When it comes to pensions and payments made by the Department of Veterans Affairs, it is easy to be overwhelmed. There are quite a few to make sense of. At National Service Financial, while we cannot help you apply for a DVA pension or payment, we can guide you through how to make the most of whatever Veteran Affairs pension you receive. We can also help you learn how to budget your DVA pension in order to maximise its benefit. Specialising in ADF finances and DVA payments, we’re the team you can trust to help you achieve financial stability and security at every stage of your ADF journey.
What Is A Veteran Affairs Pension?
A Veterans Affairs pension is a payment made to former Defence force members to provide a regular source of income for them and their dependents.
There are several types of pensions and payments made by the DVA to former members who have either:
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Been discharged due to medical reasons or
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Who have served in war or war-like environments
Who Can Qualify For A Veteran Affairs Pension?
Each Veteran Affairs pension has its own unique qualifying criteria and claims process. Want to learn more about your situation and potential to claim for and receive a Veteran Affairs pension? We recommend reviewing the detailed information available on the DVA’s website.
Types Of Veterans Affairs Pensions
Service Pension
Service pensions fall into three categories:
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Age Service Pension. Designed to provide a regular income to Veterans, this payment can be made to Veterans who meet the age requirement or those who are incapacitated for work. It is available at a younger age than the government’s social security age pension.
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Invalidity Service Pension. For Veterans with qualifying service or those that have been permanently incapacitated for work, the DVA provides an invalidity service pension. Eligibility is not linked to the age of the applicant. Unlike some other Veterans Affairs pensions your incapacity does not have to have been caused by service in order to qualify. You will need to be assessed for your permanent incapacity and meet strict criteria before this pension will be approved.
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Partner Service Pension. Recipients of this pension include; partners of Veterans with qualifying service, former partners of Veterans with qualifying service and a widow or widower of a Veteran who had qualifying service.
Unlike the invalidity and age pension, you must be at least 60 years of age before you can claim a partner service pension. In special circumstances, this may be lowered to 50 years of age.
Special Rate Disability Pension
This pension is paid in lieu of incapacity payments to Veterans who have an injury or disease assessed at 50 or more impairment points. Unlike incapacity payments, it is tax-free and continues indefinitely regardless of when the old age pension begins.
While receiving the SRDP, you may also qualify for a service pension.
Other Veterans Affairs Payments
While not referred to as Veterans Affairs pensions, there are other payments or compensation you may receive from the DVA as a Veteran. These include but are not limited to:
Incapacity Benefits
As mentioned above, incapacity payments have similar qualifying criteria to the SRDP but are taxable and cease in line with the old age pension age.
As a Veteran, you may be offered the SRDP in place of incapacity payments and will need to carefully weigh up this decision and its financial impacts. The DVA recommends seeking qualified professional help with this decision and also offers reimbursement towards the costs involved.
Permanent Impairment Payments
Permanent Impairment compensation is paid to Veterans in acknowledgement of any permanent physical and/or mental
impairment that exists due to accepted conditions caused by their time in service. It also acknowledges any lifestyle restrictions your illness or injury has caused. Permanent impairment points are points given on the basis of the disability or injury to determine the amount a veteran or ADF member will receive.
It is not considered to be a payment for income support or economic loss. As with other impairment-related payments, you will be assessed, and payment will be calculated based on the outcome of the assessment.
Veteran Payment
This payment is a short-term support payment made to Veterans awaiting a decision on their claims to the DVA.
Where To Find Help
No matter which Veteran Affairs pension or payment you receive it is vital that you create a budget and financial plan to manage it. There are many financial considerations when leaving the ADF so having trusted financial advice can make all the difference.
Some DVA payouts are taxable or can exclude you from eligibility for other payments, including Family Tax Benefits, Child Support payments, and more.
Understanding your financial position and tax obligations can help you better prepare for a financially secure future. For professional support and advice from experienced financial advisers, contact National Service Financial today. We are dedicated to helping veterans and ADF personnel become financially educated so they can make informed decisions.
