When your personal injury claim settles, certain refunds to Government departments and private companies (like private health care funds) may be payable. These refunds will be paid from your total settlement amount, so it is important that your lawyer fully advises you on the refunds, the amount of the refunds, and how much money you will receive ‘in the hand’ after those refunds, and other expenses, are deducted.
The three main Government departments that statutory refunds are made to are Medicare, Centrelink, and WorkCover. Any money that is paid by Medicare as a result of your injuries will be refunded, and any monies paid by WorkCover will be refunded.
Centrelink is somewhat different. If you have been receiving Centrelink benefits after the injury, Centrelink generally requires a refund of most or all of the money paid, and sometimes you may be cut off from receiving Centrelink into the future, known as the ‘preclusion period’.
Centrelink will not provide your lawyer with an estimate of the refund but your lawyer should seek information from you to determine if there will be a Centrelink refund and if so, the approximate amount of the refund, and whether there will be a Centrelink preclusion period. It is important that you are fully aware of the Centrelink refund and preclusion period.
There are other statutory refunds that sometimes occur such as Child Support and DVA. Again, your lawyer will ascertain all the refunds and advise you.