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3.1.1 Overview of Service Pension Eligibility

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Last amended: 14 March 2024

    

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What is a service pension?

Service pension is a means tested income support payment, that provides a regular income for people with limited means. Service pension is broadly equivalent to the Centrelink age and disability support pensions. Although similar to such pensions, service pension has a certain advantage over the equivalent Centrelink payments in that Service Pension is payable from the age of 60 compared to 67 years of age for Social Security Age Pension. 

When is it paid?

Service pension is paid fortnightly, based on daily entitlements. The rate of service pension is adjusted twice-yearly, in March and September, in line with movements in the cost of living and/or average wages.

Who is eligible for service pension?

Service pension is primarily payable to veterans. However, the VEA also provides for payment of service pension to certain partners and certain widows/widowers of veterans.

Different types of service pension

There are three different forms of service pension:

Factors that affect the rate of service pension

There are a number of factors that determine the rate of service pension, such as:    

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Allowances and benefits accessed by a service pensioner

There are a number of allowances and benefits that can be accessed by a service pensioner, if the person meets the relevant eligibility criteria.     

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Restrictions on dual pensions

    

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Restrictions exist on the payment of dual pensions.    

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A service pension is an income support payment broadly equivalent to the social security age and disability support pensions. It may be paid once a veteran or partner has reached the nominated age or is incapacitated for work.

Means testing is application of the income test and the assets test to determine a person's rate of pension.  The rate that is payable to a person is the lesser of the rates determined under each test.  All income support pensions paid by DVA are means tested.

 

 

Centrelink is a Government service delivery agency responsible for delivering a range of Commonwealth Government services (including social security pensions and allowances) to the Australian community through a network of more than 400 Centrelink offices.

A Disability Support pension is paid by Centrelink to claimants with a significant and long term inability to work and is broadly equivalent to an Invalidity service pension paid by DVA.

Veterans' Entitlements Act 1986.

A person's 'partner' is someone who is a member of a couple with that person.

According to section 5H of the VEA income is:

  • an amount earned, derived or received by a person for the person's own use or benefit;
  • a periodical payment by way of gift or allowance; or
  • a periodical benefit by way of gift or allowance.

 

 

An asset means any property, including property outside Australia.