NSW CTP Compensation Guide: Benefits, weekly payments and lump sum damages

Statutory benefits are designed to provide immediate financial and medical support. They are "no-fault" for the first 52 weeks (except for certain serious driving offences).

Weekly Income Payments (PAWE)

If your injury prevents you from working, or reduces your capacity, you are entitled to weekly income support. This is based on your Pre-accident Weekly Earnings (PAWE).

The PAWE calculation should include your base salary, overtime, shift allowances, and bonuses averaged over the 12 months prior to the accident. Note: Insurers frequently miscalculate PAWE by omitting overtime or bonuses, leading to significant underpayments.

• First 13 Weeks: You receive up to 95% of your PAWE.
• Weeks 14 to 52: You receive up to 80% or 85% of your PAWE depending on your work capacity.
• After 52 Weeks: Benefits only continue if you have a "non-threshold" injury and you were not "mostly at fault" (over 61% responsible).

Medical and Care Expenses

The insurer is responsible for paying "reasonable and necessary" medical, rehabilitation, and attendant care expenses. The criteria for "reasonable and necessary" includes:

• Whether the treatment is appropriate for your specific injury.
• Whether the cost is reasonable (governed by the SIRA Fee Schedule).
• The effectiveness of the treatment (evidence-based).

Gap Payments: If a specialist charges more than the SIRA scheduled rate, you may be responsible for the "gap." It is important to confirm with providers if they bill at SIRA rates before attending appointments.

If an insurer refuses high-cost treatment, see our guide to shoulder surgery disputes and the broader treatment refused dispute pathway.

A damages claim is a one-off lump sum payment that finalizes your claim. To be eligible, you must have a "non-threshold" injury and someone else must have been at fault for the accident.

Economic Loss (Past and Future)

This is often the most significant part of a CTP payout. It compensates you for lost wages from the date of the accident until retirement age. We use actuarial tables (the "5% multiplier") to calculate the present value of your future loss of earning capacity, including the loss of employer superannuation contributions.

Fox v Wood-style adjustment issues

In some matters, there may be an additional adjustment issue relating to tax withheld from compensation-related payments over time. This is technical and fact-specific, and should be reviewed before settlement. See Fox v Wood in NSW CTP claims.

Non-Economic Loss (NEL)

Commonly known as "pain and suffering," NEL is compensation for the physical and emotional impact of the injury. There is a strict threshold: your Whole Person Impairment (WPI) must be greater than 10% (i.e., at least 11%).

The NEL Cap: The maximum amount for NEL (approx. $650,000+ in 2026) is reserved for the most catastrophic injuries (e.g., paraplegia or severe brain damage). Most settlements fall into a range based on previous PIC decisions for similar injuries.

While no calculator can give an exact figure without expert evidence, the final settlement value is generally determined by four variables:

Because these variables are often disputed by insurers, expert legal advice is critical to maximizing the final number.

If fault share is in issue, use our contributory negligence in NSW CTP guide to estimate likely percentage deductions before settlement strategy is locked.

If your prognosis may exceed minor soft-tissue recovery, review the over-threshold injury strategy guide before any settlement conference.

Where surgery or catastrophic injury is involved, compare our guidance on spinal fusion surgery claims and spinal cord injury claims. If an insurer relies on an IME report to reduce value, use the IME challenge playbook to pressure-test causation and capacity opinions.