The Motor Accident Injuries Act 2017 replaced the old fault-based CTP scheme on 1 December 2017. It was the biggest change to NSW CTP insurance in nearly two decades. These NSW CTP scheme changes altered how every motorist and accident victim deals with the system.
The NSW Government promised lower green slip premiums, faster statutory benefits for injured people, and stronger provisions against fraudulent and exaggerated claims. Eight years on, has the new scheme delivered?
What the Old CTP Scheme Got Wrong
Under the Motor Accidents Compensation Act 1999, the NSW CTP scheme ran on pure common law. Accident victims had to prove fault before they saw a dollar. That meant court proceedings were pending for years while injured persons went without weekly payments or treatment.
Green slips hit an average of $935 (including levies and GST) before reform. The NSW Government pointed to insurer super profits and rising legal expenses as key drivers and pushed for new legislation that would lower green slip premiums while still supporting people injured in a motor accident.
At fault drivers got nothing under the old scheme. No weekly income payments, no treatment expenses, no benefits of any kind. The CTP green slip scheme gave you zero protection if you caused the accident.
The Key Changes Under the Motor Accident Injuries Act 2017
Three areas changed the most.
No-Fault Statutory Benefits for Everyone
Under the new system, all people injured in a motor vehicle accident now receive statutory benefits regardless of fault. Weekly statutory benefits cover lost income and can be back‑dated to the accident date if you lodge within 28 days.
Treatment and care expenses are covered from the time the insurer accepts your statutory benefits claim, with eligible expenses back‑paid to the accident date on the same 28‑day rule.
Originally, at-fault claimants and those with minor injuries received benefits for just 26 weeks. The 2022 amendments (effective April 2023) extended this to 52 weeks for all claimants, regardless of fault or injury type. One trade-off: gratuitous care (unpaid care from family members) is no longer covered under either the statutory benefits claim process or damages claims.
Restricted Common Law Damages Claims
Common law claim access still exists under the current scheme, but it is narrower. You need greater than 10% whole person impairment to access lump sum compensation for non-economic loss. Soft tissue injuries and psychiatric injuries that are not a recognised psychiatric illness are classified as threshold injuries (previously called minor injuries). These are excluded from damages claims entirely.
Physical and psychiatric whole person impairment cannot be combined to reach the 10% threshold. Each category must independently exceed it. Contributory negligence also affects what claimants receive.
After 52 weeks, weekly income payments are reduced for injured persons who were partially (but less than 61%) responsible for the accident. Those above 61% contributory negligence lose statutory benefits after 52 weeks.
Tackling Claims Fraud
The Injuries Act 2017 brought in stronger provisions against claims fraud. Insurers now have broader investigation powers, and there are penalties for false or misleading claim submissions. Merit reviewer and internal review processes were also introduced so claimants could dispute insurer decisions without going straight to court.
The deadline to lodge a claim is now three months from the accident date (down from six months). Miss the 28-day mark, and you lose back-pay for weekly payments before that date. The overall time limit to lodge a claim is three years from the accident date.
How the NSW CTP Scheme Has Been Refined Since 2017
The 2017 Act was not the last word. The scheme has kept changing through new institutions and legislative amendments.
The Personal Injury Commission (2021)
In March 2021, the Personal Injury Commission opened as a single specialist tribunal for resolving disputes across both motor accident and workers compensation claims in NSW. It replaced SIRA‘s Dispute Resolution Service and the Workers Compensation Commission. Disputes over whole person impairment assessment, statutory benefits, and damages claims now go through the PIC, with decisions made by a medical assessor or merit reviewer.
The 2022 Amendments (Effective April 2023)
After the State Insurance Regulatory Authority reviewed scheme performance, several significant changes were made to the current scheme. Minor injury was relabelled as threshold injuries. The statutory benefits claim period went from 26 to 52 weeks for at-fault and threshold injury claimants. The insurer’s second liability notice was pushed from 3 to 9 months. The 20-month waiting period to lodge a damages claim was scrapped, and the two-year moratorium on settling common law claims was removed. The requirement for internal review before disputing whole person impairment at the Personal Injury Commission was also dropped.
The 2026 Scorecard: Better or Worse?
With close to a decade of data behind us, we can now measure what the reforms delivered and where they fell short.
What’s Better for Injured Road Users
Green slip premiums dropped after the reforms. The average premium fell from $935 (including levies and GST) pre-reform to around $541 in 2022. Everyone now gets benefits provided from the start. People injured in a motor accident receive treatment expenses and medical assessment from day one.
The Nominal Defendant still covers injured road users hit by uninsured or unidentified motor vehicle owners. Weekly payments act as a safety net for lost income even if you caused the accident.
The State Insurance Regulatory Authority has clawed back $542.9 million in excess insurer profits over four years. Less room for fraudulent and exaggerated claims means honest claimants are not subsidising claims fraud through higher green slip premiums.
What’s Worse for Accident Victims
Injured people with serious injuries assessed below 10% whole person impairment lose access to lump sum compensation. For some accident victims, that is a big loss when the injury resulting from the motor accident has a real long-term effect on their life.
Soft tissue injuries and psychiatric injuries classified as threshold injuries are locked out of common law. The Law Society of NSW has raised concerns about how this affects access to justice for injured persons.
The rule blocking combination of physical and psychiatric permanent impairment assessment to reach the 10% threshold has drawn criticism from personal injury lawyers. A medical assessor may find real impairment on both fronts, but the injured person still cannot claim non-economic loss.
Workers compensation interactions are still messy for people injured in a motor vehicle while working. Gratuitous care from family is no longer compensable. Premiums have also been climbing since 2022, reaching roughly $608 by 2025, pushed up by extended benefits, rising medical treatment cost, and levy increases.
What This Means for Your CTP Green Slip in 2026
Your CTP green slip funds both the statutory benefits scheme and the broader CTP green slip scheme. The State Insurance Regulatory Authority keeps adjusting the NSW CTP scheme through Fund Levy changes and insurer pricing approvals.
If you are injured in a motor vehicle accident today, your coverage depends on fault, injury severity, and whole person impairment. Benefits start once you lodge a claim, but long-term lump sum compensation requires meeting the WPI threshold.
For a step-by-step guide, see our complete guide to CTP claims in NSW.
People Also Ask
These are the questions we hear most about the reformed NSW CTP scheme.
1. What are statutory benefits under the NSW CTP scheme?
Weekly income payments, treatment and care expenses, and domestic support. These benefits are available to all people injured in a motor accident regardless of fault for at least 52 weeks.
2. Can I still make a common law claim after the 2017 reforms?
Yes, but only if your whole person impairment exceeds 10% and your injury is not classified as a threshold injury. A medical assessor must conduct a formal permanent impairment assessment before you can pursue a common law claim for damages.
3. How long do statutory benefits last?
52 weeks for all claimants (including at-fault and threshold injuries). Up to 104 weeks for not-at-fault, non-threshold claimants without a pending damages claim. Up to 156 weeks with a pending damages claim and permanent impairment of 10% or less. Up to 260 weeks with a pending damages claim and permanent impairment greater than 10%.
These timeframes are general maximums and depend on factors like ongoing incapacity, fault, injury classification, and whether you have an active damages claim, so individual entitlements can vary.
4. What is the Personal Injury Commission?
A specialist tribunal that opened in March 2021 to resolve disputes for both motor accident and workers compensation claims in NSW. It replaced SIRA’s Dispute Resolution Service and the Workers Compensation Commission. Injured persons can lodge disputes about their claim, assessment, or benefits through the PIC.
5. Did the reforms reduce green slip premiums?
Yes, at first. Premiums fell from an average of $935 pre-reform to $541 in 2022. But they have since climbed to roughly $608 by 2025, with further increases expected in 2026. The cost of green slips is now driven by extended benefits paid under the 2022 amendments, rising medical treatment expenses, and higher Fund Levy amounts set by the State Insurance Regulatory Authority.
