Last amended: 20 September 2009
VEA ? [2]
The ordinary/adjusted income free area [3] used in calculating a person's service pension [3] or income support supplement [3] is increased for:
Generally, payments received for or in respect of a dependent child reduce the additional free area. Examples of these kind of payments are:
When a payment is received in respect of the dependent child, the additional free area for a dependent child of a pensioner may be reduced as shown in the following table.
If a payment is received in respect of the dependent child and the pensioner is... |
Then the additional free area for a dependent child is reduced by... |
|
the annual amount of the payment |
partnered and the partner is receiving a service pension, income support supplement, or a social security pension |
one half of the annual amount of the payment |
The additional free area is not reduced by the following payments in respect of a dependent child:
Pensioners and ISS recipients who were in receipt of pension on or before 19 September 2009 are eligible to be assessed under transitional rules, if:
The requirement that the pensioner has never been assessed under the new rules, does not arise where the pensioner's entitlement is re-determined from a date prior to 20 September 2009. Where new pension information is received and is effective prior to this date, the pensioner's right to receive the transitional rate is considered anew.
Once a pensioner or ISS recipient has been assessed under the new rules they cannot revert to transitional rules. There is one exception to this, to cover respite care changes to pensioners who return to live as a couple again.
Recipients assessed under transitional rules:
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 [6]VEA [6].
Note: War widow's pension [3] 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 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.
A person is a prescribed student child if:
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.
The term social security pension is defined in Section 5Q(1) VEA [10] to mean:
As benefits (pensions) may change, for the most current definition access this link to the Social Security Act 1991
http://www.comlaw.gov.au/comlaw/management.nsf/lookupindexpagesbyid/IP200401781?OpenDocument
The term social security benefit is defined in Section 5Q(1) of the VEA [10] to mean:
As benefits (pensions) may change, for the most current definition access this link to the Social Security Act 1991
http://www.comlaw.gov.au/comlaw/management.nsf/lookupindexpagesbyid/IP200401781?OpenDocument
According to subsection 5K(1) of the VEA [6], maintenance income in relation to a person, means:
but does not include disability expenses maintenance.
Aboriginal study assistance scheme means:
The Assistance for Isolated Scheme is administered by Centrelink. The aim of the scheme is to help the families of students who are unable to attend an appropriate school daily because of geographic isolation.
Links
[1] https://clik.dva.gov.au/user/login?destination=node/16052%23comment-form
[2] https://clik.dva.gov.au/book/export/html/16052#tgt-cspol_part9_ftn410
[3] https://clik.dva.gov.au/%23
[4] https://clik.dva.gov.au/legislation-library
[5] https://clik.dva.gov.au/book/export/html/16052#ref-cspol_part9_ftn410
[6] http://www.comlaw.gov.au/Series/C2004A03268
[7] https://clik.dva.gov.au/book/export/html/16052#tgt-SSA_ftn1
[8] http://www.comlaw.gov.au/Series/C2004A04121
[9] https://clik.dva.gov.au/book/export/html/16052#ref-SSA_ftn1
[10] http://clik.dva.gov.au/legislation-library