VEA ? [2]
The purpose of pension supplement [3] [glossary:(PSup):] is to assist DVA service pensioners [3] with costs such as pharmaceuticals, and telephone, internet, energy, rates, water and sewerage bills.
The pension supplement is added to a person's maximum basic rate [3]. The pension supplement is calculated as a 'combined couple' rate. 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. From 1 July 2010, the minimum pension supplement amount [3] will be able to be claimed on a quarterly basis rather than on a fortnightly basis.
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.
Last amended: 1 July 2010
VEA → [9]
Pension Supplement (PSup) is a fortnightly amount paid to eligible pensioners to assist in meeting the cost of prescriptions, rates, telephone and internet connections, energy, water and sewerage.
Service pensioners have PSup included as a means-tested component of their pension.
PS — up is payable at the single or partnered rate depending on the recipient's family situation and whether or not the person is overseas other than temporarily.
More → [10]
There are three components of pension supplement:
Different rules apply to each of these components regarding the eligibility criteria, payment arrangements and tax status. A summary is provided in the table below:
Component |
Taxable |
Other features |
Minimum amount |
No |
This component is paid in full if some pension supplement is payable. Payment rate is equivalent to the Seniors Supplement. Pensioners can elect to receive this component quarterly. |
Basic amount |
Yes |
The only component payable to overseas residents. The only component included in pension bonus calculations |
Tax exempt amount |
No |
Last amended 17 December 2012
To be eligible for pension supplement [3] (PSup) a pensioner must be a recipient of an invalidity service pension [16], age service pension or partner service pension.
More ? [17]
If a pensioner is living overseas or if, they have been away from Australia on a temporary basis for longer than 6 weeks, they are only eligible for the basic amount of pension supplement.
More ? [18]
The pension supplement is added to a person's maximum basic rate [3]. The pension supplement is calculated as a 'combined couple' rate. 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. From 1 July 2010, the minimum pension supplement amount [3] will be able to be claimed on a quarterly basis rather than on a fortnightly basis.
Last amended 17 December 2012
VEA ? [23]
Pension supplement [3] is a daily entitlement. Where a person receives service pension [16], PSup is paid as part of that pension and is subject to reduction under the income test [24] or assets test [25] along with the pension.
The minimum pension supplement amount [3] (minimum amount) applicable to a person's family situation is payable as long as the amount of service pension payable to the person is not reduced to nil under the income test or assets test. If the rate of service pension is greater than nil but less than the person's minimum amount, the rate of service pension paid is increased to the rate of the person's minimum amount. If the amount of service pension payable to the person is reduced to nil under the income test or assets test, PSup will be cancelled.
A single veteran's rate of service pension including PSup is calculated at 10 cents per fortnight under the income test. The rate of service pension paid to the veteran is maintained at the minimum amount. The veteran's income subsequently increases and the rate of service pension (including PSup) is reduced to nil. No PSup is payable.
Where a person receives income support supplement, there is no separate PSup component added to their rate of ISS. However, the minimum amount rules do apply where the rate of ISS payable to the person is income/assets reduced.
More ? [26]
The minimum amount is portable for up to 6 weeks of a temporary absence from Australia. For pensioners residing permanently overseas, the minimum amount is not payable.
The basic amount of pension supplement remains payable regardless of whether or not a pensioner is overseas.
There are no specific obligations for pension supplement. Standard pension obligations apply.
The pension supplement is added to a person's maximum basic rate [3]. The pension supplement is calculated as a 'combined couple' rate. 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. From 1 July 2010, the minimum pension supplement amount [3] will be able to be claimed on a quarterly basis rather than on a fortnightly basis.
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.
Last amended: 1 July 2010
A pensioner does not need to apply for pension supplement [31] (PSup). If they are eligible, the allowance will be paid automatically to the same payment destination as their income support pension [32].
VEA ? [33]
The annual rates of pension supplement, minimum pension supplement amount and pension supplement basic amount are calculated as percentages of the combined couples rate. The percentages are:
Family Situation |
Rate per year More ? [34] |
not a member of a couple |
66.33% |
member of a couple |
50% |
illness separated couple or respite care |
66.33% |
The daily rate of pension supplement is calculated by dividing the annual rate by 364.
Pension supplement is paid fortnightly on pension pay day. They may also elect to [glossary:defer a portion of the fortnightly amount and have it paid:] quarterly.
VEA ? [35]
Pensioners may elect to receive the minimum pension supplement amount [3] quarterly, rather than fortnightly. When a quarterly election is in force, the payment each fortnight is reduced by that portion which will accrue and be paid at the end of the quarter. The remainder of the supplement continues to be paid fortnightly. Pensioners whose rate of pension is determined under the transitional provisions also have the option to receive an amount equal to the minimum pension supplement amount in a quarterly instalment.
Pensioners may notify the Department by phone, letter, fax, in person or by email to change between fortnightly and quarterly minimum pension supplement payments. Members of a couple can elect different payment frequencies.
Quarterly instalments
VEA ? [36]
The amount of the quarterly instalment is worked out by multiplying the person's daily rate of minimum pension supplement amount [3] by the number of days during the test period for which a quarterly election is in force. The amount payable will exclude any minimum pension supplement amount that has been paid fortnightly since the last test day. It will also exclude payment for any days that the person was not eligible to receive the minimum pension supplement amount, for example, if pension was granted part way through the quarter, or the pensioner was overseas longer than 13 weeks.
Test periods and test days
VEA ? [37]
A test period starts on the most recent supplement test day and ends on the day immediately before the current test day. Instalments are paid as soon as practicable after each test day. The quarterly pension supplement test days are:
20 March
20 June
20 September, and
20 December.
The basic amount of pension supplement is taxable. The tax exempt and the minimum amount components of the pension supplement are tax exempt.
All three components of PSup are indexed twice each year. If the rates are increased the new rate takes effect from 20 March and 20 September each year.
Outstanding debts owed to DVA because of overpayment may be recovered by withholding pension supplement.
More ? [38]
6/08/14 — Page 1
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 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.
Links
[1] https://clik.dva.gov.au/user/login?destination=node/16243%23comment-form
[2] https://clik.dva.gov.au/book/export/html/16243#tgt-cspol_part5_ftn494
[3] https://clik.dva.gov.au/%23
[4] https://clik.dva.gov.au/compensation-and-support-policy-library/part-3-income-support-eligibility/31-service-pension-eligibility
[5] https://clik.dva.gov.au/compensation-and-support-policy-library/part-5-income-support-allowances-and-benefits/511-seniors-supplement-ssup
[6] https://clik.dva.gov.au/service-eligibility-assistant-updates/all-determinations-order-date-signed-oldest-most-recent/determinations-under-vea
[7] https://clik.dva.gov.au/book/export/html/16243#ref-cspol_part5_ftn494
[8] https://clik.dva.gov.au/user/login?destination=node/16261%23comment-form
[9] https://clik.dva.gov.au/book/export/html/16243#tgt-cspol_part5_ftn495
[10] https://clik.dva.gov.au/book/export/html/16243#tgt-cspol_part5_ftn496
[11] clik://LEGIS/VEA/section 5GA
[12] https://clik.dva.gov.au/book/export/html/16243#ref-cspol_part5_ftn495
[13] https://clik.dva.gov.au/csrefprcurr
[14] https://clik.dva.gov.au/book/export/html/16243#ref-cspol_part5_ftn496
[15] https://clik.dva.gov.au/user/login?destination=node/16281%23comment-form
[16] clikpopup://DEF/Service pension/er/SP
[17] https://clik.dva.gov.au/book/export/html/16243#tgt-cspol_part5_ftn497
[18] https://clik.dva.gov.au/book/export/html/16243#tgt-cspol_part5_ftn498
[19] https://clik.dva.gov.au/book/export/html/16243#ref-cspol_part5_ftn497
[20] https://clik.dva.gov.au/compensation-and-support-policy-library/part-11-administration-payments/114-portability
[21] https://clik.dva.gov.au/book/export/html/16243#ref-cspol_part5_ftn498
[22] https://clik.dva.gov.au/user/login?destination=node/16191%23comment-form
[23] https://clik.dva.gov.au/book/export/html/16243#tgt-cspol_part5_ftn499
[24] clikpopup://DEF/Income Test
[25] clikpopup://DEF/Assets Test
[26] https://clik.dva.gov.au/book/export/html/16243#tgt-cspol_part5_ftn500
[27] https://clik.dva.gov.au/legislation-library
[28] https://clik.dva.gov.au/book/export/html/16243#ref-cspol_part5_ftn499
[29] https://clik.dva.gov.au/book/export/html/16243#ref-cspol_part5_ftn500
[30] https://clik.dva.gov.au/user/login?destination=node/16175%23comment-form
[31] clikpopup://DEF/Pension supplement
[32] clikpopup://DEF/Income support pension
[33] https://clik.dva.gov.au/book/export/html/16243#tgt-cspol_part5_ftn501
[34] https://clik.dva.gov.au/book/export/html/16243#tgt-cspol_part5_ftn502
[35] https://clik.dva.gov.au/book/export/html/16243#tgt-cspol_part5_ftn503
[36] https://clik.dva.gov.au/book/export/html/16243#tgt-cspol_part5_ftn504
[37] https://clik.dva.gov.au/book/export/html/16243#tgt-cspol_part5_ftn505
[38] https://clik.dva.gov.au/book/export/html/16243#tgt-cspol_part5_ftn506
[39] https://clik.dva.gov.au/book/export/html/16243#ref-cspol_part5_ftn501
[40] https://clik.dva.gov.au/book/export/html/16243#ref-cspol_part5_ftn502
[41] https://clik.dva.gov.au/book/export/html/16243#ref-cspol_part5_ftn503
[42] https://clik.dva.gov.au/book/export/html/16243#ref-cspol_part5_ftn504
[43] https://clik.dva.gov.au/book/export/html/16243#ref-cspol_part5_ftn505
[44] https://clik.dva.gov.au/compensation-and-support-policy-library/part-12-compliance-and-obligations/126-overpayments
[45] https://clik.dva.gov.au/book/export/html/16243#ref-cspol_part5_ftn506