Level 3, 18 Dequetteville Terrace, Kent Town SA 5067

(08) 8362 0060

(08) 8362 0061


Work Cover Compensation Claims Advice

At Owl Financial Management, we provide a service to assist in assessing your compensation claim.

What happens if you are offered a worker’s compensation payment?

What do you do with the money that you are offered?

What are the overall financial implications of receiving a payment?

To ensure that recipients of worker’s compensation payments are aware of all their rights, responsibilities and financial obligations, the payment authorities have stipulated that before receiving any payment, a recipient must confirm that they have received both legal and financial advice.  The legal and financial advice must be signed off by an authorised legal officer and financial adviser before any payments are finalised and subsequently paid to the recipient.

To ensure that advice is sought by the recipient, the payment authority will provide funding to cover the cost of the consultations with legal and financial practitioners.  This process ensures that recipients WILL obtain advice are not put off receiving help due to the perception of advice costing them too much.

When a financial adviser meets with a recipient, they will normally provide general advice only.  General advice is the provision of general information relating to the overall situation and not taking the person’s specifics into account.  When looking at worker’s compensation payments, general advice is normally easy to provide as the financial adviser will simply give the recipient the facts about how the payment(s) affect a person’s situation.

Financial advisers will normally cover subjects including taxation, Centrelink, Medicare and possible employment termination.

Whilst redemption payments are generally not taxable, a financial adviser will be able to provide full information relating to what is and what is not taxable in the form of a worker’s compensation redemption payment.

Centrelink may impose waiting periods on the receipt of benefits applied for by a redemption payment recipient.  If planning on applying to Centrelink it may be prudent to get the full perspective on how a compensation payment will affect your ability to firstly make a claim and secondly, how your claim will potentially be impacted.

It is important to ensure that Medicare is advised of the progress of a claim and the information relating to a claim.  Medicare will potentially seek to claim any of their medical payment costs from the payment authority and therefore it is important to ensure that all parties are in constant communication during the settlement process to ensure that once a final payment is made, Medicare do not look to recover any of their costs from the payment recipient.

In the event of a worker terminating their employment due to a compensation claim, they will normally receive any outstanding leave entitlements paid to them.  Appropriate tax advice is required to understand how this will be taxed in the eyes of the recipient.

As you can see, the receipt of a worker’s compensation payment is not a simple and clear cut process. It is important that advice is sought from a legal practitioner so that all bases are covered when dealing with an employer and the payment provider.  Just as important as legal advice, it is important that you understand what the financial implications of a payment or redemption are.  Tax, Centrelink and Medicare are big considerations when accepting benefits in the form of worker’s compensation payments.

For these reasons, before signing off on an agreement, it is best to have all bases covered.  A qualified financial planning practice like Owl Financial Management can help you to understand all the important areas when it comes to worker’s compensation payments.

Owl Financial Management – An Adelaide Based Financial Planning Business

Financial Advisor Adelaide

We are an award winning practice that has been providing financial advice to South Australians since 1969. We really enjoy getting to know our clients and building a relationship with them that lasts over many years. We have a diverse range of clients from mum and dad to AFL players to ASX CEOs. All of which have a diverse range of financial advice needs and very different relationships to maintain. Our clients describe a 'breath of fresh air', personable, expert and people with high integrity. Clients have also mentioned that they are not treated as a number and the advice is specific to them. Working with clients for clients.

Financial Planner Adelaide

The one most rewarding thing about being a financial planner in Adelaide is when you have been working collaboratively with a client in developing and building their goals and objectives and the come to fruition. This give both the clients and myself a real sense of achievement and to use the famous quote 'are we there yet?' and together we can say YES! There has never been a better time to look towards what you want to achieve and start a financial plan so you can get there too.

Financial Planning Adelaide

A person's financial story is like a jigsaw puzzle... "lots of pieces needing to be put into their correct places". A financial adviser can assist a client to put the pieces in the right places by having a series of simple conversations about where a they are currently situated, where they want to be and what strategies can assist them. Every client has a different financial story and goals. Each jigsaw puzzle will always be different. A good financial adviser is experienced at putting together a wide range of jigsaw puzzles. Helping a client put their own puzzle together and seeing their satisfaction is a wonderful feeling.

Barry Phillis, Chris Scriva and Owl Financial Management Pty Ltd are Authorised Representatives of GWM Adviser Services Limited Australian Financial Services Licensee Registered Office at 105-153 Miller Street North Sydney NSW 2060 and a member of the National Australia group of companies.

GENERAL ADVICE WARNING: The advice on this site may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial advice prior to acting on this information.

Opinions constitute our judgment at the time of issue and are subject to change. Neither, the Licensee or any of the National Australia group of companies, nor their employees or directors give any warranty of accuracy, nor accept any responsibility for errors or omissions in this document. View Terms & Conditions >