2.3.3 Examples of payability changes | Compensation and Support Reference Library, Overpayment Management Manual, Ch 2 What is an Overpayment?, 2.3 Changes in Payability

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2.3.3 Examples of payability changes

2.3.3.1Other examples where changes to payability may occur are:

  • change to income such as an increase in earnings
  • acquisition of new assets
  • child ceases to be a dependent child; or
  • person ceases to reside in a remote area.

Note:This list is not exhaustive.

2.3.3.2In all of the examples above, an overpayment occurs as a result of a retrospective reduction in pension, and not due to a loss of basic eligibility.

2.3.3.3Most overpayments constitute a loss of payability.

2.3.3.4It is important to realise that basic eligibility may be retained while the rate at which pension is payable may be reduced to NIL (e.g. where income or assets are in excess of the allowable limits). For service pension or income support supplement to be cancelled in these circumstances, a determination must be made by the Commission under section 56EC VEA.