118NCRate of Defence Force Income Support Allowance

118NC Rate of Defence Force Income Support Allowance

DFISA rate where primary payment is neither compensation affected nor prescribed (1) The rate of DFISA on a day that is on or after 20 September 2004 is worked out using method statement 1 in this subsection, unless: (a) Part 3.14 of the Social Security Act (compensation recovery) applies to reduce the rate of the primary payment on that day (in which case see method statement 2 in subsection (2)); or (b) the primary payment is a social security pension or social security benefit that is prescribed for the purposes of this section (in which case, see subsection (3)).

Note: For primary payment see section 118NB.

Method Statement 1

Step 1. Work out the daily provisional payment rate for the primary payment on that day.

Note: For daily provisional payment rate see subsection (4).

Step 2. Work out what would have been the daily provisional payment rate (the notional rate) for the primary payment on that day if both of the following assumptions were made:

First assumption

The first assumption is that the adjusted disability pension payable to the person, or the person’s partner, were an excluded amount (see section 118NA).

Note: This will mean the adjusted disability pension will not be treated as income when calculating the notional rate.

Second assumption

The second assumption is that, if an amount of rent assistance was included in the primary payment, that amount were reduced (but not to less than nil) by the rent reduction amount.

Note: For rent assistance and rent reduction amount see subsection (4).

Step 3. Subtract the daily provisional payment rate under step 1 from the notional rate under step 2. The difference is the rate of DFISA on that day.

DFISA rate where primary payment is compensation affected but not prescribed (2) The rate of DFISA on a day that is on or after 20 September 2004 is worked out using method statement 2 in this subsection if: (a) Part 3.14 of the Social Security Act (compensation recovery) applies to reduce the rate of the primary payment on that day; and (b) the primary payment is not a social security pension or social security benefit that is prescribed for the purposes of this section.

Note: For primary payment see section 118NB.

Method Statement 2

Step 1. Work out the daily provisional payment rate for the primary payment on that day.

Note: For daily provisional payment rate see subsection (4).