Social Security Payments Payable at Nil Rate (DFISA removed 2022)

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  This is for historical reference only.

Social security law provision

Subsection 23(1D) of the Social Security Act 1991 commenced on 20 September 2004 and was repealed 31 December 2021 which was to ensure that people receiving a nil rate of social security payment and DFISA payment:     

• were subject to the obligations applicable to their primary payment,
• were entitled to certain benefits associated with their primary payment, and
• did not have their claim for a social security payment rejected or their payment cancelled because their rate of payment would be nil.

The provision applied both to people actually receiving DFISA and to those who, although entitled to DFISA, had elected not to receive the payment.    

Nil rate of social security payment and DFISA

A person to whom subsection 23(1D) of the SSA applied remained subject to all provisions of social security law applicable to a recipient of the relevant social security payment. This occurred despite the person not actually receiving an amount of the social security payment.     

Impact on recipient obligations

A person to whom subsection 23(1D) of the SSA applied was subject to the obligations applicable to their social security payment.

Entitlement to concessions and benefits

A person to whom subsection 23(1D) of the SSA applied was also entitled to all additional benefits available to the recipient of that primary payment, including concession cards (pensioner concession card or health care card) and supplements.

These benefits were administered by the agency responsible for the social security payment.

Entitlement to Commonwealth Seniors Health Card

A person to whom subsection 23(1D) of the SSA applied was not eligible for a Commonwealth Seniors Health Card (CSHC) because they were taken to be receiving income support.

Remote area allowance payable to some nil rate beneficiaries

Subsection 23(1D) of the SSA did not authorise the payment of remote area allowance (RAA) to a person receiving a social security payment at nil rate and DFISA payment. RAA eligibility had instead been extended through section 118NE VEA. In this circumstance, provided that the person met all the other criteria for remote area allowance, RAA was payable under this VEA provision.