A person may be regarded as permanently blind in both eyes where:

• there is a total loss of sight; or
• visual acuity after correction with suitable lenses is less than 6/60 in both eyes on the Snellen Scale; or
• where, in the written opinion of an ophthalmologist, the visual field deficits and/or combination of deficits results in a visual impairment which is the equivalent of a corrected visual acuity measure of less than 6/60 in both eyes.

The Commission Guideline CM5829: Determining 'permanently blind', 'no useful sight' and 'blinded in both eyes' [58]may be instructive in making a blinded/blindness determination.

War widow/widower — pensioner means a person who is receiving a war widow's/widower's pension [7] from the Australian Government.

The energy supplement is a fortnightly or quarterly payment designed to help recipients meet the cost of electricity and gas bills.

The ordinary income of a person for a period means, as described in section 46 of VEA [59], the gross ordinary income from all sources for that period without any reduction, other than a reduction of business income.

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.

Rules introduced as part of the Secure and Sustainable Pension Reforms that came into effect on 20 September 2009. For income and assets test purposes the changes include:

• an increase to the income test taper rate from 40 cents to 50 cents on the dollar,
• the abolition of the additional child income free area,
• the introduction of a fortnightly pension supplement to replace telephone allowance, utilities allowance, pharmaceutical allowance and the GST supplement, and
• the introduction of a work bonus, whereby only 50% of the first $500 per fortnight of employment earnings is assessable for eligible pensioners.

From 1 January 1998 responsibility for administration of most income support child related payments was transferred to  Centrelink [7]. However, saving provisions allow any person in receipt of service pension [7] or income support supplement [7] on 31 December 1997 who would be or is financially disadvantaged by the transfer to continue having their child related payments paid by DVA [7]. Saved children are assessed under the rules contained in the VEA as at 31 December 1997.

Dependent child add-on is an amount which is included in a person's service pension or ISS [7] where that person has saved children [7].

Guardian allowance is included in the calculation of a person's service pension or ISS [7] where that person has a saved child and where that person is either not a member of a couple [7] or is a illness separated couple [7] or respite care couple. [7]

Rent Assistance is an allowance which may be paid to a service pensioner, income support supplement (ISS) or veteran payment recipient to assist in meeting the cost of rental accommodation.

To receive rent assistance a pensioner must be paying rent (other than Government rent) for accommodation in Australia, and the amount paid must exceed a certain threshold.

Disability compensation payment (known before 2022 as disability pension), for the purposes of service pension, income support supplement and veteran payment, means:

• a pension paid by way of compenstion for incapacity from war caused conditions, or peacetime, peacekeeping or hazardous service caused conditions (other than a war widow's or orphan's pension); or
• temporary incapacity allowance; or
• any other payment in respect of incapacity or death resulting from war or war-like operations in which the Crown has been engaged (usually paid by another Commonwealth country).

Please note that the Disability Compensation Payment is legally a pension by way of compensation under the VEA so that concessional benefits under state, territory and local government legislation to pensioners/pensions under the VEA are not denied.

From 1 January 1998 responsibility for administration of most income support child related payments was transferred to  Centrelink [7]. However, saving provisions allow any person in receipt of service pension [7] or income support supplement [7] on 31 December 1997 who would be or is financially disadvantaged by the transfer to continue having their child related payments paid by DVA [7]. Saved children are assessed under the rules contained in the VEA as at 31 December 1997.

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.

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.

War widow/widower — pensioner means a person who is receiving a war widow's/widower's pension [7] from the Australian Government.

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.

For the purposes of Part VI of the VEA [69], a reference to a veteran is taken to be a reference to:

• a veteran as defined in subsection 5C(1) of the VEA [69];
• a member of the Forces as defined in subsection 68(1) of the VEA [69]; or
• a member of a Peacekeeping Force as defined in subsection 68(1) of the VEA [69].

For the purposes of Part VII of the VEA [69], according to subsection 5C(1), veteran means a person (including a deceased person):

• who is taken to have rendered eligible war service [7], or
• in respect of whom a pension is, or pensions are, payable under subsection 13(6) and
• in Part III and Part VIIC of the VEA [69] includes a person who is:

• a Commonwealth veteran [7], or
• an allied veteran, or
• an allied mariner.

Qualifying service is one of the criteria used to determine eligibility for certain benefits under the Veterans' Entitlements Act 1986. Refer to section 7A of the VEA [69] for the full defintion.

According to section 5H of the VEA [70] income is:

• an amount earned, derived or received by a person for the person's own use or benefit;
• a periodical payment by way of gift or allowance; or
• a periodical benefit by way of gift or allowance.

One element of the means test for income support pensions whereby the rate of pension payable to a pensioner reduces progressively as their assets increase above a certain threshold known as the assets value limit (AVL). [71]

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.

War widow/widower — pensioner means a person who is receiving a war widow's/widower's pension [7] from the Australian Government.

One element of the means test [7] for income support pensions whereby the rate of pension payable to a pensioner reduces progressively as their income increases above a certain threshold known as the income free area (IFA) [7].

One element of the means test for income support pensions whereby the rate of pension payable to a pensioner reduces progressively as their assets increase above a certain threshold known as the assets value limit (AVL). [71]

Adjusted income defined in section 5H VEA, for the purposes of income support supplement, is the sum of the person's:

• ordinary income
• disability pensions paid by other governments
• war widow's/widower's pension [7] (VEA) or equivalent wholly dependent partner payments (MRCA)
• a foreign pension, similar in character to a war widow's/widower's pension.

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 [59]VEA [59].

Note:  War widow's pension [7] 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.

The term not a member of a couple covers all persons who are not covered by the definitions of member of a couple [7].

According to Section 5E(2) [59]of the VEA [59]a person is a member of a couple, if they are:

• legally married to another person and is not living separately and apart from the other person on a permanent basis; or
• living in a prescribed registered relationship with the other person (whether of the same sex or a different sex) and is not living separately and apart from that other person on a permanent basis; or
• all of the following conditions are met:

• living with another person, whether of the same sex or a different sex;
• not legally married to that person;
• in a de facto relationship with that person; and
• not in a prohibited relationship

The term “partnered” is also commonly used.

Assets value limit is the maximum value of assets a person can have without affecting the person's pension rate. The assets value limit is worked out in accordance with SCH6-F3 of the VEA [59].

A person is a homeowner if they have a right or interest, which gives reasonable security of tenure in the principal home.

Refer to sections 52Q and 52R of VEA for the definition when determining if a person is a considered to be a homeowner when living in a special residence.  

A person is also considered to be a homeowner if they have sold their home in the previous 12 months and intend to use part or all of the proceeds to purchase another home.

The ceiling rate of service pension and income support supplement (ISS) is applied to all war widows/widowers when assessing the rate of pension. This amount was previously frozen at $124.90 per fortnight, however, since legislation was introduced in September 2002, is now indexed twice yearly in line with percentage increases in the maximum rate service pension. A higher ceiling rate can apply, however, in the following cases:

If a person:

• became a war widow/widower-pensioner before 1 November 1986,

• has continually received service pension, social security pension or ISS since that date, and

• the rate of pension immediately before that date was more than $120.10

in such a case the ceiling rate is equal to the pre-November 1986 rate plus 4%.

If a person:

• is a person to whom ISS is payable,

• is not permanently blind, and

• whose War Widow's/Widower's Pension paid under Part II or IV of the VEA is reduced,

the ceiling rate is the sum of the ceiling rate as calculated above and the amount of the reduction in the Part II or Part IV pension. The maximum ceiling rate cannot exceed the maximum rate of single service pension. For ceiling rates refer to SCH6-A4 to A9 of VEA. The amount of increase to the ceiling rate pension under Part II or Part IV is worked out by using the formula in SCH6-A9 of the VEA.

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.

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 may be regarded as permanently blind in both eyes where:

• there is a total loss of sight; or
• visual acuity after correction with suitable lenses is less than 6/60 in both eyes on the Snellen Scale; or
• where, in the written opinion of an ophthalmologist, the visual field deficits and/or combination of deficits results in a visual impairment which is the equivalent of a corrected visual acuity measure of less than 6/60 in both eyes.

The Commission Guideline CM5829: Determining 'permanently blind', 'no useful sight' and 'blinded in both eyes' [58]may be instructive in making a blinded/blindness determination.

The ceiling rate of service pension and income support supplement (ISS) is applied to all war widows/widowers when assessing the rate of pension. This amount was previously frozen at $124.90 per fortnight, however, since legislation was introduced in September 2002, is now indexed twice yearly in line with percentage increases in the maximum rate service pension. A higher ceiling rate can apply, however, in the following cases:

If a person:

• became a war widow/widower-pensioner before 1 November 1986,

• has continually received service pension, social security pension or ISS since that date, and

• the rate of pension immediately before that date was more than $120.10

in such a case the ceiling rate is equal to the pre-November 1986 rate plus 4%.

If a person:

• is a person to whom ISS is payable,

• is not permanently blind, and

• whose War Widow's/Widower's Pension paid under Part II or IV of the VEA is reduced,

the ceiling rate is the sum of the ceiling rate as calculated above and the amount of the reduction in the Part II or Part IV pension. The maximum ceiling rate cannot exceed the maximum rate of single service pension. For ceiling rates refer to SCH6-A4 to A9 of VEA. The amount of increase to the ceiling rate pension under Part II or Part IV is worked out by using the formula in SCH6-A9 of the VEA.

The disability income rent test ceased on 1 January 2022. It was the method of calculating the amount by which a pensioner's rent assistance was reduced because of the disability income [7] paid to them or their partner [7]. The amount calculated was the RA reduction amount.

RA reduction amount = (disability income [7] – rent assistance free area [7]) x taper rate [7]

Note: The rent assistance free area and taper rate were identical to those that normally applied to the person's income support payment and family situation.

A person's 'partner' is someone who is a member of a couple with that person.

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 [123].

Rules introduced as part of the Secure and Sustainable Pension Reforms that came into effect on 20 September 2009. For income and assets test purposes the changes include:

• an increase to the income test taper rate from 40 cents to 50 cents on the dollar,
• the abolition of the additional child income free area,
• the introduction of a fortnightly pension supplement to replace telephone allowance, utilities allowance, pharmaceutical allowance and the GST supplement, and
• the introduction of a work bonus, whereby only 50% of the first $500 per fortnight of employment earnings is assessable for eligible pensioners.

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:

• transitional rules will result in a higher rate of pension, and
• they have never been assessed under the new rules.

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:

• have their payment calculated using the transitional maximum basic rate [7],
• have a taper rate of 40 cents in the dollar for the income test [7], and
• can still receive the additional income free area for children.

According to Schedule 6-B1 of the VEA [59] a MBR is the person's maximum rate as ascertained at the date of grant of the designated pension, and is the maximum annual pension rate payable at the date of grant (excluding allowances).

One element of the means test [7] for income support pensions whereby the rate of pension payable to a pensioner reduces progressively as their income increases above a certain threshold known as the income free area (IFA) [7].

According to section 5H of the VEA [70] income is:

• an amount earned, derived or received by a person for the person's own use or benefit;
• a periodical payment by way of gift or allowance; or
• a periodical benefit by way of gift or allowance.

Adjusted income defined in section 5H VEA, for the purposes of income support supplement, is the sum of the person's:

• ordinary income
• disability pensions paid by other governments
• war widow's/widower's pension [7] (VEA) or equivalent wholly dependent partner payments (MRCA)
• a foreign pension, similar in character to a war widow's/widower's pension.

One element of the means test for income support pensions whereby the rate of pension payable to a pensioner reduces progressively as their assets increase above a certain threshold known as the assets value limit (AVL). [71]

An asset means any property, including property outside Australia.

The ceiling rate of service pension and income support supplement (ISS) is applied to all war widows/widowers when assessing the rate of pension. This amount was previously frozen at $124.90 per fortnight, however, since legislation was introduced in September 2002, is now indexed twice yearly in line with percentage increases in the maximum rate service pension. A higher ceiling rate can apply, however, in the following cases:

If a person:

• became a war widow/widower-pensioner before 1 November 1986,

• has continually received service pension, social security pension or ISS since that date, and

• the rate of pension immediately before that date was more than $120.10

in such a case the ceiling rate is equal to the pre-November 1986 rate plus 4%.

If a person:

• is a person to whom ISS is payable,

• is not permanently blind, and

• whose War Widow's/Widower's Pension paid under Part II or IV of the VEA is reduced,

the ceiling rate is the sum of the ceiling rate as calculated above and the amount of the reduction in the Part II or Part IV pension. The maximum ceiling rate cannot exceed the maximum rate of single service pension. For ceiling rates refer to SCH6-A4 to A9 of VEA. The amount of increase to the ceiling rate pension under Part II or Part IV is worked out by using the formula in SCH6-A9 of the VEA.

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.

From 1 January 1998 responsibility for administration of most income support child related payments was transferred to  Centrelink [7]. However, saving provisions allow any person in receipt of service pension [7] or income support supplement [7] on 31 December 1997 who would be or is financially disadvantaged by the transfer to continue having their child related payments paid by DVA [7]. Saved children are assessed under the rules contained in the VEA as at 31 December 1997.

According to subsection 5K(1) of the VEA [59], maintenance income in relation to a person, means:

• child maintenance — that is, the amount of a payment or the value of a benefit that is received by the person for the maintenance of a maintained child of the person and is received from:

• a parent of the child, or
• the partner or former partner of a parent of the child, or

• partner maintenance — that is, the amount of a payment or the value of a benefit that is received by the person for the person's own maintenance and is received from the person's partner or former partner, or
• direct child maintenance — that is, the amount of a payment or the value of a benefit that is received by a maintained child of the person for the child's own maintenance and is received from:

• a parent of the child, or
• the partner or former partner of a parent of the child,

but does not include disability expenses maintenance.

Guardian allowance is included in the calculation of a person's service pension or ISS [7] where that person has a saved child and where that person is either not a member of a couple [7] or is a illness separated couple [7] or respite care couple. [7]