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Rent assistance free area/RA free area
The rent assistance free area is the amount of disability income an income support pensioner may receive without suffering any reduction in rent assistance under the disability income rent test. The rent assistance free area applicable to a person is identical to the income free area the person receives as an income support pensioner and is determined by their family situation.
For [glossary:service pension:DEF/Service pension/er/SP] recipients, disability income when calculating the rent assistance reduction amount (as set out in the table in [glossary:SCH6-C13 of the VEA) refers to:
- disability pension (as defined by section 5Q(1) of the VEA) including disability pension paid by foreign governments; and
- weekly permanent impairment compensation payments made under section 68, 71 or 75 of the Military Rehabilitation and Compensation Act 2004; and
- weekly amounts a person would have been paid if the person had not instead received permanent impairment compensation under section 68, 71 or 75 of the Military Rehabilitation and Compensation Act 2004 as a lump sum.
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.
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.
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