Document ID: chunk:federal_register_of_legislation:C2024C00866:section:5nb:p2
Version: federal_register_of_legislation:C2024C00866
Segment Type: section
Provision Reference: s 5NB (pt 2/4)
Character Range: 195355–197915

the Commonwealth or of a State or Territory, or under a contract entered into under such a scheme; or
 (c) a payment (with or without admission of liability) in settlement of a claim for damages or of a claim under such an insurance scheme;
made wholly or partly in respect of lost earnings or lost capacity to earn. The payment may be in the form of a lump sum (or part of a lump sum) or in the form of periodic payments and may be made either within or outside Australia, but it does not include any payment that, under subsection (3), (4), (5), (6) or (6A), is excluded from the application of this subsection.
Note: Under section 59O, a person may be treated as having received compensation that the person would have received but for the effect of a State or Territory law.
 (3) Subsection (2) does not apply to a periodic payment or a lump sum payment referred to in paragraph 26(1)(b) or (2)(b) or subsection 30(3).
 (4) Subsection (2) does not apply to a compensation payment if:
 (a) the recipient has made contributions (for example, by way of insurance premiums) towards the payment; and
 (b) either:
 (i) the agreement under which the contributions are made does not provide for the amounts that would otherwise be payable under the agreement being reduced or not payable because the recipient is eligible for or receives the compensation affected pension under this Act; or
 (ii) the agreement does so provide but the compensation payment has been calculated without reference to the provision.
 (5) Subsection (2) does not apply to any payment of compensation made to a person that was taken into account under Division 5A of Part II to reduce the amount, or stop the payment, of a pension that, apart from that Division, would have been payable to the person under that Part.
 (6) Subsection (2) does not apply to any payment of compensation made to a person that was taken into account under Division 4 of Part IV to reduce the amount, or stop the payment, of a pension that, apart from that Division, would have been payable to the person under that Part.
 (6A) A payment under a law of the Commonwealth, a State or a Territory that provides for the payment of compensation for a criminal injury does not constitute compensation for the purposes of this Act.
 (6B) The reference in subsection (6A) to a criminal injury is a reference to a personal injury suffered, or a disease or condition contracted, as a result of the commission of an offence.

Compensation part of a lump sum
 (7) Subject to subsection (8), for the purposes of Part IIIC,