ADF Veterans with Children: What You Need to Know
Veterans living with severe service-related impairments may be missing out on significant financial support. If you’ve been assessed at 80 impairment points or more, you could be eligible for a tax-free lump sum of over $108,000 per dependent through the Severe Impairment Payment (SIP) — previously known as the Eligible Young Person (EYP) payment.
Designed to support veterans whose injuries impact their ability to care for dependents, this DVA payment remains underclaimed by many who qualify. If your family relies on your support, it’s important to understand how this payment works and how to claim your full entitlement.
Key takeaways
- Veterans assessed at 80 impairment points or more may be eligible for over $108,000 per dependant, through the DVA’s Severe Impairment Payment (SIP).
- Eligibility depends on the timing of your claim and your dependant’s circumstances, including their age, financial dependency, and education status.
- The SIP is separate from other DVA payments and is not means-tested — meaning it won’t affect other compensation you may already receive.
- Many eligible veterans miss out simply because they’re unaware of the payment or unsure how to apply. With the right guidance, the process can be straightforward.
DVA Severe Impairment Payment (SIP) Policy
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.
Who Qualifies for This Payment?
To qualify for the Severe Impairment Payment (SIP), a veteran must meet two critical conditions:
- They must have been assessed at 80 impairment points or more and be eligible for Permanent Impairment (PI) compensation under the MRCA.
- 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
- Siblings or half-siblings
- Children of a veteran’s partner
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.
The relevant date matters because your child or dependent must have been conceived or born alive on or before this date to qualify. Unfortunately, those born after this date are not eligible 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.
- Proof of full-time study for dependants aged 16-25.
- Birth certificates or proof of guardianship for dependants.
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.”
This is 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.
Access the Support You May Be Entitled To
The Severe Impairment Payment is here to acknowledge the real-life challenges veterans face when living with serious service-related injuries. If you’ve been assessed at 80 impairment points or more and have children or dependants who count on you, this payment could make a real difference to your family’s financial wellbeing.
But the reality is, many veterans who qualify don’t realise they’re eligible — or miss out because of confusion around the rules. Taking a moment to check your eligibility, gather the right paperwork and get the right advice could mean accessing support you didn’t know was available.
If you’re unsure where to start, VetComp is here to guide you through it. You don’t have to do it alone.
📞 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.
ℹ️ Learn more about the Maximum DVA Lump Sum Compensation Here
FAQs
We’ve gathered our most commonly asked questions here, so you can feel informed, at ease, and ready to take the next step toward the support and benefits you deserve.
Can I receive the SIP for dependants if I already claimed my own lump sum years ago?
Yes. Even if you received your Permanent Impairment (PI) lump sum in the past, you can still apply for the SIP for dependents as long as you meet the eligibility criteria — there is no strict “expiry” on when you can apply.
What happens if my child turns 25 after I’ve started receiving the payment?
The SIP is a one-off lump sum payment, not an ongoing benefit. As long as your dependent met the eligibility criteria at the relevant date (age, education, dependency), turning 25 afterwards will not affect your entitlement.
Can multiple dependants qualify at the same time?
Yes. Each eligible dependant may attract their own SIP amount. For example, if you have two children who both meet the criteria, you may be entitled to over $108,000 for each.
What if my dependent is a part-time worker?
If your dependents are between 16 and 25, they must be enrolled in full-time education and not employed full-time. Part-time work is usually acceptable, but the DVA will consider income and hours worked when assessing dependency.
Do I need to repay the SIP if my circumstances change?
No. The SIP is a tax-free lump sum, not a loan or conditional benefit. Once approved and paid, it is yours to keep regardless of future changes in your household or financial situation.
What if my dependent has a disability or special needs?
The DVA’s definition of a dependant can include situations where a child or young person has a disability and relies on you for financial and/or daily care. This can sometimes extend eligibility beyond standard age or education requirements, depending on individual assessment.
