Using Modifiers

Modifiers allow you to adjust earnings data for specific financial year ranges, while the impairment estimate and Loss Line help you model partial earning capacity. Together, these tools let you build more nuanced and realistic economic loss analyses.

Modifiers

A modifier increases or decreases the gross weekly earnings for a dataset over a specific period. You might use modifiers to account for:

• A promotion or pay rise the claimant was due to receive
• A period of reduced hours or a break from the workforce that was unrelated to the injury
• Known changes to industry earnings not reflected in the AWE data
• Overtime or penalty rates the claimant would have earned

Adding a Modifier

1. Select the relevant dataset (Claimant or Comparison) from the Dataset dropdown in the right-hand panel
2. Scroll to the Modifiers section and click Add Modifier
3. A new modifier card appears -- expand it to configure:
   • For Period -- set the financial year (e.g. 2010) or range of financial years the modifier applies to
   • Increase By -- choose Dollar or Percentage
   • Value -- the dollar amount or percentage to adjust by. For example, set +20% to model a promotion, or a negative value to model a period of reduced earnings
   • Comments -- free-text notes explaining the rationale for this modifier (e.g. "Promotion to Senior Role" or "Part-time arrangement 2015-2017")

Modifier Options

Each modifier provides additional controls:

• Enable/disable -- toggle the modifier on or off without deleting it, which is useful for comparing scenarios
• Rename -- give the modifier a descriptive label (e.g. "Promotion to Senior Role" or "Part-time arrangement")
• Loss Line to ignore this Modifier -- available on Comparison modifiers only. When enabled, the Loss Line calculation will not include this modifier's adjustment. This is useful when a modifier reflects a specific circumstance (like a promotion) that should appear in the comparison but not affect the impairment-based Loss Line
• Add as Note on Graph -- places a visible annotation on the chart for the modifier's period, with the annotation label displayed. This is useful for marking key events like promotions, career changes, or workforce breaks directly on the chart

Pure Annotations (Labels Without Data Modification)

In addition to modifier-based annotations, you can add pure annotation labels that mark a point on the chart without changing any earnings data. This is useful for marking significant events like the date of injury.

For example, you might add an "Injury" annotation at the 2004/05 financial year to clearly mark when the injury occurred on the chart. The annotation appears as a label on the graph but does not alter any earnings figures.

To add a pure annotation, use the annotation controls in the right-hand panel. Set the financial year and enter a label (e.g. "Injury"), and it will appear on the chart.

The Impairment Estimate

The Impairment Estimate section in the Economic Loss Calculations area shows the empirical impairment derived from the data -- the percentage by which the claimant's actual earnings fall below the comparison earnings across the loss period. Claim Cal calculates this automatically from the data, giving you a data-driven starting point for assessing the claimant's impairment of earning capacity.

The system shows both the Median Impairment and Average Impairment percentages:

• Median Impairment -- the median percentage difference between comparison and claimant earnings across all financial years in the loss period
• Average Impairment -- the mean percentage difference

These reference values help guide your impairment input. In practice, you may start with the empirical figure and adjust it based on clinical evidence, vocational assessments, or the specific circumstances of the claim.

The Loss Line

The Loss Line (shown as a red dashed line on the chart) represents what the claimant could be expected to earn given a specified level of impairment. It is calculated by reducing the comparison earnings by the impairment percentage.

For example, if comparison earnings are $100,000/year and you set impairment at 19%, the Loss Line value is $81,000/year.

Why Use the Loss Line

The straightforward Comparison v Claimant calculation captures all differences between the two earnings trajectories -- but not all of those differences are necessarily caused by the injury. The claimant's earnings may fluctuate for reasons unrelated to the injury (changing jobs, taking leave, market conditions). The Loss Line smooths out these non-injury-related fluctuations by applying a consistent impairment percentage to the comparison earnings, giving a more stable and defensible measure of loss.

How to Use the Loss Line

1. Review the Median Impairment and Average Impairment values shown by Claim Cal in the Impairment Estimate section
2. Turn on the Loss Line toggle -- the red dashed line appears on the chart
3. Enter an Impairment % -- you can start with the empirical figure and adjust from there. For example, you might try 15% initially, then increase to 19% to see how it affects the results

The Loss Line has an important built-in safeguard: if the claimant's actual earnings exceed the Loss Line value for any financial year, the Loss Line value for that year equals the claimant's earnings. This prevents the analysis from showing overcompensation -- the claimant should never be compensated for loss in years where they actually earned more than the Loss Line would suggest.

Understanding the Results

The Economic Loss Calculations section shows two sets of results:

• Comparison v Claimant -- the simple difference between comparison and claimant earnings. This represents the raw economic loss
• Comparison v Loss Line -- the difference between comparison and Loss Line earnings, accounting for the specified impairment percentage

Both sets show Total Loss, Past Loss, Future Loss, and Future Loss Average per Week for Income (Gross), Income (Net), and Superannuation. If a settlement/judgement date is set, the past/future split is calculated relative to that date.

Next Steps

Learn how to read the chart and export it in The Chart and Visual Analysis.