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DFISA Calculation (ceased 2022)

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Last amended 
25 February 2022

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  This is for historical reference only.  

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The DFISA rate

DFISA was the difference between a person's rate of income support payment and what the payment would be if adjusted DP were exempt from the assessment, but included in the calculation of rent assistance.    

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Changes in the primary payment assessment rules which determined the extent to which adjusted disability pension may have reduced the person's rate of income support payment, such as the income free area for social security benefits and pensions, may have had a flow on effect on the calculated rate of DFISA.

Who calculates the DFISA rate?

A person's rate of DFISA was calculated by the agency that assessed their income support payment.    

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No change in income support payment

The DFISA calculation did not change the person's existing income support payment assessment. The notional rate assessment was only used for comparison with the person's actual rate to determine whether DFISA was payable. No one received an increase in income support payment, or a reduction in rent assistance, as a result of DFISA.

The DFISA formula

The rate of DFISA was calculated as a daily entitlement, paid in fortnightly instalments. DFISA was the difference between the person's notional rate of income support payment and their actual rate of income support payment payment.

DFISA = notional rate minus actual rate

 

Note: If the compensation recovery rules applied to the person, the DFISA formula required additional steps.     

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The actual rate

The actual rate was the rate of payment as assessed under existing social security, ABSTUDY or DAFF rules. It was the amount payable to the person, including supplementary payments and rent assistance, but excluding remote area allowance (RAA) and any deductions such as deductions for lump sum advance. For some people this rate was nil.    

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The notional rate

A person's notional rate was calculated by excluding the adjusted DP of the person and/or the person's partner from the assessment of their rate of income support payment. This may have led to a notional increase in the person's rate of income support payment. If the person rented, a notional rate of rent assistance may have been included in the calculation of their notional rate.     

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If deductions or additions apply

The actual and notional rates were those calculated before deductions (such as lump sum advance repayments) or additions (such as remote area allowance) were made.

Notional rent assistance

If the person being assessed for DFISA was entitled to rent assistance under social security law or under the ABSTUDY guidelines, the adjusted DP was used to calculate a rent assistance reduction amount in order to determine the notional rent assistance rate. The rent assistance reduction amount was subtracted from the person's rent assistance rate to give the notional rent assistance rate. Calculation of the rent assistance reduction amount used the same taper rates and income free areas as applied to the person's income support payment. Note: this step was notional only. There was no change to the person's actual payment of rent assistance.     

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Taper rates and free areas

When calculating notional rent assistance reference was made to taper rates and income free areas. These were the same taper rate and income free areas that applied to the person's primary payment. Taper rates vary from payment to payment. Age, service and disability support pensions all have the same taper rate and free areas. However, other primary payments differ, for example, jobseeker allowance has a lower free area and higher taper rates with two thresholds.

DFISA rate differed from the rate expected

Some people did not receive any amount of DFISA, even though they were eligible for DFISA. Others may have received less than they thought they would receive as a result of the impact of adjusted DP on their income support payment.    

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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.

 

 

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 and the Disability Income Rent Test were removed.  The information below is for historical purposes only.

For DFISA purposes, the notional rate was what the person's daily rate of income support payment would be if the following applied:

Note: This step was only for DFISA calculation purposes and did not change the person's existing social security assessment.

 

 

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

For DFISA purposes, the actual rate was the daily rate of the person's social security income support payment.

For DFISA-like purposes, the actual rate was the daily rate of the person's DAFF or ABSTUDY income support payment.

 

 

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.

 

 

From 1 January 2022, DFISA and the Disability Income Rent Test were removed.  The information below is for historical purposes only.

For DFISA purposes, the notional rate was what the person's daily rate of income support payment would be if the following applied:

Note: This step was only for DFISA calculation purposes and did not change the person's existing social security assessment.

 

 

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

For DFISA purposes, the actual rate was the daily rate of the person's social security income support payment.

For DFISA-like purposes, the actual rate was the daily rate of the person's DAFF or ABSTUDY income support payment.

 

 

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

For DFISA purposes, the actual rate was the daily rate of the person's social security income support payment.

For DFISA-like purposes, the actual rate was the daily rate of the person's DAFF or ABSTUDY income support payment.

 

 

Aboriginal study assistance scheme means:

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

Department of Agriculture, Fisheries and Forestry

From 1 January 2022, DFISA and the Disability Income Rent Test were removed.  The information below is for historical purposes only.

For DFISA purposes, the notional rate was what the person's daily rate of income support payment would be if the following applied:

Note: This step was only for DFISA calculation purposes and did not change the person's existing social security assessment.

 

 

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

From 1 January 2022, DFISA and the Disability Income Rent Test were removed.  The information below is for historical purposes only.

For DFISA purposes, if the person was entitled to rent assistance, the adjusted DP was used to calculate a rent assistance reduction amount in order to determine the notional rent assistance rate. Calculation of the rent assistance reduction amount used the same taper rates and income free area as applied to the person's income support payment.

Note: This step was only for DFISA calculation purposes and did not affect the person's actual payment of rent assistance. The notional rent assistance calculation was similar to the former disability income rent test used to calculate rent assistance for service pensioners, income support supplement and veteran payment recipients.

 

 

The social security law includes:

  • the Social Security (Administration) Act 1999; and
  • the Social Security Act 1991;and
  • the Social Security (International Agreements) Act 1999.

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.

 

 

From 1 January 2022, DFISA and the Disability Income Rent Test were removed.  The information below is for historical purposes only.

For DFISA purposes, if the person was entitled to rent assistance, the adjusted DP was used to calculate a rent assistance reduction amount in order to determine the notional rent assistance rate. Calculation of the rent assistance reduction amount used the same taper rates and income free area as applied to the person's income support payment.

Note: This step was only for DFISA calculation purposes and did not affect the person's actual payment of rent assistance. The notional rent assistance calculation was similar to the former disability income rent test used to calculate rent assistance for service pensioners, income support supplement and veteran payment recipients.

 

 

The taper rate is used to reduce the rate of a person's service pension or income support supplement if they or their partner have any ordinary income in excess of the ordinary/adjusted income free area (IFA). Any income in excess of the IFA will reduce the maximum payment rate by a 'taper rate' of 50 cents in the dollar (or 40 cents for transitional rate of pension). The result is the income reduced rate.

The same taper rate is also used in disability income rent test calculations to determine the amount of rent assistance for service pensioners and income support supplement recipients.

In addition to the income test taper, any assets in excess of the assets value limit will reduce the maximum payment rate per fortnight by 37.5 cents for every $250 over the Asset Value Limit. The result is the assets reduced rate

 

The income free area is the amount of income that an income support pensioner may receive without suffering any reduction in pension under the income test.

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.