5.9.1 Overview of DFISA (ceased 2022)

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  This is for historical reference only.   

What was DFISA?

The Defence Force Income Support Allowance (DFISA) was an income support payment made by DVA under the Veterans' Entitlements Act 1986. DFISA was payable to a person whose social security income support payment was reduced or not payable because of adjusted disability pension.

What was DFISA-like payment?

The Defence Force Income Support Allowance–like (DFISA-like) payment was an income support payment made by DVA under regulations made under the Veterans' Entitlements Act 1986. The DFISA-like payment was payable to a person whose:    

• income support payment administered by the Department of Agriculture, Fisheries and Forestry (DAFF) except for Farm Household Allowance (see below), or
• living allowance made under ABSTUDY guidelines administered by the Department of Education,

was reduced or not payable because of adjusted disability pension.

Since 2014, the Department of Agriculture's Farm Household Allowance (FHA) paid by Centrelink did not include Adjusted Disability Pension in the FHA income test and thus there was no DFISA-like payment.    

Who did DFISA affect?

DFISA was paid to social security income support recipients whose rate of social security payment was impacted by the inclusion of adjusted DP in their assessment. Those payable included recipients of a social security payment, at nil rate or above, whether paid by Centrelink or DVA.    

What determined the DFISA rate?

The DFISA rate was primarily determined by the amount of adjusted disability pension included in the assessment of the social security payment. However, other changes to the social security primary payment assessment rules, such as the income free area for social security benefits and pensions, may also have had a flow on effect on the calculated rate of DFISA.

Who did DFISA-like affect?

DFISA-like was paid to recipients of income support payments administered by DAFF and ABSTUDY living allowance whose rate of payment was impacted by the inclusion of adjusted DP in their assessment. DFISA-like payments were calculated and paid in the same manner as DFISA.

Throughout the rest of this chapter, except where specifically excluded, DFISA is taken to also refer to DFISA-like.

Calculating the DFISA rate

DFISA was calculated as a daily entitlement and paid in fortnightly instalments. The DFISA calculation varied if compensation recovery rules applied.    

DFISA bonus

A person was entitled to the DFISA bonus if their social security pension bonus was reduced because of the inclusion of adjusted DP in the calculation of their age pension rate.    

There was no DFISA bonus payable to recipients of DFISA-like payment.

Bereavement payments and DFISA

The bereavement payment provisions of both the Social Security Act 1991 (SSA) and the VEA took into account DFISA.    

There were no changes to bereavement payment provisions in relation to recipients of DFISA-like payment.

Other DFISA impacts

DFISA entitlement may have impacted other payments, benefits and arrangements.