How compensation affects payments

Compensation can affect your Centrelink payments. Some similar types of payments can affect you too.

There are different types of compensation or payments made under schemes or benefits that can affect payments you get from us.

Compensation payments

Compensation payments can affect payments you get from us. These include all the following:

  • workers compensation
  • motor vehicle accident compensation
  • public liability compensation
  • medical negligence compensation
  • personal injury or nervous shock compensation.

You need to tell us if you or your partner make a claim for any of these types of compensation.

Payments under schemes and benefits

The following payments are not considered compensation but may affect your payments from us under the income and assets test:

  • victims of crime schemes, including criminal injury
  • death benefits
  • payments made under an income replacement policy attached to a superannuation policy
  • sickness and accident policy for sporting injuries
  • total permanent disability from your superannuation scheme
  • compensation for unlawful dismissal, sexual harassment or racial discrimination
  • disability pension from the Department of Veterans’ Affairs.

You can call us on your main payment line or ask a Financial Information Service Officer for more information about this.

Contact numbers available on this page.

Centrelink compensation recovery

Use this line if you have queries about Centrelink Compensation Recovery.

Monday to Friday 8 am to 5 pm

There are other ways you may want to contact us.

Page last updated: 5 December 2025.
QC 51790