At Antea, we understand the critical importance of specialized financial guidance for those who have dedicated their lives to the service of our country. Navigating the intersection of military service, DVA entitlements, and long-term wealth can be a complex and overwhelming mission. We believe that those who serve should never have to compromise their financial security due to a lack of expert, tailored support.
Our mission is to bridge the gap between military life and financial clarity. Whether you are currently serving, navigating a medical discharge, or transitioning into civilian life, Antea provides a strategic partnership to all Australians, with a specialised focus on ADF members and veterans. We don’t just offer generic advice; we provide deep expertise in the specific frameworks that matter most to you, including DHOAS subsidies, MSBS/ADF Super, and DVA Permanent Impairment and SRDP assessments.
Services
We manage your DVA initial liability, permanent impairment, and superannuation claims to ensure you receive every entitlement.
How your MRCA PI Lump Sum impacts your Centrelink Family Tax Benefit?
If you receive an MRCA Permanent Impairment (PI) payment, it is important to understand how Centrelink views this money. Because PI payments are compensatory in nature, meaning they are paid for non-economic loss like pain, suffering, and functional loss, they generally have a favourable impact compared to other forms of income.
1. Is it considered income for FTB?
No. Under current social security rules, an MRCA Permanent Impairment lump sum is not included in the Adjusted Taxable Income (ATI) test used to determine your eligibility for Family Tax Benefit (Part A or B).
Because the payment is tax-free and recognized as compensation for a service-related injury rather than earned income, it does not reduce your fortnightly family assistance payments.
2. The "Deeming" Trap (The Indirect Impact)
While the lump sum itself isn't counted as income, what you do with the money might be. Once the lump sum is sitting in your bank account or invested:
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Deeming Rules: Centrelink may apply "deeming" rates to the balance of your bank account. This "deemed income" is counted toward your family income estimate.
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Investment Income: If you use the lump sum to buy shares or investment property, the dividends or rent received will count toward your Adjusted Taxable Income and could potentially reduce your FTB.
3. Why Financial Advice Matters
While the PI payment is protected, the way you structure that money can significantly affect your ongoing Centrelink entitlements. At Antea, we help you navigate these rules to ensure that your lump sum works for you without causing unexpected drops in your family support payments.