House of Representatives Chamber (part 2 of 2)
15 September 2026
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House of Representatives Australian Parliament
00:00 - 01:30
Speaker 9
Lump sum compensation payment can affect income support. Recovery arrangements can require money to be returned to the Commonwealth. Tax can create a further problem. The usual tax treatment depends on what the payment compensates for. Compensation for lost income can be taxable.
Compensation for personal injury is usually not taxable. Without a specific exemption, some recipients risk an unexpected tax bill. Without these protections, receiving compensation from Robodebt can itself create a fresh financial pressure. That is unacceptable. Consider a person who relies on a pension to meet regular expenses.
Their settlement payment recognizes harm they suffered. Receiving that payment should not in itself account as income and reduce the pension they rely on for their everyday needs. Consider an NDIS participant. Compensation for Robodebt should not reduce the funding for the reasonable and necessary supports in their plan. People have waited years for redress.
They deserve clear information about how these protections work and the ordinary rules that still apply. Deputy Speaker, passing this bill quickly will help put these protections in place and avoid unnecessary delays for compensation. For someone waiting for compensation, another delay means more uncertainty about the money that they are owed. We have an opportunity to give people greater certainty about the treatment of their compensation. The Albanese Labor government promised to investigate Robodebt.
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