Published 09 May 2018
Practice Area: Slip & Fall Public Liability Claims
When claiming for compensation in a public liability case, a structured settlement is an alternative means of repaying debt to an injured person. Instead of receiving a lump compensation payment, claimants may instead be paid out all or part of their debt over a period of time in instalments.
What are the components of a structured settlement?
Compensation payments made to injured people through a structured settlement are considered non-assessable capital, meaning they aren't considered as part of your income when completing your tax returns. However, in order for your settlement to be tax-exempt, compensation needs to satisfy certain legal conditions, such as having these components:
Compulsory component
A structured settlement must include periodic payments that will provide the injured person with a minimum level of monthly payments over the lifetime. These payments have to be equal to the victim's equivalent basic age pension and pension supplement, and will usually be used to cover ongoing medical treatment and other care expenses.
Optional components
What types of public liability claims are affected?
There are certain limits on the kinds of cases that can be settled with structured compensation payments. In order to qualify, the claim must:
Similarly, only cases over a certain financial threshold can be structured because Queensland legislation specifies a minimum level of monthly payments. If the defendant or their insurer don't have enough compensation money to cover the injured person's equivalent age pension for the rest of their life, another form of compensation will have to be considered.
Am I eligible?
You may be wondering if you are eligible for structured settlement compensation in public liability cases, the best option is to consult with a solicitor expert in compensation law to make sure you are able to claim for these payments.
For more information or help, please contact Gerard Malouf & Partners Compensation, Medical Negligence & Will Dispute Lawyers for a free consultation.