/ Workers Compensation and Work Injury Damages Claims

Workers Compensation

The NSW Workers Compensation Scheme provides injured workers with the following entitlements:

• Weekly payments for loss of wages
• Medical, hospital and rehabilitation expenses
• Lump sum compensation for permanent impairment

To receive lump sum compensation for permanent impairment, you must have:

• 11% or more permanent impairment for a physical injury
• 15% or more permanent impairment for a primary psychological injury for injuries and claims made before 30 June 2026
• 25% or more permanent impairment for a primary psychological injury for injuries and claims made or notified on or after 1 July 2026

Exempt workers, including police officers, paramedics and fire fighters, are not subject to these permanent impairment threshold.

Work Injury Damages

If you have a work-related injury resulting from an employer’s negligence, you may be eligible to work injury damages

To make a claim for work injury damages:

• The work injury must be from an employer’s negligence
• You must have at least 15% permanent impairment (but must be at least 25% or more permanent impairment for a primary psychological injury for injuries and claims made or notified on or after 1 July 2026)

Permanent impairment must be assessed by an authorised permanent impairment assessor and the insurer must agree to that assessment. Otherwise, permanent impairment must be determined by an authorised assessor appointed by the Personal Injury Commission.

A claim for work injury damages can only be settled after all statutory lump sum entitlements for permanent impairment are finalised.

Damages payable in a claim for work injury damages include:

• Past and future loss of income
• Loss of superannuation contributions

A work injury damages settlement extinguishes all further entitlements to workers compensation benefits associated with that injury.