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3.2.3 Invalidity ISS

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Last amended: 20 September 2011

Eligibility criteria

A person may be granted Income Support Supplement [glossary:(:]ISS[glossary:):] on the basis of invalidity if:

  •       the person is eligible for a war widows' pension or a war widowers' pension paid under the VEA, or eligible for compensation as a MRCA wholly dependant partner; and

A war widow/widower may be automatically accepted as being permanently incapacitated for work for ISS purposes without the need for medical investigation if they:

Change in incapacity status

A war widow or war widower granted income support supplement on the grounds of permanent incapacity will retain payability if they regain their health or reach age pension age, however, the tax exempt status of the income support supplement will be lost.

Lodging a claim

    

Although a person may meet the eligibility criteria for invalidity ISS, the payment cannot be made until a proper claim is lodged.

When a claimant has indicated on a Form D2663 Claim for pension by a war widow or other dependant of a deceased veteran form that they wish to claim for the ISS in addition to war widows/widowers pension, this may be considered as a proper claim for ISS. They will still however need to lodge form D0648 Claim for service pension or income support supplement Part B – Income and Assets before payability can be determined.     

Form D0571 Invalidity Income Support Supplement Claim – Medical and Work details must also be lodged for invalidity ISS to establish whether the war widow/widower meets the permanent incapacity criteria. This applies unless the person:

There is no advantage to a person claiming ISS on the basis of permanent incapacity for work if they are over age pension age. This is because the tax exempt status of the payment is lost once the person reaches age pension age. Therefore, where an ISS claimant is over age pension age, they should be advised to lodge a claim for ISS, rather than invalidity ISS.

Payability

There are a number of situations where a person may be eligible for invalidity income support supplement but that pension is not payable to them.     

Taxation

Invalidity income support supplement is non taxable when paid to a person who is under age pension age. When the invalidity income support supplement recipient reaches age pension age, the pension become taxable.     


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.

 

 

Permanent incapacity has two meanings depending on the context: (i) and (ii).

(i) for the purpose of invalidity service pension

pre 1/1/2000

The test of permanent incapacity for invalidity service pension changed with effect from 1/1/2000.  Prior to this date, a person was considered to be permanently incapacitated for work if the:

  •       person was permanently blinded in both eyes, or
  •       degree of permanent incapacity was 85% or more.

This prior test of permanent incapacity continues to apply (is saved) for persons who were receiving (or who had claimed) the invalidity payment prior to 1/1/2000.

post 1/1/2000

A person claiming service pension is permanently incapacitated for work for paragraph 37(1) (c) of the if the person:

  •       is permanently blind in both eyes, or
  •       is a veteran to whom section 24 of the VEA applies, or
  •       satisfies the subsection below.

A person satisfies this subsection if:

  •       the person has an impairment that, if it were an injury or disease for GARP, would result in a combined impairment rating of 40 or more under Table 18.1 in that Guide, and solely because of the impairment, the person is permanently unable to do work for periods adding up to more than 8 hours per week, and
  •       the Commission is satisfied that the impairment is permanent.

(ii) for the purpose of invalidity ISS

pre 1/1/2000

The test of permanent incapacity for invalidity ISS changed with effect from 1/1/2000. Prior to this date, a person was considered to be permanently incapacitated for work if the:

  •       person was permanently blinded in both eyes, or
  •       degree of permanent incapacity was 85% or more.

This prior test of permanent incapacity continues to apply (is saved) for persons who were receiving (or who had claimed) the invalidity payment prior to 1/1/2000.

post 1/1/2000

A person claiming ISS is permanently incapacitated for work if:

  •       the person is blind in both eyes, or
  •       the person has a physical intellectual or psychiatric impairment that results in 20 points or more under the Impairment Tables in Schedule 1B of the Social Security Act 1991, and
  •       the Commission is satisfied that solely because of the impairment, the person cannot work for at least 30 hours a week for the following 2 years.

 

 

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

 

 

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

Permanent incapacity has two meanings depending on the context: (i) and (ii).

(i) for the purpose of invalidity service pension

pre 1/1/2000

The test of permanent incapacity for invalidity service pension changed with effect from 1/1/2000.  Prior to this date, a person was considered to be permanently incapacitated for work if the:

  •       person was permanently blinded in both eyes, or
  •       degree of permanent incapacity was 85% or more.

This prior test of permanent incapacity continues to apply (is saved) for persons who were receiving (or who had claimed) the invalidity payment prior to 1/1/2000.

post 1/1/2000

A person claiming service pension is permanently incapacitated for work for paragraph 37(1) (c) of the if the person:

  •       is permanently blind in both eyes, or
  •       is a veteran to whom section 24 of the VEA applies, or
  •       satisfies the subsection below.

A person satisfies this subsection if:

  •       the person has an impairment that, if it were an injury or disease for GARP, would result in a combined impairment rating of 40 or more under Table 18.1 in that Guide, and solely because of the impairment, the person is permanently unable to do work for periods adding up to more than 8 hours per week, and
  •       the Commission is satisfied that the impairment is permanent.

(ii) for the purpose of invalidity ISS

pre 1/1/2000

The test of permanent incapacity for invalidity ISS changed with effect from 1/1/2000. Prior to this date, a person was considered to be permanently incapacitated for work if the:

  •       person was permanently blinded in both eyes, or
  •       degree of permanent incapacity was 85% or more.

This prior test of permanent incapacity continues to apply (is saved) for persons who were receiving (or who had claimed) the invalidity payment prior to 1/1/2000.

post 1/1/2000

A person claiming ISS is permanently incapacitated for work if:

  •       the person is blind in both eyes, or
  •       the person has a physical intellectual or psychiatric impairment that results in 20 points or more under the Impairment Tables in Schedule 1B of the Social Security Act 1991, and
  •       the Commission is satisfied that solely because of the impairment, the person cannot work for at least 30 hours a week for the following 2 years.

 

 

Permanent incapacity has two meanings depending on the context: (i) and (ii).

(i) for the purpose of invalidity service pension

pre 1/1/2000

The test of permanent incapacity for invalidity service pension changed with effect from 1/1/2000.  Prior to this date, a person was considered to be permanently incapacitated for work if the:

  •       person was permanently blinded in both eyes, or
  •       degree of permanent incapacity was 85% or more.

This prior test of permanent incapacity continues to apply (is saved) for persons who were receiving (or who had claimed) the invalidity payment prior to 1/1/2000.

post 1/1/2000

A person claiming service pension is permanently incapacitated for work for paragraph 37(1) (c) of the if the person:

  •       is permanently blind in both eyes, or
  •       is a veteran to whom section 24 of the VEA applies, or
  •       satisfies the subsection below.

A person satisfies this subsection if:

  •       the person has an impairment that, if it were an injury or disease for GARP, would result in a combined impairment rating of 40 or more under Table 18.1 in that Guide, and solely because of the impairment, the person is permanently unable to do work for periods adding up to more than 8 hours per week, and
  •       the Commission is satisfied that the impairment is permanent.

(ii) for the purpose of invalidity ISS

pre 1/1/2000

The test of permanent incapacity for invalidity ISS changed with effect from 1/1/2000. Prior to this date, a person was considered to be permanently incapacitated for work if the:

  •       person was permanently blinded in both eyes, or
  •       degree of permanent incapacity was 85% or more.

This prior test of permanent incapacity continues to apply (is saved) for persons who were receiving (or who had claimed) the invalidity payment prior to 1/1/2000.

post 1/1/2000

A person claiming ISS is permanently incapacitated for work if:

  •       the person is blind in both eyes, or
  •       the person has a physical intellectual or psychiatric impairment that results in 20 points or more under the Impairment Tables in Schedule 1B of the Social Security Act 1991, and
  •       the Commission is satisfied that solely because of the impairment, the person cannot work for at least 30 hours a week for the following 2 years.

 

 

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

 

 

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