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Compensation and Support Policy Library
Part 11 Administration of Payments
11.7 Imprisonment
- 11.7.2 How Payments and Benefits may be Affected
Date amended:
Pension and payment instalments
For the purpose of imprisonment, a pension instalment includes:
- service pension or
- income support supplement, and
- rent assistance
- remote area allowance
- pension supplement
- Energy Supplement for service pension
- veteran payment
Other payments that may be affected
Other payments that may be affected include:
- Education entry payment (EdEP)
- dependent child add on
- bereavement payments in respect of service pension and income support supplement
- attendant allowance
- loss of earnings allowance
- vehicle assistance scheme
- recreation transport allowance
Effect on the Pensioner Concession Card (PCC)
Entitlement to the PCC is lost if the pensioner's pension is suspended. If the pension instalments are redirected to the person's partner or child/ren, the payment is taken to be a payment made to the person in gaol. As a result, the person in gaol remains eligible for fringe benefits. The PCC cannot be redirected to another person.
Children's' eligibility for concessional pharmaceuticals
While the pensioner is in gaol any dependent children are no longer dependants of the pensioner. If the children go into the care of a person who is an income support recipient or who is eligible for the highest rate of Family Tax Benefit Part A, the children will continue to be able to access concessional pharmaceuticals as the dependent children of the pensioner guardian.
Foster Child Health Care Card (HCC)
If the children go into the care of a person who is not an income support recipient and who is not the biological parent of the children, the person may apply for a Foster Child Health Care Card from Centrelink. Eligibility for the Foster Child HCC is not income or assets tested and the person does not have to have been formally appointed as a foster carer.
Effect on Gold Card
Eligibility for treatment at Departmental expense
Section 53D(3) VEA
Veterans eligible to be provided with treatment
Section 85(8) VEA
Entitlement to the Gold Card will not be lost, unless the entitlement is derived from the rate of service pension being paid to the person. If entitlement is derived from the rate of service pension, or from receiving greater than 50% Disability Compensation Payment and any amount of service pension, that entitlement is lost when the service pension is suspended, unless the Commission makes a determination that the person continues to be eligible for treatment as a Gold Card holder. Any such determination must be made under one of the three provisions below:
- section 53D(3) VEA allows the delegate to determine, on the merits of the case, that a person whose service pension is suspended may continue to be treated as though still receiving service pension for the period of the suspension.
- section 55A(1) VEA allows the Commission to direct that all or part of an instalment that would otherwise be suspended or forfeited due to imprisonment of the person be paid to the partner or child of the person. The person is considered to still be receiving service pension and therefore retains their Gold Card
- section 85(8) VEA allows the Commission to declare by instrument in writing that a client whose service pension has been suspended will continue to be eligible for treatment at departmental expense as a Gold Card holder.
Regardless of whether or not the person continues to be a Gold Card holder, any health care needs while in prison are met by the state, not by DVA.
Entitlements not affected by imprisonment
The following entitlements are not affected by imprisonment:
- Repatriation Health Card – for Specific Conditions (White Card)
- Commonwealth Seniors Health Card
- Disability Compensation Payment (including above general rate and specific disability amounts)
- bereavement payment in respect of disability pensions under Part II VEA and Part IV VEA
- war widow(er)'s pension
- orphan's pension
- Decoration and Victoria Cross Allowance
- Clothing Allowance
- Veterans' Children Education Scheme if all eligibility criteria continue to be met
- entitlements relating to a period prior to imprisonment
- energy supplement for all underlying payments except service pension
- veteran supplement
Bereavement payment
If a pensioner receives bereavement payments in respect of an income support pension and is subsequently imprisoned, the bereavement payment may be redirected in the same manner as the income support pension. Bereavement payment is payable in respect of a pensioner who dies while imprisoned if the pensioner's income support pension is being redirected to a partner or child.
A bereavement payment cannot be paid when an income support pension has been suspended or forfeited due to imprisonment, as the definition of pensioner has not been met.
If a pensioner receives bereavement payments in respect of a Disability Compensation Payment, the bereavement payment continues to be payable to the pensioner while imprisoned.