ON 16 DECEMBER 1981, the High Court of Australia delivered Todorovic v Waller [1981] HCA 72; (1981) 150 CLR 402 (16 December 1981).

http://www.austlii.edu.au/au/cases/cth/HCA/1981/72.html

The High Court ruled that a discount rate be applied to the assessment of lump sum damages for personal injuries so that the present value of future economic loss be discounted by 3% to allow for inflation, tax and changes in wages.

Subsequent legislation has increased the rate to 5% in most Australian jurisdictions.

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