You may receive compensation for economic loss if:

  • because of your injuries, you could not work (or you worked less) for more than one week, and/or
  • your injuries will impact your ability to work and earn money in the future.

The first week of loss income is not covered.

Economic loss payments

If you receive compensation for economic loss, it will be paid when your claim settles. If you are in financial distress, contact the insurer to discuss your options.

The Civil Liability Act 1936 says that economic loss payments need to be reduced by 20%. There are also other reductions that might apply, for example if you were not wearing a seatbelt. When you're settling your claim, the insurer will explain any reductions to you.

There are limits on the total amount you can receive. Refer to the Table of Prescribed Maximum Economic Loss.

Proving economic loss

You will need to give the insurer proof of your income. This could be payslips, your employment contract, a letter from your employer, or recent tax returns.

If you are unsure about what to provide, contact your CTP Insurer to discuss.

Future economic loss

You can receive 'future economic loss' if your injuries will have a negative impact on your ability to work and earn money in the future. To be eligible for this, your Injury Scale Value (ISV) needs to be eight or more.

Interest is not payable on future economic loss payments.

Superannuation contributions

Any lost super contributions will be included in the amount you receive. This is calculated using the Australian Taxation Office's Superannuation Guarantee Rate.

If your employer was paying your super at a higher rate, you will need to give the CTP Insurer proof of this higher rate. This could be payslips, your employment contract, or the relevant Industry Award/Enterprise Bargaining Agreement (EBA).

If you were self-employed at the time of the accident, and were paying yourself superannuation, the insurer will need proof of this.