Compensation recovery

If you receive a lump sum compensation payment, it may affect your ability to claim an income support payment from the Centrelink program. You may also have to pay back any Medicare program benefits, nursing home benefits and residential care subsidies paid in relation to an injury or illness that you receive compensation for.

Centrelink Compensation Recovery Teams

Centrelink has a free compensation advisory service provided by the Compensation Recovery Team in each state. Solicitors, other professionals and injured people can use this service to get advice about the effect a lump sum compensation payment will have on their Centrelink payments.

Medicare Compensation Recovery Program

When you suffer an injury or illness, you are usually entitled to Medicare benefits, nursing home benefits and residential care subsidies. When you claim and receive compensation for an injury or illness, however, the payment you receive should cover the full cost of your treatment. 

If you receive Medicare benefits, nursing home benefits and residential care subsidies as well as a compensation payment, this is considered to be double dipping.

Medicare Compensation Recovery Program ensures that for any benefits or subsidies paid for an injury or illness that you also receive a compensation payment of $5000 or more, is paid back to the Australian Government.