Policy

There is strong medical evidence to support the theory that the majority of musculoskeletal conditions benefit from a regular, long-term exercise program. The department therefore encourages home based exercise programs monitored by the client's treating physiotherapist or exercise physiologist. This may be enhanced by the provision of small items of home exercise equipment.

The guidelines outlined in section 10.7.6 of this Library must be followed when considering provision of home exercise equipment.

The only circumstances under which an individual gym/pool membership could be considered, would be as a short-term (no more than 3 months), one-off activity under a psychosocial or vocational rehabilitation plan.

Anomalous situations

Bankruptcy

When a person becomes bankrupt management of their assets and debts passes to the Official Receiver in Bankruptcy or Trustee. The person’s assets may be used to repay debts. The bankruptcy of a client affects DVA’s methods of recovery. Any debt incurred before the date of the bankruptcy is subject to restrictions on its recovery under the Bankruptcy Act 1966.

Alternative methods of recovery

Where the preferred methods are not available a number of alternatives are permitted under the MRCA and DRCA, including:

• repayment in instalments;
• third-party payments; or
• civil recovery.

Repayment by instalments

Under the DRCA and the MRCA there are no provisions for the wages of claimants to be garnished. The only regular payments that can be reduced are those paid by DVA for compensation under the DRCA or the MRCA.

Penalties for enforcing recovery

There are no provisions under the MRCA and DRCA that allow for any financial penalties, such as penalty interest or administrative charges, to be applied to an overpayment.

Preferred methods of recovery

DVA allows the following methods of recovery with regard to MRCA and DRCA debts in order of preference:

• one off payment of full amount; or
• one off payment of discounted amount; or
• reductions in compensation payments over time.

One off payment of full amount

Recovery of an overpayment in a one off lump sum is the most efficient and economical method for the Commonwealth. 

Limits on recovery

For DVA

There are no statutory time limits for the recovery of overpayments in the MRCA or DRCA. Section 415 of the MRCA and section 114 of the DRCA allow the MRCC and Commonwealth respectively to take certain actions to recover any overpayment.

The principles of recovery

It is important that the individual circumstances of the client and relevant reasons and circumstances surrounding the overpayment are not assumed. In most circumstances it is likely to be distressing for a client to discover that they have been overpaid and that they may/will be the subject of recovery action.  Delegates should be aware of this and handle overpayment cases in a sensitive manner. 

Waiver

What is a waiver?

Under the section 206(1)(b) of the VEA, the Commission has a broad discretion to waive the right of the Commonwealth to recover the whole or part of an overpayment. A determination to waive a debt under section 206(1)(b) must be made in writing. This has the effect of permanently extinguishing the debt that arose from overpayment.

Who can perform a waiver?

Only a person at particular level is delegated to waive a debt under s 206(1)(b) on behalf of the Commission.

Write off

What is a write off

A determination to write off a debt must be made in writing under section 206(1)(b) of the VEA. A decision to write off a debt means that any recovery action ceases. Such a decision is made where circumstances make debt recovery not favourable or legally practicable. A write off does not extinguish the debt and it may be pursued at a later date should the debtor’s circumstances become more favourable.