If we issue a Recovery Notice, there are things you may need to tell us for compensation recovery.
When you need to get our approval
If we’ve sent a Preliminary Notice to a compensation payer, they’re required to seek our approval prior to both:
- the release of a lump sum
- arrears of periodic compensation.
We cannot provide approval until settlement has been reached by all parties.
We’ll only issue a Recovery Notice to a payer if the compensation recipient was receiving a Centrelink payment affected by compensation on the date of injury or thereafter.
To confirm if we have an interest, complete and return the relevant form:
Since 1 September 2025, pre-settlement medical expenses are no longer included in the assessment of compensation lump sums agreed at settlement.
Read more about how we treat lump sum compensation and how we treat periodic compensation.
When we send a lump sum Recovery Notice
A Recovery Notice requires the compensation payer to refund the amount stated in the notice to us. It may be served on a compensation payer if the compensation has not been released to the claimant.
If a Recovery Notice is received before the release of the compensation monies, the compensation payer is obligated to refund us the specified amount. They need to do this even if they’ve not received a Preliminary Notice.
If no Preliminary Notice has been received and the Recovery Notice is received after the release of the payments, then the compensation payer has not breached its requirements under the Social Security Act 1991.
Where a Preliminary Notice has been received and the funds are released prior to receiving our approval, the compensation payer is still liable to repay the amount specified in the Recovery Notice.
Sometimes we’ll issue a nil-recovery advice. We’ll do this if a third party has asked for written permission to pay the compensation to the client and there will be no recovery from the compensation payer.