This section contains information on adjustments, reductions and increases that can be made to the assessed rate of service pension and income support supplement and on deductions which can be made from pension payments.
Last amended: 5 March 2013
VEA ? [3]
The rate of income support pension is calculated on an annual basis and then converted to a daily rate by dividing the annual rate by 364. The pension is then paid fortnightly.
More ? [4]
VEA ? [5]
Prior to 12 May 1983, fortnightly instalments of service pension [6] and income support supplement [6] were rounded to the nearest cent. From 12 May 1983 until 19 September 2001, fortnightly instalments of service pension and income support supplement were rounded up or down to the nearest multiple of 10 cents. If an amount was a multiple of 5 cents but not a multiple of 10 cents, the amount was rounded up by 5 cents. Since 20 September 2001, instalments of service pension and ISS have been rounded up or down to the nearest whole cent. Where the remainder is half a cent, the amount is increased to the next cent.
The following table provides examples of how rounding up and down has been applied to DVA payments since 20 September 2001
Example |
Unrounded fortnightly payment |
Amount payable per fortnight |
1 |
$295.633 |
$295.63 |
2 |
$295.635 |
$295.64 |
3 |
$295.636 |
$295.64 |
From 20 March 2013, the minimum amount of pension that is payable is the minimum pension supplement amount [6] and the clean energy supplement [6]. These amounts may be paid at the single rate, or member of a couple rate, as per the person's status in the assessment of their pension. The minimum pension supplement amount is a component that must be paid in full, or not at all. Thus, the minimum amount will be paid even if the person's assessed pension rate reduces to below this level but is greater than nil. This minimum amount will be lost only when the assessed pension rate under the income and assets test is nil.
More ? [7]
Note: This rule does not apply to overseas residents or pensioners away from Australia on a temporary basis for longer than 6 weeks, as they are not eligible for the minimum pension supplement amount or the clean energy supplement.
VEA ? [8]
No variation in the fortnightly rate of pension is made if the variation would be less than $1. Not determining pension variations of less than $1 is intended to reduce the level of intrusion into the private lives of veterans, and to eliminate unnecessary pension administration where changes to payability are minimal. However, the $1 minimum rule does not automatically apply in all pension variation cases, as this may breach other assessment requirements provided for by the VEA.
VEA ? [9]
The $1 minimum rule should be applied to –
The $1 minimum rule should not be applied when:–
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.
The minimum pension supplement is an annual rate and is paid fortnightly. From 1 July 2010, the minimum pension supplement became more flexible, with recipients able to elect to receive the payment quarterly. It is calculated as a combined couple rate and is indexed twice a year in line with CPI increases. The 'not a member of a couple' rate is 66.33% of the combined couple rate. The member of a couple rate is 50% of the combined couple rate. The minimum pension supplement commenced on 20 September 2009 and replaced utilities allowance and telephone allowance.
The energy supplement is a fortnightly or quarterly payment designed to help recipients meet the cost of electricity and gas bills.
The calculation of a person's rate of service pension or ISS can be affected by:
VEA ? [21]
If a person's assets reduced rate is less than the person's income reduced rate and the person has an unrealisable asset [6], the financial hardship rules may apply and the pension rate may be increased accordingly.
More ? [22]
VEA ? [23]
A person may be able to receive an increase in their rate of pension or ISS in the form of a loan under the Home Equity Access Scheme (HEAS). The HEAS is available to any person receiving either service pension or ISS, whether at the maximum rate or at a reduced rate, and to any person who is eligible for either pension or ISS but whose rate of payment is nil due to means testing
More ? [24]
VEA ? [25]
If a person (or their partner):
the person's pension, or the compensation affected component [6] of that pension (as the case may be) is to be reduced for the periodic payments period. The result is the compensation reduced rate of service pension or ISS.
The amount by which the pension is reduced depends on whether the person is a member of a couple, and if they are a member of a couple, whether their partner is eligible for a compensation affected pension or qualified for a compensation affected payment under the Social Security Act.
More ? [26]
VEA ? [27]
Receipt of a payment under the New Enterprise Incentive Scheme causes a 'dollar for dollar' reduction in the rate of pension. If, however, a person's pension and that of their partner are both to be reduced because of the payment, the reduction for each person is 50% of the payment. This effect is limited to a maximum of twelve months that amounts are payable under the scheme.
More ? [28]
An asset of a person is an unrealisable asset if:
compensation affected pension means:
(a)an invalidity service pension payable to a person who has not reached pension age; or
(b)a partner service pension payable to a person who has not reached pension age; or
(c)income support supplement payable to a person who has not reached qualifying age; or
(d)a veteran payment payable to a person who has not reached pension age (within the meaning of subsections 5QB(2), (3), (4) and (5)); or
(e)an education entry payment payable to a person who:
Note 1: For pension age see sections 5QA and 5QB.
Note 2: For qualifying age see section 5Q.
Periodic payments period means:
Under subsection 5NB(1) of the VEA as in force on 9 July 1996, compensation affected component' in relation to an amount of a compensation affected pension [6] that has a dependent child component [6], means that part of the amount of pension that is not the dependent child component.
Last amended: 22 September 2009
The amount of pension payable on a pension payday can be reduced because of:
VEA ? [42]
Income support pensioners can be paid an advance payment of an amount of their pension. The advance payment is to be repaid by fortnightly deductions from ongoing pension payments over the maximum period of six months.
More ? [43]
VEA ? [44]
Where there has been an overpayment or a debt incurred:
Links
[1] https://clik.dva.gov.au/user/login?destination=node/16143%23comment-form
[2] https://clik.dva.gov.au/user/login?destination=node/15999%23comment-form
[3] https://clik.dva.gov.au/book/export/html/16143#tgt-cspol_part9_ftn72
[4] https://clik.dva.gov.au/book/export/html/16143#tgt-cspol_part9_ftn73
[5] https://clik.dva.gov.au/book/export/html/16143#tgt-cspol_part9_ftn74
[6] https://clik.dva.gov.au/%23
[7] https://clik.dva.gov.au/book/export/html/16143#tgt-cspol_part9_ftn75
[8] https://clik.dva.gov.au/book/export/html/16143#tgt-cspol_part9_ftn76
[9] https://clik.dva.gov.au/book/export/html/16143#tgt-cspol_part9_ftn77
[10] https://clik.dva.gov.au/service-eligibility-assistant-updates/all-determinations-order-date-signed-oldest-most-recent/determinations-under-vea
[11] https://clik.dva.gov.au/book/export/html/16143#ref-cspol_part9_ftn72
[12] https://clik.dva.gov.au/compensation-and-support-policy-library/part-11-administration-payments/111-income-support-effective-dates-and-pension-periods/1112-pension-periods-and-paydays
[13] https://clik.dva.gov.au/book/export/html/16143#ref-cspol_part9_ftn73
[14] https://clik.dva.gov.au/book/export/html/16143#ref-cspol_part9_ftn74
[15] https://clik.dva.gov.au/compensation-and-support-policy-library/part-5-income-support-allowances-and-benefits/512-pension-supplement-psup/5123-payability-pension-supplement
[16] https://clik.dva.gov.au/compensation-and-support-policy-library/part-7-common-allowances-and-benefits/74-clean-energy-payments/742-energy-supplement
[17] https://clik.dva.gov.au/book/export/html/16143#ref-cspol_part9_ftn75
[18] https://clik.dva.gov.au/book/export/html/16143#ref-cspol_part9_ftn76
[19] https://clik.dva.gov.au/book/export/html/16143#ref-cspol_part9_ftn77
[20] https://clik.dva.gov.au/user/login?destination=node/16041%23comment-form
[21] https://clik.dva.gov.au/book/export/html/16143#tgt-cspol_part9_ftn78
[22] https://clik.dva.gov.au/book/export/html/16143#tgt-cspol_part9_ftn79
[23] https://clik.dva.gov.au/book/export/html/16143#tgt-cspol_part9_ftn80
[24] https://clik.dva.gov.au/book/export/html/16143#tgt-cspol_part9_ftn81
[25] https://clik.dva.gov.au/book/export/html/16143#tgt-cspol_part9_ftn82
[26] https://clik.dva.gov.au/book/export/html/16143#tgt-cspol_part9_ftn83
[27] https://clik.dva.gov.au/book/export/html/16143#tgt-cspol_part9_ftn84
[28] https://clik.dva.gov.au/book/export/html/16143#tgt-cspol_part9_ftn85
[29] https://clik.dva.gov.au/book/export/html/16143#ref-cspol_part9_ftn78
[30] https://clik.dva.gov.au/compensation-and-support-policy-library/part-3-income-support-eligibility/310-financial-hardship
[31] https://clik.dva.gov.au/book/export/html/16143#ref-cspol_part9_ftn79
[32] https://clik.dva.gov.au/book/export/html/16143#ref-cspol_part9_ftn80
[33] https://clik.dva.gov.au/compensation-and-support-policy-library/part-5-income-support-allowances-and-benefits/54-home-equity-access-scheme
[34] https://clik.dva.gov.au/book/export/html/16143#ref-cspol_part9_ftn81
[35] https://clik.dva.gov.au/book/export/html/16143#ref-cspol_part9_ftn82
[36] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/911-compensation-recovery
[37] https://clik.dva.gov.au/book/export/html/16143#ref-cspol_part9_ftn83
[38] https://clik.dva.gov.au/book/export/html/16143#ref-cspol_part9_ftn84
[39] https://clik.dva.gov.au/compensation-and-support-policy-library/part-10-types-income-and-assets/101-ordinary-income
[40] https://clik.dva.gov.au/book/export/html/16143#ref-cspol_part9_ftn85
[41] https://clik.dva.gov.au/user/login?destination=node/16084%23comment-form
[42] https://clik.dva.gov.au/book/export/html/16143#tgt-cspol_part9_ftn86
[43] https://clik.dva.gov.au/book/export/html/16143#tgt-cspol_part9_ftn87
[44] https://clik.dva.gov.au/book/export/html/16143#tgt-cspol_part9_ftn88
[45] https://clik.dva.gov.au/book/export/html/16143#tgt-cspol_part9_ftn89
[46] https://clik.dva.gov.au/book/export/html/16143#ref-cspol_part9_ftn86
[47] https://clik.dva.gov.au/compensation-and-support-policy-library/part-3-income-support-eligibility/311-lump-sum-advance
[48] https://clik.dva.gov.au/book/export/html/16143#ref-cspol_part9_ftn87
[49] https://clik.dva.gov.au/book/export/html/16143#ref-cspol_part9_ftn88
[50] https://clik.dva.gov.au/compensation-and-support-policy-library/part-12-compliance-and-obligations/126-overpayments
[51] https://clik.dva.gov.au/book/export/html/16143#ref-cspol_part9_ftn89