Article Worker's compensation lump sum payments for permanent impairment Tasmania Australia

Worker's Compensation Lump Sum Payments for Permanent Impairment in Tasmania

In addition to medical expenses and weekly payments for loss of income, you may be entitled to lump sum compensation.

If you're injured at work in Tasmania, you're entitled to make a claim for a variety of worker's compensation benefits. If you've lodged a claim and it's been accepted, you are entitled to medical expenses and weekly payments for loss of income. In addition to these benefits, you may also be entitled to lump sum compensation due to permanent impairment.

In this blog, we explore:

• who is eligible for a permanent impairment claim;
• how whole person impairment is determined;
• time limits for permanent impairment claims;
• disputing a decision about your claim; and
• how much compensation is payable for a permanent impairment claim.

What is a Permanent Impairment Payment?

A payment for permanent impairment is a lump sum awarded under the Workers Rehabilitation and Compensation Act 1988 (Act) to a person injured at work, compensating them for the impact that the injury has had on their life.

The permanent impairment lump sum is paid in addition to all other entitlements under the Act, including weekly payments, medical expenses, rehabilitation, and other benefits.

Who is Eligible for a Permanent Impairment Lump Sum Payment?

The Act details who is eligible to claim a lump sum for a permanent impairment after a workplace injury.

Permanent Impairment Claims Due to a Physical Injury

For physical injuries, a worker must demonstrate that they have at least a 5% whole person impairment. A worker may qualify for a lump sum if their whole person impairment is less than 5% if their injury relates to loss of part, or all, of a finger or toe.

Permanent Impairment Claims Due to a Psychiatric Injury or Illness

For psychiatric injuries, a worker must demonstrate that they have at least a 10% whole person impairment. Importantly, the worker will not qualify for a psychiatric whole person impairment unless their psychiatric injury has been directly caused by their workplace incident. This is known as a primary psychiatric injury.

An example of a secondary psychiatric injury, which would not qualify for a whole person impairment lump sum, is when a worker suffers from anxiety/depression because of changes in their lifestyle following a physical injury at work.

How is Whole Person Impairment Determined for Worker's Compensation in Tasmania?

A whole person impairment assessment must be undertaken by an accredited medical practitioner. We recommend seeking legal advice so that an appropriately qualified expert can be arranged for you.

If the worker has multiple injuries arising out of the same incident, then the whole person impairment assessment for each of those separate injuries can be combined to claim a lump sum payment. Having an experienced worker's compensation lawyer help you with your claim will ensure all your injuries are accounted for and will maximize the compensation payable.

When Can I Claim Lump Sum Compensation for Permanent Impairment?

A worker's injury must have stabilized before a claim for permanent impairment lump sum can be made.

Prior to an impairment evaluation, it must be shown that the impairment is unlikely to change substantially, regardless of any further medical treatment. Once this occurs, the injury is referred to as 'stabilized'.

An injury has stabilized if the impairment is unlikely to change by more than a 3% whole person impairment in the next year. An accredited medical practitioner is able to give this opinion.

Time Limits to Claim Worker's Compensation Permanent Impairment

Provided that a worker's compensation claim has been made in accordance with the Act, there are no time limits which apply to making a claim for a permanent impairment lump sum compensation. This is the case even if your worker's compensation claim was made several years ago or even a decade ago.

Notably, however, delays in bringing a claim for a permanent impairment can negatively affect the potential for a successful claim.

If you think you may have an entitlement to a permanent impairment lump sum, we recommend seeking legal advice as soon as possible.

Can I Dispute the Decision About My Permanent Impairment Claim?

When seeking permanent impairment lump sum compensation, you may be asked to do an assessment by your employer. You may disagree with the outcome of the assessment and choose to obtain your own assessment. This can lead to a dispute in relation to the correct impairment percentage to be attributed to your injury.

These disputes can be resolved through negotiation or, if this fails, by issuing proceedings in the Workers Compensation Tribunal.

How Much Can Be Claimed for Impairment After a Workplace Injury?

The compensation payable for a permanent impairment claim varies depending on the year that the injury occurred, the nature of the injury, and the percentage of the whole person impairment.

An Example of Lump Sum Compensation Payable

• A worker suffers an injury to their leg in 2024;
• The injury does not involve the loss of a finger or toe;
• If the worker is assessed as having a 5% whole person impairment, the compensation payable will be $18,690.12;
• If the worker is assessed as having 20% whole person impairment, the compensation payable will be $113,698.23.

Get Help from a Worker's Compensation Lawyer

We strongly recommend seeking legal assistance when claiming lump sum compensation for permanent impairment after a workplace injury.

Our lawyers are highly skilled and experienced in worker's compensation permanent impairment claims. We will prepare your claim thoroughly and ensure all aspects of your injury or illness are included in the claim, to maximize the compensation payable to you.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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