Centrelink Compensation Recovery

Compensation is a lump sum payment or periodic payment you may get. It can affect your income support payments from us.

Compensation is a lump sum payment or periodic payment made for a personal injury that leads to a loss of income.

If you or your partner can’t work because of a personal injury, you may be able to get compensation from an insurer or compensation payer.

If either of you get a compensation payment for loss of income, or will get one, it can affect your income support payments from us. Your payments from us may stop.

You may need to repay us for past income support payments made to you. This is called Centrelink compensation recovery.

You may get compensation if you’ve been injured as a result of any of the following:

  • a work-related accident or illness
  • a motor vehicle accident
  • negligence or fault of another person or organisation.

You need to tell us if you get compensation, and we may ask you to complete a form.

You can use our Centrelink compensation estimator to help you understand how compensation may affect you.

Page last updated: 5 December 2025.
QC 22516