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Income Support - Veterans' Entitlements Act 1986 (VEA)

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Age Service Pension

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Last amended 
1 July 2019

Legislative Authority

Veterans' Entitlements Act 1986
Section 7A (qualifying service)
Section
36 (eligibility)
Section 36A to 36M (claims)
Section 36N (rate)
Schedule 6 (calculation of rates)

Stated Current Purpose/Intent

To provide income support for Australian veterans and mariners, Commonwealth veterans and mariners, and allied veterans and mariners, in recognition of the effects of eligible service (see Note).

Age service pension is similar in many ways to the age pension paid by Department of Human Services but is available five years earlier.

Current Eligibility Criteria

A person is eligible for an age service pension if the person:

  • is a veteran or mariner;
  • has rendered qualifying service (as set out in section 7A of the VEA); and
  • has turned 60 years of age.

In addition to the above a Commonwealth veteran or mariner, or allied veteran or mariner (generally) must have been an Australian resident for at least 10 years, or a refugee who holds a permanent entry permit or visa and is a permanent resident.

Note

Service pension is an income support payment and as such is subject to the income and assets tests, unless the pensioner is blind.

Date of Introduction

The service pension was introduced on 1 January 1936 under the Australian Soldiers' Repatriation Act 1935.  Prior to this, war service disability pensions and a range of other benefits and services were payable from the beginning of World War I by the Australian Government, to compensate war veterans and their dependants for war-caused disablement or death.  These benefits were provided under the War Pensions Act 1914 then by the Australian Soldiers' Repatriation Act 1920 and later by the VEA.  In 2004 members, former members and declared members became eligible for pensions and benefits under the MRCA.

Original Purpose/Intent

To compensate Australian veterans for the indefinable and intangible effects of war service that could lead to premature ageing and the loss of ability to earn a living.

Significant Changes in Criteria or Purpose Since Introduction

Chronology of changes, including those relating to means testing.

1935

Introduction of means test (comprised of an income test and a property test) for service pensions.

1941

Eligibility provisions were extended to include Boer War veterans.

1942

Eligibility provisions were extended to include World War II veterans.

1950

Legislation was amended to include Korean and Malayan War veterans with operational service (later incorporated in the Repatriation (Far East Strategic Reserve) Act 1956).

1960

Free medical treatment benefits were extended to eligible service pensioners.

1964

The single rate of service pension reached parity with war widow's pension (indexable component).

1965

Eligibility for service pension was extended to wives of ex-servicemen.

Wife's service pension was allowed to be continued after the death of a veteran.

Increase to the "standard rate of pension" if a veteran's spouse was in receipt of either unemployment or sickness benefits from the Department of Social Security.

1968

Service pension eligibility was extended to those veterans who had "special service" as defined in the Repatriation (Special Overseas Service) Act 1962.

1970

Service pension was assessed at single rate where the veteran and spouse were permanently separated owing to infirmity.

1972

Wife's service pension rate was made equivalent to a veteran's married rate.

Married rate provision was introduced when veteran's wife was paid by the Department of Social Security.

1973

Age pensions became taxable.

Portability of service pensions was introduced.

25% of war pension (disability pension) disregarded under the income test.  Blind pensioners and pensioners aged 75 or older were exempted from the income test.

1975

Eligibility extended to include veterans of Commonwealth countries, subject to residency requirements.

50% of disability pension disregarded under the income test.  The age at which no means test applied was reduced from 75 to 70 years of age.

1976

Repatriation pension increases became linked with the CPI.

Means test replaced by an income test.  Property test ceases to apply.

1978

Pensioners aged 70 or older remain on the May 1978 rates unless they are entitled to a higher rate under the income test.

1980

Eligibility extended to allied veterans, subject to residency requirements.

1981

60% of disability pension disregarded under the income test.

1982

Eligibility extended to include Australian, Commonwealth and allied mariners, of World War II subject to residency requirements.

100% of disability pension disregarded under the income test.

1983

Special income test introduced for pensioners aged 70 or older.

1985

Assets tests introduced from 14 March 1985 and applies only to pensioners aged less than 70.

1986

Eligibility extended to veterans with bomb or mine clearance service.

1991

Re-write of Part 3 of the VEA (service pension portions).

Basic income limit indexed from July.

Pensioners aged 70 or older become subject to the same income and assets tests as all other pensioners.

1995

Introduction of requirement for certain age service pensioners to test their eligibility for an overseas pension.

The 10 year residency requirement was removed for refugees who hold a permanent entry permit or visa and are permanent residents.

From 1 July 1995 the age at which female veterans can be granted an age service pension is increased by six-monthly increments every two years from 55 to 60 over the period 1995 to 2014.

1996

Lump sum advance of pension introduced.

1997

It was legislated that the single rate of service pension be maintained at least at 25% of all MTAWE.  The relativity between single and married rates of pensions was also retained.

1998

The first MTAWE increase occurred on 26 March 1998.

On 1 July 1998, the Government implemented the Pension Bonus Scheme.  The Pension Bonus Scheme offers pensioners a bonus of 9.4% of pension entitlement paid as a lump sum for each full year of work continued beyond the eligible age pension age, to a maximum of five years.  The purpose of the Scheme is to provide a positive incentive for people to delay retirement.

2000

1 July 2000 taper rate on service pension was reduced from 50 cents in the dollar for income over the free area to 40 cents in the dollar.

2004

Service pension was extended to members, former members and declared members under the MRCA.

2007

20 September 2007, the assets test taper rate reduced to 37.5 cents reduction for each $250 of assets over the free areas.

2009

20 September 2009, the first of the changes introduced following the Harmer Review into the adequacy and sustainability of the pension system. Changes include:

  • the tightening of the income test taper from 40 cents in each dollar of income to 50 cents.
  • Transitional arrangements are in place for those who would otherwise be worse off.
  • Single service pension increased to 66.33% of the combined couples rate.
  • GST Supplement, Pharmaceutical Allowance, Utilities allowance and telephone allowance rolled into a single pension supplement and paid fortnightly with pension.
2010

20 March 2010, combined couples rate of service pension indexed and compared to 41.76% of MTAWE.  Single service pension rate set at 66.33% of combined couples rate.

From 1 July 2010, multiple lump sum advances allowed.  Maximum advance set at 1.5 times fortnightly rate of pension.  Minimum advance set at 0.5 times rate of pension.

2012

Clean energy advance payable for the period 1 July 2012 to 19 March 2013 for eligible recipients.

2013

Clean energy supplement commenced 20 March 2013 for eligible recipients.

2014

Clean energy supplement replaced by energy supplement commenced 20 September 2014.

The eligibility ages for males and females become the same: 60.

2015Income test change: from 1 January 2015, income deeming applies to asset-tested income streams (long term) that are account-based. Products held on, and those in receipt of income support since, 31 December 2014 are grandfathered from the change.
2019

From 1 July 2019, new income streams category Asset-tested Lifetime, for which means test includes:

  • 60% of income and asset from 'assessment day'; and
  • 30% of asset from 'threshold day'.


 

 

Invalidity Service Pension

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Last amended 
7 April 2022

Legislative Authority

Veterans' Entitlements Act 1986
Section 7A (qualifying service)
Section
37 (eligibility)
Section 37A to 37N (payability, claims and rate)
Schedule 6 (rate calculators)

Stated Current Purpose/Intent

To provide income support to Australian veterans and mariners, Commonwealth veterans and mariners, and allied veterans and mariners, who are considered permanently incapacitated for work due to medical factors, and who are not yet entitled to pension on the basis of age.

Current Eligibility Criteria

A person is eligible if he/she:

  • is an Australian, Commonwealth or allied veteran or mariner; and
  • has rendered qualifying service; and
  • is permanently incapacitated for work; and
  • claims before reaching pension age.

A person is automatically accepted as meeting the permanent incapacity for work criterion if he/she:

  • is permanently blinded in both eyes; or
  • receives or is eligible for the Special Rate of Disability Compensation Payment (i.e. Totally and Permanently Incapacitated (T&PI)); or
  • receives or has at some time in their life been eligible for the Special Rate Disability Pension (SRDP) under the Military Rehabilitation and Compensation Act 2004.

A veteran who does not automatically meet the permanent incapacity for work criterion is considered to be permanently incapacitated to work if:

  • he/she has 40 impairment points or more under the Guide to the Assessment of Rates of Veterans' Pensions (GARP); and
  • he/she is permanently unable to do work for periods adding up to more than 8 hours per week solely because of the incapacity; and
  • the incapacity is considered to be permanent.

Invalidity service pension for blinded veterans is not subject to the income and assets tests.  However, any additional entitlements are subject to the income and assets tests.

A Commonwealth veteran or mariner, or allied veteran or mariner (generally) must have been an Australian resident for at least 10 years, or a refugee who holds a permanent entry permit or visa and is a permanent resident.

Date of Introduction

Service pension on the ground of permanent unemployability was first paid in 1936.

Original Purpose/Intent

As current.

Significant Changes in Criteria or Purpose Since Introduction

Chronology of changes including those relating to means testing.

1986

With the introduction of the VEA in 1986, the name of the pension changed from service pension permanent unemployability to service pension invalidity.  At the same time, the "85% permanently incapacitated for work" element of criteria was introduced and blindness became a qualifier.

1991

The pension name was changed to invalidity service pension.

1995

Introduction of requirement for certain invalidity service pensioners to test their eligibility for an overseas pension.

The 10-year residency requirement was removed for refugees who hold a permanent entry permit or visa and are permanent residents.

Treatment of the “economic loss” component of compensation received by pensioners under pension age (other than compensation paid by Veterans' Affairs) was brought into line with the policy administered by the Department of Social Security.  Invalidity service pension is now reduced by $1 for every $1 of compensation received as a periodic payment for economic loss.  A preclusion period is applied to lump sum payments.

1996

Lump sum advance of service pension was introduced.

1997

It was legislated that the single rate of service pension be maintained at least at 25% of MTAWE.  The relativity between single and married rates of pensions was also retained.

1998

The first MTAWE increase of $6.80 per fortnight in the single rate of service pension occurred on 26 March 1998.

2000

From 1 January 2000, ISP permanent incapacity eligibility criteria were changed and more closely aligned with the criteria for Special Rate of disability pension.

1 July 2000 taper rate on service pension was reduced from 50 cents in the dollar for income over the free area to 40 cents in the dollar.

2004

Service pension was extended to members, former members and declared members under the MRCA.

2007

20 September 2007, the assets test taper rate reduced to 37.5 cents reduction for each $250 of assets over the free areas.

2009

20 September 2009, the first of the changes introduced following the Harmer Review into the adequacy and sustainability of the pension system. Changes include:

  • the tightening of the income test taper from 40 cents in each dollar of income to 50 cents.
  • Transitional arrangements are in place for those who would otherwise be worse off.
  • Single service pension increased to 66.33% of the combined couples rate.
  • GST Supplement, Pharmaceutical Allowance, Utilities allowance and telephone allowance rolled into a single pension supplement and paid fortnightly with pension.
2010

20 March 2010, combined couples rate of service pension indexed and compared to 41.76% of MTAWE. Single service pension rate set at 66.33% of combined couples rate.

From 1 July 2010, multiple lump sum advances allowed.  Maximum advance set at 1.5 times fortnightly rate of pension. Minimum advance set at 0.5 times rate of pension.

2012

Clean energy advance payable for the period 1 July 2012 to 19 March 2013 for eligible recipients.

2013

Clean energy supplement commenced 20 March 2013 for eligible recipients.

From 1 July 2013 those that receive or are eligible for the Special Rate Disability Pension (SRDP) under the Military Rehabilitation and Compensation Act 2004 automatically satisfy the permanent incapacity for work criterion.

2014

Clean energy supplement replaced by energy supplement commenced 20 September 2014.

2015Income test change: from 1 January 2015, income deeming applies to asset-tested income streams (long term) that are account-based.  Products held on, and those in receipt of income support since, 31 December 2014 are grandfathered from the change.
2016

From 1 July 2019, new income streams category Asset-tested Lifetime, for which means test includes:

  • 60% of income and asset from 'assessment day'; and
  • 30% of asset from 'threshold day'.

 


 

 

Carer Service Pension

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Last amended 
1 July 2019

Legislative Authority

Veterans' Entitlements Act 1986 (saving provisions only)
Responsibility for administration of carers pension transferred to the Department of Social Security (now Department of Human Services).
Savings and Transitional Provisions at Section 8 of Schedule 5 provide amendments relating to the transfer of carers.

 

Notes

  1. Carer pension and Carer allowance are administered by Department of Human Services.

 

Significant Changes in Criteria or Purpose Since Introduction

1985

Carer pension extended to include certain relatives providing constant care to a severely handicapped veteran.

1989

VEA amended to extend eligibility to any carer who provides the required level of care and attention.

Eligibility for carer pension extended to non-relatives from 1 November 1989.

1992

VEA amended to allow a carer to live either in the home of the veteran or adjacent to it.

1993

Respite period increased from 28 to 42 days within a calendar year before eligibility for carer service pension was lost.

Carers allowed to travel overseas during a period when they temporarily cease to provide care.

Carers were able to undertake training, education or employment for up to 10 hours per week.

Carers were permitted to access earnings credit arrangements.

Lump sum bereavement payments were extended to carers.

1995

Introduction of requirement for certain carer service pensioners to test their eligibility for an overseas pension.

1996

Eligibility extended to carers of veterans who do not receive service pension, but who satisfy the basic family payment income and assets test.

Requirement for the carer to live in the same home as, or in a home adjacent to, the veteran requiring care was removed.

Payment of carer service pension continued for up to 14 weeks when the person requiring care is admitted to an institution permanently.

Lump sum advance of service pension was introduced.

1997

Carers were transferred to carer pension paid by the Department of Social Security (now Department of Human Services) on 11 December 1997.

2015Income test change: from 1 January 2015, income deeming applies to asset-tested income streams (long term) that are account‑based.  Products held on, and those in receipt of income support since, 31 December 2014 are grandfathered from the change.
2019

From 1 July 2019, new income streams category Asset-tested Lifetime, for which means test includes:

  • 60% of income and asset from 'assessment day'; and
  • 30% of asset from 'threshold day'.

 

 


 

 

Partner Service Pension

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Legislative Authority

Veterans' Entitlements Act 1986
Section 38 (eligibility)
Section
38A to 38N (payability, claims, rate)
Schedule 6 (calculation of rates)

 

Stated Current Purpose/Intent

To provide income support for a veteran's partner.

 

Current Eligibility Criteria

A person is eligible for a partner service pension if the person is:

  • a member of couple, whose partner is a veteran receiving age or invalidity service pension or who would be receiving such a pension if not for the operation of one or more of the disqualifying provisions; or
  • a member of a couple whose partner is a veteran with qualifying service, and who is qualified for a social security age pension; or
  • a non-illness separated partner of a veteran who is receiving age or invalidity service pension or would be receiving such a pension if not for the operation of one or more of the disqualifying provisions, where the spouse is qualified for a social security age pension; or
  • a non-illness separated partner of a veteran who is receiving age or invalidity service pension or would be receiving such a pension if not for the operation of one or more of the disqualifying provisions, where special domestic circumstances apply; or
  • a non-illness separated partner of a veteran who is receiving age or invalidity service pension or would be receiving such a pension if not for the operation of one or more of the disqualifying provisions, with eligibility limited to 12 months from the date of separation; or
  • the widow, widower or eligible former partner of a veteran who was immediately before his or her death, receiving age or invalidity service pension or would have been receiving such a pension if not for the operation of one or more of the disqualifying provisions; and the widow or widower was receiving partner service pension or a social security pension immediately before the veteran's death; or
  • a widow, widower or eligible former partner of a veteran who had made a claim for partner service pension which had not been determined before the veteran died, and the veteran had made a claim for age or invalidity service pension which had not been determined before he or she died, but which the Commission determines would have been granted; or
  • the widow, widower or eligible former partner of a veteran with qualifying service, who is qualified to receive a social security age pension;

and

  • is of qualifying age or older; or
  • has dependent children; or
  • is the partner of a veteran who:
    • is receiving the Special Rate of Disability Compensation Payment (T&PI); or
    • is receiving, or is eligible to receive, a special rate disability pension safety net payment under the MRCA.

 

Notes

  1. Qualifying age is equivalent to the pension age for veterans [6], which is 60 years.
  2. Eligible former partner means a person who is the former partner of a veteran and would be eligible for partner service pension under non-illness separated provisions, but for the death of the veteran.  For example, a former spouse/de facto partner receiving partner service pension for 12 months following separation from the veteran partner, or a former spouse/de facto partner receiving partner service pension under special domestic circumstances.

 

Date of Introduction

In 1936 (providing the veteran was permanently incapacitated).

 

Original Purpose/Intent

To provide financial assistance to a veteran's partner or spouse.

 

Significant Changes in Criteria or Purpose Since Introduction

Chronology of changes including those relating to means testing.

1943

Wife's pension eligibility extended to spouse of a permanently incapacitated veteran.

1965

Service pension granted to the wife of an ex-serviceman receiving a service pension on the ground of age.

Wife's service pension allowed to be continued after the death of a veteran.

1972

Wife's service pension rate made equivalent to a veteran's married rate.

Married rate provision introduced when veteran's wife paid by the Department of Social Security.

1983

Carer pension for spouses introduced.

1991

Benefits extended to partners of female veterans.

Pension instalments of equal rate paid to each member of a couple.

1995

Introduction of requirement for certain partner service pensioners to test their eligibility for an overseas pension.

Widows, widowers and non-illness separated spouses, who are partner service pensioners became eligible for payment at the single rate.

Minimum age set at 50 years for partner service pension for non-veterans, unless they have dependent children or they are the partners of veterans receiving the special (T&PI) rate of disability pension.

Non-veterans, including widows and widowers, became eligible for partner service pension if they satisfied certain criteria.

Existing partner service pensioners were allowed to retain eligibility even if the veteran ceased to be paid service pension.

1996

Lump sum advance of service pension was introduced.

1997

It was legislated that the single rate of service pension be maintained at least at 25% of MTAWE.  The relativity between single and married rates of pensions was also retained.

1998

The first MTAWE increase in the single rate of service pension occurred on 26 March 1998.

2000

1 July 2000 taper rate on service pension was reduced from 50 cents in the dollar for income over the free area to 40 cents in the dollar.

2004

Service pension was extended to members, former members and declared members under the MRCA.

2007

20 September 2007, the assets test taper rate reduced to 37.5 cents reduction for each $250 of assets over the free areas.

2008

For claims lodged from 1 July 2008, the minimum age eligibility was increased from 50 years to qualifying age.  The pre-existing exemptions from the age requirement were unchanged.

2009

1 July 2009 married but separated partners of veterans lose eligibility for PSP 12 months from the date of separation, unless they are over age pension age or special domestic circumstances apply. The measure applies to any couple whose marital relationship has broken down, but not to those couples who have a continuing relationship but live separately for health reasons.  No change was made to eligibility for de facto couples – de facto couples continue to lose eligibility for partner service pension from the date of separation.

20 September 2009, the first of the changes introduced following the Harmer Review into the adequacy and sustainability of the pension system. Changes include:

  • the tightening of the income test taper from 40 cents in each dollar of income to 50 cents.
  • Transitional arrangements are in place for those who would otherwise be worse off.
  • Single service pension increased to 66.33% of the combined couples rate.
  • GST Supplement, Pharmaceutical Allowance, Utilities allowance and telephone allowance rolled into a single pension supplement and paid fortnightly with pension.
2010

20 March 2010, combined couples rate of service pension indexed and compared to 41.76% of MTAWE. Single service pension rate set at 66.33% of combined couples rate.

2012

Clean energy advance payable for the period 1 July 2012 to 19 March 2013 for eligible recipients.

2013

Clean energy supplement commenced 20 March 2013 for eligible recipients.

2014

Clean energy supplement replaced by energy supplement commenced 20 September 2014.

2015Income test change: from 1 January 2015, income deeming applies to asset-tested income streams (long term) that are account‑based.  Products held on, and those in receipt of income support since, 31 December 2014 are grandfathered from the change.
2019

20 September - changes to allow former de facto partners the same access to partner service pension as former married partners:

  • both de facto and married partners can continue to receive partner service pension for a period of 12 months following separation from their veteran partner, or until they enter into a new de facto relationship or marry;
  • both de facto and married partners can continue to receive partner service pension after the 12 month post-separation period where special domestic circumstances apply, until they enter into a new de facto relationship or marry; and
  • divorce no longer ends a former partner's eligibility for partner service pension.

 

Income Support Supplement (ISS)

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Last amended 
1 July 2019

Legislative Authority

Veterans' Entitlements Act 1986
Section 45A (eligibility)
Section
45B to 45R (payability, claims)
Schedule 6 (calculation of rates)

Stated Current Purpose/Intent

To provide income support for war widows and widowers.

Current Eligibility Criteria

A person is eligible for an income support supplement (ISS) if the person:

  • is receiving a war widow(er)'s pension under the VEA, or compensation as a wholly dependent partner under the MRCA; and
  • is an Australian resident; and
  • is residing in Australia.
Notes
  1. The ISS is an income support payment and as such is subject to the income and assets tests.
  2. The ceiling rate of ISS was frozen at $120.10 per fortnight on introduction.  Changes were made later to make ad hoc increases to the frozen ceiling rate and then to index the ceiling rate.
  3. Prior to the introduction of ISS, war widows and widowers could receive income support under the Social Security Act 1991 .  The war widow(er)'s pension was income for the social security payment which generally resulted in a payment of $120.10 per fortnight (frozen since January 1986).
Date of Introduction

20 March 1995

Significant Changes in Criteria or Purpose Since Introduction
1995

From 1 July 1995, the Government introduced changes to the age at which war widows and widowers can be granted ISS.  The earliest age a war widow/er can become eligible will be lifted in six-monthly increments every two years from 55 to 60 years over the period, 1995-2014.

1997

Carer service pension was transferred to DSS.  Some cases were saved and remained with DVA, including some ISS carer payments.  No further grants at DVA.

2000

On 1 July 2000, the ceiling rate was increased to $124.90 with the introduction of the GST related pension supplement.

2002

Legislation was passed allowing the previously frozen ceiling rate of ISS to be indexed twice yearly (March and September) in line with increases in the percentage increase to the maximum rate service pension. The first increase applied from 20 September 2002.

Legislation was passed which allowed a claim for ISS, received after the date of receipt of war widow(er)'s pension, to be payable on and from the date of receipt of war widow(er)'s pension, providing that the pensioner was receiving a social security benefit or pension which was cancelled, and would have been eligible for ISS for the period between.

SCH6-B2 of the VEA, which allowed for an ISS recipient who is partnered (partner receiving neither pension nor benefit) to be treated as not being a member of a couple, was repealed.

2005

From 1 January 2005, rent assistance became payable in addition to the ceiling rate.

2008

Legislation was passed removing the qualifying age, dependent child, or partnered (partner getting pension) eligibility criteria for ISS.  The category of ISS (invalidity) is retained as the payment is non-taxable if received by a war widow/er who is under pension age.

2009

20 September 2009 the ceiling rate of ISS is increased by the amount of the utilities allowance and telephone allowance previously paid quarterly.

2015Income test change: from 1 January 2015, income deeming applies to asset-tested income streams (long term) that are account‑based.  Products held on, and those in receipt of income support since, 31 December 2014 are grandfathered from the change.
2019

From 1 July 2019, new income streams category Asset-tested Lifetime, for which means test includes:

  • 60% of income and asset from 'assessment day'; and
  • 30% of asset from 'threshold day'.


 

 

Defence Force Income Support Allowance (DFISA)(Ceased 2022)

Date published 
Monday, February 28, 2022
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Last amended 
28 February 2022

DFISA ceased 1 January 2022.  The information below is for historical and backdating assessments only.

Legislative Authority

Veterans' Entitlements Act 1986
Section 118NB (eligibility)
Section
118NC (when payable)
Section 118ND (calculation of amount payable)

Part VIIAB (including the sections above) was revoked by the Veterans' Affairs Legislation Amendment (Exempting Disability Payments from Income Testing and Other Measures) Act 2021 which received Royal Assent 13 December 2021 with an implementation date of 1 January 2022.

Stated Current Purpose/Intent

The purpose of DFISA was to effectively exempt adjusted disability pension from the income test for income support payments paid under Social Security Law, while continuing to regard it as income for the purposes of rent assistance paid under both Social Security and Veterans' Entitlements Law.

 

Current Eligibility Criteria

The amount of DFISA was the difference between the person's rate of social security payment, and what the rate would be if adjusted disability pension were exempt from the assessment, but included in the calculation of any rent assistance entitlement.

DFISA was payable to people whose social security income support payment was reduced or not payable because of the impact of adjusted disability pension.

Adjusted disability pension means:

  • disability pensions paid under Parts II or IV (other than a pension that was payable under section 30 to a dependant of a deceased veteran) of the VEA;
  • dependant pension, which was a small frozen amount paid to dependants of disability pensioners, not granted since 1986;
  • temporary incapacity allowance (paid by Centrelink); and
  • permanent impairment payments and special rate disability pension paid under the MRCA.

 

Date of Introduction

20 September 2004

 

Significant Changes in Criteria or Purpose Since Introduction

Part VIIAB (including section 118NJ – regulation making power) was revoked by the Veterans’ Affairs Legislation Amendment (Exempting Disability Payments from Income Testing and Other Measures) Act 2021 receiving Royal Assent 13 December 2021, implementation date 1 January 2022.

 

DFISA-Like Payments (Ceased 2022)

Date published 
Monday, February 28, 2022
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Last amended 
28 February 2022

DFISA-Like Payments ceased 1 January 2022.

The information below is for historical purposes.

Legislative Authority

Veterans' Entitlements Act 1986
Section 118NJ (regulation making power)

Veterans' Entitlements (DFISA-like Payment) Regulations 2015

Part VIIAB, which includes section 118NJ, was repealed by the Veterans' Affairs Legislation Amendment (Exempting Disability Payments from Income Testing and Other Measures) Act 2021 with effect from 1 January 2022.

Stated Current Purpose/Intent

The purpose of DFISA-like payments was to recompense those who were qualified for income support payments other than those paid under social security law.

Adjusted disability pension was counted as income for the purposes of the following income support payments administered by the former Department of Education Science and Training (DEST) and the former Department of Agriculture, Fisheries and Forestry (DAFF):

  • ABSTUDY Living Allowance;
  • Farm Help Income Support (repealed 1 July 2014);
  • Exceptional Circumstances Relief Payment (repealed 1 July 2014);
  • Interim Income Support (repealed 1 July 2014)
  • Farm Household Allowance.

To extend secondary benefits to recipients of DFISA-like payments, whose income support payments were reduced to nil because of the adjusted disability pension:

  • financial payment that was equivalent to any amount that would have been payable to a person if the person had received the primary payment; and
  • non-financial benefits such as concession cards that would have been provided to the person if the person had received the primary payment.

Adjusted disability pension meant:

  • disability pensions paid under Parts II or IV of the VEA (other than a pension that was payable under section 30 to a dependant of the a deceased veteran);
  • dependant pension, which was a small frozen amount paid to dependants of disability pensioners (repealed in 2009);
  • temporary incapacity allowance (repealed in 2011); and
  • permanent impairment payments and special rate disability pension paid under the MRCA.

The amount of DFISA-like payment was calculated in the same way as the calculation for DFISA.  It was the difference between the person's rate of income support payment and what the rate would be if adjusted disability pension were exempt from the assessment, but included in the calculation of any rent assistance entitlement.

 

Current Eligibility Criteria

DFISA-like payments were payable to a person who was receiving or was eligible to receive income support payments from DEST if their payment was reduced because of the inclusion of adjusted disability pension in the assessment.

Since 1 July 2014, the former Department of Agriculture’s Farm Household Allowance, paid by DHS/Centrelink, did not include adjusted disability pension in the income test of the Farm Household Allowance and thus there was no DFISA-like payment.

 

Date of Introduction

20 September 2004

 

Significant Changes in Criteria or Purpose Since Introduction

2014

On 1 July 2014 the Farm Household Support (Consequential and Transitional Provisions) Act 2014 repealed the Farm Household Support Act 1992. The new Farm Household Support Act 2014 is not subject to DFISA or DFISA-like.

2022Part VIIAB (including section 118NJ – regulation making power) was revoked by the Veterans’ Affairs Legislation Amendment (Exempting Disability Payments from Income Testing and Other Measures) Act 2021 with effect from 1 January 2022.

 


 

 

Hardship Provisions

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Legislative Authority

Veterans' Entitlements Act 1986
Sections 52Y to 52ZAA

 

Stated Current Purpose/Intent

To provide assistance to a person who owns valuable assets, which produce little or no income, in circumstances where there are valid reasons why the assets cannot or should not be disposed of, or the person cannot otherwise raise funds on those assets.

 

Current Eligibility Criteria

The assets test presumes that people with substantial assets, apart from their home, apply those assets to produce income for their own support.  In cases where substantial assets are held but they produce little or no income, the owners are expected to re?arrange their financial affairs before calling on the community for income support through the pension system.

However, there are instances where a person is unable to re-arrange his or her financial affairs, or could not reasonably be expected to re-arrange them because of particular circumstances applying.  Consequently, special provisions are included in the VEA so that people are not placed in severe financial hardship due to the normal application of the assets test.

The following conditions must be met before the hardship provisions can apply:

  • the rate of service pension or income support supplement payable (including nil rate) is determined under the assets test;
  • the person must not have disposed of income or assets for less than adequate consideration;
  • the person or the person's partner has an unrealisable asset;
  • the person would be considered to be suffering severe financial hardship, if the financial hardship provisions were not applied;
  • the person must lodge a written request for payment of service pension or income support supplement under the hardship provisions; and
  • there is no other course of action which the person could reasonably be expected to take to improve his or her financial position.

A pensioner is not in severe financial hardship if their total annual assets tested service pension or income support supplement plus other income exceeds the maximum annual rate of pension.

 

Date of Introduction

1985

 

Original Purpose/Intent

Hardship provisions were introduced under the assets test in 1985 to assist in cases where the value of a person's assets reduced the amount of service pension payable with the result that the pensioner was in severe financial hardship.

 

Significant Changes in Criteria or Purpose Since Introduction

1995

Hardship provisions apply to the income support supplement.


 

 

Pensioner Concessions

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Legislative Authority

Veterans' Entitlements Act 1986
Section 53

 

Stated Current Purpose/Intent

To provide all service pensioners and income support supplement recipients with assistance, additional to their assessed rate of pension.

 

Current Eligibility Criteria

All service pensioners and income support supplement recipients are eligible for all Commonwealth concessions.

 

Date of Introduction

Fringe benefits were first introduced in 1936.  With effect from 1 April 1993, the special fringe benefits income and assets tests were abolished.  From that date, all service pensioners became eligible for the full range of Commonwealth concessions and were issued with a Pensioner Concession Card (PCC).

 

Original Purpose/Intent

Pensioner concessions provide service pensioners with assistance of a non-cash nature, which is additional to their assessed rate of pension.  These benefits have been generally defined by the General Orders Service Pension as “any good or service, or assistance towards purchasing a good or service, which is available on concessional terms to pensioners, beneficiaries and/or people with limited means but which is not generally available on concessional terms to everyone in the community.”

Pensioner concessions are made available by Commonwealth, State, Territory and local governments.  Certain private organisations such as theatres, cinemas, clubs and sporting associations also offer pensioner discounts.

Once a pensioner is eligible for pensioner concessions, he or she becomes eligible, through the Commonwealth, for the following:

  • concessions under the Pharmaceutical Benefits Scheme;
  • subsidised products from the National Diabetes Services;
  • concessional hearing aid services;
  • fare reductions for travel on Great Southern Railways where an extended journey involves both State and National railway lines; and
  • postal redirection concessions.

Concessions provided by State, Territory, and local governments vary from place to place but commonly include:

  • rebates on municipal rates and water, gas and electricity charges;
  • transport concessions on State or Territory rail, bus, ferry and tram services;
  • reductions in drivers' licence fees and motor vehicle registration charges;
  • rebates on third party motor vehicle insurance premiums in some cases;
  • exemption from stamp duty; and
  • free ambulance services.

Dependants of pensioner concession card holders, who are listed on the card, are eligible for concessions under the Pharmaceutical Benefits Scheme and may be eligible for a range of other concessions offered by state and territory governments.

 

Significant Changes in Criteria or Purpose Since Introduction

Primarily, changes have been the result of changes to the former means test and then the introduction of the income and assets tests.

1969

A fringe benefits means limit was introduced with the tapered means test.  (The fringe benefits limit was equivalent to the service pension limit prior to the introduction of the tapered means test).

1985

The assets test for fringe benefits was introduced.

1987

A "period of grace" was introduced for pensioners who lost their eligibility for fringe benefits but whose private income rose by no more than 25% of the fringe benefits cut-off levels.  This provision allowed these veterans to retain their eligibility for fringe benefits for a period of 13 weeks from the date of cancellation.

1991

Saving provisions, for pensioners who lost fringe benefits due to deeming provisions, were introduced.

1993

The income and assets tests for fringe benefits were abolished and fringe benefits were extended to all service pensioners from 1 April 1993.  These pensioners were issued with a Pensioner Health Benefits (PHB) Card and became eligible for the full range of non-DVA Commonwealth fringe benefits including concessions on the cost of pharmaceutical prescriptions, subsidised products from National Diabetes Service, free hearing aids through the Australian Hearing Services, concessional travel on Australian National Railways and postal redirection concessions.

1994

The PCC replaced the PHB and Pensioner Benefits Concession (PBC) Cards.

1995

Concessions applied to income support supplement recipients.

 


 

 

Commonwealth Seniors Health Card (CSHC)

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Legislative Authority

Veterans' Entitlements Act 1986
Sections 118V-118ZZA

 

Stated Current Purpose/Intent

To provide concessions to retirees of pension age who fail to qualify for an income support pension or a social security pension or benefit.

 

Current Eligibility Criteria

To be eligible for a CSHC from DVA, a person must be:

  • a veteran with qualifying service;
  • a partner (including widows and widowers) of a veteran with qualifying service; or
  • a war widow or widower.

The person must also:

  • have reached pension age (or qualifying age if a war widow or widower);
  • be an Australian resident and residing in Australia;
  • not be receiving a service pension, income support supplement or age pension from DVA;
  • not be receiving a pension or benefit or CSHC from Services Australia; and
  • satisfy the CSHC income test*.

*Clients over pension age whose pension was reduced to nil on 1 January 2017 as a result of changes to the assets test do not need to meet the usual CSHC income test.

 

Notes

  1. CSHC holders are also entitled to pharmaceuticals at the concessional rate under the Pharmaceutical Benefits Scheme and the Medicare Safety Net threshold.

 

Date of Introduction

1 July 1994

 

Original Purpose/Intent

In the 1993 Budget, the Government announced the provision of a Seniors Health Card to assist those retirees who qualified for fringe benefits under the income test, but either failed the assets test or were excluded by the residency requirements.

The CSHC does not give the cardholder direct access to any State, Territory or local government concessions, although some State, Territory and local governments may recognise the CSHC for additional concessions.  To avoid confusion with State Seniors Cards, the prefix 'Commonwealth' was added to the name.

The card originally provided a limited range of health-related concessions and was targeted at those retirees who are asset rich but income poor.

 

Significant Changes in Criteria or Purpose Since Introduction

1995

Eligibility for the CSHC was extended to widows and widowers and non-illness separated spouses who lose entitlement to the pensioner concession card due to the means-test.

1999

The CSHC income test changed from 'ordinary income' to 'taxable' income adjusted to include the person's taxable income as per their tax assessment notice, net rental property loss, target foreign income and the value of the employer provided fringe benefits.

1997

Eligibility to access dental treatment through the Commonwealth Dental Program ceased from 1 January 1997.  Access to hearing aids through the Australian Hearing Services was discontinued from 1 July 1997.

2001

CSHC holders who are eligible telephone subscribers became eligible to receive a quarterly payment of telephone allowance (TA).  Concessional fares were extended to CSHC holders for rail journeys with the Great Southern Railways.

2004

Seniors concession allowance was introduced to assist CSHC holders with the payment of energy, rates, water and sewerage expenses.

2009

Seniors supplement replaced both telephone allowance and seniors concession allowance from September 2009 for CSHC holders.

2010

From the 2009-10 tax year, two new income items were added to the CSHC income test: net financial investment loss and reportable superannuation contributions.

2013

CSHC portability provisions that relate to overseas travel were changed on 1 January 2013. The portability restrictions previously set at 13 weeks were reduced to 6 weeks.

2014

Portability provisions for CSHC cardholders were removed from 1 July 2014.  The provisions remain for the seniors supplement and the energy supplement.

Annual indexation of the income thresholds commenced from 20 September 2014, with reference to the Consumer Price Index.

2015From 1 January 2015, account-based income streams are deemed to earn income for the purposes of the CSHC income test.  Grandfathering applies to those who continuously held a CSHC and income stream since 31 December 2014.
2017

For new CSHC holders granted on or after 20 September 2016, Energy Supplement will cease being paid from 20 March 2017.  Grandfathering arrangements may apply for some new CSHC holders.  Those who also hold a Gold Card will continue to receive Energy Supplement through their Gold Card.


 

 

Seniors Supplement (ceased 2015)

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Legislative Authority

Prior to 26 June 2015

Veterans' Entitlements Act 1986
Sections 118P to 118PC

 

Stated Current Purpose/Intent

Seniors supplement ceased 26 June 2015.  The purpose was to provide assistance to self funded retirees and eligible Gold Card holders in meeting quarterly utilities bills.  The seniors supplement was paid quarterly.

 

Current Eligibility Criteria

Between 20 September 2009 and 26 June 2015, to be eligible for seniors supplement, a person must have been the holder of a Commonwealth Seniors Health Card, or a Gold Card holder who is of veteran pension age and not receiving an income support payment.

 

Date of Introduction

Seniors supplement commenced on 20 September 2009; the first payment was paid on 31 December 2009.  It ceased 26 June 2015 with the last payment on 25 June 2015.

 

Significant Changes in Criteria or Purpose Since Introduction

2012

Clean energy advance payable for the period 1 July 2012 to 19 March 2013 for eligible recipients.

2013

Clean energy supplement commences 20 March 2013 for eligible recipients.

Portability period reduced to 6 weeks from 1 January 2013.

2014

Portability provisions removed from the CSHC. The provisions remain for the seniors supplement and the clean energy supplement.

Clean energy supplement replaced by energy supplement commenced 20 September 2014.

2015Seniors Supplement ceased with the last payment 25 June 2015. The Energy Supplement continues to be paid.

 


 

 

Home Equity Access Scheme (HEAS)

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Last amended 
1 July 2019

Legislative Authority

Veterans' Entitlements Act 1986
Sections 52ZAAA to 52ZN

 

Stated Current Purpose/Intent

To provide income support in the form of a loan to a person who receives service pension or income support supplement, or who would receive such a payment but for the income test or assets test.

Current Eligibility Criteria

It is assumed that a person who owns substantial assets can use them to produce income and meet living expenses.  However, situations may arise where a person is unable or, for any reason, unwilling to re-arrange his or her assets.

A person is eligible if he or she:

  • is a veteran or war widow/er who is 60 years of age - or is the partner of a veteran and is pension age (for pension ages - see Tables [15]);
  • is in receipt of, or eligible to receive, a service pension or income support supplement;
  • would receive a rate of service pension or income support supplement greater than nil under either the income or assets tests.

It is a requirement that all applicants have adequate insurance of the secured asset and not be bankrupt (or have a personal insolvency agreement).

1. The home equity assistance scheme allows a person to receive a payment in the form of a loan. The maximum fortnightly amount payable inclusive of the pension rate is 150% of the maximum pension rate.  Participants can access up to two lump sum advances in any 12-month period, up to a total of 50% of the maximum annual pension rate.  Any advance taken will reduce the amount of HEAS payments that can be taken as fortnightly payments for the rest of the 12 months.

2. The HEAS component of a person's payment attracts interest and is generally repayable from the person's estate or when the home is sold.  The loan may be paid for a short period while the person's assets are being re-arranged, or for an indefinite period.

The Home Equity Access Scheme has a No Negative Equity Guarantee, meaning, the person will not have to pay more than the market value of their home as repayment, even if the amount of interest accrued has resulted in the balance of the debt exceeding the value of the property.

Date of Introduction

1985

 

Original Purpose/Intent

The Government introduced the Pension Loans Scheme in 1985 to enable those pensioners whose assets excluded them from receiving a service pension or whose rate of payment of service pension was reduced under the assets tests, to qualify for income support.  The amount of money paid to a pensioner each fortnight was equal to the rate of pension assessed under the income test.

Such support is considered to be a debt to the Commonwealth attracting interest against the value of the funds advanced at a rate set by the Minister for Families, Housing, Community Services and Indigenous Affairs.  Strict rules regulate the granting of these pensions by the Department and the recovery of the debt incurred.

If a veteran subsequently becomes eligible to be paid a service pension or other income support, pension paid to the veteran under the Pension Loans Scheme is deducted from his or her fortnightly payment.

 

Significant Changes in Criteria or Purpose Since Introduction

1995

The Pension Loans Scheme became available to income support supplement recipients.

1996

Accessibility to the Scheme was expanded by:

  • lifting the loan amount to the maximum pension rate;
  • expressing the interest rate in compound, rather than simple, terms; and
  • making loans available to people who meet either the income or assets test.
2019

Accessibility to the Scheme was further expanded by:

  • lifting the loan amount to 150% of maximum pension rate;
  • making loans available to all – no need to meet the income or assets test, just need to be eligible to for service pension or income support supplement from DVA;
  • allowing for the recovery of the nominated amount if required;
  • additional requirement that the applicant must hold adequate insurance for the property offered as security;
  • applicants must not be bankrupt or subject to an insolvency agreement.
20201 January 2020 - Pension Loans Scheme interest rate reduced from 5.25% to 4.5%.
20221 July 2022 - Introduction of No Negative Equity Guarantee (NNEG) and lump sum advances.


 


 

Lump Sum Advance of Pension

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Legislative Authority

Veterans' Entitlements Act 1986
Section 79B (eligibility)
Sections 79C to 79G (applications)
Sections 79I to 79J (determination)
Section 79K (maximum amount of advance)

 

Stated Current Purpose/Intent

To provide pensioners with greater choice in how they meet unexpected needs for additional cash.

 

Current Eligibility Criteria

A person may be eligible for a lump sum advance of pension if he or she is receiving:

  • age service pension
  • invalidity service pension
  • partner service pension
  • income support supplement
  • war widow(er)'s pension
  • Disability Compensation Payment
  • social security age pension by DVA.

To be eligible for a lump sum advance, a person must:

  • be paid one of the above types of pension; and
  • have been receiving a pension from DVA or Services Australia continually during the three months before the application for an advance; and
  • be able to afford to repay the advance without suffering severe financial hardship; and
  • be an Australian resident living in Australia at the time of application.

A person is not eligible for a lump sum advance if the person:

  • has been paid an advance in the last 12 months that has not been fully repaid; or
  • is not eligible to receive an amount over the minimum lump sum amount; or
  • owes a debt to the Commonwealth because he or she has been overpaid pension by DVA or Services Australia.

The maximum amount that can be advanced as a lump sum is equal to three weeks of the maximum pension rate less the minimum pension supplement amount.

Pensioners can apply for multiple advances in a given year as long as the total does not exceed 1.5 times (three weeks) their fortnightly pension.

 

Date of Introduction

Lump sum advance of service pension was introduced on 4 July 1996.

Lump sum advance of pension was extended to Disability Compensation Payment recipients from 1 January 1998.

 

Original Purpose/Intent

The purpose and intent of this benefit have not changed.

 

Significant Changes in Criteria or Purpose Since Introduction

1998

Lump sum advance of pension was extended to Disability Compensation Payment recipients.

2010

Multiple advances allowed with maximum advance limited to 1.5 times the fortnightly rate of pension and the minimum advance set at 0.5 times the pension rate.


 

 

Pension Supplement

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Legislative Authority

Veterans' Entitlements Act 1986
Section 5GA
Schedule 6

 

Stated Current Purpose/Intent

The Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 introduced the Pension Supplement to simplify the number of supplementary allowances currently available and to provide pensioners with more flexibility in managing their own budgets.

 

Current Eligibility Criteria

All veterans who are in receipt of income support.

 

Date of Introduction

20 September 2009

 

Notes

  1. The Pension Supplement incorporated the value of the previous GST Supplement, pharmaceutical allowance, utilities allowance and telephone allowance (at the higher internet rate).
  2. The Pension Supplement is paid fortnightly.
  3. A portion of the Pension Supplement is only available to people resident in Australia or temporarily overseas.  This maintains the current portability rules applying to the former utilities allowance and telephone allowance.
  4. A pension payment will not fall below the minimum amount of the Pension Supplement until income or assets reach a level that would otherwise reduce the pension to nil.
  5. An amount of the Pension Supplement equal to the previous GST Supplement is taxable, except where a pension is received that is not taxable.  The remainder of the Pension Supplement is non-taxable.
  6. The combined pension couple rate of the Pension Supplement and the Pension Supplement minimum amount are indexed to the CPI each 20 March and 20 September.  The single rate of the Pension Supplement and Pension Supplement minimum amount is 66.33 per cent of the combined pension couple rate.

 

Significant Changes in Criteria or Purpose Since Introduction

2010

Option introduced for pensioners to elect to receive the pension supplement minimum amount as a quarterly payment rather than fortnightly from 1 July 2010.

2013

The portability rules for temporary overseas travel changed on 1 January 2013, reducing the allowable travel period from 13 weeks to 6 weeks before the supplement is reduced.

 


 

 

Dependent Children

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Legislative Authority

Veterans' Entitlements Act 1986
Section 5F (definitions)
Schedule 5(10) Savings and Transitional Provisions

 

Stated Current Purpose/Intent

To financially assist veteran service pensioners, and income support supplement recipients who have dependent children.

 

Current Eligibility Criteria

A veteran or war widow/er with a dependent child or children (as defined in section 5F VEA) may qualify for Family Tax Benefit from Services Australia. A DVA income support pensioner with a dependent child or children, automatically qualifies for Family Tax Benefit Part A.

 

Date of Introduction

Additional pension for children has been payable since 1936.  Guardian allowance was first introduced in 1965.

 

Original Purpose/Intent

An acknowledgment of the additional financial strain of dependent children on persons receiving income support.

 

Significant Changes in Criteria or Purpose Since Introduction

1936

Allowance for dependent children was payable to a permanently incapacitated veteran.

1965

Additional payments made to all veterans with dependent children and the introduction of guardian allowance.

1983

Additional remote area allowance payable to veterans with children.

1989

Additional rent assistance made available to service pensioners with one or more dependent children.

1995

Dependent child add-on and guardian allowance became available to income support supplement recipients.

1996

The amount of guardian allowance was increased by $4 per fortnight for single service pensioners and income support supplement recipients, as part of a package of benefits to assist families.

1998

Responsibility for payment transferred to the Department of Social Security (now Services Australia) on 1 January 1998.

2000

Guardian allowance and other child related payments replaced with Family Tax Benefit Parts A & B, paid through the Family Assistance Office (now Services Australia).

 


 

 

Economic Support Payments

Date published 
Monday, November 23, 2020
Last amended 
23 November 2020

Economic Support Payments

 

Legislative Authority

Veterans' Entitlements Act 1986 (Part IIIH and Part IIIJ)
 

Stated Purpose/Intent

In response to the COVID-19 pandemic, the Government announced two $750 Economic Stimulus Payments to be paid to recipients of certain benefits from Services Australia and DVA.

In the 2020-21 October Budget, the Government announced two additional Economic Support Payments of $250.

 

Eligibility - first and second Economic Support Payments

A person must be an Australian resident and receiving one of the following underlying payments at any time during the test period of 12 March to 13 April 2020 for the first payment, and on the test date of 10 July 2020 for the second payment:

  • Service Pension, Partner Service Pension, Income Support Supplement or Veteran Payment
  • Disability Pension (separate to the $6.20 fortnightly payment)
  • Special Rate Disability Pension
  • Permanent Impairment compensation*
  • War Widow(er)’s Pension or Wholly Dependent Partner payment*
  • Gold Cards, Commonwealth Seniors Health Cards and Pensioner Concession Cards
  • DVA Education Schemes, where recipients are aged 16 and over
  • Age or Wife Pension paid by DVA

*including lump sum payments taken in the past.

Eligibility - Additional Economic Support Payments

A person must be an Australian resident and receiving one of the following benefits on the test date of 27 November 2020 to receive the additional Economic Support Payment 2020, and/or on the test date of 26 February 2021 to receive the additional Economic Support Payment 2021:

  • Service Pension, Partner Service Pension, Income Support Supplement or Veteran Payment
  • Disability Pension (separate to the $6.20 fortnightly payment)
  • Special Rate Disability Pension
  • Permanent Impairment compensation*
  • War Widow(er)’s Pension or Wholly Dependent Partner payment*
  • Gold Cards, Commonwealth Seniors Health Cards and Pensioner Concession Cards
  • Age Pension paid by DVA

*including lump sum payments taken in the past.

Notes

1. Those in receipt of Coronavirus Supplement for a period inclusive of 10 July 2020 are not eligible for the second Economic Support Payment.

2. A person may receive only one Economic Support Payment in respect of the 12 March ‑ 13 April 2020 test period, and only one Economic Support Payment in respect of the 10 July test date.

3. Those in receipt of a working age income support payment (such as JobSeeker Payment or Youth Allowance), or an education scheme such as the Veterans’ Children Education Scheme, the Military Rehabilitation and Compensation Act Education and Training Scheme, or ABSTUDY, for a period covering the test dates of 27 November 2020 or 26 February 2021, are not eligible to receive the additional Economic Support Payments.

4. A person may receive only one additional Economic Support Payment 2020 and one additional Economic Support Payment 2021.

5. Those temporarily overseas during the test period or on the test date may still receive the Economic Support Payments, as long as they do not hold residency status in another country.

 

Date of Introduction

The first Economic Support Payment of $750 per person was announced on 12 March 2020, with payments commencing on 31 March 2020.

The second Economic Support Payment of $750 per person was announced on 22 March 2020, with payments commencing from mid-July 2020.

The additional Economic Support Payments were announced on 6 October 2020 as part of the 2020-21 Budget, with payments commencing from early December 2020 and early March 2021.

 

Original Purpose/Intent

The Government announced the Economic Support Payments as part of its stimulus packages to address the economic impacts of the COVID-19 pandemic. 
 

Significant Changes in Criteria or Purpose Since Introduction

12 March 2020

The first Economic Support Payment was announced.

22 March 2020

The second Economic Support Payment was announced.

6 October 2020

The additional Economic Support Payment 2020 and additional Economic Support Payment 2021 were announced as part of the 2020-21 Budget.

 

 

 

Remote Area Allowance

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Legislative Authority

Veterans' Entitlements Act 1986
Section 5Q(1) (definition)
Schedule 6 Module G

Income Tax Assessment Act 1936

 

Stated Current Purpose/Intent

To help offset the higher than normal costs incurred by service pensioners and income support supplement recipients whose permanent place of residence is situated in a remote area of Australia.

 

Current Eligibility Criteria

A person is eligible if the person is receiving, or eligible to receive, service pension or income support supplement and permanently resides in the remote area [20].

A person who is eligible for remote area allowance and has family tax benefit children, is eligible for remote area allowance for each eligible child.  The child does not have to live in the remote area, but must normally be in Australia.

Remote area allowance will be payable for up to 8 weeks if the child is overseas temporarily.  Remote area allowance for family tax benefit children will be paid as part of the DVA pension, not by Services Australia.

 

Notes

  1. Though remote area allowance is not subject to either the income or assets tests and is not taxable, it does affect any zone tax offset otherwise available to the pensioner from the Australian Taxation Office.

 

Date of Introduction

Remote area allowance was introduced into the DVA in 1984.

 

Original Purpose/Intent

The original purpose has not changed.

 

Significant Changes in Criteria or Purpose Since Introduction

1991

The size of areas considered to be remote was extended to include additional remote areas of population.

1993

The rate of remote area allowance was increased by 25%.

1995

Income support supplement recipients became eligible for remote area allowance.

 


 

 

Rent Assistance

Date published 
Friday, February 25, 2022
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Last amended 
25 February 2022

Legislative Authority

Veterans' Entitlements Act 1986
Section 5N(1) to 5N(8) (definition)
Schedule 5(3) to 5(5)Savings and Transitional Provisions
Schedule 6, Module C

Stated Current Purpose/Intent

Rent assistance is a non-taxable amount payable to service pensioners, income support supplement (ISS) or veteran payment recipients with limited income to help cover the cost of private rental accommodation.

Current Eligibility Criteria

To be eligible, a service pensioner, ISS and veteran payment recipient must reside in Australia, pay rent (other than Government rent) above the applicable rent threshold, (generally) not be a home owner, and neither the pensioner nor the pensioner's partner may be in receipt of an incentive allowance from Centrelink, nor be a sub-tenant in public housing.

Rent assistance is paid at higher rates for pensioners with children and is paid by Centrelink with Family Tax Benefit.

Rent assistance is calculated separately and added to other entitlements before application of the income and assets tests.  

A blind pensioner is not subject to the income or assets test, but the rate payable does not include rent assistance. Some blind pensioners may be better off on a rate of pension calculated for a person who is not blind if rent assistance is payable.

Date of Introduction

Rent assistance was introduced in 1958 and was known as "supplementary assistance".  It was renamed rent assistance in 1985.

Original Purpose/Intent

The original purpose has not changed.

Significant Changes in Criteria or Purpose Since Introduction
1958

Supplementary assistance for service pensioners introduced.

1965

Extension of supplementary assistance (now rent assistance) to the spouse of a veteran.

1982

Pensioners receiving rent assistance as government renters were no longer able to receive rent assistance. A savings provision was introduced which protected those pensioners already receiving assistance.

1987

Savings provisions for government tenants were abolished.

Separate income test on rent assistance removed.

1990

Enhanced rent verification procedures introduced.

1991

Commenced twice-yearly indexation of maximum rate of rent assistance.

1993

Single rent threshold was replaced with four new thresholds which are dependent on family circumstances.  These thresholds are indexed twice yearly.

The rate of assistance above the rent threshold was increased from 50 cents in the dollar to 75 cents in the dollar.

A savings provision introduced in 1993 protected those pensioners who were already receiving rent assistance at the time of implementation and who would have been entitled to a reduced rate as a result of the changes (i.e. changes in thresholds).

1994

Rent assistance payable to students receiving the homeless rate of VCES benefits.

1995

Income support supplement recipients became eligible, however, the rent assistance amount was included in their ceiling rate.

1996

Rent assistance increased by $5.00 per fortnight for service pension or income support supplement recipients with dependent children.

Rent assistance threshold increased by $5.00.

1997

Sub-tenants in public housing lost eligibility.

Pensioners in aged care facilities lost eligibility for rent assistance.

2000

From 20 September 2000, rent assistance was made portable for a period of 26 weeks allowing it to continue to be paid for short term absences from Australia.

2005

From 1 January 2005, rent assistance became paid in addition to the ceiling rate of Veterans' Affairs income support supplement paid to war widow and widowers.

2018From 1 May 2018, veteran payment was introduced.  As part of this income support payment, rent assistance could be considered.
2022

From 1 January 2022, the Disability Income Rent Test was removed from the VEA.  This resulted in increased rent assistance (or rent assistance became payable for the first time) to those in receipt of disability income (VEA disability compensation payment, MRCA permanent impairment payment and for ISS, also MRCA SRDP) who pay private rent above the threshold and receive VEA income support.  Removal of the Disability Income Rent Test means that disability income no longer affects the rate of rent assistance.


 

 

Bereavement Payment

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Legislative Authority

Veterans' Entitlements Act 1986
Section 53H (definition)
53J-N (bereavement payment - partnered)
53P-Q (bereavement payment - single)
53R-T (bereavement payment - death of a dependent child)

 

Stated Current Purpose/Intent

To allow a service pensioner or income support supplement (ISS) recipient continued access to payments at the following rates for a limited time:

  • the combined provisional rate of pension on the death of his or her partner; or
  • his or her current rate of pension on the death of a dependent child, or a person for whom he or she was caring.

The payment is designed to assist the widow or widower gradually to adjust her/his financial situation, and to defray costs caused by the bereavement.

 

Current Eligibility Criteria

Bereavement payments may be made to:

  • the widow, widower or carer of a deceased service pensioner;
  • an ISS recipient whose deceased partner was in receipt of an income support supplement, service pension, or certain pensions from Services Australia;
  • the estate of a deceased non-partnered service pensioner;
  • parents whose dependent children have died.

 

Date of Introduction

Re-adjustment allowance (the equivalent of six pays) was introduced in 1968.

Disability Compensation (formerly disability pension) bereavement payments commenced on 19 December 1989.

Service pension bereavement payments (the equivalent of seven pays) were introduced on 1 January 1990.

 

Notes

  1. The amount of bereavement payment where the deceased pensioner has a partner is the equivalent of seven pension instalments. If the deceased pensioner was not partnered, one pension instalment is payable to the estate.
  2. For partnered pensioners, instalments are of the combined provisional rate of pension.
  3. Also payable to the widow or widower of a Disability Compensation Payment recipient.

 

Original Purpose/Intent

The original purpose has not changed.

 

Significant Changes in Criteria or Purpose Since Introduction

1968

Re-adjustment allowance introduced (now bereavement payment).

1990

Bereavement payments introduced from 1 January (one additional instalment to be paid in respect of a deceased service pensioner).

1995

ISS recipients became eligible.

1996

Rules for calculating bereavement payments in ISS cases were amended, resulting in higher payments for some.

 


 

 

Education Entry Payment (EdEP)

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Legislative Authority

Veterans' Entitlements Act 1986
Section 118AA (eligibility)
Section
118AAB (need for a claim)
Section 118AAC (entitlement to and amount of payment)
Section 118AAD (payment to be refunded)

 

Stated Current Purpose/Intent

To assist eligible pensioners with the costs of enrolling in a course of study to develop their skills, obtain a qualification; or to improve their employment prospects.

 

Current Eligibility Criteria

To be eligible, a person must be receiving:

  • an invalidity service pension; or
  • an income support supplement; or
  • a partner service pension, and their partner is receiving an invalidity service pension.

In addition, the person must be:

  • under pension age; and
  • be enrolled or intend to enrol in either a full-time or part-time course of education which is an approved course under the Austudy scheme; and
  • be qualified for financial supplement under the student financial supplement scheme, or if not in receipt of financial supplement, be qualified to receive the Pensioner Education Supplement (PES) paid by Services Australia; and
  • have not already received an EdEP in the current calendar year.

 

Date of Introduction

1995

 

Original Purpose/Intent

There have been no changes to the original purpose/intent.

 

Significant Changes in Criteria or Purpose Since Introduction

Nil.

 


 

 

Veterans Supplement

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Legislative Authority

Veterans' Entitlements Act 1986
Sections 118A & 118B (eligibility)
Sections 118C & 118D (rates)

 

Stated Current Purpose/Intent

The Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 introduced the new Veterans Supplement, payable under the VEA and the MRCA (called MRCA Supplement).  This payment replaced pharmaceutical allowance and telephone allowance for people who were receiving those payments and were not eligible for other payments that incorporated pharmaceutical allowance and telephone allowance.

 

Current Eligibility Criteria

Veterans and dependants can receive the Veterans Supplement if they do not receive an income support payment and meet the following criteria:

  • Have a Veteran Gold Card; or
  • Have a Veteran White Card; or
  • Have a Veteran Orange Card; or
  • Receive a Disability Compensation Payment; or
  • Receive an Orphan's Pension; or
  • Receive a War Widow(er)'s Pension and are under 60 years of age.

Clients that are automatically provided a White Card for Non-Liability Health Care mental health treatment upon transition from the ADF will only become eligible for Veterans Supplement once they use the White Card for treatment.

 

Date of Introduction

20 September 2009.

 

Notes

  1. Veterans Supplement is paid fortnightly (refer to Current Payment Rates).
  2. A person eligible under either section 118A or section 118B but not both receives one payment. A person eligible under both sections will receive two supplements.
  3. Veterans Supplement is indexed each January using CPI only.
  4. The payment is non-taxable and is portable for up to 26 weeks of a temporary absence from Australia.

 


 


 

Pension Bonus Scheme

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Legislative Authority

Veterans' Entitlements Act 1986
Part IIIAB, Sections 45T to 45UU

The Pension Bonus Scheme closed to new registrations from 1 July 2014.  The Work Bonus Scheme replaces the Pension Bonus Scheme.

Stated Intent/purpose

The Pension Bonus Scheme was designed to encourage people of retirement age to remain in the workforce longer by offering a one-off, tax-free lump sum bonus if they deferred receipt of a pension for up to five years after reaching pension age (or qualifying age in the case of deferral of the income support supplement).

 

Eligibility

There are certain criteria that must be met to qualify for the bonus.  The person must be:

  • a veteran with qualifying service or their partner;
  • a war widow or widower eligible for income support supplement; or
  • a veteran in receipt of DVA Disability Compensation Payment or their partner.

They must also:

  • have reached pension or qualifying age;
  • defer claiming income support pension for at least one year when they become eligible;
  • have registered with DVA before 1 July 2014 as a member of the Pension Bonus Scheme;
  • remain in the workforce or be a partner of an eligible person who remains in the workforce;
  • work (or have a registered partner who has worked) a minimum of 960 hours each year; and
  • be an Australian resident.

 

Amount of Pension Bonus Payable

The bonus is calculated as 9.4% of annual basic pension entitlement multiplied by each year of deferred retirement and by each year of deferred take-up of pension, to a maximum of five years.

The actual amount of bonus will vary according to the rate of pension payable at the time of claim and how long pension has been deferred.  A top up bonus may be payable if the person's rate of pension increases due to a reduction in their income or assets in the 13 weeks after the pension bonus is granted.

 

Date of Introduction

The Pension Bonus Scheme commenced on 1 July 1998.

 

Significant Changes in Criteria or Purpose Since Introduction

2008

The top up pension bonus was introduced, which allows payment of an additional amount of bonus if the value of the person's income or assets has decreased within 13 weeks of the initial pension bonus determination.

Introduction of a pension bonus bereavement payment (PBBP) for surviving partners of eligible members who had not claimed the bonus before they died.  The PBBP applies to members who die on or after 1 January 2008.

2009

The Pension Bonus Scheme is closed to people who have not reached pension age or qualifying age before 20 September 2009.

2014

The Pension Bonus Scheme closed to new registrations from 1 July 2014.  Only those registered before 1 July 2014 are eligible to claim a Pension Bonus payment.

 


 

 

Work Bonus

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Last amended 
1 July 2019

Legislative Authority

Veterans' Entitlements Act 1986
Part IIIB, Division 1A Work Bonus

 

Stated Purpose/Intent

The Work Bonus replaces the former Pension Bonus Scheme, as a scheme to encourage and reward older Australians who remain in the paid workforce past their normal retirement age.

Under this income test concession, the first $300 of the person's fortnightly work bonus income is excluded from the income test.  The income concession amount is not subject to indexation.  Where the fortnightly work bonus income is less than $300 per fortnight, an eligible person will accrue the unused portion of the $300 per fortnight income concession to a work bonus bank to offset their income in the future.

 

Eligibility

A person who:

  • is receiving service pension or income support supplement;
  • has reached qualifying age; and
  • receives employment income arising from remunerative work undertaken as an employee in an employer/employee relationship or receives income generated from gainful work such as business earnings from self-employment that meet the personal exertion test.

A person who is receiving service pension or income support supplement at the transitional rate is not eligible for the work bonus.

 

Date of Introduction

20 September 2009

 

Significant Changes in Criteria or Purpose Since Introduction

2009From 20 September 2009 half of the first $500 of the person's fortnightly employment income was disregarded.  This income must be generated as an employee in an employee/employer relationship.
2011

Work bonus discount applies to all of the first $250 of fortnightly employment income. This applies from 28 June 2011.

Unused fortnightly work bonus can be accrued in a work bonus bank, to a maximum amount of $6,500.  Accrued amount in the work bonus bank can be used to offset employment income that exceeds the $250 p/f discount.

2019
From 1 July 2019, the work bonus increased to $300 per fortnight and the work bonus bank increased to $7,800.
Work bonus income was also expanded to include both income from employment and self‑employment income.  Self-employment income must be generated by gainful work and is subject to a personal exertion test

 


 

 

Energy Supplement

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Last amended 
24 November 2020

Legislative Authority

Veterans' Entitlements Act 1986 (Part IIIE and Part VIIAD)
Military Rehabilitation and Compensation Act 2004 (ss 83A, 209A & 238A)
Veterans Children Education Scheme (Part 3A)
Military Rehabilitation and Compensation Act Education and Training Scheme (Part 3A)

 

Stated Purpose/Intent

The energy supplement provides fortnightly or quarterly financial assistance to certain members of the veteran and defence community to assist in paying electricity or gas bills.

 

Eligibility

It is paid automatically to Australian residents receiving one of the following underlying payments or benefits:

  • VEA service pension
  • VEA seniors supplement
  • VEA Disability Compensation Payment
  • VEA war widow(er)'s pension
  • MRCA permanent impairment payment
  • MRCA special rate disability pension
  • MRCA wholly dependent partner payment
  • VCES fortnightly education allowance for secondary or tertiary students
  • MRCAETS fortnightly education allowance for secondary or tertiary students
  • VEA or MRCA Gold Card (holders over qualifying age and not receiving income support)
  • Commonwealth Seniors Health Card (CSHC) holders with grandfathered status

 

Notes

  1. The energy supplement can be paid during the first six weeks of a temporary absence from Australia.
  2. CSHC holders who leave Australia for more than 6 weeks lose entitlement to Energy Supplement.
  3. Energy supplement may be available to certain recipients of income support payments paid under the social security law.
  4. Multiple entitlement exclusions prevent a person receiving more than one energy supplement. However, a person receiving Disability Compensation Payment, MRCA permanent impairment payment or MRCA special rate disability pension, as well as another underlying payment, can receive two energy supplements.

 

Date of Introduction

The clean energy advance commenced on 1 July 2012.

The clean energy supplement (now the energy supplement) commenced on:

  • 20 March 2013 for most payments
  • 1 July 2013 for MRCA permanent impairment payments
  • 1 January 2014 for VCES and MRCAETS fortnightly education allowance for secondary or tertiary students

The clean energy supplement was renamed the "energy supplement" on 20 September 2014 and was no longer indexed.

From 20 March 2017, energy supplement was no longer paid to new CSHC holders. CSHC holders who were entitled to the energy supplement on 19 September 2016 continue to receive energy supplement for as long as they continuously hold a CSHC. Where a person becomes a CSHC holder within 42 days of losing an income support payment, energy supplement will also continue.

Original Purpose/Intent

Clean energy payments (the clean energy advance and the clean energy supplement) were introduced through the Household Assistance Package, which formed part of the Government's Plan for a Clean Energy Future.  The payments commenced effective from 1 July 2012 when the price on carbon commenced.  The price on carbon was revoked in 2013 but the energy supplement continued to be paid at a non-indexed rate.
 

Significant Changes in Criteria or Purpose since introduction

2012

The clean energy advance commenced on 1 July 2012.

The first clean energy advance payments were paid on 14 June 2012, for the period commencing on 1 July 2012. The clean energy advance also required the person to be in Australia.

2013

The clean energy supplement commenced on 20 March 2013 for most underlying payments.

The clean energy supplement commenced on 1 July 2013 for MRCA permanent impairment payments.

2014

The clean energy supplement commenced on 1 January 2014 for VCES and MRCAETS fortnightly education allowance for secondary or tertiary students.

The clean energy supplement was replaced by the energy supplement on 20 September 2014. Indexation also no longer applies from this date.

2017

From 20 March 2017, new CSHC holders were not eligible for the energy supplement.

Grandfathering provisions were established for existing CSHC holders and clients moving from an income support payment to becoming a CSHC holder.

Energy Supplement is payable for the first six weeks of a temporary absence from Australia. For CSHC holders, grandfathered status is removed after 19 weeks temporary absence from Australia.

Veteran Payment

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Last amended 
1 May 2018

Legislative Authority

Veterans' Entitlements Act 1986 (Part IIIA)

Veterans’ Entitlements (Veteran Payment) Instrument 2018 [29]

 

Stated Purpose/Intent

The Veteran Payment is to provide interim income support for current and former members of the Australian Defence Force who may be in financial difficulty, between lodging a claim for a mental health condition under the Safety, Rehabilitation and Compensation Act (Defence-related claims) 1988 (DRCA) or Military Rehabilitation and Compensation Act 2004 (MRCA) and the claim being determined.

Additionally, the payment will provide early access to vocational and psychosocial rehabilitation, including financial counselling.

 

Eligibility

A person is eligible for a veteran payment if the person:

  • is a current or former member of the ADF
  • has made a claim for a mental health condition under either the DRCA or the MRCA and this claim is undetermined

  • is unable to undertake remunerative work for more than eight hours per week

  • is below Age Pension age on the day the claim was made

  • is a resident of Australia and was present in Australia at the time of lodging the claim for a mental health condition.

Veteran payment is also payable to partners who are either:

  • legally married to and living with a current or former member, or

  • living in a de facto relationship with a current or former member

and the member is receiving the veteran payment.

Veteran payment is an income support payment and as such is subject to the income and assets test, unless the person is blind.

 

Date of Introduction

Legislation for Veteran Payment was included as Schedule Two of the Veterans’ Affairs Legislation Amendment (Veteran-centric Reforms No. 1) Bill 2018 which received Royal Assent on 28 March 2018.

The veteran payment was introduced on 1 May 2018 under the Veterans’ Entitlement Act 1986. Prior to this, former members awaiting the determination of their claim for a mental health condition would approach Centrelink for financial assistance.

Veteran Payment was included as a recommendation in the Government’s Response to the Senate Foreign Affairs, Defence and Trade Committee’s Report, The Constant Battle: Suicide by Veterans. The response included several measures to be put in place to reduce suicide and self-harm in the veteran community, with a package of new measures to deliver better support for veterans and their families.


Source URL (modified on 02/02/2015 - 3:22pm): https://clik.dva.gov.au/compensation-and-support-reference-library/intent-paper-2013/income-support-veterans-entitlements-act-1986-vea

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