Last amended: 22 April 2014
This section outlines the requirements for claiming a bonus.
VEA ? [3]
To claim a bonus payment, a member of the pension bonus scheme [4] (PBS) must:
To be a proper claim, it is necessary that the bonus claim be attached to, or submitted in relation to, a claim for pension. It is preferable that both claims be made together and determined at the same time, as the bonus is calculated using the rate of pension granted. In the event that the forms are lodged separately, the bonus claim is still valid if it is accepted that the claim was made in connection with a claim for pension.
It is important that eligible veterans are informed that if they have already ceased work and their claim for service pension and pension bonus is unsuccessful, they will not be eligible to lodge a subsequent claim for pension bonus. A preliminary check of payability could be considered so that veterans are able to make an informed decision about whether to proceed with their claim, or to consider other options.
More ? [5]
Note: A person claiming a bonus payment is subject to the level of proof of identity check required by their accompanying pension claim.
More ? [6]
Despite being able to register for the scheme at both DVA [4] and Centrelink [4], only one bonus payment can be claimed, from either DVA or Centrelink. The “one bonus” rule does not restrict a person from receiving a pension bonus bereavement payment as well as a pension bonus in their own right.
An accruing, non-working partner can claim pension and bonus after the first full year bonus period without affecting the working partner's on-going membership of the scheme.
If the working partner claims both pension and bonus, the non-working partner has two choices:
Where a formerly non-working partner decides to start work and accrue a larger bonus, they are not able to add the partner's work to their own to meet the work test in the bonus year when commencing work. In such a case, at least one member of the couple must work for a minimum of 960 hours where the bonus period is a full-year, or pro-rated for a part year (final year).
More ? [7]
Partners Mike and Mary are both registered members of the PBS (with the same registration date) and have accrued one bonus year on the basis of Mike's work. Six months into the second year Mike ceases work and claims pension and the bonus (1 full year and a part year).
Mary wants to accrue a larger bonus and defers pension. She can, however, only accrue a full year's bonus for this second year if Mike passed the work test on the basis of his own work, or if she passes the work test on the basis of her own work. If she can't do so, she will need to claim pension and bonus within her lodgement period, or forfeit the bonus.
In order to receive a bonus payment, a member must:
VEA ? [10]
A claimant for pension bonus can withdraw their claim, orally or in writing. This claim is then taken not to have been made. If the claim for the designated pension is withdrawn, the claim for bonus is also taken to have been withdrawn. Where a claim for pension bonus is made and the pension is rejected on the grounds of disposal of assets, the bonus claim can be taken to have been withdrawn if the claimant agrees. This may enable the claimant to remain in the scheme, continue working and accrue bonus periods to claim at a later date.
VEA ? [11]
If a claim for pension bonus is granted, the bonus is payable on the first payday after grant or the next available day.
VEA ? [12]
The pension bonus scheme is inalienable except where the Commission:
More ? [13]
Claiming the bonus
5.6.6/Lodgement Period for a Claim [19]
2.1.2/Service Pension and Income Support Supplement Claims [20]
The pension bonus scheme closed to new entrants on 20 September 2009. Existing members can continue in the scheme under the rules that existed prior to 20 September 2009. The pension bonus scheme provided an incentive for older Australians to remain in the workforce and defer receipt of income support pension [38]. The incentive was a bonus, payable if all eligibility criteria and rules were satisfied.
The pension bonus was a once-only, tax-free lump sum payable to a person who, on reaching their special date of eligibility [39], voluntarily deferred retirement for at least one year and registered as a member of the scheme. The pension bonus was claimed at the same time as claiming pension and is calculated using the annual rate of basic pension payable at grant, multiplied by the bonus periods accrued.
According to Section 179 [40]of the VEA [40], the Commission is a body corporate under the name of Repatriation Commission.
Designated pension is defined in section 45TA VEA and relates to the pension bonus scheme. Designated pension means:
Designated pension under the Social Security Act 1991 means age pension
The Department of Veterans' Affairs.
Centrelink is a Government service delivery agency responsible for delivering a range of Commonwealth Government services (including social security pensions and allowances) to the Australian community through a network of more than 400 Centrelink offices.
Income support pension is:
VEA → [42]
While there are prescribed lodgement periods, the Commission has the discretion to extend the period a person has to lodge their pension bonus claim form due to special circumstances.
Unless the Commission extends the lodgement period [8], the following lodgement periods apply to claiming the pension bonus:
Last bonus period/member's status | Lodgement period |
Last bonus period is a full year period [4]. VEA → [44]
| A 13 week period starting from the end of that last bonus period |
Last bonus period is a part year period [4]. VEA → [45]
| A 13 week period, or a longer period if allowed by Commission, starting from the end of that last bonus period. If Commission allows late lodg — e — ment, the part-year bonus is disregarded in calculating the bonus. |
VEA → [46]
| Starts at the end of the last bonus period and ends at the earlier of:
|
Non-accruing member [4]. VEA → [47]
| Starts from the end of the person's last bonus period and ends 13 weeks after the person ceases to be a non-accruing member. |
Post 70/75 member [4]. VEA → [48]
| A 13 week period starting from the end of their nominated post 70/75 work period. |
Prior to 1 January 2008, the Commission only had the discretion to allow a longer period in which to claim a bonus if the person's last bonus period is a part year period.
The Commission has discretion to accept any late pension bonus scheme (PBS) claim lodged on or after 1 January 2008 providing there was a special reason for late lodgement of the claim. The event that caused the late lodgement of the claim may have occurred prior to 1 January 2008.
The intention of the late claims provisions is to allow acceptance of late claims from members who have not been able to lodge a claim within the time limits due to special circumstances, and not for members who deliberately claim late in order to get a higher bonus. The member should be asked for their reasons for making a late claim for pension bonus and evidence should be provided, where applicable/appropriate.
Care must be taken in assessing late claims from non-accruing members, for example, where a non-accruing member has waited until their partner ceases work before claiming a pension and a pension bonus, in order to receive a larger pension bonus. Deliberate late claims are contrary to the intention to close the pension bonus scheme, and should therefore only be accepted in special circumstances.
Special circumstances may include a PBS member being unaware of the change to the scheme, or where a person is unable to lodge a claim due to being hospitalised for an extended period. Where such special circumstances exist, delegates may decide that late claims may be accepted within a reasonable timeframe. Until 20 September 2010 can be regarded as a reasonable timeframe.
The Commission has the discretion to allow a longer period in which to claim a bonus where it would not have been reasonably practicable for the claim to have been lodged earlier. For example, the member has poor numeracy skills, was ill, was located in a remote area, or performed irregular work that made it difficult for the member to determine the lodgement period. The discretionary nature of the special circumstances provisions makes it impossible to give a precise list of factors that should be taken into account when considering whether the provisions should be applied. There is usually not one factor which makes a situation unusual, unforseen and exceptional, but a combination of factors applying to each individual.
The Commission also has the power to treat a PBS claim lodged after the pension claim as a proper claim in some limited circumstances. A claim for bonus from a registered PBS member maybe taken as being lodged at the same time as the claim for pension if:
More → [50]
DFISA ceased 1 January 2022. This is for historical reference only.
There was no separate DFISA bonus [4] claim. Where a person's pension bonus was reduced (including to nil) because adjusted disability pension [4] reduced their rate of age pension [4], they were automatically entitled to a DFISA bonus from DVA. To access the DFISA bonus, a person must have lodged a claim for the pension bonus.
More → [51]
Legislation Library – Income Support – Pension Bonus
VE-GUIDELINES/2007-Delayed Lodgment of Claims for Pension Bonus [68]
Full year period means a continuous period of 365 days.
Part year period means a continuous period of less than 365 days.
According to subsection 45UL(8) [40] of the VEA, a person is an exempt partnered person at a particular time if, at that time, the person is a member of a couple, and:
A person's 'partner' is someone who is a member of a couple with that person.
Non-accruing membership status is given for a specified time when a person:
Commission may, by Gazettal notice, declare that other kinds of members are non-accruing members.
When a veteran with qualifying service or a war widow eligible to receive income support supplement [4] reaches 70 years of age they become a Post 70 member of the Scheme. For other members, the age is 75 years. Once a person becomes a Post 70/75 member they can no longer accrue any more bonus periods, however, they can continue to work and defer pension as long as they continue to pass the work test [4].
The information below is for historical reference only.
DFISA bonus ceased 1 January 2022 because adjusted disability income became exempt income under the Social Security Act. It was defined in section 5Q(1) of the VEA and was a VEA [4] payment under the former Part VIIAB of the VEA. A person was entitled to the DFISA bonus if their social security pension bonus was reduced because of the inclusion of adjusted DP [4] in the calculation of their age pension [4] rate. The DFISA bonus was the difference between:
On 1 January 2022, both DFISA and the Disability Income Rent Test were removed. Thus the term Adjusted Disability Pension was made redundant. The following is for historical reference only.
Section 118NA of the VEA defined adjusted disability pension as:
Adjusted disability pension did not include war widow's/widower's pension [4], or payments made by other governments to compensate for war or service related injuries.
An age pension is a means tested [4] income support payment [4] paid by Centrelink [4] or DVA [4] on behalf of the Department of Families, Housing, Community Services and Indigenous Affairs. The majority of age pensions are paid through Centrelink. However, eligible veterans [4] who have an accepted disability [4] or receive a Disability Compensation Payment [4] from DVA, but do not have qualifying service [4], may be paid their age pension by DVA. Their partner may also receive their age pension from DVA, if eligible.
Links
[1] https://clik.dva.gov.au/user/login?destination=node/16167%23comment-form
[2] https://clik.dva.gov.au/user/login?destination=node/16290%23comment-form
[3] https://clik.dva.gov.au/book/export/html/16167#tgt-cspol_part5_ftn234
[4] https://clik.dva.gov.au/%23
[5] https://clik.dva.gov.au/book/export/html/16167#tgt-cspol_part5_ftn235
[6] https://clik.dva.gov.au/book/export/html/16167#tgt-cspol_part5_ftn236
[7] https://clik.dva.gov.au/book/export/html/16167#tgt-cspol_part5_ftn237
[8] clikpopup://DEF/Lodgment period
[9] https://clik.dva.gov.au/book/export/html/16167#tgt-cspol_part5_ftn238
[10] https://clik.dva.gov.au/book/export/html/16167#tgt-cspol_part5_ftn239
[11] https://clik.dva.gov.au/book/export/html/16167#tgt-cspol_part5_ftn240
[12] https://clik.dva.gov.au/book/export/html/16167#tgt-cspol_part5_ftn241
[13] https://clik.dva.gov.au/book/export/html/16167#tgt-cspol_part5_ftn242
[14] https://clik.dva.gov.au/book/export/html/16167#tgt-cspol_part5_ftn243
[15] https://clik.dva.gov.au/service-eligibility-assistant-updates/all-determinations-order-date-signed-oldest-most-recent/determinations-under-vea
[16] https://clik.dva.gov.au/book/export/html/16167#tgt-cspol_part5_ftn244
[17] https://clik.dva.gov.au/book/export/html/16167#tgt-cspol_part5_ftn245
[18] https://clik.dva.gov.au/book/export/html/16167#ref-cspol_part5_ftn234
[19] https://clik.dva.gov.au/compensation-and-support-policy-library/part-5-income-support-allowances-and-benefits/56-pension-bonus-scheme/566-claiming-bonus/lodgement-period-claim
[20] https://clik.dva.gov.au/compensation-and-support-policy-library/part-2-applying-pension/21-claims/212-types-claims/service-pension-and-income-support-supplement-claims
[21] https://clik.dva.gov.au/book/export/html/16167#ref-cspol_part5_ftn235
[22] https://clik.dva.gov.au/compensation-and-support-policy-library/part-2-applying-pension/22-proof-identity
[23] https://clik.dva.gov.au/book/export/html/16167#ref-cspol_part5_ftn236
[24] https://clik.dva.gov.au/compensation-and-support-policy-library/part-5-income-support-allowances-and-benefits/56-pension-bonus-scheme/564-membership-requirements/work-requirements-pension-bonus-scheme
[25] https://clik.dva.gov.au/book/export/html/16167#ref-cspol_part5_ftn237
[26] https://clik.dva.gov.au/book/export/html/16167#ref-cspol_part5_ftn238
[27] https://clik.dva.gov.au/book/export/html/16167#ref-cspol_part5_ftn239
[28] https://clik.dva.gov.au/book/export/html/16167#ref-cspol_part5_ftn240
[29] https://clik.dva.gov.au/book/export/html/16167#ref-cspol_part5_ftn241
[30] https://clik.dva.gov.au/compensation-and-support-policy-library/part-11-administration-payments/118-ownership-pension-instalments
[31] https://clik.dva.gov.au/book/export/html/16167#ref-cspol_part5_ftn242
[32] https://clik.dva.gov.au/compensation-and-support-policy-library/part-11-administration-payments/116-taxation/1165-payment-tax-withholdings-commissioner-taxation/payment-tax-withholdings-commissioner-taxations-direction
[33] https://clik.dva.gov.au/book/export/html/16167#ref-cspol_part5_ftn243
[34] https://clik.dva.gov.au/compensation-and-support-policy-library/part-11-administration-payments/116-taxation/1165-payment-tax-withholdings-commissioner-taxation/payment-tax-withholdings-pensioners-request
[35] https://clik.dva.gov.au/book/export/html/16167#ref-cspol_part5_ftn244
[36] https://clik.dva.gov.au/compensation-and-support-policy-library/part-12-compliance-and-obligations/126-overpayments
[37] https://clik.dva.gov.au/book/export/html/16167#ref-cspol_part5_ftn245
[38] clikpopup://DEF/Income%20support%20pension
[39] clikpopup://DEF/Special%20date%20of%20eligibility
[40] http://clik.dva.gov.au/legislation-library
[41] https://clik.dva.gov.au/user/login?destination=node/16189%23comment-form
[42] https://clik.dva.gov.au/book/export/html/16167#tgt-cspol_part5_ftn246
[43] https://clik.dva.gov.au/book/export/html/16167#tgt-cspol_part5_ftn247
[44] https://clik.dva.gov.au/book/export/html/16167#tgt-cspol_part5_ftn248
[45] https://clik.dva.gov.au/book/export/html/16167#tgt-cspol_part5_ftn249
[46] https://clik.dva.gov.au/book/export/html/16167#tgt-cspol_part5_ftn250
[47] https://clik.dva.gov.au/book/export/html/16167#tgt-cspol_part5_ftn251
[48] https://clik.dva.gov.au/book/export/html/16167#tgt-cspol_part5_ftn252
[49] https://clik.dva.gov.au/book/export/html/16167#tgt-cspol_part5_ftn253
[50] https://clik.dva.gov.au/book/export/html/16167#tgt-cspol_part5_ftn254
[51] https://clik.dva.gov.au/book/export/html/16167#tgt-cspol_part5_ftn255
[52] clik://LEGIS/VEA/section 45UL
[53] https://clik.dva.gov.au/book/export/html/16167#ref-cspol_part5_ftn246
[54] clik://LEGIS/VEA/section 45UL(1A)
[55] https://clik.dva.gov.au/book/export/html/16167#ref-cspol_part5_ftn247
[56] clik://LEGIS/VEA/section 45UL(2)
[57] https://clik.dva.gov.au/book/export/html/16167#ref-cspol_part5_ftn248
[58] clik://LEGIS/VEA/section 45UL(3)
[59] https://clik.dva.gov.au/book/export/html/16167#ref-cspol_part5_ftn249
[60] clik://LEGIS/VEA/section 45UL(5)
[61] https://clik.dva.gov.au/book/export/html/16167#ref-cspol_part5_ftn250
[62] clik://LEGIS/VEA/section 45UL(6)
[63] https://clik.dva.gov.au/book/export/html/16167#ref-cspol_part5_ftn251
[64] clik://LEGIS/VEA/section 45UL(7)
[65] https://clik.dva.gov.au/book/export/html/16167#ref-cspol_part5_ftn252
[66] clik://LEGIS/VEA/section 45UK(5)
[67] https://clik.dva.gov.au/book/export/html/16167#ref-cspol_part5_ftn253
[68] clik://LEGIS/VE-GUIDELINES/2007-Delayed Lodgment of Claims for Pension Bonus
[69] https://clik.dva.gov.au/book/export/html/16167#ref-cspol_part5_ftn254
[70] https://clik.dva.gov.au/compensation-and-support-policy-library/part-5-income-support-allowances-and-benefits/59-defence-force-income-support-allowance-dfisaceased-2022/594-dfisa-bonus-ceased-2022
[71] https://clik.dva.gov.au/book/export/html/16167#ref-cspol_part5_ftn255
[72] clikpopup://DEF/Partner