Last Amended: 29 June 2005
The compensation recovery assessment rules may apply to payments of compensation if:
Different assessment rules apply to payments of compensation if:
The focus of this chapter is the Part IIIC rules.
VEA ? [4]
Section 5NB [5] of the VEA defines, for the purposes of Part IIIC [5] of the VEA, compensation as:
The compensation payment must be made wholly or partly in respect of lost earnings or lost capacity to earn for the Part IIIC compensation recovery rules to apply (sometimes this is referred to as compensation for economic loss).
Compensation can be in the form of:
VEA ? [6]
If a person is entitled to, or receives compensation made wholly or partly in respect of economic loss and has not reached pension age [3] (or qualifying age [3] in the case of income support supplement [3] [glossary:(:]ISS [3][glossary:):]), then the following pensions payable to a person may be affected:
These pensions are described as compensation affected pensions [3] [glossary:(:]CAP [3][glossary:).:]
More ? [7]
VEA ? [8]
If a person receives compensation made wholly or partly in respect of economic loss in the form of one or more lump sum payments then the person may not be able to receive their CAP for the lump sum preclusion period [3].
More ? [9]
VEA ? [10]
If a person receives compensation made wholly or partly in respect of economic loss in the form of a series of periodic payments their CAP may be reduced for the period for which the payments are received. The CAP payable to the compensation recipient is reduced on a dollar for dollar basis by the periodic compensation payments.
More ? [11]
compensation affected pension means:
(a)an invalidity service pension payable to a person who has not reached pension age; or
(b)a partner service pension payable to a person who has not reached pension age; or
(c)income support supplement payable to a person who has not reached qualifying age; or
(d)a veteran payment payable to a person who has not reached pension age (within the meaning of subsections 5QB(2), (3), (4) and (5)); or
(e)an education entry payment payable to a person who:
Note 1: For pension age see sections 5QA and 5QB.
Note 2: For qualifying age see section 5Q.
Currently, the pension age for a veteran is 60 years of age (VEA 5QA).
The pension age for a non-veteran is determined by the table below:
Date of birth (both dates inclusive) | Age Pension age |
1 July 1952 to 31 December 1953 | 65 years and 6 months |
1 January 1954 to 30 June 1955 | 66 years |
1 July 1955 to 31 December 1956 | 66 years and 6 months |
On or after 1 January 1957 | 67 years |
Qualifying age is defined in section 5Q(1) of the [22]VEA [22]and is equivalent to the pension age for a veteran which is described in section 5QA VEA as:
ISS is an income support payment that may be paid to eligible war widows and widowers under the VEA and persons receiving wholly dependent partners' compensation under the MRCA, and who satisfy the means tests. It is an indexed rate, increased twice-yearly in March and September in line with changes to the cost of living and/or average wages. Income Support Supplement (ISS) legislation commenced on 20 March 1995. It is a payment created to replace the ceiling rate income support age, carer, wife and disability support pensions, paid to war widows/widowers by Centrelink.
ISS is an income support payment that may be paid to eligible war widows and widowers under the VEA and persons receiving wholly dependent partners' compensation under the MRCA, and who satisfy the means tests. It is an indexed rate, increased twice-yearly in March and September in line with changes to the cost of living and/or average wages. Income Support Supplement (ISS) legislation commenced on 20 March 1995. It is a payment created to replace the ceiling rate income support age, carer, wife and disability support pensions, paid to war widows/widowers by Centrelink.
compensation affected pension means:
(a)an invalidity service pension payable to a person who has not reached pension age; or
(b)a partner service pension payable to a person who has not reached pension age; or
(c)income support supplement payable to a person who has not reached qualifying age; or
(d)a veteran payment payable to a person who has not reached pension age (within the meaning of subsections 5QB(2), (3), (4) and (5)); or
(e)an education entry payment payable to a person who:
Note 1: For pension age see sections 5QA and 5QB.
Note 2: For qualifying age see section 5Q.
compensation affected pension means:
(a)an invalidity service pension payable to a person who has not reached pension age; or
(b)a partner service pension payable to a person who has not reached pension age; or
(c)income support supplement payable to a person who has not reached qualifying age; or
(d)a veteran payment payable to a person who has not reached pension age (within the meaning of subsections 5QB(2), (3), (4) and (5)); or
(e)an education entry payment payable to a person who:
Note 1: For pension age see sections 5QA and 5QB.
Note 2: For qualifying age see section 5Q.
The lump sum preclusion period is the amount of time that a person or their partner is ineligible to receive the pension after receiving compensation in the form of a lump sum. Refer to Subsections 59Q(3) to 59Q(8) of the VEA to determine the lump sum preclusion period
Links
[1] https://clik.dva.gov.au/user/login?destination=node/16043%23comment-form
[2] clikpopup://DEF/Compensation affected pension (CAP)
[3] https://clik.dva.gov.au/%23
[4] https://clik.dva.gov.au/book/export/html/16043#tgt-cspol_part9_ftn653
[5] https://clik.dva.gov.au/service-eligibility-assistant-updates/all-determinations-order-date-signed-oldest-most-recent/determinations-under-vea
[6] https://clik.dva.gov.au/book/export/html/16043#tgt-cspol_part9_ftn654
[7] https://clik.dva.gov.au/book/export/html/16043#tgt-cspol_part9_ftn655
[8] https://clik.dva.gov.au/book/export/html/16043#tgt-cspol_part9_ftn656
[9] https://clik.dva.gov.au/book/export/html/16043#tgt-cspol_part9_ftn657
[10] https://clik.dva.gov.au/book/export/html/16043#tgt-cspol_part9_ftn658
[11] https://clik.dva.gov.au/book/export/html/16043#tgt-cspol_part9_ftn659
[12] https://clik.dva.gov.au/book/export/html/16043#ref-cspol_part9_ftn653
[13] https://clik.dva.gov.au/book/export/html/16043#ref-cspol_part9_ftn654
[14] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/911-compensation-recovery/9112-general-compensation-recovery-provisions
[15] https://clik.dva.gov.au/book/export/html/16043#ref-cspol_part9_ftn655
[16] https://clik.dva.gov.au/book/export/html/16043#ref-cspol_part9_ftn656
[17] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/911-compensation-recovery/9113-lump-sum-compensation-payments
[18] https://clik.dva.gov.au/book/export/html/16043#ref-cspol_part9_ftn657
[19] https://clik.dva.gov.au/book/export/html/16043#ref-cspol_part9_ftn658
[20] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/911-compensation-recovery/9114-periodic-compensation-payments
[21] https://clik.dva.gov.au/book/export/html/16043#ref-cspol_part9_ftn659
[22] http://www.comlaw.gov.au/Series/C2004A03268