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Social Security Payments Payable at Nil Rate

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Social security law provision

Subsection 23(1D) of the Social Security Act 1991 commenced on 20 September 2004 to ensure that people receiving a nil rate of social security payment and DFISA payment:     

  • are subject to the obligations applicable to their primary payment,
  • are entitled to certain benefits associated with their primary payment, and
  • do not have their claim for a social security payment rejected or their payment cancelled because their rate of payment would be nil.

The provision applies both to people actually receiving DFISA and to those who, although entitled to DFISA, have elected not to receive the payment.    

Nil rate of social security payment and DFISA

A person to whom subsection 23(1D) of the SSA applies remains subject to all provisions of social security law applicable to a recipient of the relevant social security payment. This occurs despite the person not actually receiving an amount of the social security payment.     

More ?

Guide to Social Security Law: Customers with a nil rate of social security pension or benefit due to the income test

http://www.fahcsia.gov.au/guides_acts/ssg/ssguide-4/ssguide-4.3/ssguide-4.3.5/ssguide-4.3.5.70.html

More ? (go back)

Impact on recipient obligations

A person to whom subsection 23(1D) of the SSA applies will be subject to the obligations applicable to their social security payment.

Entitlement to concessions and benefits

A person to whom subsection 23(1D) of the SSA applies will also be entitled to all additional benefits available to the recipient of that primary payment, including concession cards (pensioner concession card or health care card) and supplements.

These benefits are administered by the agency responsible for the social security payment.

Entitlement to Commonwealth Seniors Health Card

A person to whom subsection 23(1D) of the SSA applies will not be eligible for a Commonwealth Seniors Health Card (CSHC) because they are taken to be receiving income support.

Remote area allowance payable to some nil rate beneficiaries

    

VEA ?

Remote Area Allowance under the Social Security Act

Section 118NE VEA

VEA ? (go back)

Subsection 23(1D) of the SSA does not authorise the payment of remote area allowance (RAA) to a person receiving a social security payment at nil rate and DFISA payment. RAA eligibility has instead been extended through section 118NE VEA. In this circumstance, provided that the person meets all the other criteria for remote area allowance, RAA will be payable under this VEA provision.


A Social Security payment refers to the following:

 

 

 

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.

 

 

The social security law includes:

  • the Social Security (Administration) Act 1999; and
  • the Social Security Act 1991;and
  • the Social Security (International Agreements) Act 1999.