Effect of periodic compensation on partner's income support payment 117-03010010

Periodic compensation received will be a direct deduction for the recipient. Any excess compensation will be deemed to be part of the partner's own ordinary income.

Apply excess compensation amounts to the partner if the compensation recipient:

• is not being paid and
• their periodic compensation exceeds the maximum basic rate for which they qualify

Department of Veterans Affairs (DVA) compensation affected pensions are deemed as a Compensation Affected Payment and should be assessed as qualified for a pension. They include:

• Invalidity Service Pension
• Partner Service Pension
• Veteran Payment
• Income Support Supplement (ISS)

Assess periodic compensation for recipients receiving a payment that is not a CAP, such as ABSTUDY as ordinary income. This may affect their partner under the relevant ordinary Income Test.

Assess the periodic compensation they receive as their ordinary income. It may affect their partner under the combined ordinary Income Test if the partner is a pensioner or for partners on allowance.

Assess periodic compensation under the ordinary income test if the partner of a compensation recipient is in receipt of a saved compensation affected payment (SCAP).

Ignore excess compensation when assessing the partner's SCAP if the compensation recipient claims and cannot be paid due to direct deductions.

Compensation cannot count as a person's income and direct deductions at the same time.

• Treat the compensation as ordinary income of the compensation recipient, no excess compensation is calculated
• Apply a beneficial approach when assessing the partner's rate

Do this where:

• the date of incident occurred prior to the compensation recipient being on a CAP, and
• the compensation recipient is not qualified for any CAP at the time of the incident and
• the partner has lodged a claim for a CAP, or is qualified for and receiving a CAP

Use the Multical debt calculator if arrears of periodic compensation are received after 20 September 2001 that back pay for periods prior to that date. CMS calculates partner compensation rates before 20 September 2001 using rules that only apply if the compensation was actually received before this date.