How we treat lump sum compensation

Lump sum compensation payments are made in respect of a compensable event and do not solely represent a fixed period.

Lump sum compensation payments may consist of components such as:

  • rehabilitation
  • economic loss
  • non-economic loss
  • solicitors’ costs
  • pain and suffering
  • impairment
  • medical expenses.

There may be more than one lump sum payable for a compensable event. If any of the lump sums have an economic loss component, then the payment will be treated as one lump sum. The combined total is then used to calculate the preclusion period.

Usually a global, or ‘all in’, lump sum payment without a specific apportionment to lost earnings are still considered to be in respect of lost earnings.

How to contact us about a charge or preclusion period

To talk to us about a charge or preclusion period, call our Centrelink compensation recovery line. We can explain how the charge or preclusion periods are calculated and how to get explanations and formal reviews if a customer disagrees with our decision.

Page last updated: 13 March 2026.
QC 65826