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3 General Rate Offsetting for Periodic Compensation Payments


The VEA compensation offsetting provisions provide that there is a dollar for dollar reduction in the fortnightly amount of pension paid, if the other compensation is paid in respect of the same incapacity from that injury or any other injury, disease or death.  (s30D & s74(2))  As a disability pension is paid fortnightly other compensation needs to be similarly expressed to enable offsetting to occur.  Other periodic compensation may be paid weekly or monthly.

Note - Offsetting cannot reduce a disability pension to below zero and does not effect the payment of veterans supplement.




Step 1 - Identify the dollar amount of disability pension paid in respect of the incapacity for which other compensation is paid.[2]

A notional assessment may be required if the rate of disability pension includes incapacity from conditions not included in the other compensation - refer to page 15 for notional assessment steps.

[2] (go back)



Step 2 - Identify the fortnightly amount of other compensation paid.

For this purpose the gross payment is used, ie before tax.


Step 3 - Compare the dollar amounts from Step 1 and Step 2; the lesser is the amount by which the disability pension is offset.


Step 4 - The offset amount is manually entered into the PIPS payment system, Disability Pension Screen/PTIV.  This offset amount is indexed by CPI and at the same time as disability pension is increased.

Step 1 - Veteran A receives 70% disability pension per fortnight ($284.48) for incapacity for a lower back condition, only A/D.


Step 2 - Veteran A is also receiving $1,185.20 (gross) incapacity payments per fortnight for the lower back condition.


Step 3 - Disability pension is fully offset as the incapacity payment exceeds the 70% disability pension rate.


Step 4 - The amount equal to the current 70% rate is manually entered into the PIPS payment system, Disability Pension Screen/PTIV indexed field.[3]

When the periodic incapacity payment is lesser:

  1. record as a non-indexed amount;
  2. a non-indexed offset should be varied at the same time and at the same rate as the amount of periodic compensation;
  3. a review of the offset is necessary if the amount of periodic compensation subsequently exceeds the notional assessment amount.
[3] (go back)





Veterans' Entitlements Act 1986.