How is past and future economic loss calculated?
Economic loss, also known as ‘loss of income’, is one of the most significant areas of compensation in personal injury claims such as car, motorbike, truck and work accident claims for compensation. If your ability to perform your work tasks has been impeded by the injuries from a motor vehicle or workplace accident, then you are entitled to claim for the economic loss that you have experienced as a result of your injury.
When assessing and determining the amount of compensation an individual is due for their injuries, the court will look at what was their most likely future if the accident had not occurred. They then compare their expected future to their post-accident life and what it is likely to be in the future by taking into account the injuries they suffered in the accident. This is a difficult task even if the injured person can prove how much economic loss they have experienced and would continue to experience. In addition to general damages for the pain, suffering and loss of enjoyment of life that the individual has experienced since the accident, the court will award compensation for loss of salary or wages, loss of profits or self-employment income, loss of promotion and many other types of lost income.
Calculating past and future loss of income — an example
Mike is a 42-year old carpenter who sustained spinal injuries to his lower back in a serious motorbike accident. Due to the severity of his injuries, Mike was advised by his doctors that he will not be able to continue working as a carpenter and will have to find a less strenuous occupation. After taking three months to recover, Mike began applying for other roles and was eventually hired in a local supermarket stacking shelves.
Unfortunately, Mike struggled with his role at the supermarket due to his injuries which made it difficult for him to stand for long periods of time, bend down to pick up boxes and reach high shelves. While he was initially hired to work 6 hours per day, 5 days per week, due to his injuries and the pain he was experiencing at work, Mike had to reduce his hours to 3 days per week. This was a problem with Mike’s supervisor, who was also unhappy about the time it took Mike to stock the shelves.
After two months at the supermarket, Mike lost his regular hours and is now on call, filling in when other workers are on leave or absent from work. He has worked an average of 4 hours a week over the past two months and is experiencing significant financial hardship.
Mike began his apprenticeship as a carpenter when he was 16 and has never worked in another role. While he has undergone additional training, this training relates only to his occupation as a carpenter and he has few recognisable skills outside of carpentry. Mike decides to lodge an accident compensation claim to recover the loss of income he has suffered because of the injuries he sustained in the motorbike accident.
When considering the loss of income that Mike has experienced, the court will look at a number of factors, such as:
To evaluate this, the court will calculate the difference between the earnings that he would have received as a carpenter and what he earned at the supermarket. As Mike claimed that he was in line for a promotion to supervisor shortly after the date of the accident, he will have to provide evidence to support this claim.
Consistency of earnings is a factor that the court will look at when assessing loss of income, so it will look at any overtime that Mike worked. Mike worked an average of 10 hours overtime per week, which would likely be awarded in addition to his regular salary.
Mike says that he would have continued to work as a carpenter for as long as he could, most likely until the age of 65, and that after being promoted to site supervisor would have continued to look for advancement opportunities within the organisation. This means he could have earned higher wages than he was currently making at the time of the accident.
As Mike is currently working an average of just 4 hours per week and is struggling to find a less strenuous role that can provide him with more hours and higher wages, the court will look for evidence that supports this claim and calculate his future economic loss on the basis of this evidence.
When calculating the future economic loss that Mike is likely to have experienced as a result of the injuries he suffered in the motorbike accident, the court will use the Litigation Tables, actuarial tables which provide multipliers that reduce losses to present day values.
After applying the Litigation Tables, the court will then take into account contingencies of life (for example, Mike not working until retirement age or suffering a medical condition that prevents him from working until the age of 65), and likely reduce it. However, they may increase this to allow for his loss of advancement opportunities and loss of future income. The total is the amount that Mike would receive for future economic loss.
30 second compensation claim checker
The Accident Law 30 Second Compensation Claim Checker will quickly assess if you may be able to make a compensation claim. One of our experienced Lawyers will then provide you with a free claim assessment by Email/SMS or Phone. This will also help you estimate just how much compensation you may be due for your claim. Again all at no cost, just click below.
Legal fees
Should you choose to have our accident solicitors represent you in your compensation claim, you can rest assured that you are covered by our no win no fee guarantee, and that you will be made aware of any legal fees up front.
You are also covered also by ‘the 50/50 rule’ for no win no fee personal injury cases which is found in the Legal Profession Act 2007 (LP Act). In short, it is where the settlement sum is less than the legal professional fees that could be charged or where legal professional fees became so high that you would be left with very little from the settlement sum. If this happens, the 50/50 rule kicks in to ensure you get a fair share of the recovered damages.
If you have any questions about heads of damage or our no win no fee guarantee, please call us on 07 5531 4444 or complete our contact form at the bottom of every page and we will get back to you. Our accident claim solicitors can assess your case and answer any questions you may have.

Accident Law No Win No Fee Guarantee
You really have nothing to lose with our no win no fee guarantee. When we take on your case we pay for all outlays and associated claim expenses, meaning we get you access to the help you need quickly.
You are also covered by Queensland legislation, so if our fees were to somehow exceed the compensation amount, then we are obligated to reduce them. This means you can confidently pursue a legal claim without being left out of pocket.How Much Compensation Will I Receive?
The amount of compensation you receive will be determined by calculating the monetary value of your injuries and their impact on your quality of life. Therefore, it’s tailored to your individual circumstances.
Our compensation calculator can show the very basic (but not full) amounts of compensation. Or try our 30 Second Compensation Checker to see if you can make a claim. However, it’s best to speak with one of our Lawyers (there is no cost for this) to get a better idea about your claim.
Accident Law No Win No Fee Guarantee
You really have nothing to lose with our no win no fee guarantee. When we take on your case we pay for all outlays and associated claim expenses, meaning we get you access to the help you need quickly.
You are also covered by Queensland legislation, so if our fees were to somehow exceed the compensation amount, then we are obligated to reduce them. This means you can confidently pursue a legal claim without being left out of pocket.How Much Compensation Will I Receive?
The amount of compensation you receive will be determined by calculating the monetary value of your injuries and their impact on your quality of life. Therefore, it’s tailored to your individual circumstances.
Our compensation calculator can show the very basic (but not full) amounts of compensation. Or try our 30 Second Compensation Checker to see if you can make a claim. However, it’s best to speak with one of our Lawyers (there is no cost for this) to get a better idea about your claim.Every case is unique and is treated as such
It is important to remember that every case is unique and what one individual is awarded in compensation for their injuries can be significantly different to what another is awarded. This is because injuries affect people in different ways and there are different earning capacities, opportunities for promotion and wage rises for people in different roles and occupations. Furthermore, what may be considered a minor injury can have a significantly greater impact on a person’s occupation than another’s.
The circumstances of each claimant is scrutinised very carefully when assessing past and future economic loss. Our Brisbane and Gold Coast-based accident lawyers can do this for you and there is no cost for us to assess your claim and advise you on the feasibility of lodging a claim for injury compensation.
- Been injured in a motor vehicle accident, a workplace accident, or a road accident? Accident Law is the compensation lawyers Brisbane & Gold Coast clients trust to get the outcome they deserve.
- Since 1983 we have worked alongside our clients to help them get the compensation they are owed from car and motor vehicle accidents and workplace accidents.
- Queensland specialised and accredited injury and accident specialists are on hand to help get you the most compensation and get your health back to top form
Contact our QLD, Gold Coast & Brisbane motor vehicle accident lawyers to start your claim
Accident Law offers no win no fee accident compensation claim representation in Brisbane, the Gold Coast and Queensland. To find out whether you have a claim for compensation for the injuries you sustained in a car, motorbike, truck or work accident, call us on 1800 958 498 or complete our short contact form below and on the footer of every page and we’ll call you back.