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2.4 Fortnightly Incapacity Payments Redeemed Under Section 30 of the SRCA
There is a specific exception in s30C(3) of the VEA for a lump sum payment made under section 30 of the SRCA.* These lump sum payments are made when the weekly amount of incapacity payment payable falls below a nominated amount and the person's degree of incapacity is unlikely to change. Under this section, a lump sum is calculated of fortnightly payments that otherwise would have ceased when the person attained Age Pension Age. A growth factor of 3 per cent is included in this calculation. In such cases offsetting ceases at Age Pension Age and a review must be set to lift the offset amount from when the person attains Age Pension Age.
*Note: The relevant section of the VEA (30C) refers to age 65, whereas section 30 of SRCA refers to Age Pension age. This apparent anomaly is currently under review.