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TAC Payouts: How Much Compensation Can You Claim?
If you've been injured in a transport accident in Victoria, your compensation could be worth anywhere from a few thousand dollars to well over a million. Under the TAC scheme (current from 1 July 2026), impairment lump sums range from $9,890 for an 11% impairment up to $451,650 for a total impairment, and a common law claim can add pain and suffering damages of up to $701,620 and lost earnings of up to $1,578,760 on top. The reason the range is so wide comes down to two things: how your impairment is assessed, and whether a common law claim is open to you at all.
There is no single average TAC payout because the TAC doesn't publish one, and any single figure would be misleading. Compensation can range from less than $10,000 for a relatively minor permanent impairment to well over $1 million where someone qualifies for a serious common law claim.
What your claim is ultimately worth depends on your level of permanent impairment, whether another party was at fault, and whether you're entitled to pursue common law damages alongside your no-fault TAC benefits.
If you want to know where your situation sits on that scale, we can tell you in one free, no-obligation conversation, whether you're still finding your feet after a car accident or working through a claim already underway.
Key TAC compensation facts (1 July 2026)
- Three parts to a TAC payout: no-fault benefits, an impairment lump sum, and (where available) common law damages
- Impairment lump sum: available once your permanent impairment reaches 11% WPI, ranging from $9,890 to $451,650
- Common law caps (from 1 July 2026): pain and suffering up to $701,620, pecuniary loss up to $1,578,760, threshold $70,130
- No Win No Fee: you pay nothing in legal fees unless your claim succeeds
The three parts of a TAC payout
TAC compensation isn't one single figure. It's made up of up to three separate components, and most people are only ever offered the first.
No-fault benefits
Cover your medical treatment and income support while you recover, regardless of who caused the accident.
An impairment benefit
A one-off lump sum paid once your permanent impairment reaches 11% whole person impairment (WPI), calculated on a sliding scale.
Common law damages
A separate, larger claim available when someone else caused the accident and your injury is serious. This is where pain and suffering and lost earnings are compensated properly, and it's often where the real money sits.
Each component has its own rules and its own numbers, covered below.
How your TAC compensation is calculated
While every claim is different, your total compensation is generally worked out by adding together whichever of the three components apply to you: any no-fault benefits received during your recovery, an impairment benefit if your WPI is assessed at 11% or more, and common law damages if your injury qualifies as serious. Not everyone receives all three. The exact figure depends on your medical assessment, your work history, and whether a common law claim is available to you.
No-fault benefits: what the TAC pays regardless of fault
While you're unable to work because of your injuries, the TAC pays loss of earnings benefits: a percentage of your pre-accident earnings, up to a maximum of $1,730 per week, for up to the first 18 months. If your capacity for work is still reduced after that, loss of earning capacity benefits may continue, up to a maximum of $1,500 per week.
Medical and like expenses cover reasonable treatment connected to your accident, including ambulance, hospital, surgery, medication, physiotherapy and other services.
One thing worth knowing early: weekly income support payments are generally treated as taxable income, while lump sum compensation (the impairment benefit and common law damages) is generally not. More on this in the FAQs below.
Sources: TAC income support and the TAC indexation of benefits schedule.
For the full eligibility and claims process, see our
TAC claims guide
| Common law claim | Amount, from 1 July 2026 |
|---|---|
| Minimum threshold to claim | $70,130 |
| Maximum pain and suffering | $701,620 |
| Maximum pecuniary loss (past and/or future earnings) | $1,578,760 |
How much is the TAC impairment benefit?
Whole person impairment (WPI) is a percentage that measures how much of your overall function you've permanently lost because of your injuries. It's assessed by an independent doctor against a standard set of medical guides, once your injuries have stabilised, usually 12 months or more after the accident. If you have more than one injury, the individual scores are combined into a single overall percentage.
That percentage is what drives the money. An impairment of 10% or less receives no lump sum. From 11% WPI, you qualify for the impairment benefit set out in the table below. And 30% WPI or more is one of the gateways into a much larger common law claim, covered in the next section.
A single percentage point either side of 11% or 30% can change the outcome enormously, which is exactly why the assessment itself matters, and why it's worth getting advice before you accept one.
TAC impairment benefit table (current from 1 July 2026, indexed annually under the Transport Accident Act 1986. An impairment of 10% or less receives no benefit; a minor's benefit of $244 applies separately.)
| WPI | Benefit | WPI | Benefit | WPI | Benefit |
|---|---|---|---|---|---|
| 11% | $9,890 | 41% | $83,370 | 71% | $179,480 |
| 12% | $11,720 | 42% | $86,060 | 72% | $183,090 |
| 13% | $13,550 | 43% | $88,750 | 73% | $186,700 |
| 14% | $15,380 | 44% | $91,440 | 74% | $190,310 |
| 15% | $17,210 | 45% | $94,130 | 75% | $193,920 |
| 16% | $19,040 | 46% | $96,820 | 76% | $197,530 |
| 17% | $20,870 | 47% | $99,510 | 77% | $201,140 |
| 18% | $22,700 | 48% | $102,200 | 78% | $204,750 |
| 19% | $24,530 | 49% | $104,890 | 79% | $208,360 |
| 20% | $26,880 | 50% | $107,990 | 80% | $215,060 |
| 21% | $29,570 | 51% | $111,120 | 81% | $222,220 |
| 22% | $32,260 | 52% | $114,250 | 82% | $229,380 |
| 23% | $34,950 | 53% | $117,380 | 83% | $236,540 |
| 24% | $37,640 | 54% | $120,510 | 84% | $243,700 |
| 25% | $40,330 | 55% | $123,640 | 85% | $250,860 |
| 26% | $43,020 | 56% | $126,770 | 86% | $258,020 |
| 27% | $45,710 | 57% | $129,900 | 87% | $265,180 |
| 28% | $48,400 | 58% | $133,030 | 88% | $272,340 |
| 29% | $51,090 | 59% | $136,160 | 89% | $279,500 |
| 30% | $53,780 | 60% | $139,770 | 90% | $293,920 |
| 31% | $56,470 | 61% | $143,380 | 91% | $308,270 |
| 32% | $59,160 | 62% | $146,990 | 92% | $322,620 |
| 33% | $61,850 | 63% | $150,600 | 93% | $336,970 |
| 34% | $64,540 | 64% | $154,210 | 94% | $351,320 |
| 35% | $67,230 | 65% | $157,820 | 95% | $365,670 |
| 36% | $69,920 | 66% | $161,430 | 96% | $380,020 |
| 37% | $72,610 | 67% | $165,040 | 97% | $394,370 |
| 38% | $75,300 | 68% | $168,650 | 98% | $408,720 |
| 39% | $77,990 | 69% | $172,260 | 99% | $423,070 |
| 40% | $80,680 | 70% | $175,870 | 100% | $451,650 |
Source: TAC indexation of benefits schedule, current 1 July 2026.
Common law damages: what a serious injury claim can add
Common law damages are a separate, larger lump sum available when someone else caused, or partly caused, your accident, and your injury is considered serious. They sit on top of the no-fault benefits and the impairment lump sum, not instead of them.
There are two ways in. An impairment of 30% WPI or more counts as a serious injury automatically. Below that, the TAC can grant a Serious Injury Certificate under what's known as the narrative test: a serious long-term impairment or loss of a body function, a serious disfigurement, a severe long-term mental or behavioural disturbance, or the loss of a foetus.
Two separate heads of damage can be claimed. Pain and suffering compensates the pain, distress and loss of enjoyment of life your injury has caused, and is assessed by comparing your case against "the most extreme case" the courts recognise. Pecuniary loss compensates past and future economic loss, essentially your lost earnings. Each has its own cap.
| Common law claim | Amount (from 1 July 2026) |
|---|---|
| Minimum threshold to claim | $70,130 |
| Maximum pain and suffering | $701,620 |
| Maximum pecuniary loss (past and/or future earnings) | $1,578,760 |
Source: TAC common law compensation, indexed 1 July 2026.
Where your claim lands within these ranges depends on the severity of your impairment, your age, your earnings before the accident, and how your injury compares against the most serious cases the courts have seen. Because these claims depend heavily on medical evidence and legal thresholds, many people seek advice before deciding whether to accept an assessment or settlement.
What does a real TAC payout look like?
Here's what these figures have actually meant for people in real cases.
In Duman v Kaini [2020] VCC 896, a 53-year-old was injured in a transport accident and developed a major depressive disorder and a chronic pain disorder, requiring TMS and electroconvulsive treatment, with ongoing difficulties with memory, concentration, motivation and sleep. The court awarded $300,000, a reminder that psychological injuries from a transport accident are taken just as seriously as physical ones.
In Cassidy v Metro Trains Melbourne [2023] VCC 1866, a passenger disembarked from a moving train and fell heavily onto the platform, suffering a neck fracture, a right shoulder injury and a psychiatric injury. The court awarded $225,000, reduced by 10% for contributory negligence. This case shows two things worth knowing: an incident on public transport counts as a transport accident, and a payout is still possible even where the injured person is found partly responsible.
In Hart v Frost-Cornwall [2025] VSC 330, a backseat passenger in a car accident suffered a broken eye socket, cheekbone, jaw, nose, wrist and knee, along with a psychiatric injury, requiring multiple knee surgeries and ending his intended career as a roof tiler. The court awarded $400,000. As a passenger with no pre-existing psychiatric injury, this case illustrates how a serious orthopaedic injury with lasting career impact is reflected in the award.
These are real, court-decided outcomes, not a prediction of what any future claim will receive. Every case is assessed on its own facts.
What would it cost to find out where you stand?
Nothing, unless we win. We act on a No Win No Fee basis, so a conversation about your claim costs you nothing, and you won't pay any legal fees unless we successfully secure compensation for you.
FAQs
What is the average TAC payout?
The TAC doesn't publish a single average, and quoting one would be misleading. Payouts genuinely range from under $10,000 for a minor impairment to over $700,000 for a serious common law claim. The honest answer is that it depends on your impairment percentage and whether a common law claim is open to you. A free claim check can tell you roughly where your situation sits. A free claim check can tell you roughly where your situation sits.
Do you pay tax on a TAC payout?
Generally, no. Lump sum compensation, including the impairment benefit and common law damages, is not treated as taxable income. Weekly income support payments, however, are generally taxable. This is general information only; we'd recommend confirming your specific position with a financial adviser or accountant.
What loss of earnings does the TAC pay?
The TAC pays a percentage of your pre-accident earnings, up to a maximum of $1,730 per week, for up to the first 18 months after your accident. If your capacity for work is still reduced after 18 months, loss of earning capacity benefits may continue, up to a maximum of $1,500 per week. A free claim check can confirm what you're entitled to based on your situation.
How much is a TAC payout for the death of a family member?
The TAC provides a dependency lump sum of $237,240, along with weekly benefits for dependent partners and children and funeral expenses up to $19,940. If you've lost a family member in a transport accident, we can talk you through what support is available and how to access it.
How long does a TAC payout take?
Impairment benefits are usually assessed once your injuries have stabilised, often 12 to 18 months after the accident, while common law claims typically take longer to resolve. Every claim moves at its own pace depending on your recovery and the complexity of your case; get in touch and we can give you a realistic timeframe once we understand your situation.
Can I get a payout if the accident was my fault?
Yes. No-fault benefits and the impairment lump sum don't depend on who caused the accident. Common law damages require someone else to have been at least partly at fault, but as the Cassidy case above shows, a payout is still possible even where you're found partly responsible, something our car accident lawyers Melbourne team can talk you through in more detail.
Will the TAC's first offer be its best offer?
Not necessarily. The gap between what's initially offered and what you may actually be entitled to often comes down to your impairment assessment and whether a common law claim is available to you, something the TAC won't necessarily flag for you. Because we work on a No Win No Fee basis, a free claim check costs nothing and can tell you whether there's more on the table.
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