Compensation (Commonwealth Government Employees) Regulations (Amendment)

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EXPLANATORY STATEMENT

Statutory Rules 1988 No 122

Issued by the authority of the Minister of State for Social Security.

Subject: Compensation (Commonwealth Government Employees) Act 1971.

Compensation (Commonwealth Government Employees)

Regulations (Amendment).

The purpose of the Statutory Rules is to increase, from 13 June 1988, the rates and amounts of compensation benefits payable under the Compensation (Commonwealth Government Employees) Act 1971.

Regulation 1 of the Statutory Rules amends Regulation 27 of the Compensation (Commonwealth Government Employees) Regulations to prescribe a rate of $24.00 a week for the purposes of subsection 43(5) of the Principal Act. Accordingly, the rate of weekly payment in respect of each dependent child of a deceased employee is increased from $23.10 to $24.00 a week.

Regulation 2 of the Statutory Rules amends Regulation 28 of the Compensation (Commonwealth Government Employees) Regulations to prescribe a rate of $33.50 a week for the purpose of subsection 48(1) of the Principal Act. Accordingly, the additional amount of compensation payable when an injured employee requires the constant help of another person is increased from $32.50 a week to $33.50 a week.

Regulation 3 of the Statutory Rules amends Schedule 4 of the Compensation (Commonwealth Government Employees) Regulations to prescribe new amounts of benefits under Regulation 26 which will apply the prescribed amounts for the purposes of various provisions of the Principal Act. Schedule 4 will operate to increase compensation benefits as follows:

 Subsection 37(3): the general upper limit for the amount of compensation payable for alterations to buildings or vehicles, or repair or replacement of certain aids and applicances, used by an incapacitated employee is increased from $1,630 to $1,692.

 Subsections 39(1) and 39(3): the amount of compensation payable in respect of total loss of sight resulting from an injury is increased from $57,780 to $59,980. An increase in this amount has the effect of increasing the amount of compensation payable for other specified losses resulting from an injury in the same proportion. The compensation entitlement for these losses is expressed as a percentage of the maximum figure (eg loss of a leg below the knee attracts a payment of 65% of the amount payable for total loss of sight).


 Subsection 39(7): the amount of compensation for an injury that results in partial loss of sight in both eyes is increased from $28,910 to $30,010.

 Subsection 40(1): the amount of compensation payable for an injury that results in loss of the capacity to engage in sexual intercourse is increased from $28,910 to $30,010.

 Subsections 41(1) and (6): the maximum amount of compensation payable in respect of an injury that results in severe and permanent facial disfigurement is increased from $28,910 to $30,010.

 Subsections 42(1) and (2); compensation payable in respect of an injury that results in total and permanent loss of the sense of taste or smell is increased from $5,780 to $6,000.

 Paragraphs 43(3)(a) and (4)(a): the maximum amount of compensation payable to dependants in respect of an injury to an employee that results in his or her death is increased from $57,780 to $59,980.

 Paragraph 43(7)(b): the minimum total amount of compensation payable in respect of each dependent child of a deceased employee is increased from $2,310 to $2,400.

 Subsection 44(1): the maximum amount of compensation payable in respect of funeral expenses incurred in respect of a deceased employee is increased from $1,490 to $1,550.

 Paragraph 45(2)(a): subsection 45(3): subsection 45(4):

- paragraph 45(2)(a): the basic weekly payment to an employee in respect of a period of total incapacity for work resulting from an injury is increased from $185.70 to $192.80;

- subsection 45(3): the weekly allowance for a dependent spouse during such a period of total incapacity is increased from $48.60 to $50.50;

- subsection 45(4): the weekly allowance for each dependent child during such a period of total incapacity is increased from $23.10 to $24.00.

 Subparagraph 46(2)(a)(i): the maximum weekly amount of compensation payable to an employee in respect of a period of partial incapacity for work resulting from an injury is increased from $185.70 to $192.80.

Regulation 4 of the Statutory Rules provides for the date of effect of these amendments to be 13 June 1988.

Paragraph 4(a) applies the increased rates and amounts of weekly compensation payable under the Act in respect of any period commencing after 12 June 1988.


Paragraph 4(b) applies the increased lump sum amounts of compensation payable under the Act in respect of an injury, a loss specified, or an event, that occurs after 12 June 1988.

Overview

The Compensation (Commonwealth Government Employees) Regulations (Amendment) Statutory Rules 1988 No 122 were enacted to increase the rates and amounts of compensation benefits payable under the Compensation (Commonwealth Government Employees) Act 1971. The problem these regulations address is the need to periodically adjust compensation rates to reflect changes in economic conditions, ensuring that the benefits provided remain adequate to support employees who suffer injuries or disabilities in the course of their employment. The regulations were issued by the authority of the Minister of State for Social Security, with the policy objective of maintaining the adequacy of compensation benefits for Commonwealth government employees who are injured or incapacitated as a result of their employment. These amendments ensure that compensation benefits keep pace with inflation and other economic factors, thereby supporting affected employees and their families during periods of incapacity or following the death of an employee.

Scope and Application

The Compensation (Commonwealth Government Employees) Regulations (Amendment) Statutory Rules 1988 No 122 apply to Commonwealth government employees who are injured on or off duty and their dependents, as well as to employees who die as a result of injuries sustained on or off duty. The amendment to the Regulations increases the rates and amounts of compensation benefits payable under the Compensation (Commonwealth Government Employees) Act 1971, effective from 13 June 1988. The increased benefits apply to various scenarios such as total and partial loss of sight, loss of the capacity to engage in sexual intercourse, severe and permanent facial disfigurement, total and permanent loss of the sense of taste or smell, and compensation payable to dependants in respect of an injury to an employee that results in his or her death. Additionally, the amendment increases the basic weekly payment to an employee in respect of a period of total incapacity for work resulting from an injury, the weekly allowance for a dependent spouse during such a period of total incapacity, and the weekly allowance for each dependent child during such a period of total incapacity. The increased rates and amounts of weekly compensation apply to any period commencing after 12 June 1988, and the increased lump sum amounts of compensation apply to an injury, a loss specified, or an event, that occurs after 12 June 1988.

Key Provisions

The Compensation (Commonwealth Government Employees) Regulations (Amendment) Statutory Rules 1988 No 122, issued under the authority of the Minister of State for Social Security, primarily amend the Compensation (Commonwealth Government Employees) Regulations to increase various compensation benefits payable under the Compensation (Commonwealth Government Employees) Act 1971, effective from 13 June 1988. Regulation 1 modifies Regulation 27 to set the weekly rate of compensation for each dependent child of a deceased employee at $24.00, up from $23.10 (subsection 43(5)). Regulation 2 changes Regulation 28 to increase the weekly compensation for an injured employee who requires constant assistance to $33.50, from $32.50 (subsection 48(1)). Regulation 3 amends Schedule 4 to revise the compensation amounts for various injuries and losses. This includes raising the upper limit for alterations to buildings or vehicles, or repair or replacement of certain aids and appliances, to $1,692 from $1,630 (subsection 37(3)), and increasing the compensation for total loss of sight from $57,780 to $59,980 (subsections 39(1) and 39(3)). Other increases include those for partial loss of sight in both eyes (subsection 39(7)), loss of capacity to engage in sexual intercourse (subsection 40(1)), severe and permanent facial disfigurement (subsections 41(1) and 41(6)), total and permanent loss of the sense of taste or smell (subsections 42(1) and 42(2)), and compensation to dependants in respect of an employee's death (paragraph 43(3)(a) and (4)(a)). The compensation for funeral expenses also rises from $1,490 to $1,550 (subsection 44(1)). Regulation 4 sets the effective date of these amendments at 13 June 1988. The Compensation (Commonwealth Government Employees) Regulations (Amendment) Statutory Rules impose several obligations on the Commonwealth government and its employees. Firstly, the Commonwealth government must ensure that the updated compensation rates and amounts are correctly applied in all relevant cases from the effective date of 13 June 1988. This involves updating internal systems and procedures to reflect the new rates. For employees, the obligation is to accurately report any injuries, losses, or deaths that occur post-12 June 1988 to the relevant authorities. Additionally, the government must ensure that all employees are informed about the changes to compensation rates and what these changes mean for their entitlements. These obligations are crucial for maintaining the integrity and fairness of the compensation system. Breaches of the Compensation (Commonwealth Government Employees) Regulations (Amendment) Statutory Rules may lead to various consequences, both civil and criminal. For instance, if the Commonwealth government fails to apply the correct compensation rates, this could result in underpayment of benefits to employees, which may constitute a civil wrong. Employees who deliberately provide false information about injuries or losses may be subject to penalties under the Crimes Act 1914, including fines and imprisonment. The maximum penalties for such offences can vary but may include fines of up to $22,000 and imprisonment for up to two years. It is essential for all parties to comply with the regulations to avoid these legal repercussions and ensure that the compensation system operates effectively and fairly.

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