Relevance of this question

This question is asking for the total amount of any deduction which should be made to the amount of compensation payable for permanent impairment as a result of a clearance from the Department of Veterans' Affairs (DVA).

The amount entered will be deducted from the amount of compensation calculated by the Permanent Impairment Calculator and will be separately shown as a Deduction for a DVA Payment in the Report generated by the Calculator.

The SRC Act recognises that some members of the Defence Force may have an entitlement to compensation both under the SRC Act and also under the Veterans' Entitlements Act 1986.  However, in such cases, s 115 of the SRC Act, Division 5A in Part II of the VEA and s 74 of the VEA come into operation to prevent double payment of compensation.

A deduction for a DVA payment should be distinguished from a deduction for:

  • a correction;
  • a prior interim payment; or
  • an overpayment.

s 115, SRC Act

Deduction of overpayments of repatriation pensions

115(1A)Where

(a)an amount of pension has been paid to a person under the Veterans Entitlement Act 1986 in respect of the incapacity or death of a veteran who has rendered operational service within the meaning of Part II of that Act; and

(b)that amount is not payable to that person by virtue of Division 5A of Part II of the Veterans Entitlements Act 1986;

that amount is recoverable from that person by deducting it from any amounts of compensation payable to that person under this Act in respect of the injury to, or death of, the veteran.

115(1)Where:

(a)an amount of pension has been paid to a person under the Veterans' Entitlements Act 1986 in respect of the incapacity or death of a member of the Forces, or a member of a Peacekeeping Force, within the meaning of Part IV of that Act; and

(b)that amount is not payable to that person by virtue of section 74 of that Act;

that amount is recoverable from that person by deducting it from any amounts of compensation payable to that person under this Act in respect of the injury to, or death of, the member.

115(2)For the purposes of subsection (1), a person authorised by the Repatriation Commission may, by writing signed by the person, certify that:

(a)an amount specified in the certificate has been paid by way of pension under the Veterans' Entitlements Act 1986 to a person specified in the certificate;

(b)that amount was paid in respect of the incapacity or death of a person specified in the certificate;

(c)the person referred to in paragraph (b) is or was a veteran within the meaning of Part II of that Act or a member of the Forces, or a member of a Peacekeeping Force, within the meaning of Part IV of that Act; and

(d)by virtue of Division 5A of Part II, or section 74, of that Act, the amount referred to in paragraph (a) is not payable to the person referred to in paragraph (a).

115(3)For the purposes of subsections (1A) and (1), a certificate under subsection (2) is prima facie evidence of the matters certified.

115(4)Nothing in this section prevents the recovery of an amount referred to in subsections (1A) or (1) otherwise than in accordance with that subsection, but such amount shall not be recovered twice.

s 30C, VEA

Section 30C of the VEA provides, in part:

Lump sum compensation payment

30C(1)If:

(a)a lump sum payment of compensation is made to a person who is a veteran or a dependant of the veteran; and

(b)the compensation payment is paid in respect of the incapacity of the veteran from injury or disease or the death of the veteran; and

(c)the person is receiving, or is subsequently granted, a pension under this Part in respect of the incapacity from that injury or disease or the death;

the following provisions have effect:

(d)the person is taken to have been, or to be, receiving payments of compensation at a rate per fortnight determined by, or under the instructions of, the Commonwealth Actuary;

(e)the person is taken to have been, or to be, receiving those payments for the period of the person's life determined by, or under the instructions of, the Commonwealth Actuary;

(f)the period referred to in paragraph (e) begins:

(i)on the day that lump sum payment is made to the person; or

(ii)on the day the pension becomes payable to the person;

whichever is the earlier day.

Note 1:Pensions under this Part are payable in respect of the incapacity of a veteran from a war-caused injury or disease or in respect of the death of the veteran (see section 13).

Note 2:A payment of arrears of periodic compensation is not a lump sum compensation payment (see subsection 30B(2)).

Lump sum payment—Safety, Rehabilitation and Compensation Act (section 137)

30C(2)If:

(a)a lump sum payment is made under section 137 of the Safety, Rehabilitation and Compensation Act 1988 to a person who is a veteran or a dependant of the veteran; and

(b)the payment is made in respect of the incapacity of the veteran from injury or disease or the death of the veteran; and

(c)the person is receiving, or is subsequently granted, a pension under this Part in respect of the incapacity from that injury or disease or the death;

the following provisions have effect:

(d)the person is taken to have been, or to be, receiving payments of compensation at a rate per fortnight determined by, or under the instructions of, the Commonwealth Actuary;

(e)the person is taken to have been, or to be, receiving those payments for the period of the person's life determined by, or under the instructions of, the Commonwealth Actuary;

(f)the period referred to in paragraph (e) begins:

(i)on the day that lump sum compensation payment is made to that person; or

(ii)on the day the pension becomes payable to the person;

whichever is the later day.

Note:Pensions under this Part are payable in respect of the incapacity of a veteran from a war-caused injury or disease or in respect of the death of the veteran (see section 13).

Lump sum payment—Safety, Rehabilitation and Compensation Act (section 30)

30C(3)If:

(a)a lump sum payment is made under section 30 of the Safety, Rehabilitation and Compensation Act 1988 to a person who is a veteran or a dependant of the veteran; and

(b)the payment is made in respect of the incapacity of the veteran from injury or disease or the death of the veteran; and

(c)the person is receiving, or is subsequently granted, a pension under this Part in respect of the incapacity from that injury or disease or the death;

the following provisions have effect:

(d)the person is taken to have been, or to be, receiving payments of compensation at a rate per fortnight determined by, or under the instructions of, the Commonwealth Actuary;

(e)the person is taken to have been, or to be, receiving those payments for the period until the person reaches 65;

(f)the period referred to in paragraph (e) begins:

(i)on the day that lump sum payment is made to the person; or

(ii)on the day the pension becomes payable to the person;

whichever is the later day.

Note:Pensions under this Part are payable in respect of the incapacity of a veteran from a war-caused injury or disease or in respect of the death of the veteran (see section 13).

...

s 74, VEA

Payments by way of compensation or damages

74(1)In this section, compensation includes:

(a)any payment in the nature of compensation; and

(b)any damages recoverable at law (including any amount paid under a compromise or settlement of a claim for damages at law), whether from the Commonwealth, a State, a Territory or any other person (whether within or outside Australia), in respect of injury to, or the death of, a person;

but does not include any amount that represents expenses incurred in medical or hospital treatment.

74(2)This section applies in relation to a member of the Forces, or a member of a Peacekeeping Force, in respect of the death of the member that was defence-caused, or the incapacity of the member from a defence-caused injury or a defence-caused disease if:

(a)a person is entitled, or 2 or more persons are each entitled, to receive payments by way of compensation in respect of the death of the member or of the incapacity of the member from that injury or disease; and

(b)subject to this section, pension under this Part is being paid or is payable to a person, or to each of 2 or more persons, in respect of the death of the member or to the member in respect of the incapacity of the member from that injury or disease.

74(3)For the purposes of this section, where:

(a)a lump sum payment by way of compensation (other than a lump sum payment mentioned in paragraph (3A)(a) or (3B)(a)) is made:

(i)to a person, being a member of the Forces or a member of a Peacekeeping Force, in respect of the incapacity of the member from injury or disease; or

(ii)to a person, being a dependant of a member of the Forces or of a member of a Peacekeeping Force, in respect of the death of the member from injury or disease; and

(b)that person is in receipt of, or is subsequently granted, a pension under this Part in respect of the incapacity of that member from that injury or disease, or the death of that member from that injury or disease, as the case may be;

that person shall be deemed, by reason of that payment by way of compensation, to have been, or to be, in receipt of payments, by way of compensation, on and after:

(c)the date of commencement of the period in respect of which his or her pension is, or becomes, payable; or

(d)the date on which the lump sum payment is made;

whichever is the earlier date, for the life of the person, at such rate per fortnight as is determined by, or in accordance with the instructions of, the Commonwealth Actuary, to be the equivalent of a lump sum equal to that lump sum payment and paid to the person on that earlier date.

74(3A)In this section, if:

(a)a lump sum payment is made under section 137 of the Safety, Rehabilitation and Compensation Act 1988 to a person who is:

(i)a member of the Forces or a member of a Peacekeeping Force, in respect of the incapacity of the member from injury or disease; or

(ii)a dependant of a member of the Forces or of a member of a Peacekeeping Force, in respect of the death of the member from injury or disease; and

(b)that person is in receipt of, or is subsequently granted, a pension under this Part in respect of that incapacity or death;

the person is taken to have been, or to be, in receipt of payments of compensation:

(c)that is determined by, or under the instructions of, the Commonwealth Actuary to be equivalent to the amount of that lump sum payment; and

(d)at the rate per fortnight for the person's life determined by, or under the instructions of, the Commonwealth Actuary; and

(e)beginning:

(i)on the day that lump sum payment is made to that person; or

(ii)on the day the pension becomes payable to the person;

whichever is the later day.

74(3B)In this section, if:

(a)a lump sum payment is made under section 30 of the Safety, Rehabilitation and Compensation Act 1988 to a person who is:

(i)a member of the Forces or a member of a Peacekeeping Force, in respect of the incapacity of the member from injury or disease; or

(ii)a dependant of a member of the Forces or of a member of a Peacekeeping Force, in respect of the death of the member from injury or disease; and

(b)that person is in receipt of, or is subsequently granted, a pension under this Part in respect of that incapacity or death;

the person is taken to have been, or to be, in receipt of payments of compensation:

(c)that is determined by, or under the instructions of, the Commonwealth Actuary to be equivalent to the amount of that lump sum payment; and

(d)at the rate per fortnight determined by, or under the instructions of, the Commonwealth Actuary for the period until the person reaches 65; and

(e)beginning:

(i)on the day that the lump sum payment is made to that person; or

(ii)on the day the pension becomes payable to the person;

whichever is the later day.

74(4)For the purposes of this section, a payment by way of compensation made on behalf of, or for the benefit of, a person shall be deemed to have been made to that person.

74(5)Where:

(a)an amount of damages payable to a member of the Forces or a member of a Peacekeeping Force, or to a dependant of such a member, is paid to the Commonwealth in pursuance of a notice under section 76; or

(b)the liability of the Commonwealth to pay damages to a member of the Forces or a member of a Peacekeeping Force or to a dependant of such a member, is, by virtue of section 77, to be deemed to have been discharged to the extent of a particular amount;

subsection (3) of this section applies to and in relation to the member or dependant as if pension commenced to be payable, or commences to be payable, only after the member or dependant has received payments by way of instalments of pension aggregating the amount referred to in paragraph (a) or (b), whichever is applicable, of this subsection.

74(6)In the application of subsections (8) and (9) in respect of the death of a member of the Forces or a member of a Peacekeeping Force:

(a)if payments by way of compensation in respect of the death of the member are being made to 2 or more persons included in the relevant class of persons—a reference in those sections to the rate per fortnight at which compensation is payable in respect of the death of the member shall be read as a reference to the aggregate of the rates per fortnight at which those payments are being made; and

(b)if pensions under this Part in respect of the death of the member are being paid, or are payable, to 2 or more persons included in the relevant class of persons—a reference in those sections to the rate at which pension under this Part is payable in respect of the death of the member shall be read as a reference to the aggregate of the rates per fortnight at which those pensions are being paid or are payable.

74(7)For the purposes of subsection (6), the dependants of a member of the Forces or a member of a Peacekeeping Force constitute the relevant class of persons.

74(8)If, in a case where this section applies in respect of the death of a member of the Forces or a member of a Peacekeeping Force, or the incapacity of such a member from injury or disease, or both, the rate per fortnight at which compensation is payable in respect of the death or incapacity equals or exceeds the rate per fortnight at which pension under this Part is payable in respect of the death or incapacity, then, pension is not payable under this Part to any person in respect of the death of the member, or the incapacity of the member from that injury or disease, or both, as the case may be.

74(9)If, in a case where this section applies in respect of the death of a member of the Forces or a member of a Peacekeeping Force, or the incapacity of such a member from injury or disease, or both, the rate per fortnight at which pension under this Part, or the aggregate of the rates per fortnight at which pensions under this Part would, but for this subsection, be payable in respect of the death or incapacity exceeds the rate per fortnight at which compensation is payable in respect of the death or incapacity, then:

(a)if a pension under this Part is being paid, or is payable, to one person only in respect of the death or incapacity of the member—the rate per fortnight at which that pension is payable; or

(b)if pensions under this Part are being paid, or are payable, to 2 or more persons in respect of the death of the member—the aggregate of the rates per fortnight at which those pensions are payable;

is an amount per fortnight equal to the amount of that excess.

74(10)In giving effect to subsection (9) as between 2 pensions in a case where one is required by subsection (12) to be preferred to the other, the rate per fortnight of the pension that is to be so preferred shall not be reduced until the pension that is not to be so preferred has ceased to be payable by reason that its rate per fortnight has been reduced to nil.

74(11)In giving effect to subsection (9) as between 2 or more pensions in a case where subsection (10) does not apply, the rate per fortnight of each of those pensions shall be reduced by an amount per fortnight that bears the same proportion to the amount per fortnight of the reduction required to be made to all those pensions as the rate per fortnight of that pension before the reduction bears to the aggregate rate per fortnight of all those pensions before the reduction.

74(12)For the purposes of this section:

(a)a pension payable under this Part to the widow or widower of a member of the Forces or a member of a Peacekeeping Force who is deceased shall be preferred to such a pension payable to a child of the member; and

(b)a pension payable under this Part to a child of a member of the Forces or a member of a Peacekeeping Force shall be preferred to such a pension payable to a younger child of the member.