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Periodic compensation payments 117-03000000

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This document outlines how payments of periodic compensation are treated, the recording of these payments and the actions required when customers receive a lump sum payment for arrears of periodic compensation.

Assessment of compensation payments

Treat these payments as either:

  • a direct deduction (that is, dollar for dollar) or
  • as ordinary income

Treat the excess over the customer's maximum basic rate as ordinary income for the partner.

Arrears of compensation paid

When an arrears payment of periodic compensation is made any compensation affected payment (CAP) that have been paid will need to be repaid.

A recovery notice will be sent to:

  • the compensation payer, or
  • letters of debt to the customer and/or their partner

Contents

Treatment of periodic compensation payments (CLK)

Periodic compensation arrears charges (CLK)

Related links

Lump sum compensation payments (CLK)

Special circumstance reviews of compensation payments under Section 1184K (CLK)

Treatment of compensation payments for ABSTUDY