Check the NSW preconditions before a workers compensation commutation
MaintainedLast reviewed
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the assessment, the payment history and the proposed amount, mark each section 87EA precondition as met, unmet or unknown. Do not advise the worker to accept a commutation, and do not write the agreement.
- What the lawyer must review
- Decide whether the worker should commute, and write any advice.
- The President must be satisfied of each precondition in section 87EA(1), unless subsection (2) applies.
- No lump-sum election section was opened. Do not add one.
- Keep medical details in the firm's system. Apply ASCR rule 9, APP 11, and the Privacy Act notifiable-breach test.
Rules that apply
The document starts from the task name. Change it if this piece of work is different.
The work product
Forum. Workers Compensation Act 1987 (NSW) section 87EA
Produce. A precondition table marked met, unmet or unknown. No advice to accept and no agreement.
Have ready. Permanent impairment assessment; Date of the first weekly-payments claim; Payment history for the preceding 6 months; Whether section 48A of the 1998 Act has been applied.
Example of the limit. Illustrative example: Impairment is 18 per cent and compensation for it has been paid, but the first weekly claim was 14 months ago. The tool marks the 2-year precondition unmet. It does not draft a commutation agreement.
Stop and hand it back when
- A precondition is unknown.
- The tool is asked to recommend that the worker accept.
Sources for this task were checked on 2026-10-23.
Who does what
| Role | What they do |
|---|---|
| Assistance | Do not begin AI assistance until the responsible lawyer has defined and confirmed its permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Section 87EA(1) requires the President to be satisfied of permanent impairment of at least 15 per cent, assessed under Part 6 or under Chapter 7, Part 7 of the 1998 Act.
- Permanent impairment compensation must have been paid. At least 2 years must have elapsed since the first claim for weekly payments. Injury management and return to work must have been fully exhausted.
- Weekly payments must have been received regularly and periodically throughout the preceding 6 months, and an existing and continuing entitlement must remain. Payments must not have been terminated under section 48A of the 1998 Act.
- Subsection (2) allows a commutation in a prescribed class if the regulations' requirements are met and, unless the regulations provide otherwise, the lump sum is not inadequate and not excessive. Those regulations were not opened.
Sources
- Workers Compensation Act 1987 (NSW) section 87EA · 2026-10-23
- Workers Compensation Act 1987 (NSW) section 151A · 2026-10-23
Section 151A, as opened, deals with the effect of recovering damages. It is not a precondition to commutation and it is not used here. No separate lump-sum election section was opened.