88Compensation where State compensation payable

88  Compensation where State compensation payable

 (a) a covered person recovers State compensation in respect of an injury to the covered person or in respect of the loss of, or damage to, property used by the covered person; or

 (b) State compensation is recovered by, or for the benefit of, a dependant of a deceased covered person;

the following provisions of this section have effect.

 (2) Subject to this section, the compensation that is payable under this scheme to the covered person in respect of the injury, loss or damage, or for the benefit of the dependant in respect of the injury that resulted in the death, as the case may be, is so much (if any) of the compensation under this scheme that, but for this section, would be so payable as exceeds the amount of State compensation recovered by the covered person or by, or for the benefit of, the dependant, as the case may be.

 (3) Subject to this section, if, before the recovery of State compensation by or for the benefit of the covered person or dependant, compensation under this scheme was paid to the covered person by Comcare in respect of the injury, loss or damage, or for the benefit of the dependant in respect of the injury that resulted in the death, as the case may be, the covered person or dependant is liable to pay to the Commonwealth:

 (a) the amount of the compensation paid by it under this scheme; or

 (b) the amount of the State compensation recovered by the covered person or for the benefit of the dependant;

 (a) a person (the debtor) is liable to pay an amount to the Commonwealth under this section; and

 (b) any other person holds on behalf of the debtor:

 (i) money, being compensation payable under this scheme for the benefit of, or State compensation payable to, the debtor; or

 (ii) investments acquired out of money of a kind referred to in subparagraph (i);

the other person must:

 (c) deduct from the money so held, or realise those investments so held and deduct from the proceeds of the realisation, an amount not exceeding the amount referred to in paragraph (a); and

 (d) pay the amount so deducted to the Commonwealth;

and the payment of that amount is, to the extent of the amount paid, a discharge of the liability of the debtor to the Commonwealth and of the other person to the debtor.

 (5) A reference in subsection (3) to compensation under this scheme that was paid for the benefit of a dependant does not include a reference to compensation paid under subsection 26(5).

 (6) If a covered person, or a dependant of a covered person, establishes, to the satisfaction of Comcare, that the whole or part of the State compensation referred to in subsection (2) recovered by the covered person or by, or on behalf of, the dependant, as the case may be, did not relate to an injury, loss or damage, in respect of which compensation is payable under this scheme, this section has effect in relation to that covered person or that dependant, as the case may be, as if the amount of the State compensation recovered by that covered person or that dependant were an amount equal to so much (if any) of the amount of the specified compensation as did relate to an injury, loss or damage, in respect of which compensation is payable under this scheme to that covered person or that dependant, as the case may be.