Personal Injury Compensation Amounts in Australia
Updated 22 September 2026 · General information, not legal advice
Personal injury compensation in Australia is the total of separate heads of damages (lost earnings, medical and care costs, and pain and suffering), and each head is limited by state thresholds and caps, so no single figure fits every claim. In NSW, for example, no damages at all are paid for pain and suffering unless it reaches at least 15% of a most extreme case (Civil Liability Act 2002 (NSW), s 16).
To estimate your own claim, list your losses under each head below, then check which scheme applies: a civil liability claim, a motor accident scheme or workers compensation. A lawyer from our list of Personal Injury & Compensation Lawyers in Australia can value the claim once your injuries have stabilised and your medical evidence is complete.
What makes up a personal injury compensation payout?
A personal injury payout is made up of four main heads of damages:
| Head of damages | What it covers | Main statutory limit |
|---|---|---|
| Past and future economic loss | Lost wages and lost earning capacity, plus lost employer superannuation contributions | Weekly earnings above 3 times average weekly earnings are disregarded (NSW s 12; Vic s 28F; Qld s 54; WA s 11) |
| Non-economic loss (general damages) | Pain and suffering, loss of amenities and enjoyment of life | Thresholds and maximums set by each state (see table below) |
| Medical and treatment expenses | Past and future hospital, medical, rehabilitation and medication costs | Must be reasonable and caused by the injury |
| Care and assistance | Paid care, and gratuitous care given by family or friends | Gratuitous care needs at least 6 hours a week for at least 6 months (NSW s 15; Qld s 59); Victoria bars it only if both are below those levels (s 28IA) |
What thresholds and caps apply to pain and suffering?
State laws limit pain and suffering damages in different ways; the table covers the main civil liability and motor accident schemes. The amounts below are the figures written into each Act; most are indexed each year, so the current maximum is higher than the base figure.
| Scheme | Threshold for non-economic loss | Maximum |
|---|---|---|
| NSW civil liability (Civil Liability Act 2002, s 16) | At least 15% of a most extreme case | $350,000 base, indexed annually (s 17) |
| NSW motor accidents (Motor Accident Injuries Act 2017, s 4.11) | Permanent impairment greater than 10% | $521,000 base, indexed (s 4.13) |
| Victoria civil liability (Wrongs Act 1958, ss 28LE, 28LB) | "Significant injury": more than 5% impairment (10% or more for psychiatric injury; 5% or more for spinal injury) | $577,050 base, indexed by CPI (ss 28G, 28H) |
| Victoria TAC common law (Transport Accident Act 1986, s 93) | "Serious injury"; 30% or more impairment is deemed serious | Set by the Act |
| Queensland (Civil Liability Act 2003, ss 61–62) | Injury scale value from 0 to 100 | Amount for each value fixed by regulation |
| Western Australia (Civil Liability Act 2002, ss 9–10) | Nothing is paid if the loss is assessed at or below "Amount A" ($12,000 in 2002–03, indexed); a deduction applies to assessments below "Amount A" plus "Amount C" | Indexed each financial year |
| South Australia CTP (Civil Liability Act 1936, Part 8) | Injury Scale Value of 11 or more in most cases | Maximum set for each ISV |
| ACT motor accidents (Motor Accident Injuries Act 2019, s 239) | Whole person impairment of at least 10% for a damages claim | Set by the Act |
How does the NSW 15% threshold work?
The NSW threshold works on a sliding table. The court rates the pain and suffering as a percentage of a most extreme case, then awards a set proportion of the indexed maximum under section 16(3) of the Civil Liability Act 2002 (NSW):
| Severity (% of a most extreme case) | Damages (% of the maximum) |
|---|---|
| Below 15% | Nil |
| 15% | 1% |
| 20% | 3.5% |
| 25% | 6.5% |
| 30% | 23% |
| 33% and above | Same percentage as the severity |
This table explains why modest injuries in NSW attract small non-economic loss awards, and why a small change in the severity rating between 25% and 33% changes the award sharply.
Why do personal injury compensation amounts vary so much?
Personal injury compensation amounts vary because each head of damages depends on facts that differ between claimants. The main factors are:
- The scheme. A NSW CTP claim, a Victorian Wrongs Act claim and a Queensland public liability claim apply different thresholds.
- Degree of impairment. Impairment ratings decide whether non-economic loss is payable at all.
- Pre-injury earnings and age. A younger, higher-earning claimant has a larger future economic loss, subject to the 3-times-average-weekly-earnings cap.
- Care needs. Long-term paid or family care adds significantly to a claim.
- Contributory negligence. Damages are reduced by the claimant's share of fault.
- Refunds and costs. Statutory refunds, legal costs and disbursements come out of the gross amount.
What is deducted from a personal injury settlement?
A personal injury settlement is reduced by three types of deduction before you receive it:
- Refunds. Amounts that must be repaid on settlement, such as Medicare benefits paid for accident-related treatment, which the Insurance Commission of Western Australia notes may need to be reimbursed.
- Legal costs and disbursements. Under a no win no fee agreement, these include professional fees, an uplift of up to 25% of those fees, and disbursements. In Queensland, legal costs on a speculative personal injury claim cannot exceed 50% of the amount left after refunds and disbursements (Legal Profession Act 2007 (Qld), s 347).
- Benefits already paid. Some schemes recover statutory benefits from a later damages award; in the ACT, defined benefits are recovered if the claimant receives damages (Motor Accident Injuries Act 2019 (ACT), s 247).
How conditional fees work, and the caps that apply, are explained on No Win No Fee Lawyers in Australia.
Is it better to settle or go to court?
Many personal injury claims resolve by negotiated settlement; Tasmania's Motor Accidents Insurance Board, for example, states that most of its common law claims settle through negotiation and mediation. Settling gives certainty and saves time and cost; going to court can produce a higher or lower award and exposes the losing party to an order to pay the other side's costs. A lawyer can advise whether an offer reflects the likely court outcome.
For the insurer's side, the same heads of damages and caps apply. Insurers test impairment ratings, earnings evidence and causation to reduce the amount payable.
Editor's picks
Chosen by our editors from verified facts and always labelled. Shown separately from the data-ranked list. How we rank law firms
Arnold Dallas McPherson
Victorian injury specialists since 1994 with 13 offices and strong Google ratings in Melbourne and Bendigo.
Melbourne VICBendigo VICShepparton VICRingwood VICMoonee Ponds VIC
View firm profile
TAC Lawyers
Specialist Victorian transport accident claims practice.
Melbourne VIC
View firm profileFinding a personal injury lawyer
A personal injury lawyer can value each head of damages, test the impairment assessment and advise whether an offer is fair. Compare ranked firms on Personal Injury & Compensation Lawyers in Australia, or by city: Personal Injury Lawyers in Sydney, Personal Injury Lawyers in Melbourne, Personal Injury Lawyers in Brisbane and Personal Injury Lawyers in Perth.
For road accidents, the claim steps in each state are in CTP Claims After a Car Accident.
Frequently asked questions
What is the average personal injury settlement in Australia?
There is no reliable single average, because each claim is the sum of separate heads of damages and each state applies different thresholds and caps. Two people with the same injury can receive very different amounts if their earnings, age and care needs differ.
Why is my settlement less than the amount agreed?
The agreed figure is usually reduced by legal costs, disbursements and any refunds you must make from the settlement, such as a Medicare reimbursement. Contributory negligence also reduces damages before they are paid.
Can I get compensation for care my family gave me?
Yes, if the care meets the statutory threshold. In NSW and Queensland, damages for gratuitous care are available only if the care was needed solely because of the injury and is provided for at least 6 hours a week for at least 6 months.