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- Can you receive a Service Pension and the Age Pension?
- How do the eligibility requirements for the DVA Service Pension and the Age Pension differ?
- What DVA Service Pension and Age Pension requirements are the same?
- The DVA Service Pension income test
- The DVA Service Pension assets tests
- What are the DVA Service Pension rates?
- How do you apply for the DVA Service Pension?
- Are DVA Service Pensioners entitled to the same tax offsets as Age Pensioners?
- Can you get a Pensioner Concession Card or a Commonwealth Seniors Health Card if you’re a Service Pensioner?
- Can you get a Commonwealth Seniors Health Card if you’re a Service Pensioner?
A Service Pension is an age-based, means tested pension like the Age Pension but paid to veterans, their partners widows or widowers. You may be eligible if you are a veteran of the Australian Defence Force (the Royal Australian Navy, Australian Army and Royal Australian Air Force) and you:
- Have had active military service
- Are over the age of 60 or are an invalid
- Satisfy residency requirements
- Pass both income and assets tests.
Despite their similarities, it’s important to understand that the Service Pension is different from the Age Pension. A Service Pension is paid by the Department of Veterans’ Affairs (DVA) and the Age Pension is paid by the Department of Human Services (via Centrelink).
Can you receive a Service Pension and the Age Pension?
No, you can’t receive both payments.
How do the eligibility requirements for the DVA Service Pension and the Age Pension differ?
The eligibility requirements for the DVA Service Pension and the Age Pension differ in two main ways:
- You don’t need to have had active military service to qualify for the Age Pension
- If you’re an eligible DVA Service Pensioner, you’ll start receiving this payment when you turn 60 (or earlier if you become an invalid). The current Age Pension eligibility age on the other hand is 66 years, and this age will rise progressively till it’s 67 for all Australians by 1 July 2023.
What DVA Service Pension and Age Pension requirements are the same?
Two of the eligibility requirements for both payments are the same:
- You must be an Australian resident at the time you apply for the DVA Service Pension, as you must be to qualify for the Age Pension.
- The income and assets tests for both pensions are the same. In addition, the pension rate you’re entitled to receive for both the DVA Service Pension and the Age Pension is based on the test that gives the lowest rate. For example, if the income test qualifies you for a fortnightly pension payment of $600 and the assets tests qualifies you for a payment of $700, you’ll be paid the lower amount (i.e. $600).
The DVA Service Pension income test
Under the income test, you can receive the maximum DVA Service Pension if your fortnightly income is within certain limits. For every dollar in income you earn above these limits, your Service Pension reduces by 50c until it cuts out entirely. There are different limits for singles and couples, as you can see in the tables below.
| Living arrangement | Fortnightly income limit | Amount that fortnightly pension reduces by above this limit |
|---|---|---|
| Single person | $174 | 50 cents for each dollar over $174 |
| Couple living together or apart due to ill health | $308 | 50 cents for each dollar over $308 |
Source: Department of Veterans’ Affairs
Your pension cuts off completely once your income reached the level in the following table.
| Living arrangement | Maximum fortnightly income limit |
|---|---|
| Single person | $2,040.80 |
| Couple living together | $3,122.00 combined |
| Couple living apart due to ill health | $4041.60 combined |
Source: Department of Veterans’ Affairs
Couples are deemed to each earn 50% of their combined income for the purposes of the income test, regardless of whether they do or not. Income from superannuation isn’t counted in the income test until you start receiving it via a super pension income stream.
The DVA Service Pension assets tests
You can receive the maximum DVA Service Pension if the value of your assets is within certain thresholds. There are different thresholds for singles and couples, as well as for homeowners and non-homeowners. The Service Pension rate reduces progressively if the value of your assets exceeds your relevant threshold, up until a level where it cuts off completely.
The asset value thresholds to receive the maximum Service Pension are provided in the table below.
| Living arrangement | Homeowner | Non-homeowner |
|---|---|---|
| Single person | $263,250 | $473,750 |
| Couple (combined) | $394,500 | $605,000 |
| Couple separated due to illness (combined) | $394,500 | $605,000 |
Source: Department of Veterans’ Affairs
The table below shows the asset value cut-off points for receiving a part-Service Pension.
| Living arrangement | Homeowner | Non-homeowner |
|---|---|---|
| Single person | $574,500 | $785,000 |
| Couple (combined) | $863,500 | $1,074,000 |
| Couple separated due to illness (combined) | $1,017,000 | $1,227,500 |
Source: Department of Veterans’ Affairs
Couples are deemed to each own 50% of their combined assets for the purposes of the assets test, regardless of whether they do or not. Superannuation assets are not counted in the assets test until you are eligible to receive them (for example, by reaching your preservation age and meeting a condition of release).
What are the DVA Service Pension rates?
There are two DVA Service Pension rates: a singles rate and a couples rate. The couples’ rate is paid even if only one member of the couple receives a Service Pension.
DVA Service Pensions are paid fortnightly, and rates are adjusted in March and September each year in line with movements in the cost of living and average wages. Service Pensioners are also eligible for the pension supplement that Age Pensioners receive. This supplement is designed to help with the costs of prescription medicines and utility bills (like electricity, gas and telephone services).
The current maximum fortnightly rates for singles and couples are provided in the table below. These rates are the same as the current Age Pension rates.
Age Pension rates for a single person
| Amount | Increase | |
|---|---|---|
| Maximum base rate | $882.20 | $13.90 |
| Maximum pension supplement | $71.20 | $0.90 |
| Energy supplement | $14.10 | – |
| Total (per fortnight) | $967.50 | $14.80 |
| Total (per year)* | $25,155 | $385 |
Age Pension rates for a couple (living together)
| Amount (each) | Increase (each) | Amount (combined) | Increase (combined) | |
|---|---|---|---|---|
| Maximum base rate | $665.00 | $10.50 | $1,330.00 | $21.00 |
| Maximum pension supplement | $53.70 | $0.70 | $107.40 | $1.40 |
| Energy supplement | $10.60 | – | $21.20 | – |
| Total (per fortnight) | $729.30 | $11.20 | $1,458.60 | $22.40 |
| Total (per year)* | $18,962 | $291 | $37,924 | $582 |
Source: Services Australia. Applicable 20 September 2021 to 19 March 2022
*Annual amounts are approximate.
How do you apply for the DVA Service Pension?
You can apply for the DVA Service Pension online. Alternatively, you can arrange an appointment at your local DVA office for help with your application.
Are DVA Service Pensioners entitled to the same tax offsets as Age Pensioners?
Yes, there are two potential tax offsets that you may be eligible for if you receive a DVA Service Pension. They are:
In addition to receiving your DVA Service Pension, your income must also fall between certain thresholds for you to be eligible for the SAPTO, LITO or both. Those thresholds are provided in the tables below.
SAPTO
| Living arrangement | Minimum SAPTO income threshold | Maximum SAPTO income threshold | Maximum offset amount |
|---|---|---|---|
| Single | Less than $32,279 | $50,119 | $2,230 |
| Couple | Less than $57,948 | $83,580 | $3,204 ($1,602 each) |
LITO
| Minimum income threshold | Maximum income threshold | Maximum offset amount |
|---|---|---|
| Less than $37,000 | $66,667 | $445 |
It’s important to understand that tax offsets like SAPTO and LITO can only be used to reduce or eliminate your tax liability, they can’t generate you a tax refund.
Your eligibility for SAPTO and LITO is automatically determined (and applied if necessary) by the Australian Taxation Office (ATO) as part of assessing your annual income tax return if you still need to submit one.
Can you get a Pensioner Concession Card or a Commonwealth Seniors Health Card if you’re a Service Pensioner?
Yes, your Pensioner Concession Card will be issued when your Service Pension application is approved by the DVA. A Pensioner Concession Card entitles you to cheaper healthcare and medicines.
Can you get a Commonwealth Seniors Health Card if you’re a Service Pensioner?
No. However, when you apply for your Service Pension the DVA will issue you with one of the following healthcare cards:
- The Gold Card — holders of this card are entitled to have the DVA pay for treatment and health services for all conditions
- The White Card — holders of this card are entitled to have the DVA pay for treatment and health services for specific conditions only
- The Orange Card — holders of this card receive pharmaceutical benefits.
You’ll be eligible for a Gold Card if:
- The only income you receive is a Service Pension and your assets fall within treatment benefit limits
- You’re permanently blind
- You have an impairment from one or more service-related injuries or diseases.
Note that the Gold card is means tested on assets and income.
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