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11.1.2 Pension Periods and Paydays

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Instalment of pension

    

Service pension and ISS are paid fortnightly in arrears. An instalment of pension is payable in respect of the number of days in each fourteen day pension period for which the person is eligible and the pension is payable. The instalment for the pension period will be payable on the next pension payday after the end of the pension period.    

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Eligibility and payability for service pension and ISS

Part 2 Determining Eligibility

Part 3 Determining Payability

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Daily entitlement

    

'Daily entitlement' is the amount of pension that is payable on a given day. This method of calculating pension payments means that the pension for each payday will be made up of an amount for each day of the fourteen day pension period. The rate of pension payable to a person for a day is calculated by dividing the annual rate of pension by 364. This figure represents 26 fortnights multiplied by 14 days. A system of daily entitlement will mean that:

Allowances included in daily entitlement

VEA?

Rent assistance, pension supplement, and remote area allowance are added into the pension rate calculation before it is converted into daily entitlement. This means that these allowances and supplements are treated as a component of the rate of service pension or ISS and are thus paid at a daily rate.    

Example of daily entitlement and allowances

A single pensioner receiving service pension and rent assistance is eligible and payable for only four days out of a pension period. He will receive only four days worth of rent assistance as part of his service pension daily rates.

Exception - Pension Supplement Minimum Amount

    

If a person is only eligible and payable for three days of the pension period they will receive three days worth of pension supplement as part of their daily rate.

However, if a person's full 14 day instalment of service pension is less than the fortnightly minimum amount of pension supplement, their instalment of pension will be rounded up to equal the fortnightly minimum amount of pension supplement.

Example - Pension Supplement Minimum Amount

A single pensioner receives SP only. The sum of the daily rates of service pension for an entire pension period is $2.90. This would be rounded up to $30.20, i.e. the minimum amount of pension an SP only pensioner can receive is the fortnightly minimum amount of pension supplement.


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.

 

 

According to subsection 5Q(1) (b), of the VEA a pension period is a period of two weeks that starts two days before a payday (i.e. Tuesday) and ends two days before the next payday (i.e. close of business Monday).

 

 

Commencing from the Thursday falling on 11 July 1991, DVA pension payday falls on each succeeding alternate Thursday.  Refer to the fact sheet IS144 Pension Paydays, Allowance Payment Dates & Pension Periods for a listing of these days.

 

 

Rent Assistance is an allowance, which may be paid to a service pensioner or income support supplement (ISS) recipient to assist in meeting the cost of rental accommodation.

To receive rent assistance, a pensioner must be paying rent (other than Government rent) for accommodation in Australia, and the amount paid must exceed a certain threshold.

The pension supplement is added to a person's maximum basic rate. The pension supplement is calculated as a 'combined couple' rate. The 'not a member of a couple' rate is 66.33% of the 'combined couple' rate. The member of a couple rate is 50% of the combined couple rate. From 1 July 2010, the minimum pension supplement amount will be able to be claimed on a quarterly basis rather than on a fortnightly basis.

 

 

Remote area allowance is a supplementary payment added to the rate of income support pension where the pensioner's usual place of residence is situated in a remote area, and where the pensioner is physically present in the remote area.

According to subsection 5Q(1) (b), of the VEA a pension period is a period of two weeks that starts two days before a payday (i.e. Tuesday) and ends two days before the next payday (i.e. close of business Monday).