3.1.9.10 Compensation & Payability

Introduction

This topic contains general information on the payability of a CAP when the person or their partner has, or may have, suffered an economic loss due to a compensable event as a result of a personal injury.

Payability of a CAP

A CAP (1.1.C.250) may not be payable to a person if they, or their partner:

  • have a potential or actual compensation entitlement, and
  • do not take reasonable action to obtain that compensation, OR
  • have received compensation, and
  • they are serving a compensation preclusion period (1.1.C.260).

Explanation: It is a fundamental principle of the social security system that people who are unable to work because of a compensable injury do not receive income support from both the social security and compensation systems for the same period of time. These rules are designed to ensure that people who find themselves in this situation receive income support from those with the primary responsibility to provide the support, i.e. statutory compensation schemes and insurers.

Act reference: SSAct section 17 Compensation recovery definitions, Part 3.14 Compensation recovery

Policy reference: SS Guide 3.1.9.20 Requirements to Pursue & Obtain Compensation, 4.13 Compensation, 6.4 Compensation Recovery, 3.1.9 Compensation Provisions

Last reviewed: 6 February 2017