TAC Loss of earnings / Loss of earning capacity benefits

If you are an earner and you are unable to work because of your injuries suffered in your transport accident, the TAC must pay you loss of earning benefits. Under the law you may be considered an 'earner' even if you were a seasonal worker or you were not working at the time of the accident.

Do you qualify as an earner by the TAC?

To qualify as an earner you must be:

  • at least 15 years of age, and
  • have been in full time or part time employment at:
    • anytime during 8 weeks immediately before the accident, or
    • during a period or periods equal to at least 13 weeks during the year immediately before the accident, or
    • during a period or periods equal to at least 26 weeks during the 2 years immediately before the accident, and
  • you must not have retired permanently from all work before the accident.

You will also be considered an earner if you had entered into an employment arrangement with an employer prior to your accident and were due to start work in accordance with that arrangement.

What must the TAC pay?

If you are unable to work because of your injuries, the TAC must pay you loss of earnings benefits for the first 18 months following your accident. This is the case whether or not you are fully or partially incapacitated for work.

You must submit a medical certificate from your treating doctor to the TAC before payments will be made.

The TAC must pay you 80% of your average pre-injury weekly earnings. When calculating your loss of earnings rate, the TAC must take into account certain changes in your employment such as promotions or increases in wages or hours worked by you. The TAC cannot pay you below the minimum or above the maximum weekly rate prescribed under the law.

Please note that the TAC is not liable to pay the first five days of lost wages, unless there is acute financial hardship.

If you are still unable to work after 18 months following your accident, the TAC must pay you loss of earning capacity benefits for the period up to three years after your accident. If you were not an 'earner' at the time of your accident but were planning on returning to work then you may be entitled to receive loss of earning capacity benefits for this period.

What happens after three years?

Your entitlement to lost wages will cease after three years unless you have suffered a level of whole person impairment of 50% or greater.

The TAC may also contribute to lost wages incurred beyond three years if you have to take further time off work because of a surgical procedure relating to your injuries.

Want to know more?

Our team of expert TAC lawyers are happy to advise you on your situation during a free first consultation. For advice and help with a claim, click here to be to be contacted by a member of our team or call 1800 810 812.