What is the DVA (Department of Veterans’ Affairs) Service 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:

1. You don’t need to have had active military service to qualify for the Age Pension
2. 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:

1. 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.
2. 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.

Living arrangement	Maximum fortnightly pension	Fortnightly pension supplement	Total fortnightly payment
Single	$850.40	$83.00	$933.40
Couple (each)	$641.00	$62.50	$703.50

Source: Department of Veterans’ Affairs

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 Veterans’ Information Service 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:

1. The Seniors and Pensioners’ Tax Offset (SAPTO)
2. The Low Income Tax Offset (LITO)

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.