An Act to amend the Workers Compensation Act 1987 to provide for an increase in certain benefits paid to workers who receive injuries that result in permanent impairment; and for related purposes.
1 Name of Act
This Act is the Workers Compensation Amendment (Permanent Impairment Benefits) Act 2006.
2 Commencement
This Act commences on 1 January 2007.
3 Amendment of Workers Compensation Act 1987 No 70
The Workers Compensation Act 1987 is amended as set out in Schedule 1.
4 Repeal of Act
(1) This Act is repealed on the day following the day on which this Act commences.(2) The repeal of this Act does not, because of the operation of section 30 of the Interpretation Act 1987, affect any amendment made by this Act.
Schedule 1 Amendments
(Section 3)
[1] Section 66 Entitlement to compensation for permanent impairment
Omit “$1,250” from section 66 (2) (a). Insert instead “$1,375”.
[2] Section 66 (2) (b)
Omit “$12,500”. Insert instead “$13,750”.
[3] Section 66 (2) (b)
Omit “$1,500”. Insert instead “$1,650”.
[4] Section 66 (2) (c)
Omit “$27,500”. Insert instead “$30,250”.
[5] Section 66 (2) (c)
Omit “$2,500”. Insert instead “$2,750”.
[6] Section 66 (2) (d)
Omit “$77,500”. Insert instead “$85,250”.
[7] Section 66 (2) (d)
Omit “$3,500”. Insert instead “$3,850”.
[8] Section 66 (2) (e)
Omit “$200,000”. Insert instead “$220,000”.
[9] Section 66 (2A), Examples 1 and 2
Omit the examples. Insert instead:Example 1—A person suffers 10% permanent impairment. Under subsection (2), the amount of permanent impairment compensation to which he or she is entitled is $13,750 (10 × $1,375). If the whole of the impairment is to the back, the compensation payable in relation to the back will be the whole $13,750. Under this subsection, that $13,750 will be increased by 5%, yielding $14,437.50.Example 2—A person suffers 50% permanent impairment. Under subsection (2), the amount of permanent impairment compensation to which he or she is entitled is $123,750 ($85,250 + (10 × $3,850)). If two-thirds of the impairment is to the back, the compensation payable in relation to the back will be two-thirds of $123,750, or $82,500. Under this subsection, that $82,500 will be increased by 5%, yielding $86,625. The total compensation payable for the impairment will therefore be $127,875.
[10] Schedule 6 Savings, transitional and other provisions
Omit the heading to Part 6. Insert instead:Part 6 Provisions relating to compensation for non-economic loss
[11] Schedule 6, Part 6
Insert after clause 20:21 2006 amendments to section 66 relating to permanent impairment benefitsSection 66, as amended by the Workers Compensation Amendment (Permanent Impairment Benefits) Act 2006:(a) applies to a worker who receives an injury on or after the date of commencement of that Act (being 1 January 2007), and(b) does not apply to a worker who received an injury before that date.
[12] Schedule 6, Part 20
Insert at the end of clause 1 (1):