Graham and Comcare (Compensation)

This matter concerned an appeal by Mr Graham against a decision by Comcare regarding the calculation of his compensation payments. The dispute centred on whether increases in salary, specifically those awarded to employees deemed "fully effective," should be included when recalculating the normal weekly earnings of an injured employee for the purposes of compensation under section 8 of the *Safety, Rehabilitation and Compensation Act 1988* (Cth). The decision was heard by N A Manetta SM.

The primary legal issue before the court was to determine the proper interpretation of section 8 of the *Safety, Rehabilitation and Compensation Act 1988*, specifically subsection 8(6), in relation to the calculation of "normal weekly earnings" for an injured employee. The court was required to ascertain whether salary increases that an employee might have received had they remained fully effective and in their pre-injury employment, but which were not actually earned, should be factored into the compensation assessment.

The court reasoned that compensation payments are intended to reflect earnings that have been, or would have been, actually received. It applied the principle that increases in salary, such as those awarded to employees judged "fully effective," are contingent on continued employment and performance. Therefore, such notional increases, which were not actually earned by Mr Graham due to his injury and subsequent cessation of employment with his original employer, should not be included in the calculation of his normal weekly earnings. The court affirmed the decision under review, finding that Mr Graham was not entitled to have his compensation calculated by reference to these potential future increases.