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SRDP Special Rate
Disability Pension

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SRDP and a Medical Discharge

Navigating a medical discharge from ADF? If you’re feeling overwhelmed and unsure what your entitlements are or what the financial implications will be for you as a result, the team at National Service Financial (NSF) are here to help. We work to support Veterans as they wade through the complexities of their approved entitlements and ensure their financial future is secured.

One of these payments, the Special Rate Disability Pension (SRPD) is a particularly complex offering with several determining factors. As qualified financial planners with experience in SRDP payments, we help our clients translate and make sense of what this is and how it can benefit them.

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What Is A Special Rate Disability Pension?

A Special Rate Disability Payment is another form of periodic disability compensation payment provided to Veterans through Department of Veterans Affairs (DVA). This pension is not something you automatically qualify for and requires you to meet certain eligibility criteria.



Unlike other disability support pension payments such as the taxable incapacity payment which ceases with the commencement of the old-age pension, SRDP payments can continue indefinitely.

Notably, while SRDP is counted as income, it is a non-taxable disability pension that still allows former ADF members to participate in paid work for up to ten hours a week.

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Permanent Impairment Payment

Financial Considerations Linked To The SRDP

While opting for the Special Rate Disability Pension can be beneficial, there are a few financial implications that should be reviewed prior to confirming it over another method of compensation. This includes but is not limited to:

The fact that while payments are indefinite, they maybe paid at a lower rate than incapacity payment entitlement due to offsetting arrangements.
Treatment of payments, while exempt from tax, they are assessable as income for social security purposes. This may lower payment amounts received through family tax benefits, child support, disability support pensions and other social security payments.

The taxation treatment of offered payments.
Any superannuation offsetting arrangements that may apply to the MRCA payments that are offered. Your ability to undertake rehabilitation or return to work even on a part-time basis at some stage in the future.

These are all areas that a financial planner can help you address and make sense of in consideration of your personal circumstances.

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Ineligible To Have A Special Rate Disability Pension Paid?

If you are marked as ineligible to receive SRDP payments there are other possibilities for additional assistance and compensation. These include among other options the Invalidity Service Pension and a partner’s rate of a pension if being cared for by your partner.

Many of these payments will include assets tests and a review of your different personal circumstances. At NSF, while we do not process claims for payments we help Veterans identify what they are entitled to or where potential errors have been made.

This means that regardless of whether or not you are approved for a Special Rate Disability Pension payment, it is still worthwhile seeking our expert advice.

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The Importance Of Contacting A Financial Planner

There are so many financial considerations to address when leaving the Defence service, particularly when this is due to medical reasons.

At NSF we recognise that our clients are already dealing with the challenges represented by their health and the often difficult claims process at DVA. Added financial worries are something Veterans simply do not need.

A qualified financial planner has the tools and expertise needed to review your new income stream alongside any other payments such as child support or family tax benefits. They assess your income tax responsibilities, expenses, assets and more to work out a winning financial plan.

This may include identifying opportunities to invest, highlighting areas in which you could save, additional payments you’re entitled to and generally supporting improved financial literacy.

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National Service Financial - We’re Here To Help

At NSF we take the stress out of adjusting to this change in your financial circumstances and work with you to create a sound financial plan. If you are receiving an SRDP or any other form of payment including MRCA permanent impairment payments, taxable incapacity payments, or lump sum compensation, we can assist you to secure the financial future you deserve.

We recognise that the conditions around the Special Rate Disability Pension (SRDP) can be confusing, even for some financial planners. However, as specialists in this disability pension provided by DVA, we help to simplify and make sense of it.

National Service Financial is the leading choice for Veterans seeking professional, easy to follow financial advice from qualified financial planners. No matter where you are in your journey post medical discharge our team can assist – call XXX today to get started.

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