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3.1.2 Age Service Pension

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Last amended: 8 September 2006

    

Eligibility criteria

A person is eligible for age service pension if the person:

Lodging a claim

Although a person may meet the eligibility criteria for age service pension, such a person will not be granted age service pension unless they lodge a proper claim.    

Payability

There are a number of situations where a person may be eligible for age service pension, but not payable. For example:

War widows/widowers

A war widow or widower who is also a veteran may be paid age service pension if they meet the eligibility criteria. However, the maximum rate of that pension may be limited to a ceiling.    

Pension age and permanently incapacitated

If a veteran is eligible for age service pension, but is below age pension age and incapacitated for work, they may be eligible for invalidity service pension. The advantage of this is that invalidity service pension is not subject to income tax.    

Taxation

Age service pension is subject to income tax.     

Restrictions on dual pensions

    

VEA ?

Restrictions on Dual Pensions

Section 38C VEA

VEA ? (go back)

Restrictions exist on the payment of dual pensions.    

More ?

Restrictions on Dual Pensions

Chapter 3.8

More ? (go back)


For the purposes of Part VI of the VEA, a reference to a veteran is taken to be a reference to:

  • a veteran as defined in subsection 5C(1) of the VEA;
  • a member of the Forces as defined in subsection 68(1) of the VEA; or
  • a member of a Peacekeeping Force as defined in subsection 68(1) of the VEA.

For the purposes of Part VII of the VEA, according to subsection 5C(1), veteran means a person (including a deceased person):

  • who is taken to have rendered eligible war service, or
  • in respect of whom a pension is, or pensions are, payable under subsection 13(6) and
  • in Part III and Part VIIC of the VEA includes a person who is:

 

 

Qualifying service is one of the criteria used to determine eligibility for certain benefits under the Veterans' Entitlements Act 1986. Refer to section 7A of the VEA for the full defintion.

 

 

Currently, the pension age for a veteran is 5 years earlier than pension age for a non-veteran.

Male Pension Age

  • If a veteran = 60 years. Veteran pension age is specified in VEA section 5QA.
  • If a Non-Veteran = 65 years. Pension age for non-veterans is specified in VEA section 5QB.

Pension age for a female is subject to age equalisation. Pension age for females is being raised by 6 months every two years, so that by 1 January 2014 the eligibility ages for males and females will be the same.

From 1 July 2017, the pension age for both male and female non veterans born on or after 1 July 1952 will progressively increase by 6 months every 2 years, so that by 1 July 2023, pension age for a non veteran will be 67.  Veteran pension age will not change so by 1 July 2023 pension age for a veteran will be 7 years earlier than pension age for a non veteran. A table explaining this gradual increase can be found in 3.4.1 Age requirements.

A Commonwealth veteran is a person who served on a continuous full time basis in the defence forces of a Commonwealth country during a period of hostilities.  Refer to subsection 5C(1) of the VEA for the full definition.

 

 

An allied veteran means a person who:

An allied veteran does not include a person who has served at any time:

  • in the forces of a country that was, at the time, at war with Australia, or in forces engaged in supporting or assisting the forces of such a country, or
  • in the forces that were, at the time, engaged in war like operations against the Naval, Military or Air Forces of Australia

See section 5c(1) VEA

To be a proper claim, the claim must be:

  • made in writing;
  • in accordance with a form approved by the Commission; and
  • accompanied by any evidence available to the claimant that the claimant considers may be relevant to the claim

A war widow/widower is generally a person who immediately before their partners death, was the partner of, or was legally married to:

Refer to 5E(1) of the VEA for the full definition.

 

 

Age Pension Age refers to pension age as defined under the Social Security Act 1991, that is, pension age for people other than veterans.