VICTORIA LOSS OF WAGES COMPENSATION

Compensation for Loss of Wages in Victoria

In Victoria, there is a motor vehicle accident compensation scheme which is operated by the state government. It is the Transportation Accident Commission, commonly referred to as the TAC. The TAC is essentially an insurance company which is funded by the government. It was created to compensate individuals who have been injured in a transport accident within Victoria. Compensation may also be available to a person hurt in an accident taking place outside of Victoria while riding or driving in a vehicle registered in Victoria.

If your claim is accepted, there are a number of entitlements which the TAC in Victoria must pay you. One of those entitlements is loss of wages. The TAC compensates individuals whose transport accident injuries have rendered them unable to work. There are two types of payments made by the TAC for lost wages: loss of earnings benefits and loss of earning capacity benefits.

Loss of Earnings Benefits

For the first eighteen months following your accident, the TAC in Victoria pays loss of earnings benefits for each day you cannot work because of the injuries you incurred in the accident. However, you are only entitled to compensation for your first five days of missed work if you are able to prove that you will suffer financial hardship unless you are compensated for those days.

An individual who is entirely unable to work due to the injuries they sustained in the accident will be paid either 80% of their pre-accident weekly earnings or a statutorily-defined minimum payment. The claimant will receive the greater of the two payments. The amount of loss of earnings benefits paid out will be reduced proportionately for those individuals who are able to work a limited number of hours.

Note that a statute places a limit on the amount of compensation you may collect each week in the form of loss of earnings benefits.

Loss of Earning Capacity Benefits

Those with severe injuries may still be incapable of working in their pre-accident capacity after the initial 18-month period has expired. In these cases, you are entitled to receive continued loss of earnings benefits from the TAC for the days on which you cannot work because of your accident-related injuries.

Typically, the Victorian TAC will cease making loss of earnings payments after three years. The exception is individuals whose injuries have left them with a 50% or greater impairment. Individuals with impairments of that severity will continue to receive loss of earning capacity benefits from the TAC even after the 3-year anniversary of their accident.

During the time period of eighteen months to three years after the date of your accident, you will receive 80% of your pre-injury earning capacity or the minimum payment set forth by statute, whichever of the two is greater.

The TAC considers a variety of factors in determining your pre-accident earning capacity. Your skills, experience, training and your chance of making a full recovery are all looked at. The amount of compensation the TAC calculates may or may not be equal to your pre-accident weekly earnings. Loss of earning capacity benefits are reduced accordingly for those suffering only a partial loss of earning capacity.

As with the loss of earnings benefits, a statutory cap is placed on the amount of compensation you can receive in the form of loss of earning capacity benefits.

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Compensation claims for fatal accidents or catastrophic injuries call for the legal services of a solicitor with specialised knowledge. Our solicitors have extensive experience and are qualified to handle these complex cases. If the accident occurred as a result of negligence by a third party then our specialist lawyers can help you to assert your legal rights and get the compensation you deserve. If you would like free advice without further obligation just complete the contact form to speak to one of our experts.