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.

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: