Effective Dates for General Variations

Last updated 25 November 2008

Dates of effect for reductions, suspensions or cancellations

Reductions suspensions or cancellations of service pension or ISS that are not automatic determinations in response to section 54 obligations must take effect on the day of determination or another day specified in the determination. The day specified must be later than the day of determination. The only cases where the day specified can be earlier than the determination are where there has been:

• a contravention of the VEA (such as a failure to claim a comparable foreign pension),     
  VEA →

  Section 56H(4) VEA Date of effect of adverse determination

  VEA → (go back)

•       a false statement or misrepresentation,    
  VEA →

  Section 56H(5) VEA - suspension or cancellation

  Section 56H(6) VEA - rate reduction

  VEA → (go back)
•       a payment of arrears of periodic compensation causing a change in entitlement to service pension or ISS, or     
  VEA →

  Section 56H(7) VEA - suspension or cancellation

  Section 56H(8) VEA - rate reduction

  VEA → (go back)
•       duplicate payments of rent assistance.

Duplicate payments of rent assistance

When a determination is made that a pensioner has been incorrectly receiving duplicate payments of rent assistance, a reduction or cancellation of service pension or ISS can pre-date the determination. This would occur if:

In either case, the reduction or cancellation is to commence on the first day of the period during which duplicate payments of rent assistance were received and may be earlier than the date of the determination.     

Date of effect for increases

The date of effect for favourable determinations is determined under subsection 56G VEA. Specifically, subsection 56G(2) applies where the person notifies of a change of circumstances that results in an increased rate of pension, while subsection 56G(3) applies in all other cases. Subsection 56G(3) cannot prevail over the specific provisions of subsection 56G(2). Examples of where subsection 56G(3) applies include:

• a global refresh of shares and managed investments,
• an annual review of income streams
• a review of earnings takes place by way of the department asking a person's employer for salary or wage particulars for six months; and
• in the case of an administrative error. 

Determining the date of effect under subsection 56G(3)

Subsection 56G(3) provides unlimited discretion to use any date of effect for a pension increase. However, a decision maker must comply with general principles of administrative law which apply to administrative decision making when applying the broad discretion provided by subsection 56G(3). A decision maker must take into account all relevant considerations in the exercise of a power.  These include:

• a decision maker must not take into account an irrelevant consideration in the exercise of a power;
• a decision maker must base their decision on logically probative (tested or proven) evidence; and
• a decision maker must comply with the rules of natural justice      
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  Making Decisions Under the VEA

  2.3.2/Making Decisions Under the VEA

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Date of effect for increase earlier than determination after a review of a decision

When a review of a decision results in an increase in pension, the date of effect is the date that the increase would have been applied from when the original decision was made.    

Dates of effect for end of suspension

The date of effect for the end of a suspension of service pension or ISS can take effect from the day the suspension occurred or a later day decided by the Commission.

Date of effect for dependant child

If a variation to pension is made due to a person informing the Department that they have a dependent child, the determination takes effect on the day the child is taken to have become a dependant child. This day is determined under the Social Security Act 1991.