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5.9.1 Overview of DFISA (ceased 2022)

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Last amended 
25 February 2022

DFISA was removed 1 January 2022.  This is for historical reference only.   

VEA ?

 

What was DFISA?

The Defence Force Income Support Allowance (DFISA) was an income support payment made by DVA under the Veterans' Entitlements Act 1986. DFISA was payable to a person whose social security income support payment was reduced or not payable because of adjusted disability pension.

What was DFISA-like payment?

The Defence Force Income Support Allowance–like (DFISA-like) payment was an income support payment made by DVA under regulations made under the Veterans' Entitlements Act 1986. The DFISA-like payment was payable to a person whose:    

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  • income support payment administered by the Department of Agriculture, Fisheries and Forestry (DAFF) except for Farm Household Allowance (see below), or
  • living allowance made under ABSTUDY guidelines administered by the Department of Education,

was reduced or not payable because of adjusted disability pension.

Since 2014, the Department of Agriculture's Farm Household Allowance (FHA) paid by Centrelink did not include Adjusted Disability Pension in the FHA income test and thus there was no DFISA-like payment.    

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Who did DFISA affect?

DFISA was paid to social security income support recipients whose rate of social security payment was impacted by the inclusion of adjusted DP in their assessment. Those payable included recipients of a social security payment, at nil rate or above, whether paid by Centrelink or DVA.    

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What determined the DFISA rate?

The DFISA rate was primarily determined by the amount of adjusted disability pension included in the assessment of the social security payment. However, other changes to the social security primary payment assessment rules, such as the income free area for social security benefits and pensions, may also have had a flow on effect on the calculated rate of DFISA.

Who did DFISA-like affect?

DFISA-like was paid to recipients of income support payments administered by DAFF and ABSTUDY living allowance whose rate of payment was impacted by the inclusion of adjusted DP in their assessment. DFISA-like payments were calculated and paid in the same manner as DFISA.

Throughout the rest of this chapter, except where specifically excluded, DFISA is taken to also refer to DFISA-like.

Calculating the DFISA rate

DFISA was calculated as a daily entitlement and paid in fortnightly instalments. The DFISA calculation varied if compensation recovery rules applied.    

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DFISA bonus

A person was entitled to the DFISA bonus if their social security pension bonus was reduced because of the inclusion of adjusted DP in the calculation of their age pension rate.    

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There was no DFISA bonus payable to recipients of DFISA-like payment.

Bereavement payments and DFISA

The bereavement payment provisions of both the Social Security Act 1991 (SSA) and the VEA took into account DFISA.    

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There were no changes to bereavement payment provisions in relation to recipients of DFISA-like payment.

Other DFISA impacts

DFISA entitlement may have impacted other payments, benefits and arrangements.    

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Defence Force Income Support Allowance and related payments

Part VIIAB VEA

 

VEA ? (go back)

 

Reference Library - Departmental Instruction - Department of Agriculture - Farm Household Allowance

DI/C09/2014

 

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Administration of DFISA

Section 5.9.2

 

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Calculation of DFISA

Section 5.9.3

 

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Bereavement Payments and DFISA

Section 5.9.5

 

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Other DFISA Impacts

Section 5.9.6

 

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The information below is for historical reference only.

Defence Force Income Support Allowance (DFISA) ceased on 1 January 2022 because adjusted disability income became exempt income under the Social Security Act 1991.  It was an income support payment paid by DVA to people whose income support payment under Social Security Law was reduced, or not payable, because of the impact of adjusted disability pension. DFISA was 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.

 

 

The Department of Veterans' Affairs.

On 1 January 2022, both DFISA and the Disability Income Rent Test were removed.   Thus the term Adjusted Disability Pension was made redundant.  The following is for historical reference only.

Section 118NA of the VEA defined adjusted disability pension as:

  • disability pension (known as disability compensation payment from 2022) 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 did not include war widow's/widower's pension, or payments made by other governments to compensate for war or service related injuries.

 

 

From 1 January 2022, DFISA-like payments ceased.  The information below is for historical reference only.

The Defence Force Income Support Allowance-like (DFISA-like) payment was an ISP under regulations made under the Veterans' Entitlements Act 1986. DFISA-like payment may have been payable to a person whose:

  • income support payment was administered by the Department of Agriculture, Fisheries and Forestry (DAFF), or
  • living allowance made under ABSTUDY

was reduced or not payable because of adjusted disability pension ADP.

 

 

Aboriginal study assistance scheme means:

  • the ABSTUDY scheme, or
  • the Aboriginal Overseas Study Assistance Scheme.

On 1 January 2022, both DFISA and the Disability Income Rent Test were removed.   Thus the term Adjusted Disability Pension was made redundant.  The following is for historical reference only.

Section 118NA of the VEA defined adjusted disability pension as:

  • disability pension (known as disability compensation payment from 2022) 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 did not include war widow's/widower's pension, or payments made by other governments to compensate for war or service related injuries.

 

 

A Social Security payment refers to the following:

 

 

 

On 1 January 2022, both DFISA and the Disability Income Rent Test were removed.   Thus the term Adjusted Disability Pension was made redundant.  The following is for historical reference only.

Section 118NA of the VEA defined adjusted disability pension as:

  • disability pension (known as disability compensation payment from 2022) 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 did not include war widow's/widower's pension, or payments made by other governments to compensate for war or service related injuries.

 

 

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.

From 1 January 2022, DFISA-like payments ceased.  The information below is for historical reference only.

The Defence Force Income Support Allowance-like (DFISA-like) payment was an ISP under regulations made under the Veterans' Entitlements Act 1986. DFISA-like payment may have been payable to a person whose:

  • income support payment was administered by the Department of Agriculture, Fisheries and Forestry (DAFF), or
  • living allowance made under ABSTUDY

was reduced or not payable because of adjusted disability pension ADP.

 

 

Department of Agriculture, Fisheries and Forestry

On 1 January 2022, both DFISA and the Disability Income Rent Test were removed.   Thus the term Adjusted Disability Pension was made redundant.  The following is for historical reference only.

Section 118NA of the VEA defined adjusted disability pension as:

  • disability pension (known as disability compensation payment from 2022) 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 did not include war widow's/widower's pension, or payments made by other governments to compensate for war or service related injuries.

 

 

The information below is for historical reference only.

DFISA bonus ceased 1 January 2022 because adjusted disability income became exempt income under the Social Security Act.  It was defined in section 5Q(1) of the VEA and was a VEA payment under the former Part VIIAB of the VEA.  A person was entitled to the DFISA bonus if their social security pension bonus was reduced because of the inclusion of adjusted DP in the calculation of their age pension rate. The DFISA bonus was the difference between:

  • the amount of pension bonus received under SSL , and
  • the amount of pension bonus that would have been received if adjusted DP had not been included in the assessment of age pension.

 

On 1 January 2022, both DFISA and the Disability Income Rent Test were removed.   Thus the term Adjusted Disability Pension was made redundant.  The following is for historical reference only.

Section 118NA of the VEA defined adjusted disability pension as:

  • disability pension (known as disability compensation payment from 2022) 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 did not include war widow's/widower's pension, or payments made by other governments to compensate for war or service related injuries.

 

 

A bereavement payment is an amount payable in respect of a deceased pensioner that represents a continuation of the pensioner's entitlement for a period following the death (the bereavement period).

The payment can be made as:

  • a lump sum in advance, or
  • a continuation of the deceased person's pension instalments, or
  • a combination of both, or
  • a portion of the rate of pension payable to the surviving member of a couple identified as a separate amount only for taxation purposes.

Veterans' Entitlements Act 1986.