Do I have to declare a compo payout?

[catherinemoses]

My DH was recently awarded a large compo payout for workplace induced sickness/injury.
It is quite a substansial amount and I am just wondering if I need to declare it to Clink and if it will affect our payments. We recieve FTB A and B and rent assistance.
TIA

[Muppity]

As far as I know - yes.

Often workers comp payments have an "income lost" component to them and Centrelink sometimes counts it as income. Also, depending on the size it also effects the assest tests.

I would ring them and ask the questions.

[briggsy's girl]

given it's ftba and RA only, the income test won't apply - what you need to do is contact the ATO and work out what portion is taxable, and that is what will apply to ftb purposes. you will, if it's a large payment, probably lose ftba and RA for the balance of this year, and may even find that you have to pay some of what you've received back. it will really depend on how the compensation is structured.

[catherinemoses]

Thanks ladies.
I called the people that the money came from and they said that it is not a taxable payment. I called CLink too and they said I only have to declare it if it is taxable. Does this sound right? I don't want to get in trouble!

[briggsy's girl]

if it's compensation for an injury, and doesnt replace income that should have been taxable, then it quite probably is - i would still contact them again, say you're concerned and would they mind getting you in contact with a compensation officer so that this can be confirmed - you may be asked to fax details through so that they can confirm for you whether it's going to impact ftb

[catherinemoses]

Thanks BG I'll do that.

[squidipa]

very interesting thread im subscribing and im gonna start my own thread