Treatment of Certain Lump Sum Compensation Payments
Additional lump sums for same compensable event
A pensioner is taken to have received one lump sum if:
In Care Assessment Rules
Illness separated couples entitled to single rate of pension
Where one or both members of a couple are 'in care', they may be determined to be an [glossary:illness separated couple:452]. Members of an illness separated couple are entitled to be paid the higher [glossary:single rate:510] of pension.
In order for the definition of illness separated couple to be met, the couple must be living apart due to the illness or infirmity of one or both members of the couple.
9.4 Children
This chapter contains information on dependent children and the effect they have on income support pensions, benefits and allowances.
See also
9.5.4 Deeming of Savings Investments
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VEA → (go back)
Veterans' Entitlements Act 1986 Division 3 - Deemed Income from Financial Assets commencing section 46D
9.1.1 Overview of Income and Assets Test Principles
The assessment process
A person's rate of [glossary:service pension:245] or [glossary:ISS:118] is based on a number of factors, including:
- the [glossary:income:31] and [glossary:assets:296] of the pensioner and, where applicable, the pensioner's [glossary:partner:370],
(Note: service pension assesses ordinary income, whilst ISS assesses adjusted income)
Definitions for Not a Member of a Couple Status
Last amended: 1 July 2009
Definition of not a member of a couple
For the purpose of the VEA, two people are regarded as [glossary:not a member of a couple:327] if:
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Policy Library – Not a Member of a Couple
The Deprivation Formula
Last amended: Application of the deprivation formula
The deprivation formula is used in certain circumstances to calculate what amount can be considered reasonable as an [glossary:entry contribution:426] to a [glossary:granny flat:52] or to assess the value of the right to accommodation for sale leaseback residences. The [glossary:Reasonableness Test:368] determines whether or not this formula is applicable.
The Income Test
Income for the income test
In applying the income test, a person's gross ordinary/adjusted income whether from within or outside Australia, less any permissible reductions in respect of business income, is taken into account. If the person is a member of a couple, half of the combined income of the couple is taken into account, regardless of which member of the couple actually receives the income.
9.6.5 Deprivation of Assets - Effect on Income
Effect of assets disposal on an income tested pensioner
Deprivation provisions apply to a pensioner who is assessed under the [glossary:income test:288] and [glossary:assets test:599]. The value of a disposed asset must be recorded, even if it has no effect on the pensioner's current entitlement. It may be necessary to obtain a valuation for the disposed asset from the Australian Valuation Office.
The value of several disposed assets may cause a pensioner's income support pension to be assets tested. The deemed income may cause an effect under the income test.