Are normal age related changes included in the impairment assessment?
The TAC will not include normal age related changes in the impairment assessment. For example the deterioration that is normal and medically expected to occur as a person grows older to their hearing, eyesight, body parts such as the neck and spine. Are impairment benefits subject to tax? Impairment benefits are not assessable as income. The Australian Taxation Office (ATO) views the benefits as payment for the loss of a capital asset. For this reason, the TAC does not withhold income tax from the benefits nor does it issue income statements. Are impairment benefits indexed? Yes, impairment benefits are automatically indexed at the beginning of each financial year in accordance with the formula under section 61 of the TAA 1986. Increases to weekly annuity benefits and the lump sum are in line with the Consumer Price Index (CPI). Can TAC deduct a client’s outstanding legal costs from their impairment lump sum? No, under the Act the TAC is not permitted to deduct from a client’s lump sum
