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PayrollDeanne(Taxicorn)Taxicorn
25 Mar 2026

G'day @UJD 👋


Workers' compensation redemption payments are offered by insurers to settle ongoing WC payments and medical expenses via a one-off lump sum rather than weekly payments.


Is it actually paid in consequence of the termination of employment? 🤔


If not, which it's typically not, it's a WC absence paid as a lump sum and reported as Paid Leave Type W. To be sure, seek confirmation from the tailored technical assistance team 😉


Deanne

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RE: Workers Compensation Redemption payment that forms part of a termination | ATO Community