SE v Crown Equipment Pty Limited [2025] TASCAT 195 (10 October 2025)

The Tasmanian Civil and Administrative Tribunal has clarified how section 86(1)(b) of the Workers Rehabilitation and Compensation Act 1988 operates. The case involved a worker whose weekly payments were permanently terminated after earning above their compensation rate for several weeks while on suitable duties.

In the past, a common approach to s86(1)(b) was that once a worker earned above their weekly compensation rate, weekly payments could be permanently ceased. To resume payments, the worker typically had to lodge a section 42 referral and prove ongoing entitlement before the Tribunal.

However, in this case the Tribunal held that section 86(1)(b) only allows an employer to reduce or stop weekly payments for the period in which the worker’s earnings exceed the weekly payment figure. It does not permit a permanent termination. If the worker’s earnings later fall below that figure and medical certification continues, weekly payments must resume without a new claim or referral.

The Tribunal ordered reinstatement of weekly payments from the date they were ceased.

Key implications:

• Weekly payments fluctuate with earnings. A temporary increase in earnings affects that week only.
• Employers cannot rely on section 86(1)(b) to permanently end weekly payments.
• If employers wish to terminate a worker’s entitlement to weekly payments they will need to use section 86(1)(c) or seek a review under section 88.
• Cases in which s86(1)(b) has been relied upon to terminate a worker’s entitlement to weekly payments of compensation will need to be reviewed.