COMCARE OPERATIONAL ADVICE NO. 34
RECOVERY OF MONEY PAID UNDER THE SOCIAL SECURITY ACT
Branch Heads
State Managers
Majors
State Executive Officers
Situations occur from time to time where compensation claimants receive pension or benefits under the Social Security Act pending the outcome of a compensation claim. Those social security payments include sickness benefit, invalid pension, unemployment benefit etc.
Part XVII of the Social Security Act provides that the Department of Social Security (DSS) can recover the amount of pension or benefit paid from any arrears of compensation payable. In these circumstances, DSS may issue a NOTICE OF INTENT (under section 154(1)(a) of the Social Security Act) or a NOTICE OF CHARGE (under Section 154(1)(b)of that Act) to the relevant State Office. Examples of these types of Notices are attached.
A Notice of Intent is issued to indicate that DSS may wish to recover an amount of pension or benefit paid to an employee pending the outcome of the compensation claim. The effect of the Notice of Intent is to prevent Comcare from paying any arrears of compensation until DSS has been advised. DSS will then calculate the amount of pension or benefit repayable by Comcare to DSS and issue a Notice of Charge. Comcare must comply with that Notice of Charge.
In some circumstances, DSS will issue a Notice of Charge without having previously issued a Notice of Intent. Again, Comcare must comply with that Notice.
If you become aware that a person claiming compensation is also receiving a social security pension or benefit (but not Family Allowance or Family Allowance Supplement), you should advise the Compensation Recovery Section in DSS on ‑
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Sydney |
(02) 227 8699 |
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Melbourne |
(03) 615 6526 |
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Brisbane |
(07) 225 3577 |
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Adelaide |
(08) 224 2419 |
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Perth |
(09) 320 8602 |
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Hobart |
(002) 204 252 |
Where DSS issues a Notice of Charge, the decision‑maker in the State Office should calculate the total liability over the period of incapacity involved and deduct the amount claimed by DSS from that total liability. The resultant net amount is to be inserted in the determination as payable to the claimant. The refund to DSS is to be paid as a separate subsequent payment with the Section of Act field completed by inserting reference to Section 19. The claimant should be advised as to the basis for the calculations.
SUE HAMILTON
Deputy Chief Executive
27 June 1989
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CENTRAL BENEFITS OFFICE |
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MELBOURNE 3000 |
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MELBOURNE, 3001 |
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615 6555 |
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G.P.O. BOX 2859AA |
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MELBOURNE, 3001 |
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DX584 |
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MELBOURNE |
NOTICE UNDER SECTION 154 (1)(a) SOCIAL SECURITY ACT 1947
Your Reference:
Date of Incapacity:
WHEREAS you are or may become liable to make a lump sum payment or a series of periodical payments by way of compensation to
who was in receipt of pension at a time during the lump sum payment period or the periodic payments period I, a delegate of the Secretary of the Department of Social Security, inform you that I may wish to recover from you an amount equal to all or part of that compensation.
Your attention is drawn to section 154(3) of the Social Security Act which provides that, if you become liable to make a payment of compensation to which this notice relates you shall, within 7 days after becoming so liable or receiving this notice, whichever is the later, notify this Department in writing accordingly. Such notice can be given to the above address.
Your attention is also drawn to sections 154(4) and 154(7) of the Social Security Act, the effect of which is that, except in accordance with a decision of the Secretary, you shall not, after receiving this notice, make a payment of compensation to which this notice relates until you have paid an amount due to the Commonwealth under section 154.
Penalties of up to $2,000 in the case of a natural person or $10,000 in the case of a body corporate are provided for a breach of the above requirements.
If you have any questions about this notice, please contact this office and quote the reference number shown at the top of this notice.
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CENTRAL BENEFITS OFFICE |
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MELBOURNE 3000 |
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MELBOURNE, 3001 |
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615 6555 |
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G.P.O. BOX 2859AA |
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MELBOURNE, 3001 |
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DX584 |
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MELBOURNE |
NOTICE OF CHARGE
NOTICE UNDER SECTION 154 (1)(b) SOCIAL SECURITY ACT 1947
RE:
YOUR REF:
WHEREAS you are liable to make a lump sum payment or a series of periodical payments by way of compensation to
who was in receipt of pension at a time during the lump sum payment period or the periodic payments period I, a delegate of the Secretary of the Department of Social Security, inform you that I propose to recover from you $
Details concerning this amount are as follows:-
Lump sum payment period:
Periodic payments period:
Amount of pension paid to the abovenamed
person, and that person's spouse (if any),
during that period:$
Amount of periodical payments/compensation
part of lump sum payment payable by you after
receipt of a notice under section 154 of the
Social Security Act: $
Your attention is drawn to section 154 (5) of the Social Security Act which renders you liable to pay the amount of $ to the Commonwealth. Under section 154 (6), payment of this amount of the Commonwealth shall, to the extent of the compensation to the abovenamed person.
Your payment should be sent to the Collector of Public Moneys, Department of Social Security at the above address. Cheques should be marked "Not Negotiable". Please do not send cash through the mail. You must make sure that your payment is clearly marked with your name and address and reference .