Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) If:
(a) a person receives periodic compensation payments; and
(b) the person receives payments of a compensation affected 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 to nil as a result of the operation of 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, see point SCH6 - E4.
(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 difference between:
(i) the sum of the payments of compensation affected pension made to the person for a day or days in the periodic payments period; and
(ii) the sum of the payments of compensation affected pension that would have been made to the person for any such day or days had those payments been made at the rate to which the payments were reduced as a result of the operation of section 59T.
(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 difference between:
(i) the sum of the payments of compensation affected pension, and of compensation affected payments under the Social Security Act, made to the person and the person's partner for a day or days in the periodic payments period; and
(ii) the sum of the payments of compensation affected pension, and of compensation affected payments under the Social Security Act, that would have been made to the person and the person's partner for any such day or days had those payments been made at the rate to which the payments were reduced as a result of the operation of sections 59T and 59TA.