Injured Workers Support Network

Workers Compensation Handbook 2016

Chapter 9

Centrelink & Workers Compensation

Under social security law, compensation is defined as any payment for personal injury, illness, or disease that replaces lost income or earning capacity. This includes payments from within Australia or from overseas and applies to periodical payments as well as to lump sums.

If an injured worker is contemplating a lump sum (either commutation or through a damages claim) we recommend they have a chat with a financial counsellor first.

If you are receiving workers compensation weekly payments or have received a lump sum this will affect how much you can claim through Centrelink entitlements.

Centrelink sees workers compensation payments as your income

Centrelink has a Compensation Recovery team you can call to help you work out what your Centrelink payments might be:

Call them on: 1800 777 653

You can try Centrelink’s online compensation estimator. http://www.humanservices.gov.au/customer/enablers/centrelink/compensation-recovery/compensation-estimator

An injured worker can also make an appointment with a Centrelink office.

Call the Welfare Rights Centre on 1800 226 028 for independent advice on Centrelink entitlements.