In New South Wales, workers injured at work may be entitled to weekly compensation, with a maximum weekly payment of $2,523.00 (effective 1 October 2024), adjusted every April and October.
Eligibility and Duration
Weekly payments may extend for 12 months after reaching retirement age (when eligible for an aged pension), or up to 12 months if injured after retirement age. The maximum duration for weekly compensation is typically 260 weeks, unless you are deemed high or highest needs.
Weekly Compensation Calculation
Compensation is based on pre-injury average weekly earnings (PIAWE), capacity to work, and ability to earn in suitable employment.
- First Entitlement Period (Weeks 1-13): Workers with no work capacity receive 95% of PIAWE (or the maximum amount). Workers with capacity to work receive 95% of PIAWE minus current earnings, or the maximum minus earnings, whichever is lower.
- Second Entitlement Period (Weeks 14-130): Workers with no capacity receive 80% of PIAWE (or the maximum). Workers with some capacity (and working 15+ hours per week) receive 95% of PIAWE minus earnings, or the maximum minus earnings. Workers without 15+ hours work receive 80% of PIAWE minus earnings. After 130 weeks, compensation is 80% of PIAWE or the maximum.
- Post-Second Entitlement Period: Workers with no capacity or those working 15+ hours and earning at least $202/week may qualify for further payments. Payments are available only to workers with more than 20% permanent impairment.
- After 260 Weeks: No payments unless the worker has 21% or greater whole permanent impairment.
- Special Compensation: Workers requiring surgery for a work injury may receive weekly payments for up to 13 weeks post-surgery.
- Highest Needs Workers: Workers with over 30% permanent impairment are entitled to a minimum weekly payment of $1,020 (effective 1 October 2024).
Is permanent impairment compensation for life?
Workers with at least 11% permanent impairment are entitled to lump sum compensation, in addition to weekly payments. The amount depends on injury severity and is based on assessed impairment levels.
How do I claim Lump Sum Compensation for permanent impairment?
In cases where injury symptoms persist and complete recovery is unrealistic, a permanent impairment lump sum can be claimed. The amount paid to an injured worker can be in addition to weekly compensation and medically related expenses. Payment is made on the basis of the date of injury and the assessed percentage according to scales which are now adjusted annually.
A medical assessor will determine if the injury condition has stabilised and reached maximum medical improvement. A permanent impairment compensation claim must be supported by documentation proving the impairment is more than 10% for physical injury, or 15% for primary psychological or psychiatric impairments.
Are Workers Compensation payments taxable?
Workers compensation payments for lost income are taxable, while lump sum payments for permanent impairment are not.
Taylor & Scott Lawyers offer a comprehensive case assessment of your specific circumstances. Our specialist workers compensation lawyers will help you understand your rights and obligations, and we are ready to negotiate with opposing insurers and legal teams on your behalf. If you are an injured worker considering a Workers Compensation claim, contact Taylor & Scott today for valuable advice, strong support, and the best chance of maximising your claim’s potential.
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