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5.9.6 Other DFISA Impacts
Last amended: 18 August 2014
Taxation matters and DFISA
Receipt of DFISA impacts the following taxation matters:
- the taxable status of the DFISA payment reflects the taxable status of the maximum basic rate of the person's income support payment More ?
- payment summaries will be sent at the end of each financial year to DFISA recipients who received a taxable DFISA payment More ?
- DVA is not authorised to collect the tax file number of a DFISA recipient. More ?
DFISA overpayments and recovery
DFISA is a payment made under Part VIIAB of the VEA. Any overpayments are recoverable under section 205 of the VEA.
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Pension loans scheme and DFISA
The maximum amount that a person who qualifies for the pension loans scheme can receive is reduced by any amount of DFISA the person receives. This ensures that a person receiving DFISA cannot receive a total income support payment of more than the maximum payment rate.
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Assessment of aged care fees and DFISA
Adjusted DP will continue to be held in the assessment of income tested daily care fees for people in residential aged care. This is because it continues to be included in a person's income support payment assessment.
Clients who receive nil rate social security income support payment but to whom section 23(1D) of the SSA applies are social security recipients. Therefore, anyone in this situation who is an aged care resident is eligible to pay the subsidised pensioner rate for basic daily care fees.
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Clients who receive ABSTUDY or DAFF income support payment at a nil rate are not entitled to the subsidised pensioner rate for basic daily care fees.
Impact on Family Tax Benefit A and Child Care Benefit
Receipt of DFISA may affect Family Tax Benefit (FTB) Part A and Child Care Benefit (CCB) entitlements. FTB Part A and Child Care Benefit are payable at the maximum rate to income support recipients.
Clients who receive:
- a nil rate social security income support payment and DFISA will be regarded as social security income support recipients and will therefore be entitled to maximum rate FTB Part A and CCB. More ?
- ABSTUDY or DAFF income support payment at a nil rate and DFISA are not automatically entitled to the maximum rate of FTB Part A and CCB.
Impact on Family Tax Benefit B
Some DFISA recipients may receive a slightly lower FTB Part B assessment because their DFISA will be included as income in the assessment of FTB Part B. However, the DFISA rate will always outweigh any decrease in the FTB Part B rate, so overall income for the family will increase.
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Department of Agriculture's Farm Household Allowance
Payments prior to 2014 from DAFF did attract DFISA-like payments. However the introduction of the Department of Agriculture's Farm Household Allowance (FHA) in 2014 excluded Adjusted Disability Pension in the FHA income test. As a result, no DFISA-like payments are made.
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Other Taxable Payments
Allowances and other income support payments that are non-taxable
Payment Summaries
Exclusion/Exemption from Supplying Tax File Number
Reference Library - Overpayment Management Manual
Guide to Social Security Law: Pension Loans Scheme and DFISA
http://www.fahcsia.gov.au/guides_acts/ssg/ssguide-4/ssguide-4.3/ssguide-4.3.5/ssguide-4.3.5.71.html
http://www.fahcsia.gov.au/guides_acts/ssg/ssguide-3/ssguide-3.4/ssguide-3.4.5/ssguide-3.4.5.40.html
DFISA and Nil Rate Social Security Recipients
DFISA and Nil Rate Social Security Recipients
FaCS website: Family Assistance Guide – Description of Payments
http://www.fahcsia.gov.au/guides_acts/fag/faguide-1/faguide-1.2.html
FaCS website: Family Assistance Guide – Description of Payments
http://www.fahcsia.gov.au/guides_acts/fag/faguide-1/faguide-1.2.html
Reference Library - Departmental Instruction - Department of Agriculture - Farm Household Allowance
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 TFN is a number issued by the Australian Taxation Office to individuals, partnerships, trusts or companies. Each taxpayer has unique TFN which must be declared when you:
- loge a tax return,
- apply for certain income assistance or support payments,
- make or receive payments under Prescribed or Reportable Payment System,
- start or change jobs,
- have savings accounts or investments that earn income, or
- study at a tertiary institution under the HECS Scheme.
Section 118NA of the VEA defines adjusted disability pension as:
- disability pension paid under Parts II or IV of the Veterans' Entitlements Act 1986 (VEA); and
- permanent impairment payments and special rate disability pension paid under the Military Rehabilitation and Compensation Act 2004.
Adjusted disability pension does not include war widow's/widower's pension, or payments made by other governments to compensate for war or service related injuries.
Social Security Act, 1991.
Aboriginal study assistance scheme means:
- the ABSTUDY scheme, or
- the Aboriginal Overseas Study Assistance Scheme.
Department of Agriculture, Fisheries and Forestry
Aboriginal study assistance scheme means:
- the ABSTUDY scheme, or
- the Aboriginal Overseas Study Assistance Scheme.
Department of Agriculture, Fisheries and Forestry
The Defence Force Income Support Allowance-like (DFISA-like) payment is an ISP under regulations made under the Veterans' Entitlements Act 1986. DFISA-like payment may be payable to a person whose:
- income support payment administered by the Department of Agriculture, Fisheries and Forestry (DAFF), or
- living allowance made under ABSTUDY
is reduced or not payable because of adjusted disability pension ADP.
Section 118NA of the VEA defines adjusted disability pension as:
- disability pension paid under Parts II or IV of the Veterans' Entitlements Act 1986 (VEA); and
- permanent impairment payments and special rate disability pension paid under the Military Rehabilitation and Compensation Act 2004.
Adjusted disability pension does not include war widow's/widower's pension, or payments made by other governments to compensate for war or service related injuries.