Ascic v Comcare

Case [2019] FCA 819


FEDERAL COURT OF AUSTRALIA

Ascic v Comcare [2019] FCA 819

File number: WAD 487 of 2017
Judge: MCKERRACHER J
Date of judgment: 4 June 2019
Catchwords:

WORKERS’ COMPENSATION – former Commonwealth employee – recognised depression and acute paranoid reaction to perceived stress in employment – superannuation pension – invalidity retirement – independent review of determinations as to compensation – consideration of the transitional provisions in the Safety, Rehabilitation and Compensation Act 1988 (Cth) (the 1988 Act) in respect of a former employee’s incapacity payments – consideration of the application of ss 25 and 45 of the Compensation (Commonwealth Government Employees) Act 1971 (Cth)

ADMINISTRATIVE LAW – application for judicial review of the decision of the Administrative Appeals Tribunal – review by the Tribunal of a reviewable decision – whether the Tribunal erred in its determination of incapacity payments calculated having regard to ss 131(3), (4) and (5) of the 1988 Act – whether the Tribunal erred in failing to provide adequate reasons pursuant to the duty contained in s 43(2B) of the Administrative Appeals Tribunal Act 1975 (Cth)

Legislation:

Administrative Appeals Tribunal Act 1975 (Cth) ss 43(2), 43(2B), 44, 44(7),

Compensation (Commonwealth Government Employees) Act 1971 (Cth) ss 25, 25(2), 25(4), 25(5), 25(10), 25(11), 25(12), 45, 45(2), 45(2)(a), 45(2)(b), 45(3), 45(4), 45(7), 45(7)(a), 45(7)(b), 45(7)(c), 45(7)(d), 45(7)(e)

Evidence Act 1995 (Cth) s 56(2)

Safety, Rehabilitation and Compensation Act 1988 (Cth) ss 123, 131, 131(1)(a), 131(1)(b), 131(2), 131(3), 131(4), 132(3), 132(4), Pt X

Cases cited:

Ascic and Comcare (Compensation) [2017] AATA 1436

Ekinci v Civil Aviation Safety Authority (2014) 227 FCR 459

Re Knezevic; ex parte Carter [2005] WASCA 139

Total Marine Services Pty Ltd v Kiely (1998) 51 ALD 635

Date of hearing: 15 April 2019
Registry: Western Australia
Division: General Division
National Practice Area: Administrative and Constitutional Law and Human Rights
Category: Catchwords
Number of paragraphs: 83
Counsel for the Applicant: The Applicant appeared in person
Counsel for the Respondent: Ms K Slack
Solicitor for the Respondent: Sparke Helmore

ORDERS

WAD 487 of 2017
BETWEEN:

MARKO ASCIC

Applicant

AND:

COMCARE

Respondent

JUDGE:

MCKERRACHER J

DATE OF ORDER:

4 JUNE 2019

THE COURT ORDERS THAT:

1.The application be dismissed.

2.The applicant pay the respondent’s cost of the application, to be assessed if not agreed. 

Note:   Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.


REASONS FOR JUDGMENT

MCKERRACHER J:

INTRODUCTION

  1. The applicant, Mr Ascic, is former member of the Australian Federal Police (AFP), which was known as the Commonwealth Police when he was first employed on 25 December 1973.  He retired being totally incapable of engaging in work on 1 September 1988. 

  2. Since 1988, the respondent, Comcare, has recognised that Mr Ascic suffers from ‘depression and acute paranoid reaction to perceived stress in employment’ stemming from an injury of 11 December 1987 whilst employed with the Commonwealth Police.  Initially, Mr Ascic was given extended sick leave from the deemed date of injury until the date of his retirement.  He…

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AGLC
Ascic v Comcare [2019] FCA 819
Case
[2019] FCA 819
Decision Date

CaseChat Overview and Summary

This case involved Mr Ascic, a former Commonwealth employee, who challenged a decision made by Comcare regarding his incapacity payments. The dispute was brought before the Federal Court of Australia, which was asked to review the decision of the Administrative Appeals Tribunal (AAT) in relation to Mr Ascic's entitlements. The primary legal issues before the court were whether the AAT erred in its determination of Mr Ascic's incapacity payments, as well as whether the AAT failed to provide adequate reasons for its decision. The case also involved the application of certain statutory provisions, including sections 131(3), 131(4), and 131(5) of the Safety, Rehabilitation and Compensation Act 1988 (Cth) (the 1988 Act), and sections 25 and 45 of the Compensation (Commonwealth Government Employees) Act 1971 (Cth) (the 1971 Act).

The Federal Court found that the AAT had correctly calculated Mr Ascic's incapacity payments and that the relevant provisions of the 1988 Act had been applied appropriately. The court emphasised that Mr Ascic's entitlement to incapacity payments was derived from Part X of the 1988 Act, which provides for former employees under the age of sixty-five who are receiving superannuation benefits and are unable to engage in any work. The court further noted that the AAT had correctly applied the relevant sections of the 1988 Act to determine Mr Ascic's total benefit immediately before the commencement day, and that the calculation of his incapacity payments had been made in accordance with the law. Additionally, the court held that the AAT had adequately provided reasons for its decision, as required by section 43(2B) of the Administrative Appeals Tribunal Act 1975 (Cth).

The Federal Court dismissed Mr Ascic's application for judicial review and ordered him to pay Comcare's costs of the application, to be assessed if not agreed. This decision was in line with Rule 39.32 of the Federal Court Rules 2011, which deals with the entry of orders.

Orders

Orders of the court

1. The application be dismissed.

2. The applicant pay the respondent’s cost of the application, to be assessed if not agreed.

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

The Tribunal noted that Comcare completed its reconsideration and on 23 December 2015 decided that the determinations were correct and affirmed them (the reviewable decision), finding that:(a)Mr Ascic’s entitlement to incapacity payments had been correctly calculated having regard to ss 131(3), 131(4) and 131(5) of the 1988 Act;(b)the result was that Mr Ascic should have been paid at 70% of his NWE from 28 June 1991, that is, s 131(3) of the 1988 Act was the appropriate provision under which to calculate Mr Ascic’s entitlements to compensation since 1 December 1988. The Tribunal correctly noted that the entitlement of former Commonwealth employees’ to incapacity payments stems from Pt X of the 1988 Act. Relevantly, s 123 of the 1988 Act provides the following definitions for the purposes of Pt X:…combined benefit, in relation to a former employee, means an amount equal to the sum of:(a)the amount of compensation payable to the former employee under this Act; and(b)the employee’s superannuation amount.commencing day means the day on which this Part commences.former employee means a person who, immediately before the commencing day, was receiving weekly payments of compensation under the 1971 Act in respect of an injury resulting in an incapacity and had ceased to be an employee within the meaning of that Act before that day.total benefit, in relation to a former employee, means an amount equal to the sum of:(a)the amount of compensation payable per week to the former employee under the 1971 Act; and(b)the employee’s superannuation amount.1971 amount, in relation to a former employee, means the amount of compensation that was, immediately before the commencing day, payable per week to the former employee under the 1971 Act. The Tribunal correctly recorded that s 131 of the 1988 Act provides for former employees under the age of sixty five who are in receipt of superannuation benefits and are unable to engage in any work. The Tribunal explained that ss 132(2), 132(3) and 132(4) of the 1988 Act effectively apply to calculate the combined benefit payable to a former employee whose total benefit immediately before the commencing day was:(a)equal to or more than 95% of their NWE as at that day (s 131(2) of the 1988 Act);(b)equal to or more than 70% but less than 95% of their NWE as at that day (s 131(3) of the 1988 Act); or(c)less than 70% of their NWE as at that day (s 131(4) of the 1988 Act). Accordingly, the Tribunal said that each calculation above requires a determination to be made as to what a former employee’s ‘total benefit immediately before the commencing day’ was. The Tribunal then considered s 25 of the 1971 Act (extracted above) which provides for the calculation of AWE. The Tribunal particularly emphasised s 25(2):(2)A reference in the succeeding provisions of this section to earnings of an employee in relation to any employment shall be read as including a reference to any allowance payable to the employee in respect of that employment other than an allowance that is payable in respect of special expenses incurred or likely to be incurred by the employee in respect of that employment.(Emphasis added.)

Ratio Decidendi

Legal Principle Established

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