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Factsheet CEP01 - Energy Supplement

Purpose

This Factsheet explains what the Energy Supplement is, who is eligible for it, how much it is and how it is paid.

This Factsheet is current from 1 July 2019 to 19 September 2019.

What is the Energy Supplement?

The Energy Supplement is part of the Household Assistance Package, which provides ongoing financial assistance to certain members of the veteran and defence community. The Household Assistance Package also provides for an ongoing Essential Medical Equipment Payment.

The Energy Supplement is an ongoing payment, paid fortnightly or quarterly to eligible recipients.

Who is eligible?

You may be eligible for an Energy Supplement if you receive one or more of the underlying payments:

  • service pension;
  • age pension paid by DVA;
  • war widow(er)'s pension;
  • disability pension;
  • Military Rehabilitation Compensation Act 2004 (MRCA) wholly dependent partner payment;
  • MRCA special rate disability pension;
  • MRCA permanent impairment payment;
  • a fortnightly Veterans' Children Education Scheme (VCES) education allowance; or
  • a fortnightly Military Rehabilitation and Compensation Act Education and Training Scheme (MRCAETS) education allowance.

You may also be eligible if you hold a Commonwealth Seniors Health Card (CSHC), or have reached qualifying age and hold a Gold Card.

CSHC holders granted the card on or after 20 September 2016 will only be eligible for Energy Supplement if the grandfathering rules apply.

What are the grandfathering rules for CSHC holders?

The grandfathering rules are met in the following circumstances:
Status on 19/9/2016 Changes since 19/9/2016 Extra Conditions
CSHC holder No changes Nil
Income support recipient Income support payment ceased, now a CSHC holder Claim for CSHC must have been lodged within 6 weeks of effective date of income support cancellation
CSHC holder Moved from CSHC to an income support payment, then back to the CSHC

Income support payment must have commenced from the day that CSHC eligiblity was lost.

On return to the CSHC, the CSHC claim must have been lodged within 6 weeks of the effective date of the income support cancellation.

CSHC holder Departure from Australia Departure must be temporary and for less than 19 weeks.
Neither CSHC holder nor income support recipient Commenced receiving an income support payment, which was later cancelled on 1/1/2017 due to assets test changes.

CSHC is automatically issued for those of pension age who are cancelled on 1/1/2017 due to assets test changes.

Energy Supplement must have been paid with the income support payment on 31/12/2016.

Energy Supplement cannot be paid beyond 19 March 2017 for CSHC holders who do not meet the grandfathering rules.

CSHC holders who also hold a Gold Card will continue to receive Energy Supplement with their Gold Card regardless of whether or not they meet the grandfathering rules for their CSHC.

Can I receive my Energy Supplement quarterly?

CSHC holders or eligible Gold Card holders can only receive the Energy Supplement as a quarterly payment. All other recipients can elect to receive their Energy Supplement payment either fortnightly or quarterly.

Energy Supplement entitlements are calculated daily, so there is no financial advantage or disadvantage in changing from fortnightly to quarterly payments. To choose this payment option, you must notify DVA via email, telephone, mail or by visiting a DVA office. You can also change back to a fortnightly payment at any time.

Do I need to apply?

No. The Energy Supplement is automatically paid to eligible recipients. However, if you want to change from fortnightly to quarterly payment, or from quarterly back to fortnightly payment, you will need to notify DVA.

Are the payments assessable or taxable income?

No. The Energy Supplement is excluded from the income used to assess income support payments and will not form part of your taxable income.

Can I receive more than one Energy Supplement?

You can be eligible for multiple Energy Supplement payments depending on the payments you receive.

Group One Group Two
This table shows who might be eligible for more than one Energy Supplement payment.
People can receive an Energy Supplement for one of.... ...and an Energy Supplement for one of...
Service pension Disability pension
Age pension MRCA Special Rate Disability Pension
Eligible CSHC or Gold Card MRCA permanent impairment payment
War widow(er)'s pension
MRCA wholly dependent partner payment
VCES fortnightly education allowance
MRCAETS fortnightly education allowance
Social Security Act 1991 energy qualifying payments
ABSTUDY allowance

Multiple entitlement exclusion rules prevent a person receiving more than one Energy Supplement from within the same group.

How much is the Energy Supplement?

This table shows the Energy Supplement amounts payable.
Type of payment Energy Supplement per fortnight
Service and age pension (single) $14.10
Service and age pension (partnered - each) $10.60
War widow(er)'s pension $14.20
10% - 100% disability pension $7.70
Extreme Disablement Adjustment rate $11.80
Intermediate rate $14.50
Special rate $21.50
Type of payment Energy Supplement per week
MRCA Special Rate Disability Pension $10.75
MRCA wholly dependent partner payment $7.10
MRCA permanent impairment payment $3.80
Type of card Energy Supplement per quarter
Eligible CSHC or Gold Card holder (single) $92.66
Eligible CSHC or Gold Card holder (partnered - each) $69.66
Type of payment Energy Supplement per fortnight
Secondary/Tertiary student living at home  
VCES and MRCAETS (under 16 years old) $0.90
VCES and MRCAETS (16-17 years old) $3.90
VCES and MRCAETS (18 years or older) $4.60
Secondary/Tertiary student, living away from home  
VCES and MRCAETS (under 16 years old) $5.90
VCES and MRCAETS (16-17 years old) $7.00
VCES and MRCAETS (18 years or older) $7.00
Secondary/Tertiary student, homeless  
VCES and MRCAETS (under 16 years old) $7.00
VCES and MRCAETS (16-17 years old) $7.00
VCES and MRCAETS (18 years or older) $7.00
Secondary/Tertiary student, double orphan  
VCES (under 16 years old) $3.90
VCES (16-20 years old) $7.00
VCES (21 years or older) $8.60

What if I go overseas?

The Energy Supplement is only payable to Australian residents in Australia, or for the first six weeks of a temporary absence from Australia.

For non-CSHC holders, Energy Supplement payments will resume upon the date of return to Australia regardless of the duration of the absence and whether temporary or permanent.

CSHC holders will lose their grandfathered status after 19 weeks of temporary absence from Australia or on permanent departure from Australia. Energy Supplement payments will not resume upon their return to Australia.

Obligations

You have a responsibility to keep us informed of changes that may affect the amount of pension and Energy Supplement you receive. These responsibilities are described in our factsheets and letters to you as 'obligations', and apply equally to trustees.

In order to meet your obligations, you need to tell DVA within 14 days (28 days if you live overseas or receive remote area allowance) if:

  • your residential situation changes;
  • you move or travel overseas; or
  • there is any other change that would affect your eligibility for DVA payments.

Fulfilling your obligations within the specified time period assists us in maintaining your correct rate of payment.

More Information

DVA General Enquiries

Phone: 1800 555 254 *

Email: GeneralEnquiries@dva.gov.au

DVA Website: www.dva.gov.au

Factsheet Website: www.dva.gov.au/factsheets

* Calls from mobile phones and pay phones may incur additional charges.

Related Factsheets

Disclaimer

The information contained in this Factsheet is general in nature and does not take into account individual circumstances. You should not make important decisions, such as those that affect your financial or lifestyle position on the basis of information contained in this Factsheet. Where you are required to lodge a written claim for a benefit, you must take full responsibility for your decisions prior to the written claim being determined. You should seek confirmation in writing of any oral advice you receive from DVA.

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1 July 2019