PAWE in NSW CTP Claims: Different Types and Calculation Rules
Your weekly support payments are built on your Pre-accident Weekly Earnings (PAWE). Governed by Schedule 1 of the Motor Accident Injuries Act 2017, the rules vary depending on your employment status and history. This hub explains the different PAWE types to help ensure your entitlements are calculated correctly. General information only.
1) The Legal Definition (Schedule 1)
Under the Motor Accident Injuries Act 2017 Schedule 1, PAWE is generally the weekly average of the gross earnings you received during the 52 weeks immediately before the accident.
This figure is the "100% baseline" used to determine your statutory benefits (typically 95% for the first 13 weeks, then dropping to 80% or 85%).
2) Different types of PAWE calculations
Because not everyone has a steady 52-week employment history, the legislation provides specific rules for different situations:
- Standard Employees: The 52-week averaging rule, including overtime and allowances.
- Self-Employed & Contractors: Calculating business income and proof of earnings.
- Recent Employment Changes: Rules for new jobs, promotions, or changes in hours (Schedule 1 cl 4).
- Students & Young People: Assessing lost potential and future earnings.
3) Common PAWE dispute triggers
Insurers often calculate PAWE conservatively. Common reasons to dispute a decision include:
- Excluding regular overtime, bonuses or shift allowances.
- Using the wrong averaging period (e.g. including periods of unpaid leave).
- Failing to account for a recent promotion or salary increase.
- Misunderstanding business expenses for self-employed claimants.
If you suspect your PAWE is too low, contact us immediately for a review of the insurer’s math.
Frequently asked questions
- What is PAWE (Pre-accident Weekly Earnings)?
- PAWE is the average weekly amount of gross earnings you received before your motor accident. It is defined in Schedule 1 of the Motor Accident Injuries Act 2017 and is used to calculate your weekly income support payments.
- Why are there different types of PAWE calculations?
- The law recognizes that employment circumstances vary. Schedule 1 provides different rules for standard employees, the self-employed, students, and those whose employment status recently changed, ensuring the calculation is as fair as possible.
- Can I challenge the insurer’s PAWE decision?
- Yes. If the insurer uses the wrong calculation method or omits income (like overtime or bonuses), you can request an Internal Review and escalate to a PIC Merit Review if needed.