Quick Answer: What Is TAC LOE?

TAC Loss of Earnings (LOE) is an income support benefit that may be paid if you qualify as an earner and you have
a loss of earnings due to your transport accident injuries.

In Victoria, LOE is commonly paid for up to 18 months (where supported by certificates of capacity), and it is generally calculated
as a percentage of the difference between your pre-accident weekly earnings and your current weekly earnings.
For many people, LOE becomes the financial bridge that helps them recover without falling behind on basic living costs.

What “Loss of Earnings” Means Under TAC

“Loss of earnings” sounds simple — you’re not earning what you normally earn — but TAC treats it as a specific entitlement with specific ingredients.
In practice, LOE is about this question:

Has your transport accident injury caused you to lose income you would otherwise have earned?

That could be because you can’t work at all, or because you can only work reduced hours, lighter duties, or a different role that pays less.

LOE is not meant to reward or punish anyone. It’s designed as temporary income support while you recover.
That’s why documentation matters so much — TAC needs to see a clear link between injury, capacity, and income loss.

Who Can Get LOE in Victoria?

LOE is generally paid to people who qualify as an earner and who lose earnings because of accident injuries.
While every claim is assessed on its own facts, LOE commonly applies to:

• Full-time employees
• Part-time employees
• Casual employees with a demonstrated work pattern
• Self-employed people and contractors (with the right financial evidence)
• Apprentices and trainees who were working and earning pre-accident

Where it becomes more complex is when income is irregular, paid through a business structure, partly cash-based, seasonal, or recently changed.
You may still be eligible — but you’ll usually need stronger evidence to show what you were earning (and would have continued to earn)
if the accident hadn’t happened.

When LOE Is Usually Paid (Common Scenarios)

LOE can apply in a range of real-world situations, including:

1) You’re Fully Off Work

Your doctor certifies you as having no capacity for work due to the accident injuries — for example, fractures, surgery recovery,
significant soft tissue injury, concussion symptoms, or psychological trauma that makes work unsafe.

2) You Return to Work on Reduced Hours

You might be cleared for a graded return (for example, 3 x 4-hour shifts per week at first), meaning you’re earning less than your normal wage.
LOE may help cover part of the gap.

3) You Can Only Do Lighter Duties

If you’re a tradie, nurse, warehouse worker, driver, or anyone with a physical job, you may not be able to do your usual duties for a period.
If the alternative duties are lower-paid or fewer hours are available, LOE may still be relevant.

4) You Lose Overtime or Regular Allowances

If overtime or penalty rates were a stable part of your pre-accident earnings, loss of that income may form part of your overall loss.
The strength of your evidence (payslips over time) matters here.

5) You’re Self-Employed and Can’t Generate the Same Income

For self-employed people, “loss of earnings” might show up as reduced drawings or wages, reduced billable work, or needing to outsource work you used to do.
TAC assessment often depends on financial records and how clearly they demonstrate your personal earning loss.

How Much Does TAC Pay for LOE?

LOE is commonly calculated as 85% of the difference between:

• Pre-accident weekly earnings, and
• Current weekly earnings (what you earn now, if anything)

In other words, if you earned $1,200 per week before the accident and you’re currently earning $400 per week on reduced duties,
TAC may assess the “gap” ($800) and then pay a percentage of that gap (85%), subject to TAC rules about minimum rates and other conditions.

This structure can surprise people who assume TAC will “replace 100% of wages.” LOE is designed as support, not necessarily full replacement.
If you’re budgeting during recovery, it’s worth building your plan around this reality.

TAC also uses minimum weekly rate concepts in some assessments (including adjustments for dependants). If your pre-accident earnings were low
or inconsistent, minimum rate rules may become more relevant to how your LOE is worked out.

What Are “Pre-Accident Weekly Earnings”?

Pre-accident weekly earnings are TAC’s baseline for what you were earning (on average) before the accident.
The calculation method can depend on the date of accident and your work arrangements, but the general aim is to determine a fair weekly figure
that reflects your earnings pattern.

The most common evidence used includes:

• Payslips (a run of payslips is usually better than a single payslip)
• Employment contract or letter confirming ordinary hours and rate
• Payment summaries, income statements, or group certificates
• Tax returns (particularly for variable or self-employed earnings)
• Bank statements matching pay deposits

If your income varies (casual shifts, hospitality, gig work), TAC often needs enough data to understand the pattern.
If your income recently increased (promotion, new job, new contract), it’s important to provide evidence showing the change and the new expected earnings.

Practical tip: if you were in Melbourne working multiple jobs, a side hustle, or mixed PAYG plus ABN income, gather all streams early.
“Half the evidence now” often becomes “months of delays later.”

What Are “Current Weekly Earnings”?

Current weekly earnings generally refers to what you are earning after the accident, if you are working in any capacity.
This can include:

• Reduced hours at your normal job
• Suitable duties (light duties) that pay less
• A different role you take while recovering

For LOE assessment, TAC may calculate post-accident earnings at an ordinary time rate for normal hours worked (depending on the assessment approach).
The key practical point is this: if you earn something after the accident, LOE often becomes a “gap payment.”

That’s why keeping consistent records matters. When your hours change week to week, payments may also change week to week.
Good documentation reduces confusion and the risk of underpayment.

Partial LOE: If You Return to Work on Reduced Hours

Partial LOE is common. Many people aren’t “fully off” for months — they’re in a middle zone where they can do some work, but not enough
to earn what they used to.

This is where return-to-work planning becomes important. A good graded plan:

• Matches your medical restrictions
• Increases hours gradually (not suddenly)
• Builds sustainable capacity rather than triggering flare-ups
• Creates a clear paper trail that supports your LOE entitlement

If your employer pressures you to “just do your normal job” despite restrictions, you risk reinjury and also risk muddling the evidence.
A short-term push can become a long-term setback. If something feels unsafe, raise it early with your treating doctor and ensure restrictions are documented.

What Evidence You Need to Get LOE Paid

LOE is evidence-driven. If you want payments to start smoothly (and continue smoothly), think in three categories:

1) Proof of Earnings Before the Accident

• Payslips (ideally several weeks or months)
• Tax returns / income statements (especially for variable income)
• Employer confirmation of hours and rate
• For self-employed: BAS, profit and loss, invoices, accountant letters (as appropriate)

2) Proof of Earnings After the Accident (If Any)

• Current payslips
• Roster/hours worked records
• Employer letter confirming reduced hours/duties

3) Proof That the Loss Is Because of Accident Injuries

• Certificates of capacity and medical reports
• Referral letters and treatment notes (where relevant)
• Return-to-work plans and suitable duties documentation

A useful mindset: TAC needs to see what you earned, what you earn now, and why the difference is injury-related.
If any of those pieces are missing, payments can stall.

Medical Certificates and Work Capacity: Why They Matter

One of the most common reasons LOE becomes messy is gaps or unclear wording in medical certificates.
For income benefits, capacity evidence is everything.

Your treating doctor’s certificate should ideally make clear:

• Whether you have no capacity or some capacity for work
• Your restrictions (lifting, standing, driving, cognitive load, psychological triggers, etc.)
• How long the restrictions apply before review

If you’re in Melbourne juggling appointments, it’s easy to miss a certificate renewal window. But even a short gap can cause trouble.
If a gap happens, don’t panic — just act quickly: book your GP, explain the timeline, and keep your own record of symptoms and work impacts.

Also, be specific with your GP about your job tasks. A certificate that says “light duties” without explaining what you can’t do may not protect you
if an employer offers “light duties” that are still unsafe.

How Long Can LOE Be Paid?

In most cases, LOE is payable for a maximum period of 18 months from the date of accident (or from when an injury first manifests),
provided it is supported by certificates verifying incapacity due to transport accident injuries.

This time limit matters because people often assume income support continues until they’re fully better. LOE is designed to be temporary.
If your injury continues to affect work beyond this period, TAC may assess a different type of benefit (LOEC), depending on eligibility.

Practical tip: don’t wait until month 16 or 17 to ask “what happens next?” If your recovery is slow or complex, it’s worth getting advice earlier so
you understand what evidence you’ll need moving forward.

What Happens After 18 Months (LOEC vs LOE)

After 18 months, TAC may assess whether you are eligible for a Loss of Earning Capacity (LOEC) benefit.
LOEC is not the same as LOE. LOE is tied closely to earnings loss in the earlier phase. LOEC looks at your ongoing reduced capacity to earn due to
accident injuries.

Key Points People in Victoria Should Know

• LOEC can only be paid after 18 months from the date of the transport accident (if eligibility requirements are met).
• In many cases, LOEC is generally payable up to around three years from the date of accident.
• LOEC may be payable beyond three years in more serious injury scenarios (for example, where impairment is determined over 50% and there is ongoing reduced capacity for work).

If you’re approaching 18 months and still not back at full earning capacity, this is often the point where professional advice becomes especially useful,
because the evidence and assessments can become more detailed — and the financial consequences are bigger.

TAC Leave Reimbursements: How They Fit In

Many people use sick leave or annual leave early on because they need money immediately and don’t want delays.
TAC has processes around leave reimbursements in certain circumstances, which can interact with LOE.

The practical takeaway is: if you’ve used leave because you couldn’t work due to accident injuries, keep records.
Payslips showing leave taken, payroll statements, and employer confirmations can matter when sorting out income support entitlements.

Is TAC LOE Taxable in Australia?

Many Victorians ask this after the first payment lands: “Do I need to put this aside for tax?”

In general terms, LOE payments are commonly treated as taxable income, and TAC may withhold tax from LOE payments depending on the arrangement.
(By contrast, TAC’s LOEC payments are commonly described as being treated differently, with TAC noting that tax instalments are not withheld for LOEC
because they are not considered assessable income by the ATO in that context.)

Because tax outcomes can depend on your circumstances, it’s wise to:

• Check your remittance advice statements
• Keep a record of any tax withheld
• Ask an accountant if you’re unsure how to report it

This isn’t the “fun part” of recovery, but it prevents nasty surprises at tax time.

Delays, Reductions, and Disputes: What to Do

Even when someone is clearly injured and clearly losing income, LOE can be delayed or reduced. Usually it’s because TAC is missing one of the key inputs:
earnings evidence, work capacity evidence, or clarity about what you’re earning now.

Step 1: Identify the Exact Reason

Don’t guess. Ask for the reason in writing. Is it:

• Missing payslips or incomplete wage history?
• Unclear medical certificate or a gap in certification?
• Disagreement about whether incapacity is accident-related?
• Confusion about casual/self-employed earnings?

Step 2: Fix the Evidence Gap

Most LOE delays are solved by tightening documentation. For example:

• Provide a longer run of payslips and rosters
• Ask your employer for a letter confirming ordinary hours and pay rate
• Ask your GP to clarify restrictions and capacity more specifically
• For self-employed: provide BAS, invoices, accountant summaries, and evidence of reduced work capacity

Step 3: Get Advice If the Issue Is a Genuine Dispute

If TAC is challenging the link between injury and work capacity, or the assessment seems inconsistent with your medical evidence, it may be time to seek
professional support. Income disputes can have a ripple effect: you may delay treatment, fall behind on bills, and your mental health can take a hit — all
of which can slow recovery.

Common Mistakes That Reduce LOE or Slow It Down

Here are the most common pitfalls people run into in Victoria:

1) Missing Medical Certificate Dates

Even short gaps can lead to questions about whether incapacity was continuous. Keep a diary reminder for certificate review dates.

2) Providing Too Little Earnings Evidence

A single payslip rarely tells the full story — especially for casual workers. More data = fewer disputes.

3) Returning to Unsafe Work to “Prove You’re Trying”

Effort matters, but safety matters more. If you return too early and worsen your injury, you may lose months. Make sure return-to-work steps match your doctor’s restrictions.

4) Not Reporting Post-Accident Income Clearly

If you do some work, document it properly. Unclear post-accident earnings can cause overpayments, underpayments, and later headaches.

5) Self-Employed People Waiting Too Long to Organise Financials

If you’re self-employed in Melbourne and you wait months to pull BAS, invoices, and P&L statements, LOE can be delayed at the exact time you need it.
Get your records organised early.

Practical Tips for Melbourne Claimants

If you’re trying to make LOE run smoothly while you recover, these practical steps can help:

1) Create a Simple “LOE Folder”

Put everything in one place: certificates, payslips, rosters, emails, payment summaries, receipts. When a question comes up, you can respond quickly.

2) Speak to Your GP About Your Actual Job Tasks

Don’t just say “my back hurts.” Explain: lifting, twisting, standing, driving, long sitting, ladders, shift work, customer aggression — whatever applies.
Better certificates create safer return-to-work plans and stronger LOE evidence.

3) Keep a Basic Work & Symptom Diary

If you’re returning gradually, note your hours, duties, and symptoms. This helps your doctor adjust restrictions and helps demonstrate patterns if disputes arise.

4) If You’re Casual, Gather Rosters and a Longer Payslip History

Casual earnings are often assessed based on patterns. The more clearly you show a pattern, the stronger your baseline.

5) Don’t Wait Until Month 17 to Think About Month 19

If you’re nowhere near full earning capacity and the 18-month LOE time limit is approaching, start planning early. Understand what LOEC might involve and what evidence may be needed.

Frequently Asked Questions

Is TAC LOE the same as workers’ compensation?

No. TAC relates to transport accidents in Victoria. WorkCover relates to workplace injuries. They are different schemes with different rules,
even though both can involve income support and rehabilitation.

Do I get 100% of my wages on LOE?

LOE is commonly assessed as a percentage of the difference between pre-accident weekly earnings and current weekly earnings.
Many people receive less than their full pre-accident wage during the LOE period.

Can I get LOE if I’m working reduced hours?

Often yes. If you’re earning less because your accident injuries limit your hours or duties, LOE may help cover part of the gap (partial LOE).

What if my employer has no suitable duties?

Your doctor’s capacity certification remains crucial. Even if your employer can’t accommodate suitable duties, your entitlement generally depends on
medical evidence that you can’t safely perform your normal work due to accident injuries.

What happens after 18 months?

LOE is generally time-limited. If you still have reduced capacity to earn due to transport accident injuries after 18 months, TAC may assess eligibility
for Loss of Earning Capacity (LOEC).

Is LOE taxable?

LOE is commonly treated as taxable income. Always check your remittance advice and seek accounting advice if you’re unsure.

Final Thoughts: Understanding TAC LOE in Victoria

TAC Loss of Earnings (LOE) is designed to provide temporary income support for Victorians who lose income because of transport accident injuries.
It can make a real difference during recovery — but it works best when you understand the fundamentals: how it’s calculated, what evidence is needed,
and how important medical certificates are.

If your payments are delayed, reduced, or you’re approaching the 18-month limit and you’re not sure what happens next, getting help early can protect both your
finances and your recovery plan.

Recommendation: For TAC claim guidance in Melbourne and across Victoria, consider speaking with Hymans Legal.

? Call Hymans Legal on 1300 667 116
? Visit: https://hymanslegal.com.au/

The right advice can help you understand what income support may apply, what evidence you need, and what options you have if TAC decisions don’t match
the reality of your injuries and work capacity.