What it does
The Transport Accident Act 1986 (the Act) establishes a comprehensive no-fault compensation scheme for persons injured or killed in transport accidents, administered by the Transport Accident Commission (TAC). At its core, the Act imposes a statutory obligation on the TAC to pay benefits where a transport accident directly causes physical or mental injury (s.3(1) definition of injury, incorporating nervous shock for direct involvement or witnessing) or death, provided the accident meets the statutory criteria in s.3(1) and s.3(1A). A transport accident is defined as an incident directly caused by the driving of a motor vehicle, railway train, or tram, expressly including out-of-control vehicles, certain pedal cycle collisions (including with open doors of buses, trams, or trains per s.3(1A)(d)), and incidents on private land in limited circumstances (ss.41A-41B).
The scheme operates through the Transport Accident Fund (s.27), funded primarily by transport accident charges levied on registered motor vehicles (Part 7, ss.109-115). These charges are calculated according to prescribed rates varied annually by consumer price index formulas (s.61(2)), with specific provisions for interstate vehicles (s.111) and manufacturer-controlled vehicles (s.112). The TAC's functions (s.12) include claims assessment and payment (ss.70-76), fund management, accident prevention, and rehabilitation program design (s.12(3)), with powers to authorise services (s.23) and enter individual funding agreements for long-term care (ss.61A-61D).
Compensation under Part 3 is structured in tiers. For the first 18 months post-accident (or manifestation of injury per s.3(4)), earners receive weekly payments for total or partial loss of earnings (ss.44-45), calculated as 80% or 85% of pre-accident weekly earnings (ss.4-5), subject to caps (s.44(3)) and offsets for other benefits. After 18 months, payments shift to loss of earning capacity (ss.49-51), with reviews at five-year intervals (s.55). Impairment benefits are payable for whole person impairment exceeding 10% (s.47(1)), assessed per the AMA Guides as modified (s.46A(2)), with lump sums scaled from $4,500 for 11% impairment upward to $252,000 for 100% (s.47(2) table). Death benefits include lump sums for surviving partners (s.57), periodical payments (s.58), and child allowances (s.59).