Workers Compensation Legislation Amendment Act 2001 (NSW)

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An Act to amend the Workers Compensation Act 1987 and the Workplace Injury Management and Workers Compensation Act 1998 to make further provision for claims procedures, dispute resolution, commutation, lump sum compensation and other matters; and for other purposes.

1Name of Act

This Act is the Workers Compensation Legislation Amendment Act 2001.

2Commencement(1)

This Act commences on a day or days to be appointed by proclamation.

(2)

A proclamation under this section may appoint a particular time on a day as the time for commencement on that day.

(3)

An amendment made by Schedule 3 (Amendments relating to lump sum compensation) cannot be commenced until guidelines have been made under section 376 of the Workplace Injury Management and Workers Compensation Act 1998 (as inserted by this Act) with respect to the assessment of the degree of permanent impairment of an injured worker as a result of an injury.

3Amendments

Each Act specified in Schedules 1–6 is amended as set out in those Schedules.

Schedule 1Amendments relating to commutation procedures

(Section 3)

Workers Compensation Act 1987 No 70[1]Section 35 Maximum weekly payment

Omit “under section 51” from section 35 (3).

[2]Section 37 Weekly payment during total incapacity—after first 26 weeks

Omit “under section 51” from section 37 (6B).

[3]Section 40 Weekly payments during partial incapacity—general

Omit “under section 51” from section 40 (7).

[4]Section 45 Reduction of weekly payments to qualify for other benefits

Omit “under section 51” from section 45 (3).

Insert instead “under this Act”.

[5]Section 51 Exit payments by commutation of weekly payments

Omit the section.

[6]Part 3, Division 9

Insert after Division 8 of Part 3:

Division 9Commutation of compensation87DDefinition

In this Division:

commutation agreement means an agreement to commute a liability to a lump sum, as provided by section 87F.

87ECompensation that may be commuted(1)

A liability in respect of any of the following kinds of compensation under this Act or the former Act may be commuted to a lump sum as provided by this Division (and not otherwise):

  • (a)

    weekly payments of compensation,

  • (b)

    compensation under Division 3 (Compensation for medical, hospital and rehabilitation expenses etc) of Part 3 of this Act or section 10 of the former Act.

(2)

Such a liability cannot be commuted to a lump sum by an order or award of the Commission (but this subsection does not affect the operation of section 87G).

87FCommutation by agreement(1)

A liability may be commuted to a lump sum with the agreement of the worker.

(2)

A commutation agreement must not be entered into unless (before the agreement is entered into):

  • (a)

    a legal practitioner instructed independently of the insurer and the employer has certified in writing that the legal practitioner has advised the worker on the full legal implications of the agreement, including implications with respect to any entitlement of the worker to compensation under this Act or to benefits under any…

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.