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ARTICLE · 14 SEPTEMBER 2026

Neurological Injury - When Sleep Still Does Not Count

Recent Personal Injury Commission decisions have established a consistent framework for assessing sleep disorder claims in workers compensation matters, clarifying when insomnia and sleep disturbances qualify as independently assessable neurological impairments. This analysis examines the evolving jurisprudence and its practical implications for insurers defending permanent impairment claims.

AustraliaLitigation, Mediation & Arbitration

In our earlier article, we examined the decision in Lachlan Shire Council v Stanley and the important reminder it provided for employers and insurers in defending sleep-related permanent impairment assessments. The central proposition is clear: a worker cannot obtain a separate assessment for a sleep and arousal disorder unless the worker establishes a primary sleep disorder following a neurological injury, as required by clause 5.10 of the NSW Workers Compensation Guidelines for the Evaluation of Permanent Impairment (Guidelines).

A growing body of authority confirms the position.

Since Stanley, several further Personal Injury Commission decisions have reinforced and expanded this position. Far from being an isolated authority, there is now a growing and increasingly consistent body confirming three key principles:

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