Special circumstances provisions for customers receiving compensation payments 117-04020010

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

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

Where special circumstances exist, Section 1184k of the Social Security Act 1991 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 a customer.

Apply the provisions in situations that are unusual, unforeseen, or exceptional.

Consider each customer’s situation as a whole. Judge each case on its merits.

The CRT must decide whether special circumstances can be applied 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

The decision to apply special circumstances under s1184K must be made by an APS 5 or above when reducing part or all of a preclusion period and/or debt.

Do not apply special circumstances if the:

• person or their partner's only reason for receiving a Compensation Affected Payment (CAP) was different from the reason the compensation was paid
• person does not agree with the legislation. For example, they consider direct deductions for partners to be harsh. This is contrary to the intention of Parliament and is illegal

The Compensation Recovery Team (CRT) must decide whether special circumstances can be applied 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

This is a new decision based on the customer’s current circumstances and will be subject to normal review and appeal processes.

If a person does not understand or does not agree with a 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.