The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

1.1.C.50 Compensation


Compensation is a payment that is made wholly or partly in respect of lost earnings or lost capacity to earn, whether paid as a lump sum or periodic payments, either within or outside Australia (1.1.A.120).

Compensation is not identified separately by the FA income test. Any taxable component of a compensation amount is included in the individual's (1.1.I.90) taxable income (1.1.T.20) and is therefore assessable for FA purposes. Non-taxable compensation is not assessed under the FA income test.

Act reference: SSAct section 17(2) Compensation

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