2.3.1 Overview of Centrelink Clearance

Stages of a Centrelink Clearance

This chapter sets out the procedures for the following aspects of a Centrelink Clearance:

• when to request a Centrelink Clearance    
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  Procedure Library – When to Request a Centrelink Clearance

  Section 2.3.2

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• completing the Centrelink clearance request form     
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  Procedure Library – The Centrelink Clearance Request

  Section 2.3.3

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• communication between DVA and Centrelink     
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  Procedure Library – Communication Between DVA and Centrelink

  Section 2.3.4

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• recovery of clearance-related overpayments     
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  Procedure Library – Recovery of Overpayments

  Section 2.3.5

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• potential problems with the cut-off date     
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  Procedure Library – Potential Problems with the Cut-off Date

  Section 2.3.6

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Reason for a Centrelink clearance

The Centrelink clearance process ensures that:

• the losing agency's payments are cancelled or varied from the date on which the gaining agency commences payment, and
• when a retrospective grant or increase of a DVA pension is made to a Centrelink income support recipient, the backdated amounts are adjusted to account for any overlapping payments.

Ensuring payment of correct entitlements

The clearance process ensures that the customer is paid their correct entitlements in that:

• the losing agency's payments are cancelled from the date on which the gaining agency commences payments to ensure that dual payments do not occur; and
• when a retrospective grant or increase of a DVA disability pension is made to a customer receiving a Centrelink payment (income support and/or pension), the backdated amounts are adjusted to account for any overlapping payments.

Cancellation of payment

A cancellation occurs where there is no entitlement to dual payments. Where a transfer from one agency to another occurs, the losing agency's payments are cancelled from the date on which the gaining agency commences payments.

Adjustment to a payment

Adjustment to a payment occurs when entitlement to dual payments does exist and the DVA payment affects the amount of Centrelink payment under the income test provisions. Where a retrospective grant or increase in DVA disability pension is made to a Centrelink income support recipient, the Centrelink payment is adjusted from date of grant or variation of the disability pension, to take into account the new amount of disability pension payments under the income test.

Centrelink's National Clearance Centre

Centrelink has consolidated all DVA clearance processing work through a National Clearance Centre.