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3.12.6 Claim and Payment of a Crisis Payment
Last updated 5 March 2013
Claim for a crisis payment
A claim for a crisis payment must be:
- on an approved form:
- D0567 – Application for crisis payment – prison/hospital release, or
- D0568 – Application for crisis payment – extreme circumstances and domestic or family violence,
- made in Australia,
- made by the person or their authorised representative, and
- within seven days of the extreme circumstance occurring or from the date of prison release.
Informal claim for a crisis payment
An informal claim for crisis payment can be lodged by a person who is in Australia and eligible for a crisis payment on the day of claim or informal claim. An informal claim must be followed by a proper claim within fourteen days.
Rate of crisis payment
The rate of crisis payment is a flat rate of one week's pension based upon the maximum basic rate of pension, pension supplement and clean energy supplement. Therefore, the amount of a crisis payment is half the fortnightly service pension rate. For income support supplement recipients, their payment is not based upon the ceiling rate but rather upon the relevant rate of service pension, according to whether they are partnered or single.
Methods of payment
Payment of the crisis payment should be paid into a financial institution but the payment can be paid in another manner (e.g. by cheque) where this is directed by a delegate of the Commission authorising the payment.
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A crisis payment is a one-off non-taxable payment to extend immediate financial assistance to people in severe financial hardship who:
- are forced to leave their home due to extreme circumstances, such as domestic or family violence or a house fire, or
- have been subjected to domestic or family violence by a family member and choose to remain in the family home after the perpetrator has left or been removed from the home, or
- released prisoners released from either goal or psychiatric institutions.
Domestic or family violence is described by a variety of terms, including but not restricted to:
- assault, sexual assault,
- child, wife/partner, elder abuse,
- domestic violence,
- economic, social, verbal, emotional, psychological abuse,
- financial coercion,
- maltreatment, or
To be a proper claim, the claim must be:
- made in writing;
- in accordance with a form approved by the Commission; and
- accompanied by any evidence available to the claimant that the claimant considers may be relevant to the claim
According to Schedule 6-B1 of the VEA a MBR is the person's maximum rate is ascertained at the date of grant of the designated pension, and is the maximum annual pension rate payable at the date of grant (excluding allowances).
The energy supplement is a fortnightly or quarterly payment designed to help recipients meet the cost of electricity and gas bills.
The ceiling rate of service pension and income support supplement (ISS) is applied to all war widows/widowers when assessing the rate of pension. This amount was previously frozen at $124.90 per fortnight, however, since legislation was introduced in September 2002, is now indexed twice yearly in line with percentage increases in the maximum rate service pension. A higher ceiling rate can apply, however, in the following cases:
If a person:
became a war widow/widower-pensioner before 1 November 1986,
has continually received service pension, social security pension or ISS since that date, and
the rate of pension immediately before that date was more than $120.10
in such a case the ceiling rate is equal to the pre-November 1986 rate plus 4%.
If a person:
is a person to whom ISS is payable,
is not permanently blind, and
whose War Widow's/Widower's Pension paid under Part II or IV ot the VEA is compensation reduced,
the ceiling rate is the sum of the ceiling rate as calculated above and the amount of the reduction in the Part II or Part IV pension. The maximum ceiling rate cannot exceed the maximum rate of single service pension. For ceiling rates refer to SCH6-A4 to A9 of VEA. The amount of increase to the ceiling rate pension under Part II or Part IV is worked out by using the formula in SCH6-A9 of the VEA.
Examples of a financial institution are a bank, building society or credit union.