The VEA compensation offsetting provisions provide that there is a dollar for dollar reduction in the fortnightly amount of pension paid, if the other compensation is paid in respect of the same incapacity from that injury or any other injury, disease or death. (s30D & s74(2)) As a Disability Compensation Payment is paid fortnightly other compensation needs to be similarly expressed to enable offsetting to occur. Other periodic compensation may be paid weekly or monthly.
Note - Offsetting cannot reduce a Disability Compensation Payment to below zero and does not affect the payment of veterans supplement.
STEPS | EXAMPLE |
Step 1 - Identify the dollar amount of Disability Compensation Payment paid in respect of the incapacity for which other compensation is paid.[2] A notional assessment may be required if the rate of Disability Compensation Payment includes incapacity from conditions not included in the other compe — nsation - refer to page 15 for notional assessment steps. [2] (go back)
Step 2 - Identify the fortnightly amount of other compensation paid. For this purpose the gross payment is used, ie before tax.
Step 3 - Compare the dollar amounts from Step 1 and Step 2; the lesser is the amount by which the Disability Compensation Payment is offset.
Step 4 - The offset amount is manually entered into Advance, Disability Compensation Payment Summary Screen/PTIV. This offset amount is indexed by CPI and at the same time as Disability Compensation Payment is increased. | Step 1 - Veteran A receives 70% Disability Compensation Payment per fortnight ($284.48) for incapacity for a lower back condition, only A/D.
Step 2 - Veteran A is also receiving $1,185.20 (gross) incapacity payments per fortnight for the lower back condition.
Step 3 - Disability Compensation Payment is fully offset as the incapacity payment exceeds the 70% Disability Compensation Payment rate.
Step 4 - The amount equal to the current 70% rate is manually entered into Advance, Disability Compensation Payment Summary Screen/PTIV indexed field.[3] When the periodic incapacity payment is lesser:
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