Summary of changes - Workers Compensation Legislation Amendment (Benefits) Act 2008

The Workers Compensation Legislation Amendment (Benefits) Act 2008 introduced amendments to the Workers Compensation Act 1987. The amendments included changes:

> to death benefits

> enabling the introduction of an optional alternative premium calculation method.

Changes to death benefits

The Workers Compensation Legislation Amendment (Benefits) Act 2008:

>  increased the lump sum death benefit to $425,000

 > allows the lump sum benefit to be paid to a worker's estate where the deceased leaves no dependants

 > ensures that weekly payments to a dependant are not reduced because of partial dependency.

However, partial dependency may still be taken into account when apportioning the lump sum between multiple dependants.

These reforms are retrospective and apply to deaths that occur on or after 24 October 2007, and are as a result of workplace injuries that occurred on or after 30 June 1987.

These reforms do not apply to death benefit entitlements under the Workers Compensation (Dust Diseases) Act 1942 or for injuries that occurred before 30 June 1987.

Introduction of an optional alternative premium calculation method

The Workers Compensation Legislation Amendment (Benefits) Act 2008:

included changes required for WorkCover to obtain a bank guarantee or other security from employers that enter an alternative premium arrangement.

This is a necessary and important step towards the introduction of the alternative premium calculation method within the NSW WorkCover Scheme. Work is currently being undertaken to have the necessary regulations, procedures and internal infrastructure in place to offer the alternative calculation premium method from 30 June 2009.