|
|
|
|
|
This topic provides information on the following:
DFISA is paid by the DVA on the DVA payday (i.e. each second Thursday). It commenced with effect from 20 September 2004.
DFISA is payable to a person whose social security pension or benefit is reduced (including to nil) because of the inclusion of DVA ADP as income in the assessment of that pension or benefit. This is the case whether the ADP is paid to the person or the person's partner. ADP is defined in section 118NA of the VEA and includes the following:
DFISA is not payable to a person in relation to a social security pension or benefit if the financial hardship provisions of the SSAct apply to the person in relation to that pension or benefit. Nor is it payable to a person on the ground that the person's parent is receiving ADP.
A person seeking access to DFISA needs to claim and qualify for a social security pension or benefit. There is no claim for DFISA that is separate from the claim for the social security pension or benefit in respect of which DFISA may be paid. In most cases, DFISA is automatically payable to a person who qualifies for a social security pension or benefit and whose rate of that pension or benefit is reduced, including to nil, by the inclusion of ADP in the assessment.
Any social security pension or benefit, the rate of payment of which is reduced as a result of the inclusion of an amount of ADP in income under the social security income test, will attract DFISA. Such social security pensions or benefits currently may include the following payment types:
|
Payment Type under the SSAct |
SS Guide reference |
|
Age pension |
3.4.1.10 Qualification for Age |
|
Austudy |
3.3.3.10 Qualification for Austudy |
|
Bereavement allowance |
3.4.9.10 Qualification for BVA |
|
Carer payment |
3.6.4.10 Qualification for CP |
|
Disability support pension |
3.6.1.10 Qualification for DSP - 30 Hour Rule 3.6.1.12 Qualification for DSP - 15 Hour Rule |
|
3.3.2.10 Qualification for MAA after 1 July 1996
1.2.2.20 Mature Age Allowance (MAA) & former payment Mature Age Partner Allowance (MAPA) - Description | |
|
Newstart allowance |
3.2.1.10 Qualification for NSA |
|
Parenting payment |
3.5.1 PP - Qualification & Payability |
|
Partner allowance |
3.3.1.10 Qualification for PA |
|
Sickness allowance |
3.6.5.10 Qualification for SA |
|
Special benefit |
3.7.1.10 Qualification for SpB |
|
Special needs pension |
3.4.6.10 Qualification for SpNP |
|
Widow allowance |
3.4.3.10 Qualification for WA |
|
Widow B pension |
3.4.4.10 Qualification for WidB |
|
Wife pension (Age) |
3.4.2.10 Qualification for WP |
|
Wife pension (DSP) |
3.4.2.10 Qualification for WP |
|
Youth allowance |
3.2.3.10 Qualification for YA |
A person's rate of DFISA is equal to the difference between the rate of social security pension or benefit the person actually receives under the social security law and the rate they would receive if ADP:
Details of the Method Statements used to calculate the rate of DFISA are contained in section 118NC of the VEA.
Some people:
Such people are commonly referred to as DFISA-only recipients. They are taken to be receiving the particular pension or benefit for which they qualify and they remain subject to the obligations associated with that pension or benefit. When seeking access to any supplementary payments and non-financial benefits (commonly referred to as add-ons) available to recipients of the pension or benefit for which they qualify, they automatically satisfy any requirement that they be receiving that particular supporting pension or benefit. Such supplementary payments and non-financial benefits may include one or more of the following:
DFISA-only recipients are also taken, under the family assistance law, to be receiving the social security pension or benefit which their DFISA supplements. They will therefore be exempt from the FTB Part A income test and the CCB income test.
Act reference: FAAct Schedule 1 clause 38L Application of income test to pension and benefit recipients and their partners, Schedule 2 clause 7 Method of calculating taxable income %
A person to whom an amount of DFISA is payable by DVA may, under section 118NB(2) of the VEA, elect not to receive that amount. If the person does make such an election, the person is still taken to be receiving the underlying social security pension or benefit, which the DFISA would have supplemented had it been paid. This may enable the person to access supplementary payments and non-financial benefits under the social security or family assistance law that are dependent upon the person being in receipt of the supporting social security pension or benefit.
A review of the social security pension or benefit which DFISA supplements may lead to a reassessment of the person's rate of DFISA.
DFISA was introduced with the passage of the Veterans' Entitlements (Clarke Review) Act 2004. Schedule 2 of that Act inserted Part VIIAB on DFISA into the VEA. It also made consequential amendments to the FAAct, the Income Tax Assessment Act 1936 and the Income Tax Assessment Act 1997 and the SSAct.
Act reference: SSAct section 23(1D) If, on a day that is on or after 20 September 2004…
FAAct section 3(1)-'receiving', refer to paragraph (a)
Policy reference: SS Guide 4.3.5.71 DVA DFISA & the PLS, 4.3.5.72 DFISA Bonus & DFISA Bonus Bereavement Payment & the PBS, 4.3.5.73 DVA DFISA & Bereavement Payments
FA Guide 1.1.D.65 Defence Force Income Support Allowance, 1.1.R.05 Receiving income support
_______________________________________________________
Last reviewed: 30 April 2012
