Document ID: chunk:federal_register_of_legislation:C2004A04837:section:530:p3
Version: federal_register_of_legislation:C2004A04837
Segment Type: section
Provision Reference: s 530 (pt 3/35)
Character Range: 43639–46470

recoverable amount is the smaller of $5,500 (the compensation part of the lump sum

compensation payment) and $1,376.20 (the sum of $688.10 and $688.10). Martha will be liable to repay to the Commonwealth $1,376.20. Because her lump sum preclusion period continues for another 4 weeks, neither Martha nor Fred will receive any pension payments until after the 4 week period ends.

Example 3:

Richard is a member of a couple. Richard is receiving invalidity service pension and his partner, Ellen, is also receiving invalidity service pension. They have one dependent child for whom Richard is receiving dependent child add-on. Ellen receives a lump sum compensation payment of $11,000 relating to an injury. The compensation part of this lump sum is $5, 500 (see subsection 5NB(7)).

The lump sum preclusion period is 10 weeks:

That period began 6 weeks ago (on the day after Ellen's periodic compensation payments ceased). During those 6 weeks, Richard received a total of $988.50 in invalidity service pension payments and Ellen received a total of $795.90 in invalidity service pension payments.

The Commission writes to Richard telling him of the recoverable amount he is liable to repay to the Commonwealth. Since Richard and Ellen's situation is covered by subsection (4), the recoverable amount is the smaller of $5, 500 (the compensation part of the lump sum compensation payment) and $1,591.80 (the sum of $795.90 and $795.90). Only the compensation affected components (the basic service pension and pharmaceutical allowance) are recoverable. The amount the dependent child add-on (the dependent child component) is exempt from recovery. This amounts to $192.60 (the difference between $988.50 which Richard received and $795.90 which Ellen received). Richard will be liable to repay to the Commonwealth $1,591.80. Because the lump sum preclusion period continues for another 4 weeks, Richard will only be entitled to receive the dependent child add-on payment ($64.20) of his invalidity service pension until after the 4 week period ends. Ellen will not receive any invalidity service pension payments until after the 4 week period ends.

Lump sum compensation not counted as ordinary income

"59S. If an amount per fortnight of a pension is not payable to a person under section 59Q because of compensation in the form of a lump sum, that lump sum is not to be regarded as ordinary income of either the person or the person's partner for the purposes of this Act.

Reduction of certain pensions where periodic compensation payments received

"59T.(1) If:

    (a) a person, or the person's partner, receives a series of periodic compensation payments; and

    (b) the person is eligible for a compensation affected pension for the periodic payments period; and

    (c) the person was not, at the time of the event