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Partner Receiving Pension or Benefit from Centrelink
General rule
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If one member of a couple is paid income support by DVA and the other by Centrelink, the department that is paying pension to the surviving member of the couple is responsible for calculation and payment of the bereavement payment.
Exception
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An exception to the general rule applies where a veteran who is paid disability compensation payment and service pension dies, and he or she is survived by a partner who is paid a social security pension or social security benefit. In this situation, the bereavement payment made in respect of service pension or benefit is managed by Centrelink and the Disability Compensation Bereavement Payment is managed by DVA.
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Impact of DFISA on bereavement payments
DFISA was removed 1 January 2022. This is for historical reference only.
VEA →
If DFISA was payable to the deceased just prior to death, any bereavement payment payable in respect of that person was increased to take account of the DFISA amount that person was receiving.
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Social security payments payable at nil rate
Prior to 2022, some people were in receipt of a nil rate of social security payment but were receiving DFISA because their adjusted disability pension was considered income under the SSA for income test purposes. A person in this situation was entitled to the usual provisions, obligations and benefits applicable to a recipient of the relevant social security payment, including any bereavement payment provisions (see revoked provisions of subsection 23(1D) in the SSA 1991).
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Section 53J VEA - Authority to pay bereavement payment in respect of social security recipient
Section 98A VEA - Authority to pay disability pension bereavement payment
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.
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.
Disability compensation payment (known before 2022 as disability pension), for the purposes of service pension, income support supplement and veteran payment, means:
- a pension paid by way of compenstion for incapacity from war caused conditions, or peacetime, peacekeeping or hazardous service caused conditions (other than a war widow's or orphan's pension); or
- temporary incapacity allowance; or
- any other payment in respect of incapacity or death resulting from war or war-like operations in which the Crown has been engaged (usually paid by another Commonwealth country).
Please note that the Disability Compensation Payment is legally a pension by way of compensation under the VEA so that concessional benefits under state, territory and local government legislation to pensioners/pensions under the VEA are not denied.
A service pension is an income support payment broadly equivalent to the social security age and disability support pensions. It may be paid once a veteran or partner has reached the nominated age or is incapacitated for work.
The term social security pension is defined in Section 5Q(1) VEA to mean:
- age pension;
- disability support pension;
- carer payment;
- pension PP (single);
- sole parent pension;
- special needs pension.
As benefits (pensions) may change, for the most current definition access this link to the Social Security Act 1991
http://www.comlaw.gov.au/comlaw/management.nsf/lookupindexpagesbyid/IP200401781?OpenDocument
The term social security benefit is defined in Section 5Q(1) of the VEA to mean:
- youth allowance;
- austudy payment;
- jobseeker payment;
- special benefit;
- benefit PP (partnered);
- parenting allowance.
As benefits (pensions) may change, for the most current definition access this link to the Social Security Act 1991
http://www.comlaw.gov.au/comlaw/management.nsf/lookupindexpagesbyid/IP200401781?OpenDocument
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.