(1)

This section applies if:

(a) compensation under this Act in respect of the cause of action is paid to or for the benefit of a person; and
(b) the person later recovers damages in respect of that cause of action.

(2)

The person is liable to pay to the Commonwealth the lesser of:

(a) the total of all amounts of compensation paid to the person under this Act before the recovery of the damages (except telephone allowance under section 221 or 245 and compensation for dependants under section 242, 253 or 255) in respect of the cause of action; and
(b) the amount of the damages.

(3)

If the Commission is satisfied that a part of the damages does not relate to an injury, disease or death, or a loss of, or damage to, a medical aid, in respect of which compensation is payable under this Act, this section only applies to so much of the damages as relates to an injury, disease, death, loss or damage in respect of which compensation is payable under this Act.