WA Workers Compensation Settlement – Statutory Benefits Guide

This practical guide explains how workers compensation settlements operate under the WA statutory scheme, including WorkCover WA benefits, legislated payout limits and permanent impairment assessments.

If you are deciding whether to accept a settlement offer, read our decision guide here: What You Need to Know Before Settling a Workers’ Compensation Claim in WA.

Background to WA Workers Compensation Payments and Statutory Benefits

Under the Workers Compensation and Injury Management Act 2023 workers who have an accepted WA workers compensation claim are entitled to:

• reasonable medical and allied health treatment expenses
• compensation for loss of wages (income compensati0n)
• reasonable workplace rehabilitation expenses
• travel and other expenses

If you have made a workers compensation claim in WA, this article is a guide on all you need to know about WorkCover WA schemes and claims, including workers compensation benefits, coverage and examples.

For a clear explanation of how these statutory rules apply to your specific injury, Foyle Legal offers an obligation-free WorkCover WA claim assessment.

Medical review regarding permanent impairment in WA workers compensation settlements

When assessing statutory entitlements under a WA workers compensation claim, a permanent impairment assessment with an Approved Permanent Impairment Assessor (APIA) is typically required if permanent impairment compensation is part of the claim

An APIA is a WorkCover WA-approved medical practitioner trained to assess impairment using the WorkCover WA Guidelines for the Evaluation of Permanent Impairment under the Workers Compensation and Injury Management Act 2023. You can find the current list of APIAs and the relevant assessment forms on the WorkCover WA website.

How an APIA assessment is requested (and what to provide)

Requests for an assessment are made using WorkCover WA’s approved assessment request form for permanent impairment assessments.
Practically, before your appointment, make sure the assessor has the key material they need (GP and specialist records, imaging, operative reports, rehab notes, Certificates of Capacity and any relevant work capacity history). If the APIA needs further documents or requires attendance, they can issue formal WorkCover WA forms for that purpose (including forms to require attendance or to request documents/information).

What the APIA produces (and why it matters for settlement value)

After examining you and reviewing the materials, the APIA completes the Permanent Impairment Assessment – Report and Certificate (APIA1). This document records whether you have reached maximum medical improvement and certifies your assessed degree of permanent impairment (and, where relevant, permanent whole person impairment).

That percentage matters because it feeds directly into the statutory calculation of permanent impairment compensation. WorkCover WA explains the Director will scrutinise any permanent impairment component in a settlement to ensure it matches the legislated method (your assessed percentage applied to the relevant item percentage of the scheme’s lump sum limit).

Workers Compensation Settlement Payouts and Maximum Payments in WA

In Western Australia, the total amount you can receive in statutory workers’ compensation benefits is capped and indexed each financial year (effective from 1 July). Under the Workers Compensation and Injury Management Act 2023, the cap is called the General Maximum Amount (this is the term now used for what many people still refer to as the “prescribed amount”).

Current limits (2025/26 financial year — effective 1 July 2025):

• General Maximum Amount / Income Compensation General Limit: $273,220.
• Medical and health expenses general limit: $163,932 (60% of the General Maximum Amount).
• Workplace rehabilitation expenses compensation limit: $19,125 (7% of the General Maximum Amount).

What the “General Maximum Amount” covers

The General Maximum Amount (Income Compensation General Limit) is the overall cap that applies to the combined total of:

• income compensation (weekly payments), and
• permanent impairment compensation

paid across the life of the claim.

Can these limits be increased?

In limited circumstances, an arbitrator can order increases to some caps, including:

• an additional amount of up to 75% of the income compensation general limit in cases of permanent total incapacity where the worker’s social and financial circumstances justify it, and
• increases to the medical and health expenses limit (including an additional amount of up to 40% in some cases, and further increases in specific circumstances described in the Act).

Why this matters in practice: these indexed caps often shape how statutory benefits are calculated and finalised under the WA scheme.

To understand how recent ATO rulings affect whether WA workers compensation settlements are taxable, read our guide: ATO ruling – are WA workers compensation settlements taxable?

If you need help understanding how statutory limits and permanent impairment assessments apply to your circumstances, Foyle Legal can provide an obligation-free WorkCover WA claim assessment.

Getting the most out of your WA workers compensation claim

Permanent impairment compensation

Under the Workers Compensation and Injury Management Act 2023 (WA), permanent impairment compensation is a lump sum calculated by applying your assessed impairment percentage to the relevant percentage of the lump sum limit (the general maximum amount applying on the day of injury).
The Act includes a permanent impairment compensation table and sets out the process and timeframes for accessing permanent impairment compensation (including through settlement pathways).

A permanent impairment assessment can also be used to assess eligibility for work injury damages (common law negligence). If you are assessed as having at least 15% permanent whole of person impairment, you may be eligible to pursue a common law (negligence) claim against your employer (WorkCover WA explains this threshold and that fault must be proven).Even if you don’t pursue damages, the impairment assessment often becomes a major driver of settlement negotiations, because it clarifies what the insurer remains exposed to under the statutory scheme.

Weekly payments (income compensation) — evidence is everything

In WA, once liability is accepted, workers may be entitled to compensation for loss of wages (income compensation/weekly payments), along with other statutory benefits.

or a detailed explanation of how loss of income and future earning capacity are usually assessed in Western Australia, see our guide to claiming loss of income after injury in WA

One common settlement problem is this: workers feel pressured to settle because their weekly payments are being questioned — but they don’t have strong independent treating evidence to support ongoing incapacity.

At a minimum, before you settle you should have:

• a current Certificate of Capacity from your treating doctor, and
• a GP/specialist report that explains why you are unfit (or partially unfit), what duties/hours are safe, and what’s expected over the next 3–12 months.

That evidence is often the difference between negotiating from a position of strength and negotiating with “nothing to point to” except an insurer-arranged report.

If there are issues with weekly payments or how income compensation is calculated under the WA scheme, Foyle Legal can review how the statutory rules apply to your claim.

Medical and health expenses — document future needs before you finalise

WorkCover WA notes that accepted claims can include compensation for reasonable medical and allied health treatment expenses.

Before settlement, ask your treating GP/specialist to set out:

• what treatment is still required,
• how long it is likely to continue,
• and what “contingency” treatment might be needed (e.g., flare management, injections, surgery reviews).

Also: if you paid anything out of pocket (gap fees, pharmacy, equipment), keep invoices/receipts and raise them before you finalise.

Workplace rehabilitation expenses

WorkCover WA also recognises compensation for reasonable workplace rehabilitation expenses.

If you haven’t completed rehabilitation (or you’re mid-program), settlement should reflect that rehabilitation may still be needed — particularly where returning to work requires:

• graded return plans,
• functional capacity work conditioning,
• retraining, or
• employer-specific workplace adjustments.

Travel costs — commonly missed, sometimes significant

Many workers don’t realise they may be entitled to reasonable travel and other expenses associated with an accepted claim.
This can become significant where:

• the worker lives in a regional/remote area,
• specialists are in Perth,
• or travel is frequent (physio, pain clinic, imaging, GP review).

Where travel and treatment costs form part of a statutory workers compensation claim, Foyle Legal can assist in reviewing whether those expenses have been properly accounted for under the WA scheme.

Common Mistakes in Workers Compensation Settlement

A personal injury claim may take 6 months to 3 years to reach a settlement. There are many factors that affect your overall personal injury compensation payout amount.

The top 3 reasons that injured people get their settlement amount reduced are 1) lack of quality legal advice; 2) lack of quality evidence; 3) lack of quality claim management. All these common mistakes can be avoided by simply appointing a good personal injury law firm, such as Foyle Legal, to help with your compensation claim.

Foyle Legal provides No Win No Fee legal representation to all qualified personal injury claims in WA.

FAQ – WA workers compensation statutory settlements

What statutory benefits can be included in a workers compensation settlement in WA?

A WA workers compensation settlement may include statutory components such as income compensation, medical and health expenses and permanent impairment compensation, subject to the limits set under the Workers Compensation and Injury Management Act 2023.

What is the maximum amount payable under WA workers compensation statutory benefits?

In Western Australia, statutory benefits are capped by the General Maximum Amount and related limits for medical, health and workplace rehabilitation expenses, which are indexed each financial year.

How is permanent impairment assessed for workers compensation purposes in WA?

Permanent impairment is assessed by an Approved Permanent Impairment Assessor using the WorkCover WA Guidelines, once a worker has reached maximum medical improvement, and the assessed percentage is applied in accordance with the statutory scheme.

Are damages included in a statutory workers compensation settlement?

No. A registered statutory settlement agreement finalising a workers compensation claim cannot include damages or compensation for pain and suffering outside the statutory scheme.

How do statutory settlements interact with common law work injury damages?

In some circumstances, workers assessed with at least 15% whole person impairment may be eligible to pursue common law damages, but statutory settlement arrangements can affect those rights and thresholds.

For more general workers compensation questions in WA, visit our comprehensive workers compensation FAQ page.

Obtaining legal advice

If you have made a workers compensation claim in WA, stop wasting time. The quickest and cheapest way to obtain legal advice is to contact Foyle Legal and organised an obligation free claim assessment before settling the workers compensation claim. Remember, your employer’s workers compensation insurer is trying to settle your claim for the least amount of money possible.

Call our experienced workers compensation lawyer at Foyle Legal concerning your workers compensation claim and we will be happy to help you further.