13.6.5 Income Support Bonus
The Income Support Bonus is paid every six months and is to assist with cost of living pressures. The Income Support Bonus is paid to eligible DVA clients who receive an education allowance under the VCES or the MRCAETS.
The Department of Human Services did make payments of the Income Support Bonus but this ceased in December 2016, with the last payment being September 2016. These were to those in recipient of Newstart Allowance, Sickness Allowance, Youth Allowance, Austudy, ABSTUDY, Special Benefit, Parenting Payment Single, Parenting Payment Partnered, Transitional Farm Family Payment and the Exceptional Circumstances Relief Payment.
13.6.5.1 Eligibility
DVA clients eligible to receive the Income Support Bonus must be:
No claim is required to be lodged for the Income Support Bonus
13.6.5.2 Receiving the Income Support Bonus
The Income Support Bonus is paid to the person or persons receiving the education allowance and is automatically paid into their bank account.
If a shared care arrangement exists for the payment of the education allowance (for separated parents), those proportions will be applied to the Income Support Bonus.
Amounts
The current Income Support Bonus amount can be found in the payment rates chart [1].
All Education Schemes students are considered and paid at the ‘single’ rate.
It is paid every six months in late March and September. These amounts increase in line with the Consumer Price Index. Indexation information can be found on the AustLII website [2].
Tax and Income Testing
The Income Support Bonus is tax-free, not subject to a means-test and is not included as income for income test purposes.
13.6.5.3 Department of Human Services (DHS)
The Income Support Bonus paid by DHS (now known as Services Australia) ceased in December 2016, with the last payment to their clients being Septemer 2016. The information below is for historical purposes only.
Income Management
The Income Support Bonus is not Income Managed for DVA clients in receipt of an education allowance under the VCES or MRCAETS as their education allowance (ie: their primary payment) is not subject Income Management.
See DVA Factsheet: Welfare Payment Reforms IS150 [3]
Defence Force Income Support Allowance (DFISA)
DHS clients whose social security payments were reduced to nil because their DVA Disability Compensation Payment (previously known as Disability Pension) was included in the means-test but received DFISA, were eligible for the Income Support Bonus (as though they were in payment of their social security payment) from DHS.
Despite the DFISA name including the word ‘allowance’, the eligibility for the Income Support Bonus was derived from the social security payment, not DFISA itself.
DFISA was no longer needed from 1 January 2022 because Disability Compensation Payments became exempt income for social security payment assessment purposes.
13.6.5.4 Recoveries
The Income Support Bonus paid by DHS ceased December 2016, with the last payment being September 2016.
Only one Income Support Bonus payment can be paid to a student or parent in relation to a test date (20 March or 20 September).
The following are examples of when a payment is recovered.
1. If both DVA and DHS paid the Income Support Bonus to a student or parent in relation to a test date, DHS would recover the additional payment.
2. If DVA pays two Income Support Bonuses by mistake to a student or parent in relation to a test date, DVA would recover the additional payment.
3. If a client provides fraudulent information to DVA in relation to their education allowance (on which the Income Support Bonus is paid) such as eligibility status or change of circumstances, DVA would recover the payment.
Income Support Bonus paid by DVA will not be used to recover other debts the client may have outstanding with DVA or DHS.
13.6.5.5 Legislative References
DHS clients’ social security legislation was amended by the:
Similar amendments were made to the MRCAETS and the VCES via the:
The DHS Income Support Bonus ceased December 2016; with the last payment being September 2016. The authority for this was from the:
which received Royal Assent 5 September 2014.
Links
[1] https://clik.dva.gov.au/current-rates
[2] http://www5.austlii.edu.au/au/legis/cth/consol_act/ssa1991186/
[3] http://factsheets.dva.gov.au/factsheets/