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CM6416 Processing Offsetting Cases Under the VEA

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REPATRIATION COMMISSION GUIDELINES

Background

Sections 30C, 30D and 74 of the Veterans Entitlements Act 1986 (VEA) authorise the Repatriation Commission to offset certain VEA payments where a client has received other compensation which is considered to duplicate the VEA payment.  These offsetting arrangements have been in place for approximately 40 years.

The recent Full Federal Court decision in The Commonwealth of Australia v Smith [2009] FCAFC 175 (Smith) prompted the Commission to look at how offsetting has operated.

Following examination of the Smith decision and the consideration of external legal advice as to its implications, the Commission does not consider a change to offsetting is warranted.  The Commission considers that Smith has limited application due to the unique factual circumstances of the case.

The Commission will continue to offset certain VEA payments consistent with the long-standing principle of preventing dual compensation.

Commission decision

The Commission has decided that the processing of compensation claims, including the offsetting of benefits under sections 30C, 30D and 74 of the VEA, will continue in accordance with current policies and procedures as set out in Part 9.10 of the CLIK Compensation and Support Policy and Procedure Libraries.

Contact

Any queries about this guideline should be directed to Sam Underdown, Director, Costings and Implementation Section, on extension 16413.

[signed]

Ian Campbell

President

Repatriation Commission

11 August 2010