The ACT’s new workers’ compensation scheme comes into effect on July 1, and some lawyers believe it will raise payouts for personal injury cases. It allows increased payouts without restricting access to common law.

And it might also lead to householders needing special insurance, because a much broader category of workers will be entitled to claim compensation. They include babysitters, gardeners and window cleaners.

Andrew Muller, national insurance group manager with law firm Hunt & Hunt, says the ACT magistrates’ court will be handing out higher amounts than ever before to people who are permanently impaired, yet there has been no balancing legislation to restrict access to common law. “Increasing lump sum benefits without taking common law entitlements into account or capping damages will push premiums up over time.”