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

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 Age Pension eligibility age on the other hand is 67 for all Australians from 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 lower 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, that is, $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 of 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	$204	50 cents for each dollar over $204
Couple living together or apart due to ill health	$360	50 cents for each dollar over $360

Source: Department of Veterans’ Affairs

Your pension cuts off completely once your income reaches the level in the following table.

Living arrangement	Maximum fortnightly income limit
Single person	$2,436.60
Couple living together	$3,725.60 combined
Couple living apart due to ill health	$4,825.20 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 a super pension income stream.

These limits may be slightly higher if your assessable income is reduced under the work bonus.  

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	$301,750	$543,750
Couple (combined)	$451,500	$693,500
Couple separated due to illness (combined)	$451,500	$693,500

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	$674,000	$916,000
Couple (combined)	$1,012,000	$1,254,500
Couple separated due to illness (combined)	$1,196,000	$1,438,000

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.

Service and Age Pension rates for a single person

Age Pension rates for a single person (residents)

	Amount	Increase
Maximum base rate	$1,020.60	$18.10
Maximum pension supplement	$81.60	$1.50
Energy supplement	$14.10	–
Total (per fortnight)	$1,116.30	$19.60
Total (per year)*	$29,023	$510

Age Pension rates for a couple living together (residents)

	Amount (each)	Increase (each)	Amount (combined)	Increase (combined)
Maximum base rate	$769.30	$13.60	$1,538.60	$27.20
Maximum pension supplement	$61.50	$1.10	$123.00	$2.20
Energy supplement	$10.60	–	$21.20	–
Total (per fortnight)	$841.40	$14.70	$1,682.80	$29.40
Total (per year)*	$21,876	$382.20	$43,753	$764.40

Source: Services Australia. Applicable 20 March 2024 to 19 September 2024

*Annual amounts are approximate.

How do you apply for the DVA Service Pension?

DVA services can now be accessed online at its new MyService portal linked to your myGov account. 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:

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 $37,500	$66,667	$700

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 provide you with 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 Veteran Cards (a redesign of the old DVA Gold, White and Orange cards):

• The Veteran Gold Card — holders of this card are entitled to have the DVA pay for treatment and health services for all conditions
• The Veteran White Card — holders of this card are entitled to have the DVA pay for treatment and health services for specific conditions only
• The Veteran Orange Card — holders of this card receive pharmaceutical benefits.

You’ll be eligible for a Veteran 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.