28Compensation for injuries resulting in incapacity—covered current members

28  Compensation for injuries resulting in incapacity—covered current members

 (1) This section applies to a covered person who is:

 (a) a covered current member; and

 (b) incapacitated for work as a result of an injury;

 (2) Subject to this Part, the Commonwealth is liable to pay to the covered person in respect of the injury, for each week that is a maximum rate compensation week during which the covered person is incapacitated, an amount of compensation worked out using the formula:

AE is the total amount of relevant allowance or salary to which the covered person is entitled in relation to the week.

 (3) For the purposes of subsection (2), a week is a maximum rate compensation week, in relation to a covered person to whom this section applies, if:

 (a) it is a week during which the covered person suffers a reduction in a relevant allowance or salary as a result of the incapacity; and

 (b) it is not a reduced rate compensation week.

 (4) If the payment of an amount to the covered person under subsection (2) in respect of a week would result in the total amount paid to the covered person under subsection (2) in relation to the injury exceeding 45 times the covered person’s normal weekly earnings by an amount (the excess amount), then that week and each later week during which the covered person suffers a reduction in a relevant allowance or salary as a result of the incapacity is, for the purposes of this section, a reduced rate compensation week in relation to the covered person and the incapacity.

 (5) Subject to this Part, the Commonwealth is liable to pay compensation to the covered person, in respect of the injury, for each reduced rate compensation week during which the covered person is incapacitated, an amount calculated using the formula in subsection (2) with:

 (a) for the first reduced rate compensation week—the reduction (if any) required by subsection (6); or

 (b) for each later reduced rate compensation week—the reductions (if any) required by subsections (7) and (8).

 (6) For the first reduced rate compensation week, the amount payable under subsection (5) must be reduced by the amount worked out using the formula:

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maximum rate compensation amount means the amount that would be payable in respect of the week if it were a maximum rate compensation week in relation to the covered person.

total reductions means the total amount (which may be nil) by which the amount of compensation payable under subsection (5) in respect of the week would be reduced under subsections (7) and (8) if this subsection did not apply in relation to the week.