Need for reform of discount rates currently in operation in NSW
In late November last year, the Australian Lawyers Alliance (ALA) made a compelling submission to the NSW
Attorney-General, The Hon Mark Speakman MP.
The submission outlines the systemic under-compensation in personal injury claims in negligence which particularly affects the most seriously injured and the catastrophically injured in particular.
The money for their care will necessarily run out decades too early.
No rationale has been provided for the high 5% discount rate inflicted and the Ipp Report and the unanimous all-party
Legislative Council General Purpose Standing Committee No 1 Report of December 2005 both recommended the 3% discount rate. In the UK the rate of discount is presently a quarter of a percent given the low returns on safe investments.
Urgent reform is required by way of amendment to the Civil Liability Act.
Most of the solicitors at Walker Law Group hold memberships with the ALA.