If you’re considering a compensation claim, this can often be an uncertain time. To help give you a bit of clarity, we’ve outlined the main factors involved in calculating how much you will receive for your claim. For more detailed information relating to your particular circumstances, please feel free to get in touch with one of our lawyers.
How is my compensation claim calculated?
Injury or sickness can have a huge impact on your wellbeing, income and family. Once your injury is stable, our lawyers work with you to calculate what you’re entitled to based on how the injury and the consequences have impacted on your life and your income.
You could be eligible to seek compensation for:
- Negative impacts on wellbeing caused by pain, suffering, or reduced abilities
- Income loss, both in the past AND for the future
- Costs of medical services and rehabilitation, pharmaceuticals, treatment, etc., past and in the future
- Assistance from other people during your recovery
- Refunds you will have to pay to Medicare, Centrelink, hospitals, WorkCover, etc.
These factors can cover the past, present and possible future impact of your injury to make sure you are fairly compensated. Since there are so many factors and so much information contributing to the result of your claim, the amount will differ from person to person, as everyone’s personal circumstances are extremely relevant in determining the extent of compensation is able to be recovered. That means sometimes we might not know how much your claim is worth until later in the process. We will, however, be able to determine the likelihood of success in pursuing your claim.
Do I have to declare my compensation as income and pay tax on it?
If your claim settles outside of court, you won’t have to pay any tax on your compensation at all. The only time you will have to pay tax is if you invest the settlement proceeds and earn interest. In this case, you will only have to pay tax on the interest earned.
What do I need to pay out of my compensation?
If your claim is successful, there are certain repayments you’ll need to make from your compensation. Firstly, it is compulsory to refund money to government departments or organisations that have been used such as:
- Centrelink (if you have received any benefits since the accident)
- Public and private hospitals (if you have been treated by one for your injuries)
- Private health insurance (if you have it and it has paid for some of your medical treatment)
- Medicare (if they have paid for any of your medical treatment)
- Child Support Agency (if you are a paying parent and have a Child Support debt owing)
- Emergency services (if they were involved in transporting you)
Next, legal fees as well as outlays such as barrister fees, and medical reports that your lawyer has paid on your behalf will be taken out of your compensation. This will always be clearly outlined in your client agreement, and you can discuss these with your lawyer at the start to get a clear picture of what to expect. Before you consider accepting any settlement, your lawyer must by law in Queensland provide you with very clear advice as to all of the payments which you will need to deduct from any settlement, so you have a clear picture of what you will receive.
How do Gouldson fees work?
The first part is simple. We will investigate whether we think you have a claim or not free of charge. If you do not have a claim, you won’t be charged.
If we’ve determined that you do have a claim, we will only charge you once your claim is successful (No Win – No Fee). While it’s impossible to precisely predict your costs at the outset, you’ll be provided with full details of professional costs and outlays at any time a settlement offer is received. We have structured our client agreement so that we limit our professional fees to a maximum 30% of your recovered damages. If we don’t win your case, you won’t be charged any fees.
Want to find out if you have a compensation case? Whether something has happened at work, on the road or in a public place, you can request a free case review with a lawyer here.