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8.3.1 Overview clearance process is used to prevent dual payments or excess retrospective payments when clients transfer between departments, are granted pension retrospectively or have their pension rate increased retrospectively. There are two principle purposes of the clearance process:

  • to prevent dual payments by agencies when clients of one agency apply for income support payments from the other agency. In other words, the clearance process ensures that the 'losing' agency's payments cease from the date on which the 'gaining' agency commences payment
  • to ensure that any income support pension paid by Centrelink is retrospectively decreased when backdated amounts that are regarded as income under the SSA are paid to clients by DVA. Retrospective reductions will only occur if a person's overall income exceeds the ordinary income free area. The clearance process allows for retrospective reduction in social security payments for periods of overlap. Grants or increases of DVA disability pension are income for income support payments paid by Centrelink.