Chapter 10 - Payment of Pensions
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When, how and where your pension is paid
Direct deductions from your pension
How to change payment arrangements
When, how and where your pension is paid
Your pension is paid every second Thursday. If a pension payday happens to fall on a national public holiday, your pension will be paid earlier.
Your pension may be paid:
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Directly into your bank, building society or credit union account - this is the fastest and safest way to pay your pension. The account can be in your own or joint names and you can change the account details at any time with proof of your identity. Your account must be held with an Australian financial institution.
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Direct to an aged care home or hospital - A representative from the aged care home or hospital will need to be appointed as an agent if you require your pension to be paid directly to the facility. You can arrange for the agent to take out fees and other expenses and the money left will be paid directly to you.
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To another person nominated by you - you can nominate, in writing, another person to be your agent. We can pay the pension into an account that is in the name of your agent.
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To a trustee - if a pensioner is unable to manage their affairs, an application in writing may be made for a trustee to be appointed. The trustee would have full control of the pensioner's pension and must act in the pensioner's interests. The trustee can be the pensioner's relative, a friend, solicitor, a company, a representative from the aged care home or hospital or the Public Trustee.
- To two separate accounts - a pensioner or agent can specify an amount to go direct to one account with the balance paid to another account, provided the accounts are in the person's or agent's names. For further details please contact your nearest DVA office.
Note: It is important that you seek advice before signing your pension over to anyone. For information about Power of Attorney or Enduring Power of Attorney or Guardianship, contact the Public Trustee in your State. Note that state arrangements do not automatically allow DVA to change your pension payment arrangements, and an agent or trustee must be appointed.
| Obligations |
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| Your obligations if you are a trustee, agent or carer |
| If you are the trustee, agent for or carer of a pensioner, you need to tell us immediately if that person dies or you cease to act on behalf of that person. |
Direct deductions from your pension
You can request the transfer of money directly from your fortnightly DVA payments to pay certain bills. This service is known as direct deduction.
For more information on the direct deduction facility and which organisations/bill payments are included, see Chapter 6 Benefits and Services.
| Fact Sheet: PAT03 |
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| Direct Deductions From Your Pension (PDF version) |
| Direct Deductions From Your Pension (HTML version) |
How to change payment arrangements
Phone
your nearest DVA office and be prepared
to provide proof of your identity. You must personally advise of your
own details for a change in payment arrangements. If the payment change
is for yourself and your partner both of you will have to speak to a DVA
officer. If notifying of the change in writing you will need to specify
who the change in payment arrangements is for.
Try to give us at least one week's notice and do not close the old account until you have confirmed that the pension is being paid into the new account.
There are some specific circumstances where a third party, such as an agent, trustee or relative can advise of change of payment details, where there is a third party authority in place, and after the person has undergone a security check. For social security age pension (paid by DVA), the representative must be nominated as a payment nominee.
| Fact Sheet PAT01 |
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| How Your Pension can be Paid (PDF version) |
| How Your Pension can be Paid (HTML version) |
Payment of Arrears
When you are granted a pension or your pension is increased retrospectively, we will write and let you know what arrears are payable and when they will be paid. Keep the letter handy if you need to phone us and always check your bank account first.
If you have an outstanding overpayment, the calculated arrears will be offset against the overpayment prior to any payment being made. Depending on the type of pension granted or varied, arrears may also be held to adjust any amount that may be owed to Centrelink.
In some circumstances we hold your arrears while we check
with Centrelink about any possible dual receipt of payments. Also if you
receive a social security pension or benefit as well as a disability pension
from DVA and your disability pension is increased, we will need to let
Centrelink know as there may be an adjustment in your social security
pension or benefit and if so, your Defence Force Income Support Allowance (DFISA) may also be adjusted.
Arrears will be sent out as a separate payment, not necessarily on a
payday.