Lump sum payments for permanent impairment
Clear guidance about lump sum workers’ compensation payments for permanent impairment, how to get assessed and what to expect.
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When you may be eligible for a lump sum payment
If you’ve had a work‑related injury or illness that has resulted in a permanent impairment, you may be able to get a lump sum payment.
This is a one-off payment made instead of ongoing weekly or medical benefits.
Your access to a lump sum depends on the results of a medical assessment.
This assessment is done when your injury has healed as much as it can and your claim is coming to an end.
Examples of a permanent impairment may include:
- loss of effective use of a part of your body
- loss of part of your body
- a psychological or psychiatric incapacity.
How to get assessed
You can ask for a permanent impairment assessment for any accepted work-related injury.
We may also ask for the assessment during your claim.
The assessment will work out the percentage of permanent impairment. This can range from 0% to 100%.
An independent doctor or a panel of doctors from a medical assessment tribunal does your assessment and sends it to us.
If you need to have a psychiatric injury assessed, it must be done by the medical assessment tribunal.
After the assessment
The doctor (or the medical assessment tribunal) will send us the results of your assessment, including your percentage of permanent impairment.
This helps decide if you’ll get a lump sum and how much.
We’ll send you a Notice of Assessment that outlines:
- the details of your assessment
- any lump sum offer
- what your options are.
If you don’t agree with the assessment
You can ask for another independent doctor to assess you or request a review by a medical assessment tribunal.
You’ll just need to let us know within 20 business days of receiving your assessment notice.
We’ll let you know within 10 days whether a reassessment will go ahead.
After the review
The decision made by the medical assessment tribunal is final.
If you get a second assessment from another doctor and still don’t agree, you can ask for a final medical tribunal review — and that decision will be final.
How lump sum amounts are set
Your lump sum amount is based on your impairment rating, using the ranges set out in the Workers’ Compensation and Rehabilitation Regulation 2025.
Each affected part of your body is given a score which is then calculated into an impairment percentage.
Deciding whether to accept the lump sum
If your impairment is less than 20%
You must choose to either:
- accept the lump sum
- reject it.
You can defer your offer and decide later whether to take the lump sum or pursue common law damages.
If you reject the lump sum offer, you can explore a common law claim if you believe your employer was at fault for your work-related injuries.
If you don’t respond within 20 business days, your offer is automatically deferred.
If your impairment is 20% or more
If your impairment is 20% or more, you can accept the offer and seek common law damages, if you believe your employer was at fault for your work-related injuries.
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