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11.2.2 Instalments and Dates of Effect for Payments, Pensions and Allowances

Last amended 
1 January 2022


Instalments of disability compensation payment and war widow's/widower's pension

Disability compensation payments and war widow's/widower's pensions are paid fortnightly in arrears. An instalment is payable in respect of the number of days in each fourteen day pension period for which the person is eligible and the pension is payable. (There is however no DCP/WWP entitlement in the payment/pension period in which the disability compensation payment recipient or war widow/er pensioner dies).    

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The instalment for the pension period will be payable on the next pension payday after the end of the pension. Variations to payments, pensions or allowances begin affecting the rate of payment from the day the determination is made. In the case of an application for increase in pension, the date of effect would normally be the date the application is received at an office of the Department in Australia.

In the case of a reduction the date of effect specified would normally be the first day of the pension period.     

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Daily entitlement

Daily entitlement is the amount of pension that is payable on a given day. This method of calculating pension instalments means that the pension for each payday will be made up of an amount for each day of the fourteen day pension period. The rate of pension payable to a person for a day is calculated by dividing the fortnightly rate of pension by 14. A system of daily entitlement will mean that:

  • an instalment of pension can be made up of one or more pension rates, and
  • pension variations may be effective from any day in the fortnight.
Allowances included in daily entitlement

Decoration allowance, clothing allowance, attendant allowance and recreation transport allowance are also paid fortnightly in arrears and on a system of daily entitlements.


Victoria cross allowance, loss of earnings allowance, temporary incapacity allowance and VCES payments are not paid using daily entitlements.

Dates of effect for new claims and increases in payments




The following table outlines dates of effect for grants and increases of Veterans' Compensation payments:


Type of claim/payment


then the date of effect will be

new claim for disability compensation payment

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the new claim for disability compensation payment is accepted

3 months before the date of receipt at a DVA office.    



increase in rate of disability compensation payment

the application for an increase in disability compensation payment is accepted

the date of receipt at a DVA office.    




claim for war widow's/widower's or orphan's pension    

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a death is accepted as related to service and the death occurred at least 3 months ago

3 months before the date the claim was received at a DVA office.    



a death is accepted as related to service and the death occurred less than 3 months ago

the day after the death.    



claim for:

  • Clothing Allowance,
  • Attendant Allowance, or
  • Recreation Transport Allowance    More →

the application is made within 3 months of an injury or disease being determined as war-caused, and is accepted

the date on which the determination is made.    




application is made at any other time and is accepted

the date on which the application is received at a DVA office.    



Allowances paid with respect to a period

Some Vetetrans' Compensation allowances are paid with respect to a relevant period, or are paid as a lump sum. These periods and lump sum payments are outlined below:    

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  • Temporary Incapacity Allowance is paid for a period of hospital or other institutional treatment for a war or defence caused disability. The period must be at least 28 days and commences from the date of hospitalisation. The period may include post discharge rest and recuperation.    VEA →
  • Loss of Earnings Allowance is paid for the period the veteran must be absent from work without sick leave pay due to their war-caused injury or disease.    VEA →
  • Vehicle Assistance Scheme provides lump sum payments to assist in purchasing a car, and to be used towards the cost of maintenance.    VEA →
Date of effect for new or amended Statements of Principles

A new Statement of Principles or a SoP that amends an existing SoP takes effect when it is notified in the Australia Government Gazette. Notification in the Gazette counts as informing the public at large that new SoPs have been made.    

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Overview of Disability Compensation Payment Instalments and Effective Dates

Section 11.2.1


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Disability Compensation Payment Eligibility

Chapter 4.1

Income Support Effective Dates and Pension Periods

Chapter 11.1


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Section 20 VEA Date of operation of grant of claim for pension

Section 21 VEA Date of operation of grant of application under Section 15

Section 114 VEA Commencement of payment of certain allowances


VEA → (go back)


Disability Compensation Payment Eligibility

Chapter 4.1


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War Widow(er)s' Pension Eligibility

Chapter 4.2


Orphan's Pension Eligibility

Chapter 4.3


More → (go back)


Statements of Principles

Chapter 4.5


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Disability compensation payment (known before 2022 as disability pension), for the purposes of service pension, income support supplement and veteran payment, means:

  • a pension paid by way of compenstion for incapacity from war caused conditions, or peacetime, peacekeeping or hazardous service caused conditions (other than a war widow's or orphan's pension); or
  • temporary incapacity allowance; or
  • any other payment in respect of incapacity or death resulting from war or war-like operations in which the Crown has been engaged (usually paid by another Commonwealth country).

Please note that the Disability Compensation Payment is legally a pension by way of compensation under the VEA so that concessional benefits under state, territory and local government legislation to pensioners/pensions under the VEA are not denied.


A form of pension that is paid to the partner of a veteran where the veteran has died as a result of war service or eligible Defence ServiceWar widow's/widower's pension is also paid to the partner of a veteran whose death was not war caused if the veteran was a ex-prisoner of war or if the veteran was receiving Extreme Disablement Adjustment (EDA) Rate, Special Rate (T&PI) or a rate increased in respect of certain war-caused injury or disease.


The Department of Veterans' Affairs.

Statement of Principles means:

  • a Statement of Principles determined by the RMA under section 196B of the VEA; or
  • a determination made by the Repatriation Commission under section 180A of the VEA; or
  • a Statement of Principles concerning a particular kind of injury or disease made available to the VRB by the Repatriation Commission under paragraph 138(2)(a) of the VEA.