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3.11.2 Lump Sum Advance Eligibility

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Last amended: 20 March 2012

Eligibility criteria for lump sum payment

    

To be eligible for the lump sum advance the person must meet the following criteria:

  • a Part II, III, or IV pension or income support supplement is payable, and
  • have been eligible to be paid a DVA pension that can be advanced, or have been receiving a social security pension or social security benefit through Centrelink, continually during the three months before applying for the advance,
  • be able to afford to repay the advance without suffering severe financial hardship,
  • be eligible to receive an advance above the minimum advance amount,
  • not have an advance payment of pension or a social security entitlement under Part 2.22 of the Social Security Act 1991 that has not been fully repaid after 12 months,
  • not owe any money to the Commonwealth because of an overpaid pension by DVA or Centrelink.    

Note: a person is eligible to be paid pension from the date of effect of the grant of pension.

Australian residency requirement

    

The applicant for the lump sum advance must be an Australian resident and be residing in Australia when the application is lodged.

Pensioners not eligible for the advance

Some pensioners are not eligible for the lump sum advance payment because they are in receipt of payments that can not be advanced. This includes:

These clients should be encouraged to contact Centrelink to see whether they may be eligible for a lump sum advance of their Centrelink payment.

Duty of care issues

The likelihood of an advance being misused is not a factor in assessing an application for an advance.

Capacity to repay

If the pensioner indicates on the application form that:

  • they can afford to repay the advance, and
  • there is nothing in the pensioner's record to suggest otherwise,

the delegate should have no reason not to be satisfied that the pensioner can manage on a reduced pension and would not suffer financial hardship. For cases where there is doubt, the delegate may require the completion of the form D0557, Lump Sum Advance Payment, Income/Expenses Calculator. The purpose of the form is to satisfy the assessor that an application considered doubtful would not result in the applicant suffering hardship from repaying the advance.


Pension means a pension payable under Part II, III or IV of the VEA or an income support supplement.

The term social security pension is defined in Section 5Q(1) VEA to mean:

  • age pension;
  • disability support pension;
  • wife pension;
  • carer payment;
  • pension PP (single);
  • sole parent pension;
  • bereavement allowance;
  • widow B pension;
  • mature age partner allowance;
  • special needs pension.



As benefits (pensions) may change, for the most current definition access this link to the Social Security Act 1991

http://www.comlaw.gov.au/comlaw/management.nsf/lookupindexpagesbyid/IP200401781?OpenDocument

 

 

The term social security benefit is defined in Section 5Q(1) of the VEA to mean:

  • widow allowance;
  • youth allowance;
  • austudy payment;
  • newstart allowance;
  • sickness allowance;
  • special benefit;
  • partner allowance;
  • mature age allowance;
  • benefit PP (partnered);
  • parenting allowance.

As benefits (pensions) may change, for the most current definition access this link to the Social Security Act 1991

http://www.comlaw.gov.au/comlaw/management.nsf/lookupindexpagesbyid/IP200401781?OpenDocument

 

 

An Australian resident is a person who:

  • resides in Australia; and
  • is one of the following:
  • an Australian citizen;
  • the holder of a permanent visa;
  • the holder of a special category visa who is likely to remain permanently in Australia;
  • the holder of a special purpose visa who is likely to remain permanently in Australia.

Veterans' Children Education Scheme provides financial assistance and guidance in the education and training of eligible children as defined under section 116 of the VEA.  Eligible children must be full-time students and be under 25 years of age at the time of application.

The VCES aims to encourage and assist eligible children to achieve their educational potential and prepare for suitable careers.  The education allowance is not means tested, however, benefits cannot be paid to a student who is receiving other Commonwealth education assistance (including Youth Allowance), income support or assistance from any other similar scheme.

 

 

Defence Force Income Support Allowance (DFISA) is an income support payment to be made by DVA to people whose income support payment under Social Security Law is reduced, or not payable, because of the impact of adjusted disability pension. DFISA is the difference between the person's existing entitlement, and what the entitlement would have been had adjusted DP been exempt, but was assessed in the calculation of rent assistance.