Checking of Compensation Payments

Compensation payments and other areas that may have an interest

If the claimant or their partner notifies that they are in receipt of compensation or damages, it is important to check what other entitlements are received from other areas of DVA, as these payments may be affected by the compensation paid.

Fortnightly incapacity and lump sum payments made by [glossary:the:] [glossary:Military Compensation and Rehabilitation Service:Def Military Compensation & Rehabilitation Service (MCRS)] under the Safety, Rehabilitation and Compensation Act 1988 award are the most common source of compensation that requires payments to be offset under the VEA. Other sources of compensation include:

• Incapacity payments made by the Military Compensation and Rehabilitation Service under the Military Rehabilitation and Compensation Act 2004
• Comcare – administers the SRCA and the Occupational Health and Safety Act 1991
• State Workers' Compensation Boards, eg WorkCover
• Private insurance companies, eg after a third party claim regarding a motor vehicle accident
• Criminal injuries compensation
• Award of damages by a court

Liaison with either the Rehabilitation and Compensation or Health areas within DVA may be required so the correct rate of income support payment can then be calculated.     

Limitations on DVA payments due to compensation from another source must be applied where applicable before the effect on income support pension can be calculated.    

Compensation for health treatment costs

Treatment Card holders who receive compensation payments for medical expenses may be subject to recovery of medical costs incurred by DVA. Refer cases where a lump sum compensation payment is received by a treatment card holder to the section 93 Cost Recovery Officers in the Rehabilitation and Compensation Group.

Veterans' Compensation and Military Compensation

A veteran or member of the forces who receives a compensation payment under the VEA, SRCA or MRCA may be affected by compensation payments where:

• compensation is received from another source for the same medical condition as VEA, SRCA or MRCA compensation payments are paid, or
• compensation is received from another source as compensation for loss of earnings and VEA, SRCA or MRCA compensation payments include payments for loss of earnings e.g. special rate (T&PI) disability pension (VEA) or Special Rate Disability Pension (MRCA) or other above general rate payments.

A VEA war widow/widower or MRCA surviving dependant partner may be affected by compensation payments where:

• compensation is received from another source by a war widow/widower or MRCA surviving dependant partner for the death of their veteran partner e.g. Dust Disease Board compensation payments.

Compensation paid to partner when partner paid by Centrelink

Request details of the effect of compensation from Centrelink, so that the amount of excess compensation, if any, can be calculated and applied to the claimant's payment when:    

• a veteran has applied for invalidity service pension, but not age pension or age service pension,
• notification is received that a compensation claim has been made or settled, and
• the person's partner receives a payment from Centrelink