Data obtained by this masthead shows Transport for NSW approved just 14 out of 1070 claims received in 2025-26, a success rate of 1.3 percent. The total compensation paid to motorists over the financial year was $35,875.13.
The figures reflect a longer-term pattern, with Transport for NSW approving 270 of 6189 vehicle damage claims across the past five financial years – a rejection rate of 96 percent. The data includes claims made following major weather events, including the 2022 floods, which caused widespread damage to the state’s road network.
Motoring groups have attributed the high rejection rate to laws protecting public authorities from liability unless a motorist can establish negligence. That means drivers must not only demonstrate that the relevant authority was aware of a road hazard but failed to address it within a reasonable time frame relative to available resources.
NRMA spokesman Peter Khoury said the compensation claim process can be challenging for many motorists to navigate. “A 98 per cent rejection rate is extremely high and it shows that the system needs to be reviewed so that motorists have a better understanding of whether they will be successful,” he said.
The data comes against a backdrop of deteriorating roads across the state, with NRMA figures showing it responded to 151,506 wheel and tyre callouts across NSW in 2025-26, up from 149,754 the previous year. Blacktown recorded the highest overall number of callouts during the period, with 7992, followed by the Central Coast with 7062, Canterbury-Bankstown with 6207, and the northern beaches and Parramatta with 5499 each.
“In some cases, the pothole damage is so severe to the vehicle that tyres can’t simply be fixed or replaced on the side of the road and need to be towed,” Khoury said. He attributed part of the increase in callouts to population growth and development putting pressure on infrastructure in outer suburban areas.