Australian Government, Department of Veterans' Affairs
Pensions

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Chapter 5 - Your Obligations

      Obligations for war widows and widowers receiving the income support supplement

      If you receive the maximum rate of pension

      If you receive a reduced rate service pension or social security age pension (paid by DVA) or income support supplement

This chapter is about:

  • your legal obligations

  • what you need to tell us

  • when you have to tell us of changes to your financial institution accounts

  • what you do not need to tell us

in relation to your income support pension.

This chapter summarises the events and changes of circumstances you need to tell us about within 14 days (28 days if you live overseas or receive remote area allowance). For social security age pensioners (paid by DVA) the timeframes for notification vary in some circumstances. For example, if you receive a remote area allowance you have 14 days to notify of changes.

Throughout this guide we have provided examples of changes that might affect the payment of your pension.

We have grouped these examples into three main areas:

It is very important that you read your obligations and ask us about anything you do not understand.

You can tell us about events or changes to your circumstances that might affect your pension by:

  • ringing us;
  • faxing us;
  • writing to us; or
  • visiting any of our offices.

Section 54 of the Veterans’ Entitlements Act 1986

Under section 54 of the Veterans’ Entitlements Act 1986, the Secretary of DVA may issue a notice to income support pensioners, requiring them to notify the Department within a specified time, of:

  • events or changes of circumstances that occur; and
  • events or changes of circumstances that are likely to occur;

that might affect the payment of their income support pension.

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Sections 67 and 68 of the Social Security (Administration) Act 1999

Under section 67 of the Social Security (Administration) Act 1999, an officer of DVA, as delegate of the Secretary of Family and Community Services, may issue a notice to a veteran or partner who is claiming a social security age pension (to be paid by DVA), requiring them to notify DVA within a specified time, of:

  • events or changes of circumstances that occur; and
  • events or changes of circumstances that are likely to occur;

that might affect the payment of their income support pension.

Under section 68 of the Social Security (Administration) Act 1999, an officer of DVA, as delegate of the Secretary of Family and Community Services, may issue a notice to a social security age pensioner (paid by DVA), requiring them to notify DVA within a specified time of:

  • events or changes of circumstances that occur; and
  • events or changes of circumstances that are likely to occur;

that might affect the payment of their income support pension.

Penalties

There are penalties for failing to fulfil your obligations or for providing false or misleading information. If you fail to comply with your obligations and your pension is overpaid as a result, that overpayment must be paid back.

Generally speaking, as a person receiving a means-tested pension, you are obliged to provide information about any changes that could affect either your eligibility for the pension or the rate at which it is paid.

Make sure we get it right

When you are granted an income support pension or when your rate of income support pension is varied following a review, you will receive a complete list of the income and assets that have been included in your assessment. If any details are incorrect or if any items of income or assets have been omitted, you are obliged to notify DVA of the error within the timeframes stated in your letter. Such notification will minimise the possibility of your pension being overpaid. This means that if you have previously told us about things like superannuation or compensation payments and these items have not been included in the assessment of your pension, you must let us know. Refer to Chapter 4 - Your Income and Assets for more information on what income is and how it affects your pension.

DVA contact numbers

If you are not sure about your obligations, contact your nearest DVA office.

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Changes to personal circumstances - Your Obligations

(See Chapter 3 - Living arrangements)

You need to tell us within 14 days (28 days if you live overseas or receive remote area allowance) of changes to your personal circumstances which might affect the rate of your pension. For social security age pensioners (paid by DVA) the obligations are the same except if you receive a remote area allowance you have 14 days not 28 days to tell us about these changes. Examples of these changes follow:

  • You marry or enter a marriage-like relationship.
  • You are separated and enter a marriage-like relationship.
  • You divorce or separate.
  • You and your partner have to live apart because of illness or infirmity.
  • The person for whom you are a trustee or carer dies.
  • A child or student for whom you are receiving benefits leaves your care, stops being a student, starts receiving payments under an education scheme or stops being dependent on you.

On the death of your partner, it is best to notify the Department immediately. By telling us as soon as possible you will avoid or reduce the possibility of any overpayment and allow us to make a bereavement payment in some cases.

Note: Social security age pensioners (paid by DVA) You need to tell us within 28 days if your partner dies.

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Changes to residential circumstances - Your Obligations

(See Chapter 3 - Living arrangements)

You need to tell us within 14 days (28 days if you live overseas or receive remote area allowance) of changes to your residential circumstances as they might affect the rate of your pension. For social security age pensioners (paid by DVA) the obligations are the same except if you receive a remote area allowance you have 14 days not 28 days to tell us about these changes. Examples of these changes follow:

  • You change your address.
  • You move to nursing home or similar accommodation.
  • You go overseas.
  • You sell or rent your home or leave it for more than 12 months.
  • You are receiving rent assistance and you stop paying private rent, start paying government-subsidised rent, sublet from a government tenant or your rent reduces.
  • You receive remote area allowance and you leave your home for more than 8 weeks.
  • Your intentions to use your home sale proceeds to buy or build a new home have now changed.
  • Your intentions to use the insurance proceeds (from your damaged/lost home) to acquire a new home or repair your old home have now changed.
  • Your home sale or home insurance proceeds were exempted assets and you have now acquired a new home or your rebuilt/repaired home is completed.

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Changes to your pension eligibility - Your Obligations

You need to tell us within 14 days (28 days if you live overseas or receive remote area allowance) if:

  • You receive an invalidity service pension and:
    • you commence full or part time work;
    • you increase your hours of work;
    • your incapacity from the disability(ies) alone no longer renders you permanently incapable of working.
  • You are granted a social security pension or benefit, or pension from some other source.
  • You are imprisoned.

Obligations for war widows and widowers receiving the income support supplement

You need to tell us within 14 days (28 days if you live overseas or receive remote area allowance) if:

  • You receive an income support supplement granted on invalidity grounds and:
    • you commence full or part time work;
    • you increase your hours of work; or
    • your incapacity from the disability(ies) alone no longer renders you permanently incapable of working.

  • You are receiving an income support supplement because you have a dependent child and:
    • your child leaves your care, custody and control or stops being maintained by you; or
    • your student child becomes less dependent on you, stops being a student or starts to receive payments under an education or youth allowance scheme or receives any other income of their own.

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Changes to your financial circumstances - Your Obligations

Financial obligations for maximum rate and reduced rate pensioners are different. Examples of your obligations in relation to your income and assets have been included in Chapter 4 - Your Income and Assets. You need to tell us within 14 days (28 days if you live overseas or receive remote area allowance) of changes to your income and assets which affect the rate of your pension. For social security age pensioners (paid by DVA) your obligations are the same except if you receive a remote area allowance you have 14 days not 28 days to tell us about changes to your income and assets which affect the rate of your pension.

Fact Sheet: IS137
The things you need to tell us about (PDF version)
The things you need to tell us about (HTML version)

If you receive the maximum rate of pension

You only need to tell us of changes to your financial circumstances if they might affect your rate of pension. The changes will only affect your pension if your income or assets increase above the amounts at which pension starts to reduce. These amounts are known as the income free area and the assets value limit and are described in Chapter 4 - Your Income and Assets.

This means that if you receive the maximum rate of pension and your income or assets are under these amounts you do not need to tell us of events such as:

  • changing your car
  • paying household bills
  • holiday expenses
  • reductions in income or assets.

Note: You do need to tell us if as a result of a number of events the overall impact is that your income or assets increase above the income free area or the assets value limit. (See Chapter 4 - Your Income and Assets).

If you only have money, in bank, building society or credit union accounts, including term deposits (hereafter referred to as bank accounts)

You do not need to tell us of changes to the balances of your bank accounts if the combined balances of all your accounts do not change to the point where the deemed income might affect your pension.

Based on deeming rates from March 2008 your income support pension would only be affected if your bank balances exceeded the following limits:

If you are a service pensioner

  • For singles - if your bank balances exceed $71,417;
  • For couples - if your combined bank balances exceed $124,500.

Note: This allows for a variation to your pension of more than $1. If you have any other type of income (refer Chapter 4 Your Income and Assets) these figures will not apply.

If you are a social security age pensioner (paid by DVA) -

  • For singles - if your bank balances exceed $70,334
  • For couples - if your combined bank balances exceed $123,334

Note: The amounts are slightly less if you receive a social security age pension (paid by DVA) as there is no minimum variation amount that applies to your pension. If you have any other type of income (refer Chapter 4 Your Income and Assets) these figures will not apply.

If you are a war widow or widower receiving an income support supplement

  • War widows or widowers (singles) - if your bank balances exceed $234,610 (there is now no difference between home owners and non home owners under the current deeming rates).
  • War widows or widowers (members of a couple) - if you and your partner's bank balances exceed $508,260 (there is now no difference between home owners and non home owners under the current deeming rates).

See Chapter 3 - Residential Circumstances to see if you are considered to be a home owner or non home owner.

Note: This allows for a variation to your pension of more than $1. The amounts stated may reduce your pension under the income or assets test, whichever test results in the lower rate of pension. If you have any other type of income (refer Chapter 4 Your Income and Assets) these figures will not apply.

Note: If you are receiving the income support supplement and you are entitled to compensation or have claimed or are receiving compensation in respect of the death of your partner you must notify DVA within 14 days (28 days if you live overseas or receive remote area allowance). This obligation also applies if you are only receiving the war widow's pension. (See Chapter 2 - Which Pension Do You Get?, War Widow's pension and orphan's pension).

But if you are a war widow or widower

  • who receives the income support supplement and also receives a disability pension as a veteran; or
  • whose partner is a veteran receiving a disability pension; or
  • who receives the income support supplement of more than $163.20 (current rate from March 2008);

then the amounts quoted above for war widows or widowers will be different. You can ask us to calculate the amount for you.

Other important points to remember

  • You do not have to tell us about interest rate changes.
  • The amounts quoted above will change when the income free areas change in July each year in line with movements in the Consumer Price Index.
  • The amounts quoted above will change if deeming rates change (in March or September if they do change) and if the deeming thresholds change in July (See Chapter 4 Your Income and Assets What is deeming?).

If you receive a reduced rate service pension or social security age pension (paid by DVA) or income support supplement

If you are receiving a service pension or income support supplement at a reduced rate, it means that your income or assets exceed the income free area or the assets value limit.

You need to tell us if:

  • your income from all sources increases by more than $2.50 per fortnight for singles or $5.00 combined per fortnight for couples; or
  • your assets increase above your assets limit (this amount is mentioned in our latest letter to you).

If you are receiving a social security age pension (paid by DVA) at a reduced rate, it means that your income or assets exceed the income free area or the assets value limit.

You need to tell us if:

  • your income from all sources increases; or
  • your assets increase above your asset limit (this amount is mentioned in our latest letter to you).

If you are receiving a reduced rate of income support pension please check the letters that you receive from DVA and the income and assets details and obligations carefully. If there are any major discrepancies between the information listed and your actual circumstances contact your nearest DVA office. If you do not tell us, your income support payment may be overpaid.

If you only have money, in bank, building society or credit union accounts, including term deposits (hereafter referred to as bank accounts)

You need to tell us of changes to the balance of your bank accounts if they result in a variation to your pension of more than $1.

The following information will help you to work out the amount of change to your total bank balances that you need to tell us about:

If you receive a reduced rate of service pension (assessed under the income test) or if you are a war widow or widower receiving income support supplement less than $163.20 (as at March 2008 and assessed under the income test), then your income from your bank balances would have to increase or decrease by at least:

  • $2.50 per fortnight for singles;
  • $5.00 per fortnight (combined) for couples;

for your pension rate to change.

Therefore

Your pension rate will change if your bank balances change as follows:

  • singles by at least $1,083;
  • couples by at least $2,167.

Notes

  • The above information is current as at March 2008.
  • The changes to your bank balances may be the result of multiple transactions so you will need to keep track of them.
  • These amounts ($1,083 and $2,167) will change if the deeming interest rates change (in March or September).
  • While you need to tell us within 14 days (28 days if you live overseas or receive remote area allowance) of changes which result in reductions to your pension, it is in your own interest to tell us of changes which result in increases to your pension. Increases are effective from the day you tell us of the change, or the date of the change whichever is the later.

Note: If you are receiving a social security age pension (paid by DVA) obligations may vary in some circumstances. There is no minimum variation amount that applies if you are receiving a social security age pension (paid by DVA). You need to tell us of any changes to your bank accounts if they result in a variation to your pension.

If you receive a reduced rate pension because of your income
You do not need to tell us of changes to the value of your non financial assets:

  • vehicles;
  • home and contents;

unless the change brings your assets to within $10,000 of the amount at which your pension would reduce under the assets test. This amount is known as your asset limit and is included in our latest letter to you. Refer to Chapter 4 Your Income and Assets for other examples of non financial assets.

If you receive a reduced rate pension because of your assets
You do not need to tell us of variations to your income if your varied income is still below the amount at which your pension would reduce under the income test. This amount is known as your income limit and is quoted in our latest letter to you.

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