The Motor Accidents Compensation Act and the Civil Liability Act both cap the earnings that can be claimed in a loss of income assessment, but they work in fundamentally different ways. One is gross-based, the other is net-based, and the result for the same plaintiff can differ significantly.

Incomplete financial information is one of the most common causes of delay in economic loss assessments. Understanding what a forensic accountant needs — and why — helps legal teams and their clients prepare more efficiently from the outset.

Australia's income tax rates changed from 1 July 2024, with the second marginal rate falling from 19% to 16%. This directly affects how net wages are calculated in economic loss reports and must be correctly applied to assessments covering the 2025 and 2026 financial years.

The Civil Liability Act 2002 limits the gross earnings that can be claimed in a loss of earnings assessment to three times the average weekly earnings in NSW. For higher-income plaintiffs, this cap can significantly reduce the damages available and must be correctly applied.

Average weekly earnings data from the ABS is one of the most important reference points in a personal injury assessment. It sets the earnings cap under the Civil Liability Act, drives attendant care rates, and provides a benchmark for a plaintiff's pre-injury income.