VEA ? [2]
This section explains the type of bereavement payment made in respect of a dependent child. The section also covers the payment arrangements that apply to such a bereavement payment and how to calculate the amount payable.
VEA ? [6]
Pensioners eligible for a Dependent Child Bereavement Payment are those who were receiving a service pension [7] or income support supplement [7] when the dependent child [7] died.
A service pension is an income support payment broadly equivalent to the social security age and disability support pensions. It may be paid once a veteran or partner has reached the nominated age or is incapacitated for work.
ISS is an income support payment that may be paid to eligible war widows and widowers under the VEA and persons receiving wholly dependent partners' compensation under the MRCA, and who satisfy the means tests. It is an indexed rate, increased twice-yearly in March and September in line with changes to the cost of living and/or average wages. Income Support Supplement (ISS) legislation commenced on 20 March 1995. It is a payment created to replace the ceiling rate income support age, carer, wife and disability support pensions, paid to war widows/widowers by Centrelink.
Section 5F(1) of the VEA defines dependent child as having the same meaning as in the Social Security Act 1991. For income support purposes, dependent child is defined as:
Child under 16 years
A child under 16 years cannot be considered a dependent child if:
Child 16 years or older
A young person who has turned 16 years but is under 22 years can still be a dependent child of the pensioner if:
A child over 16 years cannot be considered a dependent child if:
Income includes earning from casual, part-time or full-time earnings.
Note: the meaning of a dependent child for DVA income support pension purposes is not the same as the meaning for Family Tax Benefit purposes.
VEA → [14]
VEA → [15]
An eligible pensioner is entitled to receive 98 days of entitlement at the rate that would have been payable had the child not died.
VEA → [16]
The additional components of pension in respect of a dependent child [7] that make up the bereavement payment [7] include:
VEA → [18]
The child related components of pension representing the bereavement payment can be:
VEA → [19]
The pensioner's rate is reassessed at the end of the 98 day bereavement period.
Section 53S [20] VEA - Provision continuing payment during bereavement period
Section 53T [21] VEA - Provision identifying bereavement payment component and enabling lump sum payment
Section 5F(1) of the VEA defines dependent child as having the same meaning as in the Social Security Act 1991. For income support purposes, dependent child is defined as:
Child under 16 years
A child under 16 years cannot be considered a dependent child if:
Child 16 years or older
A young person who has turned 16 years but is under 22 years can still be a dependent child of the pensioner if:
A child over 16 years cannot be considered a dependent child if:
Income includes earning from casual, part-time or full-time earnings.
Note: the meaning of a dependent child for DVA income support pension purposes is not the same as the meaning for Family Tax Benefit purposes.
A bereavement payment is an amount payable in respect of a deceased pensioner that represents a continuation of the pensioner's entitlement for a period following the death (the bereavement period).
The payment can be made as:
Remote area allowance is a supplementary payment added to the rate of income support pension where the pensioner's usual place of residence is situated in a remote area, and where the pensioner is physically present in the remote area.
FTB child has the same definition as given in section 22 and 22A of the Family Assistance Act (i.e. A New Tax System (Family Assistance) Act 1999).
For more information, see also 9.4.3/Effect of Children on Remote Area Allowance (RAA) CS Policy Library [33].
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.
If all or part of the bereavement payment is to be paid as a lump-sum, the amount of that lump-sum can be calculated using the equation below:
Bereavement Payment = (98 - D) x (OE - NE)
The elements of this equation are explained in the table below.
Element |
Represents |
98 |
The maximum number of days in the bereavement period. |
D |
The number of days that have elapsed since the date of death. |
OE |
The old entitlement, which is the pensioner's daily entitlement of pension on the last day of the last pension period prior to the death of the child |
NE |
The new entitlement, which is the pensioner's daily entitlement of pension as reassessed following death of the child. |
If there would have been any change to the rate of child related components of pension because of indexation [7] or the age of the child, had the child not died, the change of rate should be included in the calculation of the rate payable during the bereavement period.
VEA ? [35]
Where the child related components of pension are incorporated into regular pension payments, the amount representing the bereavement payment is identified as a separate amount only for taxation purposes.
Indexation is the action of adjusting pension and allowance rates, limits and thresholds to maintain their value against increases in the cost of living and average earnings.
Links
[1] https://clik.dva.gov.au/user/login?destination=node/15932%23comment-form
[2] https://clik.dva.gov.au/book/export/html/15932#tgt-cspol_part8_ftn66
[3] https://clik.dva.gov.au/legislation-library
[4] https://clik.dva.gov.au/book/export/html/15932#ref-cspol_part8_ftn66
[5] https://clik.dva.gov.au/user/login?destination=node/15943%23comment-form
[6] https://clik.dva.gov.au/book/export/html/15932#tgt-cspol_part8_ftn67
[7] https://clik.dva.gov.au/%23
[8] https://clik.dva.gov.au/service-eligibility-assistant-updates/all-determinations-order-date-signed-oldest-most-recent/determinations-under-vea
[9] https://clik.dva.gov.au/book/export/html/15932#ref-cspol_part8_ftn67
[10] https://clik.dva.gov.au/book/export/html/15932#tgt-SSA_ftn1
[11] http://www.comlaw.gov.au/Series/C2004A04121
[12] https://clik.dva.gov.au/book/export/html/15932#ref-SSA_ftn1
[13] https://clik.dva.gov.au/user/login?destination=node/15950%23comment-form
[14] https://clik.dva.gov.au/book/export/html/15932#tgt-cspol_part8_ftn68
[15] https://clik.dva.gov.au/book/export/html/15932#tgt-cspol_part8_ftn69
[16] https://clik.dva.gov.au/book/export/html/15932#tgt-cspol_part8_ftn70
[17] https://clik.dva.gov.au/book/export/html/15932#tgt-cspol_part8_ftn71
[18] https://clik.dva.gov.au/book/export/html/15932#tgt-cspol_part8_ftn72
[19] https://clik.dva.gov.au/book/export/html/15932#tgt-cspol_part8_ftn73
[20] clik://LEGIS/VEA/section 53S
[21] clik://LEGIS/VEA/section 53T
[22] https://clik.dva.gov.au/book/export/html/15932#ref-cspol_part8_ftn68
[23] clik://LEGIS/VEA/section 53S(1)
[24] https://clik.dva.gov.au/book/export/html/15932#ref-cspol_part8_ftn69
[25] clik://LEGIS/VEA/section 53T(1)
[26] https://clik.dva.gov.au/book/export/html/15932#ref-cspol_part8_ftn70
[27] https://clik.dva.gov.au/compensation-and-support-policy-library/part-5-income-support-allowances-and-benefits/52-remote-area-allowance-raa
[28] https://clik.dva.gov.au/book/export/html/15932#ref-cspol_part8_ftn71
[29] clik://LEGIS/VEA/section 53T(2)
[30] https://clik.dva.gov.au/book/export/html/15932#ref-cspol_part8_ftn72
[31] clik://LEGIS/VEA/section 53S(2)
[32] https://clik.dva.gov.au/book/export/html/15932#ref-cspol_part8_ftn73
[33] http://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/94-children/943-effect-children-assessment-income-support-payments/effect-children-remote-area-allowance-raa
[34] https://clik.dva.gov.au/user/login?destination=node/15931%23comment-form
[35] https://clik.dva.gov.au/book/export/html/15932#tgt-cspol_part8_ftn74
[36] https://clik.dva.gov.au/book/export/html/15932#ref-cspol_part8_ftn74