---
title: "Record tax on New South Wales benefits that must be repaid"
url: "https://ailawframework.com/practice/personal-injury-and-compensation/add-back-tax-paid-on-compensation-that-must-be-repaid/new-south-wales"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A21-DM20261023-4-NSW"
practice_area: "Personal Injury & Compensation (workers compensation, CTP/TAC, medical negligence)"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["NSW"]
last_reviewed: "2026-10-25"
---

# Record tax on New South Wales benefits that must be repaid

> Where the lawyer says a Part 4 award is in view, add a blank row for income tax paid or payable on statutory benefits or workers compensation benefits that must be repaid. Do not calculate the tax.

Canonical page: https://ailawframework.com/practice/personal-injury-and-compensation/add-back-tax-paid-on-compensation-that-must-be-repaid/new-south-wales  
Last reviewed: 2026-10-25

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Personal Injury & Compensation (workers compensation, CTP/TAC, medical negligence)](https://ailawframework.com/practice/personal-injury-and-compensation.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | Where the lawyer says a Part 4 award is in view, add a blank row for income tax paid or payable on statutory benefits or workers compensation benefits that must be repaid. Do not calculate the tax. |
| What the lawyer must review | Section 4.5(1)(d) is a reimbursement of tax, not a gross-up invented by the tool The tax figure is the lawyer's, from the records Section 4.5 does not apply to a Compensation to Relatives Act 1897 action Do not use this row for a claim that is not a Part 4 award |
| Written for | New South Wales |
| Applies to | [Add back tax paid on compensation that must be repaid](https://ailawframework.com/practice/personal-injury-and-compensation/add-back-tax-paid-on-compensation-that-must-be-repaid.md) |

## Checking plan

**Verify against sources**

The row exists only for a Part 4 award. The tax amount stays blank until the lawyer supplies it.

- What the AI does: Where the lawyer says a Part 4 award is in view, add a blank row for income tax paid or payable on statutory benefits or workers compensation benefits that must be repaid. Do not calculate the tax.
- What the lawyer does: Decide whether section 4.5(1)(d) applies and accept the tax figure.
- Who reviews: Lawyer competent in this practice area
- Basis: Checked against the linked sources on 23 October 2026. Confirm the current instrument before reliance.

## Checks the lawyer makes

1. Section 4.5(1)(d) allows damages reimbursing income tax paid or payable on statutory benefits, or on workers compensation benefits, that must be repaid on a Part 4 award.
2. Section 4.5(2) says section 4.5 does not apply to an action under the Compensation to Relatives Act 1897.
3. Section 3.40 is the repayment of weekly statutory benefits out of damages. It is not itself the tax calculation. Keep the tax row separate from the benefit that is repaid.
4. No rate of tax was opened. Do not derive a figure from a percentage.

## Notes

- The facts of any decided case about tax on repaid compensation were not opened. They are not used as a rate.
- Health and wage records stay in a firm-controlled tool. The lawyer applies ASCR r 9 and APP 11, and decides whether any breach is notifiable under the Privacy Act 1988 (Cth).

## Practical guide

Jurisdiction: A damages claim under Part 4 of the Motor Accident Injuries Act 2017

**Deliverable**: A blank tax-reimbursement row, not a calculated gross-up.

**Inputs**

- The benefits the lawyer says must be repaid
- Any tax figure the lawyer has accepted
- Whether the claim is a Part 4 award

**Example**: Illustrative example: Weekly statutory benefits were paid and will be repaid from damages. The table adds a tax row and leaves it blank. It does not multiply the benefits by a tax rate.

**Stop and escalate when**

- The claim is not a Part 4 award.
- The tool would calculate tax without a figure the lawyer has accepted.

Checked 2026-10-23.

## Sources

- [Motor Accident Injuries Act 2017 (NSW), in force from 10 July 2026, sections 3.40 and 4.5](https://legislation.nsw.gov.au/view/whole/html/inforce/current/act-2017-010) (checked 2026-10-23)
- [Workers Compensation Act 1987 (NSW), in force from 1 October 2026, section 151A](https://legislation.nsw.gov.au/view/whole/html/inforce/current/act-1987-070) (checked 2026-10-23)

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*