Victorian Consolidated Legislation

Accident Compensation Act 1985 - SECT 115B

Calculation of settlement amount

115B. Calculation of settlement amount



(1) The amount of the settlement is the amount resulting from applying the
following formula-

where-

A is-

   (a)  if a declaration under subsection (2) is not in effect, the amount of
        the weekly payment to which the worker is, or, but for the operation
        of section 96(2), would be, entitled as at the notification date less
        the amount that must be withheld from that payment for the purposes of
        the Pay as you go system under Schedule 1 to the
        Taxation Administration Act 1953 of the Commonwealth; or

   (b)  if a declaration under subsection (2) is in effect, the amount of the
        weekly payment to which the worker is, or, but for the operation of
        section 96(2), would be, entitled as at the notification date.

B is the number in Column 2 of Schedule 1 opposite the number in Column 1 of
that Schedule corresponding to the worker's age in years on his or her
birthday next following-

   (a)  if the worker is not receiving payments as a result of the operation
        of section 96(2), the day after the specified period defined in
        section 96(3) expires; or

   (b)  in any other case, the notification date.

(2) The Minister may, by Order published in the Government Gazette, declare
that the meaning of "A" in the formula set out in subsection (1) is the
meaning set out in paragraph (b) of the definition of A.

Note The purpose of this provision is to enable the Minister to respond to
possible policy changes in relation to the taxation of settlement payments by
the Commonwealth Government.

(3) A declaration takes effect on the day after the Order is published, or on
any later day specified in the Order.

(4) In this section notification date means the day on which the Authority or
self-insurer receives an expression of interest from the worker under section
119.