You are here
Notional rent assistance/notional rate of rent assistance
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.
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.
The taper rate is used to reduce the rate of a person's service pension or income support supplement if they or their partner have any ordinary income in excess of the ordinary/adjusted income free area (IFA). Any income in excess of the IFA will reduce the maximum payment rate by a 'taper rate' of 50 cents in the dollar (or 40 cents for transitional rate of pension). The result is the income reduced rate.
In addition to the income test taper, any assets in excess of the assets value limit will reduce the maximum payment rate per fortnight by 37.5 cents for every $250 over the Asset Value Limit. The result is the assets reduced rate
The income free area is the amount of income that an income support pensioner may receive without suffering any reduction in pension under the income test.
The disability income rent test is the method of calculating the amount by which a pensioner's rent assistance is reduced because of the disability income paid to them or their patner. The amount calculated is the RA reduction amount.
Note: The rent assistance free area and taper rate are identical to those that normally apply to the person's [glossary:income support payment:DEF/Income support payment] and family situation.
There is currently no content classified with this term.