DFISA Calculation (ceased 2022)

DFISA was removed 1 January 2022.  This is for historical reference only.  

The DFISA rate

DFISA was the difference between a person's rate of income support payment and what the payment would be if adjusted DP were exempt from the assessment, but included in the calculation of rent assistance.    

Changes in the primary payment assessment rules which determined the extent to which adjusted disability pension may have reduced the person's rate of income support payment, such as the income free area for social security benefits and pensions, may have had a flow on effect on the calculated rate of DFISA.

Who calculates the DFISA rate?

A person's rate of DFISA was calculated by the agency that assessed their income support payment.    

No change in income support payment

The DFISA calculation did not change the person's existing income support payment assessment. The notional rate assessment was only used for comparison with the person's actual rate to determine whether DFISA was payable. No one received an increase in income support payment, or a reduction in rent assistance, as a result of DFISA.

The DFISA formula

The rate of DFISA was calculated as a daily entitlement, paid in fortnightly instalments. DFISA was the difference between the person's notional rate of income support payment and their actual rate of income support payment payment.

Note: If the compensation recovery rules applied to the person, the DFISA formula required additional steps.     

The actual rate

The actual rate was the rate of payment as assessed under existing social security, ABSTUDY or DAFF rules. It was the amount payable to the person, including supplementary payments and rent assistance, but excluding remote area allowance (RAA) and any deductions such as deductions for lump sum advance. For some people this rate was nil.    

The notional rate

A person's notional rate was calculated by excluding the adjusted DP of the person and/or the person's partner from the assessment of their rate of income support payment. This may have led to a notional increase in the person's rate of income support payment. If the person rented, a notional rate of rent assistance may have been included in the calculation of their notional rate.     

If deductions or additions apply

The actual and notional rates were those calculated before deductions (such as lump sum advance repayments) or additions (such as remote area allowance) were made.

Notional rent assistance

If the person being assessed for DFISA was entitled to rent assistance under social security law or under the ABSTUDY guidelines, the adjusted DP was used to calculate a rent assistance reduction amount in order to determine the notional rent assistance rate. The rent assistance reduction amount was subtracted from the person's rent assistance rate to give the notional rent assistance rate. Calculation of the rent assistance reduction amount used the same taper rates and income free areas as applied to the person's income support payment. Note: this step was notional only. There was no change to the person's actual payment of rent assistance.     

Taper rates and free areas

When calculating notional rent assistance reference was made to taper rates and income free areas. These were the same taper rate and income free areas that applied to the person's primary payment. Taper rates vary from payment to payment. Age, service and disability support pensions all have the same taper rate and free areas. However, other primary payments differ, for example, jobseeker allowance has a lower free area and higher taper rates with two thresholds.

DFISA rate differed from the rate expected

Some people did not receive any amount of DFISA, even though they were eligible for DFISA. Others may have received less than they thought they would receive as a result of the impact of adjusted DP on their income support payment.