NSW Work Injury Damages

Written by Haidar Saab

Reviewed by Jackson Bartulovic

Written by Haidar Saab

Reviewed by Jackson Bartulovic

4 min read
Published: September 30, 2021
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Work Injury Damages Across Australia: How Different States Approach Employer Negligence Claims

Workers who suffer injuries because of their employer’s negligence may have the right to pursue work injury damages (WID) or common law damages, depending on the jurisdiction. While all states apply negligence principles, the legislation, available damages, and procedural gateways differ significantly between NSW, Queensland, the ACT, and Western Australia.

This consolidated guide outlines how WID claims operate across these jurisdictions, supported by key case examples and statutory frameworks.

 

  1. Understanding Work Injury Damages in Australia

Regardless of location, a worker pursuing damages must establish:

  • The employer owed a duty of care;
  • The employer breached that duty by failing to take reasonable precautions; and
  • The worker suffered injury and economic loss as a result.

Across all states, these claims commonly arise in industries involving physical labour, animals, machinery, or hazardous tasks, where employers must implement adequate systems of work, supervision, training, and assistance.

Although the underlying principles are consistent, the entitlement to damages and statutory thresholds vary widely.

 

Comparison Table: Key Features of Work Injury Damages in Each Jurisdiction

Jurisdiction Governing Legislation Available Damages Threshold Requirements Example / Context
NSW Workers Compensation Act 1987; Workplace Injury Management and Workers Compensation Act 1998 Past and future economic loss only Must prove ≥15% Whole Person Impairment (WPI) McCormick v Mt Pleasant Stud Farm: $1.395M awarded for failure to provide adequate assistance
QLD Workers’ Compensation and Rehabilitation Act 2003 Economic loss + general damages (ISV-based) Must receive a Notice of Assessment & meet procedural gateways Archer v Simon Transport: employer must take precautions for foreseeable risks
ACT Workers Compensation Act 1951; Workers’ Compensation and Safety Act 2011 Broad damages including economic loss, pain & suffering, loss of amenities No restrictive caps like NSW/QLD Claims often arise from hazardous duties without supervision
WA Workers’ Compensation and Injury Management Act 2023 Past & future earning capacity loss, with statutory limits Must elect to sue + meet minimum WPI threshold Claims common in agriculture, livestock and machinery work

 

  1. New South Wales – McCormick v Mt Pleasant Stud Farm Pty Ltd (No. 2) [2021] NSWDC 489

In NSW, WID claims sit at the intersection of negligence and the statutory workers compensation scheme. Damages are strictly limited to:

  • Past loss of earnings
  • Future loss of earning capacity

In McCormick, the plaintiff, an experienced horse trainer, fell while breaking in a young horse, a recognised hazardous task. The Court found the employer negligent for failing to provide an assistant capable of controlling the horse during the process.

The worker’s ongoing neck, arm and shoulder injuries rendered him unfit for his occupation. Sidis ADCJ held that, even if some residual capacity existed, the plaintiff would present poorly to potential employers due to his disabilities.

He received $1,395,525 for economic loss.

 

  1. Queensland – Archer v Simon Transport Pty Ltd [2016] QCA 168

Queensland workers may pursue common law damages if they can:

  • Prove employer negligence, and
  • Satisfy impairment and procedural gateways managed by WorkCover Queensland.

Unlike NSW, general damages for pain and suffering may be awarded, based on an Injury Scale Value (ISV).

In Archer, although the dispute concerned procedural matters, the case reinforced that employers must take reasonable precautions against foreseeable risks, especially where tasks involve heavy machinery, lifting, or hazardous work environments.

A typical Queensland claim involves injuries to the back, spine, shoulders, or upper limbs, often preventing a return to the worker’s usual role and supporting substantial future economic loss awards.

 

  1. Australian Capital Territory – Common Law Damages Under ACT Legislation

In the ACT, work injury damages can be pursued under:

  • Workers Compensation Act 1951
  • Workers’ Compensation and Safety Act 2011
  • Common law negligence principles

The ACT permits broader damages than NSW or QLD, including:

  • Past and future economic loss
  • Pain and suffering
  • Loss of amenities of life

There are no restrictive caps similar to NSW’s WID limitations or Queensland’s ISV system.

Claims often arise from hazardous duties, such as handling animals or machinery, performed without adequate supervision, training, or assistance. Where permanent disability prevents a worker from returning to meaningful employment, significant compensation may be awarded.

  1. Western Australia – Common Law Damages Under the Workers’ Compensation and Injury Management Act 2023

In WA, injured workers must:

  1. Elect to pursue common law damages, and
  2. Meet a statutory whole person impairment threshold.

WA follows a more structured statutory framework, limiting compensable damages to:

  • Past wage loss
  • Future loss of earning capacity

Similar to NSW, non-economic damages are constrained.

Industries involving livestock, machinery, or agricultural work frequently give rise to claims. Employers must implement safe systems of work, including training, adequate supervision, and risk management, particularly where duties carry inherent unpredictability or physical risk.

Courts focus on whether the worker can return to physically demanding employment. If disability prevents such employment, future economic loss can be substantial.

Conclusion: Understanding Your Rights Across Jurisdictions

While all Australian jurisdictions allow injured workers to claim damages where employer negligence is proven, each state differs significantly in:

  • Available heads of damage
  • Eligibility thresholds
  • Procedural requirements

In summary:

  • NSW and WA strictly limit damages to economic loss,
  • QLD uses an ISV system allowing broader recovery, and
  • ACT offers the widest scope for common law damages.

Across all regions, courts consistently assess whether the worker retains any meaningful earning capacity. Where disabilities severely impact employability, substantial compensation may be awarded.

If you have suffered a work-related injury due to employer negligence, obtaining legal advice early is essential to ensure you meet statutory requirements and maximise your entitlement to compensation.

If you or anyone you know has suffered a work-related injury as a result of your employer’s negligence, please contact Musstafa Al-Khafaji of our Personal Injury Team on 02 6188 3600