Limits on recovery

Limits on recovery

For DVA

Section 206(2) of the VEA places a time limit on the recovery of overpayments by way of court proceedings. DVA has six years, from the first day on which an officer becomes aware, or could reasonably be expected to have become aware, of the circumstances that gave rise to the debt, to commence court proceedings for recovery of overpayments. If court proceedings have not been commenced within this six year period, DVA cannot recover a debt through court proceedings.

Note that DVA is not prevented from seeking to recover an overpayment after six years, however, it will be prevented from doing so through the commencement of legal proceedings.  The effect is that if, after this 6 year period, the person who owes a debt does not voluntarily offer to repay the debt, and the only option is to seek a  court order (such as a garnishee order), then the limitation period will apply to bar DVA from commencing court proceeding to obtain that order.

Where deductions have already commenced in relation to an overpayment of a DVA client, subsection 205(3) allows for the continuation of these deductions to recover the debt despite the 6 year limitation period for the institution of proceedings having expired.

For veteran or dependant

A person does not have a right of review for a recovery decision under section 57 of the VEA. However, a client may seek a review of the decision that gave rise to the overpayment, i.e. the decision to retrospectively reduce the rate of payment and the date on which this reduction takes place.