All about WorkCover weekly payments

WorkCover weekly payments are income payments paid to an injured worker if they have an accepted WorkCover claim, and their ability to work has been impacted by an injury.

If you are unable to work or have a restricted work capacity, you may have an entitlement to WorkCover weekly payments.

Weekly payments are based on your pre injury average weekly earnings (PIAWE) figure.

The rest of this page will explore the topic of weekly payments further.

What do I need to do to claim weekly payments?

In order to obtain weekly payments through the WorkCover insurer, you will need to obtain a certificate of capacity from your GP or other health professional.

Most health professionals that you see are able to provide WorkCover certificates, other than psychologists.

It’s always a good idea however to have your GP complete your certificates as you are likely to see them on a regular basis.

Certificates of capacity then need to be provided to the insurance company.

You need to continue to get certificates of capacity as you go along.

If you don’t provide a valid certificate of capacity, you won’t be paid weekly payments (with limited exceptions).

How are they calculated?

Weekly payments are calculated based on your pre injury average weekly earnings (referred to as PIAWE).

Your PIAWE is an average of your earnings over the 52 weeks / 12 months prior to you suffering your injury.

For the first 13 weeks of weekly payments you are paid at 95% of your average earnings.

From the 14th to the 130th weeks you are paid at 80% of the average.

If you are entitled to payments beyond 130 weeks, you are paid at the 80% rate.

WorkCover will not pay the full wages that you would have received but for the injury.

Weekly payments will be indexed annually.

How long do WorkCover payments last?

WorkCover weekly payments will be paid to you provided that you have an ongoing incapacity for employment.

This means that you don’t have a capacity for any work, or only have a capacity for some work.

If your work capacity is not impacted by your work related injury, your weekly payments will cease.

You can get payments for up to 130 weeks.

After 130 weeks, in order to continue to obtain weekly payments you will need to show that you have no work capacity, which is likely to continue indefinately.

WorkCover payments after 52 weeks

Your weekly payments will be reduced after 52 weeks if your initial PIAWE calculation included overtime and/or shift allowances if your WorkCover claim was made on or after 5 April 2010.

If your claim was made before 5 April 2010, you will be entitled to overtime and/or shift allowances for 26 weeks.

WorkCover payments after 130 weeks

There is a significant change in the eligibility test for payments at the 130 week mark.

In order to claim weekly payments prior to 130 weeks you need to be able to show that you can’t do your old job in an unrestricted way. This is based on your certificates of capacity.

After 130 weeks however, you need to show that you do not have a work capacity at all and this is likely to continue into the future.

This is a tough hurdle to get over for a lot of people and it is the reason why many people have their payments terminated at 130 weeks.

It is important to realise however that you are able to challenge the decision to terminate your payments at 130 weeks.

Partial payments after 130 weeks:

In addition to showing that you have no work capacity and that is likely to continue indefinitely, there’s a further way in which you may be entitled to weekly payments after 130 weeks.

If you have a current work capacity but are not able to work to the same extent you were working pre injury, you are able to make an application to the insurer for a determination that your entitlement to weekly payments does not cease.

In order to satisfy the relevant test, you need to have returned to work, whether in self employment or other employment, for no less than 15 hours a week and that you are in receipt of weekly earnings at least $166 a week.

The final thing that you must show that because of the injury, from a medical perspective, you are not likely to be able to undertake further additional employment or increase your weekly earnings.

If you make this application and the insurer knocks you application back, you can proceed to conciliation to appeal the matter or you can make the application again down the track.

Is superannuation paid with weekly payments?

In the first 12 months that you receive weekly payments, unfortunately you will not receive any superannuation payments from the WorkCover insurer.

After that period however, you should start receiving superannuation payments on top of any weekly payments.

After 12 months you should check and make sure that you are receiving superannuation payments from the WorkCover insurer. If you don’t, you should contact the insurer or your lawyer.

You can read more about how superannuation and weekly payments work here.

What happens with payment of weekly payments if I’m certified fit for modified duties?

If after an injury you are certified fit for modified duties, the employer is required to provide suitable employment to the extent that is reasonable for them to do so.

They must offer you suitable employment duties for a period of 52 weeks.

It is your job to comply with your return to work obligations and failure to do so can result in the termination of your weekly payments.

What does ‘suitable employment’ mean?

This means work for which you are suited, taking into regard things such as the work that you were doing prior to suffering the injury, your age education, skills and work experience, where you live, the nature of your injury and what the medical material says about your incapacity, and comments made by any medical practitioners and occupational rehabilitation services.

Suitable employment does not take into account whether the work is actually available.

What about weekly payments being paid after retirement age?

If you’re injured within 130 weeks before after retirement age, you are entitled to weekly payments for not more than the first 130 weeks of incapacity for work.

If the above does not apply to you, but before the age of retirement you suffered an injury at work and you made a claim for compensation in relation that injury and you receive weekly payments within the period of 10 years before you hit retirement age.

And if you became incapacitated for work after retirement age as a result of treatment that you received after the retirement age when you were an inpatient at hospital for the injury and you are not entitled to weekly payments because you’ve hit retirement age, you can apply to the insurer for weekly payments in relation of that incapacity.

You can be paid weekly payments for maximum period of 13 weeks in this instance.

Further reading:

WorkCover claims after retirement age

At what age does WorkCover stop

Will I stop getting payments if I quit my job?

Generally speaking, if you resign while on WorkCover, your weekly payments of compensation should continue if you quit your job but make it clear that the reason you resigned was because of your injury.

If you resign for reasons that are unrelated to the incapacity arising from your work injury, then the WorkCover Insurer could possibly seek to terminate or reduce your weekly payments.

If I am on WorkCover payments can I apply for another job?

You can apply for another job while you’re on WorkCover payments but keep in mind that your WorkCover payments are based on your incapacity.

So, if you’re able to work at your full pre-injury capacity, you’re not likely to be entitled to be paid weekly payments of compensation paid by WorkCover.

If my weekly payments are terminated what can I do?

There are a number of reasons as to why WorkCover may stop your weekly payments.

If your WorkCover Insurer terminate your weekly payments, you’re able to appeal this decision.

The first step, in our opinion, should be to lodge a request for conciliation.

If my weekly payments are reduced and I disagree with the decision, what can I do?

If your WorkCover payments are reduced, your first port of call should be to query this with the insurer and ask them to explain why they were reduced.

If you disagree with their decision, you can appeal the decision to conciliation.

Are WorkCover payments taxed?

Weekly payments are taxable.

Any weekly payments you receive from WorkCover while you have a reduced capacity for work, or are unable to work, are taxable.

Weekly payments are considered income and therefore you will need to declare any weekly payments to the Australia Tax Office.