Special and Intermediate rates

The Veterans’ Entitlements Act 1986 has closed to new claims. If you are already receiving Disability Compensation Payments, you will continue to receive your payments uninterrupted. All new claims for compensation will be made under the Military Rehabilitation and Compensation Act 2004.

This page provides a brief description of the Special Rate, Temporary Special Rate, and Intermediate Rate rates of Disability Compensation Payments payable under the Veterans’ Entitlements Act 1986 (VEA). (These payments are sometimes referred to as ‘TPI’ and ‘TTI’).

What are the Special Rate, Temporary Special Rate and Intermediate Rate of Disability Compensation Payment?

A Disability Compensation Payment is paid to compensate veterans for conditions (i.e. injuries or diseases) caused or aggravated by war service or certain defence service on behalf of Australia.

Higher rates of pension, such as Special and Intermediate Rates, are known as Above General Rate (AGR) pensions and are payable if you are severely incapacitated with a degree of incapacity that is determined to be at least 70% and unable to earn a normal wage because of the effects of your accepted condition/s on your capacity to work. 

Special Rate

The Special Rate is also commonly known as totally and permanently incapacitated (T&PI) pension. The purpose of the Special Rate of Disability Compensation Payment is to provide for severely disabled veterans who are unable to have a normal working life because of a permanent incapacity resulting from their war or defence service.

For those under the age of 65, the Special Rate is paid if you are:

• determined as being at least 70% incapacitated due to accepted conditions (or you are receiving or have received the General Rate of pension in respect of pulmonary tuberculosis); and
• totally and permanently incapacitated because of your accepted conditions; and
• prevented from undertaking your normal remunerative work or any other substantive work in your employment history for more than 8 hours per week, solely because of your accepted conditions; and
• suffering a loss of earnings as a consequence.

Where your incapacity from accepted conditions is not the sole cause which prevents you from undertaking remunerative work for more than 8 hours per week, then you may have been still be eligible to receive a pension at the Special Rate if:

• you are under the age of 65; and
• you have been actively and genuinely seeking work (or would have been seeking work); and
• your accepted condition/s are the substantial reason for your inability to obtain work.

If you were aged 65 or over at the time you lodged your claim, you must have met the same requirements as those aged under 65, with these additional criteria:

• you must have been working for a continuous period of 10 years that began before you turned 65, regardless of the field of work and whether you are self-employed or not; and
• you must have ceased to work in that employment due to accepted conditions alone (therefore, the provisions above about “genuinely seeking work” do not apply).

If you are blinded in both eyes due to your accepted conditions you are eligible for a pension at the Special Rate regardless of your capacity for employment.

Temporary Special Rate

The Temporary Special Rate is also commonly known as temporarily totally incapacitated (TTI) pension. If you met all of the criteria for the Special Rate other than permanency of incapacity, you could have been paid a Disability Compensation Payment at the Temporary Special Rate. The Commission will have determined the period during which your temporary incapacity is likely to continue and will have advised what rate of Disability Compensation Payment will apply at the expiration of the Temporary Special Rate period.

Intermediate Rate

The purpose of the Intermediate Rate pension is to bridge the gap between the General Rate and the Special Rate of pension for veterans who are capable only of engaging in part-time or intermittent employment due to incapacity from their accepted condition/s.

The eligibility criteria for the Intermediate Rate are the same as for the Special Rate, with the exception of the following:

• you must be prevented from undertaking your normal remunerative work or any other substantive work in your employment history for more than 50% or more of the full-time hours ordinarily worked, or 20 hours per week; and
• your incapacity to work due to accepted conditions does not have to be permanent, which is a requirement for Special Rate.

If you are aged 65 or over and you are severely incapacitated due to your accepted conditions and you are not eligible for Special or Intermediate Rate, you may have been entitled to the Extreme Disablement Adjustment. 

How are the Special Rate, Temporary Special Rate and Intermediate Rates of pension determined?

Pension rates are indexed twice yearly. The Special Rate, Temporary Special Rate and Intermediate rates of Disability Compensation Payment are indexed in a similar manner as the service pension, that is, with reference to the Consumer Price Index (CPI), the Male Total Average Weekly Earnings (MTAWE) and the Pensioner and Beneficiary Living Cost Index (PBLCI). Any increases from indexation are paid automatically, you do not need to contact DVA.

For information on the current rates of Special Rate, Temporary Special Rate and Intermediate rates of pension payable, refer to Disability Compensation Payment and War Widow(er)’s Pension Rates and Allowances.

If compensation for the same incapacity is received from another source, an adjustment will be made to the amount of Disability Compensation Payment paid to ensure that you are not compensated twice for the same incapacity. For more information on this, refer to Disability Compensation Payment and compensation offsetting.

Additionally, all claims and applications for increase that were lodged on or after 1 July 2004 and before 1 July 2026 that resulted in the granting or continuance of Special or Intermediate Rate, were adjusted if any lump sum permanent impairment compensation has been received under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA). This applies to lump sum compensation for any incapacity, irrespective of whether the incapacity is included in the pension assessment.

How do I apply to have my decision reviewed?

If you do not agree with the assessment of the rate of your Disability Compensation Payment, you can appeal to the Veterans’ Review Board for a review of the decision.

Time limits apply for lodging appeals. The procedure on how to apply is included in the Department’s notification of its decision on your pension rate. For more information, refer to Your rights to review an unsuccessful VEA claim.

More about the pension

Pension rates are indexed twice yearly using the proportional indexation increase in the partnered maximum basic rate of service pension, which takes account of the Consumer Price Index (CPI), the Male Total Average Weekly Earnings (MTAWE) and the Pensioner and Beneficiary Living Cost Index (PBCLI). Any increases from indexation are paid automatically, you do not need to contact the Department.

The Disability Compensation Payment is classified as a non-taxable government pension or benefit.

The Disability Compensation Payment is not counted as income for the income test under the VEA and the Social Security Act.

Energy Supplement

Our page on the energy supplement has more information about this.