Source: http://clik.dva.gov.au/print/book/export/html/16289
Timestamp: 2019-10-14 11:24:45
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﻿ Disability Income Rent Test
Home > Compensation and Support Policy Library > Part 5 Income Support Allowances and Benefits > 5.1 Rent Assistance > 5.1.3 Payment of Rent Assistance > Disability Income Rent Test
When calculating the amount of rent assistance [3] (RA) payable to a service pension [3] or income support supplement [3] recipient, any disability income [3] received by that person or their partner [3], is counted as income and may reduce the rate of RA payable to the person. The method of calculating the amount by which RA is reduced due to disability income is known as the disability income rent test [3]. The amount calculated is the RA reduction amount.
The disability income rent test incorporates a rent assistance free area [3]. The RA free area is the amount of disability income an income support pensioner may receive before their rate of rent assistance is reduced by the disability income rent test. The RA free area applicable to a person is identical to the income free area [3] the person receives as an income support pensioner and is determined by their family situation. If a person's disability income does not exceed the applicable RA free area, there will be no reduction to the rate of RA under the disability income rent test.
RA reduction amount = (disability income [3] – RA free area [3]) X taper rate [3]
The disability income rent test [3] also applies to blinded service pensioners and blinded income support supplement recipients if their income support payment includes a rent assistance component.
SCH6-C12 [11] of VEA
SCH6-C14A [11] of VEA
SCH6-C15 [11] of VEA
PR — C/View [14]
5.1.3/Calculating the Rate of Rent Assistance Payable [16]
Chapter 3.10 Financial Hardship [19]
Chapter 9.11 Compensation Recovery [21]
9.1.3/The Income and Assets Test - General Provisions [23]
disability pension (as defined by section 5Q(1) [25] of the VEA) including disability pension paid by foreign governments; and
For ISS [3] recipients, disability income when calculating the rent assistance reduction amount (as set out in the table in SCH6-C14B of the VEA) has the same meaning as adjusted disability pension [3].
The disability income rent test is the method of calculating the amount by which a pensioner's rent assistance is reduced because of the disability income [3] paid to them or their patner [3]. The amount calculated is the RA reduction amount.
RA reduction amount = disability income [3] – rent assistance free area [3]X taper rate [3]
The rent assistance free area is the amount of disability income [3] an income support pensioner may receive without suffering any reduction in rent assistance under the disability income rent test [3]. The rent assistance free area applicable to a person is identical to the income free area [3] the person receives as an income support pensioner and is determined by their family situation.
The taper rate is used to reduce the rate of a person's service pension [3] or income support supplement [3] if they or their partner have any ordinary income [3] in excess of the ordinary/adjusted income free area [3] (IFA). Any income in excess of the IFA will reduce the maximum payment rate by a 'taper rate' of 50 cents in the dollar (or 40 cents for transitional rate of pension). The result is the income reduced rate.
The same taper rate is also used in disability income rent test [3] calculations to determine the amount of rent assistance [3] for service pensioners and income support supplement recipients.
Source URL (modified on 20/10/2014 - 4:41pm): http://clik.dva.gov.au/compensation-and-support-policy-library/part-5-income-support-allowances-and-benefits/51-rent-assistance/513-payment-rent-assistance/disability-income-rent-test
[1] http://clik.dva.gov.au/user/login?destination=node/16289%23comment-form
[2] http://clik.dva.gov.au/book/export/html/16289#tgt-cspol_part5_ftn40
[4] http://clik.dva.gov.au/book/export/html/16289#tgt-cspol_part5_ftn41
[5] http://clik.dva.gov.au/book/export/html/16289#tgt-cspol_part5_ftn42
[6] http://clik.dva.gov.au/book/export/html/16289#tgt-cspol_part5_ftn43
[7] http://clik.dva.gov.au/book/export/html/16289#tgt-cspol_part5_ftn44
[8] http://clik.dva.gov.au/book/export/html/16289#tgt-cspol_part5_ftn45
[9] http://clik.dva.gov.au/book/export/html/16289#tgt-cspol_part5_ftn46
[10] http://clik.dva.gov.au/book/export/html/16289#tgt-cspol_part5_ftn47
[12] http://clik.dva.gov.au/book/export/html/16289#ref-cspol_part5_ftn40
[13] http://clik.dva.gov.au/book/export/html/16289#ref-cspol_part5_ftn41
[14] http://clik.dva.gov.au/csrefprcurr
[15] http://clik.dva.gov.au/book/export/html/16289#ref-cspol_part5_ftn42
[16] http://clik.dva.gov.au/compensation-and-support-policy-library/part-5-income-support-allowances-and-benefits/51-rent-assistance/513-payment-rent-assistance/calculating-rate-rent-assistance-payable
[17] http://clik.dva.gov.au/book/export/html/16289#ref-cspol_part5_ftn43
[18] http://clik.dva.gov.au/book/export/html/16289#ref-cspol_part5_ftn44
[19] http://clik.dva.gov.au/compensation-and-support-policy-library/part-3-income-support-eligibility/310-financial-hardship
[20] http://clik.dva.gov.au/book/export/html/16289#ref-cspol_part5_ftn45
[21] http://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/911-compensation-recovery
[22] http://clik.dva.gov.au/book/export/html/16289#ref-cspol_part5_ftn46
[23] 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-and-assets-test-general-provisions
[24] http://clik.dva.gov.au/book/export/html/16289#ref-cspol_part5_ftn47