Skip to content

Choose one of three locations

Adelaide
Ridgehaven
Smithfield

Redemption Payments

If you’ve been injured at work, you may be receiving workers compensation entitlements. Sometimes, a workers compensation insurer (also known as the compensating authority) will offer a redemption lump sum payment to settle your workers compensation claim. You need to consider carefully whether to accept or reject the offer. Here’s what you need to know.

What is a redemption payment?

A redemption payment is a single lump sum payment instead of ongoing weekly payments and/or payment of medical expenses.

Under what circumstances is a redemption payment made?

Only the compensating authority can offer to make a redemption payment to an injured worker. If the compensating authority does make an offer, redemption payments are offered only under limited circumstances.

The pros and cons

Sometimes, an offer of redemption payment is for a large sum of money. It’s tempting to accept the offer if you want to use the money to buy property or pay off debts, for example. In our experience, however, redemption offers are usually equal to what the worker would have received if they had continued to receive weekly payments and/or payment of medical expenses for the period of their entitlement.

The period of entitlement will vary from person to person, depending on the extent and seriousness of the injuries.  Currently, for all workers (other than seriously injured workers), that period is up to two years of weekly payments for income maintenance and up to three years for medical expenses.

In some cases, the amount offered may not be adequate considering the worker’s injuries. Sometimes, the full extent of the injuries may not be known at the time of a redemption offer. For example, a worker’s symptoms may worsen and down the track and they may require additional expensive medical treatment. It may be that this wasn’t foreseen at the time the offer was made. If a redemption offer is accepted before the extent of the injuries is known, the worker can’t subsequently seek additional compensation for the cost of specific medical treatment.

Taxation and government benefits

When considering whether to accept a redemption payment, you will also need to take into account:

  • That the lump sum is likely to be taxable.
  • Whether any Centrelink entitlements will be affected.
  • Whether you will be required to repay any Centrelink entitlements.
  • Whether any housing trust accommodation or benefits will be affected.
  • Whether you should seek financial or accounting advice.

How we can help

Websters Lawyers has a team of workers compensation lawyers with excellent experience in redemption payment issues. We can provide you with independent advice about whether to accept a redemption payment (if offered). Where appropriate, we can also negotiate with the compensating authority for payment of a larger sum. In some cases, the total cost of the legal advice can be recovered from the compensating authority.

It’s important to remember that if you decide to accept the offer, it’s a “once and for all” payment in settlement of your claim for weekly payments and medical expenses, including surgery if required down the track.

On the flip side, however, you aren’t obliged to accept a redemption offer. If you reject the offer, your weekly payments and/or payment of medical expenses will continue as if the offer was never made.

Contact us today for a free initial consultation to find out how we can help you.

Testimonials

"I contacted Websters Lawyers on the recommendation of a former colleague and found the level of service exceeded what I expected"

Belinda, Smithfield

"I was very impressed by the highly professional and thorough conduct of Websters Lawyers"

Angela, Hallett Cove

"Making a will is fraught with problems and very emotional. [our solicitor] walked us through the process step by step, ensuring we got exactly the Will we wanted. Thankyou!"

John, Ridgehaven

"We found the process of purchasing a new home stress free with the professionalism provided by [our solicitor] & Websters Lawyers."

Rob, Paralowie

"[my solicitor] was very clear and concise with all instructions. I was very happy with the outcome and pleased to have a professional represent me"

Richard, Wynn Vale

"Most helpful and all of my questions clearly answered and explained. Very courteous"

Peter, Hillbank

"The initial phone conversation was very informative and professionally conducted. [my solicitor] who arranged our wills clearly explained everything and was very professional. We were very satisfied"

Wendy, Wynn Vale

"[my solicitor] was highly professional and approachable. I felt comfortable asking questions relating to my case. I am very happy with the outcome, I recommend Websters Lawyers."

Angela, Hallett Cove

"I was very happy with my lawyer. Keep doing what you do"

Jarrad, Elizabeth Vale

"I have engaged [my solicitor] on two occasions to handle estate probate matters and have found her service to be prompt, efficient and very professional. Thank you."

David, Gumeracha

"Very professional and thorough"

Sylvia, Greenwith

"Lived up to their word."

Robert, Ridgehaven

"Happy with service received and fairly priced. [my solicitor] very approachable."

Devesh, Albert Park

"Websters Lawyers provided us with excellent support and legal advice every step of the way. Their expertise in legal matters is unmatchable. They were extremely professional and courteous. We really thank then for their excellent service"

Gary, Golden Grove

"My overall experience with Websters Lawyers was one of great ease at a very difficult time in my life. [my solicitor] answered all my questions promptly and explained everything to me that I needed to know."

Sheryl, Glengowrie

"The service was impeccable"

Michael, Trott Park

"Websters took an extremely stressful time for me and made me feel comfortable and confident. They achieved the best possible outscome for my situation and came in at a lower cvost than first estimated so I couldn’t be happier with the service, process or people. Thank you"

David, Smithfield

"[my solicitor] was great, he kept me informed all the way through and provided great advice which resulted in a great outcome"

Fiona & Phil, St Agnes

"[my solicitor] was highly professional and approachable. I felt comfortable asking questions relating to my case. I am very happy with the outcome, I recommend Websters Lawyers."

Belinda, Smithfield

"Very professional legal service, good advice. I will continue to consult on future legal matters. I’m please to advise I have recommended two people to Websters Lawyers due to the service I received from [my solicitor]"

Veronica, Modbury Heights

"I was very impressed by the highly professional and thorough conduct of Websters Lawyers"

Francesca, St Agnes

"[my solicitor] spoke in easy terms for us to understand."

Peter, Klemzig

"I found Websters Lawyers to be accurate and forthcoming. Felt like I was important."

David, St Agnes

"I found [my solicitor] and the other staff at Websters Lawyers very professional. [my solicitor] handled the difficult subject of making a will by clearly explaining the steps and processes. The whole process was very efficient"

Joey, Kurralta Park

"Very satisfied – especially with my hearing problem. [my solicitor] and [her assistant] were very patient"

Patricia, Ingle Farm

"Very happy with the overall outcome with Websters Lawyers"

Gary, Craigmore

"All our questions were answered. A very good experience. I will continue to use Websters and recommend your firm to my friends."

David, Gumeracha

"My solicitor was prompt and efficient at getting my claim completed J"

Marilyn & Stan, Lightsview

"Lawyer was helpful, unhurried and explained complex matters in easy to understand language. Provided information and advice over and above what we required."

Gail, Greenwith

"I have engaged [my solicitor] on two occasions to handle estate probate matters and have found her service to be prompt, efficient and very professional. Thank you."

Kevin, Findon

It doesn't cost you anything to know where you stand

Subpage form
What is the best time to call you? *
:
Scroll To Top