1.3.5 Calculate GST recovery amounts


1.3.5.1 Responsibility to calculate GST | 1.3.5.2 Calculate recovery for erroneous payments | 1.3.5.3 Calculate recovery for other recovery types


Agents must take into account GST when estimating and calculating recovery amounts.

Agents may be responsible for calculating recovery of GST for up to 12 out of 20 recovery types.

This section explains the amount of recovery applicable – net or gross of GST, the correct treatment of GST liability, ITC Input Tax Credit or DAM reversal and comments for each of the four relevant recovery types.

1.3.5.1 Responsibility to calculate GST

The following table shows who is responsible to calculate, request, record and bank recoveries across the WorkCover Scheme, including GST:

Recovery type code Calculate and request recovery (incl. GST) Record recovery amounts and banking
1, 2, 3, 4, 5, 8, 9, 12, 13, 14, 20, 23, 27, 28 WorkSafe WorkSafe
10, 11, 18 Agents WorkSafe
7, 16, 17, 24, 25 Panel firms/Agents/WorkSafe WorkSafe
6, 15, 19 Agents Agents
21, 22 WorkSafe WorkSafe
Codes Agents are responsible for
Code number Description
6 Erroneous overpayments such as overpayments of compensation to the worker, provider or the employer arising out of an error or mistake on the part of the WorkSafe and/or an Agent.
15 Recoveries where no entitlement exists.
19 Recoveries of claims fraud and associated costs.
20 Recoveries from a worker for compensation or damages paid /payable by interstate insurers or an interstate jurisdiction where the WorkSafe has paid compensation for the same employment related accident. These claims are to be referred to the WorkSafe’s Recoveries Team.

 

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1.3.5.2 Calculate recovery for erroneous payments

When calculating the recovery for erroneous payments, Agents need to identify the total gross amount to be recovered. Agents then need to break down the total gross amount into separate amounts for each payment type (where more than one payment type is the subject of recovery).

Finally, the GST applicable amount needs to be identified (where a non-settlement A lump sum payment that replaces an injured worker's right to ongoing weekly compensation. payment type is subject to recovery).

1.3.5.3 Calculate recovery for other recovery types

To calculate the recovery amount for recovery types 15 & 19 Agents must identify the gross amount for recovery. Once this has been identified, Agents must also determine the gross amount of:

  1. settlement payments.
  2. non-settlement payments.

Of the non-settlement payments identified in (2), determine the amount of those payments which is GST applicable.

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