The Territory Labor Government has passed legislation that ensures a fairer Motor Accident Compensation (MAC) Scheme for local seniors.

The range of benefits offered by the MAC Scheme to those injured in motor accidents includes a raft of things including hospital costs, rehabilitation benefits, medical benefits and weekly compensation benefits (known as ‘loss of earning capacity’ benefits).

Of these, only the ‘loss of earning capacity’ benefit ceases on attainment of the Commonwealth Pension Age (which has been the case since commencement of the MAC Scheme in 1979).

The legislation means claimants who have reached or exceeded the Commonwealth Pension Age will no longer be excluded from loss of earning capacity benefits and will instead be eligible for up to two years. 

Under the MAC Scheme, the maximum amount paid is prescribed under the Motor Accidents (Compensation) Act as 85 per cent of average weekly earnings (as at 1 January, this is $965.98).

The legislation responds to concerns raised by senior Territorians and provides a more contemporary scheme for all Territorians.

Treasurer Nicole Mansion said:

“The Territory operates a generous no-fault motor accident scheme, where Territorians do not have to prove an accident was due to the fault of another person before receiving compensation.

“This legislation provides a fairer scheme for our seniors, striking a sensible balance between ensuring reasonable compensation for all injured people, and affordable premiums for Territory motorists.

“It provides a safety net to support our senior Territorians back to work and health – ensuring they will receive loss of earning capacity benefits while they recover and return to work, or transition to retirement.

“We all value the contribution of our seniors – many who continue to work well beyond the pension age – and we want to encourage our seniors to stay in the Territory as active members of our communities.”

Media Contact - Hannah Farmer - 0428 497 154