---
title: "Discount a New South Wales future lump sum at the rate the statute states"
url: "https://ailawframework.com/practice/personal-injury-and-compensation/discount-a-future-lump-sum-at-the-statutory-rate/new-south-wales"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A21-DM20261023-2-NSW"
practice_area: "Personal Injury & Compensation (workers compensation, CTP/TAC, medical negligence)"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["NSW"]
last_reviewed: "2026-10-25"
---

# Discount a New South Wales future lump sum at the rate the statute states

> Where the lawyer names the statute, record whether a discount rate applies and leave the percentage blank until the lawyer confirms the prescribed rate. Do not insert 5 per cent as a default.

Canonical page: https://ailawframework.com/practice/personal-injury-and-compensation/discount-a-future-lump-sum-at-the-statutory-rate/new-south-wales  
Last reviewed: 2026-10-25

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Personal Injury & Compensation (workers compensation, CTP/TAC, medical negligence)](https://ailawframework.com/practice/personal-injury-and-compensation.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | Where the lawyer names the statute, record whether a discount rate applies and leave the percentage blank until the lawyer confirms the prescribed rate. Do not insert 5 per cent as a default. |
| What the lawyer must review | Section 14 applies only where Part 2 of the Civil Liability Act applies Use 5 per cent only if no other rate is prescribed. Check the regulations before you do. Section 4.9 is limited to loss of earning capacity and loss of financial support Do not use either section for work injury damages |
| Written for | New South Wales |
| Applies to | [Discount a future lump sum at the statutory rate](https://ailawframework.com/practice/personal-injury-and-compensation/discount-a-future-lump-sum-at-the-statutory-rate.md) |

## Checking plan

**Verify against sources**

The schedule records the statutory discount question. It does not choose 5 per cent.

- What the AI does: Where the lawyer names the statute, record whether a discount rate applies and leave the percentage blank until the lawyer confirms the prescribed rate. Do not insert 5 per cent as a default.
- What the lawyer does: Confirm whether a rate is prescribed and whether the section applies to this head.
- Who reviews: Lawyer competent in this practice area
- Basis: Checked against the linked sources on 23 October 2026. Confirm the current instrument before reliance.

## Checks the lawyer makes

1. Civil Liability Act section 14 discounts a lump sum for future economic loss of any kind at the percentage prescribed by the regulations, or 5 per cent if none is prescribed.
2. Section 14 is in Part 2. It does not apply to a Part 4 award under the Motor Accident Injuries Act 2017 or to work injury damages.
3. Motor Accident Injuries Act section 4.9 adopts the prescribed rate, or 5 per cent if none is prescribed, only for future economic loss referable to deprivation or impairment of earning capacity, or to loss of expectation of financial support.
4. Section 4.9(3) leaves other discounting law in place. Do not use section 4.9 for a head that is not one of those two.

## Notes

- No regulation prescribing another percentage was opened. The lawyer checks the regulations before 5 per cent is used.
- Health and wage records stay in a firm-controlled tool. The lawyer applies ASCR r 9 and APP 11, and decides whether any breach is notifiable under the Privacy Act 1988 (Cth).

## Practical guide

Jurisdiction: A New South Wales damages assessment to which section 14 or section 4.9 may apply

**Deliverable**: A discount line with the percentage left blank.

**Inputs**

- The Act and the head of loss
- Whether the lawyer has found a prescribed percentage
- The lump sum the lawyer has accepted, if any

**Example**: Illustrative example: The future loss is treatment on a public-liability claim. The line records that section 14 can apply to future economic loss of any kind, and it leaves the percentage blank.

**Stop and escalate when**

- The head is work injury damages.
- The tool would insert 5 per cent before the lawyer has checked the regulations.

Checked 2026-10-23.

## Sources

- [Civil Liability Act 2002 (NSW), in force from 30 July 2026, sections 3B and 14](https://legislation.nsw.gov.au/view/whole/html/inforce/current/act-2002-022) (checked 2026-10-23)
- [Motor Accident Injuries Act 2017 (NSW), in force from 10 July 2026, section 4.9](https://legislation.nsw.gov.au/view/whole/html/inforce/current/act-2017-010) (checked 2026-10-23)

## Forms and precedents for this task

| Form or precedent | Kind | AI level | Summary |
| --- | --- | --- | --- |
| [Letter of instruction to an actuary on future loss](https://ailawframework.com/precedents/personal-injury-and-compensation/letter-instructing-actuary-on-future-loss.md) | Letter | Yellow | Letter asking an actuary to value future earnings and future treatment streams on the lawyer's assumptions, with the rate, percentage and life table left blank. |
| [Victoria Wrongs Act caps worksheet](https://ailawframework.com/precedents/personal-injury-and-compensation/vic-wrongs-caps-worksheet.md) | Other | Yellow | Worksheet for the Wrongs Act 1958 (Vic) limits that were opened: the earnings cap, the indexed non-economic loss maximum, the discount rate, and the gratuitous care limits. No indexed dollar is typed. |

Signed-in accounts can read the full text of each one.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*