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.

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 pension (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.

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

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 an age pension from Department of Human Services; 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 an age pension from Department of Human Services; 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 Department of Human Services 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 an age pension from Department of Human Services;

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 pension (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.

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

Legislative Authority

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

Stated Current Purpose/Intent

The purpose of DFISA is to effectively exempt disability pension paid under the VEA 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 will be 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 may be payable to people whose social security income support payment is reduced or not payable because of the impact of adjusted disability pension.

Adjusted disability pension means:

• disability pensions paid under Parts II or IV of the VEA;
• dependant pension, which is a small frozen amount paid to dependants of disability pensioners, not granted since 1986;
• temporary incapacity allowance; 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

Nil

Legislative Authority

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

Veterans' Entitlements (DFISA-like Payment) Regulations 2005

Stated Current Purpose/Intent

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

Adjusted disability pension is counted as income for the purposes of the following income support payments administered by Department of Education Science and Training (DEST) and 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).

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

• Financial payment that is 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 means:

• disability pensions paid under Parts II or IV of the VEA;
• dependant pension, which is a small frozen amount paid to dependants of disability pensioners, not granted since 1986;
• temporary incapacity allowance; and
• permanent impairment payments and special rate disability pension paid under the MRCA.

The amount of DFISA-like payment is calculated in the same way as the calculation for DFISA.  It is 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 may be payable to a person who is receiving or is eligible to receive income support payments from DEST if their payment is reduced because of the inclusion of adjusted disability pension in the assessment.

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

Date of Introduction

20 September 2004

Significant Changes in Criteria or Purpose Since Introduction

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

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.

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 Department of Human Services; 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. The card is issued annually and entitles cardholders to a quarterly payment of seniors supplement to assist with the payment of energy, telephone, internet, rates, water and sewerage expenses.
2. CSHC holders are also entitled to pharmaceuticals at the concessional rate under the Pharmaceutical Benefits Scheme, the Medicare Safety Net threshold and concessional fares on the Great Southern Railways.

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

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

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 has assets which reduce, or cancel payment of, service pension or income support supplement, and where the assets are in a form which is difficult to convert into cash to cover the ordinary expenses of living.

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 good reasons, unwilling to re-arrange his or her assets.

The pension loans scheme allows a person to receive a payment in the form of a loan. The amount payable is 150% of the maximum pension rate.  This payment attracts interest and is generally repayable from the person's estate.  The loan may be paid for a short period while the person's assets are being re-arranged, or for an indefinite period.

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).

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

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 pension
• 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 Department of Human Services 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 Department of Human Services.

As at September 2014, the maximum amount that can be advanced as a lump sum is $1,209.15 or 6% of the annual pension rate, whichever is the lesser amount.  The minimum amount that can be advanced is $303.85.

From July 2010, pensioners can apply for multiple advances in a given year as long as the total is at least half their fortnightly pension amount and does not exceed 1.5 times 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 pensioners 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

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

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 the Family Assistance Office. 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

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 the Department of Human Services.

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

Legislative Authority

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

Stated Current Purpose/Intent

Rent assistance is a non-taxable amount payable to service pensioners and income support supplement recipients with limited income to help cover the cost of private rental accommodation.

Current Eligibility Criteria

To be eligible, a service pensioner or ISS 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 Department of Human Services, nor be a sub-tenant in public housing.

Rent assistance is paid at higher rates for pensioners with children and is paid by the Department of Human Services with Family Tax Benefit.

Rent assistance is calculated separately and added to other entitlements before application of the income and assets tests.  Disability pension, under a separate rent test, is taken as income in determining the rate of rent assistance payable.

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

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 Department of Human Services;
• 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 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 pensioner.

Original Purpose/Intent

The original purpose has not changed.

Significant Changes in Criteria or Purpose Since Introduction

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 Department of Human Services; 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.

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.  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

All veterans who are in receipt of disability pension but are not in receipt of income support, all war widow(er)s who are not in receipt of income support, all Gold, White and Orange Card holders with no income support payment from either DVA or Centrelink, as well as those persons receiving DVA Orphans Pension are eligible for Veterans Supplement.

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 will be portable for up to 26 weeks of a temporary absence from Australia.

Legislative Authority

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

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 pension 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

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 recives income genertaed from gainful work such as 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

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 pension
• 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 19 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 pension, 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 client 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

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.

Additional 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.