(1) This section applies if:
(a) an amount (the social security amount ) was paid to a person by way of a social security payment in respect of a particular period; and
(b) another amount (the lump sum ) was paid as a lump sum:
(i) to the person; or
(ii) to the person's partner, if the person is a member of a couple;
by way of a payment of arrears of a comparable foreign payment in respect of that period; and
(c) assuming that the lump sum had been paid by way of periodical payments of the comparable foreign payment in respect of the period, the social security amount would have been reduced.
(2) The amount by which the social security amount would have been reduced is a debt due to the Commonwealth.
(3) Sections 1072A and 1073 do not apply to the person in respect of the lump sum.