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2.7.3 Compensation Offsetting

2.7.3.1An overpayment of DP may occur if a pensioner receives DP and compensation from another source (or is awarded damages at law) for the same disability. This is the major cause of DP overpayments. Disabilities accepted under section 70 VEA as defence-related disabilities, and those accepted under section 9 VEA as being service-related, are affected.

2.7.3.2The legislative bar to receiving DP and compensation (often from the Department of Defence or as third party damages) for the same disability is contained in section 74 VEA through to section 78 VEA (Part IV VEA) and Division 5A VEA (Part II VEA). If waiver or write-off is to be considered, the delegate should adhere strictly to the guidelines in this manual's Sections 7.16 to 7.18.

2.7.3.3Compensation offsetting also applies to DVA war widows/widowers who have dual eligibility for an overseas war widow's/widower's pension in respect of their veteran partner's death. In this circumstance, the war widow's/widower's pension paid by DVA is reduced dollar for dollar by the overseas pension. Examples include composite limitation and EATS war widows.