9.4.4 Payments in Respect of Saved Children

Last amended: 1 May 2003

Saved child/children cases

This is for historical reference only.

On 1 January 1998, pensioners who were financially disadvantaged by or would lose their treatment entitlement because of the transfer of child related payments to Centrelink or who had no FTB entitlement (overseas residents and Norfolk Islanders) continued to have child related payments paid by DVA[glossary:.:]

Child related payment may discontinue

Child related payments will continue to be paid until the child becomes ineligible or the dependent child turns 16. An example of a child becoming ineligible would be if the child were no longer dependent on the pensioner. A person may also stop receiving child related payments from DVA if they elect in writing to receive payments of FTB under the A New Tax System (Family Assistance) Act 1999. A person may decide to do so if the FTB would be greater than the child related payments they would be receiving from DVA.    

Savings provisions

The savings provisions under which these payments continued to be paid by DVA only applied to pensioners who:

• were in payment prior to 1 January 1998 and whose service pension or income support supplement included dependent child add-on, guardian allowance or additional rent assistance because of a dependent child, or
• had lodged a pension claim on or before 31 December 1997 and whose service pension or income support supplement included dependent child add-on, guardian allowance or additional rent assistance because of a dependent child.

Since 1 January 1998, it has not been possible for any new dependent child to be a saved child, unless the claim was lodged on or before 31 December 1997.

Dependent child add-on

Dependent child add-on is included in the calculation of a person's service pension or income support supplement where that person has a saved child.    

The amount of the dependent child add-on depends on whether the child is under 13 years or between 13 and 15 years.    

It is possible that in some cases only a percentage of the dependent child add-on is being paid to a pensioner. If this is the case, it is because only a percentage of the Family Tax Benefit payment is being made to the pensioner, and the Commission has determined, under section  42-C3AA of the VEA as in force on 31 December 1997, that only a percentage of the dependent child add-on is to be paid.

Guardian allowance

Guardian allowance is included in the calculation of a person's service pension or income support supplement where that person has a saved child and if that pensioner:

• is not a member of a couple, or
• is a member of an illness separated or respite care couple.     
  More →

   

  Chapter 9.1 Income and Assets Test Principles

   

  Reference Library – Pension Rates

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Rent assistance

If a pensioner with a saved child is eligible for rent assistance, the rate of rent assistance payable may be increased because of that child.    

If a service pensioner with a saved child is eligible for rent assistance, any disability pension may reduce the rate of rent assistance payable to the person. In such a case, a rent assistance free area applies. The rent assistance free area is increased for each dependent child. As with the ordinary/adjusted income free area, the additional rent assistance free area may be reduced by payments made to the pensioner or the pensioner's partner in respect of the child.    

Maintenance paid in respect of saved children

The rate of service pension or income support supplement payable to a pensioner with a saved child may be affected by maintenance income, in respect of a dependent child, being received by the pensioner or their partner.