Source: http://clik.dva.gov.au/print/book/export/html/16025
Timestamp: 2019-08-19 16:09:03
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﻿ Assessment Process for ISS
Home > Compensation and Support Policy Library > Part 9 Principles for Determining Pension Rate > 9.1 Income and Assets Test Principles > 9.1.2 The Assessment Process > Assessment Process for ISS
In determining the rate of income support supplement [3] applicable to non-blinded war widow/widower-pensioners [3], two separate tests are applied:
the adjusted income test [3], and
the assets test [3].
For the adjusted income test, the total adjusted income [3] is compared to the ordinary/adjusted income free area [3]. The adjusted income free area for a person who is not a member of a couple [3] differs from that for a person who is a member of a couple [3]. It may also be increased if there are dependent children [3] and the pensioner is on transitional rates.
For the assets test, the value of the person's assets is compared to the assets value limit [3] which varies according to whether the person is a member of a couple and whether the person is a homeowner [3]. The resulting rates are compared to the ceiling rate [3] plus any rent assistance payable. Whichever is the lowest (the income reduced rate if all 3 are the same) is added to any remote area allowance [3] payable. The result is the rate of income support supplement.
The rate of ISS [3] for blinded [3] ISS recipients is the ceiling rate [3], free of the income and assets tests. However, any rent assistance payable can be reduced by the disability income rent test [3]. Any rent assistance or remote area allowance payable is added to the ceiling rate.
Income support payments received by the partner [3] of a blind pensioner are not exempt from the income and assets tests.
Whether an ISS recipient has a dependent child or an FTB child [3] can affect:
The same ceiling rate applies regardless of whether the ISS recipient is paid under the standard rules [3] or the transitional rules [3][glossary:.:] The ceiling rate may be increased if the war widows pension is compensation reduced. The increased ceiling rate is the sum of the normal ceiling rate and the amount of the reduction in the war widows pension. This increased ceiling rate is used in the overall calculation process to be compared against the income reduced rate and assets reduced rate.
Determine the person's maximum basic rate [3].
Apply the adjusted income test [3] to work out any reduction for income [3].
Take the reduction for adjusted income [3] (if any) away from the maximum payment rate. The result is called the income reduced rate.
Apply the assets test [3] to work out any reduction for assets [3].
Work out the person's ceiling rate [3].
Work out the amount per year (if any) of remote area allowance [3] payable to the person.
determine the person's maximum basic rate of service pension in accordance with Schedule 5, Part 5, subclause 32(1), (2) or (3). This is the transitional MBR (which is indexed by CPI only), VEA → [18]
Where a person has saved children [3], the steps set out in 'overall ISS rate calculation process' are modified, as follows:
More → [19]
the maintenance income test is applied to the maintenance income [3] of the person to work out the reduction for maintenance income, More → [20]
the reduction for maintenance income is then subtracted from the sum of dependent child add-on, guardian allowance [3] (if payable) and rent assistance (if payable). The resulting amount is added to the provisional payment rate (see step 10 of 'overall ISS rate calculation process'),
when calculating any rent assistance payable, the higher rent assistance thresholds and rates of rent assistance payable to pensioners with saved children are to be used. More → [21]
SCH6-A1(6) [22] of VEA
Section 9.1.3 The Income and Assets Tests [24]
PRH [25]
SCH6-A1(7) [27] of VEA
Section 9.4.3 [29]
SCH6-A4 [31] of VEA
SCH6-B1 [34] of VEA
SCH6-BA1 [36] of VEA
SCH6-C14A [38] of VEA
Chapter 5.1 Rent Assistance [39]
SCH6-E1 [41] of VEA
9.1.3/The Income Test [42]
9.1.3/The Assets Test [44]
Chapter 5.2 Remote Area Allowance [47]
PR — C/View [49]
Schedule 5, Part 5 [51] VEA
VEA → (go back) [52]
Schedule 5, clause 32 [53] VEA
Section 9.4.4 [55]
Chapter 10.6 Maintenance Income [57]
More → (go back) [58]
War widow/widower — pensioner means a person who is receiving a war widow's/widower's pension [3] from the Australian Government.
One element of the means test for income support pensions whereby the rate of pension payable to a pensioner reduces progressively as their assets increase above a certain threshold known as the assets value limit (AVL). [60]
Any income in excess of the free area will reduce the pension at the rate of 50 cents in the dollar, or 40 cents for those receiving a transitional rate of pension. The amount of ordinary and adjusted income free areas is specified in item 1 in Table E-1 in point SCH6-E6 [61]VEA [61].
According to Section 5E(2) [61]of the VEA [61]a person is a member of a couple, if they are:
SSA → [62]
Social Security Act 1991 [63]
SSA → (go back) [64]
Assets value limit is the maximum value of assets a person can have without affecting the person's pension rate. The assets value limit is worked out in accordance with SCH6-F3 of the VEA [61].
The Commission Guideline CM5829: Determining 'permanently blind', 'no useful sight' and 'blinded in both eyes' [65]may be instructive in making a blinded/blindness determination.
For more information, see also 9.4.3/Effect of Children on Remote Area Allowance (RAA) CS Policy Library [66].
According to Schedule 6-B1 of the VEA [61] a MBR is the person's maximum rate is ascertained at the date of grant of the designated pension, and is the maximum annual pension rate payable at the date of grant (excluding allowances).
According to section 5H of the VEA [67] income is:
From 1 January 1998 responsibility for administration of most income support child related payments was transferred to Centrelink [3]. However, saving provisions allow any person in receipt of service pension [3] or income support supplement [3] on 31 December 1997 who would be or is financially disadvantaged by the transfer to continue having their child related payments paid by DVA [3]. Saved children are assessed under the rules contained in the VEA as at 31 December 1997.
According to subsection 5K(1) of the VEA [61], maintenance income in relation to a person, means:
Source URL (modified on 19/10/2016 - 2:12pm): http://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/91-income-and-assets-test-principles/912-assessment-process/assessment-process-iss
[1] http://clik.dva.gov.au/user/login?destination=node/16025%23comment-form
[2] http://clik.dva.gov.au/book/export/html/16025#tgt-cspol_part9_ftn32
[4] http://clik.dva.gov.au/book/export/html/16025#tgt-cspol_part9_ftn33
[5] http://clik.dva.gov.au/book/export/html/16025#tgt-cspol_part9_ftn34
[6] http://clik.dva.gov.au/book/export/html/16025#tgt-cspol_part9_ftn35
[7] http://clik.dva.gov.au/book/export/html/16025#tgt-cspol_part9_ftn36
[8] http://clik.dva.gov.au/book/export/html/16025#tgt-cspol_part9_ftn37
[9] http://clik.dva.gov.au/book/export/html/16025#tgt-cspol_part9_ftn38
[10] http://clik.dva.gov.au/book/export/html/16025#tgt-cspol_part9_ftn39
[11] http://clik.dva.gov.au/book/export/html/16025#tgt-cspol_part9_ftn40
[12] http://clik.dva.gov.au/book/export/html/16025#tgt-cspol_part9_ftn41
[13] http://clik.dva.gov.au/book/export/html/16025#tgt-cspol_part9_ftn42
[14] http://clik.dva.gov.au/book/export/html/16025#tgt-cspol_part9_ftn43
[15] http://clik.dva.gov.au/book/export/html/16025#tgt-cspol_part9_ftn44
[16] http://clik.dva.gov.au/book/export/html/16025#tgt-cspol_part9_ftn45
[17] http://clik.dva.gov.au/book/export/html/16025#tgt-cspol_part9_ftn46
[18] http://clik.dva.gov.au/book/export/html/16025#tgt-cspol_part9_ftn47
[19] http://clik.dva.gov.au/book/export/html/16025#tgt-cspol_part9_ftn48
[20] http://clik.dva.gov.au/book/export/html/16025#tgt-cspol_part9_ftn49
[21] http://clik.dva.gov.au/book/export/html/16025#tgt-cspol_part9_ftn50
[22] clik://LEGIS/VEA/point SCH6-A1(6)/Schedule 6
[23] http://clik.dva.gov.au/book/export/html/16025#ref-cspol_part9_ftn32
[24] http://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/91-income-and-assets-test-principles/913-income-and-assets-tests
[25] http://clik.dva.gov.au/compensation-and-support-reference-library/payment-rates/historical-payment-rates
[26] http://clik.dva.gov.au/book/export/html/16025#ref-cspol_part9_ftn33
[27] clik://LEGIS/VEA/point SCH6-A1(7)/Schedule 6
[28] http://clik.dva.gov.au/book/export/html/16025#ref-cspol_part9_ftn34
[29] http://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/94-children/943-effect-children-assessment-income-support-payments
[30] http://clik.dva.gov.au/book/export/html/16025#ref-cspol_part9_ftn35
[31] clik://LEGIS/VEA/Point SCH6-A4
[32] http://clik.dva.gov.au/book/export/html/16025#ref-cspol_part9_ftn36
[33] http://clik.dva.gov.au/book/export/html/16025#ref-cspol_part9_ftn37
[34] clik://LEGIS/VEA/Point SCH6-B1
[35] http://clik.dva.gov.au/book/export/html/16025#ref-cspol_part9_ftn38
[36] clik://LEGIS/VEA/Point SCH6-BA1
[37] http://clik.dva.gov.au/book/export/html/16025#ref-cspol_part9_ftn39
[38] clik://LEGIS/VEA/Point SCH6-C14A
[39] http://clik.dva.gov.au/compensation-and-support-policy-library/part-5-income-support-allowances-and-benefits/51-rent-assistance
[40] http://clik.dva.gov.au/book/export/html/16025#ref-cspol_part9_ftn40
[41] clik://LEGIS/VEA/Point SCH6-E1
[42] http://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/91-income-and-assets-test-principles/913-income-and-assets-tests/income-test
[43] http://clik.dva.gov.au/book/export/html/16025#ref-cspol_part9_ftn41
[44] http://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/91-income-and-assets-test-principles/913-income-and-assets-tests/assets-test
[45] http://clik.dva.gov.au/book/export/html/16025#ref-cspol_part9_ftn42
[46] http://clik.dva.gov.au/book/export/html/16025#ref-cspol_part9_ftn43
[47] http://clik.dva.gov.au/compensation-and-support-policy-library/part-5-income-support-allowances-and-benefits/52-remote-area-allowance-raa
[48] http://clik.dva.gov.au/book/export/html/16025#ref-cspol_part9_ftn44
[49] http://clik.dva.gov.au/csrefprcurr
[50] http://clik.dva.gov.au/book/export/html/16025#ref-cspol_part9_ftn45
[51] clik://LEGIS/VEA/Part 5/schedule 5
[52] http://clik.dva.gov.au/book/export/html/16025#ref-cspol_part9_ftn46
[53] clik://LEGIS/VEA/section 32/schedule 5
[54] http://clik.dva.gov.au/book/export/html/16025#ref-cspol_part9_ftn47
[55] http://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/94-children/944-payments-respect-saved-children
[56] http://clik.dva.gov.au/book/export/html/16025#ref-cspol_part9_ftn48
[57] http://clik.dva.gov.au/compensation-and-support-policy-library/part-10-types-income-and-assets/106-maintenance-income
[58] http://clik.dva.gov.au/book/export/html/16025#ref-cspol_part9_ftn49
[59] http://clik.dva.gov.au/book/export/html/16025#ref-cspol_part9_ftn50
[60] http://clik.dva.gov.au/glossary/assets-value-limit-avl
[61] http://www.comlaw.gov.au/Series/C2004A03268
[62] http://clik.dva.gov.au/book/export/html/16025#tgt-SSA_ftn1
[63] http://www.comlaw.gov.au/Series/C2004A04121
[64] http://clik.dva.gov.au/book/export/html/16025#ref-SSA_ftn1
[65] http://clik.dva.gov.au/compensation-and-support-reference-library/commission-guidelines/cm5829-determining-permanently-blind-no-useful-sight-and-blinded-both-eyes#
[66] http://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/94-children/943-effect-children-assessment-income-support-payments/effect-children-remote-area-allowance-raa
[67] http://clik/health-procedure-library/health-information-and-management-notes-himn/vhc/072014-vhc-veterans-home-care