If you are injured in a car accident in Western Australia and another driver caused the accident, you may be able to claim compensation for wages or income you have lost because of your injuries.
This can apply whether you were driving your own vehicle, a passenger, a pedestrian, a cyclist, an Uber or rideshare driver, or a passenger in an Uber or other rideshare vehicle.
Lost earnings are an important part of a motor vehicle injury claims in Western Australia. The Insurance Commission of Western Australia (ICWA) and the WA courts regularly assess claims for past and future loss of earnings.
The important issue is not simply whether your income went down. You generally need to show that the accident caused an injury and that the injury affected your ability to work and earn income, and it was your injuries that caused your income to go down.
What do I need to prove to claim lost wages?
Generally, you will need evidence showing:
- you were employed or earning income at the time of the accident
- what you were earning before the accident
- that you suffered injuries in the accident
- that those injuries caused you to stop work or reduce your hours or change your duties
- that you suffered an actual loss of income
Useful documents may include:
- payslips
- employment contracts
- payroll records
- tax returns
- ATO records
- earnings histories from your employer
- GP medical certificates
- medical reports
- correspondence from your employer about your absence or reduced duties
Good records can make a significant difference when calculating and proving a loss of earnings claim.
What if I caused the accident?
Generally, if you were the driver who caused the accident, you cannot claim lost earnings under the usual third-party motor vehicle injury scheme.
A compensation claim generally depends on establishing that another driver was at fault. Every accident is different, however, and questions about responsibility can sometimes be more complicated than they first appear. Definitely chat to a lawyer if you need advice.
Can a passenger claim lost wages?
Generally, yes. If you were a passenger and the driver of the vehicle you were travelling in caused the accident, you may still be able to claim compensation, including lost earnings.
However, there may be circumstances where your compensation is reduced. For example, issues may arise if you:
- knowingly travelled with an intoxicated driver
- knew that the driver was likely to drive recklessly
- failed to wear your seatbelt
- knowingly travelled in an unsafe or unroadworthy vehicle
These circumstances may raise issues of contributory negligence.
Can contributory negligence reduce my lost wages claim?
Yes. You may have a valid compensation claim but still have the amount reduced if your own actions contributed to the accident or to the seriousness of your injuries.
Examples may include:
- not wearing a seatbelt
- knowingly driving an unroadworthy vehicle
- driving in a way that contributed to the accident
- travelling with a driver who you knew was intoxicated
The effect of contributory negligence depends on the circumstances of the individual case.
What if I am self-employed?
Lost-income claims can be more complicated for self-employed people. Many people in Western Australia work as sole traders, work under an ABN, work through their own company or trust, in partnerships with a spouse or another person, or as contractors or FIFO workers.
In these cases a payslip may not tell the full story of your lost income. You will need to prove:
- your ownership or interest in the business
- your role in the business
- that you were actively working in the business before the accident
- what the business earned before the accident
- how your injury affected your ability to work
- whether the business income fell because of your reduced capacity
Useful documents can include:
- ASIC records
- ABN records
- financial statements
- company or business tax returns
- personal tax returns
- BAS records
- accountant records
- documents explaining your role in the business
A drop in business income does not automatically prove a personal loss. You generally need to show a connection between your injuries, your reduced capacity to work and the financial loss suffered by the business.
What if my business continued earning money while I was injured?
This can make the calculation more complicated. If your business continued operating and earning roughly the same income despite your absence, the insurer may argue that there was no actual financial loss.
However, business structures can sometimes disguise the real economic effect of an injury. For example, income may be split between family members or distributed through a company or partnership even though one person performs most of the income-producing work.
The correct approach may therefore require looking beyond a person’s individual tax return and examining how the business actually operates.
Can an Uber driver claim lost income?
Potentially, yes. An Uber or rideshare driver who cannot work because of injuries from a car accident may be able to claim lost income.
Useful evidence may include:
- at least six months of Uber or rideshare earnings statements before the accident
- earnings statements after the accident
- tax returns
- records showing when you stopped driving
- medical evidence confirming why you could not drive
It is also important to distinguish gross income versus net income. Driving involves expenses such as fuel, insurance, vehicle hire or finance, servicing, tyres, repairs and maintenance. These expenses may need to be taken into account when determining the driver’s actual net income.
What if I was about to start a higher-paying job?
This is an important issue, particularly in Western Australia. At Lian Hall Injury Law, we regularly see situations where a person was:
- studying while working temporarily as an Uber driver
- working in Perth while preparing to move into FIFO work
- applying for a higher-paying position
- transferring to another role
- planning to return to work after caring for children
In these cases, pre-accident payslips may not accurately reflect what the person would have earned in the future.
It may still be possible to claim that future loss, but evidence becomes critical. You may need to show:
- what job you intended to do
- when you expected to start
- that you had a realistic prospect of obtaining the position
- what the position would have paid
- that your accident injuries now prevent you from doing that work
Evidence may include:
- qualifications
- course enrolments
- licences or tickets
- job applications
- emails with prospective employers
- interviews
- your CV or résumé
- genuine job offers
- pre-employment medical requirements
- medical evidence showing why your injuries now prevent you doing the proposed work
Simply saying that you planned to move into a higher-paying job is unlikely to be enough. The stronger the evidence of your intention and ability to pursue that career, the stronger the claim is likely to be.
Can I claim lost FIFO earnings if I had not started FIFO work yet?
Potentially, but these claims require evidence.
The decision in Hodges v Hicks [2025] WASCA 190 involved a claimant who argued that, but for her accident, she would have moved from a metropolitan job into higher-paid FIFO work.
The Court considered whether she had both the capacity to perform the proposed FIFO role and a genuine intention to pursue that type of employment.
The claim was unsuccessful because the Court was not satisfied that the evidence established the necessary physical restriction or a sufficiently real intention to move into FIFO work.
The practical lesson is important. If you claim that you would have moved into FIFO or another higher-paying occupation, you should try to preserve evidence showing:
- the steps you had already taken
- your qualifications
- job applications
- interviews
- medical suitability before the accident
- why your injuries now prevent you doing that work
The court will generally want evidence, not simply an assertion about what might have happened.
How long can I claim lost wages for?
Generally, a claim may run from the time your injury affects your ability to work until you regain the capacity to return to your previous employment or suitable alternative work.
For some people this may involve only a short period away from work. For people with serious or permanent injuries, the calculation may extend much further into the future.
Medical evidence is usually important. A claimant generally needs to show that the inability to work is caused by injuries from the accident, rather than by an unrelated reason. GP certificates, specialist reports and other medical evidence may be required.
Can I still claim lost income if I resign after the accident?
Possibly. Resigning or losing your job after an accident does not necessarily prevent a claim for lost earnings. The important question is why the employment ended.
In Wainwright v Barrick Gold of Australia [2014] WASCA 15, the claimant continued working after her accident but later experienced difficulty coping with her duties.
The case illustrates that a later employment loss may still be relevant if there is sufficient evidence connecting it to injuries caused by the accident.
However, if you resign for reasons unrelated to your accident injuries, it may be difficult to include that period of lost income in your compensation claim. The evidence connecting the injury and the employment loss is therefore critical.
What if I receive income protection or other financial support?
Receiving another form of financial support does not necessarily mean that you cannot claim lost earnings.
Some people may have income protection insurance, TPD cover through superannuation, other insurance benefits, or financial support from family, friends or community organisations.
The treatment of these payments depends on their nature.
In Zheng v Cai [2009] HCA 52, the claimant received financial support from her church. The insurer argued that if the Church was supporting her financially, that her losses should be reduced. The Court said that any support payments made by the Church should not benefit the insurance company, and so her lost earnings was considered separately from any payments she received from other sources outside of work.
If you are receiving insurance or other support payments, it is worth obtaining advice about how they interact with your motor vehicle injury claim.
When does ICWA pay lost wages?
In a motor vehicle accident compensation claim, lost wages are generally included in the calculation of the lump-sum settlement.
This is different from workers compensation. Under workers compensation, an accepted claim may involve regular payments while a worker remains unable to work. In a motor vehicle injury claim, lost earnings are generally calculated and paid as part of the eventual settlement.
In some circumstances, ICWA may consider an advance payment before final settlement, particularly where liability has been accepted and there is a clear loss of income. Whether this is available depends on the circumstances.
Case study: income earned through a family partnership
In Husher v Husher [1999] 197 CLR 138, a husband and wife operated a bricklaying business. The business income was split between them, but the husband’s physical work generated the business income.
After he was injured and unable to work, an issue arose about whether his loss should be calculated using only the income personally distributed to him, or, the economic value of the work he performed for the business.
The case highlights an important distinction between someone’s taxable income and their earning capacity. For business owners and people working in family partnerships, the financial structure shown on a tax return may not always tell the whole story.
Case study: self-employed professional income
In Avery v Player [2021] WADC 69, a Perth physiotherapist claimed loss of earnings following injuries suffered in a car accident.
Assessing the loss involved detailed consideration of the financial records of the practice. The Court considered matters including historical business income, expenses, taxation, the number of days worked, and the claimant’s expected future working capacity.
The case demonstrates why loss-of-income calculations for business owners can become considerably more complicated than simply comparing two tax returns. Accountants can play an important role, but ultimately the supporting assumptions and evidence must withstand scrutiny.
Why consistency in your medical evidence matters
Lost-income claims depend heavily on proving how an injury affects your capacity to work.
In the case of Finn v Gerritsen [2025] WADC 93, the driver claimed compensation for psychological and other injuries following a car accident.
The case highlights the importance of consistency between what you report to your doctors, GP records, specialist histories, your activities and other evidence about the effect of the injury.
If the medical history is inconsistent with other evidence, this can affect the weight given to medical opinions and ultimately the assessment of the claim. The practical point is simple: provide your doctors with an accurate and consistent history and do not exaggerate your symptoms.
What else can form part of a lost-earnings claim?
Lost wages are not always limited to the amount missing from your payslip. Depending on the circumstances, the calculation may also involve issues such as:
- lost superannuation
- future loss of earning capacity
- secondary employment
- second or third jobs
- interest on past losses
- contingencies affecting future earnings
The calculation depends on the person’s employment history, injuries and future work prospects.
Time limits can apply
Motor vehicle injury claims are subject to legal time limits.
The Limitation Act 2005 (WA) and other relevant requirements may affect how long you have to commence or pursue a claim. If you are unsure about a time limit, it is better to obtain advice early rather than assume that you still have time.
How much can lost wages add to a car accident claim?
For some claimants, lost earnings may represent a relatively small part of their compensation. For others, particularly people who cannot return to their previous occupation, have a long period away from work, are self-employed, lose a FIFO or higher-paying career, or suffer permanent restrictions, the loss of earning capacity can represent a substantial part of the overall claim.
The correct calculation depends on the evidence.
Speak to a Perth motor vehicle injury lawyer
If a car accident in Western Australia has affected your ability to work, it is worth getting advice about what evidence you should preserve and how your loss may be calculated.
At Lian Hall Injury Law, we assist clients with motor vehicle injury claims across Perth and Western Australia, including claims involving lost wages, self-employment, FIFO work and future earning capacity.
Contact Lian Hall Injury Law to discuss your motor vehicle injury claim.
