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Compensation clearances (CLK) 117-01040000

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This document outlines how compensation clearances are located, checked and recorded.

Compensation

A compensation clearance is a notification result of a compensation claim assessment conducted by the Compensation Recovery Team (CRT) and is used to determine the customer's payability for an income support payment.

Issue a Compensation and Damages (MOD C) when a customer:

  • notifies of a previously unidentified compensation incident, and
  • advise they received, are receiving or may be eligible to receive compensation

Customers who make an online claim for JobSeeker Payment (JSP), Youth Allowance (job seeker), Age Pension or Low Income Health Care Card (LIC) will be asked to provide their compensation information within their new claim.

Clearances are required for criminal injury compensation claims. The CRT must determine if those claims will be treated as compensation and provide a clearance. Payments made to victims of crime by victims’ compensation schemes established under Commonwealth, State or Territory laws are not compensation as defined by Social Security Law, however other payments such as restitution made by the criminals may be compensation.

When clearances are not needed

Clearances are not needed for compensatory payments, such as:

  • income protection policies attached to superannuation policies
  • payments made to ‘victims of crime’ by victims’ compensation schemes

See The effect of compensation on Social Security payments.

The Resources page contains links to the Online Forms site for the MOD C, Office Locator and Intranet link for more details on Compensation Recovery Teams.

Contents

Actioning a compensation clearance

Coding compensation and damages (Mod C) to request a clearance