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4.8 If an Obligation Notice was Issued
4.8.1 — If an obligation advice has been issued it is necessary to establish:
- if there was a breach of whichever Act is relevant at the time
- what section of the Act was breached.
4.8.2 — Once a breach has been established, the commencement and end dates for the overpayment period can be determined.
4.8.3 — Where a loss of eligibility has occurred, be aware that under the Repatriation Act 1920 if a person met their obligations and advised of the change within the 14 day period then no overpayment should be raised, even if it took 12 months to effect the cancellation.
4.8.4 — However, under the VEA, if a person advises in time, but a delay in processing causes them to continue to receive payments for some time, a recoverable overpayment exists for the amount paid from the day after the end of the notification period (14 days, or 28 days if living overseas or receiving remote area allowance).
4.8.5 — If an overpayment is increased because the Department failed to action advice from a pensioner in a timely manner, a delegate may use his/her discretion to waive the portion of the overpayment caused by administrative delay (refer to this manual's Section 7.18 Waiver).
4.8.6 — Where a pensioner has complied with their obligations under section 54 VEA, section 56 VEA allows for the income support payment to be reduced from the day after the end of the notification period.
4.8.7 — Where a pensioner has not complied with their obligations under section 54 VEA, subsection 56A(1) VEA and section 56B VEA allow a reduction or cancellation to take effect from the day of event.