What it does
The Accident Compensation Act 1985 establishes and governs a statutory scheme for compensating workers in Victoria who suffer injury, disease, or industrial deafness arising out of or in the course of their employment, or due to the nature of that employment. At its core, the Act defines compensable events under s.82(1), which provides that if an injury arises out of or in the course of employment, the worker is entitled to compensation in accordance with the Act. For deaths, s.82(2) extends entitlement to dependants, subject to exclusions such as those in s.82(2A) for mental injuries predominantly caused by reasonable management action.
The Act structures compensation through a series of divisions in Part IV. Division 2 details benefits, including weekly payments calculated by reference to pre-injury average weekly earnings (PIAWE) under ss.5A–5B and 93A–93C. PIAWE is the sum of ordinary earnings over a relevant period (typically 52 weeks under s.5AA) plus any earnings enhancement for overtime or shift allowances (s.5AD). For the first entitlement period (13 weeks for post-1997 claims under s.91E), payments are 95% of PIAWE (s.93A(3)(a)), reducing to 80% in the second period (s.93B(3)(a)). After the second entitlement period, payments continue only if the worker has no current work capacity likely to persist indefinitely and a whole person impairment (WPI) exceeding 20% (s.93C(1)(c)), at 80% of PIAWE (s.93C(2)(d)).
Death benefits under ss.92–92B include lump sums up to $555,350 (indexed under s.100A and s.100C), weekly pensions for dependants at rates such as 95% of PIAWE for the first 13 weeks (s.92B(3)(a)), and provisional payments under s.92D for immediate support. Non-economic loss compensation under s.98C is calculated using formulas based on WPI assessed per s.91, with amounts ranging from zero for WPI below 10% to $555,350 for WPI above 80%. For industrial deafness, ss.88–90 and Sch. 3A provide specific maims compensation, with further loss assessed under s.89(3) as the difference between current and prior binaural hearing loss converted per s.91(3).