Is Super Paid on Workers Compensation?

Superannuation is the money you put away for when you reach retirement age. Your employer pays your super contributions into a specified super account. This is over and above your salary or wages.

If your working ability has been decreased or diminished due to disability, injury or illness you could have a right to a lump sum or monthly payments. This will be in accordance to your superannuation or insurance policy.

Do You Still Receive Superannuation During Workers Compensation?

It is likely that your super and insurance company has a policy that will cover you:

  • If a disability prevents you from working,
  • In the event of injury or
  • Due to illness for at least three months.

To discover if you are able to submit a super claim, your starting point is to read your policy to check for eligibility. Understanding insurance policies is usually a difficult task.

It is best to visit a lawyer who can go through the policy and give you advice on whether you are eligible and to what extent.

How Super Works When on Workers Compensation

You could be entitled to a super claim if you have a work-related injury or illness and you have not been able to work for three months.

The following requirements must be met:

  • Your employer must have been making mandatory super contributions.
  • You must be covered by income protection or disability insurance.
  • A person who you relied on financially (such as a parent or partner) has died and you are wanting to claim death benefits from their super or insurance company.

If you are receiving a worker's compensation payment and you want to know if you have a super claim you should speak to Smith's Lawyers for further guidance. We offer a No win, No Fee, No Catch promise so there is no risk to you.

Requirements for Making a Superannuation or Insurance Claim

The requirements for claims differ in accordance with the type of compensation claim you are making.

For Total or Permanent Disability (TPD) claims you must prove that the reason why you cannot perform your job is due to your work-related injury or illness. You must also show that you are unable to do any other job for which you have the qualifications, training, or skills. It is unnecessary to prove that your injury or illness was the fault of someone else.

For income protection claims the following needs to be proven:

  • You are unable to do your job.
  • You are under a doctor's supervision and treatment.
  • You are not earning wages or an income.

The majority of insurer benefit claims take anywhere from twelve to eighteen months for the fund or insurer to assess your claim. In straightforward cases, the claim could be assessed earlier – it all depends on the circumstances surrounding your case.

The requirement for claiming benefits vary according to the policy. Therefore, you should make getting personal injury law advice a priority.

Can I Appeal a Rejected Claim?

Super funds and insurers might not reach the correct decision regarding the merits of your claim. If a fund or insurer has thrown out your claim, you are entitled to appeal their decision. They will then need to go through a formal review process. You can submit new evidence in favour of your claim at this point.

If your claim is rejected once more, you have an opportunity to appeal your claim in court and get a better outcome.

If you choose this route, it would be in your best interest to instruct your lawyer to fight this matter on your behalf. Lawyers are familiar with the applicable legislation and processes.

Costs of Making a Compensation Claim

Smith's Lawyers work on a no-win, no-fee, no-no-catch basis. In the highly unlikely case that you are unsuccessful in court, we will take on all costs. That means that you won't be liable to us or anyone else.

Understanding Superannuation

It is important to understand superannuation at a grassroots level before looking at the legality of your claim.

Who Is Eligible?

As per the superannuation guarantee, employers are obliged to pay superannuation of 10.5% of the employee's ordinary time earnings.

In order to qualify for the superannuation guarantee, these requirements need to be met:

  1. The worker must be above 18 years old; or
  2. They must be below 18 years old but working in excess of 30 hours a week.

If these requirements are met, then the super guarantee is applicable to every worker. Workers can be any of the below mentioned:

  1. Full-time workers.
  2. Part-time workers.
  3. Casuals.

Temporary residents are also covered by the superannuation guarantee.

Employers need to pay superannuation a minimum of once every three months and into the employees' specified accounts. The Australian Tax Office (ATO) can offer guidance on any superannuation challenges and this includes the super guarantee.

Certain modern awards and agreements have additional provisions related to superannuation contributions.

The Fair Work Ombudsman gives employers and employees information and assistance on workplace entitlements and responsibilities as outlined in the Fair Work Act. They also have guidelines on additional provisions about superannuation in awards.

Superannuation Fund Form

Employers must use a superannuation fund form to allow eligible employees to pick their super funds. The employer must provide information on the chosen super fund or default fund prior to giving it back to the employee.

Employees must use the form to let the employer know which super fund they prefer. The employees must provide the details so that their employer can make superannuation contributions to their chosen fund.

Employer superannuation contribution

Employers have to pay their workers at least the superannuation guarantee charge rate multiplied by their ordinary time earnings into the chosen super account.

Ordinary time earnings are typically your salary plus all allowances that are not expenses that need to be reimbursed, less overtime allowances.

Queensland Government superannuation contribution

The Queensland Government offers a greater percentage (12.75%) of superannuable salary as an employee contribution. However, you must also make a contribution from your salary (5%). Police officers who reach retirement age at 60 get an even higher percentage (18%) providing they make a contribution of 6%.

You get your superannuable salary by taking your base salary and adding any approved allowance. This might be less than your ordinary time earnings. Some limits may apply to this calculation.

Alter Your Employee Superannuation Contribution

The Queensland Government gives you a standard employer and employee super contribution. You can choose to increase or decrease your employee contribution. However, this may have tax implications and affect your employer's contribution.

Before your choose to do this you should contact a legal expert so that you can fully understand the legal ramifications.

When Superannuation Contributions Have Not Been Paid

Employees who have reason to believe that super has not been paid can lay a complaint to the ATO.

Before you lay a claim, make sure the following is done:

  1. Understand the applicable modern award or registered agreement governing your employment.
  2. See if your award or agreement has additional terms related to super.
  3. Find out from your super fund if your employer has paid for superannuation.
  4. Have a conversation with your employer regarding any questions, concerns, or queries.

If there are additional superannuation terms over and above the super guarantee in your award or agreement, you can contact Smith's Lawyers to explain your legal position.

What Are My Entitlements When Receiving Super on Work Cover?

The amount that you can claim is dependant on your health status and stipulations listed in your insurance policy.

The majority of policies are created to offset your financial losses as a result of being laid off work. These payments will either be a lump sum or on a monthly basis.

WorkCover makes workers' compensation payments if you have a work-related injury or illness. WorkCover does not provide for superannuation deductions.

For insurance and superannuation claims, the insurer pays out benefits. In certain instances, this takes place through your life insurer, super fund, employer illness, and accident insurer, and also your mortgage and credit card insurance companies.

What To Do if Still Unsure

Understanding superannuation is a difficult task. This is further complicated when you have a work-related illness or injury. You will need to look through your award and agreement to see how being injured affects your superannuation.

If this sounds overwhelming and daunting, do not fear. We are here to help.

Smith's Lawyers can assist you with understanding the below:

  • Understanding the type of insurance you have.
  • Your current predicament.
  • The approximate worth of your claim.

Most importantly we can expedite the process to give you peace of mind and certainty about your financial security.

Getting guidance from a compensation lawyer can be quite expensive. However, Smith's Lawyers offer a No win, No Fee, No Catch promise which frees our clients from any financial risk. In over 25 years, we have never had a client out of pocket.

Contact us now for any guidance on receiving workers' compensation payments and how it affects your ability to receive super contributions.

Disclaimer: This information is designed for general information in relation to Queensland compensation law. It does not constitute legal advice. We strongly recommend you seek legal advice in regards to your specific situation. For help understanding your rights, please call 1800 960 482 or chat via live chat to talk to one of our Lawyers today.

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