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Permanent impairment

If an injured worker suffers a permanent impairment as a result of a work injury, they may be entitled to a lump sum compensation payment, as well as income and medical support.

The lump sum payment for non-economic loss compensates for:

  • pain and suffering
  • loss of amenities of life
  • loss of expectation of life
  • any other loss or detriment of a non-economic nature.

Medical practitioners accredited with WorkCover undertake permanent impairment assessments. Case managers use the reports from these assessments to determine a worker's entitlement.

Legislative changes regarding permanent impairment came into effect on 1 April 2009.

The most significant change was that the maximum amount payable to workers who suffer a permanent, serious injury or illness increased from $230,982 to $400,000.

A threshold of 5% whole person impairment (WPI) was also introduced. This means that if a worker's permanent impairment is below 5% WPI, they are not entitled to receive lump sum compensation for non-economic loss.

Workers with psychiatric injuries are not eligible to received lump sum compensation for non-economic loss.

Section 43 of the Workers Rehabilitation and Compensation Act 1986 outlines the entitlements for permanent impairment.

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