Maximise your payment

This page provides information on the date of effect for payment variations and how to maximise your entitlement under the date of effect rules.

This information is for recipients of Service Pension, Social Security Age Pension, Veteran Payment or Income Support Supplement. 

Payments are calculated based on a daily entitlement

The Service Pension, Social Security Age Pension, Income Support Supplement or Veteran Payment you receive every fortnight is calculated based on a daily entitlement. For example, a change in your income or asset value mid-way through a payment fortnight may change your payment from that day. This means that the amount of payment will more accurately reflect your true entitlement. To get the most out of these arrangements, you must tell us:

• about changes that affect your payment, within 14 days of the event (28 days if you live overseas or receive Remote Area Allowance)
• the date of the change.

A detailed explanation of the arrangements is below.

How can I maximise my payment

Service Pension, Income Support Supplement or Veteran Payment

If a change you tell us about results in an increase to your payment, the increase will apply from the day you tell us about the change or on the day that the change occurred, whichever is the later.

If a change you tell us about results in a reduction in your payment, and you let us know about the change within 14 days of it happening (28 days if you live overseas or receive Remote Area Allowance), the reduction won’t apply until after the 14 days (or 28 days) have passed.

If a change results in a reduction in your payment, and you tell us about it more than 14 days after it happens (28 days if you live overseas or receive Remote Area Allowance), the reduction will apply from the day that the change occurred. This means that any excess payment made after that day would have to be paid back. DVA would advise you about the best way to repay any excess payments.

For all changes, it is very important that you tell us the date the change occurred. This will assist DVA to respond to your changes as quickly as possible and ensure that you receive exactly what you are entitled to.

Any delays in processing the information you give us will not alter the date that the change applies to your payment. This means that if you are due for an increase to your payment, the increase will apply from the day you tell us about it. Similarly, if you are due for a reduction, the reduction will apply from either the day of the change, or after the 14 days (or 28 days) have passed as outlined above, depending on when you tell us about it. In all cases, any excess payments made after the date that the change applies to your payment are recoverable.

Social Security Age Pension

For all changes, it is very important that you tell us the date the change occurred. This will assist DVA to respond to your changes as quickly as possible and ensure that you receive exactly what you are entitled to.

If a change you tell us about results in an increase to your payment, the increase will apply as soon as you let us know about it.

The following social security rules apply if a change you tell us about results in a reduction to your payment:

• If you tell us about the change more than 14 days after it happens (28 days if you live overseas or receive Remote Area Allowance), the reduction will apply from the day that the change occurred
• If you tell us about the change within 14 days of it happening (28 days if you live overseas or receive Remote Area Allowance), one of the following 3 rules will apply, depending on when the change is processed. The reduction will apply on either:
  • the day of the change
  • the day after the end of the ‘payment period’ in which the change occurs
  • the day after the 14 day (or 28 day) notification period has passed.

Any excess payment that is made from the day on which the payment reduction applies would have to be paid back. DVA will advise you about the best way to repay any excess payments.

What is a payment period?

A 14-day period called a ‘payment period’ relates to the fortnightly payment. A payment period starts on a Tuesday and ends a fortnight later on the Monday before payday. All changes that have an effective date within the payment period affect the amount paid on the payday. Here is a table to illustrate.

Please refer to When we pay your pension and allowance for more information.

What is within 14 days?

A change to your circumstances must be notified within 14 days. This excludes the day of the change. For example, if a change occurs on the 1st of the month, you have to tell us on or by the 15th of the month, as shown in this diagram.

Exceptions to the 14-day rule

The general rule is that a change to your circumstances must be notified within 14 days. There are some situations where DVA may have specified a different notification period, mainly relating to employment earnings, businesses or income earnt from property. Where a person lives overseas or receives Remote Area Allowance, the 14-day period is extended to a maximum of 28 days. In addition to this, if you are in receipt of Social Security Age Pension and you become aware that you have received or are to receive a compensation payment, you must tell us within 7 days. 

In cases of bereavement, it is especially important to notify us of a death as soon as possible if your late partner received a payment from DVA.

Payment indexation increases and paydays

For the first payday occurring after an indexation increase, your payment is calculated for part of the fortnight where the old rate applies and the remainder of your fortnightly payment is at the new increased rate. This ensures that you receive your correct daily entitlement.

Your payment is made up of an amount for each day of the previous fortnight's period ending on the Monday before the payday being calculated. This means that your first full payment at the new rate of payment will be paid from the second payday after the indexation date.

Paydays can vary for Services Australia customers. Social Security Age Pension paid by DVA is paid on every second Thursday however, similarly to Service Pension, Veteran Payment or Income Support Supplement.

What is a change in circumstances?

When we talk about changes to circumstances, we mean changes that are likely to affect your rate of payment. If you are unsure about the things that you should tell DVA about, you may wish to read our page about the related topics, What you need to tell us about and The things you do not need to tell us about or contact DVA for advice. You can also refer to the You and Your Pension booklet.

Obligations

When you are granted an income support payment, 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 or receive Remote Area Allowance) of changes to your circumstances that might affect the rate of income support payment you receive or your eligibility to receive that payment. These obligations apply equally to trustees.

Usually, an overpayment will not occur when you have met your obligations. However, sometimes even if you have met your obligations, an overpayment can occur because we have not been able to process the change before the next payday. We do our best to avoid this occurring, but it is not always possible. To provide you with your exact entitlement we are obliged to recover overpayments where they do occur.