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DFISA Calculation Examples

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DFISA payment differs from expected rate

Some people, eligible for DFISA, may receive less DFISA payment than they thought they would receive. There are two reasons that a person may receive less DFISA than the expected rate or may have the rate calculated as nil. These are where the person is:

  • notionally assets tested, or
  • receiving rent assistance.
Calculating the notional rate

In the process of calculating the rate of DFISA, a notional assessment is done. This involves:

  • calculating the notional income tested rate,
  • calculating the notional assets tested rate, and
  • comparing the two rates.

The lower of the two rates is the notional rate.

Rate of DFISA if notional rate is assets tested

If the person's notional income support payment is the assets tested rate, their rate of DFISA may either be less than expected or nil. DFISA is the difference between the person's notional rate and the actual rate. Where the notional rate is the assets tested rate, the amount of DFISA will be less than the impact that adjusted DP is having on the person's income support payment via the income test. Where the notional assets tested rate is the same as the actual income tested rate, the amount of DFISA will be nil.

Example of notionally assets tested rate

This example describes a notionally assets tested client whose rate of DFISA is less than the impact of adjusted DP on his actual rate. Rates quoted are as at 20/09/2004.

Mr Lucas is a single homeowner receiving age pension paid by DVA. He receives 60% of general rate disability pension ($177.84 per fortnight) and has $122 per fortnight in other income. He has assets totalling $160,000.

Actual rate

Actual income tested rate

$399.56

Actual assets tested rate

$449.70

Actual rate (paid)

$399.56 (income rate)

Notional rate

Notional income tested rate

$470.70

Notional assets tested rate

$449.70

Notional rate (for DFISA)

$449.70 (assets rate)

DFISA =

Notional rate (assets tested) less Actual rate (income tested)

$449.70 - $399.56 = $50.14

While Mr Lucas' adjusted disability pension reduces his actual social security payment by $71.14, the rate of DFISA payable is $50.14 due to the impact of the assets test on the notional rate assessment.

Clients eligible for rent assistance

Where a person eligible for DFISA is also eligible for rent assistance (RA), their notional rate assessment involves a disability income test for RA. This test is similar to the test applied under the VEA to calculate rates of rent assistance for service pensioners.     

Notional disability income test for rent assistance

The notional disability income test for RA involves calculation of a reduction amount that is applied to the person's RA entitlement. The calculation uses adjusted DP only and refers to the income free areas and taper rates applicable to the person's primary payment. As a result of this test, the notional rent assistance amount, included in the calculation of the notional rate for DFISA, may be less than their actual rent assistance payment. Note: This impacts the notional calculation for DFISA only. There will be no actual change to the person's income support payment or rent assistance payment.

Example of disability income rent test reducing DFISA to nil

This example describes a client whose rate of DFISA is nil because of the disability income test for rent assistance. Rates are as at 20/09/2004.

Mr Fee is a single age pensioner paid by Centrelink. He receives 100% of the general rate disability pension ($296.40 per fortnight) and has no other income. He receives $96.80 per fortnight in rent assistance from Centrelink.

Actual rate

Actual income tested rate

$400.94

Actual rent assistance

$  96.80

Actual rate (paid)

$497.74

Notional rate

Notional income tested rate

$470.70

Notional rent assistance

$  27.04

Notional rate (for DFISA)

$497.74

DFISA =

Notional rate less Actual rate

$497.74 – $497.74 = $0.00

Mr Fee's adjusted disability pension reduces his actual payment by $69.76. However, because of the notional disability income rent test used to calculate notional rent assistance, the amount of DFISA payable is nil.


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.

 

 

For DFISA purposes, the notional rate is what the person's daily rate of income support payment would be if the following applied:

Note: This step is only for DFISA calculation purposes and does not change the person's existing social security assessment.

 

 

For DFISA purposes, the notional rate is what the person's daily rate of income support payment would be if the following applied:

Note: This step is only for DFISA calculation purposes and does not change the person's existing social security assessment.

 

 

For DFISA purposes, the actual rate is the daily rate of the person's social security income support payment made under .

For DFISA-like purposes, the actual rate is the daily rate of the person's DAFF or ABSTUDY income support payment.

 

 

Section 118NA of the VEA defines adjusted disability pension as:

  • disability pension paid under Parts II or IV of the Veterans' Entitlements Act 1986 (VEA); and
  • permanent impairment payments and special rate disability pension paid under the Military Rehabilitation and Compensation Act 2004.

Adjusted disability pension does not include war widow's/widower's pension, or payments made by other governments to compensate for war or service related injuries.

 

 

For DFISA purposes, the actual rate is the daily rate of the person's social security income support payment made under .

For DFISA-like purposes, the actual rate is the daily rate of the person's DAFF or ABSTUDY income support payment.

 

 

For DFISA purposes, the notional rate is what the person's daily rate of income support payment would be if the following applied:

Note: This step is only for DFISA calculation purposes and does not change the person's existing social security assessment.

 

 

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.

 

 

Section 118NA of the VEA defines adjusted disability pension as:

  • disability pension paid under Parts II or IV of the Veterans' Entitlements Act 1986 (VEA); and
  • permanent impairment payments and special rate disability pension paid under the Military Rehabilitation and Compensation Act 2004.

Adjusted disability pension does not include war widow's/widower's pension, or payments made by other governments to compensate for war or service related injuries.

 

 

Veterans' Entitlements Act 1986.

Section 118NA of the VEA defines adjusted disability pension as:

  • disability pension paid under Parts II or IV of the Veterans' Entitlements Act 1986 (VEA); and
  • permanent impairment payments and special rate disability pension paid under the Military Rehabilitation and Compensation Act 2004.

Adjusted disability pension does not include war widow's/widower's pension, or payments made by other governments to compensate for war or service related injuries.

 

 

For DFISA purposes, if the person is entitled to rent assistance, the adjusted DPis used to calculate a rent assistance reduction amount in order to determine the notional rent assistance rate. Calculation of the rent assistance reduction amount uses the same taper rates and income free area as apply to the person's income support payment.

Note: This step is only for DFISA calculation purposes and does not affect the person's actual payment of rent assistance. The notional rent assistance calculation is similar to the disability income rent test used to calculate rent assistance for service pensioners.

 

 

For DFISA purposes, the notional rate is what the person's daily rate of income support payment would be if the following applied:

Note: This step is only for DFISA calculation purposes and does not change the person's existing social security assessment.

 

 

Centrelink is a Government service delivery agency responsible for delivering a range of Commonwealth Government services (including social security pensions and allowances) to the Australian community through a network of more than 400 Centrelink offices.

For DFISA purposes, the actual rate is the daily rate of the person's social security income support payment made under .

For DFISA-like purposes, the actual rate is the daily rate of the person's DAFF or ABSTUDY income support payment.

 

 

For DFISA purposes, the notional rate is what the person's daily rate of income support payment would be if the following applied:

Note: This step is only for DFISA calculation purposes and does not change the person's existing social security assessment.

 

 

For DFISA purposes, if the person is entitled to rent assistance, the adjusted DPis used to calculate a rent assistance reduction amount in order to determine the notional rent assistance rate. Calculation of the rent assistance reduction amount uses the same taper rates and income free area as apply to the person's income support payment.

Note: This step is only for DFISA calculation purposes and does not affect the person's actual payment of rent assistance. The notional rent assistance calculation is similar to the disability income rent test used to calculate rent assistance for service pensioners.

 

 

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.

 

 

Section 118NA of the VEA defines adjusted disability pension as:

  • disability pension paid under Parts II or IV of the Veterans' Entitlements Act 1986 (VEA); and
  • permanent impairment payments and special rate disability pension paid under the Military Rehabilitation and Compensation Act 2004.

Adjusted disability pension does not include war widow's/widower's pension, or payments made by other governments to compensate for war or service related injuries.