30.6.2 Potential for overpayments when paying interim incapacity

Provision of 'interim' payments at statutory rates nevertheless carries with it, some risk: i.e. that the eventual Commonwealth Superannuation Corporation decision will grant a relatively large pension (i.e. an A or B class superannuation pension back-paid to the date of discharge). A relatively large pension may (through the action of S20, 21 etc.) reduce the SRCA compensation entitlement to a level below the rate of interim payments. The client will in fact have received an overpayment, which must be recovered.

S114(1)(b) requires repayment of any 'amount of compensation that has been paid under this Act' which 'should not have been made'. There is no discretion for a delegate to ignore the matter. Furthermore, formal waiver or write-off are not viable options in such cases, particularly in view of the advice to clients on this risk, as specified at 30.6.3 on the next page.