Clearances

Before finalising a DCP grant or variation, VEA delegates should consider whether a clearance to the Offsetting team is necessary.

Delegates should use Task card number TC– 38 IL checks to determine potential for offsetting action available on the Compensation Claims Support Site – Task Cards tile for this process.

Where an Offsetting clearance is necessary, set the DCP payment to manual payment in R&C ISH. This allows the Offsetting team to process the payment in Process Direct.

When a clearance is necessary

A clearance to the Offsetting team may be necessary if the client received compensation from another source. This allows the Offsetting team to assess whether a reduction or offset is applied to the DCP, preventing overpayment of DCP. 

VEA delegates should check for compensation received from another source that has been paid for the same incapacity as the VEA condition(s).

For DCP at the special rate, TPI, TTI or intermediate rate - check for compensation received for the same incapacity as the VEA condition(s) as well as DRCA PI lump sums received for any condition, regardless of whether it’s the same incapacity.

The following compensation payments are subject to DCP offsetting:

  • MRCA incapacity payments

  • DRCA payments including:

  • Lump sum permanent impairment payments, sections 24, 25 & 27 of the DRCA

  • Incapacity payments, sections 19, 20, 21, 21A, 22, 23, 31, 37(5), 131, 132 & 134 of the DRCA

  • Incapacity payments for loss of allowances, including sea going allowance, Timor allowance.

  • entitlements obtained under the predecessor Acts to the DRCA – the 1930 and 1971 Commonwealth Employee Compensation Acts
  • State workers’ compensation, for example Workcover
  • Private insurance payments, typically third-party claims following a motor vehicle accident
  • Court awarded damages and settlements; and
  • Criminal injuries compensation.

If the nature of the payment is unclear, clarification of the payment history details can be provided by Incapacity, DRCA Permanent Impairment, and Offsetting delegates. 

Establishing if compensation has already been paid

Establish if compensation has been paid previously by assessing:

  • Existing DCP offset in VIEW payments tab and VIEW comments tab - Disability Compensation electronic minutes.
  • Existing DCP offset in Process Direct Circumstances Data - Disability Compensation Payment screen and the Notes screen.
  • DRCA Permanent Impairment records in R&C ISH and Defcare, including payment records and case notes.
  • DRCA and MRCA Incapacity payment records in R&C ISH and Defcare, including payment records and case notes.
  • The client’s claim records in CM9. For example, the client may have declared receiving a third party compensation payment on a claim form, a letter or a medical report.

Third-party compensation

Third party claims can take many years to finalise. Ensure the DCP recipient is aware of their obligation to notify DVA if they receive, or become entitled to receive, any payment of compensation or damages from another source for a disability that DVA has accepted as service-related.

Claims affected by section 25A DCP offsetting

Compensation offsetting under section 25A applies to:

  • VEA claims or applications lodged on or after 1 July 2004 that result in the grant or increase to Special Rate, Temporary Special Rate, Intermediate Rate, Temporary Incapacity Allowance or Loss or Earnings Allowance and
  • A permanent impairment lump sum has been paid under s24, 25 or 27 of the DRCA for any condition.

Offsetting will occur for any compensation received by the client for permanent impairment under sections 24, 25 or 27 of the DRCA either before or after the start date for payment of the AGR Disability Compensation Payment or allowance.

Lump sums paid under the 1971 and 1930 Commonwealth Employees compensation Acts are not subject to s25A offsetting.

For more information, refer to:

 

 

 

 

Source URL: https://clik.dva.gov.au/node/86563