Last reviewed August 2026
If you or a family member has suffered a catastrophic injury in a Victorian transport accident, support and compensation may be available through the TAC scheme.
A catastrophic injury can create immediate and long-term needs, including medical treatment, rehabilitation, personal care, equipment and changes to the home. This guide explains what the term means in the TAC context and how these needs may be addressed through a claim.
Depending on the circumstances, a TAC claim may involve no-fault benefits which can include income support, medical and like expenses or a lump sum impairment benefit and common law damages. Each pathway has different requirements, and the way they interact needs to be considered carefully.
What counts as a catastrophic injury in Victoria
“Catastrophic injury” is not a phrase written into the Transport Accident Act 1986. It is a description used in medicine and in legal practice for injuries at the most severe end of the spectrum, ones that permanently change how someone lives, works and is cared for. When people ask about catastrophic injury compensation, they are usually asking about two different things at once: what their injury will cost them for the rest of their life, and what a claim can actually recover.
Injuries commonly described as catastrophic include spinal cord injury resulting in paraplegia or quadriplegia, severe traumatic brain injury, multiple or major limb amputation, severe burns, and permanent loss of sight or hearing where the impact on daily function is extensive. What connects them is not a label. It is the scale of ongoing medical treatment, equipment, home modification and personal care they demand, often for the person’s whole life.
How compensation works after a catastrophic transport accident
TAC operates a no-fault scheme. That means eligibility for statutory benefits does not depend on who caused the accident, and it does not depend on whether the injured person was a driver, passenger, cyclist or pedestrian at the time. Catastrophic injury compensation through TAC starts with these no-fault entitlements: reasonable costs of medical and hospital treatment, rehabilitation, income support, and attendant care and support services, which for a catastrophic injury can mean funded, ongoing care rather than a short-term arrangement.
Two pathways for lump sum compensation can apply, and both matter for a catastrophic injury:
An impairment benefit. Where a permanent impairment is assessed at 11% or more, a statutory lump sum may be payable regardless of fault. This does not require proving negligence.
A common law claim. Where another party’s negligence caused or contributed to the accident, a further claim for damages may be brought if permanent impairment is assessed at 30% or more, or if a Serious Injury Certificate or permission from the County Court is obtained. Common law compensation may cover pain and suffering and past or future loss of earnings. A settlement can affect some other TAC entitlements or involve offsets or repayments; medical and like expenses generally continue.
The serious injury threshold and common law damages
To bring a common law claim, the injury must meet the serious injury requirements. This may involve a serious long-term impairment or loss of a body function, long-term serious disfigurement, or a severe long-term mental or behavioural disturbance. A person assessed at 30% impairment or more can proceed through the impairment pathway. A person below 30% may apply to TAC for a Serious Injury Certificate. If TAC does not grant a certificate, an application may be made to the County Court. The correct pathway depends on the medical evidence and the circumstances of the claim.
A catastrophic injury may appear severe, but the legal threshold still has to be established on the evidence. That evidence can include specialist medical reports, occupational therapy and care assessments, and information showing the injury’s financial and practical effects. A catastrophic injury lawyer’s role is to identify what evidence is needed and make sure it is gathered properly rather than reconstructed later.
Time limits
Common law proceedings generally must be commenced within six years of the injury, or within six years after a person who was a minor at the time turns 18. Extensions and TAC protocol arrangements may be available in some circumstances, but they should not be assumed. Getting advice from catastrophic injury lawyers early protects a family’s options and avoids relying on an exception after a deadline has passed.
Who can act if the injured person cannot manage their own claim
Some catastrophic injuries, particularly severe traumatic brain injuries, affect a person’s capacity to instruct a lawyer or manage their own affairs. Depending on the decisions that need to be made, a family member or another suitable person may need to apply to the Victorian Civil and Administrative Tribunal under the Guardianship and Administration Act 2019 to be appointed as a guardian or administrator. A separate litigation guardian may be required for court proceedings. Catastrophic injury lawyers can confirm who has authority to give instructions, whether any additional appointment is needed and whether approval is required before a settlement can be finalised.
How future care costs and home modifications are worked out
There is no set formula. Future care and home modification needs are assessed from medical and allied health evidence: what care the injured person needs, how much of it, for how long, and what changes to their home, vehicle and equipment will support their independence. An occupational therapist’s assessment is often central, supported by treating specialists. Under TAC’s no-fault benefits, reasonable treatment and support costs are assessed as needs arise. A common law claim is assessed separately and may provide damages for pain and suffering and past or future loss of earnings.
What happens if the injury happened at work instead of on the road
This article deals with TAC transport accident claims. A catastrophic injury suffered at work is generally dealt with under the separate WorkCover scheme, which has different forms, tests and time limits. Early advice can help ensure a claim is directed to the correct scheme.
What to watch out for
Accepting an early settlement before the full extent of the injury is known. The effects of a catastrophic injury can become clearer as treatment and rehabilitation progress. Resolving a claim before the specialist and allied health evidence is complete may leave important consequences out of the assessment.
Assuming fault rules out every pathway. TAC statutory benefits operate on a no-fault basis. A common law claim may also be available where another party’s negligence caused or contributed to the accident. The facts still need to be assessed against the requirements of each pathway.
Treating capacity and legal authority as settled by default. A family member managing affairs informally may not have the legal authority needed to instruct a lawyer or make decisions about a settlement. Confirming the correct authority early avoids uncertainty later.
Underestimating what a home actually needs. A ramp or a grab rail is often not enough for a catastrophic injury. Proper occupational therapy assessment, done early, protects the claim’s accuracy later.
Where to start
Nobody plans for a catastrophic injury, and there is no version of this that feels manageable in the first weeks. What helps is knowing which pathway applies, what evidence protects the claim, and who is allowed to make decisions on the injured person’s behalf. That is the job of a lawyer who will sit with the detail of one family’s situation for as long as it takes to get it right.
Have questions about a catastrophic injury claim? Call our team. The first conversation is free. Call 1300 FEARLESS (1300 332 753).
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Frequently asked questions
What qualifies as a ‘catastrophic injury’ under Victorian law? There is no separate legal definition. Victorian law asks whether an injury meets the applicable serious injury threshold. Injuries such as spinal cord damage, severe brain injury or multiple limb loss may meet that threshold and require lifelong support, but the legal test and supporting evidence still have to be established.
Can you receive a lump-sum payout in addition to lifetime care support? Often, yes. TAC’s no-fault benefits can fund ongoing treatment and care as needs are assessed, separately from a statutory impairment benefit lump sum. A common law claim may also be available where negligence and the serious injury requirements are established. Because a common law settlement can affect other entitlements or involve offsets or repayments, the interaction must be assessed in the individual claim.
Who can act as a legal guardian or representative if the injured person lacks capacity? A family member or other suitable person may apply to VCAT under the Guardianship and Administration Act 2019 to be appointed as a guardian or administrator, depending on the decisions involved. A separate litigation guardian may be required for a court case. A lawyer can confirm which appointment and approvals are needed in the particular matter.
How are future care costs and home modifications assessed in a catastrophic claim? From evidence, not an industry average. Occupational therapy and treating specialist assessments can identify the care, equipment and home changes required. Under TAC’s no-fault benefits, reasonable treatment and support costs are assessed as needs arise. Common law damages are assessed separately.
What happens if a catastrophic injury occurs at work versus on the road? A road accident is assessed under TAC, and a workplace injury under WorkCover. The schemes have different forms, tests and time limits, so it matters which one applies from the start.
Is there a reliable average payout for catastrophic injury compensation? No. There is no reliable average, and any single figure circulating online can be misleading, because catastrophic injury claims are assessed on the specific evidence of one person’s needs, care costs and life expectancy, not against a benchmark. Anyone quoting a typical figure before reviewing that evidence is guessing.
Amy Caldow is a Principal Lawyer at National Compensation Lawyers and leads the firm’s TAC practice. She acts for transport accident clients across Melbourne and regional Victoria. Call 1300 FEARLESS (1300 332 753) or visit nationalcompensationlawyers.com.au for direct access to the lawyer handling your claim.