(1) Any damages payable as a result of a claim made or taken over by the Commission (including damages payable as a result of the settlement of such a claim) must be paid to the Commonwealth.
(2) The Commonwealth must deduct from the amount of those damages:
(a) an amount equal to the total of all amounts of compensation paid to the plaintiff under this Act before the payment of the damages (except MRCA supplement under section 221 or 245 and compensation for dependants under section 242, 253 or 255) in respect of the cause of action to which the claim relates; and
(b) the amount of any costs incidental to the claim paid by the Commonwealth.
(3) If a balance remains after the deductions have been made:
(a) the Commonwealth must pay the balance to the plaintiff; and
(b) the plaintiff is not entitled to any further compensation under this Act in respect of the cause of action to which the claim related until the amount of compensation that would have been payable for the period after payment of the balance (apart from this paragraph) equals the amount paid under paragraph (a).