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Non-indexed Payments and Rates

Document
Last amended 
28 February 2022
Items that are non-indexed

A number of VEA payments, limits and rates that are not subject to indexation. These include:

Items that are derived from indexed amounts

There a number of payments, limits and thresholds that are not indexed themselves but are derived from other amounts that are indexed. These include:

  • income at which service pension ceases,
  • assets at which service pension ceases,
  • income at which eligibility for treatment ceases,
  • assets at which eligibility for treatment ceases,
  • adjusted income before income support supplement (ISS) reduces,
  • adjusted income at which ISS ceases,
  • assets at which ISS reduces,
  • assets at which ISS ceases,
  • maximum pension bonus,
  • minimum rent to be paid maximum rent assistance.


 

 

Indexation is the action of adjusting pension and allowance rates, limits and thresholds to maintain their value against increases in the cost of living and average earnings.

A form of pension that prior to 6 June 1985 was granted to the dependants of a veteran whose death was service related where those dependants were without “adequate means of support”.  Dependants who could be paid the pension included the wife, husband, widow(er), child, parent or other members of the veteran's family. AMS pensions could also be granted to the invalid child of an incapacitated veteran.

From 6 June 1985, there have been no new grants of AMS pensions, however, a small number of AMS pensions are still in 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The information below is for historical reference only.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.

 

 

Remote area allowance is a supplementary payment added to the rate of income support pension where the pensioner's usual place of residence is situated in a remote area, and where the pensioner is physically present in the remote area.

Education Entry Payment (EdEP) is a payment to assist eligible pensioners with the costs of enrolling in a course of study in order to develop their skills, obtain a qualification and improve their employment prospects. It is paid once a year in accordance with section 118AAC of VEA.

 

 

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