DVA FACTS
IS05

Social Security Age Pension Paid by DVA

 

61.5

 
 
Social Security Age Pension Overview

 

Introduction

This fact sheet explains what an age pension is, what the eligibility criteria are, who can receive the age pension through DVA, and provides information on associated benefits.  For more information on specific topics contact your nearest DVA office.

 

What is an age pension?

An age pension provides a regular income for people with limited means.  An age pension is paid to a person who has reached pension age, and is subject to income and assets tests.

 

The age pension is paid fortnightly, based on daily entitlements.  The rate of age pension is reviewed twice-yearly, in March and September, in line with movements in the cost of living and/or average wages.

 

Who is eligible?

An age pension is payable to a person who is 65 years old (male) and female who has reached pension age (see the paragraph titled ‘What is pension age’ in this fact sheet); and

·       has 10 years qualifying Australian residence; or

·       has a qualifying residence exemption for an age pension; or

·       was receiving a widow B pension, a widow allowance, a mature age allowance or a partner allowance, immediately before reaching that age; or

·       if the person reached pension age before 20 March 1997- the person was receiving a widow B pension, a widow allowance or a partner allowance, immediately before 20 March 1997.
What is pension age?

Pension age is 65 years for males.

 

Pension age for a female is being raised by six months every two years so that by 1 January 2014, female and male pension ages will be the same.  The table below shows when females qualify.

 

Females other than veterans

Date of Birth

Qualify at

Before 1 July 1944

Eligible

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

 

Age pension available through DVA

Certain veterans and their partners who receive a disability pension from the Department of Veterans’ Affairs can also have their social security age pension paid by DVA.

 

Age pension and service pension

You cannot receive an age pension as well as a service pension from DVA or any other social security pension or benefit (except child-related payments) from Centrelink.

 

Who is eligible to have an age pension paid by DVA?

You are eligible to receive an age pension from DVA, if you are:

·       an Australian veteran who has rendered eligible war service;

·       receive a DVA disability pension;

·       are at least pension age (refer to the section titled ‘What is pension age’ mentioned earlier in this fact sheet);

·       receive a social security age pension, or are eligible to receive it; and

·       do not receive a service pension from DVA or any income support pension other than the Age Pension from Centrelink.

 

An age pension may not be payable because of your income and assets, even if you are eligible (see the section ‘Income and assets tests’ in this fact sheet).
Eligibility for age pension to be paid by DVA - partners

Age pension may be paid by DVA to partners who are:

·       legally married to and living with a veteran

·       legally married to but separated from a veteran

·       living in a marriage-like relationship with a veteran

and the veteran is receiving or is eligible to receive the age pension through DVA.

 

Female partners are eligible if they:

·       receive a social security age pension or wife pension, or are eligible to receive an age pension; and

·       do not receive a service pension from DVA, or any income support pension other than the age pension from Centrelink.

 

Male partners are eligible if they:

·       are at least 65 years old;

·       receive a social security age pension or are eligible to receive an age pension; and

·       do not receive a service pension from DVA or any income support pension other than the age pension from Centrelink.

 

How do you transfer from Centrelink to DVA?

If you are currently receiving an age pension from Centrelink, but would prefer to receive your age pension through DVA, you can apply for payment by lodging Form D0664: Claim for transfer of payment of Centrelink age pension to DVA at your nearest DVA office.  DVA will verify your personal details with Centrelink and arrange for Centrelink to stop your payments.

 

Pension Bonus Scheme

The Pension Bonus Scheme allows you to claim a lump sum bonus if you continue working beyond age pension age and defer claiming the age pension.  For more information refer to Fact Sheet IS 07: Pension Bonus Scheme or contact your nearest DVA office.
How do you claim?

To claim for an age pension through DVA you need to:

·       complete a Claim for Age Pension; 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 DVA06: Proving your identity to DVA – Proof of Identity (POI); and

·       provide us with your tax file number.

 

To apply for the age pension contact your nearest DVA office, where an application form will be tailored to suit your circumstances.

 

Rates of age pension

There are two different rates of age pension:

·       a singles rate — payable to single pensioners, widows, widowers

·       a couples rate — payable to each member of a couple who are living together, whether legally married or living in a de facto relationship.

 

If only one member of a couple receives an age pension, the couples rate of pension is paid.  If a couple need to live apart because of ill-health or during a period of respite care, each member of the couple may be paid at the singles rate.

 

Income and assets tests

The amount of age pension you receive depends on your income and assets.  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 maximum rate of pension.  These limits are known as the income free area and the assets value limit.

 

There are two income free areas:

·       the singles free area

·       the couples free area.
Income and assets tests, continued

If you have dependent children, the income free area increases by $24.60 per fortnight for each dependent child.

 

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 income free area or assets value limit reduces the amount of age pension payable.  The age pension ceases to be paid 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, regardless of who actually receives the income or owns the assets.  Therefore, you are both paid the same rate of pension.

 

Note: For pension purposes, superannuation products are not counted as income producing or an asset until the person who owns the superannuation reaches pension age or makes a withdrawal from the investment.  

For more information about the assessment of superannuation, refer to Fact Sheet IS 93 Superannuation Products – Impact on Social Security Age and Wife Pension.

 

If you are considered to be blind, the age pension is paid free of the income and assets tests and at the maximum rate.

 

Disability pension

The disability pension you receive is income for social security purposes.

 

However, if your pension is reduced or not payable because of disability pension paid to you or your partner, you may be entitled to Defence Force Income Support Allowance (DFISA).  For more information refer to Fact Sheet IS 19: Defence Force Income Support Allowance (DFISA).
Giving away assets or income

You can give away assets up to:

·         $10,000 each financial year, or

·         $30,000 in a rolling 5 year period.

 

These limits apply to singles and couples.  If you give away more than either limit, the excess amount will be counted as an asset under the assets test, and will be deemed to be earning income under the income test, for 5 years from when the asset was given away.

 

These rules apply when:

·   you give away money or property

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

 

However, these rules do not apply to the sale or use of assets to meet ordinary or extraordinary expenses such as ongoing living expenses, unusual medical expenses, a holiday, home improvements or a new car.

 

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;

 

then we will still count that income as if you were actually receiving it.

 

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

If you have a high level of income or assets that prevents you from receiving the age pension under either the income or the assets tests, you may be able to receive age pension through the Pension Loans Scheme.  (for more information refer to Fact Sheet IS 116: Pension Loans Scheme). 

 

If your income is within the limits that would allow you to receive payment of the age pension, but your assets exceed the cut-off limit, you may qualify under the hardship provisions (for more information refer to Fact Sheet IS 117: Hardship).

 

What if you have too much income or too many assets? continued

If you are not receiving an age pension and your income is within the Commonwealth Seniors Health Card income limits, you may be eligible for the Commonwealth Seniors Health Card.  For more information refer to Fact Sheet IS 126: Commonwealth Seniors Health Card.

 

Tax file number

You need to provide your tax file number to DVA.  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 as part of the pension to all age pensioners, to help with the cost of prescriptions

·   rent assistance — payable as part of the pension to age pensioners who pay private rent for their accommodation, subject to minimum rent limits

·   remote area allowance — payable as part of the pension to age pensioners who live in designated remote areas of Australia

·   telephone allowance — payable to age pensioners who are telephone subscribers

·   increased telephone allowance —  payable to age pensioners who are telephone subscribers and also have a home internet connection

·   child-related payments — paid by Centrelink to age pensioners with dependent children

·   utilities allowance – payable to age pensioners.

 

What happens when your claim is decided?

DVA will work out if you are eligible for payment and how much age pension you will be receiving, depending on your income and assets.  When a decision has been made you will be notified by letter.  This will include the date of grant and amount of age pension you will receive.  Your Pensioner Concession Card will be issued at the same time.
What if you are not happy with the decision?

If your claim for an age pension is not approved, or you are not happy with the rate of the age pension, you can contact the DVA office and talk about it.  We can check that all the facts have been considered and tell you why a decision was made.

 

If you still disagree, you can contact an Authorised Review Officer (ARO) who can:

·       take a fresh look at the case;

·       change the decision if it is incorrect;

·       tell you how you can appeal if you still disagree; and

·       tell you how you can appeal to the Social Security Appeals Tribunal (SSAT).

 

Remember, if you do not ask for the decision to be reviewed within 13 weeks of being told about it, you can only get back payments from the date you ask for the decision to be reviewed.

 

Pensioner Concession Card

All age pensioners 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.

 

Is your age pension taxable?

Basic age pension is considered to be income for taxation purposes and is therefore taxable.

 

If your pension is taxable, you will receive a group certificate from DVA at the end of each financial year.  Generally speaking, if the age pension is the only income you receive, you will not have to lodge a tax return.

 

Age pension allowances are not taxable payments.  Disability pension and allowances and war widow’s or widower’s pension are not taxable payments.
Obligations

When you are granted an age pension and periodically after that, you will be notified of your obligations.  You will be required to tell us within 14 days (28 days if you live overseas) of any event or changes to your circumstances that might affect the rate of age pension you receive or your eligibility to receive that pension.  If you become aware that you have received or are to receive a compensation payment you will be required to tell us within 7 days.  These obligations apply equally to trustees.

 

You need to tell DVA within 14 days (28 days if you live overseas) if:

·   your residential situation changes

·   your marital situation changes

·   you receive the maximum rate pension and your income exceeds the 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 age pension

·   you move or travel overseas

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

 

There may be penalties applied in respect of failure to fulfil obligations.  In addition any overpayment caused by a person’s failure to fulfil obligations within the prescribed period are considered recoverable and a penalty interest may be applied.

 

Can you apply for an increase in your age pension?

If you receive a reduced rate pension, you may apply for an increase in your rate of pension at any time there is a change in your circumstances.  You can do this by contacting us by phone, in writing, or in person.

 

Can you receive your age pension overseas?

Yes.  In most circumstances payment of your age pension will continue while you are overseas.  However, you must notify DVA of your intention to travel, even if you are going overseas for a short period.  We will assess your eligibility for continued payment prior to your departure.
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 R&SL 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 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 Form D8601: Freedom of Information Application is available at DVA offices and on our website.

 

Privacy and Confidentiality

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

 

Under confidentiality rules which apply to age pensioners, your personal information is treated as confidential, and it may only be released to your partner or a third party with your consent.

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 fact sheets related to this topic include:

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

·        Pension Bonus Scheme: IS 07

·        Defence Force Income Support Allowance (DFISA): IS 19

·        Pension Rates, Limits and Allowances Summary: IS 30

·        Eligibility for Social Security Age Pension: IS 47

·        Children - Social Security Age Pension: IS 49

·        Renting and Rent Assistance - Social Security Age Pension: IS 75

·        Compensation and your Social Security Age Pension: IS 102

·        Pensioner Concession Card: IS 125

·        Requesting a Review of our Decision - Age Pension: IS 136

·        The things you have to tell us - Social Security Age Pension: IS 138

 

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.