DVA FACTS
IS03

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Service Pension and Income Support Supplement

Income Support Supplement Overview

 

Introduction

This fact sheet explains what income support supplement (ISS) is, what the eligibility criteria are, and provides information on associated benefits.  For more information on specific topics contact your nearest DVA office.

 

What is income support supplement (ISS)?

ISS provides a regular income in addition to the war widow’s or widower’s pension for Australian war widows and widowers with limited means.  This includes wholly dependent partners under the Military Rehabilitation and Compensation Act 2004 (MRCA) with limited means.  The payment is subject to an income and assets test.

 

Eligibility for the income support supplement

To be eligible for ISS you must be an Australian war widow or widower or a wholly dependant partner under the MRCA.

 

To make a proper claim for ISS you must be:

·        an Australian resident; and

·        in Australia at the time of lodging your claim;

or you must be:

·        residing outside of Australia; and

·        receiving a service pension or a social security pension; and

·        eligible for ISS if that pension were cancelled.

 

Even if you meet the eligibility criteria, ISS may not be payable because of your income and assets (see the section titled ‘Income and assets tests’ in this fact sheet).  Blind ISS recipients are exempt from the income and assets tests.

 
Eligibility for the income support supplement - invalidity

ISS may be granted on the basis of invalidity if you are permanently incapacitated for work.  Invalidity ISS paid to a person who is under age pension age is non-taxable income (see next section titled ‘What is age pension age?’).

 

The criteria for permanent incapacity are:

·        you are permanently blind in both eyes (even if working); or

·        you have a physical, intellectual or psychiatric disability; and

·        the disability(ies), assessed under the Impairment Tables in Schedule 1B of the Social Security Act 1991, is assessed at 20 points or more; and

·        you are unable to work for at least 30 hours per week; and

·        the disability(ies) alone prevent you from working for the next 2 years.

 

What is age pension age?

Age pension age for a male is 65 years of age.

 

Age pension age for a female is being raised by six months every two years so that by 1 January 2014, female and male age pension ages will be the same.  The table below shows age pension age for females based on the date of birth.

 

Age pension age for females

Date of Birth

Age pension age

Before 1 July 1944

Already age pension age

1 July 1944 to 31 December 1945

63.5

1 January 1946 to 30 June 1947

64

1 July 1947 to 31 December 1948

64.5

1 January 1949 and later

65

 

Are you eligible for the income support supplement if you receive a war widow’s or widower’s pension from another country?

If you are eligible for an Australian war widow’s or widower’s pension but receive a war widow’s or widower’s pension from another country, you may be eligible for ISS.

 

However, ISS is not payable if you are the recipient of a war widow’s or widower’s pension paid by a country other than Australia and you do not have eligibility for an Australian war widow’s or widower’s pension.  You should contact your nearest Centrelink office to find out if you are eligible for an income support payment under social security law.
Is income support supplement payable to partners of war widows, widowers or wholly dependant partners?

ISS can only be paid to Australian war widows and widowers and wholly dependant partners.  If you are the partner of a war widow, widower or wholly dependant partner, you are not eligible for ISS.

 

Income support supplement and age pension

You cannot receive ISS from DVA as well as a service pension, age pension or any other social security pension or benefit.  You can, however, receive the Family Tax Benefit and/or Child Care Benefit from the Family Assistance Office if you are eligible.

 

ISS was introduced in order to enable Australian war widows and widowers to receive all their payments from DVA.  Social security pensions and allowances are not payable to Australian war widow or widower pension recipients or wholly dependant partners.

 

Pension Bonus Scheme

The Pension Bonus Scheme allows certain veterans, partners, widows and widowers to claim a one off, tax-free lump sum bonus if they:

·        continue working beyond pension age or qualifying age; and

·        defer claiming the age pension, service pension or ISS after reaching the relevant age.

 

It is important to have registered if you wish to participate in this scheme.  For more information refer to Fact Sheet IS 07: Pension Bonus Scheme and Fact Sheet IS 08: Participating in the Pension Bonus Scheme, or contact your nearest DVA office.

 

How do you claim ISS?

To claim ISS you need to:

·       complete a Form D0529 Claim for Income Support Supplement by a War Widow or Widower; and

·       complete any other forms in relation to your personal, residential and financial circumstances; and

·       provide us with sufficient documentation to prove your identity.  For more information refer to Fact Sheet DVA 06: Proving your identity to DVA – Proof of Identity (POI); and

·       provide DVA with your tax file number.
How do you claim ISS?, continued

To apply for ISS, contact your nearest DVA office, where an application form will be tailored to suit your circumstances.  Application forms are also available from some ex-service organisations and online at:
http://www.dva.gov.au/clientforms/default.htm

 

Automatic grant of war widow’s or widower’s pension and income support supplement

You will not need to lodge an application form for the war widow’s or widower’s pension if your former partner was:

·        an ex-prisoner of war; or

·        receiving the Extreme Disablement Adjustment (EDA), intermediate or special rate of disability pension; or

·        in receipt of an increased rate of disability pension due to being a double amputee at the time of death.

 

In these circumstances the war widow’s or widower’s pension will be granted automatically.

 

If your war widow’s or widower’s pension is granted automatically and you were both receiving a service pension or age pension paid by DVA, that pension will be cancelled and ISS will be automatically granted if you satisfy the income and assets tests.

 

Rate of income support supplement

The maximum amount of ISS payable to both singles and members of a couple is currently $167.80 per fortnight (the ceiling rate).

 

The ceiling rate of ISS is indexed in March and September each year to take into account changes to the cost of living and/or average wages.

 

The ceiling rate of ISS may be increased where you receive a pension under Part II or Part IV of the Veterans’ Entitlements Act 1986 (VEA) or under the MRCA, and that pension is reduced by compensation.

Rate of income support supplement, continued

To work out your rate of ISS refer to the following fact sheets:

IS 33: How your pension is worked out – an overview

IS 37: How to work out your rate of ISS – singles

IS 38: How to work out your rate of ISS – couples

 

Income and assets tests

The amount of ISS you receive depends on your financial circumstances.  The pension is calculated under two separate tests – the income test and the assets test.  The test paying the lower rate of pension is the one that is applied.

 

You can have a certain amount of income and assets, and still receive the ceiling rate of ISS.  These amounts are known as the adjusted income free area and the assets value limit.

 

There are two adjusted income free areas:

·        the singles free area

·        the couples free area.

 

If you have dependent children, the adjusted income free area may be increased by $24.60 per fortnight for each dependent child.

 

When working out your rate of ISS, your war widow’s or widower’s pension and any disability pensions paid by other governments are counted as income for pension purposes.  If you are a member of a couple and your partner receives a war widow’s or widower’s pension, or disability pension from another government then those pension(s) are also counted as income for ISS purposes.

 

Note 1:        Any compensation for a member’s death payable to you or your partner under section 234(1)(b) of the MRCA is counted as income.

 

Note 2:        Any MRCA permanent impairment compensation payable to you or your partner is not counted as income.
Income and assets tests, continued

There are four assets value limits:

·        singles who own their home

·        singles who do not own their home

·        couples who own their home

·        couples who do not own their home.

 

Income or assets above the adjusted income free area or assets value limits reduce the amount of ISS payable.  The ISS ceases to be payable when income or assets exceed certain cut-off limits.

 

If you are a member of a couple, you are both treated as if you each receive half your combined income and you each own half your combined assets.  This occurs regardless of who actually receives the income or owns the assets.

 

If you are considered blind for ISS purposes, the ISS is paid free of the income and assets tests and at the ceiling rate.  However, it should be noted that if you are in a residential aged care facility your income will count when working out the fees that you pay.

 

Effect of DVA disability pension on rate of ISS rent assistance

DVA disability pension is not included in the assessment of your ISS.  However, if you or your partner receive DVA disability pension, it may affect the amount of any rent assistance payable.

 

For more information on rent assistance please refer to Fact Sheet IS 74: Renting and Rent Assistance.

 

Giving away assets or income

You can give away assets up to:

·        $10,000 each financial year, but no more than

·        $30,000 over a rolling five-year period.

 

Both limits apply whether you are single or a member of a couple.  If you give away more than either limit, the excess amount above either limit will be counted as a financial asset under the assets test, and will be deemed to be earning income under the income test, for 5 years from when the assets were given away.

Giving away assets or income, continued

If you give away assets over those limits during the 5 years before ISS is granted, the excess amount above either limit will be counted as an asset and will be deemed to be earning income, for up to 5 years from when the asset was given away.

 

These rules apply when:

·        you give away money or property; or

·        you transfer money or property to, for example a family member; or

·        you sell property or other assets for less than they are worth.

 

However, these rules do not apply to the sale or reduction of assets as long as you receive adequate consideration in money or money’s worth for the asset.

 

For pension purposes, we will still count income as if you were actually receiving it if you choose not to receive income (for instance, you choose not to receive a foreign pension to which you are entitled) in order to obtain:

·         pension; or

·         a higher rate of pension.

 

What if I have too much income or too many assets?

If you have a high level of income or assets that prevents you from receiving ISS under either the income or the assets test, you may be able to receive ISS through:

·        the Pension Loans Scheme; or

·        the Hardship Provisions.

 

For more information refer to Fact Sheet IS 116: Pension Loans Scheme or Fact Sheet IS 117: Financial Hardship or contact your nearest DVA office.

 

If your assets exceed the ISS cut-off limit, but your adjusted taxable income is within the seniors health card income test limits and you are of qualifying age, you may be eligible for the Commonwealth Seniors Health Card.

 

For more information refer to Fact Sheet IS 126: Commonwealth Seniors Health Card or contact your nearest DVA office.
Tax file number

You need to provide your tax file number to DVA so that we can ensure that ISS is only paid to eligible persons.  The tax file number is used in the data matching program, where we compare our records with those of other government agencies, such as the Australian Taxation Office or Centrelink.

 

If you do not have a tax file number and are not eligible for an exemption you will need to apply for a tax file number through the Australian Taxation Office.

 

Allowances

There are a number of allowances payable to eligible pensioners:

·        pharmaceutical allowance — payable above the ceiling rate to war widows and widowers and wholly dependant partners to help with the cost of prescriptions;

·        rent assistance — payable above the ceiling rate to ISS recipients who pay private rent for their accommodation, subject to minimum rent limits.  For more information refer to Fact Sheet IS 74: – Renting and Rent Assistance;

·        remote area allowance — payable above the ceiling rate to ISS recipients who live in designated remote areas of Australia;

·        telephone allowance — payable to war widows and widowers and wholly dependant partners who are telephone subscribers;

·        increased telephone allowance — payable to war widows and widowers and wholly dependant partners who are telephone subscribers and also have a home internet connection; and

·        utilities allowance — payable to ISS recipients to help with the payment of energy, rates, water and sewerage.

 

Note:           DVA does not pay Family Tax Benefit.  If you have dependent children and wish to inquire about this benefit you should contact the Family Assistance Office on 136 150.

 

What happens when your claim is decided?

DVA will determine whether you are eligible and then work out how much ISS you will be receiving based on your personal circumstances.  When a decision has been made you will be notified by letter.  This will include the decision and, if applicable, the date of grant and amount of ISS you will receive.  Your pensioner concession card will be issued at the same time.
What happens when your claim is decided? continued

Your ISS may be backdated to the grant date of your war widow’s, widower’s or wholly dependant partner’s pension if the social security payment or benefit you were previously receiving is cancelled as a result of the commencement the of war widow’s, widower’s or wholly dependant partner’s pension.

 

What if you are not happy with the decision?

If your claim for ISS is not approved, or if you are not happy with the rate of ISS, you have the right to ask that we review the decision.  You may apply to have the decision reviewed by a Review Officer.  If you decide to apply for a review, you must do so within 3 months of receiving the letter notifying you of our decision in relation to your income support pension.  Your request for a review must set out in writing your reasons for seeking the review.

 

If you are dissatisfied with any aspect of the Review Officer’s decision, you may apply in writing to the Administrative Appeals Tribunal for a review of that decision.  Your application should set out the reasons for your appeal and should be lodged with the Tribunal within 3 months of the date you receive the Review Officer’s decision in relation to your income support pension.

 

Pensioner Concession Card

All ISS recipients receive a pensioner concession card.  This card entitles pensioners to a range of Australian Government, State and local government benefits and concessions.  These concessions vary from State to State, and are determined by the authorities providing the concessions.

 

Contact your nearest DVA office for a fact sheet explaining the concessions available in your State.

 

Health care

As a war widow or widower or wholly dependant partner, you are entitled to treatment and health services for all conditions, at the expense of the Department.  This health care is provided through the Gold Card.

 

For further information on the Gold Card refer to Fact Sheet HSV 60: Using the Repatriation Health Card — For All Conditions (Gold).

 

For information regarding who is eligible for treatment under the MRCA, refer to Fact Sheet MRC 22: Treatment.
Is your income support supplement taxable?

ISS is taxable except when it is granted on the grounds of invalidity and you have not yet reached age pension age.

 

Generally speaking, if your only income is the ISS and war widow’s, widower’s or wholly dependant partner’s pension, you will not be required to lodge a tax return.

 

Allowances payable with the ISS are not taxable.  The disability pension and war widow’s or widower’s or wholly dependant partner’s pension and their associated allowances are not taxable payments.

 

If your pension is taxable, you will receive a payment summary from DVA at the end of each financial year.

 

Your obligations

As an ISS recipient you have a responsibility to keep us informed of changes that may affect the amount of pension you receive.  These responsibilities are described in our fact sheets, ‘You and Your Pension’ and letters to you as ‘obligations’.

 

In order to meet your obligations, you need to tell DVA within 14 days (28 days if you live overseas or receive remote area allowance) if:

·        your residential situation changes;

·        your marital situation changes;

·        you receive the maximum rate pension and your income exceeds the adjusted income free area and/or your assets exceed the assets value limit;

·        you receive a reduced rate pension and your income and/or assets exceed the limits stated in our most recent letter to you about your ISS;

·        you move or travel overseas; or

·        there is any other change that would affect the rate of your ISS.

 

Fulfilling your obligations within the specified time period ensures your ISS is paid at the correct rate.
Can you apply for an increase in your income support supplement?

Yes.  If you receive ISS at a reduced rate you may apply for an increase in your rate of pension any time there is a change in your circumstances.  You can do this by contacting your nearest DVA office.

 

Arranging your affairs

It is advisable to keep all your important papers, such as wills, birth certificates, and mortgage papers, in a safe place known to family and friends.  A folder containing information to assist you in arranging your affairs, called Planning Ahead — A Guide to Putting Your Affairs in Order, is available from DVA or ex-service organisations such as the RSL or Legacy.

 

Bereavement Payments

Additional financial assistance, in the form of a bereavement payment and/or a funeral benefit, may be provided to the surviving partner or to a pensioner’s estate immediately after the death of a pensioner, or to the parent(s) in respect of the death of a dependent child.

 

Freedom of information

Under the Freedom of Information Act 1982 (FOI) you may seek access to documents held by DVA, including information about yourself.  This means that you can look at any of the files relating to you held by DVA and ask for copies of documents.

 

You need to apply in writing and there is an application fee of $30.00.  However, the fee does not apply if the documents you need relate to claims for, or increases in your, pension.  The application form D8601 Freedom of Information Application for Access to Documents is available at DVA offices and on our website.

 

Privacy

The Privacy Act 1988 governs the collection and handling of personal information by Australian Government agencies, including DVA, and the process is overseen by the Privacy Commissioner to ensure the rights of individuals are protected.
Oral advice

While we make every effort to ensure that you are given accurate information, it is important that you seek written confirmation of oral information or advice before making any major decisions based on that information.

 

We continually strive to improve the level of service you receive and make this request as an added safeguard for you.

 

Other fact sheets

Other related to this topic include:

·        Proving your identity to DVA – Proof of Identity (POI): DVA 06

·        War Widow’s/Widower’s and Orphan’s Pension: DP 60

·        Using the Repatriation Health Card — For All Conditions (Gold): HSV 60

·        How to Claim Income Support Supplement: IS 04

·        Pension Bonus Scheme: IS 07

·        Pension Bonus Estimator: IS 10

·        Telephone Allowance: IS 13

·        Income Support Allowances: IS 14

·        Utilities Allowance: IS 16

·        Income Support Supplement Limits: IS 24

·        Income Supplement Rates and Limits Summary: IS 26

·        How your pension is worked out — an overview: IS 33

·        How to work out your rate of ISS — singles: IS 37

·        How to work out your rate of ISS — couples: IS 38

·        Renting and Rent Assistance: IS 74

·        Financial Hardship: IS 117

·        Pensioner Concession Card: IS 125

·        Commonwealth Seniors Health Card: IS 126

·        Income Support Supplement Ready Reckoner for Singles: IS 167

·        Income Support Supplement Ready Reckoner for Couples: IS 168

·        Compensation for Dependants – Wholly Dependent Partners of Deceased Members and Former Members: MRC 14

·        Treatment (MRCA): MRC 22
More information

All DVA fact sheets are available on request from any DVA office or on the DVA website at www.dva.gov.au/factsheets/default.htm

 

If you need more information about this topic, contact your nearest DVA office or visit the DVA website at www.dva.gov.au

 

You can telephone DVA for the cost of a local call* on:

 

133 254 - general inquiries

1800 555 254 - non-metropolitan callers.

 

Note:       *If you use a mobile phone, calls may be more costly.  You are advised to use a normal phone (a landline phone) when ringing these numbers.