EXPLANATORY STATEMENT
Safety, Rehabilitation and Compensation Act 1988
Issued by the Minister for Employment and Workplace Relations
Notice of a Disallowable Instrument
Safety, Rehabilitation and Compensation
(Weekly Interest on the Lump Sum) Notice 2009
The purpose of the instrument to which this Explanatory Statement relates, is to specify the rate of weekly interest on the lump sum to be used in calculating compensation in respect of incapacity for work resulting from an injury, payable under section 21 or 21A of the Safety, Rehabilitation and Compensation Act 1988 (the SRC Act).
Section 21 of the SRC Act applies where the injured employee has received a superannuation lump sum benefit. Section 21A of the SRC Act applies where the injured employee has received both a superannuation lump sum benefit and superannuation pension. In both cases, the weekly amount of the incapacity benefit is reduced by the weekly value of the superannuation lump sum benefit. That weekly value is calculated by multiplying the value of the superannuation lump sum benefit by the interest rate specified by the Minister and dividing the result by 52.
The instrument is a legislative instrument subject to the Legislative Instruments Act 2003.
This rate is derived by obtaining the daily 10 year Government Bond rates from the Reserve Bank of Australia, averaging them for the period 1 April 2008 to 31 March 2009 and rounding to two decimal places.
The instrument specifies a rate of 5.35% (rounded from 5.354% for the period 1 July 2009 to 30 June 2010.
The rate specified for the period 1 July 2007 to 30 June 2008 was 6.08%.