Safe as houses? Lump sum dissipation and housing

Book chapter


Burns, Kylie and Harrington, Ros. (2020). Safe as houses? Lump sum dissipation and housing. In In Vines, Prue and Akkermans, Arno (Ed.). Unexpected consequences of compensation law pp. 101-122 Hart Publishing. https://doi.org/10.5040/9781509928026.ch-006
AuthorsBurns, Kylie and Harrington, Ros
EditorsVines, Prue and Akkermans, Arno
Abstract

Lump sum damages payments for personal injury claimants who suffer serious and catastrophic injury are common across Australia. One of the benefits of lump sum compensation for personal injury is argued to be the ability of claimants to purchase housing with their lump sum. In this chapter, we focus on whether the expenditure of significant amount of lump sum compensation payment on the purchase or payment for housing is desirable for personal injury compensation recipients, particularly considering the complex interaction between Australian compensation systems, the Australian social security support system And lifetime care and support schemes such as the National Disability Insurance Scheme (NDIS) and the National Injury Insurance (NIIS) schemes. We discuss out content analysis of the Australian Administrative Appeal Tribunal (AAT) social security preclusion appeals between 2013 and 2017 to illuminate the potential consequences of compensation recipients expending compensation lump sums on housing. We argue that purchase of housing can contribute to compensation recipients prematurely dissipating lump sum funds meant to provide economic support for loss of earnings and lifetime care and support costs. This may result in preclusion from income and other support from the social security system for lengthy periods of time, with injured people then left in a precarious financial position. It may also result in poor health outcomes for compensation recipients, who may also be unable to access enough lifetime care and support through the NDIS or through a state or territory NIIS scheme. The use of lump sum compensation funds on purchase of property may not, in fact, be ‘safe as houses’.

Keywordsdamages payments; personal injury; lump sum compensation; personal injury compensation
Page range101-122
Year2020
Book titleUnexpected consequences of compensation law
PublisherHart Publishing
Place of publicationOxford, United Kingdom
SeriesHart studies in private law ; volume 34
ISBN9781509928002
9781509927999
9781509928019
Digital Object Identifier (DOI)https://doi.org/10.5040/9781509928026.ch-006
Web address (URL)https://search.ebscohost.com/login.aspx?direct=true&db=nlebk&AN=2569291&site=ehost-live&scope=site
Research or scholarlyResearch
Publisher's version
License
All rights reserved
File Access Level
Controlled
Output statusPublished
Publication dates
Print2020
Online30 Sep 2020
Publication process dates
Deposited10 Jan 2022
Permalink -

https://acuresearchbank.acu.edu.au/item/8x3z6/safe-as-houses-lump-sum-dissipation-and-housing

Restricted files

Publisher's version

  • 0
    total views
  • 0
    total downloads
  • 0
    views this month
  • 0
    downloads this month
These values are for the period from 19th October 2020, when this repository was created.

Export as

Related outputs

Reasonable and necessary' care: The challenge of operationalising the NDIS policy principle in allocating disability care in Australia
Foster, Michele, Henman, Paul, Tilse, Cheryl, Fleming, Jennifer, Allen, Shelley and Harrington, Rosamund Ann. (2016). Reasonable and necessary' care: The challenge of operationalising the NDIS policy principle in allocating disability care in Australia. Australian Journal of Social Issues. 51(1), pp. 27 - 46. https://doi.org/10.1002/j.1839-4655.2016.tb00363.x
Experiences of pathways, outcomes and choice after severe traumatic brain injury under no-fault versus fault-based motor accident insurance
Harrington, Rosamund Ann, Foster, Michele and Fleming, Jennifer. (2015). Experiences of pathways, outcomes and choice after severe traumatic brain injury under no-fault versus fault-based motor accident insurance. Brain Injury. 29(13-14), pp. 1561 - 1571. https://doi.org/10.3109/02699052.2015.1075142
The politics of entitlement and personalisation: Perspectives on a proposed National Disability Long-term Care and Support Scheme in Australia
Foster, Michele, Henman, Paul, Fleming, Jennifer, Tilse, Cheryl and Harrington, Rosamund. (2012). The politics of entitlement and personalisation: Perspectives on a proposed National Disability Long-term Care and Support Scheme in Australia. Social policy and society. 11(3), pp. 331 - 343. https://doi.org/10.1017/S147474641200005X