How CTP works in Australia: a guide for each state and territory

CTP insurance exists to help to protect drivers from the financial impact of a motor vehicle accident that causes injury or death to another person. 

This means that it helps cover the cost of things like medical care, ongoing treatment and loss of income that can emerge as a result of being in a motor vehicle accident. If someone is killed, CTP may also cover compensation to the deceased person’s relatives.  

But here’s where it gets a little tricky.  

The scheme and legislation for how CTP works differs across the nation. Some schemes are handled by a statutory body, while others are managed by licensed insurers. Some are fault-based insurance schemes, while others are mixed or no-fault. It all depends on which state or territory you live in.  

Let’s dive in. 

CTP in NSW is also referred to as Green Slip insurance. You need to have CTP insurance in order to register your car. It can be purchased from a licensed insurer, like NRMA Insurance, and you can choose between a 12-month insurance policy or a 6-month insurance policy. 

Type of scheme: covers all drivers regardless of fault 

Where to go for more information: SIRA - Green Slips

In February 2020, the ACT swapped out CTP for MAI — the Motor Accident Injuries Scheme. The main change was that the old scheme only covered the third party (other people) who got injured, whereas the new scheme allows everyone who is injured to receive entitlements. This means injured persons may be able to receive treatment, care and lost income benefits for up to 5 years, regardless of who was at fault. Nice move, Canberrans!  

Type of scheme: covers all drivers regardless of fault 

Where to go for more information: Motor Accident Injuries Commission

For CTP in South Australia, you pay for CTP at the same time you register your motor vehicle. You have a choice of where you get your insurance from, allowing you to shop around for the service and price that best suit your needs, but all insurers offer the same policy of insurance.  

Type of scheme: only covers the third party 

Where to go for more information: CTP Insurance Regulator

Things in the sunny state work similarly to South Australia. CTP insurance is paid for at the same time you pay for your vehicle registration, and you’ve got options when it comes to who insures you. The Motor Accident Insurance Commission (MAIC) regulates and monitors the scheme. In Queensland, the at-fault driver isn’t covered by CTP. 

Type of scheme: only covers the third party 

Where to go for more information: Motor Accident Insurance Commission  

Out west, there is something called Motor Injury Insurance (MII). When you pay for your car registration, you also pay for your motor injury insurance, which includes CTP and the Catastrophic Injuries Support scheme (CIS). The CIS scheme is a no-fault scheme, which means support is given regardless of who was at fault (provided all other eligibility criteria is met). Catastrophic injuries include things like spinal cord injuries, amputations, traumatic brain injuries, severe burns and blindness. 

Type of scheme: mixed 

Where to go for more information: Motor Injury Insurance

Northern Territory road users have the Motor Accidents Compensation Scheme, or MAC for short. It covers all road users and like Western Australia, is included as part of your vehicle registration fee. 

An interesting point about the MAC scheme is that Territorians are also covered interstate if an NT registered vehicle is involved in an accident (regardless of who is at fault). 

Type of scheme: covers all drivers regardless of fault

Where to go for more information: Major Accidents Compensation Scheme

Like Territorians and Western Australians, Victorians don’t need to worry about comparing insurers for CTP. It’s all sorted with the Transport Accident Charge, which is a fee that’s automatically included in registration renewals that get sent by VicRoads. (VicRoads is the body that operates registration and licensing services on behalf of the Victorian State Government). 

Type of scheme: covers all drivers regardless of fault 

Where to go for more information: Transport Accident Commission

In Tassie, CTP is also included as part of the vehicle registration and is administered by the Major Accidents Insurance Board (MAIB). This means there’s no need to shop around and find an insurer, as you pay the premium directly when you renew your rego. In Tasmania, all injured persons are entitled to receive CTP insurance benefits, regardless of who is at fault. 

Type of scheme: covers all drivers regardless of fault 

Where to go for more information: Motor Accidents Insurance Board