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11.7.3 Redirection of Payments to Partner or Child

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Last amended: 5 March 2013

    

VEA ?

Pension may be suspended or forfeited when pensioner in gaol

Section 55A VEA

VEA ? (go back)

Overview

When a pensioner is imprisoned in connection with his or her conviction for an offence, the Commission has discretion to order the prisoner's pension instalments to be either suspended or redirected.

Who can pension instalments be redirected to?

    

VEA ?

Instalments may be redirected to partner or child

Section 55A(1) VEA

VEA ? (go back)

The Commission has discretion to redirect all or part of an imprisoned person's pension instalments if the person has a partner or child. Any pension instalment, or portion thereof, that is not redirected for the benefit of a partner or child may be suspended or forfeited. The redirection of pension can be paid to:

  • the partner, or
  • the child, or
  • to another person for the benefit of the partner or child.
Who is regarded to have received redirected pension instalments

    

VEA ?

Instalments may be redirected to partner or child

Section 55A(3) VEA

VEA ? (go back)

The amount of pension instalments redirected from the prisoner to the partner or child will continue to be regarded as a payment to the prisoner and will be included in the payment summary issued at the end of the financial year. As a result, the pensioner continues to be eligible for fringe benefits.

When to redirect a pension

The following table demonstrates under which circumstances a prisoner's pension instalments can be redirected.

If the prisoner has a...

Then the prisoner's pension instalments...

And that person will...

partner who is receiving social security payment from Centrelink

are suspended, and not redirected to the partner

need to apply to Centrelink for additional pension for themselves and any children

partner who is receiving service pension or income support supplement [glossary:(:]ISS[glossary:):]

may be fully or partially redirected to the partner

have their pension increased by an amount from the redirection, so that the total payment can equal but not exceed the single rate (service pension) or ceiling rate (ISS).

Note - the maximum single rate of service pension for redirection purposes includes all those components of pension, such as pension supplement, clean energy supplement and rent assistance, which comprise the rate of service pension in the Rate Calculator

child, but no partner

may be fully or partially redirected to a person caring for the child

receive an amount through the redirection that is necessary to maintain the child.

Note: Redirection is not applicable if the child is maintained by a State Authority


According to Section 179 of the VEA, the Commission is a body corporate under the name of Repatriation Commission.

 

 

A person's 'partner' is someone who is a member of a couple with that person.

Financial year, in relation to a company, means:

  • a period of 12 months beginning on 1 July, or
  • if some other period is the company's tax year that other period.

 

 

A Social Security payment refers to the following:

 

 

 

Centrelink is a Government service delivery agency responsible for delivering a range of Commonwealth Government services (including social security pensions and allowances) to the Australian community through a network of more than 400 Centrelink offices.

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.

 

 

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.

 

 

Most income support pensions and many of the associated allowances are paid at different rates depending on whether the recipient is partnered or single.  Typically, the single rate is higher than the partnered rate since single persons do not benefit from the economies of pooling their resources with another person.

 

 

The ceiling rate of service pension and income support supplement (ISS) is applied to all war widows/widowers when assessing the rate of pension. This amount was previously frozen at $124.90 per fortnight, however, since legislation was introduced in September 2002, is now indexed twice yearly in line with percentage increases in the maximum rate service pension. A higher ceiling rate can apply, however, in the following cases:

If a person:

  • became a war widow/widower-pensioner before 1 November 1986,

  • has continually received service pension, social security pension or ISS since that date, and

  • the rate of pension immediately before that date was more than $120.10

in such a case the ceiling rate is equal to the pre-November 1986 rate plus 4%.

If a person:

  • is a person to whom ISS is payable,

  • is not permanently blind, and

  • whose Part II or IV pension is [glossary:compensation reduced:DEF/Compensation reduced pension],

the ceiling rate is the sum of the ceiling rate as calculated above and the amount of the reduction in the Part II or Part IV pension. The maximum ceiling rate cannot exceed the maximum rate of single service pension. For ceiling rates refer to SCH6-A4 to A9 of VEA. The amount of increase to the ceiling rate pension under Part II or Part IV is worked out by using the formula in SCH6-A9 of the VEA.

 

 

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