Where a payment is made by way of compensation or damages the method of calculating the overpayment is described in ss 74(3)(c) & (d) and ss30C (1) to (3).
STEP | ACTION |
1 | Calculate the amount to be offset and the date of effect of the offset. |
2 | Calculate the overpayment by multiplying this offset amount by the number of paydays between the pension effective date and the first available (advance) payday from when a regular offset will commence. |
3 | This is the amount to be recovered from any amount of other compensation to be paid. |
Note 1 – Section 115 in the DRCA [2] allows for the recovery of overpaid Disability Compensation Payments from compensation payable under DRCA. Section 115 does not allow for recovery of AGR Disability Compensation Payments or allowances offset as a result of s25A of the VEA.
Note 2 –Indexation of a fortnightly equivalent does not begin until after the first regular payday from when the offset is put in place.
Safety, Rehabilitation and Compensation Act 1988
Links
[1] https://clik.dva.gov.au/user/login?destination=comment/reply/24476%23comment-form
[2] https://clik.dva.gov.au/%23