Threshold vs Non-Threshold Injury in NSW
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Principal Lawyer and Director · Last updated 16 October 2026
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Key Takeaway: In NSW, a threshold injury (soft tissue injuries and minor psychological reactions etc) caps statutory benefits (wages and medical expenses) at 52 weeks under the Motor Accident Injuries Act 2017. A non-threshold injury (a fracture, tear, nerve damage or PTSD etc) can extend those same statutory benefits and unlock a lump sum, including up to $712,000 for pain and suffering.
Threshold vs Non-Threshold Injury: Quick Answers
One label on one insurer letter decides whether you get a lump sum or nothing. Withstand Lawyers is a top-rated NSW car accident law firm, rated 4.9 stars on Google with over 265 verified reviews, and our NSW motor vehicle accident lawyers act on a no win, no fee basis. Call 1800 952 898 for a free claim check.
What is a threshold injury under the NSW CTP scheme?
A threshold injury is one of two injury types defined in section 1.6 of the Motor Accident Injuries Act 2017. It was called a “minor injury” until the law was renamed. It turns on your diagnosis, not your pain level.
- Soft tissue injury: injury to muscles, tendons, ligaments, menisci, cartilage, fascia, fat or blood vessels. Whiplash, sprains and strains are typical.
- Threshold psychological injury: a reaction that is not a recognised psychiatric illness, plus adjustment disorder and acute stress disorder.
Benefits last up to 52 weeks and cover weekly income, treatment, and domestic and personal care, per SIRA. There is no lump sum.
What is a non-threshold injury?
A non-threshold injury is any injury outside the threshold definition. Section 1.6(2) of the Act carves out:
- •fractures and broken bones
- •nerve damage, including radiculopathy (pain, numbness or weakness down an arm or leg from a compressed nerve root in the neck or back)
- •any complete or partial tear of a tendon, ligament, meniscus or cartilage, such as a rotator cuff, ACL or meniscus tear in the shoulder or knee
- •spinal cord and brain injuries
- •recognised psychiatric illnesses such as PTSD and major depression
The partial-tear rule wins claims. A scan report saying “strain” is threshold. One saying “partial thickness tear” is not. If symptoms outlast a simple sprain, ask your GP for their opinion on getting an MRI scan.
Threshold vs non-threshold injury: what is the difference for your claim?
| What it affects | Threshold injury | Non-threshold injury |
|---|---|---|
| Weekly income support | Up to 52 weeks | Beyond 52 weeks if not mostly at fault |
| Treatment expenses | Up to 52 weeks | As long as reasonably needed |
| Lump sum (common law damages) | Not available | Available if not mostly at fault |
| Past and future lost earnings | Weekly payments only | Lump sum, at any percentage (known as whole person impairment, or WPI) |
| Pain and suffering | Not available | WPI more than 10%, capped at $712,000 (increases yearly) |
Weekly payments are 95% of pre-accident earnings for weeks 1 to 13, then 85% if partly working or 80% if not working (SIRA).
What happens if you have both a threshold and a non-threshold injury?
One non-threshold injury makes the whole claim non-threshold. SIRA confirms each crash injury is assessed separately. Whiplash plus a fractured wrist is a non-threshold claim. Report every injury to your GP and on your claim form, even minor ones.
How much compensation can you claim for a non-threshold injury in NSW CTP?
A lump sum requires two things: (1) a non-threshold injury and (2) not being mostly at fault. Lost earnings are payable at any impairment level. Pain and suffering needs whole person impairment (WPI) above 10%, capped at $712,000 as at October 2026. That cap applies to pain and suffering only, not your total payout. Check permanent impairment payouts or use our permanent impairment calculator.
| Non-threshold injury | WPI % | Payout range | Key factors |
|---|---|---|---|
| Single fracture or partial ligament tear, good recovery | Under 11% | $120,000 to $300,000 | Lost earnings only |
| Disc injury with radiculopathy, or shoulder tear | 11% or more | $400,000 to $700,000 | Age, income, type of work |
| Diagnosed PTSD or major depression | 11% or more | $400,000 to $700,000 | Treatment history, work impact |
| Multiple fractures needing surgery | 11% or more | $600,000 to $1,000,000+ | Surgeries, permanent restrictions |
| Spinal cord or brain injury | 11% or more | $2,000,000+ | Lifetime care, earning capacity |
Ranges are not guarantees. Full breakdown: NSW motor vehicle accident compensation payouts.
How do you dispute a threshold injury decision in NSW?
The CTP insurer decides, and must give written reasons in a liability notice letter within nine months of your claim being lodged (SIRA). This is separate from your WPI assessment: one asks what injury you have, the other measures its impact.
| Deadline | What happens |
|---|---|
| 3 months from accident | Lodge your Personal Injury Benefits Form |
| 6 months from accident | Lodge an Application for Common Law Damages so the insurer can decide if you are eligible for a lump sum |
| Within 9 months of lodging | Insurer issues the threshold decision |
| 28 days from the letter | Last day to request an internal review |
| 52 weeks from accident | Threshold injury benefits end |
| 3 years from accident | File an Application for General Assessment with the Personal Injury Commission, with your supporting documents, for your lump sum. Outside time? Still contact us. |
To challenge it:
- Internal review within 28 days. Send new medical evidence. A reviewer with no role in the original decision decides.
- Personal Injury Commission. An independent medical assessor examines you. Most disputes in this pathway are about threshold injury, and the findings are binding.
All deadlines: how long after a car accident you can claim.
How do you prove a non-threshold injury?
With diagnosis-level evidence, not descriptions of pain. We are lawyers, not doctors, so always follow your treating doctor’s advice. Steps to discuss with them:
- See your GP immediately and list every physical and psychological symptom.
- Consult your treating doctor about whether an MRI is right for you. It can show tears and nerve compression X-rays miss.
- Consult your treating doctor about nerve conduction testing for numbness, tingling or weakness.
- Consult your treating doctor about a referral to a psychologist or psychiatrist for nightmares, flashbacks or low mood.
- Keep every report. The insurer decides only on the evidence in front of it.
What do non-threshold injury claims settle for in NSW?
Real NSW results from our claims won page:
| Client | Injuries | Result |
|---|---|---|
| Michael, insurer said threshold | Decision overturned at the Personal Injury Commission, unable to return to work | $1,950,000 |
| Brad, 35, rear-ended | Whiplash plus shoulder tear and lumbar disc injury, 13% WPI | $400,000 plus statutory benefits |
| Jane, pedestrian | Multiple fractures, several surgeries | $370,000 |
| Mark, driver rear-ended | Fractures and a meniscus tear | $340,000 |
Brad’s whiplash alone would have been threshold. His tear and disc injury lifted the whole claim. Every claim turns on its own facts; past results are not guarantees.
Threshold and non-threshold injury FAQs
How long after a car accident can you claim for damage in NSW?
How much is a PTSD claim worth?
Can I get compensation for mental health after a car accident?
Should I accept the first settlement offer?
Is whiplash a threshold injury?
Can a threshold injury decision be changed?
How much does it cost to challenge a threshold injury decision?
Why choose Withstand Lawyers for your threshold or non-threshold injury claim?
When one label decides whether you get a lump sum or nothing, the firm you choose matters. Withstand Lawyers brings over 40 years of combined experience in car accident compensation law and focuses exclusively on personal injury, with extensive experience in CTP claims and in overturning insurer threshold decisions at the Personal Injury Commission. We are honest and open: we tell you what your claim is worth, without pressuring you to settle. Over $60 million recovered since 2014 for clients across Australia and NSW, a 99% success rate, and 4.9 stars on Google. No win, no fee. Call 1800 952 898 or start your free claim check.
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About the author
Issa Rabaya · Principal Lawyer and Director
✓ Admitted to the Supreme Court of NSW and High Court of Australia ✓ LLB ✓ IRO-approved ✓ Law Society of NSW
Acts for injured people in CTP, workers compensation, TPD and public liability claims.
4.9 ★ — 265+ Reviews
“Working with Esther has been an absolute blessing during an incredibly difficult time. Anyone who has ever had to navigate an insurance claim knows just how difficult, overwhelming, and anxiety-inducing the entire process can be. Before reaching out to Withstand Lawyers, I was constantly stressed and deeply overwhelmed by the system. The firm made the initial intake process incredibly smooth, and they placed me in the hands of my lawyer, Esther. From that moment on, from the first conversation, I finally found my solid ground.
Esther has completely transformed how I navigate this unfortunate situation. Because she handles my matter directly, I have a direct line of contact with her and never have to jump through hoops to get support. Esther’s presence alone has given me immense confidence in my claim. What sets her apart is her perfect balance of professional mastery and genuine empathy. As a client, having a lawyer who truly listens and supports you when your mind is filled with doubt is a massive relief. She doesn’t just manage a file — she consistently protects her client’s peace of mind. Her recommendations are always highly logical, realistic, and clear-cut. She cuts through the legal confusion and tells you exactly where you stand, which is exactly what you need during the hardest times of your life.
I feel incredibly lucky to have Esther and her team at Withstand Lawyers by my side. For anyone out there facing a difficult time with an insurer and looking for a legal advocate who offers absolute clarity, strength, and compassion — I cannot recommend Esther highly enough. She is a truly admirable professional who genuinely cares about the people she protects. Truly grateful!”
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Meet Your Motor Vehicle Accident Lawyers
Every motor vehicle accident claim is handled by a personal injury lawyer with dedicated motor vehicle accident experience.
Issa Rabaya
Director, Lawyer
Founder and Director with 12 years' experience since his 2014 admission, previously at the largest litigation law firm in Australia. A personal injury lawyer for serious injuries, leading Withstand Lawyers' work across every claim type, with settlements reaching into the millions, including a $6.3 million motor vehicle accident result.
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Minaa Mohmand
Special Counsel
Special Counsel with over a decade of experience since 2016, handling complex, higher-value claims: serious injuries, disputed liability and matters heading to litigation, across motor vehicle accidents, work injury damages, public liability and TPD.
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Esther Ihn
Senior Associate
Senior Associate with over a decade of experience exclusively in personal injury claims since 2014, handling hundreds of matters across motor vehicle accidents, workers compensation, work injury damages and public liability. The team's go-to for serious-injury claims.
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Mihana Wen
Associate
Associate with 6 years' experience since 2020 and a recent $1.95 million motor vehicle accident settlement, known for not taking no for an answer and lodging appeal submissions for injuries insurers try to deem below the 11% whole person impairment threshold for pain and suffering. The go-to for car accident claims, guiding clients from the first CTP submission through to settlement with a compassionate, hands-on approach.
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