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VETERANS' ENTITLEMENTS ACT 1986 - SECT 118NC

Rate of Defence Force Income Support Allowance

DFISA rate where primary payment is neither compensation affected nor prescribed

             (1)  The rate of DFISA on a day that is on or after 20 September 2004 is worked out using method statement 1 in this subsection, unless:

                     (a)  Part 3.14 of the Social Security Act (compensation recovery) applies to reduce the rate of the primary payment on that day (in which case see method statement 2 in subsection (2)); or

                     (b)  the primary payment is a social security pension or social security benefit that is prescribed for the purposes of this section (in which case, see subsection (3)).

Note:          For primary payment see section 118NB.

Method Statement 1

Step 1.    Work out the daily provisional payment rate for the primary payment on that day.

                   Note:             For daily provisional payment rate see subsection (4).

Step 2.    Work out what would have been the daily provisional payment rate (the notional rate ) for the primary payment on that day if both of the following assumptions were made:

              First assumption

              The first assumption is that the adjusted disability pension payable to the person, or the person's partner, were an excluded amount (see section 118NA).

                   Note:             This will mean the adjusted disability pension will not be treated as income when calculating the notional rate.

              Second assumption

              The second assumption is that, if an amount of rent assistance was included in the primary payment, that amount were reduced (but not to less than nil) by the rent assistance reduction amount.

                   Note:             For rent assistance and rent assistance reduction amount see subsection (4).

Step 3.    Subtract the daily provisional payment rate under step 1 from the notional rate under step 2. The difference is the rate of DFISA on that day.

DFISA rate where primary payment is compensation affected but not prescribed

             (2)  The rate of DFISA on a day that is on or after 20 September 2004 is worked out using method statement 2 in this subsection if:

                     (a)  Part 3.14 of the Social Security Act (compensation recovery) applies to reduce the rate of the primary payment on that day; and

                     (b)  the primary payment is not a social security pension or social security benefit that is prescribed for the purposes of this section.

Note:          For primary payment see section 118NB.

Method Statement 2

Step 1.    Work out the daily provisional payment rate for the primary payment on that day.

                   Note:             For daily provisional payment rate see subsection (4).

Step 2.    Work out the amount by which Part 3.14 of the Social Security Act reduces the daily primary payment rate on that day.

Step 3.    Subtract the amount in step 2 from the rate in step 1.

Step 4.    Work out what would have been the daily provisional payment rate (the notional rate ) for the primary payment on that day if the 2 assumptions referred to in step 2 of method statement 1 in subsection (1) were made.

Step 5.    Work out the amount by which Part 3.14 of the Social Security Act would have reduced the notional rate on that day if that rate had been the daily primary payment rate.

Step 6.    Subtract the amount in step 5 from the rate in step 4.

Step 7.    Subtract the amount in step 3 from the amount in step 6. The difference is the rate of DFISA on that day.

Regulations may prescribe other ways of calculating rate of DFISA

             (3)  The regulations may prescribe a social security pension or social security benefit for the purposes of this section. If the regulations do so, the regulations must also prescribe the method to work out the daily rate of DFISA that is payable in relation to that pension or benefit.

Note:          For social security pension and social security benefit see section 5Q.

Definitions

             (4)  In this section:

"daily provisional payment rate " means the provisional payment rate, provisional annual payment rate or provisional fortnightly payment rate referred to in the Rate Calculator used under the Social Security Act to work out the rate of the primary payment, converted to a daily rate by dividing the rate by 364 (for a provisional annual payment rate) or 14 (for a provisional fortnightly payment rate).

"rent assistance " has the same meaning as in the Social Security Act.

"rent assistance reduction amount " is the amount that would be a person's income reduction under the Social Security Act if that income reduction were worked out by applying the same income test or ordinary income test that was used under that Act in calculating the person's primary payment, but applying that test on the basis that the adjusted disability pension payable to the person, or the person's partner, were the person's only ordinary income for the purposes of that Act.



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