From the amount of any war gratuity to be credited there shall be deducted:
(a) any amount due to the Commonwealth by the person to whom, or in respect of whose service, the war gratuity is to be credited, where the indebtedness of that person to the Commonwealth was caused by fraud, deception or misappropriation on his or her part; and
(b) any amount due to the Minister of State for Repatriation or the Repatriation Commission by the person to whom, or in respect of whose service, the war gratuity is to be credited where that person has improperly disposed of property belonging to that Minister or that Commission, or property over which that Minister or that Commission holds security.