6Method of converting lump sum amounts paid under sections 24, 25 and 27 of DRCA into weekly amounts

6 Method of converting lump sum amounts paid under sections 24, 25 and 27 of DRCA into weekly amounts

(1) For the purposes of paragraph 24(3)(b) of the Act, this section sets out the method of converting into a weekly amount the sum of any previous payments of a lump sum to a person under sections 24, 25 and 27 of the DRCA.

Note: Subsection 14(2) of the Act applies regulations made for paragraph 24(3)(b) of the Act (see section 7 of this instrument).

(2) For the purposes of subsection (1), and subject to section 7, the method is: Start formula start fraction Current lump sum amount over Aged based number end fraction end formula where:

aged based number means the person’s life expectancy (in years) worked out using the Australian Life Tables 2015‑17 published by the Australian Government Actuary by reference to:

(a) the person’s age on the day the lump sum amount for the purposes of section 24, 25 or 27 of the DRCA was paid to the person; and
(b) the person’s gender.

Note: The Australian Life Tables 2015‑17 could in 2020 be viewed on the Australian Government Actuary’s website (http://www.aga.gov.au).

current lump sum amount means the amount worked out in accordance with subsection (3).

(3) The current lump sum amount means the amount worked out using the following formula: Start formula Previous lump sum amount times start fraction Maximum amount for the current financial year over Maximum amount for the relevant financial year end fraction end formula where:

maximum amount means the maximum amount specified in subsection 24(9) of the DRCA, as indexed in accordance with section 13 of that Act.

previous lump sum amount means the sum of any amounts previously:

(a) assessed as payable to the person under sections 24, 25 and 27 of the DRCA; and
(b) paid as a lump sum or lump sums.

relevant financial year means the financial year in which an amount of compensation was paid to the person under section 24, 25 or 27 of the DRCA.