﻿ DFISA Calculation Examples (ceased 2022) | Compensation and Support Policy Library, Part 5 Income Support Allowances and Benefits, 5.9 Defence Force Income Support Allowance (DFISA)(ceased 2022), 5.9.3 Calculation of DFISA (ceased 2022)

# DFISA Calculation Examples (ceased 2022)

Document
Last amended
25 February 2022

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  This is for historical reference only.

##### DFISA payment differed from expected rate

Some people, eligible for DFISA, may have received less DFISA payment than they thought they would receive. There were two reasons that a person may have received less DFISA than the expected rate or may have had the rate calculated as nil. These were where the person was:

• notionally assets tested, or
• receiving rent assistance.
##### Calculating the notional rate

In the process of calculating the rate of DFISA, a notional assessment was done. This involved:

• calculating the notional income tested rate,
• calculating the notional assets tested rate, and
• comparing the two rates.

The lower of the two rates was the notional rate.

##### Rate of DFISA if notional rate was assets tested

If the person's notional income support payment was the assets tested rate, their rate of DFISA may either have been less than expected or nil. DFISA was the difference between the person's notional rate and the actual rate. Where the notional rate was the assets tested rate, the amount of DFISA was less than the impact that adjusted DP was having on the person's income support payment via the income test. Where the notional assets tested rate was the same as the actual income tested rate, the amount of DFISA was nil.

##### Example of notionally assets tested rate

This example describes a notionally assets tested client whose rate of DFISA was less than the impact of adjusted DP on his actual rate. Rates quoted are as at 20/09/2004.

Mr Lucas was a single homeowner receiving age pension paid by DVA. He received 60% of general rate disability pension (\$177.84 per fortnight) and had \$122 per fortnight in other income. He had assets totalling \$160,000.

 Actual rate Actual income tested rate \$399.56 Actual assets tested rate \$449.70 Actual rate (paid) \$399.56 (income rate) Notional rate Notional income tested rate \$470.70 Notional assets tested rate \$449.70 Notional rate (for DFISA) \$449.70 (assets rate) Notional rate (assets tested) less Actual rate (income tested) \$449.70 - \$399.56 = \$50.14

While Mr Lucas' adjusted disability pension reduced his actual social security payment by \$71.14, the rate of DFISA payable was \$50.14 due to the impact of the assets test on the notional rate assessment.

##### Clients eligible for rent assistance

Where a person eligible for DFISA was also eligible for rent assistance (RA), their notional rate assessment involved a disability income test for RA. This test was similar to the test applied under the VEA to calculate rates of rent assistance for service pensioners prior to 2022.

More →

##### Notional disability income test for rent assistance

The notional disability income test for RA involved calculation of a reduction amount that was applied to the person's RA entitlement. The calculation used adjusted DP only and referred to the income free areas and taper rates applicable to the person's primary payment. As a result of this test, the notional rent assistance amount, included in the calculation of the notional rate for DFISA, may have been less than their actual rent assistance payment. Note: This impacted the notional calculation for DFISA only. There was no actual change to the person's income support payment or rent assistance payment.

##### Example of disability income rent test reducing DFISA to nil

This example described a client whose rate of DFISA was nil because of the disability income test for rent assistance. Rates as at 20/09/2004.

Mr Fee was a single age pensioner paid by Centrelink. He received 100% of the general rate disability pension (\$296.40 per fortnight) and has no other income. He received \$96.80 per fortnight in rent assistance from Centrelink.

 Actual rate Actual income tested rate \$400.94 Actual rent assistance \$  96.80 Actual rate (paid) \$497.74 Notional rate Notional income tested rate \$470.70 Notional rent assistance \$  27.04 Notional rate (for DFISA) \$497.74 Notional rate less Actual rate \$497.74 – \$497.74 = \$0.00

Mr Fee's adjusted disability pension reduced his actual payment by \$69.76. However, because of the notional disability income rent test used to calculate notional rent assistance, the amount of DFISA payable was nil.

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.

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.

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.

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.

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.

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.

Veterans' Entitlements Act 1986.

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.

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.

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.

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.

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.

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 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.