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Accounts into Which Direct Credit Payments can be Made


Last amended: 29 July 2010

Acceptable types of accounts

Payment can be made to any Australian transaction account, held at any financial institution, provided the account has:

  • a valid BSB code, and
  • an account number of 9 digits or less.

Payments cannot be made to debit accounts such as credit cards, and fixed term investments such as term deposits.

Direct credit payment to account of pensioner


Generally, the account into which direct credit payments are to be made must be an account that is nominated and maintained by the person to whom the pension is payable. In order to ensure that the payment is being made to the pensioner, ideally the account title should match the current pensioner name as recorded on VIEW. However, payments can still be made to the account if a link can be established between the payee name and a historical name recorded in notes on VIEW.

Where appropriate, a file note should be added that differences in the payee name and the pensioner name have been investigated and a link exists between the two names.

Direct credit payment to joint account


The account into which direct credit payments are to be made can also be a joint account maintained by the pensioner jointly (or in common) with someone else.

Direct credit payment to family trust account


A family trust bank account can be the destination for pension payments provided that the veteran's control of the trust satisfies the maintenance test as in section 58F of the VEA.

Direct credit payment to account of agent

Where a pensioner's payments are being made to an agent, the direct credit may be made into an account operated by the agent if this is requested by the pensioner. The payment may be made to an account held solely in the agent's name, or to a joint account held by the pensioner and agent.    

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Direct credit payment to account of trustee

Where a pensioner's payments are being made to a trustee, the direct credit may be made into an account operated by the trustee if required.    

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According to section 58D of the VEA, an agent is a person who has been nominated by a pensioner and approved by the Commission to receive pension instalments on behalf of the pensioner. The agent must:

  • pay the pension or allowance to the pensioner; or
  • manage the pension or allowance in accordance with the pensioner's wishes.



Trustee has two meanings depending on the context, (i) and (ii).

(i) a person who looks after someone else's affairs

According to section 202 of the VEA, a trustee is a person appointed by the Commission to administer the financial affairs of a pensioner who may be incapable of managing their own affairs for reasons such as:

  • age,
  • infirmity,
  • ill health, or
  • improvidence.

These criteria include circumstances where a pensioner has a psychiatric disorder or a mental illness as a result of alcohol or drug addiction.

A trustee can be appointed, with or without the consent of the pensioner and once appointed, a trustee has full control of the pension payment.

(ii) a person responsible for administration of a trust

According to section 52ZO of the VEA, trustee has the same meaning as in the Income Tax Assessment Act 1997.