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      Can I make a workers compensation claim for permanent impairment?

      Quick answer

      If you’re ‘permanently impaired,’ you may be eligible for a lump sum payment in addition to your weekly wage replacement and medical benefits.

      Generally speaking, you will need to meet a minimum percentage of Whole Person Impairment (WPI) to qualify. WPI is the total impairment you’ve suffered due to your injury.

      Each state has its own minimum WPI threshold, with higher WPI percentages often resulting in larger payouts.

      Below, we explore the requirements for a permanent impairment claim in each state.

      In depth answer

      In most states, you’re automatically entitled to workers compensation after a workplace injury. This covers things like lost wages, medical care and rehabilitation. However, if your injury permanently affects your life, you may also be eligible for an additional lump sum payment.

      To begin a claim for permanent impairment, your Whole Person Impairment (WPI) must be assessed.

      What is WPI?

      WPI is a measure of the overall impairment resulting from your injury. Your WPI is assessed as a percentage, and you must meet your state’s minimum threshold before starting a claim.

      It’s critical to note that your WPI can only be assessed after your condition stabilises. This means it’s reached maximum medical improvement and is unlikely to improve with further treatment.

      Different laws apply in different states. Please choose your state below so we can show you the most relevant content.

      In New South Wales, your WPI must be assessed at 11% or greater for physical injuries. This increases to 15% for psychological injuries.

      Primary vs. secondary impairment

      Importantly, your WPI is only based on your primary injury. This must be an injury or illness directly resulting from work, such as a back injury or stress-related anxiety. In contrast, if you develop depression after injuring your back, this is considered a secondary injury and will not contribute to your WPI.

      Multiple injuries

      If you have multiple physical injuries, each will be assessed individually and given its own WPI. The percentages are then added to produce your total WPI.

      Consequential injuries

      A consequential injury is a physical injury that results directly from your primary injury. For example, you might suffer a right shoulder injury and compensate by using your left shoulder more than usual. If you develop pain in your left shoulder as a result, both injuries will be assessed. Their percentages will then be added together to form your total WPI.

      How is WPI assessed?

      Your WPI is assessed based on guidelines developed by the State Insurance Regulatory Authority (SIRA). The assessment looks at:

      • Whether your condition has reached maximum medical improvement (meaning it’s stable and unlikely to change even with treatment).
      • Whether your injury or condition has impaired you.
      • Whether that impairment is permanent.
      • The degree of permanent impairment resulting from your injury.
      • Any previous injury, pre-existing condition or abnormality that may have contributed to your impairment.

      Your assessor will be an independent, registered medical practitioner with experience and qualifications related to your injury.

      How much compensation will I get?

      The lump sum payment you receive depends on two factors:

      • Your degree of WPI, and
      • The date you were injured.

      As an example, if your injury occurs between 1 July 2023 and 30 June 2024, you can expect the following compensation:

        Percentage of WPI  Compensation range
         < 10%  $0
         11 ­– 20%  $27,790 – $60,460
         21 – 30%  $64,090 – $96,760
         31 – 40%  $102,690 – $156,510
         41 – 50%  $162,490 – $216,310
         51 – 60%  $299,300 – $382,170
         61 – 70%  $465,040 – $547,910
         71 – 74%  $630,770
         75 – 100%  $713,660

      Based on SIRA Workers Compensation Benefits Guide October 2023

      If your injury occurred in a previous year, see the compensation calculation table in 6.5.5 of the Guide.

      In Victoria, three minimum WPI thresholds may apply to you:

      1. Spinal injuries: 5% or greater WPI.
      2. Other physical injuries: 10% or greater WPI.
      3. Psychological injuries: 30% or greater WPI.

      Importantly, your injury must be a primary impairment, meaning it directly results from your work. For example, you might suffer a back injury caused by heavy lifting or develop Post-Traumatic Stress Disorder (PTSD) due to workplace bullying or witnessing a traumatic event at work.

      Primary vs. secondary impairment

      If you develop another injury because of your first injury, this is a secondary impairment. Unfortunately, you cannot claim compensation for secondary impairments. For example, if you’re physically injured at work and subsequently develop depression, you can only claim for the primary physical impairment.

      Multiple injuries

      If you have multiple primary injuries, each will be given an individual WPI assessment. The percentages are then added to produce your total WPI percentage.

      How is WPI assessed?

      Your WPI is assessed by a medical professional who specialises in your injury. They will look at:

      • Whether your injuries are the result of your employment.
      • Whether your injuries are medically stable.
      • How your injuries rate according to the American Medical Association Guide.

      How much compensation will I get?

      Your lump sum payment covers your financial losses, including lost income and medical expenses.

      This compensation is paid according to:

      • Your WPI percentage
      • The year you were injured, and
      • The type of injury.

      Physical injuries (spinal)

      If you suffered a spinal injury between 1 July 2023–30 June 2024, you could be entitled to:

        Combined percentage of WPI  Compensation range
         < 9%  $0
         10 ­– 11%  $16,478 – $30,514
         11.95 – 15.75%  $34,384 – $49,558
         16.7 – 20.5%  $53,351 – $68,525
         21.45 – 25.25%  $72,318 – $87,491
         26.2 – 29.05%  $91,285 – $96,780
         30 – 100% Refer to the non-spinal physical impairment calculation table below

      If your injury occurred after 1 July 2019, see the 2019–24 calculation table to find out how much compensation you’re entitled to.

      For injuries before 1 July 2019, you should refer to the relevant calculation table.

      Physical injuries (non-spinal)

      If you sustained a non-spinal physical injury between 1 July 2023–30 June 2024, you could be entitled to:

        Combined percentage of WPI  Compensation range
         < 9%  $0
         10 ­– 20%  $24,180 – $60,480
         21 – 30%  $64,110 – $96,780
         31 – 40%  $102,800 – $157,250
         41 – 50%  $163,300 – $217,750
         51 – 60%  $223,800 – $278,250
         61 – 70%  $284,300 – $338,750
         71 – 79%  $374,530 – $676,130
         80 – 100% $713,780

      If your injury occurred after 1 July 2016, see the 2016–24 calculation table to find out how much compensation you’re entitled to.

      For injuries before 1 July 2016, you should refer to the relevant calculation table. 

      Psychological injuries

      If your psychological injury occurred between 1 July 2023–30 June 2024, you could be entitled to:

        Combined percentage of WPI  Compensation range
         < 29%  $0
         30 – 40%  $96,780 – $157,250
         41 – 50%  $163,300 – $217,750
         51 – 60%  $223,800 – $278,250
         61 – 70%  $284,300 – $338,750
         71 – 79%  $374,530 – $676,130
         80 – 100% $713,780

      If your injury occurred after 1 July 2020, see the 2020–24 calculation table to find out how much compensation you’re entitled to.

      For injuries before 1 July 2020, you should refer to the relevant calculation table.

      In Queensland, WPI is called DPI (Degree of Permanent Impairment). There is no minimum DPI required to claim compensation. However, your DPI affects how much compensation you receive.

      How is DPI assessed?

      Your DPI is based on the following:

      • Whether your condition is stable.
      • Whether your injury has resulted in an impairment.
      • Whether that impairment is permanent.
      • The degree of impairment.
      • Any previous impairments or pre-existing conditions.

      How much compensation will I get?

      After your injury, WorkCover Queensland will have your DPI assessed. They will then offer you a lump sum payment, which you can accept, reject or defer.

      Your DPI percentage may impact this decision. If your DPI is less than 20%, you must decide between accepting a lump sum offer or claiming common law damages.

      For a DPI of 20% or higher, you can accept both the lump sum and pursue a common law claim.

      If you have multiple injuries, you are only entitled to compensation for your primary injury. You cannot combine the DPI of multiple injuries.

      How your lump sum is calculated

      DPI less than 30%

      If your DPI is less than 30%, your compensation is calculated by multiplying your percentage of DPI by the ‘maximum compensation statutory amount’. From 1 July 2023 to 30 June 2024, this amount is $380,575.31. This means for every 1% of DPI, you’re entitled to $3,805.75.

      For example, if your DPI is five, your maximum lump sum compensation would be 5% of $380,575.31, which is about $19,028.77.

      The maximum amount is updated each financial year and increases with inflation.

      DPI greater than 30%

      The calculation is more complex if your DPI is greater than 30%. Your payment is still calculated based on your 1% of DPI, but you receive an additional amount on top. The exact amount you get depends on your DPI and the rules in Schedule 3 of the Workers Compensation and Rehabilitation Act.

      Are there any exceptions?

      If you were injured between 15 October 2013 and 30 January 2015 (inclusive), you are only eligible for lump sum compensation if:

      In the ACT, workplace injury claims are not subject to a minimum WPI threshold.

      How much compensation will I get?

      ACT legislation includes a list of all injuries for which lump sum compensation can be claimed. You are entitled to claim for multiple injuries, but your total compensation cannot exceed $150,000.

      Each injury is allocated a percentage of the maximum single injury compensation (currently $100,000 and indexed annually). For example, a permanent back impairment qualifies you for 60% of the maximum compensation, meaning you’d receive $60,000.

      You can find the complete list under Schedule 1 of the Workers Compensation Act.

      Western Australia does not have a minimum WPI threshold for lump sum compensation claims. Instead, a relevant medical professional must assess your injury or illness. The assessment must conclude that:

      • You’re permanently impaired, and
      • Your injury or illness entitles you to compensation under WA law.

      How is my injury assessed?

      An approved medical specialist assesses your injury. They will consider whether:

      • Your condition has reached maximum medical improvement.
      • Your injury resulted in an impairment.
      • The impairment is permanent.
      • Your injury is the result of a pre-existing condition or abnormality.

      How much compensation will I get?

      You may be entitled to a lump sum payment if your injury results in permanent impairment.

      Western Australia caps the total possible compensation at $224,921 (the ‘prescribed amount’).

      Every injury is allocated a percentage of the prescribed amount. For example, permanent back impairment is allocated 60%. This means you are eligible for a maximum lump sum of $134,952.60.

      You can find the complete list of recognised injuries and illnesses in Schedule 2 of the Workers Compensation and Injury Management Act.

      It’s vital to note that the prescribed amount includes both weekly payments and any lump sum for permanent impairment. As a result, you can only claim a lump sum payment if you have not already met the prescribed amount through weekly payments.

      In Tasmania, you are entitled to compensation if your physical injuries result in a WPI of 5% or more. For psychological injuries, this increases to a minimum of 10% WPI.

      How is WPI assessed?

      A qualified medical assessor determines your WPI based on whether:

      • Your condition has reached maximum medical improvement.
      • It qualifies as an ‘impairment’.
      • The condition was caused by a work injury.

      Tasmania’s guidelines define ‘impairment’ as a negative deviation from a person’s normal health status.

      As a general rule, the loss of a foetus over 16 weeks old is treated as a permanent impairment and given a WPI of 20%.

      How much compensation will I get?

      If your WPI is between 5 – 70% (for physical injuries) or 10 – 70% (for psychological injuries), you will receive compensation based on the formula in section 71 of The Act. The calculation is based on the ‘basic salary’ (currently $1005.77 as of 1 January 2023).

      For a WPI of 70% or more, you automatically receive 415 basic salary ‘units’. This totals $417,394.55 and applies to both physical and psychological injuries.

      How do I start my claim?

      You only have one chance to get compensation, so it’s essential to speak to a lawyer before starting your claim. An experienced lawyer can help you navigate state requirements and challenge your WPI assessment if you’re unhappy with the result.

      In addition, we’ll also determine whether you have a common law damages claim, ensuring you get maximum compensation for your injury.

      Speak to us today for free, comprehensive advice about your claim.

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