Changes to your pension or veteran payment

Last updated: 
22 January 2020

This page provides further information on the date of effect for pension and veteran payment reductions and cancellations. It should be read in conjunction with Maximise your pension or veteran payment

This information is for service pensioners, recipients of veteran payment and war widow/ers who receive income support supplement. There is a separate page for age pensioners paid by DVA, When changes to your aged pension come into effect.

Pensions and veteran payment are calculated on a daily basis

The service pension, income support supplement or veteran payment you receive every fortnight is calculated on a daily basis. For example, a change in your income or asset value mid-way through a pension or veteran payment fortnight may change your pension or veteran payment from that day. This means that the amount of pension or veteran payment paid will reflect your true entitlement. To get the most out of these arrangements, you must tell us:

  • about changes in your circumstances that affect your pension, within 14 days of the change (28 days if you live overseas or receive remote area allowance); and
  • the date of the change.

An explanation of how the arrangements affect pension or veteran payment reductions and cancellations follows.

Reductions and Cancellations: change notified within 14 (or 28) days

If a change you tell us about results in a reduction or cancellation in your pension or veteran payment, and you let us know about the change within 14 days of it happening (or 28 days if you live overseas or receive remote area allowance), the reduction/cancellation applies on the 15th day (or 29th day if applicable), after the 14 days (or 28 days) have passed. This is shown in the diagram below, using 14 days.

Sun Mon Tue Wed Thu Fri Sat
30 31 Change occurs
here
1 2 3 4 5
6 7 8 9 10 11 12
13 14 You let us
know by here
15 Reduction or
cancellation applies
here
16 17 18 19

Reductions and Cancellations: change notified outside 14 days (or 28 days if applicable)

If a change you tell us about results in a reduction or cancellation in your pension or veteran payment, and you let us know about the change more than 14 days after it happens (or 28 days if you live overseas or receive remote area allowance), the reduction/cancellation applies from the date of the change. This is shown in the diagram below, using 14 days.

Sun Mon Tue Wed Thu Fri Sat
30

31 Change occurs here.
Reduction or cancellation
applies here.

1 2 3 4 5
6 7 8 9 10 11 12

13

14

 

15 You let us know on
or after here
16 17 18 19

Overpayments of pension or veteran payment

If a change you tell us about results in a reduction or cancellation to your pension or payment from the day of the change (because we were told about the change more than 14 days after it happened or 28 days if you live overseas or receive remote area allowance), the reduction/cancellation will normally result in an overpayment of pension or payment. In that case, we would recalculate your pension or payment and let you know the best way to repay the overpaid amount.

It is possible that even if you tell us about a change within 14 days of it happening (or 28 days if you live overseas or receive remote area allowance), we may not be able to recalculate your pension or payment in time for your next payday. In this case we would have to recover any money that you have received over and above what you were entitled to.

Of course you would never have to repay money that you are lawfully entitled to. We will always do our best to ensure your changes are processed as quickly as possible, to avoid overpayments accumulating. However, it is possible to incur an overpayment, and we believe you should be fully informed about the possibility of this happening.

Obligations

Do tell us about changes to your circumstances within 14 days (or 28 days if you live overseas or receive remote area allowance).

Do tell us the date the change occurred.

Don’t tell us about changes that won’t affect your pension.