South Australian Return to Work Act 2014 - lump sum payments
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This fact sheet provides guidance about lump sum payments you may receive under the Return to Work Act 2014 (SA) if you have been incapacitated due to a workplace injury and are able to return to work.
Payments covered in this fact sheet
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- Retraining allowance - a lump sum contribution towards your retraining expenses. The payment is made by your employer instead of providing you with services to assist in your training or retraining for suitable employment.
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- Section 54 redemption payments for liabilities associated with medical services - a capital payment made as a result of an agreement you make with the Return to Work Corporation of South Australia (or a self-insurer delegated the powers and directions of the same) to redeem your employer's liability to compensate you for medical services.
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- Sections 56 and 56A lump sum payments for permanent impairment (economic loss) - a lump sum payment to compensate you for loss of future earning capacity.
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- Section 58 lump sum payments for permanent impairment (non-economic loss) - a lump sum payment to compensate you for non-economic loss such as pain and suffering.
Are the payments you receive taxable?
No. If you receive one of these payments, the payment is not taxable.
You do not need to show the payment in your tax return.
Payments that are not covered in this fact sheet
This fact sheet does not apply to weekly payments redeemed in respect of your incapacity as a lump sum under the Return to Work Act 2014 (SA).
These are addressed in Taxation Determination TD 2016/18 Income tax: is a redemption payment received by a worker under the Return to Work Act 2014 (SA) assessable income of the worker?
More information
For more information, see:
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- Taxation Ruling TR 95/35 Income tax: capital gains: treatment of compensation receipts
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- Taxation Determination TD 2016/18 Income tax: is a redemption payment received by a worker under the Return to Work Act 2014 (SA) assessable income of the worker?
If you wish to discuss your circumstances, please contact us on 13 28 61 between 8:00 am and 6:00 pm, Monday to Friday.
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Siebel/TDMS Reference Number: 1-TTNLPCI Date of publication: 15 June 2023| Date: | Version: | |
| 6 July 2022 | Original statement | |
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