This page provides a brief description of the Extreme Disablement Adjustment (EDA) rate of disability pension payable under the Veterans’ Entitlements Act 1986 (VEA).
A disability pension is paid to compensate veterans for injuries or diseases caused or aggravated by war service or certain defence service on behalf of Australia.
The EDA rate can only be considered for veterans who have reached 65 years of age who are not eligible to receive a Special or Intermediate rate of pension.
As the name suggests, the degree of incapacity from war or defence caused conditions must be extreme for a veteran to be entitled to a disability pension at the EDA rate. The assessment only takes into account the medical impairment and lifestyle effects of a disability. Eligibility for the EDA rate does not have regard to whether or not a veteran is employed, nor any regard to income or assets held by the veteran.
To be entitled to the EDA rate of disability pension, you must:
- be 65 years of age or older; and
- have been determined by DVA to have a degree of incapacity of 100% due to accepted conditions (or you are receiving, or have received, a disability pension in respect of pulmonary tuberculosis at the maximum general rate); and
- have had your impairment rating assessed to be at least 70, and your lifestyle rating at least 6, under the approved Guide to the Assessment of Rates of Veterans’ Pensions; and
- not be eligible to receive a Special or Intermediate rate of pension. For more information on Special and Intermediate rate of disability pension please refer to Special and Intermediate rates.
For information on the current EDA rate, refer to Disability Pension and War Widow(er)’s Pension Rates and Allowances.
For veterans who are not eligible to receive a Special or Intermediate rate of disability pension, the EDA rate is the maximum rate of compensation that can be paid under the VEA.
If compensation for the same incapacity is received from another source, an adjustment will be made to the amount of disability pension paid.
Pension rates are indexed twice yearly. The EDA rate of disability pension is 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 the Department.
Disability pensions are not taxed. You do not need to declare it as income in your tax return.
A disability pension is not counted as income for the service pension income test. However it is counted as income when assessing eligibility for rent assistance (an addition to the service pension) and for working out how much rent assistance is to be paid.
The disability pension is counted as income for the Age and Disability Support pensions and other benefits claimed under the Social Security Act. In this circumstance, the Defence Force Income Support Allowance (DFISA) may be payable.
Energy Supplement may also be payable to disability pensioners.