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Appendix 1: Context and relevant provisions - Standard 27 - Notification and recovery of Centrelink benefits from lump sum payments

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Standard 27 - Notification and recovery of Centrelink benefits from lump sum payments

Prompt advice to Centrelink and correct attribution of lump sum payments helps insurers make prompt payment of entitlements. This reduces the risk of a worker becoming inadvertently subject to recovery action from Centrelink.

An insurer is required to notify Centrelink where lump sum workers compensation payments of weekly benefits made to workers may include amounts repayable to Centrelink, or result in a preclusion period for access to Centrelink benefits. Under Commonwealth law insurers are required to notify Centrelink before paying lump sum compensation payments of weekly benefits, and pay any amounts payable to the Commonwealth.

Insurers are also required to notify Centrelink immediately where a preclusion period from Centrelink entitlements may apply.

Note: There is no requirement to advise Centrelink of lump sum payments for permanent impairment.