3.11.2 Lump Sum Advance Eligibility

Eligibility criteria for lump sum payment

To be eligible for the lump sum advance the person must meet the following criteria:

• a Part II, III, or IV pension or income support supplement is payable, and
• have been eligible to be paid a DVA pension that can be advanced, or have been receiving a social security pension or social security benefit through Centrelink, continually during the three months before applying for the advance,
• be able to afford to repay the advance without suffering severe financial hardship,
• be eligible to receive an advance above the minimum advance amount,
• not have an advance payment of pension or a social security entitlement under Part 2.22 of the Social Security Act 1991 that has not been fully repaid after 12 months,
• not owe any money to the Commonwealth under section 205 or 205A of the VEA.

Additionally, a person may be eligible for multiple advances. In accordance with rules set out under 79K of the VEA, a person's advance amount from the previous 13 fortnights which has not been repaid must be subtracted from any new advance paid to the eligible person.

Note: a person is eligible to be paid pension from the date of effect of the grant of pension.

Australian residency requirement

The applicant for the lump sum advance must be an Australian resident and be residing in Australia when the application is lodged.

Pensioners not eligible for the advance

Some persons are not eligible for the lump sum advance payment because they are in receipt of payments that can not be advanced. These include:

• a beneficiary under the Veterans' Children Education Scheme, or
• a person receiving veteran payment.

Duty of care issues

The likelihood of an advance being misused is not a factor in assessing an application for an advance.

Capacity to repay

If the pensioner indicates on the application form that:

• they can afford to repay the advance, and
• there is nothing in the pensioner's record to suggest otherwise,

the delegate should have no reason not to be satisfied that the pensioner can manage on a reduced pension and would not suffer financial hardship. For cases where there is doubt, the delegate may require the completion of the form D0557, Lump Sum Advance Payment, Income/Expenses Calculator. The purpose of the form is to satisfy the assessor that an application considered doubtful would not result in the applicant suffering hardship from repaying the advance.