of the in writing from the earnings expressed as a weekly sum that the employer that the worker could reasonably be expected to worker is to be have earned after the promotion or promoted or otherwise appointment had taken effect as if the appointed to a new promotion or appointment had taken effect position (otherwise than 52 weeks before the injury. on a temporary basis) with the effect that the worker's ordinary earnings will be increased but has not been so promoted or appointed. Page 28 Workers Compensation Legislation Amendment Bill 2012 Amendments relating to weekly payments of compensation Schedule 1 1.2 Amendment of Workplace Injury Management and Workers 1 Compensation Act 1998 No 86 2 [1] Chapter 3, Part 1, heading 3 Insert before section 41: 4 Part 1 Preliminary 5 [2] Section 42 Definitions 6 Insert at the end of the definition of injury management plan: 7 An injury management plan can provide for the treatment, 8 rehabilitation and retraining to be given or provided to the injured 9 worker. 10 [3] Chapter 3, Part 2, heading 11 Insert before section 42A: 12 Part 2 Obligations of insurers, employers and 13 workers 14 [4] Sections 48 and 48A 15 Omit section 48. Insert instead: 16 48 Return to work obligations of worker 17 (1) A worker who has current work capacity must, in co-operation 18 with the employer or insurer, make reasonable efforts to return to 19 work in suitable employment or pre-injury employment at the 20 worker's place of employment or at another place of 21 employment. 22 (2) For the purposes of this section, a worker is to be treated as 23 making a reasonable effort to return to work in suitable 24 employment or pre-injury employment during any reasonable 25 period in which: 26 (a) the worker is waiting for the commencement of a 27 workplace rehabilitation service that is required to be 28 provided under an injury management plan for the worker, 29 or 30 (b) the worker is waiting for a response to a request for 31 suitable employment or pre-injury employment made by 32 the worker and received by the employer, or 33 Page 29 Workers Compensation Legislation Amendment Bill 2012 Schedule 1 Amendments relating to weekly payments of compensation (c) if the employer's response is that suitable employment or 1 pre-injury employment will be provided at some time, the 2 worker is waiting for suitable employment or pre-injury 3 employment to commence. 4 48A Failure to comply with return to work obligations of worker 5 (1) If a worker does not comply with an obligation of the worker 6 imposed under section 48, the insurer may in accordance with 7 this section: 8 (a) suspend the payment of compensation in the form of 9 weekly payments to the worker, or 10 (b) terminate the payment of compensation in the form of 11 weekly payments to the worker, or 12 (c) cease and determine the entitlement of the worker to 13 compensation in the form of weekly payments in respect of 14 the injury under this Act. 15 (2) If the insurer seeks to suspend payments of compensation under 16 subsection (1) (a), the insurer must give written notice to the 17 worker stating: 18 (a) the reason for the giving of the notice, and 19 (b) that unless the worker complies with the obligation under 20 section 48 specified in the notice, weekly payments to the 21 worker will be suspended from the date specified in the 22 notice which must be a date at least 14 days after notice is 23 given but no more than 60 days after notice is given, and 24 (c) the consequences of failing to comply as specified in the 25 notice. 26 (3) If the worker fails to comply with a written notice under 27 subsection (2), the insurer may suspend the payment of weekly 28 payments to the worker for a period of 28 days after the date 29 specified in the notice referred to in subsection (2) (b). 30 (4) If the worker complies with the obligation specified in the notice 31 under subsection (2) during the period that weekly payments are 32 suspended under subsection (3), the insurer must, subject to and 33 in accordance with this Act, resume the payment of weekly 34 payments with effect from the date on which the worker 35 complied with the obligation. 36 (5) If subsection (4) applies, the worker forfeits any compensation in 37 the form of weekly payments that would otherwise have been 38 made during the period of suspension until the worker complied 39 with the obligation and that period is included in determining the 40 Page 30 Workers Compensation Legislation Amendment Bill 2012 Amendments relating to weekly payments of compensation Schedule 1 first or second entitlement period under Division 2 of Part 3 of the 1 1987 Act. 2 (6) If the worker does not comply with the obligation specified in the 3 notice under subsection (2) for the entire period that weekly 4 payments are suspended under subsection (3), the insurer may 5 terminate the payment of compensation in the form of weekly 6 payments to the worker in respect of the injury by written notice 7 stating the reasons for giving the notice. 8 (7) If the worker: 9 (a) does not comply with the obligation specified in the notice 10 under subsection (2) for the entire period that weekly 11 payments are suspended under subsection (3), and 12 (b) has within the last 12 months prior to the giving of the 13 notice referred to in paragraph (a): 14 (i) been issued 2 notices under subsection (2) without a 15 subsequent suspension of weekly payments, or 16 (ii) had compensation in the form of weekly payments 17 suspended once under subsection (3), 18 the insurer may cease and determine the entitlement to 19 compensation in the form of weekly payments in respect of the 20 injury to the worker under this Act by written notice stating the 21 reasons for giving the notice. 22 [5] Section 49 Employer must provide suitable work 23 Insert at the end of section 49 (1): 24 Maximum penalty: 50 penalty units. 25 [6] Section 57 Compliance by worker 26 Omit the section. 27 [7] Chapter 3, Part 3 28 Insert after section 59: 29 Part 3 Employer improvement notices 30 59A Authorisation of inspectors 31 In this Part: 32 inspector means a member of staff who is an inspector for the 33 purposes of section 238 (Powers of entry and inspection by 34 officers of Authority). 35 Page 31 Workers Compensation Legislation Amendment Bill 2012 Schedule 1 Amendments relating to weekly payments of compensation 59B Issue of improvement notices 1 (1) This section applies if an inspector reasonably believes that an 2 employer: 3 (a) is contravening a provision of this Chapter, or 4 (b) has contravened a provision of this Chapter in 5 circumstances that make it likely that the contravention 6 will continue or be repeated. 7 (2) The inspector may issue an improvement notice requiring the 8 employer to: 9 (a) remedy the contravention, or 10 (b) prevent a likely contravention from occurring, or 11 (c) remedy the things or operations causing the contravention 12 or likely contravention. 13 59C Contents of improvement notices 14 (1) An improvement notice must state: 15 (a) that the inspector believes the employer: 16 (i) is contravening a provision of this Chapter, or 17 (ii) has contravened a provision in circumstances that 18 make it likely that the contravention will continue or 19 be repeated, and 20 (b) the provision the inspector believes is being, or has been, 21 contravened, and 22 (c) briefly, how the provision is being, or has been, 23 contravened, and 24 (d) the day by which the person is required to remedy the 25 contravention or likely contravention. 26 (2) An improvement notice may include directions concerning the 27 measures to be taken to remedy the contravention or prevent the 28 likely contravention, or the matters or activities causing the 29 contravention or likely contravention, to which the notice relates. 30 (3) The day stated for compliance with the improvement notice must 31 be reasonable in all the circumstances. 32 59D Compliance with improvement notice 33 The person to whom an improvement notice is issued must 34 comply with the notice within the period specified in the notice. 35 Maximum penalty: 100 penalty units. 36 Page 32 Workers Compensation Legislation Amendment Bill 2012 Amendments relating to weekly payments of compensation Schedule 1 59E Extension of time for compliance with improvement notices 1 (1) An inspector may, by written notice given to the person, extend 2 the compliance period for an improvement notice issued under 3 this Part. 4 (2) However, the inspector may extend the compliance period only if 5 the period has not ended. 6 (3) In this section: 7 compliance period means the period stated in the improvement 8 notice, and includes that period as extended under this section. 9 [8] Section 105 Jurisdiction of Commission and Compensation Court 10 Insert at the end of section 105 (1): 11 Note. The Commission does not have jurisdiction to determine any 12 dispute about a work capacity decision of an insurer and is not to make 13 a decision in respect of a dispute before the Commission that is 14 inconsistent with a work capacity decision of an insurer. See section 43 15 of the 1987 Act. 16 [9] Section 270 Obligations of worker to provide authorisations and medical 17 evidence 18 Insert at the end of the section: 19 Note. This section does not limit the obligations of a worker under 20 section 44B (Evidence as to work capacity) of the 1987 Act. 21 [10] Section 297 Directions for interim payment of weekly payments or 22 medical expenses compensation 23 Insert after section 297 (1): 24 (1A) An interim payment direction is not to be made when the dispute 25 concerns a decision by the insurer to discontinue or reduce 26 weekly payments of compensation on the basis of a work 27 capacity decision under Division 2 of Part 3 of the 1987 Act. 28 Page 33 Workers Compensation Legislation Amendment Bill 2012 Schedule 2 Amendments relating to lump sum compensation Schedule 2 Amendments relating to lump sum 1 compensation 2 2.1 Amendment of Workers Compensation Act 1987 No 70 3 [1] Section 65 Determination of degree of permanent impairment 4 Omit "or pain and suffering compensation" from section 65 (3). 5 [2] Section 65A Special provisions for psychological and psychiatric injury 6 Omit "(either as permanent impairment compensation or pain and suffering 7 compensation)" from section 65A (1). 8 [3] Section 65A (1), note 9 Omit the note. 10 [4] Section 65A (3) 11 Omit "(either as permanent impairment compensation or pain and suffering 12 compensation)". 13 [5] Section 66 Entitlement to compensation for permanent impairment 14 Omit section 66 (1). Insert instead: 15 (1) A worker who receives an injury that results in a degree of 16 permanent impairment greater than 10% is entitled to receive 17 from the worker's employer compensation for that permanent 18 impairment as provided by this section. Permanent impairment 19 compensation is in addition to any other compensation under this 20 Act. 21 Note. No permanent impairment compensation is payable for a degree 22 of permanent impairment of 10% or less. 23 (1A) Only one claim can be made under this Act for permanent 24 impairment compensation in respect of the permanent 25 impairment that results from an injury. 26 [6] Section 66 (2) (a) 27 Omit the paragraph. 28 [7] Section 66 (2A) 29 Omit Example 1. Insert instead: 30 Example 1. A person suffers 12% permanent impairment. Under 31 subsection (2), the amount of permanent impairment compensation to 32 which he or she is entitled is $17,050 ($13,750 + [2 × $1,650]). If the 33 Page 34 Workers Compensation Legislation Amendment Bill 2012 Amendments relating to lump sum compensation Schedule 2 whole of the impairment is to the back, the compensation payable in 1 relation to the back will be the whole $17,050. Under this subsection, that 2 $17,050 will be increased by 5%, yielding $17,902.50. 3 [8] Section 66A Agreements for compensation 4 Omit section 66A (1) (a). Insert instead: 5 (a) under which a worker who has received an injury, and an 6 employer or insurer, agree as to the degree of permanent 7 impairment that has resulted from the injury, and 8 [9] Section 66A (1) (b) 9 Omit the paragraph. Insert instead: 10 (b) in which there is a provision in which the employer or 11 insurer certifies that it is satisfied that the worker has 12 obtained independent legal advice, or has waived the right 13 to obtain independent legal advice, before entering into the 14 agreement. 15 [10] Section 66A (2) 16 Omit the subsection. Insert instead: 17 (2) If a worker enters into a complying agreement in relation to an 18 injury, the permanent impairment compensation to which the 19 worker is entitled in respect of the injury is the compensation 20 payable in respect of the degree of impairment so agreed. 21 [11] Section 66A (3) (a) 22 Omit "or the amount of pain and suffering compensation". 23 [12] Section 66B No proceedings to enter up award on agreement for 24 compensation 25 Omit "or pain and suffering compensation" from section 66B (1). 26 [13] Section 67 Compensation for pain and suffering 27 Omit the section. 28 [14] Section 67A Special provisions for HIV/AIDS 29 Omit section 67A (1). 30 [15] Section 67A (4) 31 Omit "and pain and suffering compensation are". Insert instead "is". 32 Page 35 Workers Compensation Legislation Amendment Bill 2012 Schedule 2 Amendments relating to lump sum compensation [16] Sections 69A and 69B 1 Omit the sections. 2 [17] Section 87EA Preconditions to commutation 3 Omit "and pain and suffering compensation" from section 87EA (1) (b). 4 2.2 Amendment of Workplace Injury Management and Workers 5 Compensation Act 1998 No 86 6 [1] Section 263 Lump sum compensation claims to be made at same time 7 Omit "or pain and suffering compensation" from section 263 (1). 8 [2] Section 280B Lump sum compensation to be paid before damages 9 recovered 10 Omit "and pain and suffering compensation" wherever occurring. 11 [3] Section 314 What constitutes threshold dispute 12 Insert after section 314 (2): 13 (3) For the purposes of this Part, acceptance by the person on whom 14 a claim for work injury damages is made of the degree of 15 permanent impairment of the injured worker for the purposes of 16 a claim against the person by the injured worker for permanent 17 impairment compensation also constitutes acceptance of the 18 degree of permanent impairment for the purposes of the claim for 19 work injury damages. 20 [4] Section 322A 21 Insert after section 322: 22 322A One assessment only of degree of permanent impairment 23 (1) Only one assessment may be made of the degree of permanent 24 impairment of an injured worker. 25 (2) The medical assessment certificate that is given in connection 26 with that assessment is the only medical assessment certificate 27 that can be used in connection with any further or subsequent 28 medical dispute about the degree of permanent impairment of the 29 worker as a result of the injury concerned (whether the 30 subsequent or further dispute is in connection with a claim for 31 permanent impairment compensation, the commutation of a 32 liability for compensation or a claim for work injury damages). 33 Page 36 Workers Compensation Legislation Amendment Bill 2012 Amendments relating to lump sum compensation Schedule 2 (3) Accordingly, a medical dispute about the degree of permanent 1 impairment of a worker as a result of an injury cannot be referred 2 for, or be the subject of, assessment if a medical dispute about 3 that matter has already been the subject of assessment and a 4 medical assessment certificate under this Part. 5 (4) This section does not affect the operation of section 327 (Appeal 6 against medical assessment). 7 2.3 Amendment of Civil Liability Act 2002 No 22 8 Section 26I Non-economic loss damages limited to workers 9 compensation amount 10 Omit section 26I (2). Insert instead: 11 (2) When determining the total amount to which a worker would be 12 entitled as compensation under a provision of the Workers 13 Compensation Act 1987, the amount is to be determined under 14 the provision as it was in force when the injury to the offender 15 was received. 16 Page 37 Workers Compensation Legislation Amendment Bill 2012 Schedule 3 Amendments relating to damages for nervous shock Schedule 3 Amendments relating to damages for 1 nervous shock 2 Amendment of Workers Compensation Act 1987 No 70 3 [1] Section 151P Damages for psychological or psychiatric injury 4 Omit the section. 5 [2] Section 151AD 6 Insert after section 151AC: 7 151AD No damages for nervous shock injury to non-workers 8 (1) No damages for pure mental harm may be awarded against an 9 employer liable to pay compensation under this Act in respect of 10 the death of or injury to a worker if the pure mental harm arises 11 wholly or partly from mental or nervous shock in connection with 12 the death of or injury to the worker unless the pure mental harm 13 is a work injury (that is, an injury to the worker or to another 14 worker). 15 Note. This section prevents a claim for damages for nervous shock 16 when the nervous shock is not a work injury. It prevents claims for 17 damages by relatives of an injured or deceased worker because their 18 injuries are not work injuries. 19 (2) In this section, pure mental harm has the same meaning as in 20 Part 3 of the Civil Liability Act 2002. 21 Page 38 Workers Compensation Legislation Amendment Bill 2012 Amendments relating to medical and related expenses Schedule 4 Schedule 4 Amendments relating to medical and 1 related expenses 2 Amendment of Workers Compensation Act 1987 No 70 3 [1] Section 59A 4 Insert after section 59: 5 59A Limit on payment of compensation 6 (1) Compensation is not payable to an injured worker under this 7 Division in respect of any treatment, service or assistance given 8 or provided more than 12 months after a claim for compensation 9 in respect of the injury was first made, unless weekly payments 10 of compensation are or have been paid or payable to the worker. 11 (2) If weekly payments of compensation are or have been paid or 12 payable to the worker, compensation is not payable under this 13 Division in respect of any treatment, service or assistance given 14 or provided more than 12 months after the worker ceased to be 15 entitled to weekly payments of compensation. 16 (3) If a worker becomes entitled to weekly payments of 17 compensation after ceasing to be entitled to compensation under 18 this Division, the worker is once again entitled to compensation 19 under this Division but only in respect of any treatment, service 20 or assistance given or provided during a period in respect of 21 which weekly payments are payable to the worker. 22 (4) This section does not apply to a seriously injured worker (as 23 defined in Division 2). 24 [2] Section 60 Compensation for cost of medical or hospital treatment and 25 rehabilitation etc 26 Insert after section 60 (2): 27 (2A) The worker's employer is not liable under this section to pay the 28 cost of any treatment or service (or related travel expenses) if: 29 (a) the treatment or service is given or provided without the 30 prior approval of the insurer (not including treatment 31 provided within 48 hours of the injury happening and not 32 including treatment or service that is exempt under the 33 WorkCover Guidelines from the requirement for prior 34 insurer approval), or 35 Page 39 Workers Compensation Legislation Amendment Bill 2012 Schedule 4 Amendments relating to medical and related expenses (b) the treatment or service is given or provided by a person 1 who is not appropriately qualified to give or provide the 2 treatment or service, or 3 (c) the treatment or service is not given or provided in 4 accordance with any conditions imposed by the 5 WorkCover Guidelines on the giving or providing of the 6 treatment or service, or 7 (d) the treatment is given or provided by a health practitioner 8 whose registration as a health practitioner under any 9 relevant law is limited or subject to any condition imposed 10 as a result of a disciplinary process, or who is suspended or 11 disqualified from practice. 12 (2B) The worker's employer is not liable under this section to pay 13 travel expenses related to any treatment or service if the treatment 14 or service is given or provided at a location that necessitates more 15 travel than is reasonably necessary to obtain the treatment or 16 service. 17 (2C) The WorkCover Guidelines may make provision for or with 18 respect to the following: 19 (a) establishing rules to be applied in determining whether it 20 is reasonably necessary for a treatment or service to be 21 given or provided, 22 (b) limiting the kinds of treatment and service (and related 23 travel expenses) that an employer is liable to pay the cost 24 of under this section, 25 (c) limiting the amount for which an employer is liable to pay 26 under this section for any particular treatment or service, 27 (d) establishing standard treatment plans for the treatment of 28 particular injuries or classes of injury, 29 (e) specifying the qualifications or experience that a person 30 requires to be appropriately qualified for the purposes of 31 this section to give or provide a treatment or service to an 32 injured worker (including by providing that a person is not 33 appropriately qualified unless approved or accredited by 34 the Authority). 35 [3] Section 61 Rates applicable for medical or related treatment 36 Omit "and the customary charge made in the community for the treatment to 37 persons other than workers" from section 61 (1). 38 Page 40 Workers Compensation Legislation Amendment Bill 2012 Amendments relating to medical and related expenses Schedule 4 [4] Section 61 (2A) 1 Insert after section 61 (2): 2 (2A) An order under subsection (2) may provide for the maximum 3 amount fixed in respect of any particular medical or related 4 treatment to vary by reference to different factors of a specified 5 kind (for example, a higher maximum amount could be fixed for 6 a treatment when provided by a provider accredited by the 7 Authority). 8 [5] Section 63A Rates applicable for workplace rehabilitation services 9 Insert after section 63A (2): 10 (2A) An order under subsection (2) may provide for the maximum 11 amount fixed in respect of any particular service to vary by 12 reference to different factors of a specified kind (for example, a 13 higher maximum amount could be fixed for a service when 14 provided by a provider approved or accredited by the Authority). 15 Page 41 Workers Compensation Legislation Amendment Bill 2012 Schedule 5 Amendments relating to journey claims Schedule 5 Amendments relating to journey claims 1 Amendment of Workers Compensation Act 1987 No 70 2 [1] Section 10 Journey claims 3 Omit section 10 (3) (a). 4 [2] Section 10 (3) (b) 5 Omit "place of abode, or place of employment,". 6 Insert instead "place of employment". 7 [3] Section 10 (3) (e)-(g) 8 Omit the paragraphs. 9 [4] Section 10 (5) 10 Omit the subsection. 11 Page 42 Workers Compensation Legislation Amendment Bill 2012 Amendments relating to heart attack and stroke Schedule 6 Schedule 6 Amendments relating to heart attack and 1 stroke 2 Amendment of Workers Compensation Act 1987 No 70 3 Section 9B 4 Insert after section 9A: 5 9B No compensation for heart attack or stroke unless nature of 6 employment results in significantly greater risk 7 (1) No compensation is payable under this Act in respect of an injury 8 that consists of, is caused by, results in or is associated with a 9 heart attack injury or stroke injury unless the nature of the 10 employment concerned gave rise to a significantly greater risk of 11 the worker suffering the injury than had the worker not been 12 employed in employment of that nature. 13 (2) In this section: 14 heart attack injury means an injury to the heart, or any blood 15 vessel supplying or associated with the heart, that consists of, is 16 caused by, results in or is associated with: 17 (a) any heart attack, or 18 (b) any myocardial infarction, or 19 (c) any myocardial ischaemia, or 20 (d) any angina, whether unstable or otherwise, or 21 (e) any fibrillation, whether atrial or ventricular or otherwise, 22 or 23 (f) any arrhythmia of the heart, or 24 (g) any tachycardia, whether ventricular, supra ventricular or 25 otherwise, or 26 (h) any harm or damage to such a blood vessel or to any 27 associated plaque, or 28 (i) any impairment, disturbance or alteration of blood, or 29 blood circulation, within such a blood vessel, or 30 (j) any occlusion of such a blood vessel, whether the 31 occlusion is total or partial, or 32 (k) any rupture of such a blood vessel, including any rupture 33 of an aneurism of such a blood vessel, or 34 (l) any haemorrhage from such a blood vessel, or 35 (m) any aortic dissection, or 36 Page 43 Workers Compensation Legislation Amendment Bill 2012 Schedule 6 Amendments relating to heart attack and stroke (n) any consequential physical harm or damage, including 1 harm or damage to the brain, or 2 (o) any consequential mental harm or damage. 3 stroke injury means an injury to the brain, or any of the blood 4 vessels supplying or associated with the brain, that consists of, is 5 caused by, results in or is associated with: 6 (a) any stroke, or 7 (b) any cerebral infarction, or 8 (c) any cerebral ischaemia, or 9 (d) any rupture of such a blood vessel, including any rupture 10 of an aneurism of such a blood vessel, or 11 (e) any subarachnoid haemorrhage, or 12 (f) any haemorrhage from such a blood vessel, or 13 (g) any harm or damage to such a blood vessel or to any 14 associated plaque, or 15 (h) any impairment, disturbance or alteration of blood, or 16 blood circulation, within such a blood vessel, or 17 (i) any occlusion of such a blood vessel, whether the 18 occlusion is total or partial, or 19 (j) any consequential physical harm or damage, including 20 neurological harm or damage, or 21 (k) any consequential mental harm or damage. 22 Page 44 Workers Compensation Legislation Amendment Bill 2012 Amendments relating to disease injuries Schedule 7 Schedule 7 Amendments relating to disease injuries 1 Amendment of Workers Compensation Act 1987 No 70 2 [1] Section 4 Definition of "injury" 3 Omit paragraph (b) of the definition of injury. Insert instead: 4 (b) includes a disease injury, which means: 5 (i) a disease that is contracted by a worker in the course 6 of employment but only if the employment was the 7 main contributing factor to contracting the disease, 8 and 9 (ii) the aggravation, acceleration, exacerbation or 10 deterioration in the course of employment of any 11 disease, but only if the employment was the main 12 contributing factor to the aggravation, acceleration, 13 exacerbation or deterioration of the disease, and 14 [2] Section 9A No compensation payable unless employment substantial 15 contributing factor to injury 16 Insert "(other than a disease injury)" after "an injury" in section 9A (1). 17 [3] Section 9A (1) 18 Insert at the end of the subsection: 19 Note. In the case of a disease injury, the worker's employment must be 20 the main contributing factor. See section 4. 21 Page 45 Workers Compensation Legislation Amendment Bill 2012 Schedule 8 Amendments relating to commutation of compensation Schedule 8 Amendments relating to commutation of 1 compensation 2 Amendment of Workers Compensation Act 1987 No 70 3 [1] Section 87EA Preconditions to commutation 4 Insert after section 87EA (1): 5 (1A) Despite subsection (1), a liability in respect of an injury may be 6 commuted to a lump sum under this Division in a particular case 7 if the Authority is satisfied and certifies to the effect that: 8 (a) the case is of a class that is prescribed by the regulations as 9 a class to which this subsection applies, and 10 (b) the circumstances of the case satisfy any requirements 11 prescribed by the regulations as requirements that must be 12 satisfied for the purposes of this subsection, and 13 (c) unless the regulations otherwise provide, the lump sum to 14 which the liability will be commuted is not inadequate and 15 not excessive. 16 (1B) In considering whether the lump sum to which a liability will be 17 commuted is not inadequate and not excessive, the Authority 18 may have regard to the following matters: 19 (a) any dispute as to liability to pay compensation under the 20 Workers Compensation Acts, 21 (b) the injury, the age of the worker, the general health of the 22 worker, and the occupation of the worker at the time of the 23 occurrence of the injury, 24 (c) the worker's diminished ability to compete in an open 25 labour market, 26 (d) other benefits that the worker may be entitled to from any 27 other source. 28 [2] Section 87EA (6) 29 Insert after section 87EA (5): 30 (6) The WorkCover Guidelines may make provision for the 31 procedure for applying for certification by the Authority under 32 subsection (1) or (1A) and the information and documents to be 33 provided in support of such an application. 34 Page 46 Workers Compensation Legislation Amendment Bill 2012 Amendments relating to commutation of compensation Schedule 8 [3] Section 87F Commutation by agreement 1 Insert after section 87F (2): 2 (2A) Compliance with subsection (2) is not required if the 3 commutation agreement contains a provision in which the 4 employer or insurer certifies that it is satisfied that the worker has 5 waived the right to obtain independent legal advice and 6 independent financial advice before entering into the agreement. 7 [4] Section 87H Registration of commutation agreements 8 Omit section 87H (2). Insert instead: 9 (2) The Registrar must refuse to register a commutation agreement 10 unless satisfied that the Authority has certified as provided by 11 section 87EA (1) or (1A) in respect of the agreement. 12 Page 47 Workers Compensation Legislation Amendment Bill 2012 Schedule 9 Amendments relating to insurer licensing and transfer of claims Schedule 9 Amendments relating to insurer 1 licensing and transfer of claims 2 9.1 Amendment of Workers Compensation Act 1987 No 70 3 [1] Section 154E Assets of Insurance Fund 4 Insert "other than a claim transferred pursuant to a claims transfer agreement 5 under Division 6" after "Nominal Insurer" in section 154E (2) (a). 6 [2] Section 154E (2) (j1) 7 Insert after section 154E (2) (j): 8 (j1) the transfer of assets of the Insurance Fund to a claim agent 9 pursuant to a claims transfer agreement under Division 6, 10 [3] Section 176 Licences to be re-granted only to existing licence holders 11 Omit the section. 12 [4] Section 208 Contributions by licensed insurers to Insurance Fund 13 Omit "specialised insurer" wherever occurring. 14 Insert instead "licensed insurer". 15 [5] Part 7, Division 6 16 Insert after Division 5 of Part 7: 17 Division 6 Transfer of claims 18 217 Definition 19 In this Division: 20 transferred claim means a claim that is the subject of a claims 21 transfer agreement under this Division. 22 218 Agreements for transfer of claims to insurers 23 (1) The Authority may enter into an agreement (a claims transfer 24 agreement) with a corporation for the transfer to the corporation 25 of the liabilities of the Nominal Insurer in respect of a claim under 26 a policy of insurance for which the Nominal Insurer is the insurer. 27 (2) A claims transfer agreement can relate to particular claims or 28 classes of claims. 29 Page 48 Workers Compensation Legislation Amendment Bill 2012 Amendments relating to insurer licensing and transfer of claims Schedule 9 (3) A claims transfer agreement entered into with a corporation may 1 include provision for the following: 2 (a) the transfer to the corporation of any assets of the 3 Insurance Fund in connection with the liabilities 4 transferred by the agreement, 5 (b) requirements for the giving of notice to the person who is 6 the employer in respect of a transferred claim. 7 219 Effect of claims transfer agreement 8 (1) A claims transfer agreement operates to transfer to the 9 corporation concerned (the claim agent) the rights and liabilities 10 of the Nominal Insurer in connection with a transferred claim, 11 and for that purpose the following transitional arrangements 12 have effect: 13 (a) a transferred claim is deemed to have been made against 14 the claim agent, 15 (b) any act, matter or thing done or omitted to be done by the 16 Nominal Insurer in connection with a transferred claim 17 before the transfer is taken to have been done or omitted by 18 the claim agent, 19 (c) the Nominal Insurer ceases to be the insurer in respect of 20 the policy of insurance to which the transferred claim 21 relates, but only for the purposes of the rights, obligations 22 and liabilities of the insurer in connection with the 23 transferred claim, 24 (d) the claim agent is deemed to be the insurer in respect of the 25 policy of insurance to which the transferred claim relates, 26 but only for the purposes of the rights, obligations and 27 liabilities of the insurer in connection with the transferred 28 claim, 29 (e) if the claim agent is not a licensed insurer, the claim agent 30 is deemed to be a licensed insurer in respect of the policy 31 of insurance to which the transferred claim relates, 32 (f) any proceedings commenced by or against the Nominal 33 Insurer in connection with a transferred claim and pending 34 immediately before the transfer are deemed to be 35 proceedings by or against the claim agent, 36 (g) all records that are the property of the Nominal Insurer and 37 that relate to a transferred claim (or a judgment or award 38 made in respect of a transferred claim) become the 39 property of and are to be transferred to the claim agent. 40 Page 49 Workers Compensation Legislation Amendment Bill 2012 Schedule 9 Amendments relating to insurer licensing and transfer of claims (2) The transitional arrangements are subject to the terms of the 1 claims transfer agreement. 2 (3) The regulations may make provision for or with respect to the 3 entering into and operation of claims transfer agreements, 4 including by prescribing additional transitional arrangements for 5 the operation of claims transfer agreements. 6 220 Conditions of claims transfer agreement 7 (1) A claims transfer agreement is subject to the following 8 conditions: 9 (a) such conditions as may be included in the agreement, 10 (b) such conditions as the Authority may from time to time 11 notify to the claim agent during the currency of the 12 agreement, 13 (c) any conditions prescribed by the regulations. 14 (2) A condition of a claims transfer agreement also operates as a 15 condition of the insurer's licence (or the insurer's licence that the 16 claim agent is deemed to hold in respect of a policy of insurance 17 to which a transferred claim relates). 18 (3) A corporation that is a party to a claims transfer agreement must 19 comply with any conditions to which the claims transfer 20 agreement is subject. 21 Maximum penalty: 100 penalty units. 22 [6] Schedule 6 Savings, transitional and other provisions 23 Omit clause 2 (Licensing of insurers) of Part 19A. 24 9.2 Amendment of Workplace Injury Management and Workers 25 Compensation Act 1998 No 86 26 [1] Section 35 Payments into and from Fund 27 Omit "and self-insurers" from section 35 (1) (a). 28 Insert instead ", self-insurers and deemed insurers". 29 [2] Section 37 Definitions 30 Insert in alphabetical order: 31 deemed insurer means a corporation (other than a licensed 32 insurer) that is a party to a claims transfer agreement under 33 Division 6 (Transfer of claims) of Part 7 of the 1987 Act. 34 Page 50 Workers Compensation Legislation Amendment Bill 2012 Amendments relating to insurer licensing and transfer of claims Schedule 9 [3] Section 38 Assessment by Authority of amount to be contributed to 1 Fund 2 Omit "specialised insurers, self-insurers" from section 38 (c). 3 Insert instead "insurers, deemed insurers". 4 [4] Section 38 (d) 5 Omit "specialised insurers, self-insurers". 6 Insert instead "insurers, deemed insurers". 7 [5] Section 38 (e) 8 Omit "specialised insurers, self-insurers". 9 Insert instead "insurers, deemed insurers". 10 [6] Section 39 Contributions to Fund by insurers and self-insurers 11 Omit "Each specialised insurer" from section 39 (1). 12 Insert instead "Each insurer, deemed insurer". 13 [7] Section 39 (2) and (5) 14 Omit "a specialised insurer" wherever occurring. Insert instead "an insurer". 15 [8] Section 39 (2) and (5) 16 Omit "the specialised insurer" wherever occurring. 17 Insert instead "the insurer". 18 [9] Section 39 (3A) 19 Insert after section 39 (3): 20 (3A) The contribution to be paid by a deemed insurer, in respect of 21 each financial year (being a financial year during the whole or 22 part of which the person was a deemed insurer), is an amount 23 determined by the Authority in accordance with the regulations. 24 [10] Section 39 (4) 25 Omit "by specialised insurers" and "all specialised insurers". 26 Insert instead "by insurers" and "all insurers" respectively. 27 [11] Section 39 (6) 28 Insert "or deemed insurer" after "self-insurer" wherever occurring. 29 Page 51 Workers Compensation Legislation Amendment Bill 2012 Schedule 9 Amendments relating to insurer licensing and transfer of claims [12] Section 39 (6B) 1 Omit "by specialised insurers". Insert instead "by insurers". 2 [13] Section 39 (7) 3 Omit "a specialised insurer or a self-insurer". 4 Insert instead "an insurer or deemed insurer". 5 [14] Section 39 (7) (a) 6 Omit "the specialised insurer or self-insurer". 7 Insert instead "the insurer or deemed insurer". 8 [15] Section 39 (9) 9 Omit "a specialised insurer or self-insurer". 10 Insert instead "an insurer, self-insurer or deemed insurer". 11 [16] Section 39 (10) 12 Insert "or deemed insurer" after "self-insurer" wherever occurring. 13 Page 52 Workers Compensation Legislation Amendment Bill 2012 Amendments relating to WorkCover Independent Review Officer Schedule 10 Schedule 10 Amendments relating to WorkCover 1 Independent Review Officer 2 10.1 Amendment of Workplace Injury Management and Workers 3 Compensation Act 1998 No 86 4 [1] Section 4 Definitions 5 Insert in alphabetical order in section 4 (1): 6 Independent Review Officer means the WorkCover Independent 7 Review Officer appointed under Part 3 of Chapter 2. 8 [2] Chapter 2, Part 3 9 Insert after Part 2 of Chapter 2: 10 Part 3 WorkCover Independent Review Officer 11 Division 1 Administrative arrangements 12 24 Appointment of Independent Review Officer 13 (1) The Governor may appoint a WorkCover Independent Review 14 Officer. 15 (2) The Independent Review Officer holds office for such term not 16 exceeding 5 years as may be specified in the instrument of 17 appointment, but is eligible (if otherwise qualified) for 18 re-appointment. 19 (3) The office of Independent Review Officer is a full-time office 20 and the holder of the office is required to hold it on that basis, 21 except to the extent permitted by the Governor. 22 (4) The Independent Review Officer is entitled to be paid: 23 (a) remuneration in accordance with the Statutory and Other 24 Offices Remuneration Act 1975, and 25 (b) such travelling and subsistence allowances as the Minister 26 may from time to time determine. 27 (5) The Public Sector Employment and Management Act 2002 does 28 not apply to the appointment of the Independent Review Officer, 29 and the holder of that office is not, as holder, subject to that Act. 30 (6) The staff of the Independent Review Officer are to be employed 31 under Chapter 1A of the Public Sector Employment and 32 Management Act 2002. 33 Page 53 Workers Compensation Legislation Amendment Bill 2012 Schedule 10 Amendments relating to WorkCover Independent Review Officer 25 Vacancy in office 1 (1) The office of Independent Review Officer becomes vacant if the 2 holder: 3 (a) dies, or 4 (b) completes a term of office and is not re-appointed, or 5 (c) resigns the office by instrument in writing addressed to the 6 Governor, or 7 (d) becomes bankrupt, applies to take the benefit of any law 8 for the relief of bankrupt or insolvent debtors, compounds 9 with his or her creditors or makes an assignment of his or 10 her remuneration for their benefit, or 11 (e) becomes a mentally incapacitated person, or 12 (f) is convicted in New South Wales of an offence that is 13 punishable by imprisonment for 12 months or more or is 14 convicted elsewhere than in New South Wales of an 15 offence that, if committed in New South Wales, would be 16 an offence so punishable, or 17 (g) is removed from office under this section. 18 (2) The Governor may remove the Independent Review Officer from 19 office: 20 (a) for misbehaviour, or 21 (b) for incapacity, or 22 (c) if the Independent Review Officer is absent from duty for 23 a period in excess of his or her leave entitlement as 24 approved by the Governor unless the absence is caused by 25 illness or other unavoidable cause. 26 (3) If the office of Independent Review Officer becomes vacant, a 27 person is, subject to this Act, to be appointed to fill the vacancy. 28 26 Appointment of acting Independent Review Officer 29 (1) The Minister may, from time to time, appoint a person to act in 30 the office of the Independent Review Officer during the illness or 31 absence of the Independent Review Officer or during a vacancy 32 in the office of the Independent Review Officer. The person, 33 while so acting, has all the functions of the Independent Review 34 Officer and is taken to be the Independent Review Officer. 35 (2) The Minister may, at any time, remove a person from office as 36 acting Independent Review Officer. 37 Page 54 Workers Compensation Legislation Amendment Bill 2012 Amendments relating to WorkCover Independent Review Officer Schedule 10 (3) An acting Independent Review Officer is entitled to be paid such 1 remuneration (including travelling and subsistence allowances) 2 as the Minister may from time to time determine. 3 Division 2 Functions 4 27 Functions of Independent Review Officer 5 The Independent Review Officer has the following functions: 6 (a) to deal with complaints made to the Independent Review 7 Officer under this Division, 8 (b) to review work capacity decisions of insurers under 9 Division 2 (Weekly compensation by way of income 10 support) of Part 3 of the 1987 Act, 11 (c) to inquire into and report to the Minister on such matters 12 arising in connection with the operation of the Workers 13 Compensation Acts as the Independent Review Officer 14 considers appropriate or as may be referred to the 15 Independent Review Officer for inquiry and report by the 16 Minister, 17 (d) to encourage the establishment by insurers and employers 18 of complaint resolution processes for complaints arising 19 under the Workers Compensation Acts, 20 (e) such other functions as may be conferred on the 21 Independent Review Officer by or under the Workers 22 Compensation Acts or any other Act. 23 27A Complaints about insurers 24 (1) A worker may complain to the Independent Review Officer about 25 any act or omission (including any decision or failure to decide) 26 of an insurer that affects the entitlements, rights or obligations of 27 the worker under the Workers Compensation Acts. 28 (2) The Independent Review Officer deals with a complaint by 29 investigating the complaint and reporting to the worker and the 30 insurer on the findings of the investigation, including the reasons 31 for those findings. The Independent Review Officer's findings 32 can include non-binding recommendations for specified action to 33 be taken by the insurer or the worker. 34 (3) The Independent Review Officer is to deal with a complaint 35 within a period of 30 days after the complaint is made unless the 36 Independent Review Officer notifies the worker and the insurer 37 within that period that a specified longer period will be required 38 to deal with the complaint. 39 Page 55 Workers Compensation Legislation Amendment Bill 2012 Schedule 10 Amendments relating to WorkCover Independent Review Officer (4) The Independent Review Officer may decline to deal with a 1 complaint on the basis that it is frivolous or vexatious or should 2 not be dealt with for such other reason as the Independent Review 3 Officer considers relevant. 4 27B Requirement to provide information 5 (1) The Independent Review Officer may require an insurer or a 6 worker who has applied for review of a work capacity decision of 7 an insurer to provide specified information that the Independent 8 Review Officer reasonably requires for the purposes of the 9 exercise of any function of the Independent Review Officer. 10 (2) It is a condition of an insurer's licence that the insurer comply 11 with a request for the provision of information under this section. 12 (3) The Independent Review Officer can decline to deal with a 13 complaint if the worker who makes the complaint fails to comply 14 with a request to provide information to the Independent Review 15 Officer. 16 (4) The Authority must provide the Independent Review Officer 17 with such information as the Independent Review Officer 18 reasonably requires and requests for the purposes of the exercise 19 of any function of the Independent Review Officer. 20 27C Annual report 21 (1) As soon as practicable after 30 June (but before 31 December) in 22 each year, the Independent Review Officer is to prepare and 23 forward to the Minister a report on his or her activities for the 24 12 months ending on 30 June in that year. 25 (2) The report is to be tabled in Parliament and for that purpose the 26 Minister is to lay the report or cause it to be laid before both 27 Houses of Parliament as soon as practicable after receiving the 28 report. 29 (3) The Minister is to give the Authority and insurers an opportunity 30 to comment on the report before it is tabled in Parliament and 31 may include with the report when it is tabled a statement as to the 32 comments of the Authority and insurers. 33 (4) The report is to include the following information: 34 (a) the number and type of complaints made and dealt with 35 under this Division during the year, 36 (b) the sources of those complaints, 37 (c) the number and type of complaints that were made during 38 the year but not dealt with, 39 Page 56 Workers Compensation Legislation Amendment Bill 2012 Amendments relating to WorkCover Independent Review Officer Schedule 10 (d) information on the operation of the process for review of 1 work capacity decisions of insurers during the year and 2 any recommendations for legislative or other 3 improvements to that process, 4 (e) such other information as the Independent Review Officer 5 considers appropriate to be included or as the Minister 6 directs to be included. 7 (5) Matters included in a report must not identify individual workers. 8 27D Delegation of functions 9 The Independent Review Officer may delegate the exercise of 10 any function of the Independent Review Officer (other than this 11 power of delegation) to: 12 (a) any member of staff of the Independent Review Officer, or 13 (b) any person, or any class of persons, authorised for the 14 purposes of this section by the regulations. 15 [3] Section 35 (2) (c) 16 Insert after section 35 (2) (b): 17 (c) the remuneration of the Independent Review Officer and 18 staff of the Independent Review Officer and costs incurred 19 in connection with the exercise of the functions of the 20 Independent Review Officer, 21 10.2 Amendment of Statutory and Other Offices Remuneration 22 Act 1975 (1976 No 4) 23 Schedule 1 Public offices 24 Insert at the end of Schedule 1: 25 WorkCover Independent Review Officer 26 Page 57 Workers Compensation Legislation Amendment Bill 2012 Schedule 11 Miscellaneous amendments Schedule 11 Miscellaneous amendments 1 Amendment of Workplace Injury Management and Workers 2 Compensation Act 1998 No 86 3 [1] Section 74 4 Omit the section. Insert instead: 5 74 Insurers to give notice and reasons when liability disputed 6 (1) If an insurer disputes liability in respect of a claim or any aspect 7 of a claim, the insurer must give notice of the dispute to the 8 claimant. 9 (2) The notice must contain the following: 10 (a) a concise and readily understandable statement of the 11 reason the insurer disputes liability and of the issues 12 relevant to the decision (indicating, in the case of a claim 13 for compensation, any provision of the workers 14 compensation legislation on which the insurer relies to 15 dispute liability), 16 (b) such other information as the regulations may prescribe. 17 (3) The regulations may make provision for the form of and for other 18 information to be included in or to accompany a notice under this 19 section. The regulations may require an insurer to give a copy of 20 a notice under this section to the claimant's employer. 21 (4) The regulations may create offences in connection with any 22 failure to comply with this section. 23 Note. A dispute as to liability to commence weekly payments within the 24 requisite period after a claim for compensation is made must be notified 25 in accordance with this section (see section 93 and the offence arising 26 under section 94). 27 (5) Notice is not required to be given under this section with respect 28 to a dispute if notice has been given under section 54 of the 1987 29 Act with respect to the dispute and that notice contained the 30 statements and information that a notice under this section is 31 required to contain. 32 (6) This section does not apply to a dispute based on a work capacity 33 decision of an insurer under Division 2 of Part 3 of the 1987 Act. 34 [2] Section 238 Powers of entry and inspection of Authority inspectors 35 Omit "authorised officer" wherever occurring. Insert instead "inspector". 36 Page 58 Workers Compensation Legislation Amendment Bill 2012 Miscellaneous amendments Schedule 11 [3] Section 238A Search warrant 1 Omit "An authorised officer under this Act" from section 238A (1). 2 Insert instead "An inspector". 3 [4] Section 238A (1) and (2) (c) 4 Omit "the officer" wherever occurring. Insert instead "the inspector". 5 [5] Section 238A (2) 6 Omit "the authorised officer under this Act". Insert instead "the inspector". 7 [6] Section 238A (4) 8 Omit "authorised officer". Insert instead "inspector". 9 [7] Section 238AA Power to obtain information, documents and evidence 10 Omit "authorised officer" wherever occurring. Insert instead "inspector". 11 [8] Section 238B Protection from incrimination 12 Omit "authorised officer" from section 238B (3) (b) wherever occurring. 13 Insert instead "inspector". 14 [9] Section 238C Inspector may request assistance 15 Omit "authorised officer" and "authorised officer's" wherever occurring. 16 Insert instead "inspector" and "inspector's" respectively. 17 [10] Section 238C (2) 18 Omit "the officer" and "the officer's" wherever occurring. 19 Insert instead "the inspector" and "the inspector's" respectively. 20 [11] Section 341 Costs to be determined by Commission 21 Omit section 341 (4) and (5). Insert instead: 22 (4) Subject to this Division, if the Commission makes any order as to 23 costs, the Commission is to order that the costs follow the event 24 unless it appears to the Commission that some other order should 25 be made as to the whole or any part of the costs, or as the 26 regulations otherwise provide. 27 Page 59 Workers Compensation Legislation Amendment Bill 2012 Schedule 12 Amendments relating to savings and transitional provisions Schedule 12 Amendments relating to savings and 1 transitional provisions 2 Amendment of Workers Compensation Act 1987 No 70 3 [1] Schedule 6, Part 19H 4 Insert after Part 19G: 5 Part 19H Provisions consequent on enactment of 6 Workers Compensation Legislation 7 Amendment Act 2012 8 Division 1 Preliminary 9 1 Definitions 10 In this Part: 11 2012 amending Act means the Workers Compensation 12 Legislation Amendment Act 2012. 13 benefits amendments means the amendments made by 14 Schedules 1-7 to the 2012 amending Act. 15 existing recipient of weekly payments means an injured worker 16 who is in receipt of weekly payments of compensation 17 immediately before the commencement of the weekly payments 18 amendments. 19 first 26 weeks of incapacity has the meaning it had under section 20 34 of the 1987 Act, as in force before the weekly payments 21 amendments. 22 introduction date means the date of introduction into Parliament 23 of the Bill for the 2012 amending Act. 24 seriously injured worker has the same meaning as in Division 2 25 of Part 3 of the 1987 Act. 26 transitional amount has the meaning given by clause 2. 27 weekly payments amendments means the amendments made by 28 the 2012 amending Act to Division 2 (Weekly compensation by 29 way of income support) of Part 3 of the 1987 Act, other than the 30 amendment made to section 52 (Termination of weekly payments 31 on retiring age) of the 1987 Act. 32 Page 60 Workers Compensation Legislation Amendment Bill 2012 Amendments relating to savings and transitional provisions Schedule 12 2 Transitional amount 1 (1) The transitional amount is $906.25. 2 Note. The transitional amount is used as the deemed amount of the 3 pre-injury average weekly earnings of an injured worker for the purpose 4 of determining the weekly payments of compensation payable to existing 5 recipients of weekly payments after they become subject to the weekly 6 payments amendments. 7 (2) If the transitional amount is adjusted by operation of Division 6 8 (Indexation of certain amounts) of Part 3 of the 1987 Act, a 9 weekly payment of compensation payable to a worker injured 10 before the date on which the adjustment takes effect is, for any 11 period of incapacity occurring on and after that date, to be 12 determined by reference to that amount as so adjusted. 13 3 Application of amendments generally 14 (1) Except as provided by this Part or the regulations, an amendment 15 made by the 2012 amending Act extends to: 16 (a) an injury received before the commencement of the 17 amendment, and 18 (b) a claim for compensation made before the commencement 19 of the amendment, and 20 (c) proceedings pending in the Commission or a court 21 immediately before the commencement of the amendment. 22 (2) An amendment made by the 2012 amending Act does not apply 23 to compensation paid or payable in respect of any period before 24 the commencement of the amendment, except as otherwise 25 provided by this Part. 26 4 Application of benefits amendments to other Workers 27 Compensation Acts 28 The benefits amendments do not apply for the purposes of the 29 Workers' Compensation (Dust Diseases) Act 1942 or the 30 Workers Compensation (Bush Fire, Emergency and Rescue 31 Services) Act 1987 and a reference in either of those Acts to a 32 provision of the Workers Compensation Acts is a reference to the 33 provision without regard to any amendment made by the benefits 34 amendments. 35 5 Savings and transitional regulations 36 (1) Regulations under Part 20 of this Schedule that contain 37 provisions of a saving or transitional nature consequent on the 38 enactment of the 2012 amending Act may, if the regulations so 39 Page 61 Workers Compensation Legislation Amendment Bill 2012 Schedule 12 Amendments relating to savings and transitional provisions provide, take effect as from a date that is earlier than the date of 1 assent to the 2012 amending Act. 2 (2) Clause 1 (3) of Part 20 does not limit the operation of this clause. 3 (3) A provision referred to in subclause (1) has effect, if the 4 regulations so provide, despite any other provision of this Part. 5 (4) The power in Part 20 to make regulations that contain provisions 6 of a saving or transitional nature consequent on the enactment of 7 the 2012 amending Act extends to authorise the making of 8 regulations whereby the provisions of the Workers 9 Compensation Acts are deemed to be amended in the manner 10 specified in the regulations. 11 Division 2 Weekly payments 12 6 Application of weekly payments amendments to existing 13 claimants 14 An existing recipient of weekly payments remains entitled to 15 compensation under Division 2 of Part 3 of the 1987 Act as if the 16 weekly payments amendments had not been made, but only until 17 the weekly payments amendments apply to the compensation 18 payable to the person as provided by this Division. 19 7 Termination of weekly payments on retiring age 20 The amendment made by the 2012 amending Act to section 52 of 21 the 1987 Act does not apply in respect of the compensation 22 payable to a person who reached the retiring age referred to in 23 that section before the commencement of the amendment. 24 8 Work capacity assessment of existing recipients of weekly 25 payments 26 (1) A work capacity assessment of an existing recipient of weekly 27 payments is to be conducted as provided by this clause for the 28 purposes of facilitating the application of the weekly payments 29 amendments to the worker. 30 (2) The insurer who is liable to make weekly payments of 31 compensation to an existing recipient of weekly payments must 32 conduct a work capacity assessment of the worker no later than 33 12 months (or such longer period as may be prescribed by the 34 regulations) after the commencement of the weekly payments 35 amendments. 36 Page 62 Workers Compensation Legislation Amendment Bill 2012 Amendments relating to savings and transitional provisions Schedule 12 (3) If an existing recipient of weekly payments is a seriously injured 1 worker, the insurer is not to conduct a work capacity assessment 2 of the worker under this clause. 3 (4) The WorkCover Guidelines may make provision for the staged 4 implementation of the requirement under this clause for a work 5 capacity assessment. 6 (5) A work capacity assessment can be conducted before the 7 commencement of Schedule 1 to the 2012 amending Act, as if 8 that Schedule had commenced on the date of assent to the 2012 9 amending Act. For that purpose the WorkCover Guidelines can 10 make provision for work capacity assessments before the 11 commencement of Schedule 1 to the 2012 amending Act. 12 9 Weekly payments amendments to apply after work capacity 13 assessment 14 (1) On the expiration of a period of 3 months after an insurer first 15 conducts a work capacity assessment of an existing recipient of 16 weekly payments (as required under this Division or otherwise), 17 the weekly payments amendments apply to the compensation 18 payable under Division 2 of Part 3 of the 1987 Act to the worker 19 in respect of any period of incapacity after the expiration of that 20 period. 21 (2) However, the weekly payments amendments do not apply to the 22 compensation payable under Division 2 of Part 3 of the 1987 Act 23 to the worker in respect of any period of incapacity during the 24 first 26 weeks of incapacity. 25 (3) For the purposes of the application under this clause of the 26 weekly payments amendments to a worker, the worker's 27 pre-injury average weekly earnings are deemed to be equal to the 28 transitional amount. 29 Note. The transitional amount is initially $906.25 and is indexed 30 annually. 31 (4) For the purposes of the application of the weekly payments 32 amendments to the compensation payable under Division 2 of 33 Part 3 of the 1987 Act to a worker in respect of any period of 34 incapacity after the commencement of those amendments, a 35 reference in that Division to a period in respect of which a weekly 36 payment has been paid or is payable to a worker includes such a 37 period that occurred before the commencement of those 38 amendments (or before the application of those amendments to 39 the compensation payable to the worker). 40 Page 63 Workers Compensation Legislation Amendment Bill 2012 Schedule 12 Amendments relating to savings and transitional provisions 10 Special provision for seriously injured workers 1 (1) The weekly payments amendments apply from the 2 commencement of those amendments to the compensation 3 payable under Division 2 of Part 3 of the 1987 Act to an existing 4 recipient of weekly payments who is a seriously injured worker. 5 (2) For the purposes of the application under this clause of the 6 weekly payments amendments to a seriously injured worker, the 7 worker's pre-injury average weekly earnings are deemed to be 8 equal to the transitional amount. 9 Note. The transitional amount is initially $906.25 and is indexed 10 annually. 11 11 Special provision for workers receiving section 38 benefits 12 (1) An existing recipient of weekly payments who is in receipt of 13 weekly payments under section 38 of the 1987 Act immediately 14 before the commencement of the weekly payments amendments 15 remains entitled to compensation under that section in respect of 16 the injury concerned but only for the period provided by that 17 section. 18 (2) The weekly payments amendments do not apply to the 19 compensation payable to the worker during the period for which 20 the worker remains entitled to compensation under section 38 21 pursuant to this clause. 22 12 Odd lot rule workers 23 An order of the Commission for the payment of compensation to 24 a worker under section 39 (Incapacity treated as total-- "odd-lot" 25 rule) of the 1987 Act that is in force immediately before the 26 commencement of the weekly payment amendments does not 27 limit or prevent the application of the weekly payments 28 amendments to the worker as provided by this Part. 29 13 Earlier periods of incapacity not counted towards 5 year limit on 30 payments 31 For the purposes of the application of section 39 (Cessation of 32 weekly payments after 5 years) of the 1987 Act, as substituted by 33 the 2012 amending Act, to the compensation payable after the 34 commencement of that section in respect of an injury that 35 happened before that commencement, no regard is to be had to 36 Page 64 Workers Compensation Legislation Amendment Bill 2012 Amendments relating to savings and transitional provisions Schedule 12 any period before that commencement in respect of which a 1 weekly payment has been paid or is payable to the worker. 2 Note. Section 39 limits the payment of weekly payments of 3 compensation to a period of 5 years. Weekly payments made before the 4 commencement of the weekly payments amendments are not counted 5 towards the 5 years. 6 14 Jurisdiction of Commission 7 Sections 43 (3) and 44 (5) as inserted by the 2012 amending Act 8 extend to proceedings pending in the Commission when a 9 relevant work capacity decision is made. 10 Division 3 Miscellaneous 11 15 Lump sum compensation 12 An amendment made by Schedule 2 to the 2012 amending Act 13 extends to a claim for compensation made on or after 19 June 14 2012, but not to such a claim made before that date. 15 16 Damages for nervous shock 16 An amendment made by Schedule 3 to the 2012 amending Act 17 extends to a claim for damages in respect of harm suffered before 18 19 June 2012 but does not apply to a claim for damages if the 19 claimant commenced court proceedings for the recovery of work 20 injury damages before 19 June 2012. 21 17 Medical, hospital and rehabilitation expenses 22 (1) An amendment made by the 2012 amending Act to section 60 of 23 the 1987 Act does not apply in respect of any treatment or service 24 provided before the commencement of the amendment. 25 (2) In the application of section 59A (Limit on payment of 26 compensation) of the 1987 Act in respect of a claim for 27 compensation made before the commencement of that section: 28 (a) the claim is deemed to have been made immediately before 29 the commencement of that section, and 30 (b) no regard is to be had to any weekly payment of 31 compensation paid or payable to the worker before the 32 commencement of that section (for the purpose of 33 determining when a worker ceased to be entitled to weekly 34 payments of compensation). 35 Note. Section 59A limits the payment of compensation to a period of 36 12 months after a claim for compensation is made or 12 months after 37 weekly payments of compensation cease. Subclause (2) ensures that 38 Page 65 Workers Compensation Legislation Amendment Bill 2012 Schedule 12 Amendments relating to savings and transitional provisions for existing claims the 12 month period will commence no earlier than the 1 commencement of the section. 2 18 Journey claims 3 An amendment made by Schedule 5 to the 2012 amending Act 4 extends to an injury received on or after 19 June 2012 but does 5 not apply to an injury received before that date. 6 19 Heart attack and stroke injuries 7 Section 9B extends to an injury received on or after 19 June 2012 8 but does not apply to an injury received before that date. 9 20 Disease injuries 10 An amendment made by Schedule 7 to the 2012 amending Act 11 extends to an injury received on or after 19 June 2012 but does 12 not apply to an injury received before that date. 13 21 Costs in proceedings 14 An amendment made by the 2012 amending Act to section 341 15 (Costs to be determined by Commission) of the 1998 Act does 16 not apply in respect of proceedings commenced in the 17 Commission before the commencement of the amendment. 18 22 Commutation 19 (1) The Authority may defer consideration of an application for 20 registration of a commutation agreement under Division 9 of 21 Part 3 of the 1987 Act that is made on or after the introduction 22 date (a transitional commutation agreement) until 3 months 23 after a work capacity assessment of the injured worker is 24 conducted. 25 (2) If the amount of compensation payable to an existing recipient of 26 weekly payments of compensation changes as a result of an 27 amendment made by the 2012 amending Act, the change applies 28 for the purposes of the commutation of a liability for that 29 compensation under Division 9 of Part 3 pursuant to a transitional 30 commutation agreement. 31 23 Assessment of permanent impairment 32 (1) For the purposes of determining the degree of permanent 33 impairment of an injured worker whose injury happened before 34 1 January 2002, the worker or the insurer may refer the matter for 35 assessment under Part 7 of Chapter 7 of the 1998 Act. That Part 36 applies in respect of such an assessment as if the matter referred 37 for assessment were a dispute. 38 Page 66 Workers Compensation Legislation Amendment Bill 2012 Amendments relating to savings and transitional provisions Schedule 12 (2) This clause does not apply to a worker in respect of an injury if 1 the degree of permanent impairment of the worker resulting from 2 the injury has been assessed before the commencement of this 3 clause. 4 24 Inspectors 5 (1) An authorisation of a person that is in force for the purposes of 6 section 238 of the 1998 Act immediately before the amendment 7 of that section by the 2012 amending Act is deemed to be an 8 authorisation of the person as an inspector for the purposes of that 9 section. 10 (2) A search warrant issued under section 238A of the 1998 Act to a 11 person as an authorised officer and in force immediately before 12 the amendment of that section by the 2012 amending Act is 13 deemed to have been issued to the person as an inspector. 14 (3) Any act, matter or thing done or omitted to be done by a person 15 as an authorised officer for the purposes of section 238AA of the 16 1998 Act is, to the extent that it relates to matters arising after the 17 amendment of that section by the 2012 amending Act, deemed to 18 have been done or omitted by the person as an inspector under 19 that section. 20 25 Police officers 21 The benefits amendments do not apply to or in respect of an 22 injury received by a police officer (before or after the 23 commencement of this clause), and the Workers Compensation 24 Acts (and the regulations under those Acts) apply to and in 25 respect of such an injury as if those amendments had not been 26 enacted. 27 26 Coal miners 28 (1) The benefits amendments do not apply to or in respect of an 29 injury received by a coal miner (before or after the 30 commencement of this clause), and the Workers Compensation 31 Acts (and the regulations under those Acts) apply to and in 32 respect of such an injury as if those amendments had not been 33 enacted. 34 (2) In this clause: 35 coal miner means a worker employed in or about a mine. 36 27 Review of amendments 37 (1) The Minister is to conduct a review of the amendments made by 38 the 2012 amending Act to determine whether the policy 39 Page 67 Workers Compensation Legislation Amendment Bill 2012 Schedule 12 Amendments relating to savings and transitional provisions objectives of those amendments remain valid and whether the 1 terms of the Workers Compensation Acts remain appropriate for 2 securing those objectives. 3 (2) The review is to be undertaken as soon as possible after the period 4 of 5 years from the date of assent to the 2012 amending Act. 5 (3) A report on the outcome of the review is to be tabled in each 6 House of Parliament within 12 months after the end of the period 7 of 5 years. 8 [2] Schedule 6, Part 20 Savings and transitional regulations 9 Insert at the end of clause 1 (1): 10 any other Act that amends this Act 11 Page 68
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