---
title: "Draft Medicare recovery clauses in a New South Wales personal injury deed"
url: "https://ailawframework.com/practice/personal-injury-and-compensation/draft-the-compensation-recovery-terms-of-a-personal-injury-settlement-de/new-south-wales"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A21-W20261018-3-NSW"
practice_area: "Personal Injury & Compensation (workers compensation, CTP/TAC, medical negligence)"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["NSW"]
last_reviewed: "2026-10-25"
---

# Draft Medicare recovery clauses in a New South Wales personal injury deed

> From the agreed terms and the Medicare notices already received, draft the clauses on who notifies Medicare, who pays the charge, and when funds may be released. Do not set the amount.

Canonical page: https://ailawframework.com/practice/personal-injury-and-compensation/draft-the-compensation-recovery-terms-of-a-personal-injury-settlement-de/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 | From the agreed terms and the Medicare notices already received, draft the clauses on who notifies Medicare, who pays the charge, and when funds may be released. Do not set the amount. |
| What the lawyer must review | Check the clauses against what was agreed. Do not set the Medicare amount Notice is due within 28 days where the payment is over $5,000, on the page's test The payer must not release the payment until Medicare is paid, or the advance path is used Court approval under section 76 is required where a party is under legal incapacity |
| Written for | New South Wales |
| Applies to | [Draft the compensation recovery terms of a personal injury settlement deed](https://ailawframework.com/practice/personal-injury-and-compensation/draft-the-compensation-recovery-terms-of-a-personal-injury-settlement-de.md) |

## Checking plan

**Verify against sources**

The tool drafts Medicare clauses from the agreed terms and the notices held. The lawyer settles the deed and the figures.

- What the AI does: From the agreed terms and the Medicare notices already received, draft the clauses on who notifies Medicare, who pays the charge, and when funds may be released. Do not set the amount.
- What the lawyer does: Settle the clauses, the figures and any need for court approval.
- 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. Services Australia says the notifiable person must tell the agency where a judgment fixes compensation of more than $5,000 not including costs, or a settlement fixes more than $5,000 including all costs, or a reimbursement arrangement is made more than 6 months after the claim. Notice is not required if the claim settles for less than $5,000 including all costs.
2. The compensation payer, usually the insurer, gives notice on the Notice of judgment or settlement form within 28 days of the judgment, settlement or reimbursement arrangement. Failure to do so can leave the payer liable for an outstanding amount.
3. The page says the compensation payer must not release the compensation payment until Medicare has been paid. Where there is no valid notice of past benefits, the payer may wait for the notice of charge and pay it within 28 days of issue, or pay a 10 per cent advance of the total compensation within 28 days of judgment or settlement, if the advance conditions on the page are met.
4. Civil Procedure Act 2005 section 76 requires court approval of a compromise or settlement of proceedings by or on behalf of, or against, a person under legal incapacity, a person who becomes one, or a person the court finds incapable of managing their affairs. Section 76(3A) says approval is not required if, on the day of the agreement, the person has turned 18 and is not otherwise within subsection (1).

## Notes

- Centrelink compensation preclusion periods were not opened. Do not draft a preclusion length. The deed can record that a separate Centrelink notice is still to be checked.
- The release clause is for the client to sign, so the lawyer settles it. The tool does not choose a figure.
- Health and wage records stay in a firm-controlled tool. Australian Solicitors' Conduct Rules rule 9 and Australian Privacy Principle 11 apply, and a breach may be notifiable under the Privacy Act 1988 (Cth).

## Practical guide

Jurisdiction: A New South Wales personal injury deed with a Medicare compensation recovery

**Deliverable**: Draft Medicare clauses for the lawyer to settle in the deed.

**Inputs**

- The agreed terms
- Medicare notices already received
- Whether any party is under legal incapacity

**Example**: Illustrative example: The settlement is $40,000 inclusive of costs and there is no notice of past benefits. The draft says the insurer notifies Services Australia within 28 days and does not release funds until the charge or a 10 per cent advance is paid. The lawyer inserts the figure from the notice, not from the draft.

**Stop and escalate when**

- The draft names a Medicare or Centrelink amount that is not in a notice the firm holds.
- A party may be under legal incapacity and section 76 has not been considered.

Checked 2026-10-23.

## Sources

- [Services Australia: Medicare compensation recovery notification requirements](https://www.servicesaustralia.gov.au/medicare-compensation-recovery-notification-requirements?context=23211) (checked 2026-10-23)
- [Civil Procedure Act 2005 (NSW) section 76](https://classic.austlii.edu.au/au/legis/nsw/consol_act/cpa2005167/s76.html) (checked 2026-10-23)

## Forms and precedents for this task

| Form or precedent | Kind | AI level | Summary |
| --- | --- | --- | --- |
| [Deed of release for a personal injury damages claim](https://ailawframework.com/precedents/personal-injury-and-compensation/personal-injury-deed-of-release.md) | Deed | Yellow | Deed of release for a personal injury damages claim in Victoria, Queensland or New South Wales, conditional on sanction or approval where the claimant cannot give a binding release. |
| [Settlement distribution statement for a personal injury claim](https://ailawframework.com/precedents/personal-injury-and-compensation/personal-injury-settlement-distribution-statement.md) | Checklist | Yellow | Statement the client receives showing the gross personal injury settlement, the costs, the disbursements and the statutory amounts the lawyer has sourced, and the resulting net sum. |
| [Letter to the payer sending a personal injury deed and payment terms](https://ailawframework.com/precedents/personal-injury-and-compensation/settlement-implementation-letter-to-payer.md) | Letter | Yellow | Letter to the payer's solicitors sending a personal injury deed and stating when the compensation may be paid, including the Medicare hold on any payment to the injured person. |

Signed-in accounts can read the full text of each one.

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