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Dependent child component
- any additional amount for dependent children or any amount for rent assistance that, in working out the rate of the pension, was added:
- in the case of a service pension-to the person's maximum basic rate MBR , or
- in the case of income support supplement-to the person's provisional rate, or
- if any amount referred to in paragraph (a) was reduced because an income test or asset test was applied in working out the rate of the pension-that amount as so reduced.
According to subsection 5NB(1) of the VEA a compensation affected pension means:
- an invalidity service pension payable to a person who has not reached pension age; or
- a partner service pension payable to a person who has not reached pension age; or
- an income support supplement payable to a person who has not reached qualifying age.
Section 5F(1) of the VEA defines dependent child as having the same meaning as in the Social Security Act 1991. For income support purposes, dependent child is defined as:
Child under 16 years
- the pensioner has legal responsibility either alone or jointly with another person for the day to day care, welfare and development of the young person AND the young person is in the pensioner's care, or
- the young person is not a dependent child of someone else AND the young person is wholly or substantially in the pensioner's care.
A child under 16 years cannot be considered a dependent child if:
- they are not a full-time student, and
- their weekly income from any source is more than the amount specified in section 5(3)(c) of the Social Security Act.
Child 16 years or older
A young person who has turned 16 years but is under 22 years can still be a dependent child of the pensioner if:
- they are wholly or substantially dependent on the pensioner, and
- their income in the financial year will not exceed the personal income limit, and
- they are receiving full-time education at a school, college or university.
A child over 16 years cannot be considered a dependent child if:
- they receive a social security pension or benefit such as youth allowance, or
- their personal income is more than the amount specified in section 5(4)(b) of the Social Security Act.
Income includes earning from casual, part-time or full-time earnings.
Note: the meaning of a dependent child for DVA income support pension purposes is not the same as the meaning for Family Tax Benefit purposes.
According to Schedule 6-B1 of the VEA a MBR is the person's maximum rate is ascertained at the date of grant of the designated pension, and is the maximum annual pension rate payable at the date of grant (excluding allowances).
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