NSW Indexes CTP Benefits From October 1, 2026, Lifting the Weekly Statutory Benefit Cap to A$3,853 and the Non-Economic Loss Cap to A$521,000, With Green Slip Effects Not Yet Quantified

The State Insurance Regulatory Authority of New South Wales, SIRA, has confirmed that a range of compulsory third party (CTP) scheme benefits were increased from October 1, 2026. Insurance Business Australia reported the change and suggested it would push Green Slip premiums higher. The details in this article come from that report. The orders themselves were not reviewed, and the report does not state the percentage by which benefits rose. Where this article makes a calculation or points out an inference, it says so.

What was indexed

CTP insurance, known in New South Wales as the Green Slip, pays benefits to people injured in motor accidents. The report says SIRA indexed several items under the Motor Accident Injuries Act 2017: legal costs, medico-legal fees, weekly benefit payments and non-economic damages. Damages under two older laws, the Motor Accidents Act 1988 and the Motor Accidents Compensation Act 1999, are also indexed, because claims under those laws are still open. Indexation is an automatic adjustment so that fixed dollar limits keep pace with wages. The report says the adjustment equals the percentage change in NSW average weekly total earnings as published by the Australian Bureau of Statistics. It cites the relevant sections of the 2017 Act, 3.22 for statutory benefits and 4.22 for the non-economic loss cap. SIRA published three orders: the Motor Accident Injuries (Indexation) Order (No. 2) 2026, the Motor Accidents (Determination of Non-Economic Loss) Order 2026 and the Motor Accidents Compensation (Determination of Loss) Order 2026.

The new caps

The report gives two headline figures. The maximum weekly statutory benefit, under section 3.9 of the 2017 Act, is A$3,853. The maximum non-economic loss damages, under section 4.13, is A$521,000. Non-economic loss damages compensate for things like pain, suffering and loss of enjoyment of life, as distinct from lost income or medical costs. The report does not state the previous figures, so the size of the increase cannot be calculated from it.

What happens to premiums

The report's headline says the indexation will push Green Slip premiums higher, but it does not give a figure. Its reasoning is that higher fee caps and payment thresholds feed into insurers' claims reserves, which influence pricing at renewal. Because the report does not quantify the effect, readers should treat the direction as plausible but unmeasured.

The latest premium data in the report comes from SIRA's CTP scheme performance report for the year to June 30, 2025. In that year the average Green Slip rose A$35, or 7%, to A$536 including levies and GST. That is still below the average of A$935 before the 2017 reforms. A comparison made here shows the average is about 43% lower than the pre-reform level (536 against 935), though the two figures are separated by years of inflation. Fund levies, which are included in the premium, also rose. The total average levies went from A$164.80 to A$190.60 between January 2025 and January 2026, and one component, the Motor Accidents Operational Fund levy, rose from A$37.50 to A$65.50.

The downward pressure that is easing

SIRA operates a transitional mechanism that recovers excess profits from CTP insurers. The report says it has recovered A$542.9 million since 2020 and that SIRA said it has led to a reduction in premiums. In September 2025, SIRA confirmed that no insurer profits would be reclaimed that year, reflecting insurers' pricing adjustments during the transition. The report says this downward pressure on prices is easing. Put together, the report describes premiums as rising from a lower base, with less clawback of profit and higher benefit caps.

What injured people can claim

The report summarizes how long statutory benefits last under the 2017 scheme. Most injured people can claim for up to 52 weeks regardless of fault. Threshold injuries are capped at 52 weeks of weekly payments. For non-threshold injuries where the claimant was not mostly at fault, benefits run up to 104 weeks. Where a damages claim is pending, benefits can last 156 weeks if permanent impairment does not exceed 10%, or 260 weeks if it does. SIRA data to June 30, 2025 show that 97% of claims were accepted for statutory benefits in 2024-25, that about 3,800 claims are reported each quarter, and that 91,313 claims had been recorded under the 2017 scheme since it began, with a further 10,362 expected but not yet reported.

Who is affected

The report identifies three groups. Brokers advising New South Wales clients, particularly fleet and commercial customers whose CTP costs add up across many vehicles, will need to explain renewal pricing. Claimants under the 2017 Act and the two earlier laws receive revised benefit and damages amounts. And motorists generally face Green Slip pricing at renewal.

Wider motor insurance context

The report places the change in a broader setting of rising motor costs, quoting the Insurance Council of Australia, ASIC and others. It says the Council found average motor claim costs rose 42% between 2019 and 2024, and that ASIC reported motor vehicle insurance premiums rose 8% in the 12 months to July 2025. The report adds that those findings relate to comprehensive motor cover and not CTP, and that they indicate the general inflationary environment only.

Limits

This article relies on one trade-press report. The indexation percentage and its effect on premiums are not stated, and the premium data predate the October 2026 change. It is general information, not insurance advice.