South Australian Consolidated Regulations South Australian Consolidated Regulations13—Compensation for loss of earning capacity
(1) For the purposes
of section 42A(2)(c) of the Act, the prescribed discount rate is 3 per cent.
(2) For the purposes
of section 42A(5) of the Act, the principles, and discount and inflation
rates, that are to be applied to determine the actuarial equivalence of equal
instalments to a lump sum are reflected in the following formula:
Where—
"X" is the amount of each instalment
"K" equals "K" equals
"M" is the number of instalments to be paid per year or, if the instalments
are to be paid less frequently than annually, M is an amount calculated as
follows:
"I" is the prescribed discount rate (expressed as a decimal number) plus the
prescribed inflation rate (expressed as a decimal number) for the period to
which the assessment relates (see subregulation (3))
"P" is the lump sum assessment of capital loss
"N" is the total number of instalments to be paid over the period to which the
assessment relates.
(3) For the purposes
of subregulation (2)—
(a) the
prescribed discount rate is 3 per cent; and
(b) the
prescribed inflation rate is the annual change (expressed as a percentage) in
the Wage Cost Index, referenced to persons and South Australia, or its
replacement, as published by the Commonwealth Statistician for September in
the year immediately preceding the year in which the assessment is made.