Income support for self-employed people

Summary

  • If you're eligible, in most cases we pay 80% of your gross income, up to $1,430 per week
  • To get paid each fortnight, you need to send us a Certificate of Capacity from your doctor
  • If you return to work part-time or on reduced hours, we can pay partial income support until you go back to your normal hours.

Who can claim income support

Use our Income support eligibility tool to check if you can claim income support.

You may be eligible to claim income support if:

  • You have an accepted TAC claim
  • You’ve had more than 5 days off work because of your transport accident injures
  • You are 15 years or older
  • You have a certificate of capacity from your doctor that says what you can and can't do because of your accident injuries.

How much we can pay

First, we work out what you earned before your accident. The way we work this out depends on the structure of your business. See the section below that applies to you.

After we work out how much you earn, we apply a formula to work out your TAC income support payment.

For most people, their income support works out to be 80% of what they earned before the accident.

If you operate as a sole trader or in a partnership

There are two ways we can work out your income support. We can look at:

  • Your taxable earnings for the last 3 years
  • What it costs to hire someone to replace you.

If your business is less than 3 years old, we will look at the whole period your business has operated. We can take into account any upward or downward trends in your business profits.

Generally, you cannot claim both lost income and the cost of hiring someone.

See 'How to apply' for information about what we need to work out your income support.

If your business is set up as a company or a trust

If your business is a proprietary limited company and you get paid a salary or wage, in some cases we can work out your income support based on your pay.

If your business is a trust and you get wages or distributions, we can pay income support in some cases.

See 'How to apply' for information about what we need to work out your income support.

When we work out your income support, we will write to you and explain how we calculated your benefit.

Things we won't include when we work out your income support

  • Cash payments or income that was not declared with the Australian Taxation Office
  • Money you received from interest
  • Rental income
  • Money from dividends
  • Any other income you got that didn't involve working

How we work out what to pay

If your income is less than $708* a week

We can pay you 100% of your income.

If 80% of your income is less than $708* a week

We can pay you $708* a week.

If 80% of your income is between $708* and $1,430 a week

We can pay you 80% of your income a week.

If 80% of your income is more than $1,430 a week

We can pay you $1,430 a week.

* $708 applies if you have no dependants. If you have one dependant, this rate is $908. For each extra dependant add $64. Dependants include anyone who relies on you for financial support.

Things to note

  • We can only pay you the dependant rate if it is less than 100% of your weekly income.
  • The dollar amounts listed are for the period 1 July 2020 to 30 June 2021. We update these amounts each financial year.
  • We base the amount you get on what you earned before your accident. See How are Loss of Earnings (LOE) benefits assessed for self-employed people? for more information about how we work out your earnings.
  • We will take out tax from your income support. If you have a HELP debt, we will also take out a HELP payment. If you pay family maintenance, we may take out an amount decided by the Child Support Agency.

What you need to do to keep getting income support

To get paid each fortnight, you need to send us a Certificate of Capacity from your doctor.

The Certificate of Capacity updates us on your progress and tells us what you can and can't do.

To avoid a delay in your payments, you must must send us your new certificate at least 5 working days before your certificate expires.

What happens if your certificate is late and you don't get paid

We know that sometimes things don’t go to plan. If we’re satisfied that you tried to send us your Certificate of Capacity on time, we may be able to pay you outside the normal payment cycle. Please call us on 1300 654 329 (Monday to Friday, 8.30am to 5:30pm) for more information.

Other things you need to let us know

You must let us know if:

  • You change your address or bank account details
  • Someone becomes dependent on you for financial support, or is no longer dependent on you
  • You return to work

When you will get paid

Once we’ve accepted your claim, we pay into your nominated bank account each fortnight.

We will send you a Pay As You Go (PAYG) summary at the end of the financial year to include in your tax return.

The 2020 pay dates for eligible clients.

  • 8 April
  • 22 April
  • 6 May
  • 20 May
  • 3 June
  • 17 June
  • 1 July
  • 15 July
  • 29 July
  • 12 August
  • 26 August
  • 9 September
  • 23 September
  • 7 October
  • 21 October
  • 4 November
  • 18 November*
  • 2 December
  • 16 December
  • 30 December

*2020/21 tax rate adjustment takes effect

Tax rate adjustment for 2020-2021

The Australian Taxation Office (ATO) has recently adjusted tax rates for the 2020/21 financial year. This is in line with the changes to personal income tax thresholds announced in the Federal Budget.

If you are receiving the following benefits from the TAC, these new tax rates will apply to you:

  • Loss of Earnings (LOE)
  • Dependent Surviving Partners Benefit
  • Dependent Surviving Child Benefit

If you are receiving a Partial Loss of Earning Capacity (LOEC) benefit, the adjusted tax rates may also change the amount you receive from the TAC. This is because you have a capacity to work.

These tax changes will come into effect from the fortnightly payment cycle starting 9 November 2020. The TAC will process these payments on Monday, 16 November 2020. Clients should receive their payment by Wednesday, 18 November 2020.

The adjusted tax rate does not change the gross amount we have agreed to pay you. It may change the amount of tax we withhold from your payment, which could change the amount of net pay you receive.

You will receive a tax credit for any extra tax withheld from your payments before our system update. This tax credit will apply when you lodge your 2020–21 income tax return with the Australian Tax Office.

What happens if your certificate is late

We know that sometimes things don’t go to plan. If we’re satisfied that you tried to send us your Certificate of Capacity on time, we may be able to pay you outside the normal payment cycle. Please call us on 1300 654 329 (Monday to Friday, 8.30am to 5:30pm) for more information.

What happens if you go back to work part-time

If you return to work part-time or on reduced hours, we can make partial income support payments to you.

Find out how we work out how much to pay you if you go back to work on reduced hours

We will need a Certificate of Capacity from your doctor that tells us what you can do at work.

To work out how much to pay, we need a copy of your profit and loss statements. You can send these to us using myTAC.

Many people find getting back to work plays a big part in their recovery. When you are ready, we’re here to support you get back to work as quickly and safely as possible.

See Return to work support for more details about the resources available to you.

Step 1

If you haven't already, you will need to talk to us about your eligibility for income support. You can call us on 1300 654 329 (Monday to Friday, 8.30am to 5:30pm).

When we talk to you, we will ask you for some information, such as:

  • Your business name
  • Type of business
  • ABN
  • Contact details for your accountant
  • Details about what you earned before the accident
  • If you have financial dependent(s), their name, date of birth and relationship to you (e.g. wife/husband, partner, child)
  • Bank account details

We will use this information to work out if you are eligible for income support.

Step 2

To work out your income support rate, we need you to send us:

  • Personal income tax records for the 3 years before your accident
  • Business Activity Statements (if applicable)
  • A completed Tax File Number (TFN) declaration form. We need to receive this within 14 days or, by law, we must tax your income support at the highest tax rate. Please email the completed TFN declaration form to tfn@tac.vic.gov.au

If you hire someone to do your work

If you hire someone to do your work while you are injured, we need this information to work out if you are eligible for income support:

  • A Certificate of Capacity from your doctor
  • The name and contact details of the person you have employed to do your work
  • Written or verbal confirmation that the person is doing work that you would normally do
  • Payslips or invoices showing gross pay and hours worked by the person
  • Proof of payment, such as a copy of bank statements, bank transfers or cheque butts
  • If the person worked for you before your accident, we will also need a record of all wages paid to them in the 12 months before your accident

Coronavirus update

The TAC is unable to send or receive hard copy documents at this time. We have some different options for you to send us forms, documents or receipts for reimbursement.

Please choose an option below for more information.

Reimbursements

  • myTAC
    Please use our app or web portal, myTAC to ask for reimbursements. Go to upload documents > reimbursement form and send us a photo of your receipt or proof of payment and a description of what you've paid for.
  • Email
    If you can't use myTAC to send your receipts, please take a photo and email it to us at info@tac.vic.gov.au. Include your claim number in the subject line of your email so we can process your request.

Forms and documents

  • myTAC
    Please use our app or web portal, myTAC to send forms or documents. Go to upload documents > submit documents and send us a photo of your form or document.
  • Email
    If you can't use myTAC to send your forms or documents, please take a photo and email it to us at info@tac.vic.gov.au. Include your claim number in the subject line of your email so we can process your request.

TAC income support forms

Travel to work reimbursement form

Use this form to claim expenses for travel to work by private car, public transport or taxi.

Please note that you need approval from the TAC before you travel by taxi.

TAC income support fact sheets

If you have a question about income support, please call us on 1300 654 329 (Monday to Friday, 8:30am to 5:30pm) or email info@tac.vic.gov.au

I have financial trouble and need money now - what can I do?

If you need urgent financial help, please call us on 1300 654 329 (Monday to Friday, 8.30am to 5.30pm).

Can I get my accountant to contact you?

Yes. We encourage your accountant to speak with us to move things along.

We need your permission to speak to your accountant. If you haven't already, you will need to sign and send us an Authority to Release Information form. This form gives us permission to talk to others about your claim.

How long can I get income support?

Most people only need income support for a short time. We can pay when your transport accident injuries stop you from going back to work.

We can pay income support for up to 18 months. This time starts from the date of your accident, or when your injury first appears.

If you have reached or are within 1 year of reaching retirement age in your occupation, income support may only be available for 12 months. See 'How long are loss of earnings benefits payable for?' for more information.

We will review your progress and your ability to return to work. We may ask you to go to a medical examination so we can better understand your options and ability to return to work.

If, after 18 months you can't go back to work, you may be eligible for a loss of earnings capacity benefit.

I have income protection paid by my insurer. Can I get TAC income support?

Yes. It is the TAC's responsibility to pay eligible people income support.

You should let your insurer or broker know if you get income support from the TAC.

Can I get income support if I go back to work part-time or on reduced hours?

Yes. We will still make temporary payments to you while you recover enough to return to your normal hours.

The amount we pay will depend on how much you earn when you go back to work.

You must let us know if you return to work.

Because of the accident, my business has stopped. How will you assess my income?

If you're in a business partnership, we work out your income by looking at your share of the profit. In some cases, we may also look at your physical contribution to the business. For example, if you run a cleaning business and do all the physical work, we will take this into account.

In some cases, we can pay for the cost of hiring someone to do the work you can't do.

What should I do if I haven't lodged my tax return for this year?

We work out your income support benefit by looking at your income for the most recent financial year.

If this is not possible, we can accept information from the previous financial year.

How do I prove my income if my business is new?

We can use a profit and loss statement prepared by your accountant to work out your income support.

Income support for self-employed people - FAQ

If you have a question about income support, please call us on 1300 654 329 (Monday to Friday, 8:30am to 5:30pm) or email info@tac.vic.gov.au

I have financial trouble and need money now - what can I do?

If you need urgent financial help, please call us on 1300 654 329 (Monday to Friday, 8.30am to 5.30pm).

Can I get my accountant to contact you?

Yes. We encourage your accountant to speak with us to move things along.

We need your permission to speak to your accountant. If you haven't already, you will need to sign and send us an Authority to Release Information form. This form gives us permission to talk to others about your claim.

How long can I get income support?

Most people only need income support for a short time. We can pay when your transport accident injuries stop you from going back to work.

We can pay income support for up to 18 months. This time starts from the date of your accident, or when your injury first appears.

If you have reached or are within 1 year of reaching retirement age in your occupation, income support may only be available for 12 months. See 'How long are loss of earnings benefits payable for?' for more information.

We will review your progress and your ability to return to work. We may ask you to go to a medical examination so we can better understand your options and ability to return to work.

If, after 18 months you can't go back to work, you may be eligible for a loss of earnings capacity benefit.

I have income protection paid by my insurer. Can I get TAC income support?

Yes. It is the TAC's responsibility to pay eligible people income support.

You should let your insurer or broker know if you get income support from the TAC.

Can I get income support if I go back to work part-time or on reduced hours?

Yes. We will still make temporary payments to you while you recover enough to return to your normal hours.

The amount we pay will depend on how much you earn when you go back to work.

You must let us know if you return to work.

Because of the accident, my business has stopped. How will you assess my income?

If you're in a business partnership, we work out your income by looking at your share of the profit. In some cases, we may also look at your physical contribution to the business. For example, if you run a cleaning business and do all the physical work, we will take this into account.

In some cases, we can pay for the cost of hiring someone to do the work you can't do.

What should I do if I haven't lodged my tax return for this year?

We work out your income support benefit by looking at your income for the most recent financial year.

If this is not possible, we can accept information from the previous financial year.

How do I prove my income if my business is new?

We can use a profit and loss statement prepared by your accountant to work out your income support.

TAC income support and return to work

Summary

  • If you're eligible, in most cases we pay 80% of your gross income, up to $1,430 per week
  • To get paid each fortnight, you need to send us a Certificate of Capacity from your doctor
  • If you return to work part-time or on reduced hours, we can pay partial income support until you go back to your normal hours.

Who can claim income support

Use our Income support eligibility tool to check if you can claim income support.

You may be eligible to claim income support if:

  • You have an accepted TAC claim
  • You’ve had more than 5 days off work because of your transport accident injures
  • You are 15 years or older
  • You have a certificate of capacity from your doctor that says what you can and can't do because of your accident injuries.

How much we can pay

First, we work out what you earned before your accident. The way we work this out depends on the structure of your business. See the section below that applies to you.

After we work out how much you earn, we apply a formula to work out your TAC income support payment.

For most people, their income support works out to be 80% of what they earned before the accident.

If you operate as a sole trader or in a partnership

There are two ways we can work out your income support. We can look at:

  • Your taxable earnings for the last 3 years
  • What it costs to hire someone to replace you.

If your business is less than 3 years old, we will look at the whole period your business has operated. We can take into account any upward or downward trends in your business profits.

Generally, you cannot claim both lost income and the cost of hiring someone.

See 'How to apply' for information about what we need to work out your income support.

If your business is set up as a company or a trust

If your business is a proprietary limited company and you get paid a salary or wage, in some cases we can work out your income support based on your pay.

If your business is a trust and you get wages or distributions, we can pay income support in some cases.

See 'How to apply' for information about what we need to work out your income support.

When we work out your income support, we will write to you and explain how we calculated your benefit.

Things we won't include when we work out your income support

  • Cash payments or income that was not declared with the Australian Taxation Office
  • Money you received from interest
  • Rental income
  • Money from dividends
  • Any other income you got that didn't involve working

How we work out what to pay

If your income is less than $708* a week

We can pay you 100% of your income.

If 80% of your income is less than $708* a week

We can pay you $708* a week.

If 80% of your income is between $708* and $1,430 a week

We can pay you 80% of your income a week.

If 80% of your income is more than $1,430 a week

We can pay you $1,430 a week.

* $708 applies if you have no dependants. If you have one dependant, this rate is $908. For each extra dependant add $64. Dependants include anyone who relies on you for financial support.

Things to note

  • We can only pay you the dependant rate if it is less than 100% of your weekly income.
  • The dollar amounts listed are for the period 1 July 2020 to 30 June 2021. We update these amounts each financial year.
  • We base the amount you get on what you earned before your accident. See How are Loss of Earnings (LOE) benefits assessed for self-employed people? for more information about how we work out your earnings.
  • We will take out tax from your income support. If you have a HELP debt, we will also take out a HELP payment. If you pay family maintenance, we may take out an amount decided by the Child Support Agency.

What you need to do to keep getting income support

To get paid each fortnight, you need to send us a Certificate of Capacity from your doctor.

The Certificate of Capacity updates us on your progress and tells us what you can and can't do.

To avoid a delay in your payments, you must must send us your new certificate at least 5 working days before your certificate expires.

What happens if your certificate is late and you don't get paid

We know that sometimes things don’t go to plan. If we’re satisfied that you tried to send us your Certificate of Capacity on time, we may be able to pay you outside the normal payment cycle. Please call us on 1300 654 329 (Monday to Friday, 8.30am to 5:30pm) for more information.

Other things you need to let us know

You must let us know if:

  • You change your address or bank account details
  • Someone becomes dependent on you for financial support, or is no longer dependent on you
  • You return to work

When you will get paid

Once we’ve accepted your claim, we pay into your nominated bank account each fortnight.

We will send you a Pay As You Go (PAYG) summary at the end of the financial year to include in your tax return.

The 2020 pay dates for eligible clients.

  • 8 April
  • 22 April
  • 6 May
  • 20 May
  • 3 June
  • 17 June
  • 1 July
  • 15 July
  • 29 July
  • 12 August
  • 26 August
  • 9 September
  • 23 September
  • 7 October
  • 21 October
  • 4 November
  • 18 November*
  • 2 December
  • 16 December
  • 30 December

*2020/21 tax rate adjustment takes effect

Tax rate adjustment for 2020-2021

The Australian Taxation Office (ATO) has recently adjusted tax rates for the 2020/21 financial year. This is in line with the changes to personal income tax thresholds announced in the Federal Budget.

If you are receiving the following benefits from the TAC, these new tax rates will apply to you:

  • Loss of Earnings (LOE)
  • Dependent Surviving Partners Benefit
  • Dependent Surviving Child Benefit

If you are receiving a Partial Loss of Earning Capacity (LOEC) benefit, the adjusted tax rates may also change the amount you receive from the TAC. This is because you have a capacity to work.

These tax changes will come into effect from the fortnightly payment cycle starting 9 November 2020. The TAC will process these payments on Monday, 16 November 2020. Clients should receive their payment by Wednesday, 18 November 2020.

The adjusted tax rate does not change the gross amount we have agreed to pay you. It may change the amount of tax we withhold from your payment, which could change the amount of net pay you receive.

You will receive a tax credit for any extra tax withheld from your payments before our system update. This tax credit will apply when you lodge your 2020–21 income tax return with the Australian Tax Office.

What happens if your certificate is late

We know that sometimes things don’t go to plan. If we’re satisfied that you tried to send us your Certificate of Capacity on time, we may be able to pay you outside the normal payment cycle. Please call us on 1300 654 329 (Monday to Friday, 8.30am to 5:30pm) for more information.

What happens if you go back to work part-time

If you return to work part-time or on reduced hours, we can make partial income support payments to you.

Find out how we work out how much to pay you if you go back to work on reduced hours

We will need a Certificate of Capacity from your doctor that tells us what you can do at work.

To work out how much to pay, we need a copy of your profit and loss statements. You can send these to us using myTAC.

Many people find getting back to work plays a big part in their recovery. When you are ready, we’re here to support you get back to work as quickly and safely as possible.

See Return to work support for more details about the resources available to you.

Step 1

If you haven't already, you will need to talk to us about your eligibility for income support. You can call us on 1300 654 329 (Monday to Friday, 8.30am to 5:30pm).

When we talk to you, we will ask you for some information, such as:

  • Your business name
  • Type of business
  • ABN
  • Contact details for your accountant
  • Details about what you earned before the accident
  • If you have financial dependent(s), their name, date of birth and relationship to you (e.g. wife/husband, partner, child)
  • Bank account details

We will use this information to work out if you are eligible for income support.

Step 2

To work out your income support rate, we need you to send us:

  • Personal income tax records for the 3 years before your accident
  • Business Activity Statements (if applicable)
  • A completed Tax File Number (TFN) declaration form. We need to receive this within 14 days or, by law, we must tax your income support at the highest tax rate. Please email the completed TFN declaration form to tfn@tac.vic.gov.au

If you hire someone to do your work

If you hire someone to do your work while you are injured, we need this information to work out if you are eligible for income support:

  • A Certificate of Capacity from your doctor
  • The name and contact details of the person you have employed to do your work
  • Written or verbal confirmation that the person is doing work that you would normally do
  • Payslips or invoices showing gross pay and hours worked by the person
  • Proof of payment, such as a copy of bank statements, bank transfers or cheque butts
  • If the person worked for you before your accident, we will also need a record of all wages paid to them in the 12 months before your accident

Coronavirus update

The TAC is unable to send or receive hard copy documents at this time. We have some different options for you to send us forms, documents or receipts for reimbursement.

Please choose an option below for more information.

Reimbursements

  • myTAC
    Please use our app or web portal, myTAC to ask for reimbursements. Go to upload documents > reimbursement form and send us a photo of your receipt or proof of payment and a description of what you've paid for.
  • Email
    If you can't use myTAC to send your receipts, please take a photo and email it to us at info@tac.vic.gov.au. Include your claim number in the subject line of your email so we can process your request.

Forms and documents

  • myTAC
    Please use our app or web portal, myTAC to send forms or documents. Go to upload documents > submit documents and send us a photo of your form or document.
  • Email
    If you can't use myTAC to send your forms or documents, please take a photo and email it to us at info@tac.vic.gov.au. Include your claim number in the subject line of your email so we can process your request.

TAC income support forms

Travel to work reimbursement form

Use this form to claim expenses for travel to work by private car, public transport or taxi.

Please note that you need approval from the TAC before you travel by taxi.

TAC income support fact sheets

If you have a question about income support, please call us on 1300 654 329 (Monday to Friday, 8:30am to 5:30pm) or email info@tac.vic.gov.au

I have financial trouble and need money now - what can I do?

If you need urgent financial help, please call us on 1300 654 329 (Monday to Friday, 8.30am to 5.30pm).

Can I get my accountant to contact you?

Yes. We encourage your accountant to speak with us to move things along.

We need your permission to speak to your accountant. If you haven't already, you will need to sign and send us an Authority to Release Information form. This form gives us permission to talk to others about your claim.

How long can I get income support?

Most people only need income support for a short time. We can pay when your transport accident injuries stop you from going back to work.

We can pay income support for up to 18 months. This time starts from the date of your accident, or when your injury first appears.

If you have reached or are within 1 year of reaching retirement age in your occupation, income support may only be available for 12 months. See 'How long are loss of earnings benefits payable for?' for more information.

We will review your progress and your ability to return to work. We may ask you to go to a medical examination so we can better understand your options and ability to return to work.

If, after 18 months you can't go back to work, you may be eligible for a loss of earnings capacity benefit.

I have income protection paid by my insurer. Can I get TAC income support?

Yes. It is the TAC's responsibility to pay eligible people income support.

You should let your insurer or broker know if you get income support from the TAC.

Can I get income support if I go back to work part-time or on reduced hours?

Yes. We will still make temporary payments to you while you recover enough to return to your normal hours.

The amount we pay will depend on how much you earn when you go back to work.

You must let us know if you return to work.

Because of the accident, my business has stopped. How will you assess my income?

If you're in a business partnership, we work out your income by looking at your share of the profit. In some cases, we may also look at your physical contribution to the business. For example, if you run a cleaning business and do all the physical work, we will take this into account.

In some cases, we can pay for the cost of hiring someone to do the work you can't do.

What should I do if I haven't lodged my tax return for this year?

We work out your income support benefit by looking at your income for the most recent financial year.

If this is not possible, we can accept information from the previous financial year.

How do I prove my income if my business is new?

We can use a profit and loss statement prepared by your accountant to work out your income support.

Income support for self-employed people - FAQ

If you have a question about income support, please call us on 1300 654 329 (Monday to Friday, 8:30am to 5:30pm) or email info@tac.vic.gov.au

I have financial trouble and need money now - what can I do?

If you need urgent financial help, please call us on 1300 654 329 (Monday to Friday, 8.30am to 5.30pm).

Can I get my accountant to contact you?

Yes. We encourage your accountant to speak with us to move things along.

We need your permission to speak to your accountant. If you haven't already, you will need to sign and send us an Authority to Release Information form. This form gives us permission to talk to others about your claim.

How long can I get income support?

Most people only need income support for a short time. We can pay when your transport accident injuries stop you from going back to work.

We can pay income support for up to 18 months. This time starts from the date of your accident, or when your injury first appears.

If you have reached or are within 1 year of reaching retirement age in your occupation, income support may only be available for 12 months. See 'How long are loss of earnings benefits payable for?' for more information.

We will review your progress and your ability to return to work. We may ask you to go to a medical examination so we can better understand your options and ability to return to work.

If, after 18 months you can't go back to work, you may be eligible for a loss of earnings capacity benefit.

I have income protection paid by my insurer. Can I get TAC income support?

Yes. It is the TAC's responsibility to pay eligible people income support.

You should let your insurer or broker know if you get income support from the TAC.

Can I get income support if I go back to work part-time or on reduced hours?

Yes. We will still make temporary payments to you while you recover enough to return to your normal hours.

The amount we pay will depend on how much you earn when you go back to work.

You must let us know if you return to work.

Because of the accident, my business has stopped. How will you assess my income?

If you're in a business partnership, we work out your income by looking at your share of the profit. In some cases, we may also look at your physical contribution to the business. For example, if you run a cleaning business and do all the physical work, we will take this into account.

In some cases, we can pay for the cost of hiring someone to do the work you can't do.

What should I do if I haven't lodged my tax return for this year?

We work out your income support benefit by looking at your income for the most recent financial year.

If this is not possible, we can accept information from the previous financial year.

How do I prove my income if my business is new?

We can use a profit and loss statement prepared by your accountant to work out your income support.

TAC income support and return to work

Overview

The best person to run your business is you. We understand that having an accident and not being able to work can be expensive.

We can make temporary payments to you while you recover. We may also be able to help with the cost of employing someone to replace you.

Summary

  • If you're eligible, in most cases we pay 80% of your gross income, up to $1,430 per week
  • To get paid each fortnight, you need to send us a Certificate of Capacity from your doctor
  • If you return to work part-time or on reduced hours, we can pay partial income support until you go back to your normal hours.

Who can claim income support

Use our Income support eligibility tool to check if you can claim income support.

You may be eligible to claim income support if:

  • You have an accepted TAC claim
  • You’ve had more than 5 days off work because of your transport accident injures
  • You are 15 years or older
  • You have a certificate of capacity from your doctor that says what you can and can't do because of your accident injuries.

How much we can pay

First, we work out what you earned before your accident. The way we work this out depends on the structure of your business. See the section below that applies to you.

After we work out how much you earn, we apply a formula to work out your TAC income support payment.

For most people, their income support works out to be 80% of what they earned before the accident.

If you operate as a sole trader or in a partnership

There are two ways we can work out your income support. We can look at:

  • Your taxable earnings for the last 3 years
  • What it costs to hire someone to replace you.

If your business is less than 3 years old, we will look at the whole period your business has operated. We can take into account any upward or downward trends in your business profits.

Generally, you cannot claim both lost income and the cost of hiring someone.

See 'How to apply' for information about what we need to work out your income support.

If your business is set up as a company or a trust

If your business is a proprietary limited company and you get paid a salary or wage, in some cases we can work out your income support based on your pay.

If your business is a trust and you get wages or distributions, we can pay income support in some cases.

See 'How to apply' for information about what we need to work out your income support.

When we work out your income support, we will write to you and explain how we calculated your benefit.

Things we won't include when we work out your income support

  • Cash payments or income that was not declared with the Australian Taxation Office
  • Money you received from interest
  • Rental income
  • Money from dividends
  • Any other income you got that didn't involve working

How we work out what to pay

If your income is less than $708* a week

We can pay you 100% of your income.

If 80% of your income is less than $708* a week

We can pay you $708* a week.

If 80% of your income is between $708* and $1,430 a week

We can pay you 80% of your income a week.

If 80% of your income is more than $1,430 a week

We can pay you $1,430 a week.

* $708 applies if you have no dependants. If you have one dependant, this rate is $908. For each extra dependant add $64. Dependants include anyone who relies on you for financial support.

Things to note

  • We can only pay you the dependant rate if it is less than 100% of your weekly income.
  • The dollar amounts listed are for the period 1 July 2020 to 30 June 2021. We update these amounts each financial year.
  • We base the amount you get on what you earned before your accident. See How are Loss of Earnings (LOE) benefits assessed for self-employed people? for more information about how we work out your earnings.
  • We will take out tax from your income support. If you have a HELP debt, we will also take out a HELP payment. If you pay family maintenance, we may take out an amount decided by the Child Support Agency.

What you need to do to keep getting income support

To get paid each fortnight, you need to send us a Certificate of Capacity from your doctor.

The Certificate of Capacity updates us on your progress and tells us what you can and can't do.

To avoid a delay in your payments, you must must send us your new certificate at least 5 working days before your certificate expires.

What happens if your certificate is late and you don't get paid

We know that sometimes things don’t go to plan. If we’re satisfied that you tried to send us your Certificate of Capacity on time, we may be able to pay you outside the normal payment cycle. Please call us on 1300 654 329 (Monday to Friday, 8.30am to 5:30pm) for more information.

Other things you need to let us know

You must let us know if:

  • You change your address or bank account details
  • Someone becomes dependent on you for financial support, or is no longer dependent on you
  • You return to work

When you will get paid

Once we’ve accepted your claim, we pay into your nominated bank account each fortnight.

We will send you a Pay As You Go (PAYG) summary at the end of the financial year to include in your tax return.

The 2020 pay dates for eligible clients.

  • 8 April
  • 22 April
  • 6 May
  • 20 May
  • 3 June
  • 17 June
  • 1 July
  • 15 July
  • 29 July
  • 12 August
  • 26 August
  • 9 September
  • 23 September
  • 7 October
  • 21 October
  • 4 November
  • 18 November*
  • 2 December
  • 16 December
  • 30 December

*2020/21 tax rate adjustment takes effect

Tax rate adjustment for 2020-2021

The Australian Taxation Office (ATO) has recently adjusted tax rates for the 2020/21 financial year. This is in line with the changes to personal income tax thresholds announced in the Federal Budget.

If you are receiving the following benefits from the TAC, these new tax rates will apply to you:

  • Loss of Earnings (LOE)
  • Dependent Surviving Partners Benefit
  • Dependent Surviving Child Benefit

If you are receiving a Partial Loss of Earning Capacity (LOEC) benefit, the adjusted tax rates may also change the amount you receive from the TAC. This is because you have a capacity to work.

These tax changes will come into effect from the fortnightly payment cycle starting 9 November 2020. The TAC will process these payments on Monday, 16 November 2020. Clients should receive their payment by Wednesday, 18 November 2020.

The adjusted tax rate does not change the gross amount we have agreed to pay you. It may change the amount of tax we withhold from your payment, which could change the amount of net pay you receive.

You will receive a tax credit for any extra tax withheld from your payments before our system update. This tax credit will apply when you lodge your 2020–21 income tax return with the Australian Tax Office.

What happens if your certificate is late

We know that sometimes things don’t go to plan. If we’re satisfied that you tried to send us your Certificate of Capacity on time, we may be able to pay you outside the normal payment cycle. Please call us on 1300 654 329 (Monday to Friday, 8.30am to 5:30pm) for more information.

What happens if you go back to work part-time

If you return to work part-time or on reduced hours, we can make partial income support payments to you.

Find out how we work out how much to pay you if you go back to work on reduced hours

We will need a Certificate of Capacity from your doctor that tells us what you can do at work.

To work out how much to pay, we need a copy of your profit and loss statements. You can send these to us using myTAC.

Many people find getting back to work plays a big part in their recovery. When you are ready, we’re here to support you get back to work as quickly and safely as possible.

See Return to work support for more details about the resources available to you.

How to apply

Step 1

If you haven't already, you will need to talk to us about your eligibility for income support. You can call us on 1300 654 329 (Monday to Friday, 8.30am to 5:30pm).

When we talk to you, we will ask you for some information, such as:

  • Your business name
  • Type of business
  • ABN
  • Contact details for your accountant
  • Details about what you earned before the accident
  • If you have financial dependent(s), their name, date of birth and relationship to you (e.g. wife/husband, partner, child)
  • Bank account details

We will use this information to work out if you are eligible for income support.

Step 2

To work out your income support rate, we need you to send us:

  • Personal income tax records for the 3 years before your accident
  • Business Activity Statements (if applicable)
  • A completed Tax File Number (TFN) declaration form. We need to receive this within 14 days or, by law, we must tax your income support at the highest tax rate. Please email the completed TFN declaration form to tfn@tac.vic.gov.au

If you hire someone to do your work

If you hire someone to do your work while you are injured, we need this information to work out if you are eligible for income support:

  • A Certificate of Capacity from your doctor
  • The name and contact details of the person you have employed to do your work
  • Written or verbal confirmation that the person is doing work that you would normally do
  • Payslips or invoices showing gross pay and hours worked by the person
  • Proof of payment, such as a copy of bank statements, bank transfers or cheque butts
  • If the person worked for you before your accident, we will also need a record of all wages paid to them in the 12 months before your accident

Forms and brochures

These forms and brochures relate to income support. For other TAC documents, please visit the forms and brochures page.

Coronavirus update

The TAC is unable to send or receive hard copy documents at this time. We have some different options for you to send us forms, documents or receipts for reimbursement.

Please choose an option below for more information.

Reimbursements

  • myTAC
    Please use our app or web portal, myTAC to ask for reimbursements. Go to upload documents > reimbursement form and send us a photo of your receipt or proof of payment and a description of what you've paid for.
  • Email
    If you can't use myTAC to send your receipts, please take a photo and email it to us at info@tac.vic.gov.au. Include your claim number in the subject line of your email so we can process your request.

Forms and documents

  • myTAC
    Please use our app or web portal, myTAC to send forms or documents. Go to upload documents > submit documents and send us a photo of your form or document.
  • Email
    If you can't use myTAC to send your forms or documents, please take a photo and email it to us at info@tac.vic.gov.au. Include your claim number in the subject line of your email so we can process your request.

TAC income support forms

Travel to work reimbursement form

Use this form to claim expenses for travel to work by private car, public transport or taxi.

Please note that you need approval from the TAC before you travel by taxi.

TAC income support fact sheets

If you have a question about income support, please call us on 1300 654 329 (Monday to Friday, 8:30am to 5:30pm) or email info@tac.vic.gov.au

I have financial trouble and need money now - what can I do?

If you need urgent financial help, please call us on 1300 654 329 (Monday to Friday, 8.30am to 5.30pm).

Can I get my accountant to contact you?

Yes. We encourage your accountant to speak with us to move things along.

We need your permission to speak to your accountant. If you haven't already, you will need to sign and send us an Authority to Release Information form. This form gives us permission to talk to others about your claim.

How long can I get income support?

Most people only need income support for a short time. We can pay when your transport accident injuries stop you from going back to work.

We can pay income support for up to 18 months. This time starts from the date of your accident, or when your injury first appears.

If you have reached or are within 1 year of reaching retirement age in your occupation, income support may only be available for 12 months. See 'How long are loss of earnings benefits payable for?' for more information.

We will review your progress and your ability to return to work. We may ask you to go to a medical examination so we can better understand your options and ability to return to work.

If, after 18 months you can't go back to work, you may be eligible for a loss of earnings capacity benefit.

I have income protection paid by my insurer. Can I get TAC income support?

Yes. It is the TAC's responsibility to pay eligible people income support.

You should let your insurer or broker know if you get income support from the TAC.

Can I get income support if I go back to work part-time or on reduced hours?

Yes. We will still make temporary payments to you while you recover enough to return to your normal hours.

The amount we pay will depend on how much you earn when you go back to work.

You must let us know if you return to work.

Because of the accident, my business has stopped. How will you assess my income?

If you're in a business partnership, we work out your income by looking at your share of the profit. In some cases, we may also look at your physical contribution to the business. For example, if you run a cleaning business and do all the physical work, we will take this into account.

In some cases, we can pay for the cost of hiring someone to do the work you can't do.

What should I do if I haven't lodged my tax return for this year?

We work out your income support benefit by looking at your income for the most recent financial year.

If this is not possible, we can accept information from the previous financial year.

How do I prove my income if my business is new?

We can use a profit and loss statement prepared by your accountant to work out your income support.

Income support for self-employed people - FAQ

If you have a question about income support, please call us on 1300 654 329 (Monday to Friday, 8:30am to 5:30pm) or email info@tac.vic.gov.au

I have financial trouble and need money now - what can I do?

If you need urgent financial help, please call us on 1300 654 329 (Monday to Friday, 8.30am to 5.30pm).

Can I get my accountant to contact you?

Yes. We encourage your accountant to speak with us to move things along.

We need your permission to speak to your accountant. If you haven't already, you will need to sign and send us an Authority to Release Information form. This form gives us permission to talk to others about your claim.

How long can I get income support?

Most people only need income support for a short time. We can pay when your transport accident injuries stop you from going back to work.

We can pay income support for up to 18 months. This time starts from the date of your accident, or when your injury first appears.

If you have reached or are within 1 year of reaching retirement age in your occupation, income support may only be available for 12 months. See 'How long are loss of earnings benefits payable for?' for more information.

We will review your progress and your ability to return to work. We may ask you to go to a medical examination so we can better understand your options and ability to return to work.

If, after 18 months you can't go back to work, you may be eligible for a loss of earnings capacity benefit.

I have income protection paid by my insurer. Can I get TAC income support?

Yes. It is the TAC's responsibility to pay eligible people income support.

You should let your insurer or broker know if you get income support from the TAC.

Can I get income support if I go back to work part-time or on reduced hours?

Yes. We will still make temporary payments to you while you recover enough to return to your normal hours.

The amount we pay will depend on how much you earn when you go back to work.

You must let us know if you return to work.

Because of the accident, my business has stopped. How will you assess my income?

If you're in a business partnership, we work out your income by looking at your share of the profit. In some cases, we may also look at your physical contribution to the business. For example, if you run a cleaning business and do all the physical work, we will take this into account.

In some cases, we can pay for the cost of hiring someone to do the work you can't do.

What should I do if I haven't lodged my tax return for this year?

We work out your income support benefit by looking at your income for the most recent financial year.

If this is not possible, we can accept information from the previous financial year.

How do I prove my income if my business is new?

We can use a profit and loss statement prepared by your accountant to work out your income support.

TAC income support and return to work