TAC income support and return to work (webpage)
This information sheet explains what happens to your TAC income support when you go back to work.
If you return to any form of work, you must let us know so that we can review your income support. Please call us on 1300 654 329.
If you return to work at reduced hours
If you return to work at reduced hours, you may still be entitled to receive income support. We call this partial income support. How much we can pay depends on what you earn when you go back to work.
In general, we can pay 85% of the difference between what we worked out was your pre-accident weekly earnings and what you earn when you go back on reduced hours. For example:
|Gross pre-accident weekly earnings||$1,000|
|Gross earnings per week on reduced hours||$735|
|Gross amount we can pay||$225.25|
Your tax obligations
When your employer and the TAC pay you, the Australian Tax Office (ATO) considers you to have two sources of income.
We will deduct tax from your income support at the rate you selected on your Tax File Number (TFN) declaration form.
We recommend that you speak with the ATO or your financial advisor for advice about your tax obligations when you have two sources of income.
You can choose to change the rate of tax which the TAC withholds at any time. To do this you will need to complete a new Tax File Number declaration form (please refer to Item 9 on the Tax File Declaration Form).
How we pay your partial income support
To work out how much partial income support to pay, we need payslips from your employer.
Please send us your payslips as soon as you get them from your employer. You can also ask your payroll to email them to us at email@example.com
We will work out your partial income support payment and pay into your nominated bank account.
Have the TAC pay your partial income support to your employer
If your employer agrees, we can pay your partial income support to them. Your employer can then pay your employment earnings and your TAC partial income support to you in one payment.
You should talk to your employer about this option. If they agree to this process, please complete the Authority to Pay Entitlements to Employer form, available on our website.
How to get more information
For information about TAC income support, please visit tac.vic.gov.au/income
If you have any further questions, please call TAC on 1300 654 329, and ask to speak with a member of the income team.