Last amended: 1 July 2013
VEA ? [2]
A person is eligible for invalidity service pension if the person:
Note: The veteran does not need to be pension age [3] and the incapacity does not need to be related to their service.
The eligibility criteria for invalidity service pension were amended effective from 1 January 2000. Eligible veterans who were in payment immediately prior to this date retain their eligibility under the old criteria (85% permanent incapacity). This savings provision is provided for in the Veterans' Affairs Legislation (Permanent Incapacity – Transitional) Regulations 1999 No. 358 [8].
Although a person may meet the eligibility criteria for invalidity service pension, such a person will not be granted invalidity service pension unless they lodge a proper claim [3].
More ? [9]
A veteran may not claim invalidity service pension if the veteran has reached age 65.
There are a number of situations where a person may be eligible for invalidity service pension, but not payable. For example:
A war widow or war widower [3] who is also a veteran, may be paid invalidity service pension if they meet the eligibility criteria. However, the rate of that pension may be limited to a ceiling.
More ? [11]
Invalidity service pension is not subject to income tax when paid to a pensioner who is under age pension age [3]. When an invalidity service pensioner reaches age pension age [3], the pension becomes taxable.
More ? [12]
VEA ? [13]
VVRS [3] assists invalidity service pensioners and other eligible veterans to find, or continue in, suitable paid employment. Whilst participating in VVRS, invalidity service pensioners receive the income protection benefits of the scheme and retain section 37 invalidity service pension eligibility.
More ? [14]
If the pensioner receives (or is eligible to receive) compensation payments for economic loss, such as incapacity payments, the compensation recovery rules may apply. Compensation recovery will reduce ongoing invalidity service pension payability or, if a lump sum compensation payment is received, will prevent payment of invalidity service pension for a calculated period of time known as the lump sum preclusion period.
More ? [15]
Former members who are eligible for Special Rate Disability Pension (SRDP) under the MRCA are taken to satisfy the permanent incapacity for work eligibility test for invalidity service pension. SRDP is an ongoing payment that can be made to a former member in lieu of incapacity payments. The maximum weekly amount of SRDP under the MRCA is one half of the fortnightly rate of Special Rate pension under the VEA.
More ? [16]
SRDP is exempt from the income test when assessing whether invalidity service pension may be payable. In contrast, incapacity payments paid under the MRCA are regarded as assessable income.
VEA ? [17]
SRDP payments under MRCA are offset to the extent that permanent impairment payments have already been made to the pensioner under the VEA, SRCA or MRCA. Where Commonwealth superannuation is also received, then the remaining SRDP payment is further offset at 60 cents in the dollar. The amount of superannuation that is applied to offset the SRDP payment (to nil payment, but not below nil rate) at the offset rate of 60 cents in the dollar is not assessable as income, for invalidity service pension purposes. Any remaining superannuation after the offset calculation is applied is assessable as income. An example calculation is included in the MRCA Policy Manual, at Chapter 13.8 Invalidity Service Pension.
More ? [18]
The offset Commonwealth superannuation amount is known as the Special Rate Disability Pension reduction amount
It is not assessed as it is an excluded income amount for VEA income support purposes.
An Excel spreadsheet which assists in calculating the SRDP Commonwealth Superannuation Corporation (CSC) reduction, to determine the assessable and excluded amounts of Commonwealth superannuation for income support purposes, is available on the Income Support Intranet web-page.
More ? [19]
VEA ? [20]
Restrictions exist on the payment of dual pensions.
More ? [21]
An invalidity service pensioner may transfer to age service pension where the age requirement is met, and where the test of being permanently incapacitated for work is no longer satisfied. Transferring between invalidity service pension and age service pension may be initiated by a pensioner providing medical evidence of fitness to work, or where there is evidence that the veteran has commenced working for periods adding up to more than 8 hours per week.
Legislation Library
Veterans' Vocational Rehabilitation Scheme - Operational Guidelines
Calculating the SRDP Commonwealth Superannuation Corporation (CSC) reduction amounts - TRIM reference 11185018E
http://sharepoint/servingourcustomers/incomesupport/Documents/BL_DI/2011-2012/11185018E.tr5 [50]
For the purposes of Part VI of the VEA [55], a reference to a veteran is taken to be a reference to:
For the purposes of Part VII of the VEA [55], according to subsection 5C(1), veteran means a person (including a deceased person):
Qualifying service is one of the criteria used to determine eligibility for certain benefits under the Veterans' Entitlements Act 1986. Refer to section 7A of the VEA [55] for the full defintion.
Permanent incapacity has two meanings depending on the context: (i) and (ii).
(i) for the purpose of invalidity service pension
pre 1/1/2000
The test of permanent incapacity for invalidity service pension [3] changed with effect from 1/1/2000. Prior to this date, a person was considered to be permanently incapacitated for work if the:
This prior test of permanent incapacity continues to apply (is saved) for persons who were receiving (or who had claimed) the invalidity payment prior to 1/1/2000.
post 1/1/2000
A person claiming service pension is permanently incapacitated for work for paragraph 37(1) (c) of the if the person:
A person satisfies this subsection if:
(ii) for the purpose of invalidity ISS
pre 1/1/2000
The test of permanent incapacity for invalidity ISS [3] changed with effect from 1/1/2000. Prior to this date, a person was considered to be permanently incapacitated for work if the:
This prior test of permanent incapacity continues to apply (is saved) for persons who were receiving (or who had claimed) the invalidity payment prior to 1/1/2000.
post 1/1/2000
A person claiming ISS is permanently incapacitated for work if:
A Commonwealth veteran is a person who served on a continuous full time basis in the defence forces of a Commonwealth country during a period of hostilities. Refer to subsection 5C(1) [55]of the VEA [55] for the full definition.
An allied veteran means a person who:
An allied veteran does not include a person who has served at any time:
See section 5c(1) [61] VEA
Currently, the pension age for a veteran is 60 years of age (VEA 5QA).
The pension age for a non-veteran is determined by the table below:
Date of birth (both dates inclusive) | Age Pension age |
1 July 1952 to 31 December 1953 | 65 years and 6 months |
1 January 1954 to 30 June 1955 | 66 years |
1 July 1955 to 31 December 1956 | 66 years and 6 months |
On or after 1 January 1957 | 67 years |
To be a proper claim, the claim must be:
A war widow/widower is generally a person who immediately before their partners death, was the partner of, or was legally married to:
Refer to 5E(1) [62] of the VEA for the full definition.
Age Pension Age refers to pension age [3] as defined under the Social Security Act 1991, that is, pension age for people other than veterans.
Age Pension Age refers to pension age [3] as defined under the Social Security Act 1991, that is, pension age for people other than veterans.
The Veterans' Vocational Rehabilitation Scheme (VVRS) was established in December 1997 to assist eligible veterans to find, or continue in, suitable paid employment, with particular emphasis on:
Participation in the scheme is voluntary and there are no penalties for withdrawal from, or failure to complete, an approved program. DVA will engage a VVRS contracted service provider that will assign a rehabilitation case manager to oversee the rehabilitation process for the Department. The VVRS contracted Case Manager will undertake a full rehabilitation assessment which will identify the client's vocational needs.
Links
[1] https://clik.dva.gov.au/user/login?destination=node/16879%23comment-form
[2] https://clik.dva.gov.au/book/export/html/16879#tgt-cspol_part3_ftn23
[3] https://clik.dva.gov.au/%23
[4] https://clik.dva.gov.au/book/export/html/16879#tgt-cspol_part3_ftn24
[5] https://clik.dva.gov.au/book/export/html/16879#tgt-cspol_part3_ftn25
[6] https://clik.dva.gov.au/book/export/html/16879#tgt-cspol_part3_ftn26
[7] https://clik.dva.gov.au/book/export/html/16879#tgt-cspol_part3_ftn27
[8] https://clik.dva.gov.au/legislation-library
[9] https://clik.dva.gov.au/book/export/html/16879#tgt-cspol_part3_ftn28
[10] https://clik.dva.gov.au/book/export/html/16879#tgt-cspol_part3_ftn29
[11] https://clik.dva.gov.au/book/export/html/16879#tgt-cspol_part3_ftn30
[12] https://clik.dva.gov.au/book/export/html/16879#tgt-cspol_part3_ftn31
[13] https://clik.dva.gov.au/book/export/html/16879#tgt-cspol_part3_ftn32
[14] https://clik.dva.gov.au/book/export/html/16879#tgt-cspol_part3_ftn33
[15] https://clik.dva.gov.au/book/export/html/16879#tgt-cspol_part3_ftn34
[16] https://clik.dva.gov.au/book/export/html/16879#tgt-cspol_part3_ftn35
[17] https://clik.dva.gov.au/book/export/html/16879#tgt-cspol_part3_ftn36
[18] https://clik.dva.gov.au/book/export/html/16879#tgt-cspol_part3_ftn37
[19] https://clik.dva.gov.au/book/export/html/16879#tgt-cspol_part3_ftn38
[20] https://clik.dva.gov.au/book/export/html/16879#tgt-cspol_part3_ftn39
[21] https://clik.dva.gov.au/book/export/html/16879#tgt-cspol_part3_ftn40
[22] https://clik.dva.gov.au/service-eligibility-assistant-updates/all-determinations-order-date-signed-oldest-most-recent/determinations-under-vea
[23] https://clik.dva.gov.au/book/export/html/16879#ref-cspol_part3_ftn23
[24] https://clik.dva.gov.au/compensation-and-support-policy-library/part-1-service-requirements/11-veterans
[25] https://clik.dva.gov.au/book/export/html/16879#ref-cspol_part3_ftn24
[26] https://clik.dva.gov.au/compensation-and-support-policy-library/part-1-service-requirements/12-service-types
[27] https://clik.dva.gov.au/book/export/html/16879#ref-cspol_part3_ftn25
[28] https://clik.dva.gov.au/compensation-and-support-policy-library/part-3-income-support-eligibility/36-permanent-incapacity
[29] https://clik.dva.gov.au/book/export/html/16879#ref-cspol_part3_ftn26
[30] https://clik.dva.gov.au/compensation-and-support-policy-library/part-1-service-requirements/11-veterans/114-merchant-mariners/allied-merchant-mariners
[31] https://clik.dva.gov.au/compensation-and-support-policy-library/part-3-income-support-eligibility/35-residency/352-periods-residency
[32] https://clik.dva.gov.au/book/export/html/16879#ref-cspol_part3_ftn27
[33] https://clik.dva.gov.au/compensation-and-support-policy-library/part-2-applying-pension/21-claims
[34] https://clik.dva.gov.au/book/export/html/16879#ref-cspol_part3_ftn28
[35] https://clik.dva.gov.au/compensation-and-support-policy-library/part-3-income-support-eligibility/33-service-pension-and-income-support-supplement-payability
[36] https://clik.dva.gov.au/book/export/html/16879#ref-cspol_part3_ftn29
[37] https://clik.dva.gov.au/book/export/html/16879#ref-cspol_part3_ftn30
[38] https://clik.dva.gov.au/compensation-and-support-policy-library/part-11-administration-payments/116-taxation
[39] https://clik.dva.gov.au/book/export/html/16879#ref-cspol_part3_ftn31
[40] https://clik.dva.gov.au/book/export/html/16879#ref-cspol_part3_ftn32
[41] https://clik.dva.gov.au/compensation-and-support-policy-library/part-3-income-support-eligibility/36-permanent-incapacity/364-assessment-invalidity-service-pensioners-participating-veterans-vocational-rehabilitation-scheme-vvrs
[42] https://clik.dva.gov.au/book/export/html/16879#ref-cspol_part3_ftn33
[43] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/911-compensation-recovery
[44] https://clik.dva.gov.au/book/export/html/16879#ref-cspol_part3_ftn34
[45] https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-13-special-rate-disability-pension
[46] https://clik.dva.gov.au/book/export/html/16879#ref-cspol_part3_ftn35
[47] https://clik.dva.gov.au/book/export/html/16879#ref-cspol_part3_ftn36
[48] https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-13-special-rate-disability-pension/1309-invalidity-service-pension
[49] https://clik.dva.gov.au/book/export/html/16879#ref-cspol_part3_ftn37
[50] http://sharepoint/servingourcustomers/incomesupport/Documents/BL_DI/2011-2012/11185018E.tr5
[51] https://clik.dva.gov.au/book/export/html/16879#ref-cspol_part3_ftn38
[52] https://clik.dva.gov.au/book/export/html/16879#ref-cspol_part3_ftn39
[53] https://clik.dva.gov.au/compensation-and-support-policy-library/part-3-income-support-eligibility/38-restrictions-dual-pensions
[54] https://clik.dva.gov.au/book/export/html/16879#ref-cspol_part3_ftn40
[55] http://clik.dva.gov.au/legislation-library
[56] clikpopup://DEF/Member%20of%20the%20Defence%20Force
[57] clikpopup://DEF/Allied%20country
[58] clikpopup://DEF/Continuous%20full-time%20service
[59] clikpopup://DEF/Period%20of%20hostilities
[60] clikpopup://DEF/War%20like%20operations
[61] http://clik.dva.gov.au/node/32981
[62] http://www.comlaw.gov.au/Details/C2015C00011
[63] http://clik/legislation-library