---
title: "Client checklist after a personal injury settlement"
url: "https://ailawframework.com/precedents/personal-injury-and-compensation/after-settlement-client-checklist"
type: "precedent"
site: "AI Law Framework"
id: "a21-after-settlement-client-checklist"
area_id: "A21"
kind: "checklist"
ai_level: "yellow"
version: 1
task_ids: ["A21-W20261018-1", "A21-W20261018-2", "A21-W20261018-4", "A21-DM20261023-5", "A21-T1-R11"]
law_stated_as_at: "2026-10-23"
---

# Client checklist after a personal injury settlement

> What a client does after a personal injury settlement is signed: Medicare, Centrelink, the NDIS, tax, and money held for a child. It does not replace the notices sent before settlement.

Canonical page: https://ailawframework.com/precedents/personal-injury-and-compensation/after-settlement-client-checklist  
Law stated as at: 2026-10-23

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

## Key facts

- Kind: Checklist. Steps or checks to work through and tick off.
- Practice area: [Personal Injury & Compensation](https://ailawframework.com/precedents/personal-injury-and-compensation.md)
- Jurisdictions: Victoria, Queensland, New South Wales
- AI level: Yellow. You and the tool draft together, with you directing. You check every statement you rely on.
- Law stated as at: 2026-10-23
- Status: Maintained. Checked on 2026-10-23 against the 4 authorities it cites, for Victoria, Queensland and New South Wales.

## When to use it

Use when the settlement has been signed and the client needs a list of what happens next. Do not use it to prepare the Medicare notice, the Centrelink estimate, or the NDIS notice that goes to the agency.

## Used for these tasks

- [Notify Medicare of a judgment or settlement and track the clearance](https://ailawframework.com/practice/personal-injury-and-compensation/notify-medicare-of-a-judgment-or-settlement-and-track-the-clearance.md)
- [Calculate the Centrelink compensation preclusion period before settlement](https://ailawframework.com/practice/personal-injury-and-compensation/calculate-the-centrelink-compensation-preclusion-period-before-settlemen.md)
- [Account for NDIS supports when settling a participant’s compensation claim](https://ailawframework.com/practice/personal-injury-and-compensation/account-for-ndis-supports-when-settling-a-participant-s-compensation-cla.md)
- [Check the capital gains treatment of compensation or damages](https://ailawframework.com/practice/personal-injury-and-compensation/check-the-capital-gains-treatment-of-compensation-or-damages.md)
- [Prepare court-approval papers for a child or protected-person settlement](https://ailawframework.com/practice/personal-injury-and-compensation/prepare-court-approval-papers-for-a-child-or-protected-person-settlement.md)

## How AI may be used

The client can be given this checklist, and the tool does not calculate a preclusion period, a compensation reduction, or a tax-free amount.

**AI may:**

- Tell the client which agency is told, by whom, and why the money may not arrive in one sum.
- State the Medicare thresholds and the 28-day and 10 per cent figures as the Services Australia page states them.
- State the capital gains disregard in section 118-37(1)(a) and (b) without applying it to a figure.
- Point a child, or a parent, to the holding note for the State in the order.

**AI must not:**

- Do not write a week count for a preclusion period, or a compensation reduction amount.
- Do not tell the client to lodge the payer's Medicare notice.
- Do not say the whole settlement is tax-free.
- Do not complete an NDIS form or a statutory declaration.
- Do not put Medicare numbers, health records or claim letters into a public tool.

**The lawyer checks:**

- Match the date of settlement to the last date the agreement is signed, as the Medicare page states.
- Use a Centrelink or NDIA figure only when that agency has given it in writing.
- If weekly compensation is repaid from the settlement, check separately whether tax paid on those payments is dealt with. This checklist does not do that.
- Section 118-37 disregards a capital gain or loss of the kind it describes. It is not advice that every head in the deed is free of income tax.

## Authorities

- [Services Australia, Medicare compensation recovery, notification requirements, including the 28-day notice and the advance payment](https://www.servicesaustralia.gov.au/medicare-compensation-recovery-notification-requirements)
- [Services Australia, Preclusion periods for Centrelink compensation recovery](https://www.servicesaustralia.gov.au/preclusion-periods-for-centrelink-compensation-recovery?context=22516)
- [NDIS, What is compensation, page marked 22 October 2026](https://www.ndis.gov.au/participants/creating-plan/compensation/what-compensation)
- [Income Tax Assessment Act 1997 (Cth) s 118-37, compensation and damages](https://www8.austlii.edu.au/cgi-bin/viewdoc/au/legis/cth/consol_act/itaa1997240/s118.37.html)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/personal-injury-and-compensation/after-settlement-client-checklist and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

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