Free accommodation or board and lodging
The value of free accommodation or free board and lodging provided to a person is not income.
If an employer provides written advice that a deduction from wages for the cost of accommodation or board and lodging provided by the employer is being made, the amount deducted is not considered as income. Any amount received after that deduction is treated as income.
Compensation and insurance payments
VEA section 5H(8) (ea), (q) and (r)
If a pensioner receives compensation or an insurance payment for loss of, or damage to, their buildings, plant or personal effects, that payment is not treated as income for DVA purposes. The ongoing income assessment of this payment is described in the following table.
The portion of compensation or insurance payment for loss or damage to buildings, etc, that is... | Then under the income test... |
determined as a disregarded asset under paragraph 52(1) (o) of the VEA, e.g. because they intend to use part or all of the payment to rebuild/repair the old home, or acquire a new home. For more information see: |
Also, these exemptions may be extended for up to an additional 12 months, if the pensioner can show that they are experiencing delays beyond their control. |
determined not to be a disregarded asset under paragraph 52(1) (o) of the VEA, e.g. because they intend to spend the funds for another purpose. For more information see: | it may become immediately assessable, consistent with how the funds were spent or invested. For more information see 9.5.4 Deemed Income from Savings Investments.
|
Note: If a person receives compensation, the extent to which the compensation is applied to limit the person's disability pension, war widow's/widower's pension, or MRCA payment, is exempt income for service pension and ISS purposes. For more information see Chapter 9.10 Compensation Offsetting.
Borrowings and loans
If a pensioner borrows money or obtains loans via a bona fide arrangement where:
the money moves from the lender to the borrower, and
there is an intention to repay the borrowed money or loan,
then the amount of borrowings (loans) advanced to the pensioner is not treated as income for DVA purposes (e.g. credit card borrowings or personal loans from a financial institution).
Domestic payment
If a pensioner receives a payment from the sale of personal items not intended for profit on re-sale, such as the sale of their television, then the amount received is not treated as income for DVA purposes.
Mortgage insurance payments
If a pensioner receives payments from a mortgage insurance arrangement which requires the insurer to make payments to the creditor in the event of illness, unemployment or other special circumstances, then the payments are not treated as income for DVA purposes.
Private health insurance rebate
The Private Health Insurance Incentives Act 1998 provides for a 30% private health insurance rebate/benefit from 1 January 1999. This rebate/benefit is not income for DVA purposes, as it is merely refunding money already assessed as part of gross income.
Payments from approved exchange trading systems
Credits received from participation in approved exchange trading systems and other community exchange schemes are not treated as income for DVA purposes.
If both cash and credits in exchange traded systems schemes are received, the cash amount is assessed as income.
Domestic solar power generation
If a person installs solar panels and generates energy which is then fed back into the electricity grid, the manner of reimbursement dictates the way it is assessed.
Discounts on power bills due to energy being fed back into the electricity grid are not assessable. Likewise, credits on power bills due to energy being fed back into the electricity grid are not assessable. This is because such credits and discounts do not fit the VEA definition of income and therefore have no impact on the pension assessment.
However, if a pensioner receives payment in the form of cheques, cash or direct deposits into a bank account for energy fed back into the electricity grid, this is regarded as assessable income and must be included in the pension assessment. Feed-in tariffs for electricity generated by solar panels should be regarded as irregular earnings and assessed over a 12 month period. For more information see 10.1.1 Overview of Ordinary Income.
Many state and territory governments provide financial assistance to households to assist with the costs of purchasing and installing solar panels. This assistance is not assessable, as it essentially provides a discount on the price of purchase and installation of panels.
Exempt funeral bonds
If the funeral bond meets the requirements to be an exempt asset, it is also exempt from the income test. This means that interest paid on an exempt funeral bond is not income for DVA purposes and it is not subject to the deeming provisions. For more information see 10.2.3 Disregarded Assets Relating to Deceased Estates and Funeral Expenses.
Note: If a funeral bond is not an exempt asset, then it is subject to the deeming provisions (see 9.5.6 Deemed Income from Other Managed Investments).
Rental income from principal home for aged care residents
VEA section 5H(8) (nc) and (nd)
Rental income from a pensioner's principal home received while living in an aged care residence may be exempt from the income test in certain circumstances. For more information see 9.2.4 In Care Assessment Rules.
Payments received from family members
A periodical payment or benefit by gift or allowance to a pensioner is exempt income if paid by a close relative of the pensioner, such as a parent, child, brother or sister. The actual source of such payments should be checked. Payments are treated as income when paid by or through a third party, such as a company that is not acting as agent for the close relative.
German and Austrian restitution payments
German and Austrian restitution payments are not income for DVA purposes. For more information see 10.1.5 Restitution Payments - Germany and Austria.
Netherlands restitution payments may or may not be assessed as income for DVA purposes, depending on the type of restitution payment received. For more information see 10.1.5 Restitution Payments - Netherlands.
Education scholarships and prizes
VEA section 5H(8) (hc) and (hd)
Non-discretionary fee pay or fee waiver scholarships and prizes are exempt from the income test. For examples of exempt scholarships see 10.1.7 Income from Education Scholarships, Prizes and Allowances.
Personal care support scheme payments
Payment made by some organisations and agencies to a person with a disability is exempt if it is paid to:
meet the cost of a carer or attendant to provide personal care,
obtain support services and treatment.
A payment made towards the cost of personal care support services is exempt income for DVA purposes if made under an approved personal care support scheme (http://clik.dva.gov.au/glossary/approved-personal-care-support-schemes.)