The following payments that are made by DVA are considered to be compensation, and are not taxable:
Payments of the following allowances, where eligibility arises from a veterans' compensation payment, are non-taxable:
Education allowance paid in respect of a child who has not attained 16 years of age is not taxable.
More → [5]
Compensation Allowances and Benefits
Chapter 6.2 Attendant allowance [6]
Chapter 6.3 Temporary incapacity allowance [7]
Chapter 6.5 Recreation Transport Allowance [8]
Chapter 6.6 Loss of earnings allowance [9]
Chapter 6.7 Clothing allowance [10]
Chapter 6.8 Decoration and Victoria Cross allowance [11]
Disability compensation payment (known before 2022 as disability pension), for the purposes of service pension, income support supplement and veteran payment, means:
Please note that the Disability Compensation Payment is legally a pension by way of compensation under the VEA so that concessional benefits under state, territory and local government legislation to pensioners/pensions under the VEA are not denied.
A form of pension that is paid to the partner of a veteran where the veteran has died as a result of war service or eligible Defence Service [2]. War widow's/widower's pension is also paid to the partner of a veteran whose death was not war caused if the veteran was a ex-prisoner of war or if the veteran was receiving Extreme Disablement Adjustment (EDA) Rate [2], Special Rate (T&PI) [2] or a rate increased in respect of certain war-caused injury or disease.
A form of pension that is paid to a child of a veteran where the veteran has died as a result of war service [2] or defence service [2]. The child may be the natural or adopted child of the veteran or any other child who was wholly or substantially dependent [2] on the veteran.
The widow or widower of the deceased veteran who was immediately before their death:
is entitled, in respect of the period of 12 weeks after the deceased veteran's death, to payment at:
whichever is lower. Refer to subsection 98A [15] of the VEA for the full definition.
The veterans supplement was introduced on 20 September 2009 as part of the Government's Secure and Sustainable Pension Reform package. It is a fortnightly payment that replaces pharmaceutical allowance [2] and/or telephone allowance [2] for compensation recipients who are not in receipt of an income support supplement [2]. There are two rates, the veterans supplement low rate and the veterans supplement high rate. The low rate replaces one of the allowances and the high rate replaces both. The low rate is indexed every January to the Consumer Price Index [2] (CPI). The high rate is always twice the amount of the low rate.
The purpose of attendant allowance is to assist eligible Veterans [16], Members of the Forces [17], or a Member of a Peacekeeping Force [18]with the cost of an attendant to help with such things as feeding, bathing, dressing and other activities of daily living. The allowance is paid to the veteran and not the attendant.
To be eligible for attendant allowance the person must be in receipt of a Disability Compensation Payment [2] for Incapacity [19]for a war-caused or defence-caused injury or Disease [20]that severely affects a persons' ability to care for themselves. Attendant allowance is payable at a higher or a lower rate depending on the type of Injury [21]or disease accepted under the Veterans' Entitlements Act.
According to subsection 5D(2), incapacity from a war or defence-caused disease or injury is a reference to the effects of that injury or disease, and not a reference to the injury or disease itself.
Loss of earnings allowance can be paid where a veteran [2] or a member of the forces [2], member of a peacekeeping force [2] or Australian Mariner [2] is employed and has lost salary due to:
Links
[1] https://clik.dva.gov.au/user/login?destination=node/16910%23comment-form
[2] https://clik.dva.gov.au/%23
[3] clikpopup://DEF/Incapacity
[4] https://clik.dva.gov.au/book/export/html/16910#tgt-cspol_part11_ftn177
[5] https://clik.dva.gov.au/book/export/html/16910#tgt-cspol_part11_ftn178
[6] https://clik.dva.gov.au/compensation-and-support-policy-library/part-6-veterans-compensation-allowances-and-benefits/62-attendant-allowance
[7] https://clik.dva.gov.au/compensation-and-support-policy-library/part-6-veterans-compensation-allowances-and-benefits/63-temporary-incapacity-allowance
[8] https://clik.dva.gov.au/compensation-and-support-policy-library/part-6-veterans-compensation-allowances-and-benefits/65-recreation-transport-allowance
[9] https://clik.dva.gov.au/compensation-and-support-policy-library/part-6-veterans-compensation-allowances-and-benefits/66-loss-earnings-allowance
[10] https://clik.dva.gov.au/compensation-and-support-policy-library/part-6-veterans-compensation-allowances-and-benefits/67-clothing-allowance
[11] https://clik.dva.gov.au/compensation-and-support-policy-library/part-6-veterans-compensation-allowances-and-benefits/68-decoration-and-victoria-cross-allowances
[12] https://clik.dva.gov.au/book/export/html/16910#ref-cspol_part11_ftn177
[13] https://clik.dva.gov.au/compensation-and-support-policy-library/part-11-administration-payments/116-taxation/1162-taxable-payments
[14] https://clik.dva.gov.au/book/export/html/16910#ref-cspol_part11_ftn178
[15] http://www.comlaw.gov.au/Series/C2004A03268
[16] http://clik/glossary/veteran
[17] http://clik/glossary/member-forces
[18] http://clik/glossary/members-peacekeeping-force
[19] http://clik/glossary/incapacity
[20] http://clik/glossary/disease
[21] http://clik/glossary/injury