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8.7.6 How to recover social security overpayments

8.7.6.1The following example illustrates how and from whom overpayments are recovered where the social security payment of a veteran and a spouse has been overpaid because of adjusted DP arrears and where DFISA is payable to both.

Veteran

Partner

Scenario

$10,000 DP arrears

$2,000 Age pension overpayment

$2,000 DFISA arrears

$2,000 Age pension overpayment

$2,000 DFISA arrears

Calculation

The amount to be released to the veteran is calculated as follows:

  1. DP arrears minus veteran and spouse overpayment/s = DP arrears released
    ($10,000 - $4,000 = $6,000)
  2. Veteran DFISA arrears + veteran DP arrears released = total amount released to veteran
    ($2000 + $6,000 = $8,000)

The partner's overpayment is recovered from veteran's DP arrears.

Amount released to partner = partner's DFISA arrears ($2,000)