Pay weekly pension

Payment of weekly pensions to the deceased worker’s dependants must start within 14 days of the amount being determined by agreement between an Agent (via panel firm) and legal representative/dependent or by a court and continue to be made, subject to eligibility, either fortnightly, monthly, quarterly or annually.


In order to be paid correctly, each dependant must provide:

Deductions from weekly pension

Taxation

Weekly pensions are subject to tax under Australian taxation laws.

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 TFN Declaration form and Electronic Declaration form (where applicable), whichever is the latter
  • ongoing payments are made more than seven days after the due date.

Interest is paid at the prescribed rate.

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.

Interest payments are subject to Australian taxation laws.

See: Impact of taxation

Limit on total of weekly pensions

For claims lodged:

  • before 5 April 2010, the total of pensions paid in a week to all dependants must not exceed the current maximum of $1,910

See: Indexation of entitlements (weekly pension)

Limit on total of weekly pensions for claims lodged on or after 5 April 2010

The total of pensions paid in a week to either the:

  • dependent partner/s
  • dependent partner/s and dependent child/ren
  • dependent orphan/s

must not exceed the current maximum of $2,590 (twice the State average weekly earnings).

Payments to a child under 18 years of age

Pension payments to a child under the age of 18 years are paid to a trustee for the child.

Payments to a child between 16-25 years

Pension payments to a child or orphan child aged between 16-25 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).

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 $1,910 for claims lodged before 4 April 2010

  • the total of pensions paid in a week was capped at the current statutory maximum of $2,590 (twice the State average weekly earnings) for claims lodged on or after 5 April 2010 or

  • the pension rates were based on a formula.