The CTP Insurer is not responsible for providing you with accounting or taxation advice about your agreed compensation and your legal and taxation obligations. If you are not legally represented, you may seek that advice from:
- your legal representative
- financial advisor, and/or
- the Australian Taxation Office
Government payments and debts
The CTP Insurer managing your claim is legally obligated to contact Medicare Australia and other statutory authorities such as Centrelink to notify them of the agreed settlement to be paid. These government agencies may require reimbursement of amounts paid to you as a result of the settlement of your claim, which will be deducted from your compensation payment. For example, if you were receiving Centrelink payments at, or after, the time of the accident, the CTP Insurer may have to repay Centrelink an amount from your compensation.
You also need to be aware that if you owe a debt to the Australian Government, unrelated to your claim, Government agencies are entitled to serve a notice on the CTP Insurer which will legally require the repayment of the owed monies to the Australian Government from any compensation settlement. If the CTP Insurer handling your claim receives a notice, they must inform you. If this happens and you want to query the notice, you can either contact the Australian Government agency that issued the notice, or seek legal advice.