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Legal Forums » Workers Compensation Law Forum » Workers’ compensation and superannuation
Started Jan 05 2013, 19:17
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Jan 05 2013, 19:17
Under the ‘superannuation-offset provisions’ of the SRC Act, the incapacity payments of workers are affected by their receipt of superannuation.The effect of the retirement income system and, in particular, superannuation, on workforce participation is considered in Chapter Eight of this Discussion Paper. However, in the context of workers’ compensation, the Law Council of Australia expressed concern about the potential disincentive that the treatment of superannuation payments in the calculation of incapacity payments may create:
the Commonwealth scheme is the only scheme in Australia to deduct monies received by way of superannuation pension or, based on a formula, a lump sum received by the injured worker from incapacity entitlements. At a policy level, superannuation entitlements ought not to have any effect on compensation entitlements however stakeholder comment is sought on whether it creates a barrier to workforce participation and what changes could be made.
Conversely, the Department of Veterans’ Affairs indicated that, upon separation from the Australian Defence Force, superannuation payments are offset against MRC Act incapacity payments, and expressed the view that ‘this is consistent with the principle that the Government should not make duplicate income maintenance payments to the same person through superannuation and compensation’
In the issues paper released as part of the review of the SRC Act, a number of broad questions were asked about whether the superannuation-offset provisions should be modernised, simplified or amended.The ALRC is interested in specific stakeholder feedback on whether the treatment of superannuation payments in the calculation of incapacity payments under the Commonwealth workers’ compensation system creates a barrier to workforce participation for mature age workers.
ID#43405
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