The department has considered three options to address this issue. Option Two is currently the department’s preferred option for inclusion in the Bill. — Under this option, no changes would be made to the definition of rate compensation “maximum week” in section 19(2A) of the SRC Act. An injured employee’s 45 weeks of compensation at 100 per cent of their normal weekly earnings would continue to be calculated based on the total hours they receive incapacity payments for. This reduces the effectiveness of the step-down arrangements and acts as a disincentive for early return-to-work. Under this option, the definition of rate compensation week” in section 19(2A) of the “maximum SRC Act would be amended so that the 45 week period is 45 consecutive calendar weeks from the date of first incapacity. Incapacity payment provisions also be streamlined by repealing section 37(5) of the SRC Act. Section 37(5) makes provisions for payments for employees undertaking and “full-time” “part-time” rehabilitation programs, but does not define what is meant by these programs and is redundant since payments are currently made under other sections of the SRC Act (sections 19 and 31). These measures were recommended in the Hanks Review. — The 2012-13 Hanks Review of the SRC Act went further than recommending changes to the way a week was calculated for the 45 week step-down. It also recommended changes to the structure of stepdowns and payment of income replacement benefits, as outlined below. Percentage of normal weekly earnings Weeks incapacitated received 0-13 100 % 14-26 90 % 27 + 80 % This option involves implementing Option Two plus the remaining Hanks Review recommendations outlined above. This impact analysis considers the impact of the changes beyond the status quo.
The department has considered three options to address this issue. Option Two is currently the department’s preferred option for inclusion in the Bill. — Under this option, no changes would be made to the definition of “maximum rate compensation week” in section 19(2A) of the SRC Act. An injured employee’s 45 weeks of compensation at 100 per cent of their normal weekly earnings would continue to be calculated based on the total hours they receive incapacity payments for. This reduces the effectiveness of the step-down arrangements and acts as a disincentive for early return-to-work. Under this option, the definition of “maximum rate compensation week” in section 19(2A) of the SRC Act would be amended so that the 45 week period is 45 consecutive calendar weeks from the date of first incapacity. Incapacity payment provisions also be streamlined by repealing section 37(5) of the SRC Act. Section 37(5) makes provisions for payments for employees undertaking “full-time” and “part-time” rehabilitation programs, but does not define what is meant by these programs and is redundant since payments are currently made under other sections of the SRC Act (sections 19 and 31). These measures were recommended in the Hanks Review. — The 2012-13 Hanks Review of the SRC Act went further than recommending changes to the way a week was calculated for the 45 week step-down. It also recommended changes to the structure of stepdowns and payment of income replacement benefits, as outlined below. Weeks incapacitated Percentage of normal weekly earnings received 0-13 100 % 14-26 90 % 27 + 80 % This option involves implementing Option Two plus the remaining Hanks Review recommendations outlined above. This impact analysis considers the impact of the changes beyond the status quo.
src_act_ris_consultation_draft.docx