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I need some help/advice.

I recently settled an ongoing workers compensation claim. I asked my lawyer prior to settlement if this was considered income for taxation purposes and would it be liable for CSA assessment. She was vague about it so I simply applied common sense to it. It was compensation and therefore non taxable.

However having spent the last few hours reading these forums I have come to the realisation that CSA has no common sense nor consideration, kindness or compassion.

So if I could get any advice or insight into compensation and CSA. I link to an earlier topic would be great.
JimmyDodo,
                  there's no hard and fast ruling as such. The CSA or the other parent would have to apply for a reason 8 change of assessment. Only if such an application is made could the compensation then be considered. The CSA Guide says this in regard to compensation:

The CSA Guide - 2.6.14: Reason 8 - a parent's income, property, financial resources, or earning capacity said
Compensation

Where a lump sum is received because of compensation for a personal injury there may be a reason to change the assessment because the payment compensates the parent for past loss of wages or a reduction of future earning capacity (Harris and Harris (1991) FLC 92-254).

Where the amount of compensation is set by way of private settlement it can be difficult to establish the portion of the compensation which relates to loss of wages or a decrease in future earning capacity. In these cases a decision by Centrelink concerning the period during which the parent is precluded from applying for social security benefits can be of assistance.

The cost of the parent's future needs may be increased and a part of the compensation, if not all, may need to be preserved to meet those costs. The parent's cost of meeting their future needs will need to be ascertained to decide the extent to which the parent's capacity to contribute to the financial support of the child has been increased because of the compensation payment.
Thanks Mike.

That sounds like the common sense approach.

Unfortunately the impression I get from reading the forum is CSA is trying to justify it's existence by having as much money go through it's hands as possible. This does not bode well for me.

Will let people know what happens so it may be of assistance to others.
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