Indexation of rates from 1 July 2021

Indexation of rates from 1 July 2021 gabrielle.seal Mon, 02/08/2021 - 12:05

From 1 July 2021, the Income Free Areas and Assets Value Limits used to calculate rates of income support pensions under the Veterans’ Entitlement Act 1986 (VEA) will rise.

The amount of income (per fortnight) an income support pensioner may receive before their pension is reduced under the income test:

The maximum amount an income support pensioner can earn before their DVA payment(s) are reduced.
DVA payments Single rate (fortnightly) Couples rate — combined (fortnightly)
Service or Age Pension $180.00 $320.00

Income Support Supplement

(War Widow(er)’s Pension is included in these amounts)

  • Different limits apply if assessed under transitional rules
$1,483.60 $2,002.80

The maximum value of assets a person can have before their pension is affected:

The maximum value of assets an income support pensioner can own before their DVA payment(s) are reduced.
Assets Single rate Couples rate — combined
Service or Age Pension    
Homeowner $270,500 $405,000
Non-homeowner $487,000 $621,500

Income Support Supplement

  • Different limits apply if assessed under transitional rules
   
Homeowner $488,000 $685,500
Non-homeowner $704,500 $902,000

The deeming thresholds have increased effective from 1 July 2021. This means that the value of financial assets deemed to be earning the lower rate of 0.25 per cent has increased. The higher deeming rate of 2.25 per cent is applied to the balance of financial assets over these thresholds.

The deeming threshold applied to financial assets as of 1 July 2021.
Type of threshold Single rate Couples rate — combined
Deeming threshold $53,600 $89,000

Some payments under the Military Rehabilitation and Compensation Act 2004 (MRCA) also increased, including:

Military Rehabilitation and Compensation Act 2004 (MRCA) payments as of 1 July 2021.
DVA MRCA payments New rate (weekly)
Maximum Permanent Impairment amount $363.09
Maximum rate of Household Services $514.12
Maximum rate of Attendant Care Services $514.12
Dependent eligible young person $155.47

For further information, contact DVA on 1800 VETERAN (1800 838 372).