Under social security law, compensation is defined as any payment for personal injury, illness, or disease that replaces lost income or earning capacity. This includes payments from within Australia or from overseas and applies to periodical payments as well as to lump sums.
Compensation can be paid for:
- a work related illness
- injuries from a car accident
- injuries caused by slips and trips
- any other injury that is due to the negligence or fault of another person
- payments under a sickness or accident policy that are reduced (offset) because you received payments from us
Effect on your Centrelink payments
Most Centrelink payments are affected by compensation because Centrelink payments are calculated on your income. If you or your partner are receiving Centrelink payments a compensation claim could affect the amount you or your partner are entitled to receive.
This includes a range of other payments made to people getting income support. Depending on your circumstances, past payments may also need to be repaid.
If you have an injury or illness that is the subject of a compensation claim, payments and benefits you receive from Centrelink may be affected. To work out how a proposed lump sum or continuing compensation payment may affect your payments, you or your legal adviser should access the Online Compensation Estimator.
Compensation Recovery Team
If you have further questions after using the online estimator, you can contact the Compensation Recovery Team in your state.
They can answer questions about:
- how a proposed lump sum or continuing compensation payment may affect your Centrelink payments
- whether you need to repay money to us as a result of overpayment after receiving a compensation payment
- whether your compensation payment will stop you from receiving future Centrelink payments and, if so, the period in which this applies
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- download and complete the Compensation and damages form (MOD C). It is used to either calculate your rate of payment or to review your entitlement.
Compensation review and appeal rights
If you think a decision we made is wrong, you have the right to ask us to look at it again. This will not cost you anything and is easy to do. Read more about reviews and appeals.
Information for legal advisers and insurers
Solicitors and insurers can get more information on compensation, including forms, publications and legislation links.