DCA 31 - TAXATION ON WEEKLY COMPENSATION PAYMENTS

DEFENCE COMPENSATION ADVICE - NO 31

Commonwealth Employees Rehabilitation And Compensation Act 1988

TAXATION ON WEEKLY COMPENSATION PAYMENTS

1.  DRO Queensland has recently received an enquiry from one of their weekly compensation recipients regarding whether weekly payments under the Compensation Act are subject to PAYE taxation.

2.  After consultation with the Australian Taxation Office, it is confirmed that such payments are subject to PAYE taxation. I have enclosed a copy of ATO's advice for your information.

3.  Should your office receive any enquiries from claimant's concerning this matter, it is requested that you refer the correspondence to this office. As this could affect all of our `payees' we will liaise with ATO.

4.  Should you have any further queries concerning this matter, contact Mr Paul Ontong on (06) 266 8639.

K.G.ISAACS

DRDDFC

Dear

I am writing to you about your benefits under the Commonwealth Employees' Rehabilitation and Compensation Act 1988.

Parliament recently made amendments to the Compensation Act which may have an impact on the amount of weekly compensation payable to you under the Act. The amendments only apply to former employees under 65 years of age who are capable of working. If you are not capable of engaging in any work or are over the age of 65, your compensation payments will not be affected.

If you are currently earning income from employment (including self-employment), you must complete the attached form and return it to the above address, quoting your file reference.

If you are capable of working, the income which you are able to earn will be taken into account in calculating your weekly benefits under the Act. Your compensation payments will not be reduced by more than the amount that you are able to earn. In many cases, any reduction of benefits will be less than that amount.

If you need to discuss this matter further, please contact                               on the above number or write to the Compensation Section, Department of Defence quoting your file reference number.

Yours sincerely

Delegate of the Commission for the Safety,

Rehabilitation and Compensation of

Commonwealth Employees.

Dear

I am writing to you about your benefits under the Commonwealth Employees' Rehabilitation and Compensation Act 1988.

Parliament recently made amendments to the Compensation Act which may have an impact on the amount of weekly compensation payable to you under the Act. The amendments only apply to former employees under 65 years of age who are capable of working. If you are not capable of engaging in any work or are over the age of 65, your compensation payments will not be affected.

If you are currently earning income from employment (including self-employment), you must complete the attached form and return it to the above address, quoting your file reference.

If you are capable of working, the income which you are able to earn will be taken into account in calculating your weekly benefits under the Act. Your compensation payments will not be reduced by more than the amount that you are able to earn. In many cases, any reduction of benefits will be less than that amount.

I apologise that due to an administrative oversight, your weekly entitlement to compensation has been incorrectly calculated by taking into consideration your earnings. However, I am now pleased to advise that your entitlement has been recalculated and you can expect to receive a back adjustment shortly.

Any inconvenience caused to you is regretted.

If you need to discuss this matter further, please contact                               on the above number or write to the Compensation Section, Department of Defence quoting your file reference number.

Yours sincerely

Delegate of the Commission for the Safety,

Rehabilitation and Compensation of

Commonwealth Employees.