PAWE for Students and Young People: Protecting Your Future
If you are a student or a young person starting your career, a standard calculation of your "pre-accident earnings" might show very low income or even zero. The NSW CTP scheme has specific rules to ensure you are not unfairly penalized for being at the start of your working life. General information only.
1) Calculations for Students
For claimants who were in full-time education (School, TAFE, or University) at the time of the accident, the insurer must consider what you likely would have earned. While your immediate weekly statutory benefits might be based on current part-time work, your long-term entitlements must reflect your intended career path.
2) Young Workers with limited history
If you have only been in the workforce for a few weeks or months, a 52-week average (including many "zero" weeks) would be inaccurate. In these cases, the insurer should calculate your PAWE based on your actual period of work or the rate of a person in a similar role.
3) The "Future Earning Capacity" Trap
One of the most complex areas of CTP law is determining the financial loss for someone who hasn't yet established a peak career. Insurers often try to "cap" their liability by assuming a young person would have only ever earned a minimum wage. Proving a higher potential capacity requires vocational evidence and academic records.
4) Why young claimants need specialized help
Because a young person's claim often represents 40+ years of potential lost income, the stakes are incredibly high. A small mistake in the early PAWE assessment or a failure to properly document your career goals can cost hundreds of thousands of dollars in future damages. Contact us to ensure your future is protected.
Frequently asked questions
- How is PAWE calculated for students who weren’t working?
- The Motor Accident Injuries Act 2017 includes provisions for students and young people. If you were in full-time study and had no significant earnings history, the insurer may use a "deemed" weekly amount or look at your potential earnings had the accident not occurred, depending on the circumstances.
- What if I was working part-time while studying?
- If you had part-time earnings, the standard 52-week average applies. However, as a student, your claim should also account for the loss of your "future" earning capacity once you would have graduated.
- Are young people entitled to different benefits?
- Statutory weekly benefits are generally calculated the same way, but young people often have significant "Common Law Damages" claims for future economic loss because the injury affects a much longer working life.