Compensation Preclusion Period 117-01010060

Compensation is any payment made to a person to compensate them for their personal injury in respect of economic loss. Compensation preclusion periods apply to most social security payments.

Refer all preclusion calculations to the Compensation Recovery Team (CRT).

Compensation recipients cannot receive a social security Compensation Affected Payment (CAP) during a preclusion period.

Any CAPs paid to the compensation recipient during the preclusion period becomes a recoverable compensation debt. This includes any supplementary payments paid with the CAP.

Preclusion periods can be varied if a customer has special circumstances. The CRT will:

• determine reasons for special circumstances, and
• decide on any variation as a result

Preclusion periods do not apply to ABSTUDY.

Preclusion periods do not apply to supplementary entitlements such as:

• Low Income Earners Health Care Card (LIC)
• Commonwealth Seniors Health Care Card (CSHC)
• Mobility Allowance (MOB)
• Carer Allowance (CA)

Payments can be made to care for children if the person is eligible for:

• Child Care Subsidy (CCS)
• Family Tax Benefit (FTB) Part A
• FTB Part B

While preclusion periods do not apply to the above payments, a compensation payment can still affect them.

A preclusion period does not stop the compensation recipient’s partner from receiving an income support payment. The lump sum compensation payment may be assessed under the income and assets test.

Preclusion periods still apply to both the customer and their partner if:

• the compensation was paid before 20 March 1997, and
• they were partnered at the time