This chapter contains information on immediate financial assistance called crisis payments to people in severe financial hardship and suffering from extreme circumstances or release from lawful custody.
The Veterans' Entitlements (Special Assistance) Regulations 1999 [2], were created under the special assistance provisions in s106 [3] of the Veterans' Entitlements Act 1986, to authorise payment of a crisis payment. The Regulations, approved by the Repatriation Commission [4], set out the prescribed conditions.
Crisis Payment
Chapter 3.3 Service Pension and Income Support Supplement Payability [5]
Chapter 9.1 Income and Assets Test Principles [6]
Chapter 9.2 Residential Situation [7]
Last updated 5 March 2013
A crisis payment is immediate financial assistance to people in severe financial hardship [11] and suffering from extreme circumstances, domestic or family violence [11], or release from lawful custody. The payment is designed to assist them in establishing a new residence following specifically defined extreme circumstances or release from lawful custody, or to re-establish their residence after domestic or family violence has occurred. It is a non-taxable, 'one-off' non-refundable payment.
To receive a crisis payment a person must be in severe financial hardship, receiving or be eligible to receive certain income support payment [11]s (excluding Veteran Payment) from DVA, and meet one of the qualifying circumstances:
More ? [12]
A person is not eligible if:
There is a limit of four crisis payments payable in a twelve month period which only applies to crisis payments due to extreme circumstances and domestic or family violence. Crisis payments that are made to a person on release from lawful custody do not count towards the maximum of four crisis payments due to extreme circumstances or domestic or family violence in a twelve month period.
A person serves two short prison terms and receives crisis payment on release from prison each time. The person also suffers extreme circumstances due to the house being damaged by fire, then later by flood, and receives crisis payment for each extreme circumstance. The person is then made the subject of an apprehended violence order and must leave the home. The person is eligible for crisis payment again, as the maximum of four crisis payments due to extreme circumstances or domestic or family violence has not yet been reached. Over the twelve month period, the person has received a total of five crisis payments – two on release from lawful custody, and three due to extreme circumstances.
A person is subjected to domestic or family violence three times during a twelve month period, receiving a crisis payment each time the perpetrator is removed from the home. The person then suffers extreme circumstances due to the house being damaged by fire, and receives another crisis payment as they are forced to leave the home. The person is then subjected to domestic or family violence again, within the same twelve month period. As the person has already received four crisis payments due to domestic or family violence or extreme circumstances within a twelve month period, they are not eligible for a crisis payment for the fifth incident. The person then serves a short prison term. On release, they are eligible for a crisis payment even though they have already received four payments in the twelve month period, as there is no limit on the number of crisis payments payable on release from lawful custody.
A claim for a crisis payment must be on a form approved by the Commission [11]. An informal claim must be followed by a proper claim [11] within fourteen days. The rate of crisis payment is a flat rate of one week's pension based upon the maximum basic rate [11] of pension, pension supplement and clean energy supplement [11].
More ? [16]
VEA ? [17]
The Veterans' Entitlements (Special Assistance) Regulations 1999, were created under s106 [3] of the Veterans' Entitlements Act 1986 (Special Assistance), to authorise payment of a crisis payment. The Regulations, approved by the Repatriation Commission [11], set out the prescribed conditions.
More ? [18]
Veterans' Entitlements (Special Assistance) Regulations 1999
http://www.comlaw.gov.au/comlaw/management.nsf/lookupindexpagesbyid/IP200400983?OpenDocument [30]
In general terms, this is where someone is suffering from serious money difficulties, such as insufficient income to manage their basic living expenses. More detailed descriptions of various financial hardship situations are covered under the following topics:
Domestic or family violence is described by a variety of terms, including but not restricted to:
Means a payment of:
service pension [11],
social security pensions [11],
social security benefit [11],
Veteran payment.
According to section 5L of the VEA [33]a family member, in relation to a person, means:
Please note, the definition of a parent is further defined in section 10A of the VEA [33].
Lawful custody is detention of a person in prison, or in psychiatric confinement because they have been charged with an offence.
According to Section 179 [32]of the VEA [32], the Commission is a body corporate under the name of Repatriation Commission.
A claim which the legislation requires to be made on a 'form approved by the Commission' or 'in accordance with a form approved by the Commission' means that the claim must meet certain requirements, e.g. must be in writing, provide specific information, or evidence to support the claim. It does not mean the claim needs to be made on a special or official DVA form. However, where a DVA form is available it is preferable that it be used to ensure that all the information required for a proper claim to be made is provided.
To be a proper claim, the claim must be:
According to Schedule 6-B1 of the VEA [33] 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).
The energy supplement is a fortnightly or quarterly payment designed to help recipients meet the cost of electricity and gas bills.
According to Section 179 [32]of the VEA [32], the Commission is a body corporate under the name of Repatriation Commission.
Last updated 21 December 2006
To be eligible for a crisis payment [11] a person must be in severe financial hardship [11]. That is, the person's liquid assets are less than:
Liquid assets are cash and readily available funds and include, but are not restricted to, assets such as:
Note: Liquid assets do not include a qualifying eligible termination payment as defined in the Income Tax Assessment Act 1936.
The maximum payment rate is inclusive of the basic rate of pension and associated allowances before the income and assets tests are applied but excludes remote area allowance [11]. For income support supplement [11] recipients the ceiling rate [11] does not apply.
Note: The 'maximum payment rate' for the assessment of severe financial hardship is different to the 'maximum basic rate' on which the crisis payment rate is based.
A crisis payment is a one-off non-taxable payment to extend immediate financial assistance to people in severe financial hardship who:
In general terms, this is where someone is suffering from serious money difficulties, such as insufficient income to manage their basic living expenses. More detailed descriptions of various financial hardship situations are covered under the following topics:
Income support pension is:
The term not a member of a couple covers all persons who are not covered by the definitions of member of a couple [11].
According to Section 5E(2) [33]of the VEA [33]a person is a member of a couple, if they are:
The term “partnered” is also commonly used.
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.
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.
A person applying for a crisis payment [11] due to extreme circumstances must fulfil the following eligibility criteria:
Extreme circumstances fall into two categories:
Legal reasons may be considered to be an extreme circumstance where the person has been removed from their home and is unable to remain in or return to the home. This includes where a person is subject to an apprehended violence order (AVO) or restraining order preventing the person from remaining in or returning to the home.
Where an order is issued for only a short period (e.g. two days), the person may still be eligible for crisis payment. The issuing of an order even for a short period is an indicator that extreme circumstances are present. While the order may no longer prevent the person from remaining in or returning to their home, the person may still decide not to return. Crisis payment eligibility in this case reflects the need for the parties to live separately to avoid further violence.
Whenever the person is subject to an order, eligibility for crisis payment requires that the person lived in the home immediately prior to being removed and subjected to the order, and that they have established or intend to establish a new home.
Other extreme circumstances are situations where people are forced to leave their home as a result of the person's home being considered uninhabitable for five or more days after the extreme circumstance has occurred. Examples of other extreme circumstances include, but are not restricted to:
Extreme circumstance... |
And... |
A crisis payment is not payable because... |
|
If a person is subjected to domestic or family violence |
the person intends to leave home and permanently/establish a new home |
the person has not left their home. |
|
If a person leaves their home |
there is no evidence of domestic or family violence, and the person intends to establish/has established a new home |
there is no extreme circumstance precipitating the person's departure from the home. |
|
If a person is forced to leave their home |
a disaster relief payment or State Government assistance has been paid to the person |
other assistance has been paid to the person. |
|
If a person is forced to leave their home. |
four crisis payments for extreme circumstances or domestic or family violence have been paid to the person within the twelve months prior to the date of this claim |
the maximum of four payments for extreme circumstances or domestic or family violence in a twelve month period has been reached. |
|
If a person is forced to leave their home |
the person has been evicted |
the person is not the victim of an extreme circumstance outside of their control. |
|
A crisis payment is a one-off non-taxable payment to extend immediate financial assistance to people in severe financial hardship who:
In general terms, this is where someone is suffering from serious money difficulties, such as insufficient income to manage their basic living expenses. More detailed descriptions of various financial hardship situations are covered under the following topics:
Income support pension is:
Domestic or family violence is described by a variety of terms, including but not restricted to:
Last updated 21 December 2006
Crisis payment [11] for a person who remains in the family home after being subjected to domestic or family violence [11] is intended to assist with minor repairs to the home e.g. replacing or re-keying locks, or repairing or replacing essential household items.
A person applying for a crisis payment due to domestic or family violence must fulfil the following eligibility criteria:
Note: A person will not be eligible for a crisis payment for domestic or family violence if the Commission [11] is satisfied that the perpetrator of the violence left the person's home with a view to enabling the person to obtain a crisis payment.
It is possible for a crisis payment due to domestic or family violence to be paid to more than one person, provided all other eligibility criteria are met.
A person and their elderly mother who lives with them are subjected to domestic violence by the partner of the person in the family home. The partner is removed by the police and an apprehended violence order (AVO) is issued, meaning that the partner is not able to return to the home. Provided all other criteria are met, both the person and their mother are able to claim a crisis payment for the same incident. The partner who has been removed is also able to claim crisis payment for extreme circumstances causing departure from the home. The person's father, who also lives in the home, was not present at the time of the incident, therefore is not eligible to claim a crisis payment.
A crisis payment is a one-off non-taxable payment to extend immediate financial assistance to people in severe financial hardship who:
Domestic or family violence is described by a variety of terms, including but not restricted to:
According to section 5L of the VEA [33]a family member, in relation to a person, means:
Please note, the definition of a parent is further defined in section 10A of the VEA [33].
In general terms, this is where someone is suffering from serious money difficulties, such as insufficient income to manage their basic living expenses. More detailed descriptions of various financial hardship situations are covered under the following topics:
Income support pension is:
According to Section 179 [32]of the VEA [32], the Commission is a body corporate under the name of Repatriation Commission.
Last updated 21 December 2006
Crisis payment [11] is available to people released from [glossary:lawful cu:] — [glossary:stody:] [38], either prison or psychiatric confinement, and who are in severe financial hardship [11].
A person applying for a crisis payment due to prison/psychiatric release must fulfil the following eligibility criteria:
A person who lives in a psychiatric facility will only be considered for a crisis payment if they have been in lawful custody [11] for fourteen days or more and fulfil the other eligibility criteria. In all other circumstances i.e. where the person has not been charged with an offence, departure from that facility would have to have been the result of extreme circumstances.
Prison release... |
And... |
A crisis payment is payable because... |
A person is released from either prison or psychiatric confinement qualified to receive an income support pension |
the person has been in prison for fourteen days and has liquid assets of less than a fortnight's pension entitlement |
the person has been in prison for at least fourteen days and is in severe financial hardship. |
A person is released from either prison or psychiatric confinement qualified to receive an income support pension |
the person has served forty days in prison and has no liquid assets, but is starting employment on the third day after their release |
the person is eligible for payment of service pension at the time of their release at least until they start work. |
Prison release... |
And... |
A crisis payment is not payable because... |
A person is released from prison |
the person has been in prison for ten days and has no liquid assets |
the person has not served at least fourteen days in prison. However, as the person is making an initial claim, the person may be entitled to an advance of their first instalment under severe financial hardship provisions. |
A person is released from prison |
the person has served twenty eight days in prison and has liquid assets equivalent to a fortnight's pension entitlement |
the person is not considered to be in severe financial hardship as their liquid assets are not less than a fortnight's entitlement. |
If a person is released from either prison or psychiatric confinement |
the person has served thirty days in prison and has no liquid assets, but is returning to their previous employment the day after their release |
the person is employed and is not qualified for an income support payment. |
A crisis payment is a one-off non-taxable payment to extend immediate financial assistance to people in severe financial hardship who:
In general terms, this is where someone is suffering from serious money difficulties, such as insufficient income to manage their basic living expenses. More detailed descriptions of various financial hardship situations are covered under the following topics:
Income support pension is:
Lawful custody is detention of a person in prison, or in psychiatric confinement because they have been charged with an offence.
Last updated 5 March 2013
A claim for a crisis payment [11] must be:
An informal claim for crisis payment can be lodged by a person who is in Australia and eligible for a crisis payment on the day of claim or informal claim. An informal claim must be followed by a proper claim [11] within fourteen days.
The rate of crisis payment is a flat rate of one week's pension based upon the maximum basic rate [11] of pension, pension supplement and energy supplement [11]. Therefore, the amount of a crisis payment is half the fortnightly service pension rate. For income support supplement recipients, their payment is not based upon the ceiling rate [11] but rather upon the relevant rate of service pension, according to whether they are partnered or single.
Payment of the crisis payment should be paid into a financial institution [11] but the payment can be paid in another manner (e.g. by cheque) where this is directed by a delegate of the Commission [11] authorising the payment.
30/06/08 — Page 1
A crisis payment is a one-off non-taxable payment to extend immediate financial assistance to people in severe financial hardship who:
Domestic or family violence is described by a variety of terms, including but not restricted to:
To be a proper claim, the claim must be:
According to Schedule 6-B1 of the VEA [33] 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).
The energy supplement is a fortnightly or quarterly payment designed to help recipients meet the cost of electricity and gas bills.
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.
Examples of a financial institution are a bank, building society or credit union.
According to Section 179 [32]of the VEA [32], the Commission is a body corporate under the name of Repatriation Commission.
Links
[1] https://clik.dva.gov.au/user/login?destination=node/16820%23comment-form
[2] http://www.legislation.gov.au/Series/F1999B00326
[3] https://clik.dva.gov.au/service-eligibility-assistant-updates/all-determinations-order-date-signed-oldest-most-recent/determinations-under-vea
[4] http://auth-clik.dvastaff.dva.gov.au/%23
[5] https://clik.dva.gov.au/compensation-and-support-policy-library/part-3-income-support-eligibility/33-service-pension-and-income-support-supplement-payability
[6] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/91-income-and-assets-test-principles
[7] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/92-residential-situation
[8] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/93-relationship-status
[9] https://clik.dva.gov.au/compensation-and-support-policy-library/part-11-administration-payments/117-imprisonment
[10] https://clik.dva.gov.au/user/login?destination=node/16818%23comment-form
[11] https://clik.dva.gov.au/%23
[12] https://clik.dva.gov.au/book/export/html/16820#tgt-cspol_part3_ftn325
[13] https://clik.dva.gov.au/book/export/html/16820#tgt-cspol_part3_ftn326
[14] https://clik.dva.gov.au/book/export/html/16820#tgt-cspol_part3_ftn327
[15] https://clik.dva.gov.au/book/export/html/16820#tgt-cspol_part3_ftn328
[16] https://clik.dva.gov.au/book/export/html/16820#tgt-cspol_part3_ftn329
[17] https://clik.dva.gov.au/book/export/html/16820#tgt-cspol_part3_ftn330
[18] https://clik.dva.gov.au/book/export/html/16820#tgt-cspol_part3_ftn331
[19] https://clik.dva.gov.au/compensation-and-support-policy-library/part-3-income-support-eligibility/312-crisis-payment/3122-eligibility-crisis-payment
[20] https://clik.dva.gov.au/book/export/html/16820#ref-cspol_part3_ftn325
[21] https://clik.dva.gov.au/compensation-and-support-policy-library/part-3-income-support-eligibility/312-crisis-payment/3123-extreme-circumstances-causing-departure-home
[22] https://clik.dva.gov.au/book/export/html/16820#ref-cspol_part3_ftn326
[23] https://clik.dva.gov.au/compensation-and-support-policy-library/part-3-income-support-eligibility/312-crisis-payment/3124-domestic-or-family-violence-remaining-home
[24] https://clik.dva.gov.au/book/export/html/16820#ref-cspol_part3_ftn327
[25] https://clik.dva.gov.au/compensation-and-support-policy-library/part-3-income-support-eligibility/312-crisis-payment/3125-release-lawful-custody
[26] https://clik.dva.gov.au/book/export/html/16820#ref-cspol_part3_ftn328
[27] https://clik.dva.gov.au/compensation-and-support-policy-library/part-3-income-support-eligibility/312-crisis-payment/3126-claim-and-payment-crisis-payment
[28] https://clik.dva.gov.au/book/export/html/16820#ref-cspol_part3_ftn329
[29] https://clik.dva.gov.au/book/export/html/16820#ref-cspol_part3_ftn330
[30] http://www.comlaw.gov.au/comlaw/management.nsf/lookupindexpagesbyid/IP200400983?OpenDocument
[31] https://clik.dva.gov.au/book/export/html/16820#ref-cspol_part3_ftn331
[32] http://clik.dva.gov.au/legislation-library
[33] http://www.comlaw.gov.au/Series/C2004A03268
[34] https://clik.dva.gov.au/user/login?destination=node/16842%23comment-form
[35] https://clik.dva.gov.au/user/login?destination=node/16890%23comment-form
[36] https://clik.dva.gov.au/user/login?destination=node/16835%23comment-form
[37] https://clik.dva.gov.au/user/login?destination=node/16861%23comment-form
[38] clikpopup://DEF/Lawful Custody
[39] https://clik.dva.gov.au/user/login?destination=node/16845%23comment-form