Defence Force Income Support Allowance (DFISA) 108-03060000

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Description

DFISA Summary (DFS) screen - Process Direct

This screen displays a summary of the DFISA data calculated by Services Australia, which was transmitted to the Department of Veterans' Affairs (DVA) for payment.

Go to the DFISA Summary (DFS) screen.

The Display Details for DFISA table displays these fields:

• DOE: the date of effect for the DFISA rate
• Reason: the reason why DFISA is payable, or has stopped being paid. The reason codes are:
• GRT - DFISA has become payable due to a grant of income support
• VAR - Variation in the rate of DFISA
• SUS - DFISA not payable as primary payment has been suspended
• CNC - DFISA not payable as primary payment has been cancelled
  Note: all DFISA recipients will have a code of CNC with an effective date of 1 January 2022, as Adjusted Disability Pensions will not be included in the income test from that date
• Ben Type: the customer’s primary payment
• Daily rate $: the daily rate of DFISA to be paid by DVA
• Manual: is the manual rate indicator. If it is:
• blank - the system has automatically calculated DFISA
• Y - a rate has been manually inserted
• Tax: DFISA taxability. Y or N. This is determined by the taxability of the primary payment. That is, if the primary payment is taxable, DFISA will be taxable

DFISA Summary (DFS) screen - Customer First and Customer Record

This screen displays a summary of the DFISA data calculated by Services Australia, which is transmitted to the Department of Veterans' Affairs (DVA) for payment. The DFS screen displays the following fields:

• C/P indicates whether DFISA was being paid to the customer or their partner
• DOE date of effect for the DFISA rate
• Reason provides the reason why DFISA is payable, or has stopped being paid. The reason codes are:
• GRT - DFISA has become payable due to a grant of income support
• VAR - Variation in the rate of DFISA
• SUS - DFISA not payable as primary payment has been suspended
• CNC - DFISA not payable as primary payment has been cancelled
• Benefit type the customer’s primary payment
• Daily rate displays the daily rate of DFISA to be paid by DVA. The amount is obtained from the DFISA Calculation Details (DFD) screen
• Manual the manual rate indicator. Blank if the system has automatically calculated DFISA. ‘Y’ if a rate has been manually inserted
• Tax DFISA taxability. Either ‘Y’ or ‘N’. This is determined by the taxability of the primary payment. That is, if the primary payment is taxable, DFISA will be taxable
• AMR Activity Management Reference. This field will include the activity number that caused the change in rate of DFISA. Further information on the changes made in that AMR is available from the ES screen

From the DFS screen, it is possible to 'S'elect a date of effect line which will go to the DFISA Calculation Details (DFD) screen to give further information on the data transmitted for that date.

There will be no dates of effect coded post 1 January 2022, as Adjusted Disability Pensions will not be included in the income test from that date.

DFISA Calculation Details (DFD) screen - Customer First and Customer Record

This screen displays the data used to determine the daily rate of DFISA. Some fields can be selected to go to the data used to calculate the figure.

When the DFD screen is displayed, the Effective Period field will be unprotected. This allows the user to insert a new date and a new rate in the DFISA Manual Override $ field when a manual rate override is required. Only authorised staff from the DVA Clearance Team can update these fields.

Note: DFISA rates cannot be keyed with effective periods from 1 January 2022 by any staff.

All other information on this screen is 'read only'.

Type DFD in the Nxt field to enter the screen. It can also be selected by typing ‘S’ next to any entry on the DFISA Calculation Summary (DFS) screen.

The following fields will be shown separately for the customer and partner:

• Income the customer’s ordinary income used to calculate DFISA (not including Adjusted Disability Pension from DVA)
• DVA DP Adjusted Disability Pension from DVA income
• Current RA Rent Assistance (RA) entitlement
• Notional RA A notional RA entitlement is calculated by applying the DVA disability income rent test
• Current entitlement actual income support amount
• Notional entitlement income support amount that would be paid if Adjusted Disability Pension from the DVA was excluded from the income test and the DVA disability income rent test is applied)
• Partner Income partner’s ordinary income (not including Adjusted Disability Pension from DVA)
• Partner DVA DP partner’s Adjusted Disability Pension from DVA (if any)
• DFISA Daily Rate to 4 decimal points. This amount is obtained by subtracting the current entitlement from the notional entitlement (including RA amounts) and dividing by 14
• DFISA Manual Override to 4 decimal points. This field allows a manual rate to be entered if the system cannot automatically calculate the correct DFISA rate

DFISA Lump Sum (DFLS) screen - Customer First and Customer Record

The DFLS screen includes DFISA customers’ payment details for:

• DFISA Lump Sum Bereavement amount
• DFISA Pension Bonus
• DFISA Pension Bonus Bereavement amount

The screen displays:

• the lump sum amount paid by Services Australia
• the notional lump sum amount. This is the amount that would be paid if the Adjusted Disability Pension from DVA was excluded from the lump sum calculation and the DVA disability income rent test was applied
• the DFISA lump sum amount. This is the notional lump sum minus the Services Australia lump sum

The system automatically calculates the DFISA lump sum amount and transmits this to DVA for payment.

If the system is unable to calculate the lump sum, staff from the DVA Clearance Team have update access to the DFLS screen and can calculate and update the DFISA lump sum manually.

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Description

Screen shot (click for expanded image)

1

A customer’s entitlement period end date and reporting date is 27 October 2017. The start date for this entitlement period is 14 October 2017.

The system calculates and displays a provisional DFISA rate for the start of the entitlement period. This is the DFISA rate that would apply if the customer did not report any income.

The provisional rate of DFISA will be visible on the DFS screen but it is not transmitted to DVA as the customer has not yet reported.

Screen shot of the DFISA Summary screen

2

However, the system will send a zero rate to DVA for 14 October 2017. This will halt DVA DFISA payments until the customer reports at the end of the entitlement period.

The zero rate of DFISA is not visible on the DFS screen, but it can be viewed by selecting the DFISAOUT-N trigger on the Transaction/Trigger List (TTL) screen, then viewing the ETT.TRN.DATA.TEXT field.

Customer reports at the end of the entitlement period

When the customer reports at the end of the entitlement period, the income test is applied and a new DFISA rate is calculated for the entire period. The new DFISA rate will be displayed on the DFS screen from the start of the entitlement period (DOE 14 October 2017), and the rate will be transmitted to DVA for payment.

Once again, the DFS screen will display a provisional rate of DFISA for the start of the next entitlement period (that is, the rate that would apply if the customer did not report any income, in this case 24.1482).

Screen shot of the DFISA Summary screen showing the provisional rate

3

The system will send a zero rate of DFISA for the start of the next entitlement period (that is, 28 October 2017). The new DFISA rate and the zero rate can be viewed by selecting the DFISAOUT-N trigger on the Transaction/Trigger List (TTL) screen.

Screen shot of the Transaction/Trigger List (TTL) screen

4

View the ETT.TRN.DATA.TEXT field.

Screen shot of the ETT.TRN.DATA.TEXT field

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Description

DFISA notional rate calculation for partner excess income with Rent Assistance

Bob and Harry are partnered.

Bob receives JobSeeker payment of

$565.40 Basic + $7.90 CES = $573.30 + RA $66.40 = $639.70 f/n

Harry is on Austudy and receives:

$557.90 Basic + $7.70 CES = $565.60 + RA $66.40 = $632.00

Bob also receives an ADP from DVA at rate of $513.10 f/n, and has a total personal income of $1887.83 f/n.

Harry has no personal income.

The Partner Income Free Area (PIFA) for this example is :

• (Max Rate $639.70 - $53) divided by 0.60 + $256 = $1234

To calculate Harry’s Austudy DFISA rate:

Step 1 – Actual rate calculation

Determine the partner excess for Harry’s Austudy:

Bob’s total income – Partner Income Free area (PIFA) = Partner excess income

$1887.83 – $1234 = $392.30

Determine Actual rate:

• Max rate Austudy - Personal Affecting Income - Partner excess income = Actual income
• $632 - $0.00 - $392.30 = $239.70

Step 2 – Notional rent test calculation

To calculate the notional rate for Harry, Bob’s ADP needs to be excluded from the calculation and the DVA disability rent test applied.

Use the following equation to calculate the notional partner income:

• Total income – ADP = notional partner income
• $1887.83 - $513.10 = $1374.73

Apply the PIFA calculation:

• $1374.73 - $1234 = $140.73

Calculate the rent reduction amount as follows:

• (ADP - Income Free Area (IFA)) x 0.50 = Rent Reduction Amount (RRA)
• (513.10 - $437) x 0.50 = $38.05 RRA

Actual partner excess income – notional partner excess = ADP excess income

$392.30 - $140.73 = $251.57

Step 3

• DP excess income = Rent Reduction amount + Total Rent Reduction amount
• $251.57 + $38.05 = $289.62

To calculate notional rent assistance payable:

• RA payable - Total Rent Reduction Amount = Notional Rent
• $66.40 - $289.62 = $0.00 as figure is a negative amount.

Step 4

To calculate the notional rate of Austudy for Harry:

• Max rate + CES + Notional RA = Max Notional Rate
• $557.90 + $7.70 CES + $0 RA = $565.60

• Max notional – Personal income – notional partner excess income = Notional rate
• $565.60 - $0.00 - $140.73 = $424.87

Final DFISA rate calculation for Harry will be:

• Notional - Actual divided by 14 = daily DFISA rate
• $424.87 - 239.70 = $185.17/14 = $13.226 daily rate

Example

Description

Notional Rate of RA for a Pensioner couple

John and Helen receive Age Pension plus Rent Assistance of $62.70 each.

John also receives a 100% Disability Compensation Payment (DP) from DVA, at a fortnightly rate of $488.40

Step 1

Obtain the customer’s actual rate of RA.

The couple’ actual rate of RA is $62.70 each.

Step 2

Obtain the RA reduction amount by applying the partnered pension income test to the DVA Disability Compensation Payment (DP) income amount:

• Combined rate of DVA DP income / 2 = $488.40 / 2 = $244.20 DVA DP income each pf
• Income free area = $150.00 pf each
• Excess income = $244.20 - $150.00 = $94.20 each
• RA reduction amount = $94.20 x 0.5 (taper) = $47.10 each

Step3

Subtract the RA reduction amount from the actual rate of RA. This amount equals the notional rate of RA:

• Actual rate of RA = $62.70
• RA Reduction amount = $47.10
• Notional rate of RA = $62.70 - $47.10 = $15.60

Step 4

The notional rate of RA is then included in the customer’s DFISA rate calculation.

DFISA = (notional rate of pension or benefit + notional rate of RA) minus (actual rate of pension or benefit + actual rate of RA)

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Description

DFISA Lump Sum Bereavement Payment historical information

If a deceased customer or their partner were in receipt of DFISA payments, the surviving partner may be entitled to a DFISA Lump Sum Bereavement Payment (LBP) payment.

The calculation for the actual LBP amount payable to the surviving partner is detailed in Calculation of a Lump Sum Bereavement Payment (LBP).

A notional LBP calculation is done using the same formula as the actual BLS but using notional rate amounts for the Combined Member of a Couple Rate (CMCR) and the surviving partner’s New Rate (NR). These are the CMCR and NR amounts that would be payable if the Adjusted Disability Pension from DVA was not included in the income test, and the DVA disability income rent test was applied.

The DFISA Lump Sum Bereavement Payment amount is obtained by subtracting the actual LBP from the notional LBP.

Note: customers who are current on an ISP but receiving a zero rate (CZR) may also require a calculation of DFISA LBP.

Both members of the couple paid by Services Australia

The DFISA LBP will be calculated automatically and transmitted to DVA for payment. The amount can be viewed on the DFLS screen.

Deceased customer paid by DVA, surviving partner paid by Services Australia

The LBP and DFISA LBP must be calculated manually by the DVA Clearance Team and coded on the DLFS screen.

The deceased customer’s final payment details must be obtained from DVA:

• deceased customer’s ISP rate prior to death
• deceased customer’s DFISA rate (if any) prior to death
• deceased customer’s member of a couple rate (if illness separated)
• date of death
• entitlement period end date
• date death was notified

The deceased customer’s DVA details are combined with the surviving partner’s rate details to calculate both the actual LBP and notional LBP.

Note: when calculating both actual and notional LBP, the Entitlement Period End Dates (EPED) from the DVA pay cycle are used.

Deceased customer paid by Services Australia, surviving partner paid by DVA

DVA Bereavement teams will contact the DVA Clearance Team to obtain the information required to calculate and pay LBP and DFISA LBP to the surviving partner. This information includes:

• deceased customer’s ISP rate prior to death
• date of death
• entitlement period end date
• date death was notified

Deceased customer paid by DVA, surviving partner paid by Services Australia

Ian and Dianne are a pension couple who own their own home – Ian passed away on 28 November 2017.

• Ian received a TPI Disability Compensation Payment (TPI) of $1373.80 pf from DVA. The couple have other ordinary income of $125.00 each pf
• DVA were notified of the death on 1 December 2017
• Ian’s DVA entitlement period end date (EPED) is 4 December 2017, so the death was actioned within the entitlement period in which the death occurred
• Note the deceased customer’s entitlement period (that is, the DVA entitlement period) is used in the LBP calculation

Prior to death, Ian received a Service Pension from DVA at the maximum rate of $674.20 pf.

• Ian’s TPI is not treated as income for the Service Pension as it is exempted from the income test under the Veterans’ Entitlements Act
• Ian received the maximum rate of Service Pension as their ordinary income of $125.00 is below the income free area of $150.00

Prior to Ian’s death, Dianne received an Age Pension of $343.25 pf paid by Services Australia, and a Defence Force Income Support Allowance (DFISA) payment of $330.95 pf from DVA.

• TPI is treated as income for Dianne’s Age Pension. As this reduces the rate of Age Pension, Dianne is entitled to DFISA and may be entitled to a DFISA LBP
• To obtain the DFISA LBP amount, a notional rate of Age Pension is calculated where TPI is excluded from the income test. This rate will be used in the LBP calculation to determine Dianne’s notional LBP entitlement
• Dianne’s actual LBP entitlement is then subtracted from the notional LBP to obtain the DFISA LBP amount
• Dianne’s notional rate of Age Pension is the maximum rate of $674.20 pf as the ordinary (non TPI) income of $125.00 is below the income free area of $150.00, therefore does not reduce Dianne’s rate

Dianne’s New Single Rate (NR) is $894.40.

Calculating the actual LBP (paid by Services Australia)

The system can’t automatically calculate the LBP payment as Ian was a DVA customer. This must be calculated manually using the LBP formula:

LBP = [(CMCR - NR) x 6] plus [(CMCR - NR) x NDEP/14]

Combined Member of a Couple Rate (CMCR) = $674.20 + $343.25 = $1017.45

New Single Rate (NR) = $894.40

NDEP = 7 (Number of entitlement days from and including the date of death until and including the end of the entitlement period, in this case 28 November to 4 December).

Calculation as follows:

[(CMCR - NR) x 6] = $123.05 x 6 = $738.30

[(CMCR - NR) x NDEP/14] = $123.05 x 7/14 = $61.53

Actual LBP = $738.30 + $61.53 = $799.83

Calculating the notional LBP

The same formula is used to calculate the notional LBP.

The rates used in the formula exclude any DVA DP (in this case TPI) from the income test.

Notional LBP = [(Notional CMCR – Notional NR) x 6] plus [(Notional CMCR – Notional NR) x NDEP/14]

Notional Combined Member of a Couple Rate (Notional CMCR) = $674.20 + $674.20 = $1348.40

Notional New Single Rate (NR) = $894.40 (no need to calculate a Notional NR for this example as Ian’s TPI no longer reduces Dianne’s Age Pension rate)

NDEP = 7

Calculation as follows:

[(Notional CMCR – NR) x 6] = $454.00 x 6 = $2724.00

[(Notional CMCR - NR) x NDEP/14] = $454.00 x 7/14 = $227.00

Notional LBP = $2724.00 + $227.00 = $2951.00

Calculating the DFISA LBP

DFISA LBP = Notional LBP minus Actual LBP

DFISA LBP = $2951.00 – $799.83 = $2151.17

Paying the LBP amounts

The manually calculated actual LBP is paid via the OOP screen. See Calculation of a Lump Sum Bereavement Payment (LBP) for details

The manually calculated DFISA LBP amount should be coded on the DFLS screen, which triggers an automatic transmission to DVA (who will pay the amount). A system issue may prevent the transmission from occurring – in this instance the DVA Clearance Team will advise DVA of the amount manually.

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Description

DFISA Pension Bonus (PBS) historical calculation

The calculations were done automatically by the system in most circumstances. If a manual calculation was required, staff in the DVA Clearance Team took the following steps.

• Obtain the total Pension Bonus amount paid (including top-up/s) = A
• Calculate the customer's notional entitlement to Pension Bonus (that is, if DVA Adjusted Disability Pension was not included as income) = B
• B - A = DFISA PBS amount
• This DFISA PBS amount was automatically transmitted to DVA for payment
• If the DFISA PBS had been calculated manually, the DVA Clearance Team made an arrangement with DVA for the payment to be made

If the Pension Bonus calculation included the comparison of transitional rates and new rates, the DFISA Pension Bonus amount must be included in the rate comparison. The notional Pension Bonus (including top-up) amounts will be compared and the higher of the 2 paid

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Description

DFISA Pension Bonus Bereavement Payment (PBBP) historical calculation

PBBP could be paid to the surviving partner of a customer who dies before being able to claim the Pension Bonus. The combined income of the couple (excluding earnings and compensation) was used to calculate the actual PBBP amount.

A notional PBBP is calculated by excluding the DVA Adjusted Disability Pension received by either the deceased customer or their surviving partner from the PBBP calculation. This calculation is performed automatically by recording the Adjusted Disability Pension amount in the Net DVA DP Payments field on the PBBIA screen.

The DFISA PBBP amount is the difference between the actual PBBP amount and the notional PBBP amount and is displayed on the DFISA Lump Sum (DFLS) screen. When the DFISA PBBP calculation activity is completed, the amount is transmitted to DVA for payment.