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General damages and permanent impairment

What “pain and suffering” compensation actually is, how each state scores it, and why two people with the same injury can receive very different amounts.

Updated 25 August 2026 Sources listed below

What general damages cover

General damages, also called non-economic loss, compensate for pain, suffering, disfigurement, loss of amenities of life and reduced life expectancy. They are separate from economic loss (income) and special damages (treatment and care), and are the part of a claim most heavily regulated by state law.

How each state scores it

  • NSW: a percentage of a “most extreme case”, payable only from 15% under the Civil Liability Act, or above 10% whole-person impairment for motor accidents, with an indexed cap.
  • Queensland and SA: the Injury Scale Value, a 0 to 100 score per injury converted to dollars by regulation. SA requires ISV 11 or more for motor accidents.
  • Victoria: a “significant injury” threshold (over 5% physical, 10% psychiatric) for negligence claims, and a “serious injury” gateway (30% or the narrative test) for TAC and WorkCover damages, each with an indexed cap.
  • WA: a percentage of a most extreme case above a 5% threshold for motor accidents, with indexed thresholds and caps under the Civil Liability Act.
  • Tasmania, ACT and NT: Tasmania and the NT apply thresholds and caps; the ACT has no cap for negligence claims.

Permanent impairment lump sums

Workers compensation schemes pay a separate no-fault lump sum for permanent impairment, assessed as a whole-person impairment percentage under the AMA Guides or a state adaptation. Minimum thresholds range from 1% (Queensland) to 11% (NSW physical) and 15% (NSW psychological). Reaching the common law threshold, 15% in NSW and WA, 30% in Victoria and SA, is what unlocks a negligence claim on top.

Why the assessment matters

One or two percentage points at a threshold can be the difference between a statutory lump sum and a common law settlement several times larger. Assessments are done once your condition has stabilised, by accredited assessors, and your lawyer’s job is to make sure every injury is assessed and the evidence supports the true degree of impairment.

Sources

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