PAWE in NSW CTP claims: earnings rules and dispute steps

Under Schedule 1 of the Motor Accident Injuries Act 2017 (NSW), PAWE is generally worked out from gross earnings received before the accident. For many employees the starting point is a 52-week average, but the Act contains alternative rules for shorter work histories, changed employment, self-employment and other non-standard situations.

The PAWE figure is important because it becomes the baseline for weekly statutory benefits. The payable weekly amount can then change depending on the post-accident period, capacity for work, earning capacity, and other statutory benefit rules. It is worth checking the insurer’s worksheet rather than only reading the final dollar figure in the decision letter.

Most PAWE errors start with the wrong category. Before arguing about arithmetic, identify which pathway best matches your work situation at the accident date:

• Standard employees: 52-week averaging, regular overtime, allowances, payslips and payroll summaries.
• Self-employed people and contractors: business income, deductible expenses, BAS records, invoices, accountant material and seasonal income patterns.
• Recent employment changes: new jobs, promotions, changed hours or pay rises shortly before the crash, including when a simple 52-week average may understate current earnings.
• Students and young people: part-time work, study-to-work transitions and evidence showing the likely earning pattern that existed or was about to start.

If more than one pathway may apply, write down both options and ask the insurer to explain why it selected one method over the other.

A PAWE decision may need review when the insurer’s reasons do not match the source documents. Common triggers include:

• regular overtime, loadings, allowances, commissions or bonuses being left out without explanation;
• unpaid leave, injury leave, parental leave or a temporary reduction in hours being averaged in without considering whether an alternative rule applies;
• a recent promotion, pay rise, new job or increased roster not being reflected in the calculation;
• self-employed income being reduced by expenses that do not reflect actual earning capacity, or by incomplete tax records; and
• the insurer relying on a single employer certificate when payslips, bank deposits or payroll summaries tell a different story.

If you suspect your PAWE is too low, compare the insurer worksheet against the documents before the internal review deadline. You can also ask for advice about whether the dispute should stay with the insurer first or be prepared for the Personal Injury Commission.

The strongest PAWE disputes are usually structured in the first two weeks, not after months of back-and-forth emails.

1. Day 1–2: Request the insurer worksheet and written reasons. Ask for the exact earnings components included and excluded.
2. Day 2–5: Build a one-page issue map: insurer figure vs your figure, with page references to supporting records.
3. Day 4–8: Prepare one indexed evidence pack (earnings records, leave explanations, employer/accountant letters, chronology).
4. Day 7–10: Lodge a focused internal review request that stays on PAWE methodology rather than mixing every dispute in your claim.
5. Day 10–14: If unresolved, prepare for PIC merit review with the same issue map and indexed documents so the file is reviewer-ready.

If your deadline is close, lodge the core pack first to preserve rights and then supplement evidence on a stated date.