The SRDP provides an alternative form of compensation to the Incapacity Payments. It is not automatically granted and if you are assessed as being eligible for the SRDP you will be offered the choice to commence SRDP or continue of Incapacity Payments.
Yes, the SRDP is Tax Free and Incapacity Payments are generally taxable.
Yes is does, the maximum SRDP rate will be offset by 60% of your MSBS Invalidity Pension.
No it is not, often we will have clients who are entitled to an SRDP rate of $0 however given the way it interacts with other compensation payments it can provide a greater entitlement to the Invalidity Service Pension that Incapacity Payments give.
You normally have 12 months from the time the offer is made to lodging your doc’s to select whether to stay on Incapacity payments or go onto SRDP.
Advisers who are listed on the ADF Financial Advice Referral Program have made a range of written declarations to the Department of Defence including that, in connection with the Program:
- They will at no times be under the direct or indirect influence of a financial product manufacturer; and
- The only means by which they will receive remuneration from the provision of financial advice to ADF members and their families is through the charging of genuine fees for service and will not charge or receive commissions, trailing commissions, asset-based fees for service, bonuses (of whatever description) and any other form of remuneration as defined by law or that could reasonably give rise to a conflict between the adviser’s interests and the interests of the adviser’s clients.
In all decisions and determinations DVA related it is important to remember that your decisions will have lifetime implications and the legislation is complex.
It is very important that when you are faced with making a decision around your DVA entitlements, you seek advice from a Licensed Financial Adviser. This is why the DVA provides funds for this to occur and require it prior to many form lodgements.
We are a listed adviser to the ADF Financial Services Consumer Centre linked here.
We offer a complimentary and obligation-free 10 minute phone discussion to explore likely advice needs prior to committing to an initial appointment. Information discussed will be general advice only.
