2.4 Fortnightly Incapacity Payments Redeemed Under Section 30 of the SRCA

There is a specific exception in s30C(3) of the VEA for a lump sum payment made under section 30 of the SRCA.*  These lump sum payments are made when the weekly amount of incapacity payment payable falls below a nominated amount and the person's degree of incapacity is unlikely to change.  Under this section, a lump sum is calculated of fortnightly payments that otherwise would have ceased when the person attained [glossary::469].  A growth factor of 3 per cent is included in this calculation.  In such cases offsetting ceases at [glossary::469] and a review must be set to lift the offset amount from when the person attains [glossary::469].

*Note: The relevant section of the VEA (30C) refers to age 65, whereas section 30 of SRCA refers to Age Pension age. This apparent anomaly is currently under review.