austlii:nsw/NSWPICMP/2025/987
General information, not legal advice.
NSWPICMP
2025-12-15
Original judgment source is linked above.
Knight v P & L Knight Builders Pty Ltd [2025] NSWPICMP 987
WORKERS COMPENSATION - Workplace Injury Management and Workers Compensation Act 1998; appeal from decision of a Medical Assessor (MA); industrial deafness; section 323 deduction for prior self-employment; Rico Pty Ltd v Roads and Traffic Authority, A & G Engineering Pty Ltd v Civitarese, and OneSteel Ltd v Devine considered and applied; Held - industrial deafness injury deemed to have occurred in one blow; no deduction for prior industrial noise exposure; requirement to give reasons; Medical Assessor not required to comment on all material; consideration only to be had to relevant material; Ferguson v State of New South Wales considered; no error with respect to sufficiency of reasons; Medical Assessment Certificate revoked to correct error with respect to section 323 deduction; new certificate issued.
2 July 2025. 2. The appellant relies on the following grounds of appeal under s 327(3) of the Workplace Injury Management and Workers Compensation Act 1998 (the 1998 Act):
(a) the assessment was made on the basis of incorrect criteria, and
(b) the MAC contains a demonstrable error.
"323 Deduction for previous injury or pre-existing condition or abnormality
(1) In assessing the degree of permanent impairment resulting from an injury, there is to be a deduction for any proportion of the impairment that is due to any previous injury (whether or not it is an injury for which compensation has been paid or is payable under Division 4 of Part 3 of the 1987 Act) or that is due to any pre-existing condition or abnormality.
(2) If the extent of a deduction under this section (or a part of it) will be difficult or costly to determine (because, for example, of the absence of medical evidence), it is to be assumed (for the purpose of avoiding disputation) that the deduction (or the relevant part of it) is 10% of the impairment, unless this assumption is at odds with the available evidence.
(1) If an injury is a loss, or further loss, of hearing which is of such a nature as to be caused by a gradual process, the following provisions have effect -
(a) for the purposes of this Act, the injury shall be deemed to have happened -
(i) where the worker was, at the time when he or she gave notice of the injury, employed in an employment to the nature of which the injury was due - at the time when the notice was given, or
(ii) where the worker was not so employed at the time when he or she gave notice of the injury - on the last day on which the worker was employed in an employment to the nature of which the injury was due before he or she gave the notice,
(b) the provisions of section 61 of the 1998 Act shall apply to or in respect of the injury as if the words 'as soon as practicable after the injury happened and before the worker has voluntarily left the employment in which the worker was at the time of the injury' were omitted therefrom,
(c) compensation is payable by -
(i) where the worker was employed by an employer in an employment to the nature of which the injury was due at the time he or she gave notice of the injury - that employer, or
(ii) where the worker was not so employed - the last employer by whom the worker was employed in an employment to the nature of which the injury was due before he or she gave the notice,
"The legislative scheme for awards of compensation for boilermaker's deafness proceeds on the following assumptions or fictions:
"Section 17 deems the injury here suffered to have happened at a particular time for the purposes of the Act. The time the injury actually happened is irrelevant. Clause 2 of Pt 6 limits the application of s 67 to injuries received after a particular time. The question for decision is whether cl 2 refers to the point of time at which the injuries were actually received or to the deemed or notional point of time prescribed by s 17.
To choose the actual point of time is to depart from the result of an historical development in workers compensation legislation in New South Wales designed, in the case of progressive slow growing industrial or occupational diseases or injuries, to relieve the worker from the daunting forensic task of proving when they occurred and, if they were employment related, by which relevant employer compensation therefor is payable. In the case of loss of hearing caused by a gradual process, s 17 achieves this design by providing that the loss is an injury which happened at a particular arbitrary point of time, making compensation payable upon demonstration that the worker was employed by an employer in an employment to the nature of which the injury was due and fixing a particular employer with liability..."
"Counsel for the appellant submitted that upon its true construction, s17(1(c)(ii) should be read as if there were inserted into its provisions the words which are bolded as follows:
(ii) . . .the last employer by whom the worker was employed in an employment to the nature of which the injury was due but only if the last such employment was in New South Wales before he or she gave notice.'
Counsel acknowledged that the affect of this construction was that a worker, who had suffered a hearing loss in New South Wales, but whose last noisy employment was with an employer located outside New South Wales could not use the provisions of s 17 to claim compensation from the New South Wales employer. He submitted that the worker, in that case, would be required to prove, through the combined operation of ss4, 9 and 66, the extent of the loss caused by the employment in New South Wales and that the employer against whom the claim was made, actually caused the loss for which the claim was made.
Section 17, as the appellant's case recognised, provides an easy path to compensation for a worker suffering from hearing loss of gradual onset. All that is necessary, under the section is for the worker to prove that the last employment (in respect of which that employer is sued) is one to which the nature of the disease is due. It is not necessary to prove that that employment brought about or contributed to the disease: see Smith v Mann [1932] HCA 30; (1932) 47 CLR 426 at 440; Russo v World Services and Constructions Pty Ltd [1979] 1 NSWLR 330 at 332. As Sheller JA said in Rico Pty Ltd v Road Traffic Authority (1992) 28 NSWLR (1992) 28 NSWLR 679 at 689-690, s 17 proceeds on a series of fictions or assumptions, upon which a worker's entitlement to recover an award under s 66 is based.
In the present case, the last noisy employment was in the Northern Territory. However, the Act does not have extra-territorial operation so as to make T & G Refrigeration liable as the last employer under s 17; see Mynott v Barnard [1939] HCA 13; (1939) 62 CLR 68. That being so, s 17 operates so as to make the appellant the last employer. In other words, the appellant is the last employer to whom the legislation applies and is thus liable to pay compensation. This construction of s 17 is confirmed by this Court's decision in Russo v World Services and Constructions Pty Ltd [1979} 1 NSWLR 330. In that case, the Commonwealth was the last noisy employer and the respondent the noisy employer before that. It was held that, as the Commonwealth was not bound by the provisions of the New South Wales legislation, the respondent was the last noisy employer for the purposes of s17 and thereby liable to pay compensation.
Given the fictional basis upon which s17 proceeds, the construction for which the appellant contends involves the implication of language for which there is not only no warrant, but which runs counter to the very purpose of the section. If follows that the appeal should be dismissed with costs."
"There are many cases where the employer who made only a minimal contribution to the actual hearing loss suffered pays all or most of the compensation awarded. However, there will be many other situations where the same employer will pay no compensation for the hearing loss caused by its employment. That is the nature of a scheme based on assumptions and fictions. It is therefore incorrect to submit that the statutory scheme requires an employer to pay compensation only for those injuries or losses suffered by the worker in that employer's employment."
6 November 2021, the actual date of injury is a fiction created by legislation and the time the injury happened is irrelevant. 3. The injury is, in itself, the industrial hearing loss suffered by the appellant. As explained by Sheller JA in Rico, there are clear policy objectives underpinning s 17(1)(b), which creates as a legal fiction, liability in a particular employer, whether or not they are actually responsible for the injured worker's industrial hearing loss. 4. As a result of the legal fiction created by s 17(1) of the 1987 Act "the injury" to be assessed is the appellant's industrial hearing loss, regardless of when it occurred. 5. As the injury is deemed to have occurred "in one blow" on 6 November 2021, there cannot be an applicable s 323 deduction and in applying one the Medical Assessor was in error. 6. This error is easily corrected by the Appeal Panel by simply removing the s 323 deduction increasing the degree of whole person impairment from 8% to 9%.
Ground 2 - the Medical Assessor failed to take into account relevant considerations
Ms Dolalas. The appellant submitted there was "no active intellectual process" directed at the information, referencing Singh v Minister for Immigration and Multicultural Affairs [2001] FCA 389 at [59]. 4. The appellant submits that in not considering the report of Ms Dolalas the Medical Assessor failed to take into account a relevant consideration and therefore the assessment was made on the basis of incorrect criteria and/or fell into demonstrable error. 5. No submission was made by the appellant as to the actual relevance of the report of
Ms Dolalas from 2023 to the assessment undertaken by the Medical Assessor in July 2025. 6. The respondent submits the Medical Assessor did not refer to the report of Ms Dolalas as the Medical Assessor did not consider it relevant and that the Medical Assessor did refer to other audiological assessments from both the appellant and respondent's qualified medicolegal examiners and obtained a history. The respondent submits the Medical Assessor was not obliged to refer to every document attached to the parties pleadings. 7. The Appeal Panel finds no error with respect to Ground 2. 8. The appellant's reliance on Singh is misconceived. Singh was dealing with a different legislative requirement under s 54 of the Migration Act 1958 (Cth) that prescribes that the "Minister must have regard to all information in application". 9. Clause 9.1 of the Guidelines only require the Medical Assessor to have regard to relevant audiological tests. The appellant has not established that the report of Ms Dolalas was relevant. 10. The Appeal Panel notes that the report results from an audiogram undertaken on
6 September 2023. The report noted asymmetry of hearing loss between the left and right ears and recommended further medical investigation. Following this, on 22 January 2024 the appellant saw his long time treating ENT specialist and had "debris removed from both ears". This occurred again on 13 May 2024 where the specialist recorded "he certainly had a lot". The Appeal Panel notes there has been a history of ear wax accumulation dating back several years. 11. The Medical Assessor had available and considered the reports of Dr Tamhane dated
5 July 2024 which included a thorough examination of the auditory canals and Professor Fagan dated 26 February 2025 who records an examination of the upper respiratory tract and notes the tympanic membrane and tympanic cavities are normal. 12. The assessments by Dr Tamhane and Professor Fagan, considered by the Medical Assessor were more contemporaneous and accompanied by reports of physical examinations in addition to audiological testing. 13. Having regard to the totality of the evidence before the Medical Assessor the Appeal Panel finds no error in the Medical Assessor not considering the report of Ms Dolalas from 2023 as relevant to the assessment of permanent impairment in July 2025 particularly given the ongoing treatment and debris removal since that time.
Ground 3 - the Medical Assessor denied the appellant procedural fairness
Ground 4 - The Medical Assessor failed to provide adequate reasons
"...the pre-eminence of the clinical observations cannot be understated. The judgment as to the significance or otherwise of the matters raised in the consultation is very much a matter for assessment by the clinician with the responsibility of conducting his/her enquiries with the applicant face to face..."
"I based my percentage assessment of binaural hearing loss on the audiogram I carried out on 16 June 2025, the history given by the worker and my clinical examination.'
'In summary, Mr Knight has a whole person impairment of 8%. In making that assessment I have taken account of the following matters:
'Noise induced hearing loss is typically bilaterally symmetrical and progressive from the low to the high frequencies and this is because noise damages the inner ear by affecting the higher frequencies first and only with further noise damage are the lower frequencies effected progressively gradually from the higher frequencies to lower frequencies; that is to say 1500 Hz should be affected less than 2000 Hz and 1000 Hz less than 1500 Hz and so on. The progression of hearing loss in the low frequencies needs to be clinically significant if this damage is from exposure to loud noise. Continuous noise exposure over the years is more damaging than interrupted exposure to noise, which permits the ear to have a rest period.
After consideration of the cumulative noise emission levels to which Mr Knight has been exposed and the shape of the audiogram, I would consider that all frequencies in both ears have been damaged by unacceptable noise levels and I have used all frequencies in the calculations for noise induced hearing loss.
As the notional date of injury is after 1 January 2002, calculations have been made based on the National Acoustic Laboratory Tables of 1988. An allowance of 4% for severe tinnitus is indicated.'
I based my percentage assessment of binaural hearing loss on the audiogram I carried out on 16 June 2025, the history given by the worker and my clinical examination."
"My audiogram is not the same as the audiogram carried out by Dr Tamhane. I agree with Dr Tamhane that all frequencies have been damaged by loud industrial noise and for using all frequencies in the calculations for noise induced hearing loss. I agree with Dr Tamhane that there is no conduction component to Mr Knight's noise induced hearing loss.
I disagree with Dr Tamhane making a loading of 2% for severe tinnitus, as I feel a loading of 4% for severe tinnitus is indicated from the history received.
I agree with Dr Tamhane making a deduction of 10% for Mr Knight's period of employment as a Sole Trader. I agree with Dr Tamhane that Mr Knight requires bilateral digital hearing aids.
My audiogram is not the same as the audiogram used by Prof Fagan. I disagree with Prof Fagan excluding the frequency 500 Hz in the calculations for noise induced hearing loss. On my audiogram there is no conductive element in the low frequencies and the loss of hearing at 500 Hz is less than at 1000 Hz and this is consistent with noise induced hearing loss. I disagree with Dr Fagan that I could not find any conductive component in Mr Knight's hearing loss. Mr Knight's left sided ear surgery, myringoplasty, has been successful. I agree with Prof Fagan that the left tympanic membrane, the operated eardrum, is normal.
I agree with Prof Fagan that an allowance of 4% is indicated for severe tinnitus. I disagree with Prof Fagan not making a deduction under Section 323 for Mr Knight's period of employment as a Sole Trader."
(a) carried out an audiogram;
(b) took a history from the appellant;
(c) undertook a clinical examination;
(d) based on (a) to (c) above formed an opinion that the appellant's whole person impairment was 8%;
(e) explained the characteristics of noise induced hearing loss on an audiogram and how this informed his opinion with respect to the appellant, and
(f) engaged with other relevant evidence and in particular the reports and audiograms of Dr Tamhane and Dr Fagan and where and why their opinions differ.
Dr Tamhane and the audiogram conducted by the Medical Assessor. 2. There is no error in the Medical Assessor giving preference to the audiogram he conducted himself as part of his clinical examination over that conducted at an earlier time by another doctor. The Medical Assessor appropriately gave pre-eminence to his own clinical observations and testing undertaken on the day of the assessment (see Wark adopted in Ferguson at [23]). 3. The actual path of reasoning for the conclusions reached by the Medical Assessor is clear from the Medical Assessment Certificate. The Medical Assessor has not failed to provide adequate reasons. Ground 4 is note made out. 4. For the reasons set out above, the Appeal Panel has found error with respect to Ground 1 and the application of a s 323 deduction. 5. The Appeal Panel has determined that the MAC issued on 2 July 2025 should be revoked, and a new MAC should be issued, removing the s 323 deduction. The new certificate is attached to this statement of reasons.
This Certificate is issued pursuant to s 328(5) of the Workplace Injury Management and Workers Compensation Act 1998.
The Appeal Panel revokes the Medical Assessment Certificate of Medical Assessor Howison and issues this new Medical Assessment Certificate as to the matters set out in the Table below:
Table - calculation of whole person impairment (WPI) for industrial deafness as set out in the Table immediately below in accordance with Chapter 9 of the Guidelines for the Evaluation of Permanent Impairment and 1988 NAL Tables:
Resultant total BHI of 17.2% = 9% whole person impairment (Table 9.1)
The above assessment is made in accordance with the SIRA NSW Guidelines for the Evaluation of Permanent Impairment for injuries received after 1 January 2002.
Knight
P & L Knight Builders Pty Ltd [2025] NSWPICMP 987;
(1992) 28 NSWLR 679
(1996) 41 NSWLR 41
(1939) 62 CLR 68
(1932) 47 CLR 426