Remote Area Allowance

Legislative Authority

Veterans' Entitlements Act 1986
Section 5Q(1) (definition)
Schedule 6 Module G

Income Tax Assessment Act 1936

Stated Current Purpose/Intent

To help offset the higher than normal costs incurred by service pensioners and income support supplement recipients whose permanent place of residence is situated in a remote area of Australia.

Current Eligibility Criteria

A person is eligible if the person is receiving, or eligible to receive, service pension or income support supplement and permanently resides in the remote area.

A person who is eligible for remote area allowance and has family tax benefit children, is eligible for remote area allowance for each eligible child.  The child does not have to live in the remote area, but must normally be in Australia.

Remote area allowance will be payable for up to 8 weeks if the child is overseas temporarily.  Remote area allowance for family tax benefit children will be paid as part of the DVA pension, not by Services Australia.

Notes

1. Though remote area allowance is not subject to either the income or assets tests and is not taxable, it does affect any zone tax offset otherwise available to the pensioner from the Australian Taxation Office.

Date of Introduction

Remote area allowance was introduced into the DVA in 1984.

Original Purpose/Intent

The original purpose has not changed.