Workers Compensation
Workers Compensation Payout Guide
Have you suffered an injury at work? You may be entitled to workers’ compensation for lost wages, medical costs and future earnings. Depending on the extent of your injuries and whether employer negligence was a factor, you may also be entitled to a lump-sum compensation payment.
120,355 workers’ compensation claims were made in 2019 and 2020, according to Safe Work Australia. It’s a huge figure that doesn’t only represent a large number of Australians; it also shows that despite all the intricate safety regulations workplaces need to comply with, workers continue to be hurt while doing their jobs.
Review our workers’ compensation guide for an overview that includes how payouts and settlements are handled.
How are workers’ compensation settlements calculated?
There are three main factors that determine a workers’ compensation payout:
- An expert medical assessment of the extent of the injuries
- The amount of lost earnings due to not being able to work
- The extent to which future earning potential has been impacted.
If a claim is successful, the worker injured is paid a percentage of their average pre-injury weekly earnings, with the percentage in most states slightly decreasing then stabilising overtime for the entire period they’re off work, subject to medical assessments.
Percentages and periods vary state to state, as per the breakdown below from Safe Work Australia:
New South Wales
| Length of time off work | Percentage of pre-injury income |
| First 13 weeks | 95% |
| 14 to 130 weeks | 80% |
| 130 to 260 weeks | 80% (Work Capacity Assessment required to confirm inability to return to work) |
| 260 weeks onwards | 80% (If body impairment more than 20%) |
Victoria
| Length of time off work | Percentage of pre-injury income |
| First 13 weeks | 95% |
| 14 to 26 weeks | 80% |
| 27 to 52 weeks | 80% |
| 53 to 104 weeks | 80% |
| 104+ weeks onwards | 80% (Work Capacity Assessment required to confirm a worker unable to return to work) |
Queensland
| Length of time off work | Percentage of pre-injury income |
| First 13 weeks | 85% |
| 14 to 26 weeks | 75% |
| 27 to 52 weeks | 75% |
| 53 to 104 weeks | 75% |
| 104+ weeks onwards | 75% (Payments only continue if worker has a body impairment of more than 15%) |
Western Australia
| Length of time off work | Percentage of pre-injury income |
| First 13 weeks | 100% |
| 14 to 26 weeks | 100% |
| 27 to 52 weeks | 100% |
| 53 to 104 weeks | 100% |
| 104+ weeks onwards | 100% |
South Australia
| Length of time off work | Percentage of pre-injury income |
| First 13 weeks | 100% |
| 14 to 26 weeks | 100% |
| 27 to 52 weeks | 100% |
| 53 to 104 weeks | 80% |
| 104+ weeks onwards | 80% |
Tasmania
| Length of time off work | Percentage of pre-injury income |
| First 13 weeks | 100% |
| 14 to 26 weeks | 100% |
| 27 to 52 weeks | 90% |
| 53 to 78 weeks | 90% |
| 79 to 104 weeks | 85% |
| 104+ weeks onwards | 80% |
Northern Territory
| Length of time off work | Percentage of pre-injury income |
| First 13 weeks | 100% |
| 14 to 26 weeks | 100% |
| 27 to 52 weeks | 75%-90% |
| 53 to 104 weeks | 75%-90% |
| 104+ weeks onwards | 75-90% (Compensation ceases after 250 weeks unless whole body impairment is 15% or higher) |
Australian Capital Territory
| Length of time off work | Percentage of pre-injury income |
| First 13 weeks | 100% |
| 14 to 26 weeks | 100% |
| 27 to 52 weeks | 65% |
| 53 to 104 weeks | 65% |
| 104+ weeks onwards | 65% |
What kinds of payments are provided by workers’ compensation?
| Payment Type | Definition |
| Weekly payments | Covers your weekly wage while you are injured |
| Medical expenses | Payment of your medical, hospital, rehabilitation, and travel expenses |
| Permanent impairment payout | This payout covers a permanent impairment caused by work injury |
| Work Injury Damages payout: | This is a lump sum payout for any injuries sustained which was a result of an employer’s negligence—also known as a common law claim. |
How long does a workers’ compensation payout take?
If your workers’ compensation claim is successful, the length of time you have to wait to receive compensation depends on the severity of your injury. It also varies according to compensation types. The information below breaks down typical wait times for each type of payment:
– Weekly payments
From submitting a claim, a decision is usually made within 38 days regarding whether or not you are eligible for weekly compensation payments. If the claim has been accepted, payments usually commence within seven days.
– Medical expenses
Your expense receipts need to be provided to your employer, to be reimbursed by their insurer. However, it can be difficult to predict when the reimbursements will be made and when the funds will be made available to you as circumstances vary.
– Impairment benefits
A claim can only be lodged after the permanent injury suffered has stabilised and at least 12 months have passed since the injury first occurred. The level of impairment that remains after this length of time is then assessed, with a decision taking around 120 days.
– Work injury damages payout
This lump sum payment is awarded when an injury was due to an employer’s negligence and resulted in at least 15% permanent impairment. Court proceedings for work injury damages must begin within three years of the injury date. Resolution is often slow and depends on the individual circumstances of the claim.
What is the average settlement for workers’ compensation?
Safe Work Australia has identified 10 commonly compensated injuries and their average compensation payouts for 2018-2019.
- Mental stress: $46,400
- Vehicle incidents: $15,600
- Body/muscular stress: $15,500
- Falls, trips and slips: $14,900
- Sound and pressure injury: $11,400
- Being hit by moving objects: $11,000
- Hitting objects with part of the body: $8,400
- Chemical injuries: $7,900
- Biological hazards: $4,700
- Injuries caused by heat, electricity and other environmental factors: $3600
However, compensation amounts were considerably higher when an injury was the result of an employer’s negligence. In these circumstances, the average compensation payout ranged from $22,480 to $631,370. Explore our recent wins and workers’ compensation payout case studies for more information.
Workers’ compensation payments are hugely affected by negotiations with the employer’s insurer. To ensure your negotiations are undertaken in a way that prioritises your circumstances, get in contact with our legal team.
What is the maximum payout for workers’ compensation in NSW?
The NSW State Insurance Regulatory Authority published in their 2021, NSW Workers’ Compensation Benefits Guide, that the maximum weekly payment is $2,242. This weekly payment equates to $583,024 after five years of entitled compensation.
Make a workers’ compensation claim today.
LHD Lawyers help everyday Australians receive the benefits they’re entitled to for Workers’ Compensation claims. We are so sure of our abilities to win your case that we stand firmly by our No Win No Fee Policy: if we don’t win, you don’t pay. Call 1800 455 725 for a no-obligation consultation about your case.
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