Document ID: chunk:federal_register_of_legislation:C2004A04837:section:530:p8
Version: federal_register_of_legislation:C2004A04837
Segment Type: section
Provision Reference: s 530 (pt 8/35)
Character Range: 56482–59299

pension for the periodic payments period; and

    (c) the person was not, at the time of the event that gave rise to the entitlement of the person to the compensation, receiving a compensation affected pension; and

    (d) the payments referred to in paragraph (b) have not been reduced under section 59T;

the Commission may, by written notice to the person, determine that the person is liable to pay to the Commonwealth the amount specified in the notice.

    Note: If a person was, at the time of the event that gave rise to the entitlement of the person to compensation, receiving a compensation affected pension, the compensation is treated as ordinary income. In cases where arrears of periodic compensation payments are treated as ordinary income and a 'compensation debt' is involved, see subsections 56H(7) and (8).

"(2) The amount specified in the notice is the recoverable amount and is worked out under subsections (3) and (4).

"(3) If:

    (a) the person is not a member of a couple; or

    (b) the person is a member of a couple and the person's partner:

        (i) is not eligible for a compensation affected pension; or

        (ii) is not qualified for a compensation affected payment under the Social Security Act;

the recoverable amount is equal to the smaller of:

    (c) the sum of the periodic compensation payments; and

    (d) the sum of the pension payments, or if the person's pension has a dependent child component) of the compensation affected components of the pension payments, made to the person for the periodic payments period.

"(4) If:

    (a) the person is a member of a couple; and

    (b) the person's partner:

        (i) is eligible for a compensation affected pension; or

        (ii) is qualified for a compensation affected payment under the Social Security Act;

the recoverable amount is equal to the smaller of:

    (c) the sum of the periodic compensation payments; and

    (d) the amount obtained by adding the pension payments, or (if the person's pension has a dependent child component) the compensation affected components of the pension payments, made to the person for the periodic payments period to:

        (i) the pension payments, or (if the partner's pension has a dependent child component) the compensation affected components of the pension payments, made to the person's partner for the periodic payments period; or

        (ii) the compensation affected payments made under the Social Security Act to the person's partner for the periodic payments period.

PERIODIC PAYMENTS RECOVERABLE AMOUNT EXAMPLES

Example 1:

Alice is not a member of a couple. She has no dependent children. She is receiving carer service pension at a fortnightly rate of $312.10. At the same time, she is receiving a series of periodic payments from an