Veterans' Affairs Legislation Amendment Act (No. 2) 1991

No. 208 of 1991

An Act to amend the law relating to veterans' affairs, and for related matters

[Assented to 24 December 1991]

The Parliament of Australia enacts:

PART 1—PRELIMINARY

Short title

1. This Act may be cited as the Veterans' Affairs Legislation Amendment Act (No. 2) 1991.

Commencement: Day of Royal Assent

Commencement

2. Each provision of this Act commences, or is taken to have commenced, as the case requires, on the day, or at the time, shown by the note in italics at the foot of the provision.

Commencement: Day of Royal Assent

PART 2—AMENDMENT OF THE NATIONAL HEALTH ACT 1953

Principal Act

3. In this Part, "Principal Act" means the National Health Act 19531.

Commencement: 1 January 1992

Interpretation

4. Section 84 of the Principal Act is amended by inserting in subsection (1) the following definition:

" 'repatriation pharmaceutical benefit' means a pharmaceutical benefit within the meaning of section 91 of the Veterans' Entitlements Act 1986;".

Commencement: 1 January 1992

Eligibility for safety net concession card and pharmaceutical benefits entitlement card

5. Section 84C of the Principal Act is amended:

(a) by inserting in subsection (1AA) "and repatriation pharmaceutical benefits" after "under this Part)" (twice occurring);

(b) by inserting in subsection (1) "and repatriation pharmaceutical benefits" after "pharmaceutical benefits" (twice occurring);

(c) by omitting from subsection (1) "under paragraph 87(2)(d) for the supply of a pharmaceutical benefit," and substituting: "under:

(d) the scheme established under section 91 of the Veterans' Entitlements Act 1986 for the supply of a repatriation pharmaceutical benefit;";

(d) by inserting in subsection (1C) "and repatriation pharmaceutical benefits" after "pharmaceutical benefits" (wherever occurring);

(e) by omitting from subsection (1C) "$130" (first and third occurring) and substituting "the amount of the concessional beneficiary safety net (within the meaning of section 99F)";

(f) by omitting from subsection (1C) "$130" (second and fourth occurring) and substituting "the amount of the concessional beneficiary safety net";

(g) by omitting from paragraphs (lC)(a) and (lC)(b) "under paragraph 87(2)(a) for the supply of a pharmaceutical benefit," and substituting:

"under:

(iii) paragraph 87(2)(a) for the supply of a pharmaceutical benefit; or

(iv) the scheme established under section 91 of the Veterans' Entitlements Act 1986 for the supply of a repatriation pharmaceutical benefit;";

(h) by inserting in paragraph (3)(a) "or a repatriation pharmaceutical benefit" after "pharmaceutical benefit";

(i) by omitting from subsection (4) "A pharmaceutical benefit supply" and substituting "The supply or repeated supply of a pharmaceutical benefit";

(j) by inserting after subsection (4) the following subsection:

"(4A) The supply or repeated supply of a repatriation pharmaceutical benefit to a person is not to be taken into account for the purposes of this section unless:

(a) the repatriation pharmaceutical benefit is supplied under the scheme established under section 91 of the Veterans' Entitlements Act 1986; and

(b) at the time of supply the person was not a holder of an entitlement card.";

(k) by adding at the end of the definition of "pharmaceutical benefit supply" in subsection (11) "or repatriation pharmaceutical benefit".

Commencement: 1 January 1992

Pharmaceutical benefits prescription record forms

6. Section 84D of the Principal Act is amended:

(a) by inserting in subsection (6) "or repatriation pharmaceutical benefit" after "pharmaceutical benefit" (first occurring);

(b) by omitting paragraph (6)(c) and substituting the following paragraph:

"(c) the supply is:

(i) a supply of a pharmaceutical benefit to be taken into account under subsection 84C(4) for the purposes of section 84C; or

(ii) a supply of a repatriation pharmaceutical benefit to be taken into account, under subsection 84C(4A), for the purposes of section 84C;";

(c) by inserting in subsection (7) "or repatriation pharmaceutical benefit" after "pharmaceutical benefit" (wherever occurring);

(d) by inserting in subsections (8) and (9) "and repatriation pharmaceutical benefits" after "pharmaceutical benefits".

Commencement: 1 January 1992

Limited charges for pharmaceutical benefits

7. Section 87 of the Principal Act is amended:

(a) by inserting in paragraph (2)(b) "and repatriation pharmaceutical benefits" after "under this Part)";

(b) by inserting in paragraph (2)(c) "and repatriation pharmaceutical benefits" after "under this Part)".

Commencement: 1 January 1992

Interpretation

8. Section 99F of the Principal Act is amended by omitting the definition of "concessional beneficiary safety net" and substituting the following definition:

" 'concessional beneficiary safety net' means the amount worked out by multiplying the concessional beneficiary charge by 52;".

Commencement: 1 January 1992

Indexation

9. Section 99G of the Principal Act is amended:

(a) by omitting from the Table items 2 and 3 and substituting the following items:

"2.	General patient reduced charge	1 January	September
3.	Concessional beneficiary charge	1 January	September";

Commencement: 2 January 1992

(b) by omitting from the Table item 6.

Commencement: 1 January 1992

PART 3—AMENDMENT OF THE VETERANS' ENTITLEMENTS ACT 1986

Principal Act

10. In this Part, "Principal Act" means the Veterans' Entitlements Act 19862.

Commencement: Day of Royal Assent

Earnings credit account balance

11. Section 49B of the Principal Act is amended:

(a) by adding at the end of point 49B-A2 the following Note:

"Note: the balance of an account is indexed annually in line with CPI increases (see sections 59B to 59E).";

(b) by omitting from the heading to point 49B-A4 "$2,000" and substituting "twice the point 49B-A2 amount";

Commencement: Day of Royal Assent

Indexed and adjusted amounts

12. Section 59A of the Principal Act is amended by inserting after item 8 the following item:

"	Earnings credit
8A.	Upper limit for earnings credit account balance	earnings credit limit	[Section 49B—point 49B-A2]".

Commencement: Day of Royal Assent

CPI Indexation Table

13. Section 59B of the Principal Act is amended by inserting after item 5 the following item:

"	Earnings credit
5A.	Earnings credit limit	1 July	March	most recent March quarter before reference quarter	$50.00".

Commencement: Day of Royal Assent

14. Section 118JA of the Principal Act is repealed and the following section is substituted:

Eligibility for pharmaceutical allowance

"118JA. A person is eligible to receive a pharmaceutical allowance

if:

(a) the person is receiving:

(i) a service pension; or

(ii) a pension whose rate is specified under subsection 30(1) or (2); or

(b) but for subsection 13(7), a pension would have been payable to the person at a rate specified under subsection 30(2); or

(c) the person is eligible to receive pharmaceutical benefits under the scheme known as the Repatriation Pharmaceutical Benefits Scheme (whether the person's eligibility arises under this Act or under the Seamen's War Pensions and Allowances Act 1940).".

Commencement: 26 December 1991

15. Section 118JC of the Principal Act is repealed and the following section is substituted:

Payability of pharmaceutical allowance

"118JC.(1) Subject to subsections (2) and (3), a person's pharmaceutical allowance is payable on each pension payday on which the person is eligible for the allowance.

"(2) Even though a person is eligible for a pharmaceutical allowance, the allowance is not payable to the person if the person is receiving pharmaceutical allowance under Part 2.22 of the Social Security Act.

"(3) If:

(a) a person becomes eligible for pharmaceutical allowance under paragraph 118JA(c) on 26 December 1991; and

(b) the person is not eligible for pharmaceutical allowance on that day under paragraph 118JA(a) or (b) or under Part 2.22 of the Social Security Act; and

(c) the Department does not, immediately before 1 July 1992, have the information needed to enable the Commission to make a payment of pharmaceutical allowance to the person;

pharmaceutical allowance is not payable to the person before the first payday on which the Department has that information.".

Commencement: 26 December 1991

16. Part VIIA of the Principal Act is repealed and the following Part is substituted:

"PART VIIA—PHARMACEUTICAL ALLOWANCE AND ADVANCE PHARMACEUTICAL ALLOWANCE

"Division 1—Pharmaceutical allowance

"Subdivision A—Eligibility for and payability of pharmaceutical allowance

Eligibility for pharmaceutical allowance

" 118A. A person is eligible for a pharmaceutical allowance if:

(a) the person is receiving:

(i) a service pension; or

(ii) a pension whose rate is specified under subsection 30(1) or (2); or

(b) but for subsection 13(7), a pension would have been payable to the person at a rate specified under subsection 30(2); or

(c) the person is eligible for pharmaceutical benefits under the scheme known as the Repatriation Pharmaceutical Benefits Scheme (whether the person's eligibility arises under this Act or under the Seamen's War Pensions and Allowances Act 1940).

Pharmaceutical allowance not payable in some circumstances

"118B.(1) Even though a person is eligible for a pharmaceutical allowance, the allowance is not payable to the person on a pension payday if:

(a) the person has received an advance pharmaceutical allowance:

(i) under Division 2 of this Part; or

(ii) under Part 2.23 of the Social Security Act; and

(b) the person's advance payment period has not ended.

"(2) Even though a person is eligible for a pharmaceutical allowance, the allowance is not payable to the person if the person is receiving pharmaceutical allowance under the Social Security Act.

"(3) For the purposes of subsection (1), a person's advance payment period:

(a) starts on the day on which the advance pharmaceutical allowance is paid to the person; and

(b) ends after the number of paydays worked out using the following formula have elapsed:

Amount of advance

Allowance rate

where:

'Amount of advance' is the amount of the advance pharmaceutical allowance paid to the person;

'Allowance rate' is the rate at which pharmaceutical allowance would be payable to the person on the day on which the advance pharmaceutical allowance is paid if the person were paid pharmaceutical allowance on that day.

"(4) In subsection (3):

'advance pharmaceutical allowance' includes an advance pharmaceutical allowance under Part 2.23 of the Social Security Act;

'pharmaceutical allowance' includes pharmaceutical allowance under Part 2.22 of the Social Security Act.

"Subdivision B—Rate of pharmaceutical allowance

Rate of pharmaceutical allowance

"118C.(1) Subject to subsection (2), the rate of a pharmaceutical allowance is twice the amount of the rate specified in subsection (2).

"(2) The rate of pharmaceutical allowance for a person is $2.60 per fortnight if:

(a) the person is a service pensioner; and

(b) the person is a member of a couple; and

(c) the person's partner is eligible for pharmaceutical allowance under this Division or under Part 2.22 of the Social Security Act; and

(d) the person is not a member of an illness separated couple or a respite care couple.

Note 1: for 'service pensioner', 'service pension', 'social security pension' and 'social security benefit' see subsection 5Q(1); for 'member of a couple' and 'partner' see section 5E; for 'illness separated couple' see subsection 5R(5) and for 'respite care couple' see subsection 5R(6).

Note 2: the amount specified in subsection (2) is indexed annually in line with CPI increases under section 198E.

Limitation on amount of pharmaceutical allowance

"118D.(1) If a person receives an advance pharmaceutical allowance during a calendar year, the total amount paid to the person for that year by way of:

(a) pharmaceutical allowance; and

(b) advance pharmaceutical allowance;

is not to exceed the person's pharmaceutical payments limit for that year.

"(2) A person's pharmaceutical payments limit for the year is the total amount of pharmaceutical allowance that the person would have received during the year if the person had not received any advance pharmaceutical allowance.

"(3) In this section:

'advance pharmaceutical allowance' includes advance pharmaceutical allowance under Part 2.23 of the Social Security Act;

'pharmaceutical allowance' includes pharmaceutical allowance under Part 2.22 of the Social Security Act.

"Subdivision C—Payment of pharmaceutical allowance

Payment of pharmaceutical allowance

"118E.(1) Subject to subsection (2), a person's pharmaceutical allowance is payable on each pension payday on which the person is eligible for the allowance.

"(2) If:

(a) a person became eligible for pharmaceutical allowance under paragraph 118JA(c) on 26 December 1991; and

(b) the person was not eligible for pharmaceutical allowance on that day under paragraph 118JA(a) or (b) or under Part 2.22 of the Social Security Act; and

(c) the Department does not, immediately before 1 July 1992, have the information needed to enable the Commission to make a payment of pharmaceutical allowance to the person;

pharmaceutical allowance is not payable to the person before the first payday on which the Department has that information.

"Division 2—Advance pharmaceutical allowance

"Subdivision A—Eligibility for and payability of advance pharmaceutical allowance

Eligibility for advance pharmaceutical allowance

"118F.(1) Subject to subsection (2), a person to whom section 118A applies is eligible for an advance pharmaceutical allowance.

"(2) A person is not eligible for an advance pharmaceutical allowance if:

(a) the person is receiving a service pension; and

(b) the only reason why section 118A applies to the person is that the person is receiving that pension; and

Note: for 'ordinary income' see subsection 5H(1).

"(3) If the person is a member of a couple, the amount of the person's ordinary income for the purposes of this section is worked out by adding the couple's ordinary incomes (on a fortnightly basis) and dividing by 2.

Note: for 'member of a couple' see subsections 5E(1), (2), (3) and (4).

Advance pharmaceutical allowance not payable in some circumstances

"118G. If, in a calendar year:

(a) a person is eligible for an advance pharmaceutical allowance; and

(b) the amount of the allowance is reduced under section 118P;

no further advance pharmaceutical allowance is payable to the person in that calendar year.

"Subdivision B—Claim for advance pharmaceutical allowance

Need for a claim

"118H.(1) A person who wants to be granted an advance pharmaceutical allowance must make a proper claim for that allowance.

"(2) Subject to subsections 118M(4) and (5), if:

(a) a claim for an advance pharmaceutical allowance is made by or on behalf of a person; and

(b) at the time when the claim is made, the claim cannot be granted because the person is not eligible for the payment;

the claim is taken not to have been made.

Who can claim?

"118J.(1) Subject to subsection (2), the claim must be made by:

(a) the person who wants to be granted the advance pharmaceutical allowance; or

(b) with the approval of that person—another person on that person's behalf.

"(2) If the person is unable, because of physical or mental incapacity, to approve another person to make the claim on his or her behalf, the Commission may approve another person to make the claim.

Form of claim

"118K. To be a proper claim, a claim must be in writing and in accordance with a form approved by the Commission.

Lodgment of claim

"118L. To be a proper claim, a claim must be lodged:

(a) at an office of the Department in Australia; or

(b) at a place approved for this purpose by the Commission; or

Proper claim

"118M.(1) A claim must be a proper claim under subsection (2), (3), (4), (5) or (6) to be a proper claim for the purposes of this Division.

"(2) A claim by a person for an advance pharmaceutical allowance to be paid in a calendar year (in this subsection called the 'current year') is a proper claim if:

(a) a pension of the kind referred to in paragraph 118A(a) or (b) was payable to the person on the last pension payday in the previous calendar year; and

(b) the claim is lodged before the first pension payday in the current year.

"(3) A claim by a person for an advance pharmaceutical allowance to be paid in a calendar year (in this subsection called the 'current year') is a proper claim if:

(a) the person was eligible for pharmaceutical benefits of the kind referred to in paragraph 118A(c) on the last pension payday in the previous calendar year; and

(b) the claim is lodged before the first pension payday in the current year.

"(4) A claim by a person for an advance pharmaceutical allowance to be paid in a calendar year is a proper claim if:

(a) the person claims a pension of the kind referred to in paragraph 118A(a) or (b); and

(b) the person's claim for the pension is determined in that year; and

(i) at the time when the claim for the pension is lodged; or

(ii) before the claim for the pension is determined.

"(5) A claim by a person for an advance pharmaceutical allowance to be paid in a calendar year is a proper claim if:

(a) the claim is based on the person's eligibility for pharmaceutical benefits of the kind referred to in paragraph 118A(c); and

(b) the claim is lodged before the person's eligibility for those benefits is determined; and

"(6) A claim by a person for an advance pharmaceutical allowance to be paid in a calendar year is a proper claim if:

(a) the person has been eligible for pharmaceutical allowance for a period (in this subsection called the 'eligibility period') during the calendar year; and

(b) the amount spent by the person during the eligibility period on the purchase of pharmaceutical benefits is equal to or greater than the total amount that has been paid to the person in the calendar year by way of:

(i) pharmaceutical allowance; and

(ii) advance pharmaceutical allowance.

"(7) In subsection (6):

'pharmaceutical benefit' means:

(a) a pharmaceutical benefit within the meaning of section 91; or

(b) a drug or medicinal preparation in relation to which Part VII of the National Health Act 1953 applies because of section 85 of that Act.

"Subdivision C—Amount of advance pharmaceutical allowance

Amount of advance pharmaceutical allowance

"118N. Subject to section 118P, the amount of a person's advance pharmaceutical allowance is the amount worked out by multiplying the person's rate of pharmaceutical allowance under section 118C by 7.

Reduction in amount of advance pharmaceutical allowance

"118P. If:

(a) a person is eligible for an advance pharmaceutical allowance for a calendar year; and

(b) the amount worked out under section 118N (when added to the amounts of pharmaceutical allowance and advance

pharmaceutical allowance that the person has already received for the calendar year under this Act and the Social Security Act) exceeds the person's pharmaceutical payments limit under section 118D;

the amount of the advance pharmaceutical allowance is to be reduced by the excess.".

Commencement: 1 January 1992

Repeal of Division 2 of Part VIIA

17. Division 2 of Part VIIA of the Principal Act is repealed.

Commencement: 1 January 1994

Indexation of pharmaceutical allowance

18. Section 198E of the Principal Act is amended:

(a) by omitting "118JB" from the definition of "relevant rate" in subsection (1) and substituting "118C";

(b) by omitting from paragraph (a) of the definition of "year to which this section applies" in subsection (1) "20 September 1991" and substituting "1 January 1993";

(c) by omitting from paragraph (b) of the definition of "year to which this section applies" in subsection (1) "20 September" and substituting "1 January";

(d) by omitting paragraphs (5)(a) and (b) and substituting:

"(a) in relation to the year commencing on 1 January 1993— the number, calculated to 3 decimal places, worked out by dividing the index number for the September quarter 1992 by the index number for the September quarter 1991; or

(b) in relation to each subsequent year—the number calculated to 3 decimal places, worked out by dividing the index number for the last preceding September quarter by the highest index number in respect of an earlier September quarter, not being a September quarter that occurred before 1992; or".

Commencement: 2 January 1992

Schedule 2

19. Schedule 2 to the Principal Act is amended:

(a) by omitting from Column 2 of item 5 "31 July 1962 to and including 11 January 1973" and substituting "28 May 1963 to and including 19 April 1967";

Commencement: Immediately after the commencement of the Veterans' Entitlements Act 1986

(b) by omitting from Column 2 of item 7 "7 July 1965" and substituting "17 August 1964";

Commencement: Immediately after the commencement of the Veterans' Entitlements Act 1986

Commencement: Day of Royal Assent

(d) by adding at the end the following:

"11. The area comprising Iraq and Kuwait

The period from and including 23 February 1991 to and including 9 June 1991".

Commencement: 23 February 1991

Savings and transitional provisions

20.(1) If:

(a) a person has:

(i) made a claim under the Principal Act; or

(ii) made an application under the Defence Service Homes Act 1918; or

(iii) received a benefit under the Income Tax Assessment Act 1936 or the Public Service Act 1922; and

(b) the claim, application or benefit was granted on or before 7 November 1991 on the basis that the person was (as a member of the Defence Force or as a member of a unit of the Defence Force) allotted for duty in the operational area described in item 5 in Schedule 2 to the Principal Act;

Schedule 2 to the Principal Act applies to that person as if the amendment made by paragraph 19(a) of this Act had not been made.

(2) If:

(a) a person had:

(i) made a claim under the Principal Act; or

(ii) made an application under the Defence Service Homes Act 1918; or

(iii) claimed a benefit under the Income Tax Assessment Act 1936 or the Public Service Act 1922;

on or before 7 November 1991; and

(b) the claim or application was made on the basis that the person was (as a member of the Defence Force or as a member of a unit of the Defence Force) allotted for duty in the operational area described in item 5 in Schedule 2 to the Principal Act; and

then:

(d) the claim or application is to be determined as if the amendment made by paragraph 19(a) of this Act had not been made; and

(e) Schedule 2 to the Principal Act applies to that person as if the amendment made by paragraph 19(a) of this Act had not been made.

Commencement: Day of Royal Assent

Schedule

21. The Acts specified in the Schedule are amended as set out in the Schedule.

Commencement: Day of Royal Assent

___________

SCHEDULE Section 21

MINOR AND CONSEQUENTIAL AMENDMENTS

Defence Service Homes Act 1918

Subsection 4(1) (after paragraph (gb) of the definition of "Australian Soldier"):

Insert:

"(gc) a person who, as a member of the Defence Force or as a member of a unit of the Defence Force, was allotted for duty within the meaning of subsection 5B(2) of the Veterans' Entitlements Act 1986 in the operational area described in item 11 of Schedule 2 to that Act during the period specified in that item and whose first service in the Defence Force began on or before 14 May 1985;".

Commencement: Day of Royal Assent

Income Tax Assessment Act 1936

Paragraph 23AB(5)(c):

Omit "or 8", substitute "8, 9, 10 or 11".

Commencement: Day of Royal Assent

Public Service Act 1922

Subsection 7(1) (definition of "Returned Soldier"):

Omit "or 10", substitute "10 or 11".

Commencement: Day of Royal Assent

Social Security Act 1991

Section 1191 (CPI Indexation Table—item 31—columns 3, 4 and 5):

Omit the columns, substitute:

" 1 January

September

highest September quarter before reference quarter (but not earlier than September quarter 1991)".

Commencement: 2 January 1992

Section 1191 (CPI Indexation Table—item 32—columns 3, 4 and 5):

Omit the columns, substitute:

SCHEDULE—continued

" 1 January

September

highest September quarter before reference quarter (but not earlier than September quarter 1991)".

Commencement: 2 January 1992

Veterans' Entitlements Act 1986

Paragraph 5B(2)(b):

Omit "or 10", substitute "10 or 11".

Commencement: 23 February 1991

_____________________________________________________________________________________

NOTES

1. No. 95, 1953, as amended. For previous amendments, see No. 68, 1955; Nos. 55 and 95, 1956; No. 92, 1957; No. 68, 1958; No. 72, 1959, No. 16, 1961; No. 82, 1962; No. 77, 1963; No. 37, 1964; Nos. 100 and 146, 1965; No. 44, 1966; Nos. 14 and 100, 1967; No. 100, 1968; No. 102, 1969; No. 41, 1970; No. 85, 1971; No. 114, 1972; Nos. 49 and 202, 1973; No. 37, 1974; Nos. 1, 13 and 93, 1975; Nos. 1, 60, 91, 99, 108, 157 and 177, 1976; Nos. 98 and 100, 1977; Nos. 36, 88, 132 and 189, 1978; Nos. 54, 91 and 122, 1979; Nos. 117 and 131, 1980; Nos. 40, 74, 92, 118, 163 and 176, 1981; Nos. 49, 80 and 112, 1982; Nos. 35, 54 and 139, 1983; Nos. 46, 63, 72, 120, 135 and 165, 1984; Nos. 24, 53, 65, 70, 95, 127 and 167, 1985; Nos. 28, 75, 94 and 115, 1986; Nos. 22, 44, 72, 118, 131 and 132, 1987; Nos. 79, 87, 99 and 155, 1988; No. 95, 1989; Nos. 3, 84, 106 and 141, 1990; and Nos. 6, 68, 70, 73, 83, 84, 115, 116, 119, 122 and 141, 1991.

2. No. 27, 1986, as amended. For previous amendments, see Nos. 106 and 130, 1986; Nos. 78, 88 and 130, 1987; Nos. 13, 35, 75, 99, 134 and 135, 1988; Nos. 59, 83, 84, 93, 163 and 164, 1989; Nos. 56, 84 and 119, 1990; and Nos. 2, 72, 73 and 74, 1991.

[Minister's second reading speech made in—

House of Representatives on 6 November 1991

Senate on 14 November 1991]