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.

AC s92B

WIRC s241

AC s92C

WIRC s242

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

a Tax File Number Declaration Form
bank account details (if electing for electronic funds transfer - EFT)
proof of full-time Full-time worker means a worker who is employed for at least the normal number of hours fixed in any industrial award applicable to the worker or if there is no applicable award the prescribed number of hours studies, full-time apprenticeship or living with a disability (as defined) for a child over the age of 16 years.

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 $1,960

on or after 5 April 2010, the total of pensions paid in a week to all dependants must not exceed the current maximum of $2,660 (twice the State average weekly earnings).

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 $2,660 (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).

Proof of living with a disability

Disability in relation to a person mean -

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
an intellectual disability; or
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

Specialist multi-disciplinary team (paediatrician, psychiatrist or clinical psychologist Registered psychologist means a person registered under the Health Practitioner Regulation National Law to practise in the psychology profession (other than as a student).) to assess autism
Psychologist
Occupational therapist
Speech Pathologist
Neurologist
Other specialist.

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 $1,960 for claims lodged before 4 April 2010

the total of pensions paid in a week was capped at the current statutory maximum of $2,660 (twice the State average weekly earnings) for claims lodged on or after 5 April 2010 or

the pension rates were based on a formula.

Example 1

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.