Document ID: chunk:federal_register_of_legislation:F2025C00076:reg:45
Version: federal_register_of_legislation:F2025C00076
Segment Type: reg
Provision Reference: reg 45
Character Range: 47738–49397

45  Compensation payment reduction—judgment or settlement does not, or does not adequately, take into account future costs of residential care
 (1) For subsections 44‑20(5) and (6) of the Transitional Provisions Act, in making a determination in respect of a judgment or settlement entitling a care recipient to compensation, the Secretary must take into account the following matters:
 (a) the amount of the judgment or settlement;
 (b) for a judgment—the components stated in the judgment and the amount stated for each component;
 (c) the proportion of liability apportioned to the care recipient;
 (d) the amounts spent on residential care at the time of the judgment or settlement.
Note: For paragraph (1)(b), examples of the components of a judgment include the following:
(a) loss of income;
(b) costs of future care.
 (2) The Secretary may also take into account any other matters the Secretary considers relevant, including the following:
 (a) the amounts that are likely to be paid to, or withheld by, other government agencies because of the judgment or settlement;
 (b) the amounts spent on care (other than residential care) at the time of the judgment or settlement;
 (c) the likely cost of residential care for the care recipient;
 (d) other costs of care for which the care recipient is likely to be liable;
 (e) the amount of the accommodation bond paid or payable by the care recipient;
 (f) other reasonable amounts (not related to care) that the care recipient:
 (i) had spent at the time of the judgment or settlement; or
 (ii) is likely to be liable for.

Division 7—The income test

Subdivision A—Daily income tested reduction—general