External
Policy

Last amended 17 June 2009

Bereavement payment where survivor receives automatic grant of ISS

The information provided in this section outlines the bereavement guidelines and effective dates relating to automatic grants of income support supplement (i.e. where a veteran dies and the surviving partner is eligible for automatic grant of income support supplement and war widow's/widower's pension).    

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Automatic grant of ISS for certain persons exempt from requirement to lodge a claim

2.1.2/Service Pension and Income Support Supplement Claims

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Effective date for income support supplement grant

The date of effect for the grant of income support supplement depends on whether section 53K VEA or section 53L VEA applies to the survivor after the partner's death.

If the survivor's single rate of pension after the death of their partner is...

the applicable VEA provision is...

and the effective date for ISS grant is...

greater than the couple's combined pre-death rate of pension

section 53K VEA

day 2 of the bereavement period (same day as grant of war widow's/widower's pension).

less than the couple's combined pre-death rate of pension

section 53L VEA

the day after the end of the 98 day bereavement period.

Note: Section 53L of the VEA will apply to the great majority of cases.

Tax Status of Payments made after bereavement

Under the date of effect guidelines, if the survivor was receiving partner service pension (PSP) prior to the death of the veteran, the tax exempt bereavement payment and the taxable ongoing payment made to the survivor during the 98 day bereavement period are shown in the table below. These examples represent the daily rates applicable.

Payment Type

Section 53L VEA

Section 53K VEA

Bereavement payment

Veteran's partnered rate of pension
x 98 days

Veteran's partnered rate of pension
x 98 days

Taxable payment

Survivor's partnered rate of pension
x 98 days

(Survivor's re-assessed single rate of pension
minus veteran's partnered rate of pension)
x 1 day,

plus

(ISS minus veteran's partnered rate of pension)
x 97 days.

Payment of war widow/widower pension

    

VEA →

Certain dependants to be automatically paid pension

Section 13A(2) VEA

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In all cases where the income support supplement and war widow's/widower's pension (WWP) grant are automatic, WWP is granted from the day after the death of the veteran.    

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Dates of effect for new claims and increases in payments

Section 11.2.2

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Legislative references

The grant of war widow's/widower's pension is not effective until the day after death.    

The income support supplement (ISS) eligibility depends on being a war widow/widower, therefore ISS is not payable until the day after death.    

The bereavement period starts on the day of death.    

Survivor receives a non-automatic grant of ISS

The details about non-automatic ISS grant and date of effect are provided in another topic.