The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

1.1.D.65 Defence Force Income Support Allowance


DFISA is paid by DVA.

DFISA may be payable if:

  • the individual or their partner receive an ADP from DVA
  • one of them receives or is qualified for a social security pension or benefit, and
  • their rate of social security pension or benefit is reduced (including reduced to nil) by the inclusion of the DVA ADP in the income test.

The amount of DFISA paid equals the difference between the rate of social security income support payment and the rate of payment the individual would receive if the DVA adjusted disability pension was exempt from the income test but included for RA calculations. DFISA is either taxable income or a tax-free pension or benefit within the definition of 'adjusted taxable income' under the family assistance law.

From 1 January 2022, DFISA was discontinued. Where a DFISA payment is made retrospectively for a period prior to 1 January 2022, it would be counted as adjusted taxable income against the income year for which it was received.

Act reference: FAAct Schedule 3 clause 2 Adjusted taxable income, Schedule 3 clause 7 Tax free pension or benefit

Veterans' Affairs Legislation Amendment (Exempting Disability Payments from Income Testing and Other Measures) Act 2021 Schedule 1 Exempting adjusted disability pension from the social security income test and removal of Defence Force Income Support Allowance

Last reviewed: