Departmental Instruction


Income Test Exemption for Restitution Payments made to Victims of National Socialist Persecution


This departmental instruction provides information about the Budget 2003‑04 initiative to exempt from the income test restitution payments made to Holocaust victims of National Socialist (Nazi) persecution.

Commencement Date

13 May 2003

Fact Sheet

The policy changes are reflected in the CLIK Policy Library Part 10, Chapter 1, Section 5 and the Fact Sheet IS87 'Income and Assets Tests.'


For further information in relation to these changes please contact Jacqui Mitchell on (02) 6289 6372 or Georgina Dudzinski on (02) 6289 4895.

Authorised by

Roger Winzenberg

Branch Head


4 June 2003


In 1987 and 1989, Holocaust restitution payments became exempt if paid by the German or Austrian governments, respectively.


Since that time, the number of countries paying Holocaust payments has grown and now includes France and The Netherlands.  The measure to exempt all payments, regardless of the country of origin, will restore the broad policy intent behind the current income test exemption.

Legislative changes

Subsection 5H(8) of the Veterans' Entitlements Act 1986 and subsection 8(8) of the Social Security Act 1991 will be amended so that all restitution payments paid in respect of victims of National Socialist persecution are excluded from the income test assessment of pensions, benefits and allowances.

Systems Changes

There will be no systems changes.

Procedural Changes

Continue as per the German and Austrian payments, that is, record payments as income with a zero value under Other Direct Income.

Population affected

Centrelink estimate that less than 70 of their customers will be affected.

Due to the lack of data integrity it is not possible to identify the number of cases of DVA income support recipients that may receive compensation paid in respect of National Socialist persecution.  However, based on the Centrelink estimates, it is anticipated that the number of DVA cases arising will be very low.

Interim arrangements

Pending passage and Royal Assent of the legislative amendments, interim arrangements will be made should the need arise.  Details of any cases that come to light should be forwarded by email to National Office on 'NAT Policy Advisings Income Support'.  Approval to introduce the necessary interim arrangements will be obtained by National Office and advice on how to proceed with the case will be sent back to the requesting State Office.


As at 13 May 2003, DVA and Centrelink will disregard all restitution payments made to victims of Nationalist Socialist (Nazi) persecution when assessing the rate of income support payable, regardless of the country making the restitution payment.

Pending Royal Assent of the legislative amendments, interim arrangements will be put in place should the need arise.