Compensation payments and special circumstances decisions 117-04020000

Applying the normal Centrelink compensation provisions to a particular customer's situation may:

• have an unintended effect,
• lead to extreme hardship or
• creating an inequitable or unjust situation

Where such 'special circumstances' exist, Section 1184K allows the Compensation Recovery Team (CRT) to treat all or part of a compensation payment as:

• not having been made, or
• not liable to be paid

A combination of factors usually apply to each person. Apply the provisions in situations that are:

• unusual
• unforeseen or
• exceptional

A decision to apply the special circumstance provisions reduces part, or all, of a preclusion period. This may also reduce, or negate any associated compensation debt.

Special circumstance provisions are usually applied to lump sum compensation payments. However, they may also be applied to reduce all or part of periodic payments.

A new decision must be made if a customer:

• provides new information or has a change in circumstances, and
• requests consideration to reduce a compensation preclusion period or waive recovery of a debt due to special circumstances

Sometimes a decision has not been made or has no effect. For example, a claim has been submitted but a decision not yet made or a compensation preclusion period has not yet been applied. A customer cannot request an explanation or apply for a formal review of a decision that has not been made or that has no effect.

Customers who request a shorter preclusion period because of special circumstances must make a claim for a compensation affected payment (CAP) before the compensation preclusion period review can be considered.

A further claim is not needed if the customer's claim has already been cancelled or rejected within the previous 13 weeks because of the preclusion period.

Failing to obtain and assess the customer's claim for a CAP may cause a customer to miss out on payments. This may result in a claim of detriment due to defective administration. Higher bodies may decline to review decisions that do not involve a payment.

If a customer requests an explanation or wants to apply for a formal review of a decision that has not been made or that has no effect:

• Advise the customer that a decision must first be made, or be affecting, before they can request an explanation or apply for a formal review
• If a request for an explanation has already been recorded, see SME explanations, ARO referrals and implementing ARO decisions

If a customer does not agree with the compensation or special circumstances decision, they can request an explanation or apply for a formal review of the decision. See Initial contact about a decision and the review of decision process.

There are language and interpreter services available for customers who may need an:

• Immediate telephone interpreter
• Indigenous language interpreter

See Interpreter Services.