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How the TAC calculates income support for self-employed people

When calculating income support, the TAC follows Victorian legislation called the Transport Accident Act 1986.

The TAC firstly calculates how much you were earning (less expenses) before the accident. Secondly, the TAC applies a special formula prescribed by the Act that sets out how much the TAC can pay you. This formula is explained below.

The TAC understands that each person's situation is different. Your individual circumstances will be taken into account when calculating your TAC income benefits.

Step one – working out your loss of income

Before the TAC can pay you income support, we need to work out what your income loss is as a result of your accident.

Your income loss may be a result of lost earnings, or having to pay someone to do the work you would normally do.

The TAC may contact you or your accountant when calculating your income support. The TAC will calculate your loss of income by having regard to:

  • your last three years of taxable earnings; and
  • the costs you incurred to hire someone to replace you.

The TAC will calculate your loss of income by looking at your declared earnings.

Generally, the TAC will use the 3 years before your accident as a guide to your average income. Exceptions may be made where there is a clear upward or downward trend in income prior to the accident. If your business has been operating for less than 3 years, we will look at the whole period the business has been operating.

More information about what you need to provide to make a claim is available here.

When assessing your income, the TAC will not include:

  • Income you received from interest
  • Rental income
  • Income from dividends
  • Expenses you normally charge to the business, such as telephone or car payments.

To find out if you are eligible for income support call the TAC on 1300 654 329.

Claiming the cost of employing someone to work for you

If you need to employ a person to do your work for you because of your accident injuries, the TAC can reimburse you for some of the costs.

The TAC will look at your business records to confirm details of your substitute labour. You can find out what information you need to provide to make a claim here. The sooner you provide the information, the sooner the TAC can start paying your income support.

Step two – work out your TAC rate

Once the TAC has worked out your assessable income, we follow a formula prescribed by the Transport Accident Act 1986 that sets out how much the TAC can pay. In most cases, applying this formula means that the TAC pays 80% of your assessable income, up to a maximum rate.

Use the following table as a guide to work out your TAC rate. The amounts listed are for the period 1 July 2018 to 30 June 2019 (Refer to the indexation of benefits for the current amount). These amounts are indexed each financial year.

  1. You will be paid 100% of your assessable income if it falls below $665†
  2. You will be paid $665† per week if, after calculating 80% of your assessable income, it falls below $665†
  3. You will be paid 80% of your assessable income if this 80% amount is between the minimum amount of $665† and the maximum amount of $1,350
  4. You will be paid $1,350 per week if 80% of your assessable income is greater than this maximum rate of $1,350.

Minimum payments

This is the minimum rate if you have no dependents. Dependents include anyone who is reliant on you for financial support and can include your partner or children, even if they are working. Use the following table to work out what minimum amount applies to you.

Minimum amount payable  
No dependents

$665

With one dependent  (Add $188)

$853

With two dependents (Add $60)

$913

With three dependents (Add $60)

$973
(+$60 for each dependent thereafter)

Maximum amount payable (regardless of dependents)

$1,350

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