FAQ – RTWSA Psychological Claims – income support beyond 52 weeks (the second year)
If you’re still getting any income support, and you are coming up to 52 weeks or already into your second year here is what you need to know.
What happens to my income support after 52 weeks?
After 52 weeks, RTWSA income support generally reduces from 100% to 80% of the difference between your Notional Weekly Earnings and your current earnings.
Is there any point working if I earn less than 80%?
Yes.
The RTWSA legislation is sensible here.
They want to incentivise you to work and earn money, and they make sure it’s worth your while (at least a little bit).
This happens in three ways.
First of all, the income support you get during a RTWSA claim generally does NOT include Superannuation payments (some awards or enterprise agreements provide additional entitlements.) Super will generally be payable on wages earned when you return to work.
Secondly, annual leave may no longer accumulate. If you have received weekly payments for total incapacity for at least 52 weeks, your employer’s obligation to provide annual leave for the relevant employment year is treated as having been satisfied, although annual-leave loading may still be payable.
Thirdly, and most importantly, any money you do earn does increase your income to ABOVE the 80%.
This is an example from the RTWSA Claims Specialist information for gross income (before tax):
Wage reimbursements
When confirming the step down in a customer’s Notional Weekly Earning with an employer, always make sure they understand how the reimbursements are calculated following a reduction.
Totally incapacitated:
100% NWE: $1,000
Less 20%: $200
Income support: $800
Partially incapacitated:
100% NWE: $1,000
Less earnings: $200
Difference: $800
× 80%: $640
The worker receives $640 income support plus $200 wages, giving them a total weekly income of $840—not $800. They are therefore $40 per week better off by working.
Will I be notified of these changes?
Yes, you should be sent an official letter before the one year date.
This is an example of the current EML information for the RTWSA second-year of income-support:
Is this actually in the RTWSA Legislation?
Yes it actually is in the legislation – Return to Work Act 2014.
Look up S. 39 (1) (b) (i);(ii) where it says:
… Subdivision 2—Entitlement to weekly payments
… 39—Weekly payments over designated periods for workers other than seriously injured workers
… … (1)
… … … (b)
… … … … (i) for any period during the second designated period when the worker has no current work capacity—the worker is entitled to weekly payments equal to 80% of the worker’s notional weekly earnings; and
… … … … (ii) for any period during the second designated period when the worker has a current work capacity—the worker is entitled to weekly payments equal to 80% of the difference [my emphasis] between the worker’s notional weekly earnings and the worker’s designated weekly earnings.
For a psychological claim, does income support go on forever?
No.
It continues only for the time of the “second designated period” which is a further 52 weeks for a total of 104 weeks (S. 39 (3))
… … (3) A worker has no entitlement to weekly payments under this section in respect of a work injury after the end of the period of 104 weeks from the date on which the incapacity for work first occurs (that is, after the end of the second designated period).
What about my medical expenses?
The medical expenses remain just as compensable as before during the period of income support, and then for a further 12 months after income support ceases.