You are here
188.8.131.52 Limits on recovery
Limits on recovery
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.
However, it is DVA policy not to commence legal proceedings to recover a debt that has arisen under DRCA or MRCA after the end of the six-year period that began on the day a DVA officer became aware, or could reasonably be expected to have become aware, of the circumstances that gave rise to a debt. This position is consistent with s 206(2) of the Veterans’ Entitlement Act 1986 (VEA). This policy ensures a consistent approach across the legislation.
For veteran or dependant
Under the MRCA, a determination made under section 415(4) to recover an overpayment is not an ‘original determination’ (subsection 345(2)(i)) that can be the subject of an own motion review (pursuant to section 347) or that can be reviewed by the Veterans Review Board (VRB). However, any determination as to the amount that should be recovered is an original determination (subsection 345(2)(i)) and can be reviewed both by another delegate or the VRB.
Under section 114 of the DRCA, an overpayment that has given rise to a debt to the Commonwealth can be recovered without a ‘determination’ being made by the MRCC or the Commonwealth. Decisions to recover an overpayment under s 114(2) are not merits reviewable under the DRCA. An exception to this arises where the MRCC makes a determination under subsection 114B(5)(a), which deals with the requirement to determine whether an overpayment of compensation has occurred as a result of a superannuation payment. These determinations can be the subject of an ‘own motion review’ under s 62 and are, potentially, merits reviewable.