Section 115D VEA – Reduced daily pension amount - pensions under Parts II and IV
Where invalidity service pensioners are participating in the Veterans' Vocational Rehabilitation Scheme (VVRS), an income safety net applies. This safety net allows for 50% of the pensioner's income to be disregarded during their first two years of participation in the VVRS, before reducing over the following five years at 5% every six months, until after seven years the full income amount is assessable.
As VVRS and work bonus both result in discounted employment income, the VEA allows the more beneficial pension outcome to be applied. Where the Work Bonus income test concession applies to a pensioner and the income concession amount is equal to or greater than the VVRS excluded income amount, the VVRS excluded income amount does not apply and the pensioner is given the benefit of the Work Bonus income concession. Where the Work Bonus income concession is less than the VVRS excluded income amount, the Work Bonus income concession does not apply and the pensioner is given the benefit of the VVRS excluded income amount.