8.1 Offsetting
Compensation offsetting is the process of reducing one compensation payment in recognition of another compensation payment for the same incapacity or death. The underlying principle behind these provisions is that a person should not be compensated twice for the same incapacity, when a person in a similar circumstance can only receive one source of compensation if only eligible from that source.
Generally this principle applies to any award of compensation or damages from another source contributing to the same incapacity or death for which the VEA payment is being paid. Staff have no discretionary power not to apply these principles. The payments that are affected under Compensation Offsetting are:
- Disability Pension
- War Widow/er's Pension
- Single and Double Orphan's pensions
- Specific Disability Allowance (section 27)
– Loss of Earnings section 25A
Source URL: https://clik.dva.gov.au/military-compensation-reference-library/compensation-offsetting-manual-payment-team-procedures/part-8-overview-compensation-offsetting-relevant-legislation/81-offsetting