Veterans’ Affairs Legislation
Amendment Act 1994
No. 78 of 1994
An Act to amend the law relating to veterans’ affairs,
and for related purposes
[Assented to 21 June 1994]
The Parliament of Australia enacts:
PART 1—PRELIMINARY
Short title etc.
1.(1) This Act may be cited as the Veterans’ Affairs Legislation Amendment Act 1994.
(2) In this Act, “Principal Act” means the Veterans’ Entitlements Act 19861.
Commencement
2.(1) Subject to subsections (2) and (3), this Act commences on the day on which it receives the Royal Assent.
(2) Part 3 is taken to have commenced on 1 January 1994.
(3) Part 2 commences, or is taken to have commenced, on 1 July 1994, immediately after the commencement of Part 3 of the Social Security Legislation Amendment Act (No. 2) 1993.
Application
3.(1) The amendments made by Part 4 apply to lump sum compensation payments that are made on or after the commencement of that Part.
(2) Subject to subsection (3), the amendments made by Part 4 apply to periodic payments of compensation that are made on or after the commencement of that Part.
(3) If periodic payments of compensation are made in respect of a period that starts before the commencement of Part 4 and ends after that commencement, that Part applies to:
(a) the periodic payments that are made in respect of the part of the period that occurs after commencement; and
(b) instalments of pension that are paid during that part of the period.
(4) Sections 30G, 30H, 30K and 30L apply only to instalments of pension that are paid on or after the commencement of Part 4.
PART 2—SENIORS HEALTH CARD
Eligibility related definitions
4. Section 5C of the Principal Act is amended by omitting “Part III” from paragraph (b) of the definition of “veteran” in subsection (1) and substituting “Parts III and VIIC”.
Australian residence definitions
5. Section 5G of the Principal Act is amended by inserting in subsection (2) “(other than Part VIIC)” after “Act”.
Insertion of new section
6. After section 5PA of the Principal Act the following section is inserted:
Seniors health card definitions
“5PB.(1) In this Act, unless the contrary intention appears:
‘holder of a seniors health card’ has the meaning given by subsection (2).
“(2) A person is the ‘holder of a seniors health card’ while there is in force a determination under section 118ZG or 118ZP that the person is entitled to a seniors health card.”.
Insertion of new Part
7. After Part VIIB of the Principal Act the following Part is inserted:
“PART VHC—SENIORS HEALTH CARD
“Division 1—Eligibility for and entitlement to a seniors health card
“Subdivision A—Eligibility
Eligibility for seniors health card
“118V.(1) A person is eligible for a seniors health card if the person:
(a) is a veteran; and
(b) has rendered qualifying service; and
(c) has reached:
(i) if the person is a woman—55; or
(ii) if the person is a man—60; and
(d) is an Australian resident; and
(e) is in Australia; and
(f) is not receiving a service pension; and
(g) is not receiving a social security pension or benefit; and
(h) satisfies the seniors health card ordinary income test.
Note 1: For ‘qualifying service’ see section 7A.
Note 2: For ‘Australian resident’ see section 5G.
Note 3: For ‘seniors health card ordinary income test’ see section 118ZAA.
Partner of person eligible for card under subsection (1)
“(2) A person is eligible for a seniors health card if:
(a) the person is a member of a couple; and
(b) the person’s partner is eligible for a seniors health card under subsection (1); and
(c) the person has reached:
(i) if the person is a woman—60; or
(ii) if the person is a man—65; and
(d) the person is an Australian resident; and
(e) the person is in Australia; and
(f) the person is not receiving a service pension; and
(g) the person is not receiving a social security pension or benefit; and
(h) the person satisfies the seniors health card ordinary income test; and
(i) the person is not eligible for a seniors health card under subsection (1).
Note 1: For ‘member of couple’ and ‘partner’ see section 5E.
Note 2: For ‘qualifying service’ see section 7A.
Note 3: For ‘Australian resident’ see section 5G.
Note 4: For ‘seniors health card ordinary income test’ see section 118ZAA.
“Subdivision B—Entitlement
Entitlement to a seniors health card
“118W. Even though a person is eligible for a seniors health card, it is only if the person is the holder of a seniors health card that benefits and concessions of various kinds relating to the person’s health may be made available to the person by the Commonwealth.
Note 1: If there is a determination in force that a person is entitled to a seniors health card, the person is the holder of a seniors health card. For ‘holder of a seniors health card’ see section 5PB.
Note 2: A person who is the holder of a seniors health card generally has access to concessional pharmaceutical benefits under the National Health Act 1953 and hearing aid concessions under the Hearing Services Act 1991.
Social Security cardholder not entitled
“118X. If a person is the holder of a seniors health card within the meaning of the Social Security Act, the person is not entitled to a seniors health card under this Act.
“Division 2—Claim for seniors health card
Need for a claim
“118Y. A person who wants to be granted a seniors health card must make a proper claim.
Note: For ‘proper claim’ see section 118ZA (form), section 118ZB (manner of lodgment) and section 118ZC (residence/presence in Australia).
Who can claim?
“118Z.(1) Subject to subsection (2), a claim must be made by:
(a) the person who wants to be granted a seniors health card; or
(b) with the approval of the person—another person on the 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
“118ZA. To be a proper claim, the claim must be:
(a) made in writing; and
(b) in accordance with a form approved by the Commission; and
(c) accompanied by any evidence available to the claimant that the claimant considers may be relevant to the claim.
Lodgment of claim
“118ZB.(1) 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
(c) with a person approved for this purpose by the Commission.
“(2) A place or person approved under subsection (1) must be a place or person in Australia.
“(3) A claim for a seniors health card is taken to have been lodged on the day it is received:
(a) at an office of the Department in Australia; or
(b) at a place approved under subsection (1); or
(c) by a person approved under subsection (1).
Claimant must be an Australian resident and in Australia
“118ZC. A claim is not a proper claim unless the person making the claim, or on whose behalf the claim is being made, is:
(a) an Australian resident; and
(b) in Australia;
on the day on which the claim is lodged.
Note: For ‘Australian resident’ see section 5G.
Claim may be withdrawn
“118ZD.(1) A claimant for a seniors health card or a person on behalf of a claimant may withdraw a claim that has not been determined.
“(2) A claim that is withdrawn is taken to have not been made.
“(3) A withdrawal may be made orally or in writing.
Written withdrawal of a claim
“(4) A written withdrawal of a claim must be lodged at an office of the Department in Australia.
Oral withdrawal of a claim
“(5) An oral withdrawal of a claim must be made to a person in an office of the Department in Australia.
Acknowledgment of oral withdrawal of a claim
“ (6) As soon as practicable after receiving an oral withdrawal of a claim, the Secretary must give the claimant an acknowledgment notice in writing stating that:
(a) an oral withdrawal of the claim was made; and
(b) the claimant, or a person on behalf of the claimant, may, within 28 days from the day the acknowledgment notice is given, request the Secretary to treat the withdrawal as if it had not been made.
Reactivating the withdrawn claim
“(7) If, within 28 days from the day on which the Secretary gave the acknowledgment notice, a claimant, or a person on behalf of a claimant, requests the Secretary to treat the oral withdrawal of the claim as if it had not been made, the oral withdrawal is taken not to have been made.
Note: A request made under paragraph (6)(b) has the effect of reactivating the claim. In particular, the commencement day of the claim stays the same.
“Division 3—Investigation of claim
Secretary to investigate claim and submit it to Commission
“118ZE.(1) If a person makes a proper claim for a seniors health card, the Secretary must investigate the matters to which the claim relates.
“(2) When the investigation is completed, the Secretary must submit the claim to the Commission for consideration and determination.
“(3) When the claim is submitted to the Commission it must be accompanied by:
(a) any evidence supplied by the claimant in support of the claim; and
(b) any documents or other evidence obtained by the Department in the course of the investigation that are relevant to the claim; and
(c) any other documents or other evidence under the control of the Department that are relevant to the claim.
“Division 4—Consideration and determination of claim
Duties of Commission in relation to claim
“118ZF.(1) When the claim is submitted to the Commission, the Commission must consider all matters that are, in the Commission’s opinion, relevant to the claim and must then determine the claim.
“(2) In considering the claim, the Commission must:
(a) satisfy itself with respect to; or
(b) determine;
(as the case requires) all matters relevant to the determination of the claim.
“(3) Without limiting subsection (1), the Commission, in considering the claim, must consider:
(a) the evidence submitted with the claim under section 118ZE; and
(b) any further evidence subsequently submitted to the Commission in relation to the claim.
Note: A claimant may apply to the Commission for review of a determination made under this section (see section 118ZS).
Entitlement determination
“118ZG. Subject to section 118X, the Commission is to determine that a person is entitled to a seniors health card if the Commission is satisfied that the person is eligible for the card.
Date of effect of determination
“118ZH. A determination under section 118ZG takes effect on the day on which the determination is made or on such later day or earlier day as is specified in the determination.
“Division 5—Cardholder’s obligations
Secretary may require notice of the happening of event or a change in circumstances
“118ZI.(1) The Secretary may give a person who is the holder of a seniors health card a notice that requires the person to inform the Department, or an officer specified in the notice, if:
(a) a specified event or change of circumstances occurs; or
(b) the person becomes aware that a specified event or change of circumstances is likely to occur.
Note: For ‘holder of a seniors health card’ see section 5PB.
“(2) An event or change of circumstances is not to be specified in a notice under subsection (1) unless the occurrence of the event or change of circumstances might affect whether the person is eligible for the card.
“(3) A notice under subsection (1):
(a) must be in writing; and
(b) may be given personally or by post; and
(c) must specify how the person is to give the information to the Department or specified officer; and
(d) must specify the period within which the person is to give the information to the Department or specified officer.
“(4) The period specified under paragraph (3)(d) must end at least 14 days after:
(a) the day on which the event or change of circumstances occurs; or
(b) the day on which the person becomes aware that the event or change of circumstances is likely to occur.
“(5) A person must not, without reasonable excuse, refuse or fail to comply with a notice under subsection (1) to the extent that the person is capable of complying with the notice.
Penalty: Imprisonment for 6 months.
Note: Subsections 4B(2) and (3) of the Crimes Act 1914 allow a court to impose an appropriate fine instead of, or in addition to, a term of imprisonment.
“(6) A person must not, in purported compliance with a notice under subsection (1), knowingly furnish information that is false or misleading in a material particular.
Penalty: Imprisonment for 12 months.
Note: Subsections 4B(2) and (3) of the Crimes Act 1914 allow a court to impose an appropriate fine instead of, or in addition to, a term of imprisonment.
“(7) This section extends to:
(a) acts, omissions, matters and things outside Australia whether or not in a foreign country; and
(b) all persons irrespective of their nationality or citizenship.
“(8) In this section, ‘officer’ means a person performing duties, or exercising powers or functions, under or in relation to this Act.
Secretary may require particular information relevant to eligibility for seniors health card
“118ZJ.(1) The Secretary may give a person who is the holder of a seniors health card a notice that requires the person to give the Department, or an officer specified in the notice, a statement about a matter that might affect whether the person is eligible for the card.
Note: For ‘holder of a seniors health card’ see section 5PB.
“(2) A notice under subsection (1):
(a) must be in writing; and
(b) may be given personally or by post; and
(c) must specify how the statement is to be given to the Department or specified officer; and
(d) must specify the period within which the person is to give the statement to the Department or specified officer.
“(3) The period specified under paragraph (2)(d) must end at least 14 days after the day on which the notice is given.
“(4) A statement given in response to a notice under subsection (1) must be in writing and be in accordance with a form approved by the Commission.
“(5) A person must not, without reasonable excuse, refuse or fail to comply with a notice under subsection (1) to the extent that the person is capable of complying with the notice.
Penalty: Imprisonment for 6 months.
Note: Subsections 4B(2) and (3) of the Crimes Act 1914 allow a court to impose an appropriate fine instead of, or in addition to, a term of imprisonment.
“(6) A person must not, in purported compliance with a notice under subsection (1), knowingly furnish information that is false or misleading in a material particular.
Penalty: Imprisonment for 12 months.
Note: Subsections 4B(2) and (3) of the Crimes Act 1914 allow a court to impose an appropriate fine instead of, or in addition to, a term of imprisonment.
“(7) This section extends to:
(a) acts, omissions, matters and things outside Australia whether or not in a foreign country; and
(b) all persons irrespective of their nationality or citizenship.
“(8) In this section, ‘officer’ means a person performing duties, or exercising powers or functions, under or in relation to this Act.
“Division 6—Continuation, variation and termination
Continuing effect of determination
“118ZK. A determination that a person is entitled to a seniors health card continues in effect until:
(a) the person ceases to be entitled to the card under section 118ZL or 118ZM; or
(b) a further determination under section 118ZN or 118ZO has taken effect.
Person ceases to be entitled to card automatically—recipient complying with section 118ZI notification obligations
“118ZL. If:
(a) a person who is the holder of a seniors health card is given a notice under section 118ZI; and
(b) the notice requires the person to inform the Department or a specified officer of the occurrence of an event or change in circumstances within a specified period (the ‘notification period’); and
(c) the event or change in circumstances occurs; and
(d) the person informs the Department or specified officer of the occurrence of the event or change in circumstances within the notification period in accordance with the notice; and
(e) because of the occurrence of the event or change in circumstances, the person ceases to be eligible for the card; and
(f) a determination is not made that the person ceases to be entitled to the card before the end of the notification period;
the person continues to be entitled to the card until the end of the notification period and the person then ceases to be entitled to the card.
Note: For ‘holder of a seniors health card’ see section 5PB.
Person ceases to be entitled to card automatically—recipient not complying with section 118ZI notification obligations
“118ZM. If:
(a) a person who is the holder of a seniors health card is given a notice under section 118ZI; and
(b) the notice requires the person to inform the Department or a specified officer of the occurrence of an event or change in circumstances within a specified period (the ‘notification period’); and
(c) the event or change in circumstances occurs; and
(d) the person does not inform the Department or specified officer of the occurrence of the event or change in circumstances within the notification period in accordance with the notice; and
(e) because of the occurrence of the event or the change in circumstances the person ceases to be eligible for the card;
the person ceases to be entitled to the card immediately after the day on which the event or change in circumstances occurs.
Note: For ‘holder of a seniors health card’ see section 5PB.
Determination that a person ceases to be entitled to a seniors health card
“118ZN.(1) If the Commission is satisfied that a person is, or was, the holder of a seniors health card when the person is not, or was not, eligible for the card, the Commission is to determine that the person ceases to be entitled to the card.
Note 1: For ‘holder of a seniors health card’ see section 5PB.
Note 2: A determination under this section is not necessary in a case where an automatic loss of eligibility is produced by section 118ZL or 118ZM.
Note 3: For the date of effect of a determination under this section see section 118ZR.
“(2) A determination under subsection (1) must be in writing.
Person may cease to be entitled to a seniors health card for failure to comply with section 118ZJ notice
“118ZO.(1) If:
(a) a person who is the holder of a seniors health card is given a notice under section 118ZJ; and
(b) the person does not comply with the requirements set out in the notice;
the Commission may determine that the person ceases to be entitled to the card.
Note 1: For ‘holder of a seniors health card’ see section 5PB.
Note 2: This section will not apply in a case where section 118ZN applies.
Note 3: For the date of effect of a determination under this section see section 118ZR.
“(2) A determination under subsection (1) must be in writing.
Resumption of entitlement
“118ZP.(1) If the Commission:
(a) determines that a person ceases to be entitled to a seniors health card under section 118ZN or 118ZO; and
(b) reconsiders that decision; and
(c) becomes satisfied that because of that decision:
(i) the person was not entitled to a seniors health card when in fact the person was eligible for the card; or
(ii) the person is not entitled to a seniors health card when in fact the person is eligible for the card;
the Commission is to determine that the person was or is entitled to the card.
“(2) The reconsideration referred to in paragraph (1)(b) might be a reconsideration on a claim under section 118ZS for review or a reconsideration on the Commission’s own initiative.
“(3) A determination under subsection (1) must be in writing.
Note: For the date of effect of a determination under this section see section 118ZQ.
Date of effect of favourable determination
“118ZQ. A determination under section 118ZP takes effect on the day on which the determination is made or on such later day or earlier day as is specified in the determination.
Date of effect of adverse determination
“118ZR.(1) The day on which a determination under section 118ZN or 118ZO (the ‘adverse determination’) takes effect is worked out in accordance with this section.
“(2) The adverse determination takes effect on:
(a) the day on which the determination is made; or
(b) if another day is specified in the determination—on that day.
“(3) Subject to subsections (4) and (5), the day specified under paragraph (2)(b) must be later than the day on which the determination is made.
Contravention of Act
“(4) If:
(a) the person’s entitlement to a seniors health card is affected by the adverse determination and the person has contravened a provision of this Act (other than subsection 118ZI(5), 118ZJ(5) or 128(4)); and
(b) the contravention causes a delay in making the determination;
the day specified under paragraph (2)(b) may be earlier than the day on which the determination is made.
False statement or misrepresentation
“(5) If:
(a) a person has made a false statement or misrepresentation; and
(b) because of the false statement or misrepresentation, the person became the holder of a seniors health card when in fact the person was not eligible for the card;
the day specified under paragraph (2)(b) may be earlier than the day on which the determination is made.
“Division 7—Review of decisions
Review of certain decisions
“118ZS.(1) A claimant who is dissatisfied with a decision of the Commission in relation to a claim for a seniors health card may request the Commission to review the decision.
“(2) A person who is dissatisfied with a decision of the Commission that the person ceases to be entitled to a seniors health card may request the Commission to review the decision.
Application for review
“118ZT.(1) A request for review of a decision under section 118ZS must:
(a) be made within 3 months after the person seeking review was notified of the decision; and
(b) set out the grounds on which the request is made; and
(c) be in writing.
“(2) If a request for review of a decision is made in accordance with subsection (1), the Commission must review the decision.
“(3) If the Commission has delegated its powers under this section to the person who made the decision under review, that person must not review the decision.
Commission’s powers where request for review
“118ZU.(1) If the Commission reviews a decision under this Division, the Commission must affirm the decision or set it aside.
“(2) If the Commission sets the decision aside it must, subject to subsection (3), substitute a new decision in accordance with this Act.
“(3) If the decision set aside is a decision that a person ceases to be entitled to a seniors health card, the Commission need not substitute another decision.
Note: For the Commission’s evidence gathering powers see section 118ZY.
Date of effect of certain review decisions
“118ZV.(1) If the Commission sets aside a decision and substitutes for it a decision that a person is entitled to a seniors health card, the substituted decision takes effect from a date specified by the Commission.
“(2) The date specified by the Commission must not be earlier than the date from which, had the Commission determined that the person is entitled to a seniors health card, such a determination could have taken effect.
Commission must make written record of review decision and reasons
“118ZW.(1) When the Commission reviews a decision under this Division it must make a written record of its decision upon review.
“(2) The written record must include a statement that:
(a) sets out the Commission’s findings on material questions of fact; and
(b) refers to the evidence or other material on which those findings are based; and
(c) provides reasons for the Commission’s decision.
Person who requested review to be notified of decision
“118ZX.(1) When the Commission affirms or sets aside a decision under this Division it must give the person who requested the review of the decision:
(a) a copy of the Commission’s decision; and
(b) subject to subsection (2), a copy of the statement about the decision referred to in subsection 118ZW(1); and
(c) if the person has a right to apply to the Administrative Appeals Tribunal for a review of the Commission’s decision—a statement giving the person particulars of that right.
“(2) If the statement referred to in paragraph (1)(b) contains any matter that, in the opinion of the Commission:
(a) is of a confidential nature; or
(b) might, if communicated to the person who requested review, be prejudicial to his or her physical or mental health or well-being;
the copy given to the person is not to contain that matter.
Powers of Commission to gather evidence
“118ZY.(1) The Commission or the Commission’s delegate may, in reviewing a decision under this Division:
(a) take evidence on oath or affirmation for the purposes of the review; and
(b) adjourn a hearing of the review from time to time.
“(2) The presiding member of the Commission or the Commission’s delegate may, for the purposes of the review:
(a) summon a person to appear at a hearing of the review to give evidence and to produce such documents (if any) as are referred to in the summons; and
(b) require a person appearing at a hearing of the review for the purpose of giving evidence either to take an oath or to make an affirmation; and
(c) administer an oath or affirmation to a person so appearing.
“(3) The person who applied for the review under this Division is a competent and compellable witness upon the hearing of the review.
“(4) The oath or affirmation to be taken or made by a person for the purposes of this section is an oath or affirmation that the evidence that the person will give will be true.
“(5) The Commission’s power under paragraph (1)(a) to take evidence on oath or affirmation:
(a) may be exercised on behalf of the Commission by:
(i) the presiding member or the Commission’s delegate; or
(ii) by another person (whether a member or not) authorised by the presiding member or the Commission’s delegate; and
(b) may be exercised within or outside Australia; and
(c) must be exercised subject to any limitations specified by the Commission.
“(6) Where a person is authorised under subparagraph (5)(a)(ii) to take evidence for the purposes of a review, the person has:
(a) all the powers of the Commission under subsection (1); and
(b) all the powers of the presiding member under subsection (2);
for the purposes of taking that evidence.
“(7) In this section:
‘Commission’s delegate’ means a person to whom the Commission has delegated its powers under section 118ZT and who is conducting the review in question.
Withdrawal of request for review
“118ZZ.(1) A person who requests a review under section 118ZS may withdraw the request at any time before it is determined by the Commission.
“(2) To withdraw the request, the person must give written notice of withdrawal to the Secretary and the notice must be lodged at an office of the Department in Australia.
“(3) Subject to section 118ZT, a person who withdraws a request for review may subsequently make another request for review of the same decision.
Note: Section 118ZT provides that a person who wants to request a review of a decision must do so within 3 months after the person has received notice of the decision.
“Division 8—Seniors health card ordinary income test calculator
Seniors Health Card Ordinary Income Test Calculator
“118ZAA. The Seniors Health Card Ordinary Income Test Calculator at the end of this section is to be used in working out whether a person satisfies the seniors health card ordinary income test for the purposes of this Act.
SENIORS HEALTH CARD ORDINARY INCOME TEST
CALCULATOR
Satisfying the seniors health card ordinary income test
“118ZAA-1. This is how to work out whether a person satisfies the seniors health card ordinary income test.
| | Method statement |
| Step 1. | Work out the amount of the person’s ordinary income on a yearly basis. Note: For the treatment of the ordinary income of members of a couple see point 118ZAA-2. |
| Step 2. | Work out the person’s seniors health card ordinary income limit using point 118ZAA-3. |
| Step 3. | Work out whether the person’s ordinary income exceeds the person’s seniors health card ordinary income limit. |
| Step 4. | If the person’s ordinary income is less than the person’s seniors health card ordinary income limit, the person satisfies the seniors health card ordinary income test. |
| Step 5. | If the person’s ordinary income is equal to or exceeds the person’s seniors health card ordinary income limit, the person does not satisfy the seniors health card ordinary income test. |
Note 1: For ‘ordinary income’ see subsections 5H(1) and (8).
Note 2: The application of the ordinary income test is affected by provisions concerning:
• investment income (Division 8 of Part III);
• attributed (deemed) income (Divisions 8A, 8B and 8C of Part III);
• disposal of income (Division 10 of Part III).
Ordinary income of members of couples
“118ZAA-2. If a person is a member of a couple, add the couple’s ordinary incomes (on a yearly basis) and divide by 2 to work out the amount of the person’s ordinary income for the purposes of this Part.
Seniors health card ordinary income limit
“118ZAA-3. A person’s seniors health card ordinary income limit is worked out using the Seniors Health Card Ordinary Income Limit Table. Work out which family situation in the Table applies to the person. The person’s seniors health card ordinary income limit is the corresponding amount in column 3 plus an additional corresponding amount in column 4 for each dependent child of the person.
| SENIORS HEALTH CARD ORDINARY INCOME LIMIT TABLE |
| column 1 | column 2 | column 3 | column 4 |
| item | person’s family situation | amount per year | additional dependent child amount per year |
| 1. | Not member of couple | $19,000.80 | $624.00 |
| 2. | Partnered | $15,823.60 | $624.00 |
| 3. | Member of illness separated couple | $18,688.80 | $624.00 |
| 4. | Member of respite care couple | $18,688.80 | $624.00 |
Note 1: For ‘member of couple’ and ‘partnered’ see section 5E.
Note 2: For ‘illness separated couple’ and ‘respite care couple’ see section 5R.
Note 3: For ‘dependent child’ see section 5F.
Note 4: The ordinary income limit amounts are adjusted 4 times per year in line with CPI changes (see section 118ZAD).
Adjustment of ordinary income limits before this Part commences
“118ZAA-4. The amounts in column 3 of the Seniors Health Card Ordinary Income Limit Table in point 118ZAA-3 are to be adjusted on 1 January 1994 and 20 March 1994 under section 118ZAD as if this Division and Division 9 had commenced on 1 January 1994.
“Division 9—Adjustment
Analysis of Division
“118ZAB. This Division provides for the adjustment of the seniors health card ordinary income limit amounts (see section 118ZAD).
Adjusted amounts
“118ZAC. The following Table sets out:
(a) the amount to be adjusted under this Division; and
(b) the abbreviation used in this Division for referring to that amount; and
(c) the provision or provisions in which that amount is to be found.
| | INDEXED AND ADJUSTED AMOUNTS TABLE |
| column 1 | column 2 | column 3 | column 4 |
| item | description of amount | abbreviation | provisions in which amount specified |
| 1. | Ordinary income limit for a seniors health card for a person who is not a member of a couple | SHC unpartnered limit | [Seniors Health Card Ordinary Income Test Calculator—point 118ZAA-3—Seniors Health Card Ordinary Income Limit Table—column 3—item 1] |
| 2. | Ordinary income limit for a seniors health card for a person who is partnered | SHC partnered limit | [Seniors Health Card Ordinary Income Test Calculator—point 118ZAA-3—Seniors Health Card Ordinary Income Limit Table—column 3—item 2] |
| 3. | Ordinary income limit for a seniors health card for a person who is a member of an illness separated couple | SHC illness separated couple limit | [Seniors Health Card Ordinary Income Test Calculator—point 118ZAA-3—Seniors Health Card Ordinary Income Limit Table—column 3—item 3] |
| 4. | Ordinary income limit for a seniors health card for a person who is a member of a respite care couple | SHC respite care couple limit | [Seniors Health Card Ordinary Income Test Calculator—point 118ZAA-3—Seniors Health Card Ordinary Income Limit Table—column 3—item 4] |
Adjustment of seniors health card ordinary income limit
“118ZAD.(1) This Act has effect as if, on 1 January, 20 March, 1 July and 20 September each year, the amount worked out in accordance with the following formula were substituted for the SHC unpartnered limit:
where:
‘pensioner unpartnered maximum basic rate’ is the current figure, as at that 1 January, 20 March, 1 July or 20 September, for the amount applicable, under item 1 in column 3 of Table B in point 41-B1 of Service Pension Rate Calculator Where There Are No Dependent Children to a person to whom the Table applies;
‘pensioner unpartnered pharmaceutical allowance’ is the current figure, as at that 1 January, 20 March, 1 July or 20 September, for the amount applicable, under section 118C, to a person to whom the section applies;
‘pensioner unpartnered income free area’ is the current figure, as at that 1 January, 20 March, 1 July or 20 September, for the amount applicable, under item 1 in column 3 of Table D-1 in point 41-D4 of Service Pension Rate Calculator Where There Are No Dependent Children, to a person to whom the Table applies.
“(2) This Act has effect as if, on 1 January, 20 March, 1 July and 20 September each year, the amount worked out in accordance with the following formula were substituted for the SHC partnered limit:
where:
‘pensioner partnered maximum basic rate’ is the current figure, as at that 1 January, 20 March, 1 July or 20 September, for the amount applicable, under item 3 in column 3 of Table B in point 41-B1 of Service Pension Rate Calculator Where There Are No Dependent Children, to a person to whom the Table applies;
‘pensioner partnered pharmaceutical allowance’ is the current figure, as at that 1 January, 20 March, 1 July or 20 September, for the amount applicable, under section 118C, to a person to whom the section applies;
‘pensioner partnered income free area’ is the current figure, as at that 1 January, 20 March, 1 July or 20 September, for the amount applicable, under item 4 in column 3 of Table D-1 in point 41-D4 of Service Pension Rate Calculator Where There Are No Dependent Children, to a person to whom the Table applies.
“(3) This Act has effect as if, on 1 January, 20 March, 1 July and 20 September each year, the amount worked out in accordance with the following formula were substituted for the SHC illness separated couple limit:
where:
‘pensioner illness separated couple maximum basic rate’ is the current figure, as at that 1 January, 20 March, 1 July or 20 September, for the amount applicable, under item 1 in column 3 of Table B in point 41-B1 of Service Pension Rate Calculator Where There Are No Dependent Children, to a person to whom the Table applies;
‘pensioner illness separated couple pharmaceutical allowance’ is the current figure, as at that 1 January, 20 March, 1 July or 20 September, for the amount applicable, under section 118C, to a person to whom the section applies;
‘pensioner illness separated couple income free area’ is the current figure, as at that 1 January, 20 March, 1 July or 20 September, for the amount applicable, under item 4 in column 3 of Table D-1 in point 41-D4 of Service Pension Rate Calculator Where There Are No Dependent Children, to a person to whom the Table applies.
“(4) This Act has effect as if, on 1 January, 20 March, 1 July and 20 September each year, the amount worked out in accordance with the following formula were substituted for the SHC respite care couple limit:
where:
‘pensioner respite care couple maximum basic rate’ is the current figure, as at that 1 January, 20 March, 1 July or 20 September, for the amount applicable, under item 1 in column 3 of Table B in point 41-B1 of Service Pension Rate Calculator Where There Are No Dependent Children, to a person to whom the Table applies;
‘pensioner respite care couple pharmaceutical allowance’ is the current figure, as at that 1 January, 20 March, 1 July or 20 September, for the amount applicable, under section 118C, to a person to whom the section applies;
‘pensioner respite care couple income free area’ is the current figure, as at that 1 January, 20 March, 1 July or 20 September, for the amount applicable, under item 4 in column 3 of Table D-1 in point 41-D4 of Service Pension Rate Calculator Where There Are No Dependent Children, to a person to whom the Table applies.”.
Amendment of other Acts
8. The Acts specified in Schedule 1 are amended as set out in that Schedule.
PART 3—CHILD RELATED PAYMENTS
Determinations having interpretative effect
9. Section 5R of the Principal Act is amended by omitting subparagraph (9)(b)(iii) and substituting the following subparagraph:
“(iii) the Post Graduate Awards Scheme; or”.
Insertion of new section
10. After section 40C of the Principal Act the following section is inserted in Subdivision A of Division 7 of Part 3:
Rate calculator determinations in relation to children of a couple
“40D.(1) The Commission may make a determination under subsection (2) or (3) if:
(a) a person is a member of a couple; and
(b) the person and the person’s partner are receiving service pensions; and
(c) a child is a dependent child:
(i) of the person; or
(ii) of both the person and the person’s partner; and
(d) the Commission:
(i) is satisfied that it is in the best interests of the child to make the determination; or
(ii) has been requested by the person and the person’s partner to make the determination.
Note: Usually the person and the person’s partner’s rate of service pension will be worked out under the Service Pension Rate Calculator Where There Are Dependent Children in section 42. If the veteran is permanently blind, the veteran’s service pension rate will be worked out under Service Pension Rate Calculator For Blinded Veterans in section 43.
“(2) If the person’s service pension rate and the person’s partner’s service pension rate are worked out under the same Rate Calculator, the Commission may determine that for the purposes of Module C of that Rate Calculator the child is to be taken into account as a dependent child of the person or the person’s partner.
“(3) If the service pension rates of the members of the couple are worked out under different Rate Calculators, the Commission may determine that for the purposes of Module C of both Rate Calculators the child is to be taken into account as a dependent child of the person but not of the person’s partner.
Note: A determination may relate to a child who, if the determination was not made, would be allocated to a particular member of the couple (see Table C-1 in point 42-C2 and Table C-1 in point 43-C2). A determination may also relate to a child who, if the determination was not made, would not be affected by the allocation rules set out in those Tables.”.
Rate of age, invalidity, partner and carer service pension (no dependent children)
11. The Rate Calculator in section 41 of the Principal Act is amended:
(a) by omitting from the Method statement in point 41-A1 Steps 5 and 6;
(b) by omitting from Step 7 in the Method statement in point 41-A1 “total income reduction” and substituting “reduction for ordinary income”;
(c) by renumbering Steps 7, 8, 9 and 10 in the Method statement in point 41-A1 as Steps 5, 6, 7 and 8;
(d) by omitting from point 41-A2 “, 41-E2”;
(e) by omitting Module E.
Rate of age, invalidity, partner and carer service pension (dependent child or children)
12. The Rate Calculator in section 42 of the Principal Act is amended:
(a) by omitting from the Method statement in point 42-A1 Steps 5, 6 and 7 and substituting the following Steps:
“
| Step 5. | Apply the maintenance income test using Module DAA below to work out the reduction for maintenance income. |
| Step 6. | Apply the ordinary income test using Module E below to work out the reduction for ordinary income. |
| Step 7. | Add up the reduction for maintenance income and the reduction for ordinary income: the result is called the total income reduction. |
”;
(b) by omitting from point 42-A2 “(see points 42-E2, 42-F2 and 42-F3 and 42-G2 below)” and substituting “(see points 42-DAA2, 42-DAA3, 42-E2 and 42-G2 below)”;
(c) by omitting from point 42-A3 “see points 42-E10 to 42-E12, points 42-F11 to 42-F13” and substituting “see points 42-DAA11 to 42-DAA13, points 42-E10 to 42-E12”;
(d) by omitting from paragraph (b) in point 42-A3 “see points 42-E2, 42-F2 and 42-F3” and substituting “see points 42-DAA2, 42-DAA3, 42-E2”;
(e) by omitting from point 42-C2 “If” and substituting “Subject to section 40D, if”;
(f) by adding at the end of point 42-C2 the following Note:
“Note: If a determination is made under section 40D, the child will be allocated for the purposes of Module C in accordance with the determination and not the allocation rules in Table C-1.”;
(g) by omitting from point 42-C3 “point 42-C4” and substituting “points 42-C3AA, 42-C3AB, 42-C3A and 42-C4”;
(h) by inserting after point 42-C3 the following points:
Dependent child add-on may be reduced in certain circumstances
“42-C3AA. If:
(a) in working out a person’s pension rate, an amount for a child is to be added under this Module to the person’s maximum basic rate; and
(b) a declaration under subsection 869(1) of the Social Security Act specifies the percentage of family payment for the child that is payable to the person;
the Commission may determine that the amount to be added is to be reduced to that percentage of the amount that, but for this point, would be added.
“42-C3AB. If:
(a) in working out a person’s pension rate, an amount for a child is to be added to the person’s maximum basic rate; and
(b) additional family payment for the child is payable to another person; and
(c) there is not a declaration under subsection 869(1) of the Social Security Act in relation to the child;
no amount is to be added to the person’s maximum basic rate.”;
(i) by omitting from point 42-D15 “item 4” and substituting “item 3”;
(j) by inserting the following Module before Module DA:
“MODULE DAA—MAINTENANCE INCOME TEST
Effect of maintenance income on maximum payment rate
“42-DAA1. This is how to work out the effect of a person’s maintenance income on the person’s maximum payment rate:
| | Method statement |
| Step 1. | Work out the amount of the person’s maintenance income on a yearly basis. |
| | Note 1: For the treatment of the maintenance income of members of a couple see points 42-DAA2 and 42-DAA3. |
| | Note 2: ‘Special maintenance income’ (see subsection 5K(1)) can in some circumstances be disregarded under points 42-DAA4 to 42-DAA8. |
| Step 2. | Work out the person’s maintenance income free area (see points 42-DAA9 and 42-DAA10 below). |
| | Note: A person’s maintenance income free area is the maximum amount of maintenance income the person can have without affecting the person’s pension rate. |
| Step 3. | Work out whether the person’s maintenance income exceeds the person’s maintenance income free area. |
| Step 4. | If the person’s maintenance income does not exceed the person’s maintenance income free area, the person’s maintenance income excess is nil. |
| Step 5. | If the person’s maintenance income exceeds the person’s maintenance income free area, the person’s maintenance income excess is the person’s maintenance income less the person’s maintenance income free area. |
| Step 6. | Use the person’s maintenance income excess to work out the person’s reduction for maintenance income using points 42-DAA11 to 42-DAA14 below. |
Note 1: See point 42-A1 (Steps 5 to 11) for the significance of the person’s reduction for maintenance income.
Note 2: The application of the maintenance income test is affected by provisions concerning:
• apportionment of capitalised maintenance income (section 51);
• in-kind housing maintenance—value of substitute for family home (section 51A).
Maintenance incomes of members of couples
“42-DAA2. If the person is a member of a couple, add the couple’s maintenance incomes (on a yearly basis) and divide by 2 to work out the amount of the person’s maintenance income for the purposes of this Module.
“42-DAA3. Point 42-DAA2 does not apply to a person if the person’s partner:
(a) is not in receipt of:
(i) a service pension or a social security pension; or
(ii) a social security benefit; and
(b) does not have maintenance income.
Note: ‘Social security pension’ includes a rehabilitation allowance.
Special maintenance income
“42-DAA4. Subject to points 42-DAA7 and 42-DAA8, if a person has special maintenance income in excess of the ceiling applicable to the person, the excess is disregarded for the purposes of this Module.
Note: See subsection 5K(1) for ‘special maintenance income’.
“42-DAA5. If a person:
(a) is a member of a couple; and
(b) has a maintained child; and
(c) the person’s partner is receiving a service pension or social security pension;
the ceiling applicable to the person is the amount equal to the person’s maintenance income free area plus:
where:
‘combined maximum rates’ is the sum of:
(a) the maximum payment rate of pension applicable to the person; and
(b) the maximum payment rate of service pension or social security pension applicable to the person’s partner; and
(c) any incentive allowance payable to the person’s partner.
Note 1: For ‘maintained child’ see subsection 5K(1).
Note 2: ‘Social security pension’ includes a rehabilitation allowance.
Note 3: For ‘incentive allowance’ see clause 36 of Schedule 1A in the Social Security Act 1991.
“42-DAA6. If a person is not covered by point 42-DAA5, the ceiling applicable to the person is the amount equal to the person’s maintenance income free area plus:
| person’s maximum basic rate |
| 2 |
Special maintenance income not disregarded where child support available
“42-DAA7. No amount is to be disregarded under point 42-DAA4 if:
(a) child support is not payable under the Child Support (Assessment) Act 1989 to the person for a child; and
(b) the person is entitled to make an application for assessment of child support under Part V of that Act for the child payable by another person; and
(c) the person has:
(i) neither:
(A) properly made such an application; nor
(B) properly made an application under Part VI of that Act for acceptance of an agreement in relation to the child; or
(ii) the person has properly made an application of either kind, but:
(A) the person has subsequently withdrawn the application; or
(B) after child support has become payable by the other person under that Act for the child, the person has ended the entitlement to child support.
“42-DAA8. No amount is to be disregarded under point 42-DAA4 if:
(a) child support is payable under the Child Support (Assessment) Act 1989 to the person for a child; and
(b) the person is entitled to make an application under section 128 of that Act; and
(c) an application by the person under that section is not in force.
How to calculate a person’s maintenance income free area
“42-DAA9. A person’s maintenance income free area is worked out using Table DAA-1. Work out which family situation in Table DAA-1 applies to the person. The maintenance income free area is the corresponding amount in column 3 plus an additional corresponding amount in column 5 for each maintained child after the first.
| | | TABLE DAA-1 | | |
| | MAINTENANCE INCOME FREE AREA | |
| column 1 | column 2 | column 3 | column 4 | column 5 | column 6 |
| item | person’s family situation | basic free area per year | basic free area per fortnight | additional free area per year | additional free area per fortnight |
| 1. | Not member of couple | $780.00 | $30.00 | $260.00 | $10.00 |
| 2. | Partnered (partner getting neither pension nor benefit) | $780.00 | $30.00 | $260.00 | $10.00 |
| 3. | Partnered (partner getting pension or benefit)—both person and partner receiving maintenance income | $780.00 | $30.00 | $130.00 | $5.00 |
| 4. | Partnered (partner getting pension or benefit)—either person or partner (but not both) receiving maintenance income | $390.00 | $15.00 | $130.00 | $5.00 |
Note 1: For ‘member of couple’, ‘partnered (partner getting neither pension nor benefit)’, ‘partnered (partnered getting pension or benefit)’ and ‘maintained child’ see sections 5E and 5K.
Note 2: Items 2, 3 and 4 of Table DAA-1 apply to members of illness separated and respite care couples.
“42-DAA10. In determining whether or not item 3 or 4 of Table DAA-1 applies to a person point 42-DAA2 is to be disregarded. This has the effect of taking into account only maintenance income that the person actually receives rather than any income that the person is taken to receive because of maintenance income received by the person’s partner.
Pension reduction for maintenance income in excess of maintenance income free area
“42-DAA11. Subject to point 42-DAA14, a person’s reduction for maintenance income is worked out using Table DAA-2. Work out which family situation applies to the person. The reduction for maintenance income is the amount per year worked out using the corresponding calculation in column 3.
| TABLE DAA-2 |
| REDUCTION FOR MAINTENANCE INCOME |
| column 1 | column 2 | column 3 |
| item | person’s family situation | reduction |
| 1. | Not member of couple | maintenance income excess
2 |
| | |
| 2. | Partnered (partner getting neither pension nor benefit) | maintenance income excess
2 |
| |
| 3. | Partnered (partner getting benefit) | maintenance income excess
2 |
| |
| 4. | Partnered (partner getting pension) person has additional amounts for dependent children | DC excess – remaining excess
2 |
| |
| 5. | Partnered (partner getting pension)—partner has additional amounts for dependent children | remaining excess
2 |
| |
Note 1: For ‘member of couple’, ‘partnered (partner getting neither pension nor benefit)’, ‘partnered (partner getting benefit)’ and ‘partnered (partner getting pension)’ see section 5E.
Note 2: For ‘additional amounts for dependent children’ see subsection 5Q(1).
Note 3: ‘Social security pension’ includes a rehabilitation allowance.
Note 4: For ‘maintenance income excess’ see point 42-DAA12 below.
Note 5: For ‘DC excess’ and ‘remaining excess’ see point 42-DAA13 below.
Note 6: For background information on the special treatment given to people covered by items 4 and 5 of Table DAA-2 see points 42-A3 and 42-A4 above.
Maintenance income excess
“42-DAA12. A person’s maintenance income excess is the person’s maintenance income less the person’s maintenance income free area.
Working out DC excess and remaining excess
“42-DAA13. For the purposes of Table DAA-2, if a member of a couple (the ‘DC partner’) has additional amounts for dependent children:
(a) the additional amounts for dependent children total (the ‘DC total’) is the sum of the amounts the DC partner has by way of additional amounts for dependent children; and
(b) if the DC partner’s maintenance income excess (see point 42-DAA12 above) is less than or equal to the DC total:
(i) the DC excess is the DC partner’s maintenance income excess; and
(ii) the remaining excess is nil; and
(c) if the DC partner’s maintenance income excess (see point 42-DAA12 above) is greater than the DC total:
(i) the DC excess is the DC total; and
(ii) the remaining excess is the DC partner’s maintenance income excess less the DC total.
Ceiling for reduction on child add-on and rent assistance
“42-DAA14. A person’s maximum reduction for maintenance income is not to exceed the person’s additional amounts for dependent children plus the person’s rent assistance.
Note: For additional amounts for dependent children see Module C. For rent assistance see Module D.
(k) by omitting paragraph 42-E6(b) and substituting the following paragraph:
“(b) the person’s ordinary income free area is not increased under point 42-E4; and”;
(1) by omitting from Module E point 42-E13 and substituting the following point:
Working out DC excess and remaining excess
“42-E13. For the purposes of Table E-2, if a member of a couple (the ‘DC partner’) has additional amounts for dependent children:
(a) the additional amounts for dependent children total (the ‘DC total’) is the sum of the amounts the DC partner has by way of additional amounts for dependent children; and
(b) if the DC partner’s maintenance income excess (see point 42-DAA12 above) plus the DC partner’s ordinary income excess (see point 42-E12 above) are less than or equal to the DC total:
(i) the DC excess is the DC partner’s ordinary income excess; and
(ii) the remaining excess is nil; and
(c) if:
(i) the DC partner’s maintenance income excess (see point 42-DAA12 above) plus the DC partner’s ordinary income excess (see point 42-E12 above) is greater than the DC total; and
(ii) the DC partner’s maintenance income excess is greater than or equal to the DC total;
then:
(iii) the DC excess is nil; and
(iv) the remaining excess is the DC partner’s ordinary income excess; and
(d) if:
(i) the DC partner’s maintenance income excess (see point 42-DAA12 above) plus the DC partner’s ordinary income excess (see point 42-E12 above) is greater than the DC total; and
(ii) the DC partner’s maintenance income excess is less than the DC total;
then:
(iii) the DC excess is the DC total less the DC partner’s maintenance income excess; and
(iv) the remaining excess is the DC partner’s ordinary income excess less the DC excess.”;
(m) by omitting Module F;
(n) by omitting from point 42-H2 “veteran”;
(o) by omitting from point 42-H2 “or partner or carer service pensioner add-on child”;
(p) by omitting from Note 2 to point 42-H2 “veteran”;
(q) by omitting Note 3 to point 42-H2;
(r) by omitting points 42-H4 and 42-H4A and substituting the following point:
Pensioner add-on child
“42-H4. A person has a pensioner add-on child if the person’s service pension rate includes a dependent child add-on for the child.”;
(s) by omitting from point 42-H6 “veteran” (first occurring).
Rate of age and invalidity service pension (blinded veterans)
13. The Rate Calculator in section 43 is amended:
(a) by omitting from point 43-A2 “compare Module F” and substituting “compare Module DAA”;
(b) by omitting from the Note in the Method statement in point 43-C1
“(Modules E, F and G)” and substituting “(Modules DAA, E and G)”;
(c) by omitting from point 43-C2 “If” and substituting “Subject to section 40D, if”;
(d) by adding at the end of point 43-C2 the following Note:
“Note: If a determination is made under section 40D, the child will be allocated for the purposes of Module C in accordance with the determination and not the allocation rules in Table C-1.”;
(e) by inserting after point 43-C3 the following points:
Dependent child add-on may be reduced in certain circumstances
“43-C3AA. If:
(a) in working out a person’s pension rate, an amount for a child is to be added to the person’s maximum basic rate; and
(b) a declaration under subsection 869(1) of the Social Security Act specifies the percentage of family payment for the child that is payable to the person;
the Commission may determine that the amount to be added is to be reduced to that percentage of the amount that, but for this point, would be added.
“43-C3AB. If:
(a) in working out a person’s pension rate, an amount for a child is to be added to the person’s maximum basic rate; and
(b) additional family payment for the child is payable to another person; and
(c) there is not a declaration under subsection 869(1) of the Social Security Act in relation to the child;
no amount is to be added to the person’s maximum basic rate.”;
(f) by omitting from Note 1 in point 43-D4 “, a maintenance income test (Module E)”;
(g) by omitting from Note 2 in point 43-D4 “, the maintenance income test”;
(h) by omitting from Note 3 in point 43-D4 “an ordinary income test (Module E), a maintenance income test (Module F)” and substituting “a maintenance income test (Module DAA), an ordinary income test (Module E)”;
(i) by omitting from point 43-E2 “veteran”;
(j) by omitting from Note 2 to point 43-E2 “veteran”;
(k) by omitting point 43-E4 and substituting the following point:
Pensioner add-on child
“43-E4. A person has a pensioner add-on child if the person’s service pension rate includes a dependent child add-on for the child.”;
(l) by omitting from point 43-E6 “veteran” (first occurring).
Rate of partner service pension for widows, widowers and non-illness separated spouses
14. The Rate Calculator in section 44 of the Principal Act is amended:
(a) by omitting from the Method statement in point 44-A1 Steps 5 and 6;
(b) by omitting from Step 7 in the Method statement in point 44-A1 “total income reduction” and substituting “reduction for ordinary income”;
(c) by renumbering Steps 7, 8, 9 and 10 in the Method statement in point 44-A1 as Steps 5, 6, 7 and 8;
(d) by omitting Module E.
Rate of age, invalidity and carer service pensions (war widow or war widower)
15. The Rate Calculator in section 45 of the Principal Act is amended by omitting points 45-B1 and 45-B2 and substituting the following points:
Ceiling rate if no additional amounts for children
“45-B1. If:
(a) the provisional rate of a widow or widower does not include an amount calculated using Module C in the relevant Rate Calculator in section 42 or 43; and
(b) point 45-B2 does not apply to the widow or widower;
the ceiling rate is $3,122.60.
“45-B2. If:
(a) the provisional rate of a widow or widower does not include an amount calculated using Module C in the relevant Rate Calculator in section 42 or 43; and
(b) the widow or widower was receiving his or her service pension immediately before 1 November 1986 at a rate (the ‘pre-November 1986 rate’) equal to or more than $3,122.60;
his or her ceiling rate is the pre-November 1986 rate.
Ceiling rate if there are additional amounts for children
“45-B3. If:
(a) the provisional rate of a widow or widower includes an amount calculated using Module C in the relevant Rate Calculator in section 42 or 43; and
(b) point 45-B4 does not apply to the widow or widower;
the ceiling rate is $3,122.60 plus the amount calculated using Module C and the amount (if any) calculated using Module D of that Rate Calculator.
“45-B4. If:
(a) the provisional rate of a widow or widower includes an amount calculated using Module C in the relevant Rate Calculator in section 42 or 43; and
(b) the widow or widower was receiving his or her service pension immediately before 1 November 1986 at a rate (the ‘pre-November 1986 rate’) equal to or more than $3,122.60;
his or her ceiling rate is the pre-November 1986 rate (less any amounts included in the rate for dependent children or rent assistance) plus the amount calculated using Module C and the amount (if any) calculated using Module D of that Rate Calculator.
Note: Module C is the Module used to calculate additional amounts for dependent children and Module D is the Module used to calculate rent assistance in both Rate Calculators in sections 42 and 43.”.
Rate increase determination
16. Section 56C of the Principal Act is amended by omitting from the Note to subsection (1) “section 56G” and substituting “sections 56G and 56GA”.
Insertion of new section
17. After section 56G of the Principal Act the following section is inserted:
Date of effect of determination under section 56C—birth of child
“56GA. If:
(a) a determination under section 56C is made after a person advises the Department of the birth of a child; and
(b) the person advises the Department of the birth within 13 weeks of the day of the birth;
the determination takes effect on the first pension payday after the day of the birth.”.
PART 4—COMPENSATION
Insertion of new Division
18. After Division 5 of Part II of the Principal Act the following Division is inserted:
“Division 5A—Effect of certain compensation payments on rates of pension
Certain compensation payments excluded
“30A. This Division does not apply to a periodic payment or a lump sum payment referred to in paragraph 26(1)(b) or (2)(b) or subsection 30(3).
Interpretation
“30B.(1) In this Division, unless the contrary intention appears:
‘compensation’ includes:
(a) any payment in the nature of compensation; and
(b) any damages recoverable at law from the Commonwealth, a State, a Territory or any other person (whether within or outside Australia), in respect of injury to, or the death of, a person; and
(c) any amount paid under a compromise or settlement of a claim for damages referred to in paragraph (b);
but does not include any amount that represents expenses incurred in medical or hospital treatment.
“(2) For the purposes of this Part, a payment of arrears of periodic compensation payments is not a lump sum compensation payment.
Note: For lump sum payments of compensation see section 30C. For periodic payments of compensation see section 30D.
“(3) In sections 30G and 30H:
‘damages’ does not include an amount that has been paid under a notice under section 51 of the Safety, Rehabilitation and Compensation Act 1988.
“(4) In sections 30L and 30M:
‘international organisation’ means:
(a) an organisation:
(i) of which 2 or more countries, or the governments of 2 or more countries, are members; or
(ii) that is constituted by persons representing 2 or more countries, or representing the governments of 2 or more countries; or
(b) an organisation that is:
(i) an organ of, or office within, an organisation described in paragraph (a); or
(ii) a commission, council or other body established by an organisation so described or such an organ; or
(iii) a committee, or subcommittee of a committee, of an organisation described in paragraph (a), or of such an organ, council or body.
Lump sum compensation payment
“30C.(1) If:
(a) a lump sum payment of compensation is made to a person who is a veteran or a dependant of the veteran; and
(b) the compensation payment is paid in respect of the incapacity of the veteran from injury or disease or the death of the veteran; and
(c) the person is receiving, or is subsequently granted, a pension under this Part in respect of the incapacity from that injury or disease or the death;
the following provisions have effect:
(d) the person is taken to have been, or to be, receiving payments of compensation at a rate per fortnight determined by, or under the instructions of, the Commonwealth Actuary;
(e) the person is taken to have been, or to be, receiving those payments for the period of the person’s life determined by, or under the instructions of, the Commonwealth Actuary;
(f) the period referred to in paragraph (e) begins:
(i) on the day that lump sum payment is made to the person; or
(ii) on the day the pension becomes payable to the person;
whichever is the earlier day.
Note 1: Pensions under this Part are payable in respect of the incapacity of a veteran from a war-caused injury or disease or in respect of the death of the veteran (see section 13).
Note 2: A payment of arrears of periodic compensation is not a lump sum compensation payment (see subsection 30B(2)).
Lump sum payment—Safety, Rehabilitation and Compensation Act (section 137)
“(2) If:
(a) a lump sum payment is made under section 137 of the Safety, Rehabilitation and Compensation Act 1988 to a person who is a veteran or a dependant of the veteran; and
(b) the payment is made in respect of the incapacity of the veteran from injury or disease or the death of the veteran; and
(c) the person is receiving, or is subsequently granted, a pension under this Part in respect of the incapacity from that injury or disease or the death;
the following provisions have effect:
(d) the person is taken to have been, or to be, receiving payments of compensation at a rate per fortnight determined by, or under the instructions of, the Commonwealth Actuary;
(e) the person is taken to have been, or to be, receiving those payments for the period of the person’s life determined by, or under the instructions of, the Commonwealth Actuary;
(f) the period referred to in paragraph (e) begins:
(i) on the day that lump sum compensation payment is made to that person; or
(ii) on the day the pension becomes payable to the person;
whichever is the later day.
Note: Pensions under this Part are payable in respect of the incapacity of a veteran from a war-caused injury or disease or in respect of the death of the veteran (see section 13).
Lump sum payment—Safety, Rehabilitation and Compensation Act (section 30)
“(3) If:
(a) a lump sum payment is made under section 30 of the Safety, Rehabilitation and Compensation Act 1988 to a person who is a veteran or a dependant of the veteran; and
(b) the payment is made in respect of the incapacity of the veteran from injury or disease or the death of the veteran; and
(c) the person is receiving, or is subsequently granted, a pension under this Part in respect of the incapacity from that injury or disease or the death;
the following provisions have effect:
(d) the person is taken to have been, or to be, receiving payments of compensation at a rate per fortnight determined by, or under the instructions of, the Commonwealth Actuary;
(e) the person is taken to have been, or to be, receiving those payments for the period until the person reaches 65;
(f) the period referred to in paragraph (e) begins:
(i) on the day that lump sum payment is made to the person; or
(ii) on the day the pension becomes payable to the person;
whichever is the later day.
Note: Pensions under this Part are payable in respect of the incapacity of a veteran from a war-caused injury or disease or in respect of the death of the veteran (see section 13).
Pension payable to one person
“(4) Subject to subsection (6), if:
(a) a person is taken to be in receipt of payments of compensation at a particular rate per fortnight under subsection (1), (2) or (3); and
(b) but for this subsection, pension referred to in paragraph (1)(b), (2)(b) or (3)(b) would be payable to the person at a particular rate per fortnight;
after the lump sum payment is made, the rate per fortnight of the pension is to be reduced by the rate per fortnight of compensation.
“(5) If, under subsection (4), the rate per fortnight of compensation is equal to or exceeds the rate per fortnight of pension, pension is not payable to the person.
Pension payable to 2 or more persons
“(6) If:
(a) a lump sum payment is made to a person or persons in respect of the incapacity of a veteran from injury or disease or the death of the veteran; and
(b) the person or persons are taken to be in receipt of compensation under subsection (1), (2) or (3); and
(c) apart from this subsection, pensions under this Part in respect of the incapacity of the veteran from that injury or disease, or that death, would be payable to 2 or more persons at particular rates per fortnight;
after the lump sum payment is made, the sum of those rates per fortnight of pensions is to be reduced by the rate per fortnight of compensation that the person is, or the sum of the rates per fortnight of compensation that the persons are, taken to be in receipt of.
Note: Subsections (8), (9) and (10) set out how the reduction is to be made.
“(7) If, under subsection (6), the rate or the sum of the rates per fortnight of compensation is equal to or exceeds the sum of the rates per fortnight of pensions, pensions are not payable to the persons.
How reduction is to be made
“(8) In giving effect to subsection (6), if:
(a) pensions are payable to 2 or more persons; and
(b) one pension is to be preferred to another under subsection (12);
the preferred pension is not to be reduced until the other pension ceases to be payable because its rate per fortnight is reduced to nil.
“(9) If:
(a) the rate of a pension or the rates of 2 or more pensions are reduced to nil under subsection (8); and
(b) there are 2 or more pensions that are not to be preferred to each other;
the reduction in the rate per fortnight for each of those pensions is to be worked out using the following formula:
where:
‘pension to be reduced’ is the rate per fortnight of the pension to be reduced;
‘pensions payable’ is the sum of the rates per fortnight of the pensions referred to in paragraph (b);
‘excess compensation payable’ is the rate per fortnight of compensation that is payable after the pension or pensions referred to in paragraph (a) are reduced to a nil rate.
“(10) If:
(a) pensions are payable to 2 or more persons; and
(b) subsections (8) and (9) do not apply;
the reduction in the rate per fortnight for each pension is to be worked out using the following formula:
where:
‘pension to be reduced’ is the rate per fortnight of the pension to be reduced;
‘total pensions payable’ is the sum of the rates per fortnight of pensions payable to the persons;
‘total compensation payable’ is the sum of the rates per fortnight of compensation that the persons are taken to be in receipt of.
“(11) If:
(a) an amount of damages payable to a veteran, or to a dependant of a veteran, is paid to the Commonwealth under section 30G or 30H; or
(b) the liability of the Commonwealth to pay damages to a veteran or to a dependant of a veteran, is, under section 30K, taken to have been discharged to the extent of a particular amount;
subsection (1) of this section applies to the veteran or the dependant as if pension commences to be payable, only after the veteran or dependant receives payments by way of instalments of pension equal to the amount referred to in paragraph (a) or (b).
Preferred pensions
“(12) For the purposes of this section:
(a) a pension payable under this Part to the veteran is to be preferred to such a pension payable to a dependant of the veteran; and
(b) a pension payable under this Part to the spouse of a veteran is to be preferred to such a pension payable to a child of the veteran; and
(c) a pension payable under this Part to the widow or widower of a deceased veteran is to be preferred to such a pension payable to a child of the veteran; and
(d) a pension payable under this Part to an older child of a veteran is to be preferred to such a pension payable to a younger child of the veteran.
“(13) For the purposes of this section, a payment by way of compensation made on behalf of, or for the benefit of, a person is taken to have been made to the person.
Periodic payment of compensation
“30D.(1) If:
(a) periodic payments of compensation are made to a person who is a veteran or a dependant of the veteran; and
(b) the compensation payments are made in respect of the incapacity of the veteran from injury or disease or the death of the veteran; and
(c) the person receives, or is subsequently granted, a pension under this Part in respect of the incapacity from that injury or disease or the death;
the rate per fortnight of the person’s pension that would, apart from this subsection, be payable to the person for the periodic payments period is to be reduced by the rate per fortnight of the periodic compensation.
Note 1: For ‘periodic payments period’ see subsection (10).
Note 2: Pensions under this Part are payable in respect of the incapacity of a veteran from a war-caused injury or disease or in respect of the death of the veteran (see section 13).
“(2) If, under subsection (1), the rate per fortnight of the periodic compensation is equal to or exceeds the rate per fortnight of pension, pension is not payable to the person.
Pension payable to 2 or more persons
“(3) If:
(a) periodic payments of compensation are made to a person or persons in respect of the incapacity of a veteran from injury or disease or the death of the veteran; and
(b) apart from this subsection, pensions under this Part in respect of the incapacity of the veteran from that injury or disease, or the death of the veteran, would be payable to 2 or more persons for the periodic payments period at particular rates per fortnight;
the sum of those rates per fortnight of pensions for the periodic payments period is to be reduced by the rate per fortnight of the periodic compensation or the sum of the rates per fortnight of the periodic compensation.
Note: Subsections (5), (6) and (7) set out how the reduction is to be made.
“(4) If, under subsection (3), the rate or the sum of the rates per fortnight of periodic compensation is equal to or exceeds the sum of the rates per fortnight of pensions, pensions are not payable to the persons.
How reduction is to be made
“(5) In giving effect to subsection (3), if:
(a) pensions are payable to 2 or more persons; and
(b) one pension is to be preferred to another under subsection (8);
the preferred pension is not to be reduced until the other pension ceases to be payable because its rate per fortnight is reduced to nil.
“(6) In giving effect to subsection (3), if:
(a) the rate of a pension or the rates of 2 or more pensions are reduced to nil under subsection (5); and
(b) there are 2 or more pensions that are not to be preferred to each other;
the reduction in the rate per fortnight for each of those pensions is to be worked out using the following formula:
where:
‘pension to be reduced’ is the rate per fortnight of the pension to be reduced;
‘pensions payable’ is the sum of the rates per fortnight of the pensions referred to in paragraph (b);
‘excess compensation payable’ is the rate per fortnight of periodic compensation that is payable after the pension or pensions referred to in paragraph (a) are reduced to a nil rate.
“(7) If:
(a) pensions are payable to 2 or more persons; and
(b) subsections (5) and (6) do not apply;
the reduction in the rate per fortnight for each pension is to be worked out using the following formula:
where:
‘pension to be reduced’ is the rate per fortnight of the pension to be reduced;
‘pensions payable’ is the sum of the rates per fortnight of pensions payable to the persons;
‘compensation payable’ is the sum of the rates per fortnight of periodic compensation that is payable to the persons.
Preferred pensions
“(8) For the purposes of this section:
(a) a pension payable under this Part to the veteran is to be preferred to such a pension payable to a dependant of the veteran; and
(b) a pension payable under this Part to the spouse of a veteran is to be preferred to such a pension payable to a child of the veteran; and
(c) a pension payable under this Part to the widow or widower of a veteran is to be preferred to such a pension payable to a child of the veteran; and
(d) a pension payable under this Part to an older child of a veteran is to be preferred to such a pension payable to a younger child of the veteran.
“(9) For the purposes of this section, a payment by way of compensation made on behalf of, or for the benefit of, a person is taken to have been made to the person.
“(10) In this section, ‘periodic payments period’ means:
(a) in relation to a series of periodic payments—the period in respect of which the payments are, or are to be made; and
(b) in relation to a payment of arrears of a series of periodic payments—the period in respect of which those periodic payments would have been made if they had not been made by way of an arrears payment.
Proceedings against third party
“30E. If:
(a) a pension is payable or has been paid under this Part in respect of:
(i) the incapacity of a veteran from a war-caused injury or disease; or
(ii) the death of a veteran; and
(b) a person other than the Commonwealth appears legally liable to pay damages in respect of the incapacity of the veteran from that injury or disease or the death of the veteran; and
(c) the veteran, a dependant of the veteran or a person on behalf of the dependant has:
(i) not instituted proceedings against the person for the recovery of damages for the incapacity or death; or
(ii) not properly prosecuted proceedings that have been instituted; or
(iii) discontinued proceedings that have been instituted;
the Commission may, by written notice, request the veteran or dependant:
(d) to institute proceedings or new proceedings against the person; or
(e) properly to prosecute proceedings against the person.
Failure to comply with Commission’s request made under section 30E
“30F.(1) If, within a reasonable time after a notice under section 30E is given to a veteran or a dependant of a veteran, the veteran or dependant:
(a) refuses or fails to institute proceedings; or
(b) discontinues proceedings that have been instituted;
the Commission may, on behalf of the veteran or dependant, institute proceedings or new proceedings against the person for recovery of damages in respect of the incapacity or death.
“(2) If, within a reasonable time after a notice is given, a veteran or a dependant of a veteran fails to prosecute properly proceedings that have been instituted, the Commission may take over the conduct of the proceedings.
“(3) If a veteran or a dependant of a veteran institutes proceedings under a notice but refuses or fails to prosecute the proceedings properly, the Commonwealth may take over the conduct of the proceedings.
Commonwealth liability to pay costs
“(4) The Commonwealth is liable to pay all the plaintiff’s costs of, or incidental to, the proceedings. The Commonwealth is not liable to pay costs that the plaintiff unreasonably incurs.
Commonwealth may settle etc. proceedings
“(5) If the Commonwealth:
(a) institutes proceedings; or
(b) takes over the conduct of the proceedings;
the Commonwealth may:
(c) settle the proceedings, with or without obtaining judgment; and
(d) if a favourable judgment is given in favour of the plaintiff—take such steps as are necessary to enforce that judgment.
Veteran or dependant of veteran must sign all documents relating to proceedings
“(6) The veteran, or a dependant of the veteran, must sign any document relevant to the proceedings, including settlement of the proceedings, that the Commonwealth requires the veteran or the dependant to sign.
“(7) If the veteran or the dependant fails to sign any such document, the court or tribunal in which the proceedings are being held may direct that the document be signed on his or her behalf by a person appointed by the court or tribunal for that purpose.
Payment of damages by third party to Commonwealth
“30G.(1) Subject to subsection (2), if:
(a) a pension is payable or has been paid under this Part in respect of:
(i) the incapacity of a veteran from a war-caused injury or disease; or
(ii) the death of the veteran; and
(b) a person other than the Commonwealth appears to be legally liable to pay damages in respect of the incapacity of the veteran from that injury or disease or the death of the veteran;
the Commission may, by written notice to the person, require the person to pay to the Commonwealth a specified amount of the damages.
Note: Damages in this section do not include certain amounts paid under the Safety, Rehabilitation and Compensation Act 1988 (see subsection 30B(3)).
“(2) The specified amount must not exceed the total amount of pension paid under this Part, up to the time the payment of damages is made to the Commonwealth, to the veteran or dependant in respect of the incapacity or death.
“(3) The person must comply with the notice if:
(a) the person agrees to pay damages to a veteran or dependant in respect of the incapacity or the death; or
(b) damages against the person are awarded to the veteran or dependant in proceedings instituted in respect of the incapacity or death.
Payment of damages by third party where agreement, or an award against the person, to pay damages has been made
“30H.(1) Subject to subsection (4), if:
(a) pension is payable or has been paid under this Part in respect of:
(i) the incapacity of a veteran from a war-caused injury or disease; or
(ii) the death of a veteran; and
(b) an amount of damages is payable by a person other than the Commonwealth in respect of the incapacity of the veteran from that injury or disease or the death of the veteran because:
(i) the person agreed to pay such damages; or
(ii) damages against the person were awarded to the veteran or dependant in proceedings instituted in respect of the incapacity or death;
the Commission may, by written notice to the person, require the person to pay to the Commonwealth a specified amount of the damages.
Note: Damages in this section do not include certain amounts paid under the Safety, Rehabilitation and Compensation Act 1988 (see subsection 30B(3)).
“(2) The specified amount must not exceed the total amount of pension paid under this Part, up to the time the payment of damages is made to the Commonwealth, to the veteran or dependant in respect of the incapacity or death.
“(3) The person must comply with the notice.
Effect of notice where damages already paid
“(4) If, before a notice under subsection (1) was received by a person, the person had paid to, or in respect of, the veteran or dependant the whole or any part of the damages to which the notice relates, then:
(a) if the whole of the damages had been paid—the notice has no force or effect; or
(b) if part of the damages had been paid—the specified amount of damages is the amount of damages that has not been paid.
Debt due to the Commonwealth
“30I. If a person fails to pay an amount to the Commonwealth under a notice under section 30G or 30H, the Commonwealth may recover the amount from the person as a debt due to the Commonwealth by action in a court of competent jurisdiction.
Discharge of liability
“30J. The payment of an amount to the Commonwealth under a notice under section 30G or 30H is, to the extent of the amount paid, a discharge of the liability of that person to the veteran or the dependant.
Discharge of liability of Commonwealth to pay damages
“30K. If:
(a) pension is payable, or has been paid, under this Part in respect of:
(i) the incapacity of a veteran from a war-caused injury or disease; or
(ii) the death of a veteran; and
(b) damages have been awarded against the Commonwealth:
(i) to a veteran in proceedings instituted to recover damages in respect of the incapacity of the veteran from that injury or disease; or
(ii) to a dependant of a deceased veteran in proceedings instituted to recover damages in respect of the death of the veteran; and
the liability of the Commonwealth to pay those damages (excluding any part of them that represents expenses incurred in medical or hospital treatment) is taken to have been discharged to the extent of the total of the amounts of the pension that have been paid to the veteran or the dependant.
Other payments of compensation
“30L. If:
(a) any pension has been paid under this Part in respect of:
(i) the incapacity of the veteran from war-caused injury or disease; or
(ii) the death of the veteran; and
(b) any compensation is paid:
(i) under the law of a country other than Australia; or
(ii) by, or under a scheme arranged by, an international organisation;
to, or in respect of:
(iii) a veteran in respect of the incapacity of the veteran from that injury or disease; or
(iv) a dependant of a deceased veteran in respect of the death of the veteran;
the Commonwealth may recover from the veteran or dependant, by action in a court of competent jurisdiction, an amount equal to the amount of compensation paid that does not exceed the total of the pension paid under this Part to the veteran or dependant.
Note: For ‘international organisation’ see subsection 30B(4).
Commission may require a statutory declaration
“30M. The Commission may, by notice in writing to a claimant or recipient of a pension under this Part, require the person to give the Commission, within a reasonable period specified in the notice, a statutory declaration stating whether any compensation:
(a) has been paid to, or in respect of, the person; or
(b) has been claimed by, or in respect of, the person;
under a law of a country other than Australia, or under a scheme arranged by an international organisation in respect of the same incapacity or death for which the person claims or receives a pension under this Part.
Note: For ‘international organisation’ see subsection 30B(4).
Failure to comply with statutory declaration requirement
“30N.(1) If a person refuses or fails to comply with a notice given under section 30M, the person’s right:
(a) to pension under this Part in respect of the incapacity or death to which the notice relates; and
(b) to institute or take any proceedings under this Act in relation to that pension or a claim for that pension;
is suspended until the statutory declaration has been given to the Commission.
“(2) If a person’s right to pension under this Part is suspended under subsection (1), the person is not entitled to be paid pension under this Part for the period of the suspension.
Overpayments of pension
“30P.(1) If:
(a) an amount of pension is payable or has been paid under this Part in respect of:
(i) the incapacity of the veteran from a war-caused injury or disease; or
(ii) the death of the veteran; and
(b) because of section 30C or 30D, that amount of pension was not payable to the veteran or dependant;
an amount equal to the amount of pension paid is recoverable from the veteran or dependant.
“(2) The amount may be recovered, either in whole or in part, by deduction from any amount of pension payable under this Part to the veteran or dependant in respect of the incapacity or death of the veteran.
“(3) Subsection (2) does not prevent the recovery of the amount in a manner other than the one provided for in that subsection. An amount is not to be recovered as provided and also in a manner that is not provided for in subsection (2).”.
Consequential amendments
19. The Principal Act is further amended as set out in Schedule 2.
PART 5—RETIREMENT VILLAGE DEFINITIONS
Retirement village definitions
20. Section 5M of the Principal Act is amended:
(a) by inserting after subsection (3) the following subsection:
“(3A) For the purposes of paragraph (3)(b), if accommodation in premises is primarily intended for persons who are a certain age that is more than 55 years, the accommodation in those premises is taken to be primarily intended for persons who are at least 55 years old.”;
(b) by adding at the end the following Note:
“Note: Subsection (3A) was inserted as a response to the decision of the Federal Court in Repatriation Commission v Clarke (unreported, VG73 of 1991).”.
PART 6 —DISPOSAL OF ASSETS
Assets test definitions
21. Section 5L of the Principal Act is amended by inserting after subsection (10) the following subsection:
Pre-pension year—disposal of assets
“(10A) A reference in sections 52FA and 52GA (disposal of assets) to a pre-pension year, in relation to a person who is claiming:
(a) a service pension; or
(b) a social security pension;
is a reference to the period of 12 months ending on the day that is the person’s provisional commencement day and each preceding period of 12 months.”.
Note: A disposition of assets that is more than 5 years old is disregarded (see section 52J).”.
Age service pension generally not payable before claim
22. Section 36B of the Principal Act is amended:
(a) by omitting subsection (1) and substituting the following subsections:
Provisional commencement day
“(1) An age service pension is not payable to a veteran before the veteran’s provisional commencement day.
“(1A) Subject to subsection (2), a veteran’s provisional commencement day is the day on which the veteran claims the age service pension.”;
(b) by omitting paragraph (2)(f) and substituting the following paragraph:
“(f) the veteran’s provisional commencement day is the day on which the initial claim was lodged.”.
Invalidity service pension generally not payable before claim
23. Section 37B of the Principal Act is amended:
(a) by omitting subsection (1) and substituting the following subsections:
Provisional commencement day
“(1) An invalidity service pension is not payable to a veteran before the veteran’s provisional commencement day.
“(1A) Subject to subsection (2), a veteran’s provisional commencement day is the day on which the veteran claims the invalidity service pension.”;
(b) by omitting paragraph (2)(f) and substituting the following paragraph:
“(f) the veteran’s provisional commencement day is the day on which the initial claim was lodged.”.
Partner service pension generally not payable before claim
24. Section 38B of the Principal Act is amended:
(a) by omitting subsection (1) and substituting the following subsections:
Provisional commencement day
“(1) A partner service pension is not payable to a person before the person’s provisional commencement day.
“(1A) Subject to subsection (2), a person’s provisional commencement day is the day on which the person claims the partner service pension.”;
(b) by omitting paragraph (2)(f) and substituting the following paragraph:
“(f) the person’s provisional commencement day is the day on which the initial claim was lodged.”.
Carer service pension generally not payable before claim
25. Section 39B of the Principal Act is amended:
(a) by omitting subsection (1) and substituting the following subsections:
Provisional commencement day
“(1) A carer service pension is not payable to a person before the person’s provisional commencement day.
“(1A) Subject to subsection (2), a person’s provisional commencement day is the day on which the person claims the carer service pension.”;
(b) by omitting paragraph (2)(f) and substituting the following paragraph:
“(f) the person’s provisional commencement day is the day on which the initial claim was lodged.”.
Treatment of transactions that constitute both a disposal of ordinary income and a disposal of assets
26. Section 48D of the Principal Act is amended:
(a) by inserting after subsection (1) the following subsection:
“(1A) If:
(a) this section applies; and
(b) an amount is not included in the value of the person’s assets under section 52FA or 52GA because of the disposition of the asset;
no amount is, for the purposes of sections 48B and 48C, to be included in the person’s ordinary income because of the disposition of ordinary income.”;
(b) by inserting after subsection (2) the following subsection:
“(2A) If:
(a) this section applies; and
(b) the amount that is included in the value of the person’s assets under section 52FA or 52GA because of the disposition of the asset is:
(i) if section 52GA applies—less than 50% of the amount of the disposition of the asset; or
(ii) if section 52FA applies—less than the amount of the disposition of the asset;
the amount to be included in the person’s ordinary income because of the disposition of ordinary income is to be worked out disregarding so much of the amount of the disposition of ordinary income as the Commission decides is attributable to the part of the amount of the disposition of the asset that is not included in the value of the person’s assets under section 52FA or 52GA.”.
Insertion of new section
27. After section 52F of the Principal Act the following section is inserted:
Disposal of assets in pre-pension years—not a member of a couple
“52FA.(1) Subject to subsection (2), if:
(a) a person is not a member of a couple when the person claims a service pension or a social security pension; and
(b) the person disposes of an asset of the person during a pre-pension year of the person; and
(c) the amount of that disposition, or the sum of that amount and of the amounts (if any) of other dispositions of assets previously made by the person during that pre-pension year, exceeds the disposal limit;
then, for the purposes of determining whether the pension is payable to the person, there is to be included in the value of the person’s assets for the period of 5 years that starts on the day on which the disposition took place:
(d) the amount by which the sum of the amount of the first-mentioned disposition of assets and of the amounts (if any) of other dispositions of assets previously made by the person during that pre-pension year exceeds the disposal limit; or
(e) the amount of the first-mentioned disposition;
whichever is the lesser amount.
Note 1: For ‘disposes of assets’ see section 52E.
Note 2: For ‘amount of disposition’ see section 52F.
Note 3: For the effect of a transaction that constitutes both a disposal of an asset and a disposal of ordinary income see section 48D.
Note 4: If a pension is payable to the person, section 52G operates to determine the rate of payment and section 52FA ceases to apply to the person.
“(2) If:
(a) a person disposes of an asset before 1 March 1991; and
(b) an amount (the ‘relevant amount’) is included in the value of the person’s assets under subsection (1) because of the disposition;
the amount that is to be included in that value under that subsection is to be reduced, on each anniversary of the day on which the disposition took place, by an amount equal to 10% of the relevant amount.
Note 1: For ‘disposes of assets’ see section 52E.
Note 2: For ‘amount of disposition’ see section 52F.
“(3) In this section:
‘disposal limit’ means:
(a) in relation to assets disposed of on or after 1 March 1986 and before 1 March 1991—$2,000; and
(b) in relation to assets disposed of on or after 1 March 1991—$10,000.”.
Insertion of new section
28. After section 52G of the Principal Act the following section is inserted:
Disposal of assets in pre-pension years—members of couples
“52GA.(1) Subject to subsections (2), (3), (4) and (5), if:
(a) a person disposes of an asset; and
(b) the person is a member of a couple when the person or the person’s partner claims a service pension or a social security pension; and
(c) the person disposes of the asset:
(i) during a pre-pension year of the person; or
(ii) if the person does not claim a service pension or a social security pension but the person’s partner claims such a pension—during a pre-pension year of the person’s partner; and
(d) the amount of that disposition, or the sum of that amount and the amounts (if any) of other dispositions of assets previously made by the person or the person’s partner during that pre-pension year, exceeds the disposal limit;
then, for the purposes of determining whether the pension is payable to the person:
(e) there is to be included in the value of the person’s assets for the period of 5 years that starts on the day on which the disposition took place:
(i) 50% of the amount by which the sum of the amount of the first-mentioned disposition and of the amounts (if any) of other dispositions of assets previously made by the person or the person’s partner during that pre-pension year exceeds the disposal limit; or
(ii) 50% of the amount of the first-mentioned disposition;
whichever is the lesser amount; and
(f) there is to be included in the value of the assets of the person’s partner for the period of 5 years that starts on the day on which the disposition took place:
(i) 50% of the amount by which the sum of the amount of the first-mentioned disposition and of the amounts (if any) of other dispositions of assets previously made by the person or the person’s partner during that pre-pension year exceeds the disposal limit; or
(ii) 50% of the amount of the first-mentioned disposition;
whichever is the lesser amount.
Note 1: For ‘disposes of assets’ see section 52E.
Note 2: For ‘amount of disposition’ see section 52F.
Note 3: For the effect of a transaction that constitutes both a disposal of an asset and a disposal of ordinary income see section 48D.
Note 4: If a pension is payable to the person, section 52H operates to determine the rate of payment and section 52GA ceases to apply to the person.
“(2) If:
(a) a person disposes of an asset before 1 March 1991; and
(b) an amount (the ‘relevant amount’) is included in the value of the person’s or the person’s partner’s assets under subsection (1) because of the disposition;
the amount that is to be included in that value under that subsection is to be reduced, on each anniversary of the day on which the disposition took place, by an amount equal to 10% of the relevant amount.
Note 1: For ‘disposes of assets’ see section 52E.
Note 2: For ‘amount of disposition’ see section 52F.
“(3) If:
(a) amounts are included under subsection (1) in the value of the assets of a person who is a member of a couple and in the value of the assets of the person’s partner because of a disposition of an asset by the person; and
(b) the person and the person’s partner cease to be members of the same couple;
any amount that was included in the value of the person’s former partner’s assets because of that disposition is to be included in the value of the person’s assets.
“(4) If:
(a) an amount is included under subsection (1) in the value of the assets of a person who is a member of a couple and in the value of the assets of the person’s partner because of a disposition of an asset by the person; and
(b) the person dies;
an amount is not to be included in the value of the assets of the person’s partner because of that disposition.
“(5) If:
(a) an amount is included under subsection (1) in the value of the assets of a person who is a member of a couple and in the value of the assets of the person’s partner because of a disposition of an asset by the person; and
(b) the partner dies;
any amount that would, if the partner had not died, be included in the value of the partner’s assets because of the disposition is to be included in the value of the person’s assets.
“(6) In this section:
‘disposal limit’ means:
(a) in relation to assets disposed of on or after 1 March 1986 and before 1 March 1991—$4,000; and
(b) in relation to assets disposed of on or after 1 March 1991—$10,000.”.
PART 7—PROVISION OF TAX FILE NUMBERS
Provision of tax file numbers
29. Section 128A of the Principal Act is amended by inserting after subsection (3A) the following subsections:
“(3B) If:
(a) a person’s income payment ceases to be paid because the person fails to comply with subsection (2) or (3) by a particular day; and
(b) subsection (2) or (3) is satisfied in relation to the person’s tax file number within the 3 month period that starts on that day;
then the income payment that would have been paid to the person during that period if the person had complied with the requirement in subsection (2) or (3) is to be paid to the person.
“(3C) If subsection (2) or (3) is satisfied in relation to the person’s tax file number after the 3 month period has ended the person’s income payment is to be paid from the first pension payday on which subsection (2) or (3) is satisfied.”.
PART 8—WITHDRAWAL OF CLAIMS
Repeal of section 35F and substitution of new sections
30. Section 35F of the Principal Act is repealed and the following sections are substituted:
Claim may be withdrawn
“35F.(1) A claimant for qualifying service or a person on behalf of a claimant may withdraw a claim that has not been determined.
“(2) A claim that is withdrawn is taken to have not been made.
“(3) A withdrawal may be made orally or in writing.
Written withdrawal of a claim
“35FA. A written withdrawal of a claim must be lodged at an office of the Department in Australia.
Oral withdrawal of a claim
“35FB. An oral withdrawal of a claim must be made to a person in an office of the Department in Australia.
Acknowledgment of oral withdrawal of a claim
“35FC. As soon as practicable after receiving an oral withdrawal of a claim, the Secretary must give the claimant an acknowledgment notice in writing stating that:
(a) an oral withdrawal of the claim was made; and
(b) the claimant, or a person on behalf of the claimant, may, within 28 days from the day the acknowledgment notice is given, request the Secretary to treat the withdrawal as if it had not been made.
Reactivating the withdrawn claim
“35FD. If, within 28 days from the day on which the Secretary gave the acknowledgment notice, a claimant, or a person on behalf of a claimant, requests the Secretary to treat the oral withdrawal of the claim as if it had not been made, the oral withdrawal is taken not to have been made.
Note: A request made under paragraph 35FC(b) has the effect of reactivating the claim. In particular, the commencement day of the claim stays the same.”.
Further amendments
31. The Principal Act is further amended as set out in Schedule 3.
PART 9—CANCELLATION OR SUSPENSION OF CARER SERVICE PENSION
Pension may be cancelled at pensioner’s request
32. Section 56J of the Principal Act is amended by omitting from subsection (1) “or partner service pension” and substituting “, partner service pension or carer service pension”.
Pension may be suspended if instalments not drawn
33. Section 56K of the Principal Act is amended by omitting “or partner service pension” and substituting “, partner service pension or carer service pension”.
PART 10—PENSION RATE REDUCTION
Insertion of new section
34. After section 56B of the Principal Act the following section is inserted:
Automatic rate reduction—recipient failing to inform Department of payment for remunerative work where earnings credit account balance available
“56BA. If:
(a) a person who is receiving a service pension is given a notice under section 54; and
(b) the notice requires the person to inform the Department or a specified officer of income for remunerative work undertaken by the person; and
(c) the person fails to notify the Department or specified officer of income of that kind in accordance with the notice; and
(d) the person has an earnings credit account balance for the purposes of Division 11 of Part III;
the pension becomes payable to the person at the reduced rate immediately after the day on which the person’s earnings credit account balance is reduced to nil.”.
PART 11—INCOME TEST DEFINITIONS
Income test definitions
35. Section 5H of the Principal Act is amended by inserting in paragraph (8)(xa) “or the New South Wales Medically-Acquired HIV Trust” after “Trust”.
PART 12—RECOVERY OF OVERPAYMENTS
Recovery of overpayments
36. Section 205 of the Principal Act is amended by omitting from paragraph (5)(b) “$50” and substituting “the amount by reference to which a class of debts is specified in a notice under subparagraph 206(1)(b)(ii)”.
PART 13—MINOR TECHNICAL AMENDMENTS
Amendments of other Acts
37. The Acts specified in Schedule 4 are amended as set out in that Schedule.
SCHEDULE 1 Section 8
AMENDMENTS RELATING TO SENIORS HEALTH CARD
PART 1—AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986
1. After subsection 175(2):
Insert:
“(2AA) If the Commission, under section 118ZU, affirms a decision of the Commission referred to in section 118ZS or sets it aside and substitutes another decision for it, a person may apply to the Administrative Appeals Tribunal for a review of the decision so affirmed or substituted.
2. Subsection 175(2A):
After “(2)” insert “or (2AA)”.
3. Paragraph 176(3)(a):
(a) After “(2)” insert “, (2AA)”.
(b) After “57E” insert “, 118ZX”.
4. Section 176:
Add at the end:
“(9) Despite subsection 43(1) of the Administrative Appeals Tribunal Act 1975, if the Administrative Appeals Tribunal:
(a) sets aside a decision that a person ceases to be entitled to a seniors health card; and
(b) the decision was one that was:
(i) affirmed by the Commission under section 118ZU; or
(ii) made by the Commission in substitution for a decision set aside under that section;
the Tribunal need not make another decision in substitution for the decision set aside by it.”.
5. Subsection 177(3):
Omit “or (8)”, substitute “, (8) or (9)”.
6. After subsection 177(5):
Insert:
“(5A) Subject to subsections (5B) and (5C), if the Administrative Appeals Tribunal, upon application made under subsection 175(2AA) for a review of a decision of the Commission under section 118ZU, determines that a person is entitled to a seniors health card, the determination takes effect from a date specified by the Tribunal.
SCHEDULE 1—continued
“(5B) If the application to the Administrative Appeals Tribunal is made within 3 months after the service on the applicant of a document setting out the terms of the decision of the Commission made under section 118ZU, the date specified by the Tribunal must not be earlier than the date from which, had the Commission determined that the person is entitled to a seniors health card, such a determination could have taken effect.
“(5C) If subsection (5B) does not apply to a person, the date specified by the Administrative Appeals Tribunal must not be earlier than the date on which the application under subsection 175(2AA) was made.”.
PART 2—AMENDMENTS OF OTHER ACTS
Hearing Services Act 1991
7. After paragraph 5(1)(ac):
Insert:
“(ad) a person who is the holder of a seniors health card within the meaning of the Veterans’ Entitlements Act 1986; or
Note: For ‘holder of a seniors health card’ see section 5PB of the Veterans’ Entitlements Act 1986.”.
National Health Act 1953
8. Subsection 84(1) (paragraph (ac) of the definition of “concessional beneficiary”):
After the paragraph insert:
“(ad) a person who is the holder of a seniors health card within the meaning of the Veterans’ Entitlements Act 1986; or
Note: For ‘holder of a seniors health card’ see section 5PB of the Veterans’ Entitlements Act 1986.”.
9. Subsection 84(1) (definition of “dependant”):
(a) Omit “and (6)”, substitute “, (6) and (7)”.
(b) Add at the end:
“(7) For the purposes of this Part, if:
(a) paragraph (ad) of the definition of ‘concessional beneficiary’ applies to a person (the ‘seniors health card holder’); and
(b) no other paragraph of the definition of ‘concessional beneficiary’ applies to the seniors health card holder;
SCHEDULE 1—continued
a person who, apart from this subsection, would be a dependant of the seniors health card holder is taken not to be a dependant of the seniors health card holder.
Note: A person who is the holder of a seniors health card within the meaning of the Veterans’ Entitlements Act 1986 is a person to whom paragraph (ad) of the definition of ‘concessional beneficiary’ applies.”.
Social Security Act 1991
10. Subsection 1061ZA(2):
Omit.
11. After section 1061ZB:
Insert:
Veterans’ Affairs card holder not entitled
“1061ZBA. If a person is the holder of a seniors health card within the meaning of the Veterans’ Entitlements Act, the person is not entitled to a seniors health card under this Act.”.
12. Section 1061ZI:
Omit “If”, substitute “Subject to section 1061ZBA, if”.
SCHEDULE 2 Section 19
AMENDMENTS RELATING TO COMPENSATION
1. Paragraph 22(5)(a):
After “26” insert “, 30C, 30D”.
2. Paragraph 22(5)(b):
After “79” insert “, 30P”.
3. Subsection 85(11):
After “26” insert “, 30C, 30D”.
4. Subsection 86(1):
Omit “or 30(3)”, substitute “, 30(3), 30C(2) or (4) or 30D(1) or (3)”.
5. Subparagraph 102(1)(b)(ii):
After “26” insert “, 30C or 30D”.
6. Paragraph 107(5)(a):
After “26” insert “, 30C or 30D”.
7. Paragraph 107(6)(a):
After “26” insert “, 30C or 30D”.
8. Subparagraph 108(8)(a)(iii):
(a) After “26” (first occurring) insert “, 30C or 30D”.
(b) After “26” (second occurring) insert “, 30C or 30D, as the case requires,”.
9. Paragraph 108(9)(b):
After “26” insert “, 30C or 30D”.
SCHEDULE 3 Section 31
AMENDMENTS RELATING TO WITHDRAWAL OF CLAIMS
1. Section 36J:
Repeal the section, substitute:
Claim may be withdrawn
“36J.(1) A claimant for age service pension or a person on behalf of a claimant may withdraw a claim that has not been determined.
“(2) A claim that is withdrawn is taken to have not been made.
“(3) A withdrawal may be made orally or in writing.
Written withdrawal of a claim
“36JA. A written withdrawal of a claim must be lodged at an office of the Department in Australia.
Oral withdrawal of a claim
“36JB. An oral withdrawal of a claim must be made to a person in an office of the Department in Australia.
Acknowledgment of oral withdrawal of a claim
“36JC. As soon as practicable after receiving an oral withdrawal of a claim, the Secretary must give the claimant an acknowledgment notice in writing stating that:
(a) an oral withdrawal of the claim was made; and
(b) the claimant, or a person on behalf of the claimant, may, within 28 days from the day the acknowledgment notice is given, request the Secretary to treat the withdrawal as if it had not been made.
Reactivating the withdrawn claim
“36JD. If, within 28 days from the day on which the Secretary gave the acknowledgment notice, a claimant, or a person on behalf of a claimant, requests the Secretary to treat the oral withdrawal of the claim as if it had not been made, the oral withdrawal is taken not to have been made.
Note: A request made under paragraph 36JC(b) has the effect of reactivating the claim. In particular, the commencement day of the claim stays the same.”.
2. Section 37J:
Repeal the section, substitute:
Claim may be withdrawn
“37J.(1) A claimant for invalidity service pension or a person on behalf of a claimant may withdraw a claim that has not been determined.
SCHEDULE 3—continued
“(2) A claim that is withdrawn is taken to have not been made.
“(3) A withdrawal may be made orally or in writing.
Written withdrawal of a claim
“37JA. A written withdrawal of a claim must be lodged at an office of the Department in Australia.
Oral withdrawal of a claim
“37JB. An oral withdrawal of a claim must be made to a person in an office of the Department in Australia.
Acknowledgment of oral withdrawal of a claim
“37JC. As soon as practicable after receiving an oral withdrawal of a claim, the Secretary must give the claimant an acknowledgment notice in writing stating that:
(a) an oral withdrawal of the claim was made; and
(b) the claimant, or a person on behalf of the claimant, may, within 28 days from the day the acknowledgment notice is given, request the Secretary to treat the withdrawal as if it had not been made.
Reactivating the withdrawn claim
“37JD. If, within 28 days from the day on which the Secretary gave the acknowledgment notice, a claimant, or a person on behalf of a claimant, requests the Secretary to treat the oral withdrawal of the claim as if it had not been made, the oral withdrawal is taken not to have been made.
Note: A request made under paragraph 37JC(b) has the effect of reactivating the claim. In particular, the commencement day of the claim stays the same.”.
3. Section 38J:
Repeal the section, substitute:
Claim may be withdrawn
“38J.(1) A claimant for partner service pension or a person on behalf of a claimant may withdraw a claim that has not been determined.
“(2) A claim that is withdrawn is taken to have not been made.
“(3) A withdrawal may be made orally or in writing.
Written withdrawal of a claim
“38JA. A written withdrawal of a claim must be lodged at an office of the Department in Australia.
SCHEDULE 3—continued
Oral withdrawal of a claim
“38JB. An oral withdrawal of a claim must be made to a person in an office of the Department in Australia.
Acknowledgment of oral withdrawal of a claim
“38JC. As soon as practicable after receiving an oral withdrawal of a claim, the Secretary must give the claimant an acknowledgment notice in writing stating that:
(a) an oral withdrawal of the claim was made; and
(b) the claimant, or a person on behalf of the claimant, may, within 28 days from the day the acknowledgment notice is given, request the Secretary to treat the withdrawal as if it had not been made.
Reactivating the withdrawn claim
“38JD. If, within 28 days from the day on which the Secretary gave the acknowledgment notice, a claimant, or a person on behalf of a claimant, requests the Secretary to treat the oral withdrawal of the claim as if it had not been made, the oral withdrawal is taken not to have been made.
Note: A request made under paragraph 38JC(b) has the effect of reactivating the claim. In particular, the commencement day of the claim stays the same.”.
4. Section 39J:
Repeal the section, substitute:
Claim may be withdrawn
“39J.(1) A claimant for carer service pension or a person on behalf of a claimant may withdraw a claim that has not been determined.
“(2) A claim that is withdrawn is taken to have not been made.
“(3) A withdrawal may be made orally or in writing.
Written withdrawal of a claim
“39JA. A written withdrawal of a claim must be lodged at an office of the Department in Australia.
Oral withdrawal of a claim
“39JB. An oral withdrawal of a claim must be made to a person in an office of the Department in Australia.
Acknowledgment of oral withdrawal of a claim
“39JC. As soon as practicable after receiving an oral withdrawal of a claim, the Secretary must give the claimant an acknowledgment notice in writing stating that:
SCHEDULE 3—continued
(a) an oral withdrawal of the claim was made; and
(b) the claimant, or a person on behalf of the claimant, may, within 28 days from the day the acknowledgment notice is given, request the Secretary to treat the withdrawal as if it had not been made.
Reactivating the withdrawn claim
“39JD. If, within 28 days from the day on which the Secretary gave the acknowledgment notice, a claimant, or a person on behalf of a claimant, requests the Secretary to treat the oral withdrawal of the claim as if it had not been made, the oral withdrawal is taken not to have been made.
Note: A request made under paragraph 39JC(b) has the effect of reactivating the claim. In particular, the commencement day of the claim stays the same.”.
SCHEDULE 4 Section 37
MINOR TECHNICAL AMENDMENTS
PART 1—AMENDMENTS OF THE VETERANS’
ENTITLEMENTS ACT 1986
1. Subsection 5(1) (Index):
Insert:
“Listed security 5J(1)”.
2. Subsection 5G(1):
Add at the end:
“Note 2: ‘Australian citizen’ is defined in the Australian Citizenship Act 1948.”.
3. Subsection 5H(1) (definition of “income from personal exertion”):
Omit the definition.
4. Subsection 5J(5):
Omit the subsection.
5. Section 41 (Service Pension Rate Calculator Where There Are No Dependent Children—point 41-C2A—Table C—item 3—column 3):
Omit “$2,600.00”, substitute “$1,300.00”.
6. Section 41 (Service Pension Rate Calculator Where There Are No Dependent Children—point 41-C2A—Table C—item 3—column 4):
Omit “$100.00”, substitute “$50.00”.
7. Section 41 (Service Pension Rate Calculator Where There Are No Dependent Children—point 41-C2A—Table C):
Add at the end:
“
| 4. | Member of illness separated or respite care couple | $1,560.00 | $60.00 |
”.
8. Section 41 (Service Pension Rate Calculator Where There Are No Dependent Children—point 41-C6—Table C-1):
Add at the end:
“
| 4. | Member of illness separated or | 3 × (Annual rent – $2,600) | $819.00 |
| | respite care couple | 8 | |
”.
SCHEDULE 4—continued
9. Section 41 (Service Pension Rate Calculator Where There Are No Dependent Children—point 41-C12):
Add at the end:
“RENT ASSISTANCE EXAMPLES
Example 1:
Facts:
Maurie is a single service pensioner without children. Maurie does not receive any disability pension and pays $120 per week rent.
Application:
Item 1 in Table C-1 applies to Maurie.
Rate A for Maurie is $3,510 calculated as follows:
| 3 × (yearly rent – yearly rent threshold) | = 3 × [($120 × 52) – $1,560] | = 3 × $4,680 | = $3,510 |
| 4 | 4 | 4 | |
Rate B for Maurie is $1,742.
As the maximum rate of rent assistance is the lesser of Rates A and B, Maurie’s rate of rent assistance is $1,742 per year. Maurie will receive $67.00 per fortnight.
Example 2:
Facts:
Trevor and Oona are members of a pensioner couple. They rent a house for $160 per week. Trevor receives 100% disability pension ($5,514.60 per year). Oona receives the wife’s component of disability pension ($210.60 per year).
Application:
Item 3 in Table C-1 applies to Trevor and Oona.
Rate A for Trevor is $2,145 calculated as follows:
| 3 × [($160 × 52)-$2,600] = | 3 × ($8,320-$2,600) | = 3 × $5,720 | = $17,160 | = $2,145 |
| 8 | 8 | 8 | 8 | |
Rate B for Trevor is $819.
As the lesser rate is $819, this is the maximum rent assistance that Trevor can receive. However, as both Trevor and Oona receive disability pension, the Rent Assistance Income Test in point 41-C10 applies.
Trevor’s disability pension income is:
| $5,514.00 + $210.60 | = $2,862.30 |
| 2 | |
Item 4 of Table C-2 applies. Trevor’s disability pension income excess is the disability pension income less the rent assistance free area:
$2,862.30 – $1,820.00 = $1,042.30
SCHEDULE 4—continued
The reduction in rent assistance is:
The rent assistance Trevor will receive per year is Rate B less amount of rent reduction:
$819.00 – $521.15 = $297.90 (rounded to the nearest 10 cents)
Trevor will receive $11.50 per fortnight.
The same calculation applies to Oona’s rate of rent assistance.”.
10. Section 41 (Service Pension Rate Calculator Where There Are No Dependent Children—point 41-F4):
Add at the end:
“Note 4: Items 2, 3 and 4 of Table F-2 apply to members of illness separated and respite care couples.”.
11. Section 42 (Service Pension Rate Calculator Where There Are Dependent Children—point 42-D2A—Table D—item 3—column 3):
Omit “$3,120.00”, substitute “$1,560.00”.
12. Section 42 (Service Pension Rate Calculator Where There Are Dependent Children—point 42-D2A—Table D—item 3—column 4):
Omit “$120.00”, substitute “$60.00”.
13. Section 42 (Service Pension Rate Calculator Where There Are Dependent Children—point 42-D2A—Table D):
Add at the end the following item:
“
| 4. | Member of illness separated or respite care
couple | $2,080.00 | $80.00 |
”.
14. Section 42 (Service Pension Rate Calculator Where There Are Dependent Children—point 42-D6—Table D-1):
Add at the end the following item:
“
| 4. | Member of illness separated or respite care couple | 3 × (Annual rent – $3,120)
8 | $956.80 | $1,092.00 |
| | | |
”.
15. Section 42 (Service Pension Rate Calculator Where There Are Dependent Children—point 42-D16):
Add at the end:
SCHEDULE 4—continued
“RENT ASSISTANCE EXAMPLES
Example 1:
Facts:
Brian is a service pensioner who is not a member of a couple, has one dependent child and does not receive a disability pension. Brian pays $120 per week rent for a flat.
Application:
Item 1 in Table C-1 applies to Brian.
Rate A for Brian is $3,210 calculated as follows:
| 3 × (annual rent-rent threshold)
4 | = 3 × [($120 × 52)-$2,080]
4 | = 3 × ($6,240-$2,080)
4 | = $3,120 |
Rate B for Brian is $1,913.60 i.e. (($63.00 + $10.60) × 26). The lesser rate is $1,913.60.
Brian will receive $73.60 per year.
Example 2:
Facts:
Graham and Katherine are members of a pensioner couple with 3 dependent children. They rent a house for $250 per week. Graham receives 100% disability pension ($5,514.60 per year). Katherine is a veteran in her own right and receives a 20% disability pension ($1,102.92 per year).
Application:
Item 3 of Table D-2 applies to them.
Rate A for Graham is $7,410.00 calculated as follows:
| 3 × [($250 × 52) – $3,120]
4 | = 3 × ($13,000 – $3,120)
4 | = 3 × $9,880
4 | = $29,640
4 | = $7,410 |
Rate B for Graham is $1,092.00 calculated as follows:
This is the maximum rate of rent assistance that Graham can receive, however as both Graham and Katherine receive disability pension, the disability pension rent test applies (see point 42-D10).
Graham’s disability pension income is:
| $5,514.60 + $1,102.92
2 | = $6,617.52
2 | = | $3,308.80 |
| | (rounded to the nearest 10 cents) |
Item D-3 of Table D-2 applies. Graham’s disability pension excess is:
$3,308.80 – [$1,820.00 +($312.00 × 3)] = $552.80
SCHEDULE 4—continued
Excess disability pension reduction is calculated at 50 cents in the dollar:
The assistance that Graham receives per year is Rate B less amount of rent reduction:
$1,092.00 – $276.40 = $815.60
Graham receives $31.40 per fortnight.
The same calculation applies to Katherine’s rate of rent assistance.”.
16. Section 42 (Service Pension Rate Calculator Where There Are Dependent Children—point 42-E11):
Add at the end:
“Note 7: Items 2, 3, 4 and 5 of Table E-2 apply to members of illness separated and respite care couples.”.
17. Section 44 (Service Pension Rate Calculator for Widows, Widowers and Non-illness Separated Spouses—point 44-C2A—Table C—item 3—column 3):
Omit “$2,600.00”, substitute “$1,300.00”.
18. Section 44 (Service Pension Rate Calculator for Widows, Widowers and Non-illness Separated Spouses—point 44-C2A—Table C—item 3—column 4):
Omit “$100.00”, substitute “$50.00”.
19. Section 44 (Service Pension Rate Calculator for Widows, Widowers and Non-illness Separated Spouses—point 44-C2A—Table C—item 4—column 3):
Omit “$3,120.00”, substitute “$1,560.00”.
20. Section 44 (Service Pension Rate Calculator for Widows, Widowers and Non-illness Separated Spouses—point 44-C2A—Table C—item 4—column 4):
Omit “$120.00”, substitute “$60.00”.
21. Section 44 (Service Pension Rate Calculator for Widows, Widowers and Non-illness Separated Spouses—point 44-C2A—Table C—item 5—column 3):
Omit “$3,120.00”, substitute “$1,560.00”.
22. Section 44 (Service Pension Rate Calculator for Widows, Widowers and Non-illness Separated Spouses—point 44-C2A—Table C—item 5—column 4):
Omit “$120.00”, substitute “$60.00”.
SCHEDULE 4—continued
23. Subsection 46A(2):
Omit.
24. Subsection 46B(1) (Notes):
Omit all the Notes, substitute:
“Note 1: For ‘assessable period’ see subsection 5J(1).
Note 2: For ‘realising an investment’ see subsections 5J(7) and (8).”.
25. Section 46T:
Add at the end:
“Note: A pensioner may appeal to the Commissioner of Taxation regarding the assessment of the relevant number used in calculating income from annuities (see section 52B).”.
26. Paragraph 52H(1)(d):
Omit “for the period of 5 years that starts on the day on which the disposition takes place of the person’s partner”, substitute “of the person’s partner for the period of 5 years that starts on the day on which the disposition takes place”.
27. Subsection 56G(2C):
After “day” (third occurring) insert “after the day”.
28. Subsection 58A(3):
After “cents” (first occurring) insert “, but is not a multiple of 10 cents”.
29. Subparagraph 70(9)(b)(ii):
Omit “veteran”, substitute “member”.
30. Schedule 2:
Omit “Subsection 5(1) and paragraph 5(3)(c)”, substitute “Section 5B”.
PART 2—AMENDMENT OF THE DEFENCE SERVICE HOMES ACT 1918
31. Paragraph 4AAA(5A)(d):
Omit “certificate of eligibility”, substitute “certificate of entitlement”.
NOTE
Veterans’ Entitlements Act 1986
1. No. 27, 1986, as amended. For previous amendments see No. 106, 1986 (as amended by Nos. 78 and 130, 1987); No. 130, 1986; No. 78, 1987 (as amended by No. 164, 1989); No. 88, 1987; No. 130, 1987 (as amended by No. 133, 1988); No. 13, 1988 (as amended by No. 83, 1989; and No. 73, 1991); Nos. 35 and 79, 1988; No. 134, 1988 (as amended by No. 164, 1989); No. 135, 1988 (as amended by Nos. 84 and 164, 1989; and No. 73, 1991); Nos. 59, 83, 84, 93 and 163, 1989; No. 164, 1989 (as amended by No. 56, 1990; and No. 73, 1991); Nos. 59, 83, 84, 93, 163, 1989; No. 164, 1989 (as amended by No. 56, 1990; and No. 73, 1991); Nos. 56, 84 and 119, 1990; No. 2, 1991 (as amended by No. 73, 1991); No. 72, 1991; No. 73, 1991 (as amended by No. 74, 1991); Nos. 74, 122, 175 and 208, 1991; Nos. 12, 51, 70, 94 and 228, 1992; and No. 27, 1993.
NOTE ABOUT SECTION HEADING IN THE VETERANS’ ENTITLEMENTS ACT 1986
1. On 1 July 1994, the heading to section 177 of the Principal Act is omitted and the following heading is substituted:
“Effective dates of certain determinations relating to payment of pension or seniors health card”.
[Minister’s second reading speech made in—
House of Representatives on 11 May 1994
Senate on 12 May 1994]