If you’re unable to work due to a car accident, you may be eligible for a loss of income claim. These claims, made through your state’s insurer (eg TAC in Victoria or SIRA in New South Wales), if successful provide regular payments to ensure you can focus on your recovery without worrying about the bills.
What are loss of income benefits?
Loss of income benefits are regular payments made by your state’s insurer following an accident. These payments differ between states and territories and can vary from months to years after an accident.
These payments are calculated through determining your pre-injury income and how the injury has impacted your ability to work. For example, if you’re unable to work at all because of your injuries, your payments may be higher than someone who’s on reduced days or shift times.
To receive payments, you’ll need to provide evidence of your pre-accident earnings. This is often done through pay slips or a written statement from your employer.
How can we help?
Our motor vehicle accident lawyers are among the most experienced in the country, supported by a nationwide network to help ensure you have the right lawyer for your jurisdiction and circumstances.
If court proceedings become necessary, our lawyers will help you navigate the legal process with minimal disruption to your recovery.
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Definition of income or earnings
- Wages: Regular salary or hourly pay.
- Profits: Earnings from self-employment or business activities.
- Bonuses: Performance or end-of-year bonuses.
- Penalty rates and overtime: Additional pay for working outside standard hours or in challenging conditions.
- Commissions: Earnings based on sales or performance targets.
- Fringe benefits: Non-monetary compensation, such as company cars, health insurance, or other perks.
Who is covered?
To claim a loss of income benefit, you must have suffered a loss of earnings as a result of the accident. Motor vehicle accidents can happen to anyone at anytime, that’s why loss of income claims cover:
- Drivers: Covered if injured in a car accident, regardless of fault, under state-based insurance schemes.
- Passengers: Entitled to payments if injured while travelling in a vehicle involved in an accident.
- Pedestrians and cyclists: Covered if struck by a motor vehicle and unable to work due to their injuries.
- Motorcyclists: Eligible for loss of income benefits if injured in an accident, with some schemes covering no-fault claims.
- Workers injured while driving: Includes casual, part-time, full-time, seasonal, contracted, and FIFO employees injured in work-related motor vehicle accidents. These workers may be eligible under motor accident or workers' compensation schemes.
- Self-employed individuals: Covered if they have personal accident insurance or if they were not at fault.
Were you at fault or not at fault in a car accident?
Find out the difference between at fault and no fault compensation schemes and your eligible entitlements.
Frequently asked questions
Check your eligibility for a claim with our free online claim check tool which takes just three minutes. If you are eligible, a lawyer of your choosing can assist you with your claim and discuss your options.
The time to receive payments and time limits to lodge your loss of income claim varies between states and territories, so it’s important to speak with a lawyer as soon as possible to help ensure your paperwork is lodged before your state insurer’s deadline.
Time spans vary between states and territories, spanning from months to years after the accident. To better understand your state’s time limits, give us a call.
No, loss of income payments are separate to additional expenses such as medical expenses and rehabilitation which are covered by a personal injury claim through your state’s insurer, or a common law claim if you can prove another party was at fault for the accident.
Common law claims, which require proving negligence, may provide broader compensation and cover greater periods of economic losses.
Using a lawyer for loss of income benefits helps ensure you receive the maximum compensation. Lawyers help you navigate complex legal processes, handle paperwork, and can represent you in court if needed.
A lawyer's expertise can also help you avoid common pitfalls to secure maximum compensation, not just the statutory minimums.
Loss of income payments are generally considered taxable income, so they may affect your tax return. You’ll need to declare these payments when filing your taxes, and they may increase your taxable income for the financial year.
Time limits and eligibility for loss of income payments differ between states and territories, so it’s important to get in touch with a motor vehicle accident lawyer to guide you through your state jurisdiction’s rules and regulations.
- NSW: SIRA (State Insurance Regulatory Authority)
- VIC: TAC (Transport Accident Commission)
- QLD: NIIS (National Injury Insurance Scheme)
- TAS: MAIB (Motor Accident Insurance Board)
- SA: CTP (Compulsory Third Party)
- WA: ICWA (Insurance Commission of Western Australia)
- NT: MACC (Motor Accident Compensation Commission)
- ACT: MAIC (Motor Accident Injuries Commission)