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DVA Income Exempt from Assessment

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Last amended: 5 March 2013

Exempt income for service pension and income support supplement

    

The following table shows DVA payments that are exempt income when calculating entitlement for service pension and income support supplement. Payments not exempt for income support supplement purposes are considered adjusted income.

DVA payment

For service pension purposes

For income support supplement purposes

Service pension

Exempt

Exempt

Disability pension

Exempt

Exempt

War widow's and war widower's pension

Exempt

Not exempt

A compensation payment for incapacity or death resulting from employment connected with a war or war-like operations in which the Crown has been engaged

Exempt

Not exempt

Special Rate Disability Pension under the MRCA

Exempt

Exempt

A payment, except a pension payable for a child, under Subsection 4(6) or (8B) of the Veterans' Entitlements (Transitional Provisions and Consequential Amendments) Act 1986.

Exempt

Not exempt

Pension Supplement, Veterans Supplement

Exempt

Exempt

Other allowances and payments, such as attendant allowance (see below), recreation transport allowance, decoration allowance, and funeral benefit, but not loss of earnings allowance

Exempt

Exempt

Prisoner of War Recognition Supplement

Exempt

Exempt

Clean energy supplement

Exempt

Exempt

*Incapacity payments under the MRCA are regarded as assessable income when determining whether invalidity service pension is payable to a member or former member.

Assessment of attendant allowance payments

    

The assessment of attendant care payments varies, depending on the source legislation and who receives the payments.

Payment of attendant allowance under the VEA is made to the veteran, and is excluded income for income support purposes. Payment for attendant care under the MRCA is excluded income for income support purposes, where the payment is to the veteran for the reimbursement of costs associated with the provision of goods or services.

Payment for attendant care under SRCA is assessable income, where the payments are made to a person other than the veteran (e.g. carer).  As SRCA is not an approved scheme for the purposes of section 35A of the Social Security Act 1991 the payments are not excluded income under VEA paragraph 5H(8)(ya).

Payment for attendant care under SRCA to the veteran receiving care may occur, where there is evidence of required expenditure.  In these circumstances the payment represents the reimbursement of incurred expenses, and is not regarded as assessable income.

Rent assistance - treatment of disability pension

The following table shows the treatment of disability pension in calculating rent assistance for service pension and income support supplement.    

For the purposes of calculating rent assistance for...

disability pension is...

a service pension

not exempt.

an income support supplement

not exempt.

Clean Energy Advance

Clean energy payments are excluded income for income support purposes.    


The Department of Veterans' Affairs.

A service pension is an income support payment broadly equivalent to the social security age and disability support pensions. It may be paid once a veteran or partner has reached the nominated age or is incapacitated for work.

ISS is an income support payment that may be paid to eligible war widows and widowers under the VEA and persons receiving wholly dependent partners' compensation under the MRCA, and who satisfy the means tests. It is an indexed rate, increased twice-yearly in March and September in line with changes to the cost of living and/or average wages. Income Support Supplement (ISS) legislation commenced on 20 March 1995. It is a payment created to replace the ceiling rate income support age, carer, wife and disability support pensions, paid to war widows/widowers by Centrelink.

 

 

Adjusted income is defined in section 5H VEA and is the sum of the person's:

  • ordinary income
  • disability pensions paid by other governments
  • war widow's/widower's pension (VEA) or equivalent wholly dependent partner payments (MRCA)
  • a foreign pension, similar in character to a war widow's/widower's pension.

 

 

The energy supplement is an ongoing, regular payment designed to help recipients meet the cost of living impact of the carbon price.

 

 

Disability pension, for the purposes of service pension and income support supplement, means:

  • a pension paid for incapacity from war caused conditions, or peacetime, peacekeeping or hazardous service caused conditions (other than a war widow's or orphan's pension); or
  • temporary incapacity allowance; or
  • any other payment in respect of incapacity or death resulting from war or war-like operations in which the Crown has been engaged [usually paid by another Commonwealth country].