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DFISA Calculation and Compensation Recovery Rules
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DFISA calculation and the compensation recovery rules
If the DFISA recipient's social security payment is reduced because of the compensation recovery rules in Part 3.14 of the Social Security Act 1991, a separate formula is used to calculate the rate of DFISA.
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DFISA formula for compensation recovery cases
If the person's primary social security payment is subject to compensation recovery, both the notional rate and the actual rate are reduced before the rate of DFISA is calculated. The following table details these additional steps.
|
Step |
Action |
|
1 |
Calculate the person's actual rate |
|
2 |
Subtract the amount by which that rate is reduced under the SSA compensation recovery rules. |
|
3 |
Calculate the person's notional rate. |
|
4 |
Subtract the amount by which that rate would be reduced under the SSA compensation recovery rules if it were the person's actual rate. (This is the same amount as in Step 2.) |
|
5 |
Subtract the result of step 2 from the result of step 4. This gives the rate of DFISA payable. |
Compensation preclusion period and DFISA
If a person has received a lump sum compensation payment which attracts a lump sum preclusion period under the SSA, no DFISA is payable. This is because, during a lump sum preclusion period, the compensation affected payment is not payable. As a result, both their actual and notional rates of social security payment will be nil.
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Rate of DFISA
Section 118NC(2) VEA
Social Security Act 1991: Part 3.14 Compensation Recovery
http://www.comlaw.gov.au/comlaw/management.nsf/lookupindexpagesbyid/IP200401781?OpenDocument
Social Security Act 1991: Part 3.14 Division 3 Receipt of Compensation
http://www.comlaw.gov.au/comlaw/management.nsf/lookupindexpagesbyid/IP200401781?OpenDocument
Defence Force Income Support Allowance (DFISA) is an income support payment to be made by DVA to people whose income support payment under Social Security Law is reduced, or not payable, because of the impact of adjusted disability pension. DFISA is the difference between the person's existing entitlement, and what the entitlement would have been had adjusted DP been exempt, but was assessed in the calculation of rent assistance.
A Social Security payment refers to the following:
- a social security pension
- a social security benefit;
- an allowance under the Social Security Act 1991;
- family allowance;
- family tax payment; and
- any other kind of payment under Chapter 2 of the Social Security Act 1991.
For DFISA purposes, the notional rate is what the person's daily rate of income support payment would be if the following applied:
- adjusted DP was exempt income; but
- adjusted DP was the only income used in the calculation of any rent assistance entitlement, ie notional rent assistance.
Note: This step is only for DFISA calculation purposes and does not change the person's existing social security assessment.
For DFISA purposes, the actual rate is the daily rate of the person's social security income support payment made under .
For DFISA-like purposes, the actual rate is the daily rate of the person's DAFF or ABSTUDY income support payment.
For DFISA purposes, the actual rate is the daily rate of the person's social security income support payment made under .
For DFISA-like purposes, the actual rate is the daily rate of the person's DAFF or ABSTUDY income support payment.
For DFISA purposes, the notional rate is what the person's daily rate of income support payment would be if the following applied:
- adjusted DP was exempt income; but
- adjusted DP was the only income used in the calculation of any rent assistance entitlement, ie notional rent assistance.
Note: This step is only for DFISA calculation purposes and does not change the person's existing social security assessment.
Social Security Act, 1991.