6.1.2.10 Reviews - Compensation

Summary

If a person, or their partner (1.1.P.85), is expected to receive or starts to receive compensation (1.1.C.240), or a variation in the rate of compensation, then a review will be conducted. It is also important that the partner of the compensation recipient is reviewed as compensation can effect a partner's payment. This topic contains information on reviews of compensation. This topic explains the following:

  • details needed on grant or variation of compensation,
  • review of periodic compensation adjustment, and
  • reviews - changes in compensation payments.

Policy reference: SS Guide 4.13 Compensation, 6.1.1.10 General Provisions for Income & Assets Reviews

Details needed on grant or variation of compensation

If a person has compensation granted or their rate of compensation varies, a delegate MUST obtain details of the:

  • current rate of compensation paid to:
    • the compensation recipient, AND
    • the partner, AND
    • each dependent child (1.1.D.70) AND
  • the date:
    • of the first payment of compensation, OR
    • that payment at the new rate began.

ALL details MUST be verified by obtaining documentation from the:

  • compensation recipient, OR
  • the compensation payer/insurer.

Policy reference: SS Guide 2.2 Verification

Review of periodic compensation adjustment

Compensation payments are usually adjusted periodically. A date for reviewing the next adjustment should be noted on the system for when the increase is likely to occur.

Example: CPI increases or reduction in compensation rates due to length of time on compensation payments.

Reviews - changes in compensation payments

The following table shows the review treatment of various changes to a compensation recipient's compensation payments.

If… Then…
lump sum and arrears payments are made,
  • these amounts are NOT treated as income, UNLESS the amount is invested. In this case, income is deemed on the amount invested, AND
  • any part of the lump sum that is retained, or converted into another asset, is assessed as an asset.
compensation payments cease,
  • establish the reasons for cessation, AND
  • obtain details of any lump sum payments made, AND
  • assess the impact under compensation provisions.
compensation ceases because a DSP compensation recipient is considered fit for work,
  • organise a medical examination, AND
  • review entitlement in light of the medical evidence.

Act reference: SSAct section 8(1)-'income'

Policy reference: SS Guide 4.13 Compensation

Last reviewed: 7 November 2016