How is the total amount of permanent disability calculated?
Calculating the total amount of permanent disability compensation in Queensland involves a detailed process governed by the Workers’ Compensation and Rehabilitation Act 2003. The system is designed to ensure that workers who suffer permanent injuries or illnesses due to their employment receive fair, transparent, and proportionate compensation based on the severity and impact of their impairment.
1. Assessment of Permanent Impairment (DPI)
The first step in the process is the assessment of the Degree of Permanent Impairment (DPI). This assessment is crucial because it determines the percentage of whole-person impairment resulting from a work-related injury or illness.
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When is DPI assessed?
The DPI assessment occurs once the injury is considered “stable and stationary”—meaning no significant improvement or deterioration is expected. -
Who conducts the assessment?
A specially trained and accredited medical practitioner evaluates the worker using the Queensland Guide to the Evaluation of Permanent Impairment (GEPI). -
What does DPI represent?
The DPI is expressed as a percentage, reflecting the loss of function or capacity compared to a healthy person of the same age and sex.
2. Statutory Lump Sum Compensation Calculation
The statutory lump sum is the primary form of compensation for permanent impairment in Queensland. It is calculated using a formula that multiplies the DPI percentage by a set value, which is linked to the Queensland Ordinary Time Earnings (QOTE). QOTE is reviewed annually to keep compensation amounts in line with wage growth and inflation.
2024–2025 Financial Year Example
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QOTE (2024–25): $1,844.70 per week
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Maximum statutory compensation for a single injury: $761,150
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Lump sum per 1% DPI: $3,805.75
Sample Lump Sum Payouts (2024–25):
| DPI (%) | Lump Sum Compensation |
|---|---|
| 1% | $3,805.75 |
| 5% | $19,028.75 |
| 10% | $38,057.50 |
| 20% | $76,115 |
| 30% | $114,172.50 + extra |
| 50% | $190,287.50 + extra |
| 100% | $380,575.00 + extra |
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For DPIs up to 29%, the payout is strictly proportional to the DPI.
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For DPIs of 30% and above, additional compensation is added, reflecting the more severe and life-altering nature of higher impairments.
3. Additional Compensation: Gratuitous Care
If a worker’s DPI is 15% or greater and they require ongoing daily care from family or friends (gratuitous care), they may be eligible for extra compensation. The amount depends on the level of care required and can range from a few thousand dollars to over $400,000 for the most severe cases.
4. Statutory Lump Sum vs. Common Law Claims
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DPI below 20%:
Workers must choose between accepting the statutory lump sum or pursuing a common law claim (for negligence). Accepting the lump sum generally ends the right to further compensation for the same injury. -
DPI 20% or more:
Workers can accept the statutory lump sum and still pursue a common law claim, which may result in higher compensation if negligence can be proven.
5. Maximum Caps and Multiple Injuries
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The maximum statutory lump sum for a single injury in 2024–2025 is $761,150.
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For multiple injuries from one incident, the same cap applies, but calculations may differ if injuries are assessed separately.
6. Calculation Process Summary
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Injury occurs and is reported to the employer and WorkCover Queensland.
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Medical treatment and recovery take place.
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DPI assessment is conducted when the injury is stable.
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Lump sum offer is made based on the DPI and QOTE.
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Worker decides whether to accept the lump sum or pursue further legal action.
Conclusion
The total amount of permanent disability compensation in Queensland is determined by a combination of the DPI percentage, the annually updated QOTE, and any additional entitlements for severe impairment or care needs. This system ensures that compensation is fair, transparent, and proportionate to the lasting impact of the injury, providing essential financial support to workers facing permanent changes to their health and lifestyle.
