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Information needed for assessment
Table 1
Item | Description |
1 | Does the settlement contain economic loss? The Deed of Release will state if the settlement is in respect of ‘pecuniary loss’ (economic loss). A TAC ‘Order of Compromise’ settlement will not contain the above clause. Confirm with the TAC whether the ‘Order of Compromise’ contains economic loss. |
2 | Did the accident occur in Victoria? The Deed of Release will state where the accident occurred. If the accident occurred outside Victoria, settlement of a claim falls under the jurisdiction of the State/Territory in which the accident occurred. |
3 | Periodic payments by the TAC Periodic payments paid by TAC are called Loss of Earnings benefits (LOE) or Loss of Earnings Capacity Benefits (LOEC). Confirm with TAC whether LOE or LOEC payments were made. |
4 | Linked workers compensation claim A TAC claim can sometimes be linked to a workers compensation claim. The workers compensation insurer may pay periodic payments and/or an impairment lump sum. Confirm with TAC whether there is a linked workers compensation and the compensation payer’s details. Confirm claim status details with the linked compensation payer. |
5 | Prior lump sums The TAC may have awarded non-economic loss lump sums for: - Impairment under section 47 of the Transport Accident Act 1986
- Pain and of suffering
- An ‘interim payment’ whilst the common law claim is being determined
Confirm with TAC whether any prior lump sums were paid. |
6 | Release of settlement If the TAC were not under notice, they will generally not seek a clearance and will release the lump sum. If it is unclear whether the settlement was released, confirm with TAC. |
TAC Waiver Periods
Table 2
Item | Age at date of accident | Waiver start date | Waiver end date |
Non-earner | 18 years and over | Date of accident | 18 months from the date of accident (minus one day) |
Non-earner Minor | Under 18 years | Date of accident | Day before 18th birthday |
TAC Waiver period examples
Table 3
Item | Example |
1 | Waiver period if aged 18 years and over at the time of the accident - Casey was involved in a transport accident in Victoria on 28 February 2019
- At the time of the accident, the TAC considered them to be a ‘Non-earner’
- They did not receive periodic compensation for this injury
- They received a lump sum compensation payment from the TAC
- They had a compensation preclusion period for the period 28 February 2019 to 01 January 2025
- During the preclusion period they received Disability Support Pension (DSP)
- A compensation debt was raised for the DSP received during the period 28 February 2019 to 01 January 2025, totalling $35,000
Any CAP paid to Casey for 18 months commencing from the date of accident is non-recoverable. This part of the debt can be waived under Section 1237AAD. Waiver period: - The period that can be waived is 28 February 2019 to 26 August 2020
- During the waiver period, the total DSP paid was $10,000
- This portion of debt is waived in a separate debt activity
- The existing debt amount of $35,000 is reduced by the waiver amount
- This leaves a recoverable debt amount of $25,000
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2 | Waiver period if aged under 18 years at the time of the accident - Jamie was involved in a transport accident in Victoria on 28 February 2019
- At the time of the accident, the TAC considered them to be a ‘Non-earner Minor’
- They did not receive periodic compensation for this injury
- They received a lump sum compensation payment from the TAC
- They had a compensation preclusion period from 28 February 2019 to 01 December 2019
- During the preclusion period, they received Youth Allowance (YAL)
- A compensation debt was raised for the YAL received during the period 28 February 2019 to 01 December 2019, totalling $8,000
Jamie reached 18 years of age on 02 March 2020. Any CAP paid to Jamie commencing from the date of the accident and up to the day before their 18th birthday is non-recoverable. This part of the debt can be waived under Section 1237AAD. Waiver period: - The period that can be waived is 28 February 2019 to 01 March 2020
- As the compensation debt covers the period 28 February 2019 to 01 December 2019, the whole debt amount of $8000 can be waived
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Waiver DOC template
As per Recording reasons for decisions, a decision DOC must include the following details:
- the decision itself
- the Act/Guide reference upon which it is based, and
- the reason for making the decision
The following text should be used to record the debt waiver and must be annotated within the existing TAC Compensation Lump Sum and Waiver DOC.
Table 4
Item | Description |
1 | Partial waiver of compensation charge Waiver due to special circumstances considered and applied to Debt. Legislation: 6.4.7 of the Guide to the Social Security Act Section 1237AAD of the Social Security Act 1991 TAC advised that no weekly compensation paid as customer was a Non-Earner or Non-Earner Minor when the accident occurred [DELETE WHICH IS NOT APPLICABLE]. The amount of Compensation Affected Payments (CAPs) received from the Date of Accident and up to the first 18 months/the customer’s 18th birthday [DELETE WHICH IS NOT APPLICABLE] is non-recoverable. Based on the above, delegate is satisfied that the requirements for this debt waiver provision have been met. The charge amount has been changed to exclude the non-recoverable portion. The portion of debt that is non-recoverable has been waived in a separate debt. Portion of debt waived: Debt ID: Amount waived: Period waived: DD/MM/YYYY to DD/MM/YYYY Payment Type: Calculated by: CMAR/PS TOOL/MULTICAL Portion of debt to be recovered: Debt ID: Recoverable debt amount: Recoverable debt period: Payment Type: Manual Notices sent to: TAC/Customer/Customer Sol/Copy to Insurer Sol Notices sent via Fax/CBOS: Yes/No If no, reason notices not sent via Fax/CBOS: [ENTER DETAILS] |
2 | Full waiver of compensation charge Waiver due to special circumstances considered and applied to Debt. Legislation: 6.4.7 of the Guide to the Social Security Act Section 1237AAD of the Social Security Act 1991 TAC advised that no weekly compensation paid as customer was a Non-Earner or Non-Earner Minor when the accident occurred [DELETE WHICH IS NOT APPLICABLE]. The amount of Compensation Affected Payments (CAPs) received from the Date of Accident and up to the first 18 months/the customer’s 18th birthday [DELETE WHICH IS NOT APPLICABLE] is non-recoverable. Based on the above, delegate is satisfied that the requirements for this debt waiver provision have been met. The compensation charge has been waived. Debt ID: Amount waived: Period waived: DD/MM/YYYY to DD/MM/YYYY Payment Type: Manual Notices sent to: TAC/Customer/Customer Sol/Copy to Insurer Sol Notices sent via Fax/CBOS: Yes/No If no, reason notices not sent via Fax/CBOS: [ENTER DETAILS] |
Outcome letters
Table 5
Outcome | Letter code and description | When to send |
Nil recovery to compensation payer | Q928: Letter to compensation payer - Nil charge to Compensation Payer | When the compensation payer has requested clearance |
Nil recovery to customer and future preclusion period | Q920: Letter to customer - Nil charge but future preclusion period | When customer has a future preclusion period |
Charge to compensation payer | Q924: Recovery notice - compensation Payer Q900: Copy of Recovery Notice - Customer Q901: Copy of Recovery notice - Solicitor | When charge is to be recovered from compensation payer |
Charge to the customer | Q905: Letter to customer - advice of charge and preclusion period | When charge is to be recovered from the customer |
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