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Incapacity Payments – Recovery of veteran payment

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If incapacity payments are determined to be payable, Veteran Payment must be cancelled.

For further details about restrictions on dual payments, please see: Payment.

Veteran Payment paid to a current or former member of the ADF will be recovered from incapacity payments only if the current or former member was receiving Veteran Payment in a period in which incapacity payments are determined to also be payable.

If the current or former member has outstanding debts to the Department, then the existing debts are recovered from incapacity payment arrears before Veteran Payment.

If:Then:
Examples and further information are provided in the below table

A person was receiving Veteran Payment and their claim(s) for a mental health condition were rejected.

Veteran Payment is not recovered.
A person was receiving Veteran Payment before their claim for incapacity payments was accepted and no debts exist.

Veteran Payment will be recovered for any overlapping period in which incapacity payment is payable, and Veteran Payment has been paid.  The recovery amount will not exceed the amount of incapacity payment arrears.

A person was receiving Veteran Payment before their claim for incapacity payments was accepted and the person has outstanding debts.

The outstanding debts will be recovered first.  Remaining arrears will be used to recover Veteran Payment for any overlapping period in which incapacity payment is payable, and Veteran Payment has been paid (this may lead to Veteran Payment only being partially recovered or not at all).  The maximum amount of Veteran Payment to be recovered is the remaining amount of incapacity payment arrears available after all other debts have been recovered.

A person was receiving Veteran Payment and does not progress to incapacity payments.

For example:

  • Their application for incapacity payments is rejected.

  • They make no claim for a DVA payment following Veteran Payment.

Veteran Payment is not recovered.

A partner of a current or former member of the ADF was receiving Veteran Payment.

Veteran Payment is not recovered.
 

 

Date of effect for cancellation of Veteran Payment where incapacity payments are granted

Date of effect for cancellation of Veteran Payment

VEA 45SB (7)

The date of effect for the cancellation following a grant of incapacity payments of Veteran Payment will be the day after the action is taken to cancel Veteran Payment.  This will ensure that dual payments are prevented.

Example: Adam and his partner Georgia have been receiving Veteran Payment since 4 May and Adam’s claim for liability for a mental health condition was accepted by DVA on 25 May.  Medical evidence meant that Adam’s incapacity payments were backdated to 10 May.

Action is taken to cancel Adam’s and Georgia’s Veteran Payment on 7 June, with the cancellation taking effect one day later on 8 June.  The recoverable amount from incapacity arrears is only Adam’s Veteran Payment from 10 May to 7 June.  The remainder of the Veteran Payment, being the amount paid from 4 May (commencement of Veteran Payment) to 9 May (day prior to commencement of incapacity eligibility,) is not recovered.

 

Adam’s Veteran Payment and incapacity payment eligibility milestone dates

 

4 May

9 May

10 May

25 May

7 June

8 June

Veteran payment

y

y

y

y

y

 

Incapacity Payments

 

 

y

y

y

y

Recoverable Period

 

 

y

y

y

 

 

Partner’s payments are not recovered

There is no recovery of any Veteran Payment made to the partner from the current or former member’s incapacity payments.

This also applies where both members of a couple are current or former members of the ADF with outstanding liability claims for mental health conditions.  In this situation, both members of the couple are eligible for the Veteran Payment in their own right.  Incapacity payments made in respect of one individual’s claims will not be used to recover Veteran Payments made to the other member of the couple.

The date of cancellation of a partner’s payment must be the same as the primary person’s date of cancellation.

Example: Action was taken to cancel Adam’s Veteran Payment on 7 June, taking effect of 8 June. As Georgia was receiving Veteran Payment as Adam’s partner, her payment was also cancelled on 7 June (effective 8 June) as she was no longer eligible (partners are required to be the partner of someone receiving Veteran Payment). Georgia’s payments are not be a debt and will not be recovered.