DVA Permanent Impairment (PI) compensation, whether paid as a periodic payment or lump sum is not counted as income for Service Pension or Income Support Supplement (ISS) purposes.
However, if you are seeking income support under the financial hardship rules, any periodic PI compensation will be counted as income.
If you choose to convert all or part of your PI compensation to a lump sum, income will be deemed and will count as income.
Depending upon your other income, this may have an impact on the rate of Service Pension or ISS paid to you. The lump sum will be counted as an asset for assets test purposes.
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