4.3.5.72 DFISA bonus & DFISA bonus bereavement payment & the PBS prior to 1 January 2022

Note: DFISA bonus & DFISA bonus bereavement payment ceased from 1 January 2022.

Summary

This topic provides information on the following:

• description of DFISA bonus and DFISA bonus bereavement payment
• no need for claim
• person must qualify for a social security pension bonus
• calculation of DFISA bonus
• people with a nil rate of social security pension bonus due to the income test
• appeals and reviews of DFISA bonus, AND
• governing legislation.

Description of DFISA bonus & DFISA bonus bereavement payment

DFISA bonus is paid by DVA. It commenced with effect from 20 September 2004.

DFISA bonus is payable to a person whose social security pension bonus is reduced (including to nil) because of the inclusion of the DVA ADP of the person or the person's partner in income in the assessment of that pension bonus. ADP is defined in the VEA section 118NA and includes the following:

• general rate disability pensions (10%-100%), extreme disablement adjustment, intermediate rate, special rate and payments made under VEA section 27
• temporary incapacity allowance
• special rate disability pension and permanent impairment payment (under Military Rehabilitation and Compensation Act 2004 (MRCA)), AND
• saved dependant pension.

DFISA bonus is not payable to a person if the financial hardship provisions in SSAct section 1129 apply to the person in relation to the person's Age.

A person who receives, at any time after the person first qualifies for Age, DFISA as a supplement to a social security benefit or pension, other than CP, is, or is taken to be, receiving that benefit or pension. The person cannot thereafter qualify for either pension bonus or DFISA bonus.

DFISA bonus bereavement payment is also paid by DVA and commenced from 1 January 2008.

If a DFISA bonus would have been payable to a person who dies before claiming the person's social security pension bonus, a DFISA bonus bereavement payment may be payable to the person's surviving partner.

No need for claim

A person seeking access to DFISA bonus needs to claim and qualify for a social security pension bonus. There is no claim for DFISA bonus that is separate from the claim for the pension bonus. DFISA bonus is automatically payable by DVA to a person who qualifies for a social security pension bonus and whose rate of that pension bonus is reduced by the inclusion of ADP in the assessment.

Payment of DFISA bonus bereavement payment is also automatic to the surviving partner of a deceased PBS member, where PBBP is payable - no separate DFISA claim is required.

Person must qualify for a social security pension bonus

DFISA bonus is payable only to a person who qualifies for a social security pension bonus.

Calculation of DFISA bonus

A person's rate of DFISA bonus is equal to the difference between the actual rate of social security pension bonus payable to the person and the rate they would receive if ADP was excluded from income in the assessment of the person's actual rate of pension bonus.

Details of the Method Statement used to calculate the rate of DFISA bonus are contained in VEA section 118NI.

People with a nil rate of social security pension bonus due to the income test

It is possible that a person:

• will qualify for a social security pension bonus, AND
• will have a nil rate of payment of that pension bonus because of the application of the income test, AND
• would have a rate, greater than nil, of that pension bonus if ADP was not included in the assessment of their actual pension bonus rate.

A person who has a nil rate of pension bonus may get a DFISA bonus.

Appeals & reviews of DFISA bonus

A review of the social security pension bonus may lead to a reassessment of any DFISA bonus.

Governing legislation

DFISA bonus was introduced with the passage of the Veterans' Entitlements (Clarke Review) Act 2004. Schedule 2 of that Act inserted Part VIIAB on DFISA and DFISA bonus into the VEA. It also made consequential amendments to the FAAct, the Income Tax Assessment Act 1936, the Income Tax Assessment Act 1997 and the SSAct.

DFISA bonus bereavement payment was introduced with the passage of the Families, Community Services and Indigenous Affairs Legislation Amendment (Further 2007 Budget Measures) Act 2007 that changed the VEA. It also made consequential amendments to the Income Tax Assessment Act 1997, the SSAct and the SS(Admin)Act.