Ongoing Considerations for Workers Compensation Claims

TGB’s Barney Gask considers upcoming deadlines and ongoing considerations for workers compensation claims, including when a claim can be ‘closed’.

Our clients have often in the past sought legal assistance in relation to advice they have received from their workers compensation agent that their “claim is closed.”

Under the previous legislation once a claim was accepted by the claims agent the only legal way that the claim could be finalised was through redemption. That has all changed with the introduction of the Return to Work Act 2014 which came in to effect on 1 July 2015.

Injuries that occur AFTER 1 July 2015

The most significant change in the new legislation is the introduction of a “cut off” for weekly payments and medical treatment. For injuries sustained after 1 July 2015 the entitlement to weekly payments runs for 2 years from the date of injury. The entitlement to medical treatment expenses continues for 12 months after weekly payments have ceased, so on the face of it, 3 years from the date of injury.

This does not apply however for injuries resulting in a whole person impairment of 30% or more. Those workers are considered “seriously injured” and are entitled to weekly payments to age 65 (shortly 66 and will ultimately be 67) and medical treatment through life.

Injuries that occurred BEFORE 1 July 2015

For those with injuries sustained before 1 July 2015 the situation is different.

If the worker was in receipt of weekly payments as at 1 July 2015 then the entitlement ceases on 1 July 2017, with medical treatment expenses ceasing on 1 July 2018.

If the worker had no payments as at 1 July 2015 then the entitlement to medical treatment ceases on 1 July 2016. That date is fast approaching.

Importantly, there is an opportunity to obtain approval for any surgery that may be needed in the future but the application for that needs to be made before 1 July 2016.

Is redemption a possibility?

There is still the opportunity to negotiate a redemption. A redemption is a lump sum that finalises the workers entitlement to weekly payments of income maintenance and medical treatment expenses, both past and future. It has been the policy of the workers compensation agents in the past to not pay redemptions but it is something that is currently being offered.

In particular, the agents are offering medical redemptions to many workers to finalise their medical treatment expenses. If you receive an offer it is worthwhile getting advice from a lawyer before it is accepted.

Until now redemptions have been exempt from income tax. That may change after 1 July 2016 considering communications out of the Australian Taxation Office. If you have been offered a redemption recently this is an important consideration and even more reason why legal advice should be sought urgently.

For a free initial interview to find out your rights, contact one of our workers compensation lawyers at your most convenient location.

Tindall Gask Bentley Lawyers is the largest personal injury law firm in South Australia, specialising in workers compensation claims.