Commonwealth Numbered Acts

SOCIAL SECURITY ACT 1991 No. 46, 1991 - SECT 17

17. (1) In this Act, unless the contrary intention appears:

"average weekly earnings", in relation to a lump sum preclusion period, means
the amount:

   (a)  estimated as the average total weekly earnings, during a particular
        month, of all male employees in Australia; and

   (b)  last published by the Australian Statistician before the lump sum
        compensation payment became payable;
Note: for "lump sum preclusion period" see subsections 1165 (3) to (6).

"compensation" has the meaning given by subsection (2);

"compensation part", in relation to a lump sum compensation payment, has the
meaning given by subsections (3) and (4);

"compensation payer" means:

   (a)  a person who is liable to make a compensation payment; or

   (b)  an authority of a State or Territory that has determined that it will
        make a payment by way of compensation to another person, whether or
        not the authority is liable to make the payment;

"payment for a period" has the meaning given by subsection (7);

"periodic payments period", in relation to a series of periodic payments,
means the period in respect of which the payments are, or are to be, made;

"potential compensation payer" means a person who, in the Secretary's opinion,
may become a compensation payer;

"receives compensation" has the meaning given by subsection (5). Compensation

(2) For the purposes of this Act, compensation means:

   (a)  a payment of damages; or

   (b)  a payment under a scheme of insurance or compensation under a
        Commonwealth, State or Territory law, including a payment under a
        contract entered into under such a scheme; or

   (c)  a payment (with or without admission of liability) in settlement of a
        claim for damages or a claim under such an insurance scheme; or

   (d)  any other compensation or damages payment, other than a payment to
        which the recipient has contributed; (whether the payment is in the
        form of the whole or part of a lump sum or in the form of a series of
        periodic payments) that is:

   (e)  made wholly or partly in respect of lost earnings or lost capacity to
        earn; and

   (f)  made either within or outside Australia. Compensation part of a lump
        sum

(3) For the purposes of this Act, the compensation part of a lump sum
compensation payment is:

   (a)  50% of the payment if the following circumstances apply:

   (i)  the payment is made (either with or without admission of liability) in
        settlement of a claim that is, in whole or in part, related to disease
        or injury; and

   (ii) the claim was settled, either by consent judgment being entered in
        respect of the settlement or otherwise, on or after 9 February 1988;
        or

   (b)  if those circumstances do not apply - so much of the payment as is, in
        the Secretary's opinion, in respect of lost earnings or lost capacity
        to earn.

(4) Where a person:

   (a)  has received periodic compensation payments in respect of lost
        earnings or lost capacity to earn; and

   (b)  after receiving those payments, receives a lump sum compensation
        payment in respect of the lost earnings or lost capacity to earn (in
        this subsection called the "LSP"); and

   (c)  because of receiving the LSP, becomes liable to repay an amount (in
this subsection called the Repaid Periodic Compensation Payment - "RPCP")
equal to the periodic compensation payments received; then, for the purposes
of subsection (3), the amount of the lump sum compensation payment is:
LSP - RPCP Receives compensation

(5) A person receives compensation whether he or she receives it directly or
whether another person receives it, on behalf of, or at the direction of the
first person. Insurer

(6) A reference in Part 3.14 to an insurer who is, under a contract of
insurance, liable to indemnify a compensation payer or a potential
compensation payer against a liability arising from a claim for compensation
includes a reference to:

   (a)  an authority of a State or Territory that is liable to indemnify a
        compensation payer against such a liability, whether the authority is
        so liable under a contract, a law or otherwise; or

   (b)  an authority of a State or Territory that determines to make a payment
        to indemnify a compensation payer against such a liability, whether or
        not the authority is liable to do so. Payment for a period

(7) A reference in Part 3.14 to a person receiving a payment for a period is a
reference to:

   (a)  where the payment is a pension payment - a person receiving a payment
        during the period; or

   (b)  where the payment is a benefit payment - a person receiving the
        payment in respect of the period; or

   (c)  where the payment is a sheltered employment allowance - a person
        receiving the payment during the period; or

   (d)  where the payment is a rehabilitation allowance - a person receiving
        the payment during the period.