New workers compensation regulation to clarify COVID-19 and JobKeeper impacts on PIAWE and weekly payments

The Workers Compensation Amendment (COVID-19 Weekly Payment Compensation) Regulation 2020 commenced on Friday 23 October 2020.

This Regulation clarifies how JobKeeper payments and other COVID-19 impacts on a worker’s earnings are treated when calculating weekly payments and pre-injury average weekly earnings (PIAWE).

The changes mean that:

• in calculating PIAWE, an adjustment may be made to the relevant earning period if a worker has had a financially material reduction in earnings due to the pandemic
• only earnings for work performed may be included in the calculation of PIAWE
• in calculating weekly payments, JobKeeper payments are included in the ‘current weekly earnings’ of a worker.

The Regulation also provides for a 10 per cent uplift in recoverable legal costs under Schedule 6 of the Workers Compensation Regulation 2016.

For more information on how to apply the changes, refer to the SIRA Claims management guide.