Compensation payments are treated differently under social Money or property promised to be handed over as a guarantee for repayment of a loan, or as a guarantee that a defendant will meet their bail conditions. law. In section 17(2) of the SS A written law made by parliament. Also called an ‘Act of parliament’, ‘statute’ or legislation., ‘compensation’ is defined for social security purposes. For a payment to be ‘compensation’ for social security purposes, the payment must include a component for economic loss. Centrelink examines settlements and decides whether this is the case. Otherwise, such payments are generally treated as ordinary income.
A person who receives compensation A document that sets out what a person wants to happen to their money and other property after they die. have their ‘compensation-affected payment’ affected (most major payments are compensation-affected), depending on whether they receive compensation in the form of a periodic payment, or as a lump sum settlement, or due to a An independent body that hears legal claims brought by parties and decides between them. Serious cases are heard by a judge and jury, or just a judge. Less-serious cases are heard by a magistrate. judgment.
A person who is receiving periodic payments of compensation for a loss of income will have their ‘compensation-affected payment’ reduced by the amount of those payments on a dollar-for-dollar basis.
Where a person recovers compensation in a lump sum, the person is precluded from receiving a social security payment for a period that is directly related to the amount of compensation or A court order for money to be paid to someone to compensate them for a loss suffered as a result of a civil wrong or breach of contract. For example, a person who caused a serious permanent injury to another person can be ordered by the court to pay damages that compensate the injured person for their loss of income from being unable to work. See also aggravated damages; compensatory damages; general damages; liquidated damages; nominal damages; special damages..
The amount that Centrelink is entitled to recover in either of these ways depends on a formula set out in the SS Act. This is a complex area and any specific queries should be taken to the A legal practitioner (lawyer) who sees clients and opens files to deal with their legal matters but usually does not appear in court. See also barrister. who is handling the damages or compensation claim.
Where a person has been receiving a compensation-affected payment and later recovers compensation covering the same period, the person is liable to repay the social security payments. Usually Centrelink will recover the social security money paid to a person from the employer or insurance company.
If Centrelink decides that there are special circumstances relating to the person receiving compensation, it can treat some or all of the compensation paid as not having been paid. This decreases the preclusion period or the amount to be repaid to Centrelink, or both.