Changed To Workers Compensation Laws Allow Second Lump Sum Claims

Workers injured prior to 19 June 2012 may now be able to bring a further Lump Sum Claim if their injury deteriorates.

History Of Lump Sum Claims In NSW

In 2012, the NSW Government introduced changes to the workers compensation scheme significantly reducing benefits to injured workers, particularly in relation to lump sum compensation for injuries of a permanent nature.

Currently, workers who are injured in NSW and failed to make a claim for lump sum compensation prior to the introduction of the reforms on 19 June 2012, are:

  1. No longer able to make a claim for lump sum compensation unless the injury is assessed at 11% whole person impairment or greater.  This is a significantly high threshold and the majority of injuries will assess below 11% due to rigid guidelines doctors are required to follow when conducting such assessments.
  1. Workers are restricted to one lump sum claim only even if their injury significantly deteriorates at a later date and results in a greater impairment.

The Government sought to apply the reforms to all injured workers, regardless of when their injury had occurred.

On 27 August 2015, the Court of Appeal in NSW dealt a further blow to the rights of workers when it handed down its decision in the case of Cram Fluid Power v Green.  The Court held that the reforms introduced by the Government in 2012 restricting lump sum claims to one claim only, also applied to injured workers who had made a lump sum claim prior to 19 June 2012.

The Court of Appeal effectively closed the door to injured workers who had previously made an informed decision to accept lump sum compensation for their injury on the basis that they could make a further claim if their condition deteriorated in the future.

Following the Court decision, many organisations (including Unions and the Labor Council of NSW) complained about the unfairness of this legislation.

Win For Injured Workers

On 13 November 2015, the NSW Government capitulated and introduced legislation overriding the decision of the Court of Appeal, once again opening the door to injured workers who had settled a claim for lump sum compensation prior to 19 June 2012.  They will now be allowed to make one further claim if their condition has deteriorated and resulted in further impairment.

Examples of Possible Claims are:

  • Worker injures back and has settled a lump sum claim prior to 19 June 2012.  Since then, has had surgery or the condition has deteriorated.
  • Worker injures hip or knee and has settled a lump sum claim before 19 June 2012, now needs a hip or knee replacement which will result in an increase in permanent impairment.

These are just two examples.


If you sustained a workplace injury and made a claim for lump sum compensation prior to 19 June 2012, we urge you to contact the team at Taylor & Scott on 1800 600 664 or complete the Contact Form on this page for a Free Case Assessment.  We will advise you as to whether you qualify to make a further claim.  All claims are conducted with a grant of legal assistance from WIRO which means there is no cost to you.

Let Taylor & Scott Lawyers help you to a better future.

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