NATURE OF SCHEME

• provides compensation for death or bodily injury to all transport accident victims without the need to prove somebody else was at fault;
• replaces other forms of compensation including the common law negligence action, except that workers’ compensation and the workers; common law rights (if any) against the employer are not affected;
• all monetary bebefits automatically indexed to movements in Average Weekly Earnings (AWE).

BENEFITS

Periodic Compensation for Loss of Earning Capacity

• cilctilated by reference to the difference between pre-accident and post-accident earning capacity;
• generally paid at 80 per cent of the loss (gross earnings);
• maximum loss compensated is 150 per cent of AWE ($630 at June 1984), so that maximum compensation actually payable is $504 (80 per cent of $630);
• private top-up insurance is available;
• as an incentive to resumption of employment, the percentage of compensation is increased (up to 100 per cent) if accident victim undertakes part-time employment;
• payable after five working days;
• special provision for self-employed;
• victims suffering long-term incapacity (more than 104 weeks) deemed to have notional or minimum earning capacity of 50 per cent of AWE ($210 if over 21), so that minimum compensation for total incapacity is $168 (80 per cent of $210)
• notional earning capacity applies to non-earners suffering long-term incapacity regardless of intention to return to workforce;
• both carriers and non-earners suffering long-term incapacity entitled to compensation for loss of “potential for advancement” (that is, likely increases in earning capacity had the accident not occurred);
• assessment of permanent incapacity can be made to relieve accident victims of the need to undergo regular reassessment.

Rehabilitation

• highest priority after accident prevention;
• right to prompt and effective rehabilitation;
• variety of measures to promote medical, functional, vocational and social rehabilitation, including incentives to employers to retain or engage disabled people;
• provision of aids and appliances such as wheelchairs and prosthetics.

Support Services

• replacement household services for the accident victim and his or her family;
• emergency family supports;
• attendant care required by disabled people;
• home modifications;
• mobility allowance and vehicle modifications;
• support services are provided in addition to other forms of compensation.

Compensation for Permanent Disability

• lump sum compensation for permanent disability to maximum of 208 times AWE ($87,360 at June 1984);
• amount payable depends on degree of disability and age;
• degree of disability based on “whole person” approach adapted from American Medical Association Guides to the Evaluation of permanent Impairment;
• compensation for permanent disability is in addition to other forms of compensation.

Compensation on Death

• lump sum equivalent of 130 times AWE ($54,600 at June 1984) to dependent family members;
• additional periodic compensation to an earner's surviving spouse who has child care responsibilities or who is unable to resume or undertake employment;
• additional periodic compensation to child of 8 per cent of AWE ($33.60 at June 1984);
• replacement household services;
• reasonable funeral expenses.

Medical, Hospital and Related Expenses

• provision of medical and hospital care;
• integration with existing health care system, in particular Medicare;
• provision of ancillary services (physiotherapy, occupational therapy, dental and optical services and home nursing care) as required;
• nursing home and long-term institutional care.

EXCLUSIONS

• no benefits for self-inflicted injuries or for injuries sustained while committing a serious crime of violence or during periods of imprisonment

ADMINISTRATION AND DECISION-MAKING

The Corporation

• independent statutory authority (Accident Compensation Corporation);
• the Corporation to assist claimants in receiving other statutory entitlements;
• emphasis on speed and high-quality decision-making;
• scrutiny of the Corporation by an independent Policy Review Committee and by Parliament.

Appeals

• full system of appeals from decisions of the Corporation;
• the system emphasises accessibility, informality, expedition and minimisation of cost;
• a two-tiered system, with the first appeal to a three-member Panel and the second to a Tribunal headed by a judge;
• both the Panel and the Tribunal determine claims on the merits and can substitute their views on policy for those of the Corporation;
• representation permitted and provision for costs of successful appellants.

FUNDING

• funds for the Scheme contributed by motor-vehicle owners (in the same way as they now pay third party insurance premiums) and public transport authorities, together with a levy on drivers licences;
• Scheme to operate on a “pay-as-you-go” basis (contributions each year meet actual expenditure in that year);
• estimated cost of the Scheme less than either the current common law system or a “dual” scheme (that is, limited no-fault benefits as a supplement to the common law negligence action).

TRANSITIONAL

• Scheme to apply to all transport accidents after date of commencement;
• residue of common law claims, arising out of accidents before that date, dealt with in the usual way.