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For DFISA purposes, the notional rate is what the person's daily rate of income support payment would be if the following applied:
- adjusted DP was exempt income; but
- adjusted DP was the only income used in the calculation of any rent assistance entitlement, ie notional rent assistance.
Note: This step is only for DFISA calculation purposes and does not change the person's existing social security assessment.
Defence Force Income Support Allowance (DFISA) is an income support payment to be made by DVA to people whose income support payment under Social Security Law is reduced, or not payable, because of the impact of adjusted disability pension. DFISA is 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.
Section 118NA of the VEA defines adjusted disability pension as:
- disability pension paid under Parts II or IV of the Veterans' Entitlements Act 1986 (VEA); and
- permanent impairment payments and special rate disability pension paid under the Military Rehabilitation and Compensation Act 2004.
Adjusted disability pension does not include war widow's/widower's pension, or payments made by other governments to compensate for war or service related injuries.
For DFISA purposes, if the person is entitled to rent assistance, the adjusted DPis used to calculate a rent assistance reduction amount in order to determine the notional rent assistance rate. Calculation of the rent assistance reduction amount uses the same taper rates and income free area as apply to the person's income support payment.
Note: This step is only for DFISA calculation purposes and does not affect the person's actual payment of rent assistance. The notional rent assistance calculation is similar to the disability income rent test used to calculate rent assistance for service pensioners.
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