S27. Notification and recovery of Centrelink benefits from lump sum payments

Commencement date: 21 October 2019

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

Principle

The implications of lump sum payments for Centrelink benefits, including possible repayments to Centrelink or temporary preclusion from Centrelink benefits, will be proactively managed to minimise impacts on workers.

ExpectationsBenchmarks
S27.1

Insurers are to provide appropriate documentation to Centrelink when:

  • settlement occurs for commutation or damages matters or other matters settled in the Workers Compensation Commission, and
  • in the case of workers whose entitlements have been affected by delays or reconsideration of entitlements, outstanding amounts owed to the worker are calculated by the insurer.

Information provided to Centrelink within five working days after the relevant event

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.

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