Your obligation to claim compensation

You must try to claim any compensation you could get. If you don’t, it could affect your Centrelink payments.

If you or your partner get an income support payment and may be eligible for compensation, you need to take reasonable action to claim or obtain it. This is because people who get compensation for loss of income cannot also get an income support payment for the same period of time.

Reasonable action can include any of the following:

  • lodging a compensation claim with your employer, insurance company or compensation payer
  • getting a solicitor to start legal action
  • getting legal advice on whether it’s worth making a compensation claim.

If you or your partner are already getting periodic compensation payments, we may not be able to pay you an income support payment. We can’t pay you if any of the following happen:

  • you withdraw your compensation claim without a valid reason
  • you stop your compensation payments without a valid reason
  • you fail to give the insurer or compensation payer a medical certificate if you’re still unfit for work.

If you or your partner don’t take reasonable action to get compensation, you may not be eligible for income support payments.

Read more about lump sum compensation payments and periodic compensation payments.

Page last updated: 5 December 2025.
QC 83466