Special circumstances provisions for customers receiving compensation payments 117-04020010

Where possible, customers should provide evidence in support of their special circumstances claim. This evidence can include:

• Statements for all financial investments, from the time they received the lump sum to the present date. This includes closed accounts
• If the customer has made voluntary contributions to a superannuation fund after receiving the compensation lump sum, a letter from the superannuation provider stating that they have rejected the customer’s claim for early release of superannuation
• Evidence of action taken regarding incorrect or insufficient legal advice
• Medical evidence for unforeseen medical expenses and ill health
• Receipts for expenditure of the lump sum
• Social worker or other reports showing the presence of family and domestic violence, financial abuse or coercion
• Other evidence such as property settlement, impact of natural disaster, collapse of a business, etc

The delegate must decide:

• how to apply the special circumstances provisions
• what evidence may be appropriate
• each case on its own merits

The delegate can treat a part of the compensation payment as not having been made. This may be relevant where they can identify a specific amount as having impacted the customer.

Example:

The customer has incurred excessive legal costs in the settling of the claim. In this case, the delegate can:

• deduct the amount incurred for legal costs from the original compensation lump sum, and
• apply the 50% rule to the amended lump sum amount, and recalculate the preclusion period

The delegate can reduce the duration of the preclusion period, so that it ends on an earlier date.

This may be relevant where there has been a combination of factors, and it is not possible to for the delegate to determine any specific amount to disregard.

Example:

Due to factors beyond the customer’s control, the customer has depleted their available funds. This has placed them in financial hardship, and they have claimed a CAP.

The delegate changes the end date of the preclusion period to the day before lodgement of the CAP, or another date where appropriate.

Compensation Recovery Statement of Financial Circumstances Form

Request Appeals Policy and Program advice

Notice to prepare a Refund Account (SF030)

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