Psychiatric Injury Threshold, What Changed After 2017 Reforms in Balmain NSW
Where a person's only injuries resulting from the accident are threshold injuries, weekly benefits and treatment and care generally cease after 52 weeks (ss 3.11 and 3.28).
A threshold injury under the Motor Accident Injuries Act 2017 (NSW) includes a soft tissue injury and a psychological or psychiatric injury that is not a recognised psychiatric illness (adjustment disorder and acute stress disorder are the usual examples; s 1.6 and Motor Accident Guidelines Part 5).
The NSW Compulsory Third Party (CTP) reforms in 2017 significantly altered the criteria for claiming psychiatric injuries under the Motor Accident Injuries Act 2017. Before the reforms, psychological injuries such as anxiety or depression were often classified as 'threshold injuries' eligible for statutory benefits. However, the 2017 changes raised the threshold, requiring more rigorous evidence to qualify for compensation.
NSW CTP Rules Behind the Question
Under the revised rules, psychiatric injuries must now meet specific clinical criteria outlined in the Motor Accident Guidelines. These include neurological signs like radiculopathy (nerve root irritation) or other specified clinical indicators. The reforms also clarified that injuries must result directly from the accident, with no room for speculative or indirect claims.
Evidence and Practical Steps
To prove a psychiatric injury claim, claimants must provide:
- Medical records showing a diagnosed condition linked to the accident
- Evidence of clinical signs meeting the Motor Accident Guidelines
- Documentation of how the injury impacts daily life (e.g., work absence, therapy records)
For example, a person with post-traumatic stress disorder (PTSD) following a car accident would need medical evidence of specific symptoms like flashbacks or hypervigilance, not just general anxiety.
Time Limits and Dispute Options
Statutory benefits for threshold injuries are generally limited to 52 weeks. If your injury exceeds this threshold, you may pursue a common law damages claim, but this requires independent legal assessment. Disputes over injury classification must be resolved through the NSW Civil and Administrative Tribunal (NCAT) or court.
When to Seek Advice
If your injury involves psychological symptoms, consult a solicitor early to:
- Challenge SIRA's assessment of your injury's severity
- Explore options for common law damages
- Ensure all evidence meets the new threshold criteria
Example Illustrating the Change
Consider a Balmain resident who experienced panic attacks after a minor car accident. Under pre-2017 rules, this might have qualified as a threshold injury. Now, the claimant must prove clinical signs like autonomic symptoms (e.g., rapid heartbeat) or specific behavioral changes, not just subjective anxiety.
Next Steps
CTP entitlements depend on the accident date, injury type, and claim history. To discuss your circumstances, complete the quick, no obligation enquiry form.