---
title: "Work out the NSW section 151Z repayment from a damages recovery"
url: "https://ailawframework.com/practice/personal-injury-and-compensation/work-out-the-employer-s-recovery-from-a-third-party-s-damages-payout/new-south-wales"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A21-W20261018-5-NSW"
practice_area: "Personal Injury & Compensation (workers compensation, CTP/TAC, medical negligence)"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["NSW"]
last_reviewed: "2026-10-25"
---

# Work out the NSW section 151Z repayment from a damages recovery

> From the compensation history and the damages heads the lawyer supplies, tabulate compensation paid by head and date, damages by head, and the repayment section 151Z would require in each scenario the lawyer specifies.…

Canonical page: https://ailawframework.com/practice/personal-injury-and-compensation/work-out-the-employer-s-recovery-from-a-third-party-s-damages-payout/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 | From the compensation history and the damages heads the lawyer supplies, tabulate compensation paid by head and date, damages by head, and the repayment section 151Z would require in each scenario the lawyer specifies. Do not settle the figure. |
| What the lawyer must review | A worker cannot keep both compensation and damages. The order of recovery changes the result Motor accident damages under the Motor Accident Injuries Act 2017 have a narrower repayment under section 151Z(1A) Future loss and future expenses recovered after the damages are received are not the repayment fund The lawyer advises the worker on the net outcome before settlement |
| Written for | New South Wales |
| Applies to | [Work out the employer’s recovery from a third party’s damages payout](https://ailawframework.com/practice/personal-injury-and-compensation/work-out-the-employer-s-recovery-from-a-third-party-s-damages-payout.md) |

## Checking plan

**Verify against sources**

The lawyer decides how section 151Z applies. The tool tables the heads and the scenarios the lawyer specifies.

- What the AI does: From the compensation history and the damages heads the lawyer supplies, tabulate compensation paid by head and date, damages by head, and the repayment section 151Z would require in each scenario the lawyer specifies. Do not settle the figure.
- What the lawyer does: Decide which subsection applies and the amount repayable, and advise on the net outcome.
- 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. Section 151Z(1)(a) says the worker may pursue both the stranger and the compensation payer, but cannot retain both damages and compensation.
2. If compensation is recovered first, section 151Z(1)(b) makes the worker liable to repay the compensation paid, and ends further compensation. Section 151Z(4) keeps that repayment out of damages for future loss of earnings or future expenses payable after the date of recovery.
3. If the damages are motor accident damages under Part 4 of the Motor Accident Injuries Act 2017, section 151Z(1A) leaves medical, hospital and rehabilitation compensation out of the repayment, and limits the repayment of permanent impairment and pain and suffering compensation to the non-economic loss damages.
4. Use section 151Z(2) only if the lawyer says the worker can sue both the employer and the stranger. Section 151Z(5) applies the section to a payment under an agreement, not only under an award.

## Notes

- The indemnity in section 151Z(1)(d) is limited to the amount of the damages. Section 151Z(1B) takes the section 151Z(1A) exclusions out of that indemnity as well.
- Settlement advice that uses health and wage figures stays in a firm-controlled tool.

## Practical guide

Jurisdiction: NSW workers compensation recovery under section 151Z of the Workers Compensation Act 1987

**Deliverable**: A head-by-head table of compensation paid, damages, and the repayment in each scenario the lawyer specifies.

**Inputs**

- The compensation payment history
- The damages heads and amounts the lawyer supplies
- The lawyer's statement of whether the damages are under Part 4 of the Motor Accident Injuries Act 2017

**Example**: Illustrative example: Compensation of weekly payments and treatment expenses has been paid, and the proposed damages are under the Motor Accident Injuries Act 2017. The table leaves the treatment expenses out of the repayment and shows the weekly payments as repayable. It does not deduct a contribution the lawyer has not specified.

**Stop and escalate when**

- The damages are not identified as motor accident damages or as other damages.
- The worker can sue the employer as well as the stranger and section 151Z(2) has not been considered.

Checked 2026-10-23.

## Sources

- [Workers Compensation Act 1987 (NSW) section 151Z](https://www5.austlii.edu.au/au/legis/nsw/consol_act/wca1987255/s151z.html) (checked 2026-10-23)
- [Motor Accident Injuries Act 2017 (NSW) section 6.14](https://classic.austlii.edu.au/au/legis/nsw/consol_act/maia2017245/s6.14.html) (checked 2026-10-23)

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