Common Law Versus Statutory Law: What’s The Difference?

In Australia, there are two main types of law: statutory law and common law. While statutory law is written by the government, common law is shaped by court decisions over time.

In a personal injury claim, statutory law typically acts as your ‘no-fault’ safety net for immediate medical bills and basic weekly wages. But if you can prove someone else was at fault, a common law claim (also known as a work injury damages claim in NSW) offers a substantial lump sum worth hundreds of thousands — or even millions, in severe cases.

Common Law Versus Statutory Law: What’s The Difference?

Statutory vs. common Law: The payout comparison

FeatureStatutory benefitsCommon law benefits
How is it paid?Weekly wage checks and medical invoices.A one-off, life-changing lump sum payout.
Do you need to prove fault?No-fault for work injuries. For car accidents, no fault in NSW, VIC, TAS, ACT and NT; fault-based everywhere else.Yes, you must prove someone else’s negligence caused the injury.
Can you get pain and suffering compensation?No compensation for pain and suffering, but modest lump sums paid for permanent impairment.Yes, you receive a lump sum payout for the toll on your life and happiness.
Can you claim lost income?Yes, but it's capped at a percentage of your wages for a fixed period (and nothing for the future).Yes, you get full coverage for lost income (including super) and your projected lost income up to retirement.
Is medical treatment included?Covered as you go (pending insurer approval).Paid upfront in a lump sum for past and future medical expenses.
The resultProvides basic cover for lost wages and medical costs after a work or car accident.Provides a substantial lump sum payout to cover your long-term financial future.

What is statutory law?

A statute is simply a written law. For example, your employer’s legal duties are set out in workers compensation legislation.

Each state has its own system, along with separate laws for Commonwealth employees. In NSW, for example, workers are protected under the Work Health and Safety Act 2011 and the Work Health and Safety Regulation 2017.

Examples of statutory claims

A statutory claim is simply a claim made under legislation. In most cases, you don’t need to prove fault to access these benefits.

Below are two of the most common types: workers compensation and CTP motor accident claims.

Workers compensation claims

You can make a statutory workers compensation claim if you’ve developed a work-related injury or illness. This also includes situations where an existing injury has been aggravated by work.

Most injuries and illnesses are covered, regardless of:

  • Who was at fault.
  • Whether you’re part-time, full-time, or casual.
  • Whether you’re a subcontractor (in most cases).
  • If the injury is psychological (such as stress), as long as it was directly caused or worsened by your job.

CTP motor accident claims

All registered vehicles must have Compulsory Third Party (CTP) insurance. It covers you if you’re injured in a road accident, whether you’re a driver, passenger, pedestrian, or cyclist.

In NSW, Victoria, Tasmania, the ACT, and the Northern Territory, you can usually claim even if you were at fault. In Queensland, South Australia, and Western Australia, you generally need to show that someone else caused the accident to be eligible for compensation.

Start your free online claim check

Find out if you’re eligible for compensation today.

Check your claim nowIt only takes 2 minutes.

What is common law?

While statute law is made by Parliament, common law is built by judges through court decisions. There are various types of common law claims, but they all have two things in common:

  1. You have to prove negligence: Unlike no-fault statutory claims, common law requires us to prove negligence. You need to show the other side owed you a duty of care and they failed in this duty.
  2. You get a lump sum payment: You receive a lump sum payout designed to cover your past and future losses, including income, medical expenses and (in some cases) your pain and suffering.

The negligence key: Do you have a common law case?

Proving negligence is the key that unlocks a substantial, lump sum payout. If you meet these four criteria, it’s likely you have a common law case:

  • Duty of care: Did the other party have a legal responsibility for your safety? Generally, all employers and other drivers on the road owe you this duty.
  • Breach of duty: Did they fail to do what was reasonable? (e.g. ignoring a workplace hazard or speeding?)
  • Causation: Did your injury happen specifically because of that failure?
  • The threshold: In most states, you must meet a  minimum level of permanent impairment before you can make a common law claim. In NSW, for example, you need 15% impairment to sue your employer, or 11% to sue another driver.

Still not sure if you have a common law claim? Find out now with a free case review.

How much can I get for a common law claim?

Unlike the limited benefits under statutory schemes, common law claims can result in substantial lump sum payouts — often hundreds of thousands, and in serious cases, millions.

Depending on your age, circumstances, and the type of claim, compensation may cover:

  • Lost income: This includes both past and future earnings, plus superannuation.
  • Pain and suffering: Compensation for how your injury affects your physical and mental health. Learn how much you could receive with our pain and suffering compensation calculator.
  • Care and support: Costs for professional care or help from family and friends, as well as compensation if you can no longer care for someone who depends on you.
  • Other expenses: Medical bills, travel costs, and any modifications needed for your home or vehicle.

Wondering what your claim is worth?

See real success stories and compensation breakdowns from our past clients to understand the potential value of your claim. You'll also learn the specific steps you can take to maximise your final settlement.

Find out how much our past clients received

Ryan wins $1 mil for workers comp and motor accident claims

After a motorbike accident left him with severe foot injuries and multiple toe amputations, Ryan needed ongoing treatment and time off work. We secured workers compensation first to cover his lost income and medical costs, then pursued a motor accident claim to protect his long-term future.

Although the driver admitted fault, we focused on maximising the outcome — using detailed medical evidence to show the full impact on Ryan’s life. The result was a $1 million settlement covering his income loss, treatment, and pain and suffering.

Do I need a lawyer for my claim?

You can make a statutory claim alone, but it’s essential to speak with a lawyer if there’s a dispute about your payments. However, to secure your full common law payout, expert legal advice is a necessity.

Because common law claims involve substantial, ‘once and for all’ lump sum payouts, insurers fight them aggressively. These claims are extremely technical, requiring substantial proof of negligence and expert medical evidence to forecast your losses decades into the future.

In a free consult, we’ll explain whether you have a common law claim and the best way to secure maximum compensation. We’ll also identify any extra claims you might have — like income protection or a TPD payout — ensuring you get the largest possible payout for your injury.

Get free claim advice

Use our online claim checker to instantly find out if you have a claim. Alternatively, just give us a ring — our expert lawyers are always ready to answer your questions.

Request a call back

Let us know when it's convenient and one of our team will call you.

Call

Our lawyers are available Monday to Friday, 8.30 am - 5.30 pm AEST.

1300 769 665

Visit

With 29 convenient office locations across Australia, we're never far away.

Find your nearest office