» Separation from the ADF
» Medical/Death Benefit
Separation from the ADF
You will be able to receive only a single Subsidy Certificate after you have discharged, and you must apply for it within two years of discharging. Subsidy Certificates are valid for 12 months so you need to ensure that you use the Certificate before it expires. There are no options to extend it.
We would suggest that you apply for a Subsidy Certificate before discharging (if you can use it within the following 12 months), so that your post-discharge Certificate can be accessed at a later date if necessary.
If you are making instalments on a construction loan and you have discharged, you may wish to defer applying for your one post-discharge Subsidy Certificate until construction is complete.
If you are already in receipt of a DHOAS subsidy and you discharge from the ADF, you must advise DVA using the Change of Circumstances form.
Discharging from the ADF may have a significant impact on your subsidy, including:
- Your subsidy may reduce (see below for details about "Accessing DHOAS after separation")
- You will no longer accrue further entitlement (months of subsidy)
- If you received a lump sum within the last 12 months, you may have to repay this amount
You may elect to rejoin the ADF at a later date. In this case, your DHOAS eligibility and entitlement will be assessed according to "rejoining member" provisions, depending on the length of your break (see Rejoining the ADF After a Break).
Accessing DHOAS after separation
You have two years to apply for a Subsidy Certificate to access your accrued DHOAS entitlement, from the time you cease to be a member of the Permanent Forces or an active member of the Reserves, whichever is the later.
You need to be eligible for DHOAS at the time of separation and have an accrued subsidy period.
To be eligible, you need to have:
- served in the ADF on or after 1 July 2008;
- completed the minimum DHOAS qualifying period (four consecutive years of Permanent service or eight consecutive years of effective Reserve service); and...
- gained a Service Credit which entitles you to DHOAS assistance (at least one month for Permanent members and at least 20 days of effective Reserve service within a financial year for Reservists).
If you're in receipt of DHOAS at the time of separating from the ADF you may continue to receive assistance for as long as you have accrued entitlement and an eligible DHOAS home loan.
You will have one opportunity only, within two years of separation, to apply for a Subsidy Certificate to access subsidy on a property.
You and/or your family must occupy the home for 12 months from the time you first receive the DHOAS subsidy based on that Subsidy Certificate, and meet any other conditions of the Scheme.
Subsidy entitlement on separation
The amount of DHOAS subsidy you receive after you separate from the ADF will depend on the length of service you have provided prior to separating.
If you have served less than 20 years at separation, your subsidy will be payable at the Tier 1 subsidy level for the period of your remaining Service Credit. This applies even if you were eligible for higher tier benefits while you were in the ADF.
If you have served 20 or more years, your subsidy will be payable at the Tier 3 subsidy level for the period of your remaining Service Credit.
Example
You separate from the permanent ADF having completed 10 years of service, and you have not previously accessed DHOAS.
You will have six years of accrued entitlement (that is, your total years of service minus your qualifying period of four years. This does not include any additional entitlement from war-like service).
This means that after separating, you will be entitled to receive DHOAS for six years, at the Tier 1 level.
If you had accessed DHOAS whilst you were in the ADF, the period of time you received the DHOAS subsidy would come off your accrued entitlement. In the above example, if you had received a DHOAS subsidy for two years, you would not have six years of accrued entitlement after separating, you would have four years.
| Service period | Qualifying period | Service credit | Subsidy tier benefits | ||
| 10 years | less | 4 years | equals | 6 years | Tier 1 |
Example
You separate from the Reserves having completed 21 years of service, and you have not previously accessed DHOAS.
You will have 13 years of accrued entitlement (that is, your total years of service minus your Reserve qualifying period of eight years. This does not include any additional entitlement from warlike service).
This means after separating, you will be entitled to receive DHOAS assistance for 13 years, at the Tier 3 level.
If you had accessed DHOAS whilst you were in the ADF, the period of time you received the DHOAS subsidy would come off your accrued entitlement. In the above example, if you had received a DHOAS subsidy for four years, you would not have 13 years of accrued entitlement, you would have nine years.
Effective Reserve Service and Separation
Please note: If you are a Reservist and you do not complete effective Reserve service within a financial year you will be deemed to be discharged for the purpose of DHOAS. "Effective" Reserve service is defined as at least 20 days of active Reserve service within a financial year.
For the purpose of DHOAS, this requirement to complete at least 20 days of active service to not be deemed to be discharged applies to all Reservists, whether you are in the Standby, High Readiness or any other Reserve-type service.
If you do not complete a year of effective service, this could impact on your DHOAS eligibility and entitlement. Please refer to Rejoining the ADF after a Break for further details.
If you are in receipt of a DHOAS subsidy and then you make changes to your loan and need to reapply for a new DHOAS Subsidy Certificate after an extended break in effective Reserve service, you need to be aware that the rejoining provisions may impact on your entitlement. This could result in you dropping to a lower Subsidy Tier level, or shorten the length of your entitlement.
You may need to determine if it is better in your circumstance to continue receiving your current DHOAS subsidy (on your existing eligible DHOAS home loan) than it is to reapply, and possibly impact on your future entitlement.
You are advised to contact DHOAS before making any significant changes to your DHOAS subsidy arrangements.
Medical - incapacity/invalidity
Members of the ADF may, as a result of their service, sustain injuries that result in their service being terminated.
Where a member is medically discharged on a compensable condition, on or after 1 July 2008, special provisions will apply to the member's entitlement to subsidy assistance under DHOAS.
A compensable condition is defined as a condition, disease, illness or injury suffered by a person in respect of which compensation is or has been payable under any of the following:
- the Safety, Rehabilitation and Compensation Act 1988;
- the Veterans' Entitlements Act 1986
- the Military Rehabilitation and Compensation Act 2004
- a law of the Commonwealth prescribed by regulation
Under the DHOAS, an incapacitated member who has eight years or less service will have access to a minimum of eight years subsidy assistance (at Tier 1 benefits).
Incapacitated members who have served for longer than eight years will have access to subsidy assistance based on the total number of years they have served in the ADF. Their qualifying period is waived when working out their accrued entitlement.
For example, if you are a Permanent member who has served for 10 years at the time you separate (on or after 1 July 2008), you will be entitled to 10 years of DHOAS benefits.
You will also receive this subsidy assistance at your eligible tier level. With 10 years service, you are entitled to Tier 2 benefits.
Death benefit
If a member dies in service or subsequent to his or her separation from the ADF, entitlement to the DHOAS subsidy will transfer to the member's surviving partner.
Where a member was in receipt of subsidy assistance at the time of death, the entitlement will transfer to the member's surviving partner and the subsidy assistance will continue to be payable at the rate applicable at the time of the member's death and continue until the subsidy period that the member had accrued has expired.