6.1.5.2 Weekly pension

Calculate partner pension | Calculate child pension | Calculate orphan pension

A weekly pension is paid to a wholly or mainly dependent partner and/or dependent child (including orphan child) of a deceased worker. No other person is entitled to a weekly pension.

AC s92B
WIRC s241

Weekly pensions are payable to each dependent partner for three years from the date of death of the worker.

Weekly pensions are payable to each dependent:

  • orphan child from the date of death of the worker

  • child from Week 14

until they are aged 16 years.

After age 16, the weekly pension will continue if they are:

  • living with a disability (within the meaning of the Disability Act 2006) until the day before they turn 25 years of age.

The definition of weekly pension entitlement periods is as follows:

End of Week 13 (after death) Date of death plus (7 X 13) minus 1 day
Start of Week 14 (after death) Date of death plus (7 X 13)

End of 26 weeks (after death)

(claims lodged on or before 4 April 2010)

Date of death plus (7 X 26) minus 1 day

 

End of 52 weeks (after death)

(claims lodged on or after 5 April 2010)

Date of death plus 1 year minus 1 day
End of 3 years (after death)

Date of death plus 3 years minus 1 day

For example, date of death is 3 September 2008 therefore the pension payment term is until 2 September 2011
Age 16 Day of 16th birthday minus 1 day
Age 25

For a full-time student or a full time apprentice

  • 31 December in the year they turn 25 years of age

For child living with a disability

  • Day of 25th birthday minus 1 day

 
Deductions from weekly pension

Taxation

Weekly pensions are income and are subject to tax under Australian taxation laws. Tax is deducted before weekly pension payments are made.

See: Impact of taxation

Centrelink

Weekly pensions are not subject to deductions from Centrelink.

See: Centrelink payments

Monthly payments

In order to provide certainty and consistency for dependants, weekly pensions are paid one month in advance.

Payments can be made directly into the dependant’s bank account.

Interest for late payment of weekly pension

The Agent or Self-insurer must pay interest on the weekly pension if:

  • initial payment starts more than 14 days after determination of dependency, calculation of PIAWE or provision of Tax File Number Declaration form, whichever is the latter
  • ongoing payments are made more than seven days after the due date.

Interest is paid at the prescribed rate and is subject to Australian taxation laws.

Note: Penalty interest Penalty interest awarded when there is a delay in the payment of compensation. may be awarded over and above the penalty interest rate if there is a delay in the payment of compensation and/or interest. Penalty interest that results from late payment of weekly pensions does not attract tax however it may be considered assessable income in certain circumstances.

See: Interest payable

Payments to a child between 16-25 years

Pension payments to a dependent child or orphan child aged 16 years or more, but under the age of 25 years will continue if they provide proof they are undertaking full-time studies, full-time apprenticeship or are living with a disability (within the meaning of the Disability Act 2006).

Before a child or orphan child reaches 16 years of age, written confirmation from the relevant education provider must be obtained and provided to the Agent or Self-Insurer to enable ongoing weekly pension payments. Generally, the decision to continue with full-time studies or an apprenticeship is made or known around the start of each year and as such, Agents should process weekly pensions until the end February of that year whilst awaiting the confirmation.

If a child or orphan child is undertaking only part-time studies, they are no longer eligible for a weekly pension.

If a child or orphan child ceased being a full-time student or a full-time apprentice for a period and subsequently resumes full-time studies or full-time apprenticeship before reaching 25 years of age, the weekly pension can be reinstated on and from the date:

  • full-time study is resumed (i.e. not the enrolment date but the date the dependent recommences studying, usually when the semester begins) or

  • full-time apprenticeship commences.

Disability in relation to a person mean -

  1. sensory, physical or neurological impairment or acquired brain injury or any combination thereof, which -

    i. is, or is likely to be, permanent; and

    ii. causes a substantially reduced capacity in at least one of the areas of self-care, self-management, mobility or communication; and

    iii. requires significant ongoing or long term episodic support; and

    iv. is not related to ageing; or

  2. an intellectual disability; or

  3. a developmental delay.

Disability Act 2006: section 3(1) Definitions

Written confirmation of a disability must be obtained to enable ongoing weekly pension payments. Using WorkSafe’ Disability Assessment Table, confirmation of the child or orphan child’s disability:

  • for Category A, means a copy of a letter approving participation in a commonwealth or state scheme or program as described in List 1 (for example, National Disability Insurance Scheme (NDIS) or Program for Students with Disabilities (PSD))

  • for Category B, means a copy of report/letter from their healthcare team confirming a diagnosis as described in List 2

  • for Category C, means a report from their healthcare team outlining diagnosis, permanency, what is the reduced capacity in self-care, self-management, mobility or communication and what ongoing or long-term episodic support is required.

Healthcare team providing information/report under Category C can be paid using Item Code INS002.

Depending on the disability, healthcare team can be a/an:

  • Ophthalmologist to assess vision impairment

  • Audiologist to assess hearing impairment

A child or orphan child living with a disability will not need their entitlement reviewed once determined: they will remain in receipt of a weekly pension until they reach age 25.

Process

By Action
Agent or Self-Insurer Prior to reaching the age of 16 years, write to the child’s guardian seeking confirmation the child is living with a disability and invite them to call and discuss further
Guardian Discuss with the agent or self-insurer the disability/diagnosis, disability requirements and determine next steps (use WorkSafe’s Disability Assessment Table)
Agent or Self-Insurer

Write to the guardian to confirm discussion and next steps.

Next steps should include:

  • what information is required

  • consideration of any impact a weekly pension may have on the child or orphan child’s entitlement to (ongoing) Commonwealth or State support

Agent or Self-Insurer

Upon receipt of information, determine ongoing entitlements.

  • Advise the guardian the weekly pension will: continue until the child or orphan child’s reaches 25 years of age; or

  • cease as the child or orphan child does not have a disability as defined

Agent or Self-Insurer Process any entitlement to a weekly pension.
Dependant’s change of circumstances – effect on other dependants

When a dependant’s entitlement to a weekly pension changes (for example, the dependant is no longer entitled to a weekly pension or a child returns to full-time study after age 16), this may affect the pension rate of the other dependants.

The Agent or self-insurer must review the calculation of pension rates for the remaining dependants when:

  • the total of pensions paid in a week was capped at the current statutory maximum of $2,150 for claims lodged before 4 April 2010

  • the pension rates were based on a formula.

A dependency claim is lodged on 1 August 2009 for a death that occurred a week earlier. The PIAWE of the deceased worker are $2,350 (no overtime or shift allowances included). As the claim was lodged before 5 April 2010, the statutory maximum at that time is $1,300.

During first 3 years after the date of death (post 13 weeks)

The initial pension rate for a partner and 6 dependent children is:

  • $865 (2/3 of statutory maximum) for a partner

  • $430 (1/3 of statutory maximum)/6 = $72 for each child.

Note: Total pension payment for the family is capped at the statutory maximum.

After 3 years - partner no longer eligible

The pension rate for 6 dependent children is:

  • $588 (25% of PIAWE)/6 = $98 for each child.

After 3 years – partner and 1 child no longer eligible

The pension rate for the remaining 5 dependent children is:

  • $2,350 x 5% (5% of PIAWE) = $118 for each child.

A dependency claim is lodged on 15 May 2010 for a death that occurred a week earlier. The PIAWE of the deceased worker are $2,350 (no overtime or shift allowances included). The statutory maximum at that time is $1,760 (twice the State average weekly earnings).

During first 3 years after the date of death (post 13 weeks)

The initial pension rate for a partner and 6 dependent children is:

  • $1,170 (2/3 of statutory maximum) for a partner

  • $587 (1/3 of statutory maximum)/6 = $98 for each child.

Note: Total pension payment for the family is capped at the statutory maximum.

After 3 years - partner no longer eligible

The pension rate for 6 dependent children is:

  • $588 (25% of PIAWE)/6 = $98 for each child.

After 3 years – partner and 1 child no longer eligible

The pension rate for the remaining 5 children is:

$2,350 x 5% (5% of PIAWE) = $118 for each child.

Other income during payment term

The entitlement of a dependent partner, child or orphan child to a weekly pension is not affected by any income they receive during this time.

Any change to the dependent partner’s marital status does not affect the entitlement to a weekly pension.

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