Indexation of pensions and allowances | |||||
Category | Indexation date(s)... | [glossary:Reference quarter:109] | [glossary:Base quarter:319] | Rounding base | Rate calculated under... |
[glossary:Service pension:245] [glossary:maximum basic rate:475]* | 20-Mar | December quarter | Highest December or June quarter prior to the reference quarter | $2.60 p/a, rounded up* | Section 59B VEA, Section 59EAA VEA Section 59EA VEA |
20-Sep | June quarter | ||||
Maximum transitional service pension and [glossary:income support supplement:118] | 20-Mar | December quarter | Highest December or June quarter prior to the reference quarter (but not earlier than June quarter 2008) | $2.60 p/a, rounded off | Section 59B VEA |
20-Sep | June quarter | ||||
[glossary:Pension Supplement:195] [glossary:Minimum Pension Supplement amount:121] |
20-Mar | December quarter | Highest December or June quarter prior to the reference quarter (but not earlier than June quarter 2009) | $5.20 p/a, rounded off | Section 59B VEA |
20-Sep | June quarter | ||||
[glossary:Pension Supplement Basic Amount:486] | 20-Mar | December quarter | Highest December or June quarter prior to the reference quarter (but not earlier than December quarter 2008) | $2.60 p/a, rounded off | Section 59B VEA |
20-Sep | June quarter | ||||
[glossary:Crisis payment:522] | Not indexed but set as equal to the relevant service pension rate. | Veterans' Entitlements (Special Assistance) Regulations 1999 | |||
[glossary:Ceiling rate:507] [glossary:income support supplement:118] Ceiling rate veteran SP [glossary:war widow/ widower:364] |
20-Mar | Indexed using pension MBR factor | $2.60 p/a, rounded up | Section 59LA VEA | |
20-Sep | |||||
[glossary:Rent assistance:367] | 20-Mar | December quarter | Highest December or June quarter prior to the reference quarter | $5.20 p/a rounded off | Section 59B VEA |
20-Sep | June quarter | ||||
[glossary:Saved child:651] related payments [glossary:Guardian allowance:300] |
1-Jul | December quarter | Highest December quarter prior to the reference quarter | $3.65 p/a, rounded off | Schedule 5, clause 10 VEA, |
Schedule 4 of the A New Tax System (Family Assistance) Act 1999 | |||||
A New Tax System (Family Assistance) Act 1999 [3] | |||||
Without [glossary:adequate means of support pension:547] | Not indexed but set as equal to the relevant service pension rate | Regulations 32, 34, 34AA of the Repatriation Regulations |
*These payments may also be increased with reference to [glossary:MTAWE:205]. MTAWE increases have different rounding rules.
Indexation of limits, rates and thresholds | |||||
Category | Indexation date(s)... | Reference quarter | Base quarter | Rounding base | Rate calculated under... |
[glossary:Assets value limits:690]* | 1-Jul | December quarter | December quarter prior to the reference quarter | $250.00, rounded off | Section 59B VEA |
[glossary:Income free area:147] | 1-Jul | March quarter | March quarter prior to the reference quarter | $52.00 p/a, rounded off | Section 59B VEA |
Maintenance income free area | 1-Jul | December quarter | Highest December quarter prior to the reference quarter | $10.95 p/a, rounded off | Schedule 5, clause 10 VEA, |
Schedule 4 of the A New Tax System (Family Assistance) Act 1999 | |||||
[glossary:Income/assets reduction limits:528] ([glossary:IARL:528]) | 20-Mar | December quarter | Highest June or December quarter prior to the reference quarter | $2.60 p/a, rounded off | Section 59B VEA |
20-Sep | June quarter | ||||
Deeming thresholds | 1-Jul | March quarter | Highest March quarter prior to the reference quarter | $200.00, rounded off | Section 59B VEA |
Pension rent threshold | 20-Mar | December quarter | Highest June or December quarter prior to the reference quarter | $5.20 p/a, rounded off | Section 59B VEA |
20-Sep | June quarter | ||||
[glossary:Funeral bond threshold:648] | 1-Jul | December quarter | December quarter prior to the reference quarter | $250.00, rounded off | Section 59B VEA |
[glossary:Primary production attribution threshold:369] (assets) | 1-Jul | December quarter | December quarter prior to the reference quarter | $250.00, rounded off | Section 59B VEA |
[glossary:Primary production attribution threshold:369] (income) | 1-Jul | December quarter | Highest December quarter prior to the reference quarter | $73.00 p/a, rounded off | Schedule 4 of the A New Tax System (Family Assistance) Act 1999 |
Permissible child earnings, child under 16 | 1-Jan | June quarter | Highest June quarter prior to the reference quarter | $0.05 p/w, rounded off | SSA Part 3.16—Indexation and adjustment of amounts [4] Social Security Act 1991 [5] |
Permissible child earnings, child 16-21 years old | 1-Jan | June quarter | Highest June quarter prior to the reference quarter | $0.05 p/a, rounded off | SSA |
[glossary:Special disability trust:293] assets value limit | 1-Jul | December quarter | December quarter prior to the reference quarter | $250.00, rounded off | Section 59B VEA |
Seniors health card taxable income limit | 20-Sep | June quarter | Highest June quarter prior to the reference quarter | $1.00 p/a, rounded off | Section 198FAA |
*The 'not a member of a couple' non-homeowner assets value limit is adjusted by a formula with reference to the limits for 'not a member of a couple" homeowners, partnered homeowners and partnered non-homeowners.
Indexation of pensions and allowances | ||||||
Category | Indexation date(s)... | Reference quarter | Base quarter | Rounding base | Rate calculated under... | |
War widow's/widower's pension [7] (para 30(1)(a) component) | 20-Mar | Not indexed but each March and September this rate will be substituted with the single rate service pension [7] MBR [7] | N/A | Section 198 VEA | ||
20-Sep | ||||||
War widow's / widower's pension (para 30(1)(b) component) | 20-Mar | Indexed using pension MBR factor | $0.10 p/f, rounded up | Section 198 VEA | ||
20-Sep | ||||||
War widow's / widower's pension (para 30(1)(c) component) | 20-Mar | December quarter | Highest June or December quarter prior to the reference quarter | $2.60 p/a, rounded off | Section 198 VEA | |
20-Sep | June Quarter | |||||
Disability Compensation Payment [7] - special rate - intermediate rate - EDA - general rate | 20-Mar | Indexed using pension MBR factor. | $0.10 p/f, rounded up | Section 198 VEA | ||
20-Sep | ||||||
Increased rates for specific disability - items 1-6 | 20-Mar | December quarter | Highest June or December quarter prior to the reference quarter | $0.10 p/f, rounded off | Section 198 VEA | |
20-Sep | June quarter | |||||
Increased rates for specific disability - items 7-15 | 20-Sep | June quarter | Highest June quarter prior to the reference quarter | $0.10, rounded off | Section 198D VEA | |
Orphan's pension [7] | 1-Jan | June quarter | Highest June quarter prior to the reference quarter | $0.10 p/f, rounded off | Section 198A VEA | |
PNG pension - disability - widows - other dependants | 20-Mar | Indexed using pension MBR factor | $0.10, rounded off | Members of the Forces Benefits Act 1957 (and Regulations) | ||
20-Sep | ||||||
PNG pension - orphan | 1-Jan | Indexed using proportional increase in VEA orphan's pension rate. | $0.10, rounded off | Members of the Forces Benefits Act 1957 (and Regulations) | ||
Veterans supplement [7] | 1-Jan | June quarter | June quarter prior to the reference quarter (but not earlier than June quarter 2008) | $0.20 p/f rounded down | Section 198F VEA, | |
Clothing allowance | 20-Sep | June quarter | Highest June quarter prior to the reference quarter | $0.10, rounded off | Section 198D VEA | |
Attendant allowance | ||||||
Recreational transport allowance | ||||||
Prisoner of War Recognition Supplement | ||||||
Vehicle Assistance Scheme - Running and Maintenance Allowance | 20-Sep | Not indexed but set as equal to the high rate of recreation transport allowance multiplied by 26. | Vehicle Assistance Scheme - Instrument 1997 No. 1 | |||
Victoria Cross allowance | 20-Sep | June quarter | Highest June quarter prior to the reference quarter | $1.00, rounded off | Section 198FA VEA | |
Education allowances | 1-Jan | June quarter | Highest June quarter prior to the reference quarter | $0.10 p/f, rounded off | Veterans' Children Education Scheme Instrument 1992 No. 11 |
A form of pension that is paid to the partner of a veteran where the veteran has died as a result of war service or eligible Defence Service [7]. War widow's/widower's pension is also paid to the partner of a veteran whose death was not war caused if the veteran was a ex-prisoner of war or if the veteran was receiving Extreme Disablement Adjustment (EDA) Rate [7], Special Rate (T&PI) [7] or a rate increased in respect of certain war-caused injury or disease.
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.
According to Schedule 6-B1 of the VEA [8] 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).
Disability compensation payment (known before 2022 as disability pension), for the purposes of service pension, income support supplement and veteran payment, means:
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.
A form of pension that is paid to a child of a veteran where the veteran has died as a result of war service [7] or defence service [7]. The child may be the natural or adopted child of the veteran or any other child who was wholly or substantially dependent [7] on the veteran.
The veterans supplement was introduced on 20 September 2009 as part of the Government's Secure and Sustainable Pension Reform package. It is a fortnightly payment that replaces pharmaceutical allowance [7] and/or telephone allowance [7] for compensation recipients who are not in receipt of an income support supplement [7]. There are two rates, the veterans supplement low rate and the veterans supplement high rate. The low rate replaces one of the allowances and the high rate replaces both. The low rate is indexed every January to the Consumer Price Index [7] (CPI). The high rate is always twice the amount of the low rate.
A number of VEA payments, limits and rates that are not subject to indexation [7]. These include:
There a number of payments, limits and thresholds that are not indexed themselves but are derived from other amounts that are indexed. These include:
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.
A form of pension that prior to 6 June 1985 was granted to the dependants of a veteran whose death was service related where those dependants were without “adequate means of support”. Dependants who could be paid the pension included the wife, husband, widow(er), child, parent or other members of the veteran's family. AMS pensions could also be granted to the invalid child of an incapacitated veteran.
From 6 June 1985, there have been no new grants of AMS pensions, however, a small number of AMS pensions are still in payment.
The information below is for historical reference only.
Defence Force Income Support Allowance (DFISA) ceased on 1 January 2022 because adjusted disability income became exempt income under the Social Security Act 1991. It was an income support payment [7] paid by DVA [7] to people whose income support payment under Social Security Law [7] was reduced, or not payable, because of the impact of adjusted disability pension [7]. DFISA was the difference between the person's existing entitlement, and what the entitlement would have been had adjusted DP been exempt, but was assessed in the calculation of rent assistance.
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.
Education Entry Payment (EdEP) is a payment to assist eligible pensioners with the costs of enrolling in a course of study in order to develop their skills, obtain a qualification and improve their employment prospects. It is paid once a year in accordance with section 118AAC of VEA [10].
The taper rate is used to reduce the rate of a person's service pension [7] or income support supplement [7] if they or their partner have any ordinary income [7] in excess of the ordinary/adjusted income free area [7] (IFA). Any income in excess of the IFA will reduce the maximum payment rate by a 'taper rate' of 50 cents in the dollar (or 40 cents for transitional rate of pension). The result is the income reduced rate.
The same taper rate is also used in disability income rent test [7] calculations to determine the amount of rent assistance [7] for service pensioners and income support supplement recipients.
In addition to the income test taper, any assets in excess of the assets value limit will reduce the maximum payment rate per fortnight by 37.5 cents for every $250 over the Asset Value Limit. The result is the assets reduced rate
Links
[1] https://clik.dva.gov.au/user/login?destination=node/16088%23comment-form
[2] https://clik.dva.gov.au/user/login?destination=node/16034%23comment-form
[3] https://www.legislation.gov.au/Series/C2004A00490
[4] http://www.comlaw.gov.au/comlaw/management.nsf/lookupindexpagesbyid/IP200401781?OpenDocument
[5] https://www.legislation.gov.au/Series/C2004A04121
[6] https://clik.dva.gov.au/user/login?destination=node/16120%23comment-form
[7] https://clik.dva.gov.au/%23
[8] http://www.comlaw.gov.au/Series/C2004A03268
[9] https://clik.dva.gov.au/user/login?destination=node/16006%23comment-form
[10] http://clik.dva.gov.au/legislation-library