DFISA was removed 1 January 2022. This is for historical reference only.
Taxation matters and DFISA
Receipt of DFISA impacted the following taxation matters:
- the taxable status of the DFISA payment reflected the taxable status of the maximum basic rate of the person's income support payment More →More → (go back)
Other Taxable Payments
Allowances and other income support payments that are non-taxable
11.6.3/Non-taxable Income Support Payments
- payment summaries were sent at the end of each financial year to DFISA recipients who received a taxable DFISA payment
- DVA was not authorised to collect the tax file number of a DFISA recipient.
DFISA overpayments and recovery
DFISA was a payment made under the revoked Part VIIAB of the VEA. Any overpayments were recoverable under section 205 of the VEA.
Pension loans scheme and DFISA
The maximum amount that a person who qualified for the pension loans scheme could receive was reduced by any amount of DFISA the person received. This ensured that a person receiving DFISA could not receive a total income support payment of more than the maximum payment rate.
Guide to Social Security Law: Pension Loans Scheme and DFISA
http://www.fahcsia.gov.au/guides_acts/ssg/ssguide-4/ssguide-4.3/ssguide-4.3.5/ssguide-4.3.5.71.html
http://www.fahcsia.gov.au/guides_acts/ssg/ssguide-3/ssguide-3.4/ssguide-3.4.5/ssguide-3.4.5.40.html
Assessment of aged care fees and DFISA
Adjusted DP was held in the assessment of income tested daily care fees for people in residential aged care. This was because it was included in a person's income support payment assessment.
Clients who received nil rate social security income support payment but to whom the revoked section 23(1D) of the SSA applied were social security recipients. Therefore, anyone in this situation who was an aged care resident was eligible to pay the subsidised pensioner rate for basic daily care fees.
Clients who received ABSTUDY or DAFF income support payment at a nil rate were not entitled to the subsidised pensioner rate for basic daily care fees.
Impact on Family Tax Benefit A and Child Care Benefit
Receipt of DFISA may have affected Family Tax Benefit (FTB) Part A and Child Care Benefit (CCB) entitlements. FTB Part A and Child Care Benefit were payable at the maximum rate to income support recipients.
Clients who received:
- a nil rate social security income support payment and DFISA were regarded as social security income support recipients and therefore entitled to maximum rate FTB Part A and CCB. More →More → (go back)
FaCS website: Family Assistance Guide – Description of Payments
http://www.fahcsia.gov.au/guides_acts/fag/faguide-1/faguide-1.2.html
- ABSTUDY or DAFF income support payment at a nil rate and DFISA were not automatically entitled to the maximum rate of FTB Part A and CCB.
Impact on Family Tax Benefit B
Some DFISA recipients may have received a slightly lower FTB Part B assessment because their DFISA was included as income in the assessment of FTB Part B. However, the DFISA rate would always have outweighed any decrease in the FTB Part B rate, so overall income for the family increased.
FaCS website: Family Assistance Guide – Description of Payments
http://www.fahcsia.gov.au/guides_acts/fag/faguide-1/faguide-1.2.html
Department of Agriculture's Farm Household Allowance
Payments prior to 2014 from DAFF did attract DFISA-like payments. However the introduction of the Department of Agriculture's Farm Household Allowance (FHA) in 2014 excluded Adjusted Disability Pension in the FHA income test. As a result, no DFISA-like payments were made since then.
Reference Library - Departmental Instruction - Department of Agriculture - Farm Household Allowance