How long are Loss of Earnings (LOE) benefits payable for?

This policy must be read in conjunction with the Loss of Earnings Benefits policy.

What factors can affect a client's entitlement to LOE benefits?

LOE benefits are payable for a maximum period of 18 months, from the date of accident or when the injury first manifested itself, where supported by certificates of capacity verifying incapacity as a result of transport accident injuries. A client who has recovered from their injury or no longer has an incapacity to work due to their injury is not entitled to continue receiving LOE benefits. A client who has sustained a loss of earning capacity as a result of the injuries 18 months after the transport accident may be entitled to receive LOEC benefits provided they meet the normal criteria.

Will a client continue to receive LOE benefits once they reach retirement age?

For accidents before 6 July 2022

The TAC will not pay LOE benefits after the client attains the normal retirement age for workers in that occupation. If there is no normal retirement age set for that occupation, LOE benefits cease when the client reaches the age that they can apply for the Commonwealth age pension.

In circumstances where an earner has not permanently retired from employment at the time of the transport accident and has previously attained or is within 12 months of attaining:

the normal retirement age for workers in that occupation, or
the age that they can apply for the Commonwealth age pension, if no normal retirement age is set for that occupation

then LOE is payable for a period not exceeding 12 months (or aggregate periods thereof) from the date of injury.

For accidents on or after 6 July 2022

In circumstances where an earner has not permanently retired from employment at the time of the transport accident, the TAC can pay LOE benefits for up to 18 months. If the client continues to sustain a loss of earning capacity as a result of their injuries beyond 18 months of the transport accident, they may be entitled to receive Loss of Earnings Capacity (LOEC) benefits provided they meet the normal criteria. Refer to the LOEC benefits policy for further information on LOEC.

Will LOE payments cease once the client is deceased?

An earner's entitlement to LOE benefits ceases upon their death. Future LOE payments which, but for the death, would have been made do not form part of the deceased's estate.

However, if prior to their death the client was eligible for LOE benefits, the TAC will pay LOE benefits to the estate of a deceased client in the first 18 months after the accident provided:

the medical evidence confirms the client had an entitlement to LOE benefits during that period/s before the death and
only for periods up to the date of death.

When will the TAC cease or reduce benefits, and how much notice will the TAC give?

A client must have an ongoing loss of earnings that is the result of or materially contributed to by their transport accident to continue to receive LOE benefits.

The TAC will immediately cease paying LOE benefits, to a client who:

commences or resumes employment
is serving a prison sentence (effective for the duration of the prison term).

The TAC will give 28 days notice to discontinue or reduce a client's LOE benefits in circumstances where the client:

has recovered from the effects of the injury caused by the transport accident
cannot work for reasons that are unrelated to the transport accident (for example, not meeting vaccination requirements in their industry or from a prospective employer) but is otherwise capable of working in terms of their current capacity from their transport accident injuries
does not accept a reasonable offer of suitable employment or a reasonable offer of employment which offers increased earnings
does not accept a reasonable offer of rehabilitation.

The TAC will cease paying LOE benefits to a client, with notice, where the client is not, and never has been, entitled to benefits. Payments will not be discontinued or reduced if the client makes an application to the Victorian Civil and Administrative Tribunal within 28 days after receiving the notice unless the TAC later confirms the decision to discontinue or reduce the payments within 28 days of receiving the VCAT application.

Will LOE payments cease if a client refuses treatment or supports?

The TAC will suspend LOE payments for a client when:

The client fails to attend and adequately participate in rehabilitation treatment (such as a physiotherapy rehabilitation program) without reasonable excuse, and
The client's treating practitioner believes that the client will benefit from the treatment and provides the client with a medical clearance to participate in the treatment.

The TAC will provide the client with warning that he/she must attend treatment, and after 28 days will suspend LOE payments until the client adequately attends and participates in rehabilitation.

If a client has been referred for vocational rehabilitation, but is refusing to participate for reasons unrelated to the transport accident (for example, unmet vaccination requirements), the TAC will not be able to continue making payments.

LOE payments will not be back paid for the period of the suspension.

Transport Accident Act 1986 reference: s.74(2)(b).

What factors will the TAC take into account when making an offer of rehabilitation or suitable employment?

The TAC will take the following factors into account when making an offer of rehabilitation or suitable employment:

the nature of the injury
the client's potential and ability to undertake rehabilitation
the client's training skills and experience
the age of the client
all relevant medical reports and vocational assessments provided by the vocational provider. Refer to the policy on Return to Work Programs.

The TAC will give notice of its offer of rehabilitation or vocational assistance in writing and allow 28 days for a response.


How long are Loss of Earnings (LOE) benefits payable for? This policy must be read in conjunction with the Loss of Earnings Benefits policy. What factors can affect a client's entitlement to LOE benefits? LOE benefits are payable for a maximum period of 18 months, from the date of accident or when the injury first manifested itself, where supported by certificates of capacity verifying incapacity as a result of transport accident injuries. A client who has recovered from their injury or no longer has an incapacity to work due to their injury is not entitled to continue receiving LOE benefits. A client who has sustained a loss of earning capacity as a result of the injuries 18 months after the transport accident may be entitled to receive LOEC benefits provided they meet the normal criteria. Will a client continue to receive LOE benefits once they reach retirement age? For accidents before 6 July 2022 The TAC will not pay LOE benefits after the client attains the normal retirement age for workers in that occupation. If there is no normal retirement age set for that occupation, LOE benefits cease when the client reaches the age that they can apply for the Commonwealth age pension. In circumstances where an earner has not permanently retired from employment at the time of the transport accident and has previously attained or is within 12 months of attaining: the normal retirement age for workers in that occupation, or the age that they can apply for the Commonwealth age pension, if no normal retirement age is set for that occupation then LOE is payable for a period not exceeding 12 months (or aggregate periods thereof) from the date of injury. For accidents on or after 6 July 2022 In circumstances where an earner has not permanently retired from employment at the time of the transport accident, the TAC can pay LOE benefits for up to 18 months. If the client continues to sustain a loss of earning capacity as a result of their injuries beyond 18 months of the transport accident, they may be entitled to receive Loss of Earnings Capacity (LOEC) benefits provided they meet the normal criteria. Refer to the LOEC benefits policy for further information on LOEC. Will LOE payments cease once the client is deceased? An earner's entitlement to LOE benefits ceases upon their death. Future LOE payments which, but for the death, would have been made do not form part of the deceased's estate. However, if prior to their death the client was eligible for LOE benefits, the TAC will pay LOE benefits to the estate of a deceased client in the first 18 months after the accident provided: the medical evidence confirms the client had an entitlement to LOE benefits during that period/s before the death and only for periods up to the date of death. When will the TAC cease or reduce benefits, and how much notice will the TAC give? A client must have an ongoing loss of earnings that is the result of or materially contributed to by their transport accident to continue to receive LOE benefits. The TAC will immediately cease paying LOE benefits, to a client who: commences or resumes employment is serving a prison sentence (effective for the duration of the prison term). The TAC will give 28 days notice to discontinue or reduce a client's LOE benefits in circumstances where the client: has recovered from the effects of the injury caused by the transport accident cannot work for reasons that are unrelated to the transport accident (for example, not meeting vaccination requirements in their industry or from a prospective employer) but is otherwise capable of working in terms of their current capacity from their transport accident injuries does not accept a reasonable offer of suitable employment or a reasonable offer of employment which offers increased earnings does not accept a reasonable offer of rehabilitation. The TAC will cease paying LOE benefits to a client, with notice, where the client is not, and never has been, entitled to benefits. Payments will not be discontinued or reduced if the client makes an application to the Victorian Civil and Administrative Tribunal within 28 days after receiving the notice unless the TAC later confirms the decision to discontinue or reduce the payments within 28 days of receiving the VCAT application. Will LOE payments cease if a client refuses treatment or supports? The TAC will suspend LOE payments for a client when: The client fails to attend and adequately participate in rehabilitation treatment (such as a physiotherapy rehabilitation program) without reasonable excuse, and The client's treating practitioner believes that the client will benefit from the treatment and provides the client with a medical clearance to participate in the treatment. The TAC will provide the client with warning that he/she must attend treatment, and after 28 days will suspend LOE payments until the client adequately attends and participates in rehabilitation. If a client has been referred for vocational rehabilitation, but is refusing to participate for reasons unrelated to the transport accident (for example, unmet vaccination requirements), the TAC will not be able to continue making payments. LOE payments will not be back paid for the period of the suspension. Transport Accident Act 1986 reference: s.74(2)(b). What factors will the TAC take into account when making an offer of rehabilitation or suitable employment? The TAC will take the following factors into account when making an offer of rehabilitation or suitable employment: the nature of the injury the client's potential and ability to undertake rehabilitation the client's training skills and experience the age of the client all relevant medical reports and vocational assessments provided by the vocational provider. Refer to the policy on Return to Work Programs. The TAC will give notice of its offer of rehabilitation or vocational assistance in writing and allow 28 days for a response.