On 12 November 1981, the then Attorney General of New South Wales, the Hon F J Walker, QC, MP, made the following reference to the Commission:

To inquire into, report on and make recommendations concerning the extent to which compensation should be payable in respect of death or personal injury and in particular, without affecting the generality of the foregoing, to consider

(a) whether “no-fault compensation” should be payable in respect of death or personal injury suffered by any person through the use of a motor vehicle or other means of transport;

(b) whether “no-fault compensation” should be payable in respect of death or injury suffered by any person in circumstances other than the use of a motor vehicle or other means of transport;

(c) whether a “no-fault compensation” scheme or schemes should be introduced in New South Wales and if so, to consider further the nature and scope of any such scheme including

• the benefits to be provided;
• the basis on which claims should be determined;
• the means of financing the scheme;
• the manner in which the scheme is to be administered;
• the relationship between the benefits under the scheme and other forms of assistance or entitlements, whether provided under legislation or otherwise;

(d) whether any “no-fault compensation” scheme should be in substitution for all or any rights to compensation under existing law;

(e) whether the principles and practices relating to compensation for death or personal injury under

• workers' compensation legislation;
• other legislation;
• the tort or common law system;

should be modified and, if so, in what way:

(f) any matter incidental to the above including transitional arrangements for the implementation of recommendations.

For the purpose of this reference, “personal injury” includes pre-natal injury, illness resulting from injury and occupational disease.