ADF Veterans with Children: What You Need to Know
If you have been assessed at 80 impairment points or more, you may be entitled to a tax-free lump sum of over $108,000 per eligible dependent. This payment is provided under the Severe Impairment Payment (SIP) scheme, which was previously known as the Eligible Young Person (EYP) payment.
The Department of Veterans’ Affairs (DVA) introduced this payment to provide financial relief to veterans whose severe service-related impairments have impacted their ability to support their families.
Despite the substantial financial support available, many ADF veterans remain unaware of this entitlement, leaving significant sums unclaimed. If you have children or other dependents who rely on you, it’s crucial to understand how this payment works and how to ensure you receive the full amount you are entitled to.
The SIP is just one part of DVA’s lump sum compensation entitlements. If you’ve been assessed at 80 impairment points or more, you may also be eligible for up to $550,000+ in tax-free lump sum compensation for your own impairment.
👉 Learn more about the Maximum DVA Lump Sum Compensation Here
Who Qualifies for This Payment?
To qualify for the Severe Impairment Payment (SIP), a veteran must meet two critical conditions:
1️⃣ They must have been assessed at 80 impairment points or more and be eligible for Permanent Impairment (PI) compensation under the MRCA.
2️⃣ They must have at least one Eligible Young Person (EYP) or other recognised dependant.
What is an Eligible Young Person (EYP)?
The DVA defines an Eligible Young Person (EYP) as someone who meets one of the following conditions:
- Under 16 years of age, OR
- Between 16 and 25 years old, enrolled in full-time education, and not employed full-time.
Beyond children, the DVA recognises other dependents who rely on the veteran for economic support. These may include:
- Biological, adopted, or stepchildren
- Grandchildren
- Children of a veteran’s partner
- Siblings or half-siblings
If you are unsure whether your dependant qualifies under DVA’s criteria, visit the DVA Compensation for Dependants under MRCA page.
How Does DVA Determine Eligibility?
The DVA applies a specific date when assessing whether your dependents qualify for this payment. This date is directly linked to when you were assessed at 80 impairment points.
- If your 80+ impairment points resulted from a single accepted condition, the relevant date is when you lodged the claim for that condition.
- If your impairment is the result of multiple accepted conditions, the relevant date is when you lodged the most recent claim for any of those conditions.
This relevant date is crucial because your child or dependant must have been conceived or born alive on or before this date to be eligible. If they were born after this date, they unfortunately do not qualify for the payment.
For more details, refer to the DVA Severe Impairment Payment Policy page.
How Does DVA Determine Eligibility?
The DVA may automatically assess your eligibility, but it’s always a good idea to double-check to ensure you receive everything you are entitled to.
Documents You Will Need to Apply:
📌 Proof that you have been assessed at 80 impairment points or more.
📌 Birth certificates or proof of guardianship for dependants.
📌 Proof of full-time study for dependants aged 16-25.
If you need help gathering documents or confirming your eligibility, VetComp can assist you in navigating the claims process.
Severe Impairment Payment (SIP) – Debunking Common Myths and Misconceptions
Many veterans assume they are ineligible for the Severe Impairment Payment (SIP) because of misunderstandings. Here are some of the most common myths—and the truth behind them.
Common Misconceptions About the SIP Benefit
❌ “I already receive Permanent Impairment (PI) compensation, so I won’t qualify for this payment.”
✅ Incorrect—this payment is in addition to your PI compensation.
❌ “If I apply, it might affect my other benefits.”
✅ False—the SIP is not means-tested, so it does not affect your other DVA payments.
❌ “I need to apply within a certain timeframe.”
✅ Not necessarily—if you’ve been assessed at 80 impairment points at any time, you should check whether you qualify.
❌ “Only biological children qualify.”
✅ No—stepchildren, grandchildren, and other dependants can qualify if they were financially dependent on you.
For full eligibility criteria, visit the DVA Severe Impairment Payment Policy page.
Severe Impairment Payment (SIP) – Debunking Common Myths and Misconceptions
If you have been assessed at 80 impairment points or more, you could be entitled to $108,000 per eligible dependent. This payment exists to provide financial security to your family, recognising the sacrifices made due to your service-related impairment.
Leaving this money unclaimed could mean missing out on hundreds of thousands of dollars in benefits that your family is legally entitled to.
📞 Contact VetComp on (07) 3132 7887 to check your entitlements and begin your claim today.
📩 Prefer email? Send us an inquiry at VetComp Contact Page.
