What You Can Claim for Economic Loss After a Motor Accident in NSW
If you were injured in a motor accident in New South Wales and are unable to return to your usual daily activities, including work, household duties or caring for dependants, you may be entitled to compensation for economic loss under the Motor Accident Injuries Act 2017 (MAIA). This includes lost income, reduced future earnings, and the cost of replacing tasks you can no longer perform. The assessment is based on actual financial impact, not medical diagnosis alone. The law recognises that economic loss arises not only from formal employment but also from unpaid roles such as homemaker, carer, student or volunteer.
Types of Economic Loss Recognised in NSW CTP Claims
Under the MAIA, economic loss includes:
- Lost income during time off work due to injury
- Reduced future earnings if your capacity to work is permanently affected
- The cost of hiring help to perform household tasks you can no longer do, such as cleaning, cooking or caring for children
- Financial loss from being unable to participate in family or community roles that involve time and effort
These claims are assessed using the Motor Accident Guidelines and must be supported by objective evidence. For example, if you were a part-time teacher who can no longer return to work due to a soft-tissue injury, you may claim for past and future lost wages, as well as the cost of a home care assistant.
How Evidence Is Used to Determine Compensation
SIRA assesses economic loss using a structured approach that focuses on actual financial impact. Key evidence includes:
- Medical reports from your treating practitioner detailing functional limitations and prognosis
- A vocational assessment if your injury affects your ability to return to your usual occupation
- Pay slips, tax returns or employment contracts showing your pre-accident income
- Records of actual out-of-pocket expenses, such as hiring a cleaner or arranging transport
- A diary or log of daily activities showing how your injury limits your routine
Photographs, witness statements from family or colleagues, and correspondence with your insurer may also support your claim. Claims must be based on verified financial loss, not assumptions. For example, if you claim for childcare costs, you must show that these were incurred because you were unable to care for your children after the accident.
What Happens If Your Injury Prevents a Return to Work
If your injury prevents you from returning to your usual daily activities, you may be eligible for weekly payments and treatment and care benefits under the MAIA. However, if your only injuries are threshold injuries, including soft-tissue injuries as defined under MAIA s 1.6, weekly benefits and treatment and care generally cease after 52 weeks from the date of the accident. This applies only if no other injuries are present that would allow for a damages claim.
For claims involving reduced earning capacity, the assessment considers your pre-accident employment status, the nature and duration of the injury, and your ability to return to work in a modified or alternative role. A vocational assessment may be required to determine whether you can perform any work that matches your skills and physical capacity.
Practical Steps After a Motor Accident in Greater Sydney
If you were injured in a motor accident in Greater Sydney and are struggling to return to daily life, take the following steps:
- Seek medical treatment immediately and keep all records
- Notify your insurer or the insurer of the at-fault driver as soon as possible
- Document how your injury affects your daily routine, including work, household tasks and personal care
- Preserve all financial records related to income loss or additional expenses
- Avoid making statements to insurers without first obtaining independent legal advice
CTP coverage applies regardless of whether the accident occurred on a public road, in a car park, driveway or private property, as long as the vehicle was being used in a way that constitutes a motor accident under the law. The location does not affect your entitlement to claim for economic loss, but it may influence the evidence needed to establish the incident.
Time Limits and Dispute Options
You must notify your insurer within 6 months of the accident, or within 6 months of when you first became aware of a permanent injury, whichever is later. If you miss this deadline, you may still apply to the Civil and Administrative Tribunal (NCAT) for an extension, but this is not guaranteed.
If your claim for economic loss is rejected or you disagree with the amount offered, you may request a review from your insurer or apply to NCAT for a determination. Disputes often arise over the extent of functional impairment, the accuracy of income records, or the calculation of future loss. SIRA’s guidelines state that claims must be supported by objective evidence, not just personal opinion.
Next Steps
Every claim depends on its own facts. To request contact about your circumstances, complete the quick, no obligation enquiry form.