3.6.1 Overview of Permanent Incapacity

Last amended: 4 October 2011

Permanent incapacity and income support payments

Incapacity for work is established when a person's actual ability to engage in paid employment is reduced by their impairment/s alone. Entitlement to an invalidity service pension or invalidity income support supplement [glossary:(:]ISS[glossary:):] must arise from a person's physical, intellectual and/or psychiatric impairment/s. To determine a person's incapacity for work, consideration is to be given to medical factors only. This means that non-medical considerations such as the local employment market, a person's location, transport requirements or family circumstances are not relevant factors when determining permanent incapacity for employment. The incapacity test for invalidity service pension and income support supplement purposes is based solely on the combined level of medical impairment resulting from recognised medical conditions.    

Assessment of permanent incapacity pre- and post 1/1/2000

The rules for determining permanent incapacity were changed, effective from 1/1/2000. The pre 1/1/2000 test of invalidity continues to apply for veterans and war widow/ers who were receiving, or who had claimed, invalidity service pension or invalidity income support supplement prior to this date. Delegates reviewing an invalidity service pension or invalidity income support supplement case should first establish the original date of permanent incapacity, in order to determine the definition of permanent incapacity that will apply.    

Di — fferent tests of permanent incapacity apply to invalidity service pension and invalidity income support supplement under the post 1/1/2000 rules.     

Persons automatically considered to be permanently incapacitated – invalidity service pension

In certain situations a person may be regarded as permanently incapacitated (for the purpose of invalidity ISS) or permanently incapacitated (for the purpose of invalidity service pension) without the need to seek a medical examination. These include where the person is:

• permanently blind in both eyes, or
• a special (TPI) rate pensioner (but not receiving a temporary payment of special rate, colloquially known as TTI pension), or
• manifestly disabled.    
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  Section 3.6.3 Persons Automatically Considered to be Permanently Incapacitated

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Persons automatically considered to be permanently incapacitated – invalidity income support supplement

In certain situations a person applying for invalidity income support supplement may be regarded as permanently incapacitated for the purpose of invalidity income support supplement without the need to seek a medical examination. These include where the person:

• has qualified for disability support pension (DSP) from Centrelink within the last two years, or
• is permanently blind in both eyes, or
• is manifestly disabled.

Assessment of invalidity service pensioners participating in Veterans' Vocational Rehabilitation Scheme (VVRS)

VVRS assists veterans to find, or continue in, suitable paid employment. Services are provided on the basis of assessed need and subject to the likelihood of their obtaining a suitable and sustainable employment outcome. An incapacity assessment must be made on any application for invalidity service pension. This still applies where the veteran applies for both invalidity service pension and VVRS at the same time.