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11.8 Ownership of Pension Instalments

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Ownership Provisions

VEA ?

Section 125 VEA - pension, allowances and benefits are alienable

VEA ? (go back)

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:
  • sale;
  • assignment;
  • charge;
  • execution;
  • 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 provisions

VEA ?

Section 122B VEA - pensioner requests tax

Section 58J VEA - Commissioner of Taxation serves notice

Section 205 VEA - overpayment due to the Commonwealth

VEA ? (go back)

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.
See Also

Ownership of Pension Instalments

Chapter 12.6 Overpayments

Chapter 11.6 Taxation