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Ordinary/Adjusted income free area

The ordinary/adjusted income free area provides that the pensioner may receive income up to a certain amount without any reduction in their maximum rate of pension.

Any income in excess of the free area will reduce the pension at the rate of 50 cents on the dollar, or 40 cents for those receiving a transitional rate of pension. The amount of ordinary and adjusted income free areas is specified in item 1 in Table E-1 in point SCH6-E6 VEA.


Note:  War widow's pension is included as income under the adjusted income test. Neither Disability Compensation Payment nor war widow(er)'s pension are included as income under the ordinary income test.



A form of pension that is paid to the partner of a veteran where the veteran has died as a result of war service or eligible Defence ServiceWar widow's/widower's pension is also paid to the partner of a veteran whose death was not war caused if the veteran was a ex-prisoner of war or if the veteran was receiving Extreme Disablement Adjustment (EDA) Rate, Special Rate (T&PI) or a rate increased in respect of certain war-caused injury or disease.


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