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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 the age of 65.  A growth factor of 3 per cent is included in this calculation.  In such cases offsetting ceases at 65 and a review must be set to lift the offset amount from the person's 65th birthday.