6.1.4 Pay entitlements

6.1.4.1 Impact of taxation | 6.1.4.2 Centrelink payments | 6.1.4.3 Interest payable

If liability is accepted, the Agent or Self-Insurer must make payments on time to avoid financial penalties.

Medical and like expenses

The Agent or Self-Insurer must pay or reimburse reasonable costs for medical and like services upon receipt of a valid invoice or receipt.

See: Medical and like expenses | Employer Threshold

Lump sum

Within five business days of:

the Agent or Self-Insurer determining liability and the lump sum entitlement/s and/or
being advised of the Court's determination in writing

the Agent or Self-Insurer must pay as applicable:

dependency lump sum payable to the dependant/s
grief and loss lump sum payable to the close family member In relation to a work-related death, a ‘close family member’ of a worker means a person who, at the time of the worker’s death: • was a partner, parent, guardian, step-parent, grandparent, sibling or step-sibling of the worker or a person to whom the worker was a parent, step-parent or guardian, and • had a genuine personal relationship with the worker./s
interest at the prescribed rate Interest at the prescribed rate means interest at the rate fixed for the time being under section 2 of the Penalty Interest Rates Act 1983 under the legislation on:
- the dependency lump sum
- grief and loss lump sum.

See: Interest payable

Payments to a child under 18 years of age

Payment of lump sums to a child under 18 must be paid to a trustee appointed by the court.

Weekly pension

Within 14 calendar days of:

the Agent or Self-Insurer determining the PIAWE rate and liability for dependency and/or
being advised of the court's determination in writing

the Agent or Self-Insurer must pay all weekly pensions up to the most recent or relevant payment period (whichever is applicable).

Note: Tax must be deducted from the pension where applicable.

See: Centrelink payments | Entitlements

In order to be paid correctly, each dependant must provide:

a Tax File Number Declaration Form
bank account details (via the Electronic Funds Transfer application forms
proof of full-time Full-time worker means a worker who is employed for at least the normal number of hours fixed in any industrial award applicable to the worker or if there is no applicable award the prescribed number of hours studies, full-time apprenticeship or living with a disability (as defined) for a child over the age of 16 years.

Payments to a child under 18 years of age

Pension payments to a child under the age of 18 years are paid to a trustee for the child.

AC s92C

AC s92A

WIRC s242

6.1.4.1 Impact of taxation

Impact of lump sum payment

Dependency lump sum and grief and loss lump sum payments are not subject to taxation laws and as such no deductions are made.

Impact of weekly pension

Weekly pensions are treated as income and are therefore subject to Australian taxation laws.

Tax must be deducted before weekly pension payments are made.

Note: penalty interest Penalty interest awarded when there is a delay in the payment of compensation. that results from late payment of weekly pensions do not attract tax.

6.1.4.2 Centrelink payments

Applicants can claim Centrelink payments while they are waiting for their entitlements to be determined or while they receive death and dependency entitlements.

The Agent or Self-insurer should advise dependants to contact the Family Assistance Office (telephone 13 61 50), for advice on any potential Centrelink entitlement.

Alternatively, to make an appointment with a Centrelink social worker social worker means a person accredited with the Australian Association of Social Work and registered with WorkSafe to provide social work services (other than as a student) within the Customer Service Centre - telephone 13 10 21.

Impact of lump sum payment

A lump sum payment for the death of a worker is an exempt payment under the Social Security Act 1991 (Cth).

No Centrelink deductions are made from the payment.

Centrelink may regard a lump sum payment as an asset, which may impact a person's ongoing Centrelink entitlements.

Impact of weekly pension

Dependency pension payments are exempt under the Social Security Act 1991 (Cth).

If a dependant is in receipt of a Centrelink payment, the dependant must advise Centrelink of the income received from weekly pension payments. Weekly pension payments are considered income rather than earnings and Centrelink will determine how the payments are treated. A debt incurred will result in recovery by Centrelink directly from the dependant.

There is no requirement to notify Centrelink or seek that Centrelink issue a Deed of Release or Recovery Notice A Recovery Notice is issued by Centrelink to WorkSafe/Agent once Centrelink have determined the amount recoverable. The recovery notice specifies the amount that Centrelink is seeking to recover and the period that the recoverable amount relates to. A recovery notice legally prohibits WorkSafe/Agent from making any payments to the worker unless they have paid to the Commonwealth the amount specified in the notice. about dependency pension payments either before or after the payments are made.

Should Centrelink issue a Preliminary Notice A preliminary notice is issued by Centrelink indicating that they have an interest in the worker referred to in the notice and may wish to recover an amount equal to all or part of the amount payable. This notice places an obligation on WorkSafe/Agent to notify Centrelink prior to releasing any weekly payments to the worker. WorkSafe/Agent is to advise Centrelink within seven calendar days of accepting liability for weekly compensation or receiving the notice if liability has been already been accepted, whichever is the later. for a dependant, the Agent should telephone Centrelink to discuss the matter and seek to have the notice withdrawn.

Note: Whilst there is no obligation to notify Centrelink about dependency pension payments, Agents are obliged to comply with Garnishee Notice A Garnishee Notice is issued to the WorkSafe/Agent where a worker has a debt to the Commonwealth (other than a debt arising directly from the worker’s compensation payments) and advises the amount of money to be remitted to Centrelink on behalf of a worker. issued about a dependant. Garnishee The holding back of a part of compensation from a worker who is indebted to the Commonwealth. Notices may be issued where a dependant has an existing Centrelink debt.

See: Garnishee notices

Centrelink may regard ongoing weekly pensions as income. This may reduce a dependant’s ongoing Centrelink eligibility for other entitlements or affect their partner’s entitlements.

Centrelink garnishee notice

Centrelink may issue a Garnishee Notice to a dependent partner, orphan or child.

The same rules apply to a Garnishee Notice issued for a dependant as one issued for an injured worker.

See: Garnishee notices.

Next | Back to top

6.1.4.3 Interest payable

Agent or Self-insurer must pay interest in the following circumstances:

Lump sum

Interest at the prescribed amount is payable on:

the dependency lump sum to the dependant (for the period beginning on the date the primary death claim was lodged and ending on the date of the Agent, self-insurer or court determination)
grief and loss lump sum to the family member In relation to a work-related: • severe injury for which immediate inpatient treatment in hospital is received • eligible progressive disease • fatal injury a ‘family member’ means a partner, parent, grandparent, sibling or child of the worker or of the worker's partner. Note: this definition is not the same as a close family member. (for the period beginning on the date the claim was lodged and ending on the date of the Agent, self-insurer or court determination).

Late payment of weekly pension

Interest at the prescribed amount is payable if the Agent or Self-insurer commences payment of the weekly pension more than 14 calendar days after the determination, being the latter of the date:

of the Court's determination (if applicable)
that dependency is established
the PIAWE rate is agreed by the Agent and the dependent’s legal representative.

Interest is paid at the prescribed rate from the date of determination until the day before the payment is drawn.

Note: Penalty interest may be awarded if there is a delay in the payment of compensation and/or interest.

See: Penalty interest rates

Payment of interest to dependants

Agents must process interest payments as 'Agent liable' payment.

Agents must keep a record of interest payments that fall into this category and forward details in a spreadsheet to WorkSafe at the end of each month.

Penalty interest

If the court is of the opinion that the Agent or Self-insurer unreasonably delayed payment of death and dependency compensation, they may direct the amount of compensation be increased by an amount the court specifies

The amount of the increase must not exceed:

in the case of lump sum compensation (dependency and/or grief and loss), one-tenth of the total amount of the compensation; or
in the case of weekly pensions, one-tenth of the total amount of the weekly pensions accrued due at the date of the assessment of compensation.

Tax on interest

Penalty interest that results from late payment of weekly pension do not attract tax.

Next | Back to top