4Definition of compensation

#### 4 Definition of compensation (1) Subject to subsection (2), for the purposes of this Act, compensation is: (a) a payment of damages; or (b) a payment under a scheme of insurance or compensation under a law, including a payment under a contract entered into under such a scheme, but not including a payment under such a scheme to which the recipient has contributed; or (c) a payment (with or without admission of liability) in settlement of a claim for damages or a claim under an insurance scheme of a kind to which paragraph (b) applies; or (d) any other compensation or damages payment, other than a payment under a scheme to which the recipient has contributed; that is made in respect of an injury to a person (whether or not the payment is made to that person). (2) For the purposes of this Act, compensation does not include: (a) a payment by an individual who is not insured or otherwise indemnified for liability in respect of the injury in question, and who is not required by law to be so insured or indemnified; or (b) a payment in the nature of criminal injuries compensation; or (c) an amount paid that is not required to be paid by or under an Australian law, other than such an amount the payment of which (whether on its own or in conjunction with other such payments) has the effect of extinguishing by agreement a claim for compensation; or (e) a payment of a kind, or in circumstances, prescribed by the regulations made for the purposes of this paragraph. (3) For the purposes of paragraph (2)(a), an individual is taken to be insured or otherwise indemnified for liability in respect of the injury in question if: (a) the individual is a member of a representative organisation; and (b) the representative organisation could, in performing its function of making payments in respect of amounts of compensation that its members are liable to pay, make a payment in respect of the liability of the individual.