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11.8 Ownership of Pension Instalments
Ownership ProvisionsVEA ?
In order to protect the pensioner's basic means of living, an ownership provision also known as the inalienability provision was introduced to:
- prevent third parties claiming against a person's pension instalment, by way of, or in consequence of:
- bankruptcy; or
- other means; and
- avoid the possibility of a pensioner allotting his or her whole pension instalment directly from this Department to debtors.
Application of ownership provisions
The ownership provisions only apply while funds are under the control of the Commonwealth. Pension instalments that have already been transferred to the pensioner's account no longer receive the protection of the ownership provisions.
Exceptions to ownership provisionsVEA ?
Amounts can be deducted from an income support pension instalment, where:
- the pensioner requests tax deductions to be made;
- the Commissioner of Taxation serves a notice under Section 218 of the income Tax Assessment Act;
- there is an overpayment of pension or an allowance, and the debt is due to the Commonwealth; or
- the pensioner requests deductions to be made from their pension instalments to pay an overpayment of pension or allowance incurred by another person under the VEA.