External
Departmental Instruction

DATE OF ISSUE: 4 February 1991

1991 INCOME LIMITS FOR : T CHILDREN

For the purposes of determining eligibility for Additional Pension for Children (APC) or Guardian's Allowance (GA) under ss.47(3) of the Veterans' Entitlements Act (VEA), a child may be regarded as wholly or substantially dependent on a veteran or carer where the child's income within the 1991 calender year does not generally exceed:

.$3900living at home

.$5900living away from home

2.This represents an increase in last year's limits of $250 for living at home and $400 for living away from home.

3.The above increased limits also apply for determining eligibility for the income deduction for each dependent child under ss.37(1) of the VEA.

4.The income deduction amounts of $624 and $312 remain unchanged.  These amounts are not indexed, unlike APC rates, and any increases that may be proposed in the future would need to be considered in the Budget context.

5.The increased income limits do not apply to an employed child ie.  a child who is less than 16 years and is not undertaking full time education.  Their income from wages is limited to $107.70 per week before the service pensioner or carer loses eligibility for APC, GA or the income deduction.

PETER HAWKER

NATIONAL PROGRAM DIRECTOR BENEFITS

January 1991