Loss of Earnings Benefits
The TAC will pay Loss of Earnings (LOE) benefits to a client who qualifies as an earner and suffers a loss of earnings as a result of or materially contributed to by his/her transport accident injuries. LOE benefits are payable while the client has a loss of earnings due to their accident injuries, subject to the time limits described below.
A client's loss of earnings will be assessed differently depending on his/her date of accident. There are two methods of assessment that are outlined under the question, 'How are Loss of Earnings Benefits Assessed?'
What are LOE benefits?
LOE benefits are compensation in the form of a fortnightly payment payable to a client who has incurred a loss of earnings in the first 18 months after the accident, or 18 months after an injury first manifests itself, while they have an incapacity to work due to their transport accident injuries. The TAC can also pay an interim LOE payment to a client in order to provide immediate financial assistance while their eligibility for LOE benefits is assessed, for further information about the interim payment please refer to the Interim Loss of Earnings policy.
The amount of the LOE benefit is based on a calculation of a client's 'pre-accident weekly earnings' (PAWE). Refer to PAWE for Accidents on or after 1 January 2005, or PAWE for Accidents on or before 31 December 2004.
LOE benefits may be a total or partial payment, depending on whether the client's loss attributable to the transport accident is total or partial.
The TAC will index the client's loss of earnings benefit at the beginning of each financial year, where there has been a rise in the Average Weekly Earnings (AWE) of all employees in Victoria.
When are LOE payments made?
Once the TAC has accepted a claim for LOE, payments are made by the TAC when a client’s accident injuries prevent them from working and a certificate of capacity has been received which explains what the client can and can’t do because of their injuries. Refer to the Certificate of Capacity policy.
Client's are paid on a fortnightly basis, in arrears (i.e. payments are made for the previous fortnightly period of entitlement).
A client is asked to submit a certificate of capacity to the TAC at least 5 working days before his/her next payment of LOE is due, to allow for the processing of the payment.
Are there any circumstances when a client's LOE payment may be expedited (ie. paid outside his/her normal fortnightly cycle)?
Yes, if a client's regular payment of LOE is overdue and the TAC is satisfied that every effort by the client has been made to submit the information required to allow for the processing of the payment.