Threshold vs Non-Threshold Injury (formerly “Minor Injury”) — NSW CTP

From 1 April 2023, the term “minor injury” in the NSW CTP scheme was replaced with “threshold injury”. Same idea, new name — and it's still one of the single biggest factors in what your claim can be worth.

What a threshold injury is

A threshold injury is generally a soft tissue injury — to muscles, tendons or ligaments, for example — that doesn't involve nerve damage or a full or partial tear of a tendon, ligament, meniscus or cartilage. A threshold psychological injury is also its own category. Anything more significant than that is generally described as a non-threshold injury.

It's a legal classification informed by medical evidence, not something decided at a first consultation. The insurer makes the decision based on the medical evidence, sometimes including an independent medical examination it arranges — and the decision can be disputed.

Why the classification matters

The classification affects two of the biggest levers in a CTP claim:

• Duration of statutory benefits — for accidents on or after 1 April 2023, a threshold injury generally limits statutory benefits (weekly payments and treatment and care) to 52 weeks. Accidents between 1 December 2017 and 31 March 2023 had a 26-week limit for minor injuries.
• Access to common law damages — common law damages are generally only available for non-threshold injuries. A threshold injury classification generally closes off the lump sum track, even where you weren't at fault.

How the insurer decides

The insurer's decision is meant to be based on medical evidence — your treating reports, imaging, and sometimes an independent medical examination they arrange. Vague certificates and thin clinical records make it easier for an insurer to classify an injury as threshold; detailed, specific reports from your treating team that document nerve involvement, tears, or ongoing functional restrictions give a fuller picture for the assessor to work from.

If you disagree with a threshold injury classification

This is one of the most commonly disputed decisions in the CTP scheme, and for good reason — it directly affects your entitlements. If you think your injury has been wrongly classified, you generally have review rights, and disputes about medical classification can go to the Personal Injury Commission. See our guide on threshold injury disputes for the practical steps.

Getting the right diagnosis in the first place

Because the classification turns on the specific diagnosis, not just how much pain you're in, the doctor you see matters. A doctor experienced with CTP claims knows the scheme turns on specifics, so where there are signs of nerve involvement or a tear they're used to investigating and recording them precisely — the kind of detail that can decide between a threshold and non-threshold classification. The diagnosis itself is always a clinical judgement about your injury, not something shaped around the claim. See doctors and allied health for CTP claims if you'd like help finding one.

Injuries that commonly sit near the line

Some injuries are clearly one category or the other. Others genuinely sit close to the boundary, which is exactly where disputes tend to arise:

• Whiplash-associated disorders with radiating symptoms that may suggest nerve involvement.
• Shoulder or knee injuries where imaging shows a possible but not clear-cut tear.
• Lower back injuries with disc changes that overlap with pre-existing degeneration.
• Psychological symptoms that may extend beyond a threshold psychological injury, such as diagnosed PTSD.

Pre-existing conditions complicate the picture

If you had a pre-existing issue in the same area — an old back complaint, for instance — the insurer may attribute more of your current symptoms to that history than to the accident. This doesn't automatically mean a threshold classification is correct; it means the medical evidence needs to clearly separate what's attributable to the crash from what existed before, which is often exactly the kind of question a specialist report is best placed to answer.