Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Newstart means test slugs veterans.



Download PDFDownload PDF

Senator Mark Bishop Shadow Minister for Veterans’ Affairs Senator for Western Australia

MEDIA RELEASE

Media Details: Senator Mark Bishop 0419 959 892 or Peter Reece 0414 677 441 Parliament House (02) 6277 3101

16th May 2002 Ref:va.ms18/02

Newstart Means Test Slugs Veterans

Veterans with disabilities caused by their service could have their combined pension reduced by up to $188 per fortnight as a result of the Government’s Budget decision to force them off the Disability Support Pension, the Shadow Minister for Veterans’ Affairs, Senator Mark Bishop said today.

While the Newstart allowance is worth $52 a fortnight less than the DSP, the means test for Newstart is much tougher than the means test for DSP. The income free area is reduced from $112 to $62, and there is a taper rate of up to 70 cents in the dollar.

The Minister for Family and Community Services, Senator Vanstone today confirmed this in Parliament.

This reduction is in addition to that of up to $157 per fortnight already deducted from their DSP due to the inclusion of their veteran disability pension in the DSP means test- a policy the Government has promised to remove but has repeatedly reneged on.

The effect of this is that for an ex-service person in receipt of Intermediate Rate compensation from the Department of Veterans’ Affairs for their service caused injury, and unable to work up to 20 hours per week, the value of the combined DVA pension and DSP will be reduced from $768 per fortnight to $579 per fortnight.*

This is simply unconscionable.

There has been no mention of this trickery, and veterans and ex service people need to be warned of what the Howard Government has in store for them. So does anyone else receiving third party payment for injuries and likely to be caught in the trap that has been set.

* see Calculations attached

CURRENT VETERANS' INTERMEDIATE RATE DISABILITY PENSION PLUS CENTRELINK DSP Single rate, no other income, no tax

Intermediate rate DP $504.30

(9-20 hours per week) DSP means test Intermediate rate DP $504.30

Income free area -$112.00

DP subject to means test $392.30

DP subject to means test $392.30

Apply $0.40 taper $0.40

DSP reduced by $156.92

DSP $421.00pf

DSP reduced by -$156.92

DSP after means test $264.08

Income support received Intermediate rate DP $504.30

DSP after means test $264.08

Net pension $768.38

PROPOSED VETERANS' INTERMEDIATE RATE DISABILITY PENSION PLUS CENTRELINK NEWSTART Single rate, no other income, no tax

Intermediate rate DP $504.30

(9-20 hours per week)

Newstart means test Intermediate rate DP $504.30

Income free area -$62.00

DP subject to means test $442.30

Apply $0.50 taper rate to $142 $80.00 $0.50 $40.00

Apply $0.70 taper rate over $142 ($504.30 - $142 = $362.30) $362.30 $0.70 $253.61

Newstart reduced by $293.61

Newstart $369.00pf

Means test reduces Newstart by $293.61

Newstart after means test $75.39

Income support received Intermediate rate DP $504.30

Newstart after means test $75.39

Net pension $579.69

Difference between current and proposed Current $768.38

Proposed $579.69

$188.69

Source: DVA and Centrelink Fact Sheets