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Lump Sum Advance of Pension

Legislative Authority

Veterans' Entitlements Act 1986
Section 79B (eligibility)
Sections 79C to 79G (applications)
Sections 79I to 79J (determination)
Section 79K (maximum amount of advance)


Stated Current Purpose/Intent

To provide pensioners with greater choice in how they meet unexpected needs for additional cash.


Current Eligibility Criteria

A person may be eligible for a lump sum advance of pension if he or she is receiving:

  • age service pension
  • invalidity service pension
  • partner service pension
  • income support supplement
  • war widow(er)'s pension
  • disability pension
  • social security age pension by DVA.

To be eligible for a lump sum advance, a person must:

  • be paid one of the above types of pension; and
  • have been receiving a pension from DVA or Department of Human Services continually during the three months before the application for an advance; and
  • be able to afford to repay the advance without suffering severe financial hardship; and
  • be an Australian resident living in Australia at the time of application.

A person is not eligible for a lump sum advance if the person:

  • has been paid an advance in the last 12 months that has not been fully repaid; or
  • is not eligible to receive an amount over the minimum lump sum amount; or
  • owes a debt to the Commonwealth because he or she has been overpaid pension by DVA or Department of Human Services.

As at September 2014, the maximum amount that can be advanced as a lump sum is $1,209.15 or 6% of the annual pension rate, whichever is the lesser amount.  The minimum amount that can be advanced is $303.85.

From July 2010, pensioners can apply for multiple advances in a given year as long as the total is at least half their fortnightly pension amount and does not exceed 1.5 times their fortnightly pension.


Date of Introduction

Lump sum advance of service pension was introduced on 4 July 1996.

Lump sum advance of pension was extended to disability pensioners from 1 January 1998.


Original Purpose/Intent

The purpose and intent of this benefit have not changed.


Significant Changes in Criteria or Purpose Since Introduction


Lump sum advance of pension was extended to disability pensioners.


Multiple advances allowed with maximum advance limited to 1.5 times the fortnightly rate of pension and the minimum advance set at 0.5 times the pension rate.