Commonwealth Consolidated Acts

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Eligibility for compensation payments

Eligibility for compensation

  (1)   A person is eligible for compensation for a relevant AFCA determination made in respect of the person if:

  (a)   the determination requires an amount to be paid to the person by an entity or body (the relevant entity ), whether or not the relevant entity still exists; and

  (b)   the person has notified AFCA:

  (i)   within 12 months after the day the determination was made; or

  (ii)   within such longer period as AFCA agrees with the person;

    that the person has not been paid the amount; and

  (c)   in the case where the relevant entity still exists:

  (i)   AFCA has finished taking steps to require the amount to be paid to the person by the relevant entity, which may have included taking one or more of the steps mentioned in subsection   (2) if AFCA considered them appropriate; and

  (ii)   AFCA has notified the person, in writing, that AFCA has finished taking such steps; and

  (d)   the amount has not been fully paid to the person; and

  (e)   the person is not eligible to receive, under any other statutory compensation scheme, compensation:

  (i)   for the matters covered by the determination; and

  (ii)   for an amount equal to or greater than the amount required to be paid in accordance with the determination; and

  (f)   the person applies in accordance with section   1066 to the CSLR operator for compensation for the determination; and

  (g)   the person has not withdrawn that application for compensation; and

  (h)   the CSLR operator reasonably believes, having regard to:

  (i)   the relevant entity's financial position (if the relevant entity still exists); or

  (ii)   any other reason;

    that the person is unlikely to be fully paid the amount in accordance with the determination.

Note:   A person's application for compensation may be withdrawn at any time before an offer of compensation is accepted by the person (see subsection   1066(4)).

Appropriate steps by AFCA

  (2)   For the purposes of paragraph   (1)(c), the steps are the following:

  (a)   seeking an explanation from the relevant entity for the relevant entity not paying the amount to the person in accordance with the relevant AFCA determination;

  (b)   explaining to the relevant entity the consequences of not paying the amount to the person;

  (c)   discussing with the relevant entity a reasonable payment plan or other alternatives to paying the amount to the person;

  (d)   if the relevant entity is (or has become) a Chapter   5 body corporate--engaging with an officer of the Chapter   5 body corporate to assess whether the body will pay the amount to the person.

Note:   In addition to these steps, AFCA may take any other steps it considers appropriate and cost effective.

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