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Veterans' Entitlements Act 1986

  • - C2013C00063
  • In force - Superseded Version
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Act No. 27 of 1986 as amended, taking into account amendments up to Personal Liability for Corporate Fault Reform Act 2012
An Act to provide for the payment of pensions and other benefits to, and to provide medical and other treatment for, veterans and certain other persons, and for other purposes
Administered by: Veterans' Affairs
Registered 29 Jan 2013
Start Date 01 Jan 2013
End Date 19 Mar 2013
Table of contents.

Veterans’ Entitlements Act 1986

Act No. 27 of 1986 as amended

This compilation was prepared on 21 January 2013
taking into account amendments up to Act No. 180 of 2012

Volume 1 includes:     Table of Contents
                                    Sections 1–45UY

The text of any of those amendments not in force
on that date is appended in the Notes section

The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section

Volume 2 includes:      Table of Contents
                                    Sections 46–93ZG

Volume 3 includes:      Table of Contents
                                    Sections 94–216

Volume 4 includes:      Table of Contents
                                    Schedules 1, 2, 2A and 3–6
                                    Note 1
                                    Table of Acts
                                    Act Notes
                                    Table of Amendments
                                    Repeal Table
                                    Notes 2–5
                                    Table A

Prepared by the Office of Parliamentary Counsel, Canberra

  

  

  


Contents

Part I—Preliminary                                                                                                              1

1............ Short title [see Note 1]........................................................................ 1

2............ Commencement [see Note 1].............................................................. 1

3............ Repeal................................................................................................. 1

4............ Extension of Act to external Territories............................................... 1

4A......... Application of the Criminal Code....................................................... 1

5............ Index of definitions............................................................................. 2

5A......... Repatriation Commission definitions................................................ 10

5AB...... Repatriation Medical Authority and Specialist Medical Review Council definitions 10

5B......... War and operational area related definitions.................................... 11

5C......... Eligibility related definitions.............................................................. 13

5D......... Injury/disease definitions.................................................................. 21

5E.......... Family relationships definitions—couples........................................ 23

5F.......... Family relationships definitions—children....................................... 28

5G......... Australian residence definitions........................................................ 30

5GA...... Pension supplement rate definitions.................................................. 31

5H......... Income test definitions [see Note 3].................................................. 33

5I........... Special Rate Disability Pension reduction amount............................ 48

5J.......... Financial assets and income streams definitions.............................. 48

5JA....... Meaning of asset‑test exempt income stream—lifetime income streams  58

5JB........ Meaning of asset‑test exempt income stream—life expectancy income streams      66

5JBA..... Meaning of asset‑test exempt income stream—market‑linked income streams        74

5JC........ Family law affected income streams.................................................. 80

5JD....... Asset‑tested status of secondary FLA income streams..................... 80

5K......... Maintenance income definitions........................................................ 81

5L.......... Assets test definitions........................................................................ 84

5LA....... Principal home definition for the purpose of the assets test.............. 89

5M........ Retirement village definitions............................................................ 95

5MA..... Granny flat definitions...................................................................... 96

5MB...... Sale leaseback definitions................................................................. 97

5MC...... Special residence and resident definitions......................................... 99

5N......... Rent definitions............................................................................... 100

5NA...... Indexation and rate adjustment definitions..................................... 104

5NB...... Compensation recovery definitions................................................. 105

5NC...... In care definitions........................................................................... 110

5P.......... Retirement assistance for farmers definitions................................. 111

5PAA.... Retirement assistance for sugarcane farmers definitions............... 115

5PB....... Seniors health card definitions....................................................... 120

5PC....... Exempt funeral investments............................................................ 120

5Q......... General definitions.......................................................................... 121

5QAA... Equal amounts................................................................................. 132

5QA...... Pension age for veterans................................................................. 133

5QB...... Pension age for persons other than veterans................................... 133

5R......... Determinations having interpretative effect..................................... 135

5T.......... Lodgment of claims, applications, requests and documents............ 139

5U......... Notes............................................................................................... 141

6............ Operational service—general outline............................................... 141

6A......... Operational service—world wars.................................................... 142

6B......... Operational service—Australian mariners....................................... 145

6C......... Operational service—post World War 2 service in operational areas 146

6D......... Operational service—other post World War 2 service.................... 147

6DA...... Operational service—minesweeping and bomb/mine clearance service 149

6DB...... Operational service—service on submarine special operations from 1978 to 1992  149

6E.......... Operational service—Korean demilitarised zone and Vietnam........ 150

6F.......... Operational service—warlike and non‑warlike service................... 150

7............ Eligible war service......................................................................... 150

7A......... Qualifying service........................................................................... 152

8............ War‑caused death............................................................................ 155

9............ War‑caused injuries or diseases...................................................... 157

9A......... Most war‑caused injuries, diseases and deaths no longer covered by this Act         160

10.......... Child of a veteran or other person................................................... 161

10A....... Parent of a person........................................................................... 162

11.......... Dependants..................................................................................... 162

11AA.... Reinstated pensioner....................................................................... 163

11A....... De facto relationships...................................................................... 163

11B....... Domicile.......................................................................................... 164

Part II—Pensions, other than service pensions, for veterans and their dependants         166

Division 1—Interpretation                                                                                     166

12.......... Interpretation................................................................................... 166

Division 2—Eligibility for pension                                                                     167

13.......... Eligibility for pension...................................................................... 167

Division 2A—Verification determinations for reinstated pensioners 173

13AA.... Application for verification determination....................................... 173

13AB.... Who may apply............................................................................... 173

13AC.... Application for verification determination....................................... 173

13AE..... Investigation by the Secretary......................................................... 173

13AF..... Duties of Commission in relation to application for verification determination        174

13AG.... Verification determination............................................................... 174

Division 3—Claims for pensions and applications for increases in pensions      177

13A....... Certain dependants to be automatically paid pension....................... 177

13B....... Reinstated pensioners to be automatically paid pension.................. 178

14.......... Claim for pension............................................................................ 178

15.......... Application for increase in pension................................................. 180

16.......... Who may make claim or application................................................ 181

17.......... Investigation by the Secretary......................................................... 182

18.......... Duties of Commission in relation to pensions................................. 183

19.......... Determination of claims and applications........................................ 183

19A....... Refusal to undergo medical examination etc. may delay consideration of claim or application 187

20.......... Dates of effect that may be specified in respect of grant of claim for pension          188

21.......... Dates of effect that may be specified in respect of grant of applications under section 15        190

Division 4—Rates of pensions payable to veterans                                  192

21A....... Determination of degree of incapacity............................................. 192

22.......... General rate of pension and extreme disablement adjustment.......... 192

23.......... Intermediate rate of pension............................................................ 193

24.......... Special rate of pension.................................................................... 197

24A....... Continuation of rates of certain pensions........................................ 200

25.......... Temporary payment at special rate.................................................. 201

25A....... Offsetting certain SRCA payments................................................. 201

26.......... Reduction in rate of pension in certain cases................................... 202

27.......... Increased rates of pension in certain cases...................................... 203

27A....... Calculation of arrears of pension..................................................... 205

27B....... Certain decisions under section 27A reviewable under the Social Security Act       207

28.......... Capacity to undertake remunerative work....................................... 207

29.......... Guide to the assessment of rates of veterans’ pensions................... 208

Division 5—Rates of pensions payable to dependants of deceased veteran        210

30.......... Rates at which pensions are payable to dependants......................... 210

Division 5A—Effect of certain compensation payments on rates of pension      212

30A....... This Division does not apply to certain payments........................... 212

30B....... Interpretation................................................................................... 212

30C....... Lump sum compensation payment.................................................. 213

30D....... Periodic payment of compensation.................................................. 219

30E........ Proceedings against third party....................................................... 222

30F........ Failure to comply with Commission’s request made under section 30E.. 222

30G....... Payment of damages by third party to Commonwealth................... 223

30H....... Payment of damages by third party where agreement, or an award against the person, to pay damages has been made........................................................................................................ 224

30I......... Debt due to the Commonwealth...................................................... 225

30J........ Discharge of liability....................................................................... 225

30K....... Discharge of liability of Commonwealth to pay damages............... 226

30L........ Other payments of compensation.................................................... 226

30M...... Commission may require a statutory declaration............................. 227

30N....... Failure to comply with statutory declaration requirement................ 227

30P........ Overpayments of pension............................................................... 228

Division 6—Reviews of pensions by Commission                                      229

31.......... Review by Commission.................................................................. 229

Division 7—Procedural                                                                                           234

32.......... Commission may take evidence...................................................... 234

33.......... Withdrawal of claim or application.................................................. 236

34.......... Reasons for decisions to be given................................................... 237

Part III—Service pensions                                                                                            239

Division 1—General features                                                                               239

35.......... Order and structure of Divisions..................................................... 239

35A....... Eligibility for and payability of service pension.............................. 239

Division 2—Claim for qualifying service                                                       240

Subdivision A—Claim                                                                                           240

35B....... Need for a claim.............................................................................. 240

35C....... Who can claim?............................................................................... 240

35D....... Making a claim................................................................................ 241

35F........ Claim may be withdrawn................................................................ 241

35FB..... Oral withdrawal of a claim.............................................................. 241

35FC..... Acknowledgment of oral withdrawal of a claim.............................. 241

35FD..... Reactivating the withdrawn claim.................................................... 242

Subdivision B—Investigation of claim                                                             242

35G....... Secretary to investigate claim and submit it to Commission............ 242

Subdivision C—Consideration and determination of claim                       242

35H....... Duties of Commission in relation to claim...................................... 242

35J........ Determination of qualifying service to be proof of qualifying service 244

Division 3—Age service pension                                                                         245

Subdivision A—Eligibility for and payability of age service pension     245

36.......... Eligibility for age service pension................................................... 245

36A....... Age service pension may not be payable in some circumstances.... 246

36B....... Age service pension generally not payable before claim................. 247

36C....... Restrictions on dual pensions.......................................................... 247

36CA.... Exclusion of certain participants in ABSTUDY Scheme................ 248

Subdivision B—Claim for age service pension                                              248

36D....... Need for a claim.............................................................................. 248

36E........ Who can claim?............................................................................... 248

36F........ Making a claim................................................................................ 248

36H....... Claimant must be Australian resident and in Australia.................... 249

36J........ Claim may be withdrawn................................................................ 249

36JB...... Oral withdrawal of a claim.............................................................. 250

36JC...... Acknowledgment of oral withdrawal of a claim.............................. 250

36JD..... Reactivating the withdrawn claim.................................................... 250

36JE...... Secretary may require claimant or claimant’s partner to take action to obtain a comparable foreign pension            250

Subdivision C—Investigation of claim                                                             252

36K....... Secretary to investigate claim and submit it to Commission............ 252

Subdivision D—Consideration and determination of claim                       252

36L........ Duties of Commission in relation to claim...................................... 252

36M...... Date of effect of determination........................................................ 254

Subdivision E—Rate of age service pension                                                   254

36N....... How to work out the rate of a veteran’s age service pension.......... 254

Division 4—Invalidity service pension                                                            255

Subdivision A—Eligibility for and payability of invalidity service pension  255

37.......... Eligibility for invalidity service pension.......................................... 255

37AA.... Commission must determine circumstances in which persons are permanently incapacitated for work   256

37AAA. Continued eligibility for invalidity service pension if person undertaking a rehabilitation program etc.   257

37A....... Invalidity service pension may not be payable in some circumstances 257

37B....... Invalidity service pension generally not payable before claim......... 258

37C....... Restrictions on dual pensions.......................................................... 258

37CA.... Exclusion of certain participants in ABSTUDY Scheme................ 259

Subdivision B—Claim for invalidity service pension                                   259

37D....... Need for a claim.............................................................................. 259

37E........ Who can claim?............................................................................... 259

37F........ Making a claim................................................................................ 260

37H....... Claimant must be Australian resident and in Australia.................... 260

37J........ Claim may be withdrawn................................................................ 260

37JB...... Oral withdrawal of a claim.............................................................. 261

37JC...... Acknowledgment of oral withdrawal of a claim.............................. 261

37JD..... Reactivating the withdrawn claim.................................................... 261

37JE...... Secretary may require claimant or claimant’s partner to take action to obtain a comparable foreign pension            261

Subdivision C—Investigation of claim                                                             262

37K....... Secretary to investigate claim and submit it to Commission............ 262

Subdivision D—Consideration and determination of claim                       263

37L........ Duties of Commission in relation to claim...................................... 263

37M...... Date of effect of determination........................................................ 265

Subdivision E—Rate of invalidity service pension                                        265

37N....... How to work out the rate of a veteran’s invalidity service pension. 265

Division 5—Partner service pension                                                                266

Subdivision A—Eligibility for and payability of partner service pension 266

38.......... Eligibility for partner service pension.............................................. 266

38AA.... Disclosure or use of personal information relevant to partner service pension eligibility         271

38A....... Partner service pension may not be payable in some circumstances 272

38B....... Partner service pension generally not payable before claim............. 273

38C....... Restrictions on dual pensions.......................................................... 274

38CA.... Exclusion of certain participants in ABSTUDY Scheme................ 274

Subdivision B—Claim for partner service pension                                       275

38D....... Need for a claim.............................................................................. 275

38E........ Who can claim?............................................................................... 275

38F........ Making a claim................................................................................ 275

38H....... Claimant must be Australian resident and in Australia.................... 276

38J........ Claim may be withdrawn................................................................ 276

38JB...... Oral withdrawal of a claim.............................................................. 276

38JC...... Acknowledgment of oral withdrawal of a claim.............................. 277

38JD..... Reactivating the withdrawn claim.................................................... 277

38JE...... Secretary may require claimant or claimant’s partner to take action to obtain a comparable foreign pension            277

Subdivision C—Investigation of claim                                                             278

38K....... Secretary to investigate claim and submit it to Commission............ 278

Subdivision D—Consideration and determination of claim                       279

38L........ Duties of Commission in relation to claim...................................... 279

38M...... Date of effect of determination........................................................ 280

Subdivision E—Rate of partner service pension                                            281

38N....... How to work out the rate of a person’s partner service pension..... 281

Part IIIA—Income support supplement                                                              282

Division 1—Eligibility for and payability of income support supplement             282

45A....... Eligibility for income support supplement....................................... 282

45B....... Income support supplement may not be payable in some circumstances  282

45C....... Income support supplement generally not payable before claim...... 283

45D....... Restrictions on dual pensions.......................................................... 283

45DA.... Exclusion of certain participants in ABSTUDY Scheme................ 284

45E........ Election to continue to receive social security pension.................... 285

45F........ Claim for social security pension by war widower or war widow pending at commencement of Part     285

45G....... Review of decision rejecting a claim by war widower or war widow for social security pension pending at commencement of Part.................................................................... 286

45H....... Review of decision concerning rate of social security pension paid to war widower or war widow pending at commencement of Part.................................................................... 287

Division 2—Claim for income support supplement                                  290

45I......... Need for a proper claim................................................................... 290

45J........ Who can claim?............................................................................... 290

45K....... Making a claim................................................................................ 290

45M...... Claimant must be Australian resident and in Australia.................... 291

45N....... Not necessary to make a claim in certain circumstances.................. 291

45NA.... Claim may be withdrawn................................................................ 293

45NC.... Oral withdrawal of a claim.............................................................. 293

45ND.... Acknowledgment of oral withdrawal of a claim.............................. 293

45NE..... Reactivating the withdrawn claim.................................................... 294

45NF..... Secretary may require claimant or claimant’s partner to take action to obtain a comparable foreign pension            294

Division 3—Investigation of claim                                                                     296

45P........ Secretary to investigate claim and submit it to Commission............ 296

Division 4—Consideration and determination of claim                         297

45Q....... Duties of Commission in relation to claim...................................... 297

45QA.... Commission must determine circumstances in which persons are permanently incapacitated for work   299

45R....... Date of effect of determination........................................................ 299

Division 5—Rate of income support supplement                                       301

45S........ How to work out the rate of income support supplement................ 301

Part IIIAB—Pension bonus                                                                                         302

Division 1—Introduction                                                                                        302

45T........ Simplified outline............................................................................ 302

45TA..... Definitions...................................................................................... 303

45TB..... Special date of eligibility for a designated pension.......................... 304

Division 2—Qualification for pension bonus                                                306

45TC..... Qualification for pension bonus...................................................... 306

Division 3—Registration as a member of the pension bonus scheme 309

Subdivision A—Membership of the pension bonus scheme                         309

45TD..... Application for registration............................................................. 309

45TE..... Making an application..................................................................... 309

45TF..... Relevant information....................................................................... 309

45TH..... Timing of application and registration............................................. 310

45TI...... Registration..................................................................................... 312

45TJ...... Duration of membership................................................................. 313

45TK..... Cancellation of membership............................................................ 313

45TL..... Application for registration is not to be treated as a claim............... 314

Subdivision B—Classification of membership of the pension bonus scheme  314

45TM.... Accruing membership..................................................................... 314

45TN..... Non‑accruing membership—preclusion periods............................. 314

45TO..... Non‑accruing membership—Commission’s discretion................... 315

45TP..... Continuity of accruing membership is not broken by a period of non‑accruing membership   315

45TQ..... Post‑70/75 membership.................................................................. 316

Division 4—Accrual of bonus periods                                                             317

45TR..... Accrual of bonus periods................................................................ 317

Division 5—Passing the work test                                                                      319

Subdivision A—The work test                                                                             319

45TS..... Work test—full‑year period............................................................ 319

45TT..... Work test—part‑year period............................................................ 320

45TU..... Commission’s discretion to treat gainful work outside Australia as gainful work in Australia                321

Subdivision B—Gainful work                                                                             321

45TV..... Gainful work—basic rule................................................................ 321

45TW.... Commission’s discretion to treat activity as gainful work............... 322

45TX..... Irregular, infrequent and minor absences from a workplace count as gainful work  322

45TY..... Management of family financial investments does not count as gainful work          322

45TZ..... Domestic duties in relation to a person’s place of residence do not count as gainful work       323

45U....... Evidentiary certificate...................................................................... 324

Subdivision C—Record‑keeping requirements                                               326

45UA.... Record‑keeping requirements.......................................................... 326

Division 6—Amount of pension bonus                                                             329

45UB.... How to calculate the amount of pension bonus............................... 329

45UC.... Qualifying bonus periods................................................................ 329

45UD.... Overall qualifying period................................................................ 330

45UE..... Pension multiple.............................................................................. 330

45UF..... Annual pension rate........................................................................ 331

45UG.... Amount of pension bonus............................................................... 333

45UH.... Annual notional single pension rate................................................ 335

45UI...... Annual notional partnered pension rate........................................... 338

45UIA... Apportioned amount....................................................................... 342

45UIB... Top up of pension bonus for increased rate of designated pension. 343

45UIC... Top up of pension bonus in specified circumstances...................... 344

Division 7—Claim for pension bonus                                                               346

45UJ..... Need for a claim.............................................................................. 346

45UK.... Proper claim.................................................................................... 346

45UL..... Lodgment period for claim.............................................................. 348

45UM... Withdrawal of claim........................................................................ 351

Division 8—Determination of claim                                                                  353

45UN.... Secretary to investigate claim and submit it to Commission............ 353

45UO.... Commission to determine claim...................................................... 353

45UP..... Grant of claim................................................................................. 353

Division 9—Payment of pension bonus                                                           354

45UQ.... Payment of pension bonus.............................................................. 354

45UR.... Payment of bonus after death.......................................................... 354

Division 10—Protection of pension bonus                                                     357

45US..... Pension bonus to be absolutely inalienable..................................... 357

Division 11—Preclusion periods                                                                         358

45UT..... Disposal preclusion period—dispositions before 1 July 2002........ 358

45UTA.. Disposal preclusion period—dispositions on or after 1 July 2002.. 359

45UU.... Carer preclusion period................................................................... 359

Division 11A—Pension bonus bereavement payment                             360

45UUA. Qualification for pension bonus bereavement payment................... 360

45UUB. Amount of pension bonus bereavement payment............................ 360

45UUC. Definition of PBBP employment income......................................... 360

45UUD. Need for a claim for pension bonus bereavement payment............. 361

45UUE.. Proper claim.................................................................................... 361

45UUF.. Lodgment period for claim.............................................................. 362

45UUG. Withdrawal of claim........................................................................ 362

45UUH. Secretary to investigate claim and submit it to Commission............ 362

45UUI... Commission to determine claim...................................................... 363

45UUJ.. Grant of claim................................................................................. 363

45UUK. Payment of pension bonus bereavement payment........................... 363

45UUL.. Payment of pension bonus bereavement payment after death.......... 363

Division 12—Modification of this Part in relation to certain persons previously qualified for age pension under social security law                                                              365

45UV.... Persons to whom this Division applies........................................... 365

45UW... Commission may request the provision of information................... 365

45UX.... Commission may determine whether periods occurring before becoming a war widow/war widower—pensioner are bonus periods under the social security law.................................... 366

45UY.... Modification of provisions of this Part in respect of persons to whom this Division applies   368


An Act to provide for the payment of pensions and other benefits to, and to provide medical and other treatment for, veterans and certain other persons, and for other purposes

  

Part IPreliminary

  

1  Short title [see Note 1]

                         This Act may be cited as the Veterans’ Entitlements Act 1986.

2  Commencement [see Note 1]

                   This Act shall come into operation on a date to be fixed by Proclamation.

3  Repeal

             (1)  The Acts specified in Parts I, II, III, IV and V of Schedule 1 are repealed.

             (2)  The Acts specified in column 1 of Part VI of Schedule 1 are amended as set out in columns 2 and 3 of that Schedule.

4  Extension of Act to external Territories

                   This Act extends to the external Territories.

4A  Application of the Criminal Code

                   Chapter 2 of the Criminal Code applies to all offences against this Act.

Note:          Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

5  Index of definitions

                   Each expression listed in the Index below is defined, for the purposes of this Act, in the provision listed in the Index opposite that expression.

Note:    the Index does not contain every defined expression used in the Act. It contains every defined expression used in Part III and some defined expressions used elsewhere.

INDEX

Aboriginal study assistance scheme

5F(1)

accommodation bond

5L(1)

accommodation charge

5L(1)

account

5Q(1)

acting commissioner

5A

Acting Deputy President

5A

Acting President

5A

actual market exchange rate

5Q(1)

actual value

5MC(4)

adjusted income

5H(1)

adjusted income reduced rate

52ZAAA(1)

adopted child

5F(1)

advance payment eligible amount

5Q(1)

aged care resident

5NC(5)

allied country

5C(1)

allied mariner

5C(1)

allied veteran

5C(1)

allotted for duty

5B(2)

amount of rent paid or payable

5N(6), (7)

approved deposit fund

5J(1)

approved exchange trading system

5H(11)

approved Guide to the Assessment of Rates of Veterans’ Pensions

5Q(1)

approved Treatment Principles

5Q(1)

asset

5L(1)

assets reduced rate

52ZAAA(1)

asset‑tested income stream (long term)

5J(1)

asset‑tested income stream (short term)

5J(1)

asset‑test exempt income stream

5JA and 5JB

ATO small superannuation account

5J(1)

Australia

5Q(1)

Australian mariner

5C(1)

Australian resident

5G(1)

austudy payment

5Q(1)

available money

5H(1)

average weekly earnings

5NB(1)

bank

5Q(1)

bereavement period

53H

blinded in an eye

5D(3)

Board

5Q(1)

board

5N(1)

British nuclear test defence service

5Q(1A), 68(1), 69B(2), (3), (4) and (5)

campaign medal

7A(2)

capitalised maintenance income

5K(1)

cash maintenance

5K(1)

Chairperson

5AB(1)

child

5F(1)

child of veteran or other person

10

child support

5K(1)

clean energy advance

5Q(1)

clean energy bonus

5Q(1)

clean energy payment

5Q(1)

clean energy underlying payment

5Q(1)

combined couple rate of minimum pension supplement

5GA(2)

combined couple rate of pension supplement

5GA(1)

commencement day

5J(1)

Commission

5A

commissioner

5A

Commonwealth country

5C(1)

Commonwealth veteran

5C(1)

comparable foreign pension

5Q(1)

compensation

5NB(2)

compensation affected pension

5NB(1)

compensation part

5NB(7), (8)

compensation payer

5NB(1)

continuous full‑time service

5C(1)

Convener

5AB(1)

councillor

5AB(1)

couple

5E(2), (3), (4)

CTPA

5Q(1)

current figure

5NA(1)

decision

5Q(1)

deductible amount

5J(1)

defence‑caused injury, defence‑caused disease

5D(2)

Defence Force

5C(1)

defence force established by a Commonwealth country

5C(1)

defence force established by an allied country

5C(1), (3)

Defence Minister

5Q(1)

defence service

5Q(1A), 68(1)

deferred annuity

5J(1)

deferred payment amount

5MB(6), (7), (8)

defined benefit income stream

5J(1E)

dependant

11

dependent child

5F(1)

deposit money

5H(1)

deprived asset

5J(2B)

Deputy President

5A

disability expenses maintenance

5K(5)

disability pension

5Q(1)

disease

5D(1)

dispose of assets

52E

dispose of real assets

52ZAAA(1)

disposes of ordinary income

5H(1), 48

domestic payment

5H(3)

domiciled

5Q(1)

earned, derived or received

5H(2)

eligible civilian

5C(1)

eligible descendant

5P(1)

eligible former partner of a qualifying farmer

5P(2)

eligible former partner of a qualifying sugarcane farmer

5PAA(1)

eligible interest

5PAA(1)

eligible war service

7

EMEP residence

5Q(1)

enemy

5C(1)

entry contribution

52M

essential medical equipment payment

5Q(1)

event that gives rise to an entitlement to compensation

5NB(11)

exchange trading system

5H(10)

exempt funeral investment

5Q(1)

exempt lump sum

5H(12)

Family Assistance Act

5Q(1)

family law affected income stream

5JC

family member

5L(1)

family tax benefit

5F(1)

farm

5P(1)

farm enterprise

5P(1)

financial asset

5J(1)

financial institution

5Q(1)

financial investment

5J(1)

fishing operations

5L(1)

fishing vessel

5C(1)

foreign exchange period

5Q(1)

foreign superannuation fund

5L(1)

foreign superannuation pension

5L(1)

forest operations

5L(1)

former refugee

5C

friendly society

5J(1)

FTB child

5F(1)

general rate

5Q(1)

governing rules

5J(1)

government‑in‑exile

5C(1)

Government rent

5N(1)

granny flat interest

5MA(2)

granny flat resident

5MA(3)

greater amount

5QAA

greatest amount

5QAA

guaranteed amount

52ZAAA(1)

hazardous service

5Q(1A), 68(1), 120(7)

higher amount

5QAA

highest amount

5QAA

holder of a seniors health card

5PB(1)

home equity conversion agreement

5H(1)

illness separated couple

5R(5)

immediate family member

5Q(1)

in a care situation

5NC(2)

incapacity from a defence‑caused injury, a defence‑caused disease

5D(2)

incapacity from a war‑caused injury, a war‑caused disease

5D(2)

incentive allowance

5Q(1)

income

5H(1)

income amount

5H(1)

income reduced rate

52ZAAA(1)

income stream

5J(1)

Income Tax Assessment Act

5Q(1)

income year

5Q(1)

index number

5NA(1)

individual residence contribution

52M(1C)

ineligible property owner

5N(1)

initial payment amount

5MB(4), (5)

injury

5D(1)

in‑kind housing maintenance

5K(1)

in respite care

5NC(8)

investment

5J(6), (6A)

Investor

5J(1)

joint ownership

5Q(1)

least amount

5QAA

lesser amount

5QAA

life expectancy

5J(1)

listed security

5J(1)

loan

5J(2), (2A)

lower amount

5QAA

lowest amount

5QAA

maintained child

5K(1)

maintenance

5K(1)

maintenance agreement

5K(1)

maintenance income

5K(1)

managed investment

5J(1A), (1B), (1C)

maximum Part A rate of family tax benefit

5F(1)

maximum payment rate

52ZAAA(1)

medical equipment

5Q(1)

member

5AB(1)

member of a couple

5E(2), (3), (4)

member of an ordinary couple with different principal homes

5M(2)

member of a Peacekeeping Force

5Q(1A), 68(1)

member of a unit of the Defence Force

5C(1)

member of the Defence Force

5C(1), (2)

member of the Forces

5Q(1A), 68(1)

member of the Interim Forces

5C(1)

Military Rehabilitation and Compensation Act Education and Training Scheme

5Q(1)

Military Rehabilitation and Compensation Commission

5Q(1)

minimum pension supplement amount

5GA(3)

MRCA

5Q(1)

MRCA commencement date

5Q(1)

non‑illness separated spouse

5E(1)

non‑warlike service

5C(1)

operational area

5B(1)

operational service

6 to 6F

ordinary income

5H(1)

organisation representing veterans

5Q(1)

original family law affected income stream

5JC

parent

5F(1), 10A

participating in the pension loans scheme

52ZAAA(3)

partner

5E(1)

partnered

5E(5)

partnered (partner getting benefit)

5E(5)

partnered (partner getting neither pension nor benefit)

5E(5)

partnered (partner getting pension)

5E(5)

partnered (partner getting pension or benefit)

5E(5)

peacekeeping service

5Q(1A), 68(1)

pension

5Q(1)

pension age

5QA, 5QB

pension bonus

5Q(1)

pension payday

5Q(1)

pension period

5Q(1)

pension supplement amount

5Q(1)

pension supplement basic amount

5GA(4)

pension year

5L(9)

periodic payments period

5NB(1)

period of hostilities

5B(1)

personally providing community‑based care

5NC(4)

person with medical needs

5Q(1)

physically present in a remote area

5Q(2), (3)

port

5Q(1)

potential compensation payer

5NB(1)

President

5A

primary FLA income stream

5JC

primary producer

5L(1)

primary production

5L(1)

principal beneficiary

5Q(1)

principal home

5LA

prohibited relationship

5E(6), (7)

property owner

5L(4)

proprietary company

5P(1)

public unit trust

5J(1)

purchase price

5J(1)

qualifying age

5Q(1)

qualifying farmer

5P(3) and (4)

qualifying interest

5P(5) and (6)

qualifying service

5C(1), 7A

qualifying sugarcane farmer

5PAA(1)

quarterly pension supplement

5Q(1)

RASF closing day

5PAA(1)

RASF commencement day

5PAA(1)

Rate Calculator

5Q(1)

real assets

52ZAAA(1)

reasonable security of tenure

5LA(10)

receives compensation

5NB(10)

receiving community‑based care

5NC(3)

recoverable amount

205(8)

refugee

5C

registered medical practitioner

5AB(1)

regular care child

5F(1)

reinstated pensioner

11AA

relates to service

5Q(1B) and (1C)

relevant farm asset

5P(1)

relevant number

5J(1)

relevant State land law

5P(1)

relevant sugarcane farm asset

5PAA(1)

remote area

5Q(1)

remunerative work

5Q(1)

rent

5N

Repatriation Private Patient Principles

5Q(1)

residential care charge

5N(1)

residual capital value

5J(1)

respite care couple

5R(6)

retirement age

5Q(1)

retirement savings account

5J(1)

retirement village

5M(3), (4)

retirement village resident

5M(5)

return

5J(1)

Review Council

5AB(1)

sale leaseback agreement

5MB(2), (3)

sale leaseback home

5MB(9)

sale leaseback resident

5MB(10), (11)

secondary FLA income stream

5JC

Secretary

5Q(1)

seniors supplement

5Q(1)

service pension

5Q(1)

service pensioner

5Q(1)

sibling

5Q(1)

Social Security Act

5Q(1)

social security benefit

5Q(1)

social security payment

5Q(1)

social security pension

5Q(1)

sound medical‑scientific evidence

5AB(2)

special disability trust

5Q(1)

special maintenance income

5K(1)

special mission

5C(1)

special residence

5MC(2)

special resident

5MC(3)

step‑child

5F(1)

step‑parent

5F(1)

sugarcane farm

5PAA(1)

sugarcane farm enterprise

5PAA(1)

superannuation benefit

5J(1)

superannuation contributions surcharge

5J(1)

superannuation fund

5J(1)

tax‑exempt pension supplement

5GA(5)

tax file number

5Q(1)

tax year

5Q(1)

tobacco product

5Q(1)

total net value

5PAA(1)

transfer

5P(7), (8), (9), (10) and (11)

transfer (of sugarcane farms and sugarcane farm assets)

5PAA(1)

unit of the Defence Force

5C(1)

unlisted public security

5J(1)

unrealisable asset

5L(11), (12)

use

5Q(1)

value

5L(2), (3), (3A)

veteran

5C(1)

war‑caused death

8

war‑caused disease

5D(2), 9

war‑caused injury

5D(2), 9

war‑caused injury, war‑caused disease

5D(2)

warlike service

5C(1)

war to which this Act applies

5B(1)

war widow

5E(1)

war widower

5E(1)

war widow/war widower—pensioner

5Q(1)

wholly dependent partner

5E(1)

widow

5E(1)

widower

5E(1)

World War 1

5B(1), (3)

World War 2

5B(1), (3)

youth allowance

5Q(1)

5A  Repatriation Commission definitions

                   In this Act, unless the contrary intention appears:

acting commissioner means a person who is acting as a commissioner because of an appointment under section 191.

Acting Deputy President means a commissioner or acting commissioner who is acting as Deputy President because of an appointment under section 192.

Acting President means a commissioner or acting commissioner who is acting as President because of an appointment under section 192 or 193.

Commission means the Repatriation Commission continued in existence by section 179.

commissioner means a person holding an office of commissioner because of an appointment under section 182.

Deputy President means the Deputy President of the Commission.

President means the President of the Commission.

5AB  Repatriation Medical Authority and Specialist Medical Review Council definitions

             (1)  In this Act, unless the contrary intention appears:

Chairperson means the Chairperson of the Repatriation Medical Authority.

Convener means the Convener of the Review Council.

councillor means the Convener or any other person holding office as a member of the Review Council.

member means the Chairperson or any other person holding office as a member of the Repatriation Medical Authority.

registered medical practitioner means a person registered or licensed as a medical practitioner under a law of a State or Territory but does not include a person so registered or licensed:

                     (a)  whose registration, or licence to practice, as a medical practitioner in any State or Territory has been suspended, or cancelled, following an inquiry relating to his or her conduct; and

                     (b)  who has not, after that suspension or cancellation, again been authorised to register or practise as a medical practitioner in that State or Territory.

Review Council means the Specialist Medical Review Council established by section 196V.

sound medical‑scientific evidence, in relation to a particular kind of injury, disease or death, has the meaning given by subsection (2).

             (2)  Information about a particular kind of injury, disease or death is taken to be sound medical‑scientific evidence if:

                     (a)  the information:

                              (i)  is consistent with material relating to medical science that has been published in a medical or scientific publication and has been, in the opinion of the Repatriation Medical Authority, subjected to a peer review process; or

                             (ii)  in accordance with generally accepted medical practice, would serve as the basis for the diagnosis and management of a medical condition; and

                     (b)  in the case of information about how that kind of injury, disease or death may be caused—meets the applicable criteria for assessing causation currently applied in the field of epidemiology.

5B  War and operational area related definitions

             (1)  In this Act, unless the contrary intention appears:

allotted for duty in an operational area has the meaning given by subsection (2).

operational area means an area described in column 1 of Schedule 2 during the period specified in column 2 of Schedule 2 opposite to the description of the area in column 1.

period of hostilities means:

                     (a)  World War 1 from its commencement on 4 August 1914 to 11 November 1918 (both included); or

                     (b)  World War 2 from its commencement on 3 September 1939 to 29 October 1945 (both included); or

                     (c)  the period of hostilities in respect of Korea from 27 June 1950 to 19 April 1956 (both included); or

                     (d)  the period of hostilities in respect of Malaya from 29 June 1950 to 31 August 1957 (both included); or

                     (e)  the period of hostilities in respect of war‑like operations in operational areas from 31 July 1962 to 11 January 1973 (both included).

war to which this Act applies means World War 1 or World War 2.

World War 1 means:

                     (a)  the war that commenced on 4 August 1914; and

                     (b)  any other war in which the Crown became engaged after 4 August 1914 and before 11 November 1918.

World War 2 means:

                     (a)  the war that commenced on 3 September 1939; and

                     (b)  any other war in which the Crown became engaged after 3 September 1939 and before 3 September 1945.

Allotted for duty

             (2)  A reference in this Act to a person, or a unit of the Defence Force, that was allotted for duty in an operational area is a reference:

                     (a)  in the case of duty that was carried out in an operational area described in item 1, 2, 3, 4, 5, 6, 7 or 8 of Schedule 2 (in column 1)—to a person, or unit of the Defence Force, that is allotted for duty in the area (whether retrospectively or otherwise) by written instrument issued by the Defence Force for use by the Commission in determining a person’s eligibility for entitlements under this Act; or

                     (b)  in the case of duty that was carried out in an operational area described in item 3A, 3B, 9, 10, 11, 12, 13, 14 or 15 of Schedule 2 (in column 1)—to a person, or unit of the Defence Force, that is allotted for duty in the area (whether retrospectively or otherwise) by written instrument signed by the Vice Chief of the Defence Force for use by the Commission in determining a person’s eligibility for entitlements under this Act; or

                     (c)  to a person, or unit of the Defence Force, that is, by written instrument signed by the Defence Minister, taken to have been allotted for duty in an operational area described in item 4 or 8 in Schedule 2 (in column 1).

End of World War 1 and 2

             (3)  For the purposes of this Act:

                     (a)  World War 1 is taken to have ended on 1 September 1921; and

                     (b)  World War 2 is taken to have ended on 28 April 1952.

Note 1:    1 September 1921 is the date fixed by Proclamation under the Termination of the Present War (Definition) Act 1919.

Note 2:    28 April 1952 is the date on which the Treaty of Peace with Japan came into force.

5C  Eligibility related definitions

             (1)  In this Act, unless the contrary intention appears:

allied country means any country (not being Australia or a Commonwealth country):

                     (a)  that was, at the relevant time, at war with the enemy; or

                     (b)  the forces of which were, at the relevant time, engaged in an operational area against forces against which the forces of the Commonwealth were engaged in that area;

and includes:

                     (c)  a state, province or other territory that is one of 2 or more territories that together form, or formed at the relevant time, a discrete part of such a country; and

                     (d)  a place that is, or was at the relevant time, a territory, dependency or colony (however described) of such a country.

allied mariner means a person who:

                     (a)  was during the period of World War 2 from its commencement to and including 29 October 1945:

                              (i)  a master, officer or seaman employed under agreement, or an apprentice employed under indenture, in sea‑going service on a ship that was engaged in trading; or

                             (ii)  a master, officer, seaman or apprentice employed in a lighthouse tender or pilot ship; or

                            (iii)  employed as a pilot; or

                            (iv)  a master, officer, seaman or apprentice employed in sea‑going service on a ship (being a hospital ship, troop transport, supply ship, tug, cable ship, salvage ship, dredge, fishing vessel or fisheries investigation vessel) that was operated by, or on behalf of, a foreign country; and

                     (b)  was at any time during the course of that employment during the period referred to in paragraph (a) on a ship that was:

                              (i)  operating from a port in Australia or from a port in a Commonwealth country or an allied country; or

                             (ii)  engaged in trading with Australia or with a Commonwealth country or an allied country; or

                            (iii)  engaged in providing assistance or support to the Defence Force, or to the forces, or any part of the forces, of a Commonwealth country or an allied country; or

                            (iv)  engaged in providing assistance or support to Australia or to a Commonwealth country or an allied country;

but does not include:

                     (c)  an Australian mariner; or

                     (d)  a person who has, at any time, been employed by a foreign country that was, at that time, at war with Australia; or

                     (e)  a person who has, at any time, been employed:

                              (i)  on a ship that operated to, or was operating from, a port in a country that was, at that time, at war with Australia; or

                             (ii)  on a ship that was engaged in trading with a country that was, at that time, at war with Australia; or

                            (iii)  on a ship that was engaged in providing assistance or support to the enemy or to a country that was, at that time, at war with Australia.

allied veteran means a person:

                     (a)  who has been appointed or enlisted as a member of the defence force established by an allied country; and

                     (b)  who has rendered continuous full‑time service as such a member during a period of hostilities;

but does not include a person who has served at any time:

                     (c)  in the forces of a country that was, at that time, at war with Australia, or in forces engaged in supporting or assisting the forces of such a country; or

                     (d)  in forces that were, at that time, engaged in war‑like operations against the Naval, Military or Air Forces of Australia.

Australian mariner means a person who was, during the period of World War 2 from its commencement to and including 29 October 1945:

                     (a)  a master, officer or seaman employed under agreement, or an apprentice employed under indenture, in sea‑going service on a ship registered in Australia that was engaged in trading between a port in a State or Territory and any other port; or

                     (b)  a master, officer or seaman employed under agreement, or an apprentice employed under indenture, in sea‑going service on a ship registered outside Australia who was, or whose dependants were, resident in Australia for at least 12 months immediately before he or she entered into the agreement or indenture; or

                     (c)  a master, officer, seaman or apprentice employed on a lighthouse tender, or pilot ship of the Commonwealth or of a State; or

                     (d)  a pilot employed or licensed by Australia or a State or by an authority constituted by or under a law of the Commonwealth or of a State; or

                     (e)  a master, officer, seaman or apprentice employed in sea‑going service on a ship owned in Australia and operating from an Australian port, being a hospital ship, troop transport, supply ship, tug, cable ship, salvage ship, dredge, fishing vessel or fisheries investigation vessel; or

                      (f)  a member or employee of the Commonwealth Salvage Board engaged in sea‑going service under the direction of that Board; or

                     (g)  a master, officer, seaman or apprentice employed in sea‑going service on a ship registered in New Zealand who the Commission is satisfied was engaged in Australia and is not entitled to compensation under a law of a Commonwealth country providing for the payment of pensions and other payments to seamen who suffered death or disablement as a result of World War 2.

Commonwealth country means a country (other than Australia) that is, or was at the relevant time, a part of the Dominions of the Crown, and includes:

                     (a)  a state, province or other territory that is one of 2 or more territories that together form, or formed at the relevant time, a discrete part of such a country; and

                     (b)  a place that is, or was at the relevant time, a territory, dependency or colony (however described) of a part of such a country.

Commonwealth veteran means a person who rendered continuous full‑time service as a member of:

                     (a)  the naval, military or air forces; or

                     (b)  the nursing or auxiliary services of the naval, military or air forces; or

                     (c)  the women’s branch of the naval, military or air forces;

of a Commonwealth country during a period of hostilities.

continuous full‑time service means:

                     (a)  in relation to a member of the Defence Force:

                              (i)  service in the Naval Forces of the Commonwealth of the kind known as continuous full‑time naval service; or

                             (ii)  service in the Military Forces of the Commonwealth of the kind known as continuous full‑time military service; or

                            (iii)  service in the Air Force of the Commonwealth of the kind known as continuous full‑time air force service; or

                     (b)  in relation to a member of the naval, military or air forces of a Commonwealth country or an allied country—service in those forces of a kind similar to a kind of service referred to in subparagraph (a)(i), (ii) or (iii).

Note:    see also subsection 5R(1).

Defence Force has the same meaning as in the Defence Act 1903.

defence force established by a Commonwealth country means:

                     (a)  the naval, military or air forces of the country; or

                     (b)  the nursing and auxiliary services of the naval, military or air forces of the country; or

                     (c)  the women’s branch of the naval, military or air forces of the country.

defence force established by an allied country means:

                     (a)  the regular naval, military or air forces; and

                     (b)  the nursing or auxiliary services of the regular naval, military or air forces; and

                     (c)  the women’s branch of the regular naval, military or air forces;

raised by an allied country and operated by the country with regular military‑like lines of command, that is to say, raised and operated in such a manner that the members of those forces and services:

                     (d)  were formally appointed to, or enlisted in, those forces or services; and

                     (e)  were required to wear uniforms or insignia distinguishing them as members of those forces or services; and

                      (f)  were required to carry arms openly; and

                     (g)  were subject to the rules and conventions of warfare.

Note 1:       for extended meaning of this term in relation to a government‑in‑exile, see subsection (3).

Note 2:       for an extended meaning of this term in relation to an allied veteran see subsection 5R(2).

eligible civilian means a person:

                     (a)  who was killed, or detained by the enemy, during World War 2; and

                     (b)  who was, at the time the person was killed or first detained:

                              (i)  a British subject; and

                             (ii)  a resident, but not an indigenous inhabitant, of the Territory of Papua or the Territory of New Guinea; and

                     (c)  who was not, at that time:

                              (i)  rendering service as a member of the Defence Force; or

                             (ii)  employed by the Commonwealth on a special mission outside Australia.

enemy means:

                     (a)  in relation to World War 1 or World War 2—the naval, military or air forces, or any part of the naval, military or air forces, of a State at war with the Crown during that war; and

                     (b)  in relation to service in, or a period of hostilities in respect of, an operational area—the naval, military or air forces against which the Naval, Military or Air Forces of the Commonwealth were engaged in that operational area; and

                     (c)  persons assisting any of those forces.

fishing vessel means a ship employed in connection with the occupation of sea fishing for profit.

former refugee means a person who was a refugee but does not include a person who ceased to be a refugee because his or her entry permit or visa (as the case may be) was cancelled.

government‑in‑exile, in relation to an allied country, includes a person, or group of persons, claiming to represent, or administer, the country or a part of the country or the people of the country.

member of a unit of the Defence Force means:

                     (a)  a member of the Defence Force; or

                     (b)  another person who is:

                              (i)  a member of the unit; or

                             (ii)  attached to the unit; or

                            (iii)  appointed for continuous full‑time service with the unit.

Note:          see also subsection 5R(1).

member of the Defence Force includes a person appointed for continuous full‑time service with a unit of the Defence Force.

member of the Interim Forces means a person who:

                     (a)  enlisted or re‑engaged in, or was appointed or re‑appointed to, the Defence Force for continuous full‑time service for a term of not more than 2 years; or

                     (b)  was appointed for continuous full‑time service with a unit of the Defence Force for a term of not more than 2 years;

on or after 1 July 1947 and before 1 July 1949.

non‑warlike service means service in the Defence Force of a kind determined in writing by the Defence Minister to be non‑warlike service.

operational service has the meaning given by sections 6 to 6F.

qualifying service has the meaning given in section 7A.

refugee has the meaning given by subsection (4).

special mission means a mission that, in the opinion of the Commission, was of special assistance to the Commonwealth in the prosecution of a war to which this Act applies.

unit of the Defence Force means a body, contingent or detachment of the Defence Force.

veteran means:

                     (a)  a person (including a deceased person):

                              (i)  who is, because of section 7, taken to have rendered eligible war service; or

                             (ii)  in respect of whom a pension is, or pensions are, payable under subsection 13(6); and

                     (b)  in Parts III and VIIC also includes a person who is:

                              (i)  a Commonwealth veteran; or

                             (ii)  an allied veteran; or

                            (iv)  an allied mariner.

Note:          Commonwealth veteran, allied veteran and allied mariner are defined in this subsection.

warlike service means service in the Defence Force of a kind determined in writing by the Defence Minister to be warlike service.

Army Medical Corps Nursing Service

             (2)  For the purposes of this Act, a member of the Army Medical Corps Nursing Service who:

                     (a)  rendered service during World War 1, either within or outside Australia; and

                     (b)  rendered the service as such a member in accordance with an acceptance or appointment by the Director‑General of Medical Services for service outside Australia;

is taken to have been serving as a member of the Defence Force while rendering that service.

Defence force of government‑in‑exile

             (3)  In relation to any period during which there was a government‑in‑exile in relation to an allied country, defence force established by an allied country includes:

                     (a)  the regular naval, military or air forces; and

                     (b)  the nursing or auxiliary services of the regular naval, military or air forces; and

                     (c)  the women’s branch of the regular naval, military or air forces;

raised by that government‑in‑exile and operated by it with regular military‑like lines of command, that is to say, raised and operated in such a manner that the members of those forces and services:

                     (d)  were formally appointed to, or enlisted in, those forces or services; and

                     (e)  were required to wear uniforms or insignia distinguishing them as members of those forces or services; and

                      (f)  were required to carry arms openly; and

                     (g)  were subject to the rules and conventions of warfare.

Note:          for an extended meaning of the defence force of a government‑in‑exile in relation to an allied veteran see subsection 5R(2).

Refugee

             (4)  For the purposes of Part III, a person is a refugee if the person:

                     (a)  is taken, under the Migration Reform (Transitional Provisions) Regulations, to be the holder of a transitional (permanent) visa because the person was, immediately before 1 September 1994, the holder of:

                              (i)  a visa or entry permit that fell within Division 1.3—Group 1.3 (Permanent resident (refugee and humanitarian) (offshore)) in Part 1 of Schedule 1 to the Migration (1993) Regulations as then in force; or

                             (ii)  a visa or entry permit that fell within Division 1.5—Group 1.5 (Permanent resident (refugee and humanitarian) (on‑shore)) in Part 1 of Schedule 1 to the Migration (1993) Regulations as then in force; or

                     (b)  was, immediately before 1 February 1993, the holder of a visa or entry permit of a class prescribed under the Migration Regulations as then in force that corresponds to a visa or entry permit referred to in subparagraph (a)(i) or (ii); or

                     (c)  is the holder of:

                              (i)  a permanent protection visa; or

                             (ii)  a permanent visa of a class referred to in Schedule 2A; or

                            (iii)  a permanent visa of a class referred to in a declaration of the Minister under subsection (5) that is in force.

Declaration of class of visas

             (5)  If:

                     (a)  after the commencement of this subsection, a class of permanent visas (other than a class referred to in Schedule 2A) is prescribed by regulations made for the purposes of section 31 of the Migration Act 1958; and

                     (b)  the Minister is of the view that a person holding a visa of that class should be regarded as a refugee for the purposes of Part III;

the Minister may, by legislative instrument, declare that class of visas to be a class of visas for the purposes of subparagraph (4)(c)(iii).

5D  Injury/disease definitions

             (1)  In this Act, unless the contrary intention appears:

blinded in an eye has the meaning given by subsection (3).

disease means:

                     (a)  any physical or mental ailment, disorder, defect or morbid condition (whether of sudden onset or gradual development); or

                     (b)  the recurrence of such an ailment, disorder, defect or morbid condition;

but does not include:

                     (c)  the aggravation of such an ailment, disorder, defect or morbid condition; or

                     (d)  a temporary departure from:

                              (i)  the normal physiological state; or

                             (ii)  the accepted ranges of physiological or biochemical measures;

                            that results from normal physiological stress (for example, the effect of exercise on blood pressure) or the temporary effect of extraneous agents (for example, alcohol on blood cholesterol levels).

incapacity from a defence‑caused injury or incapacity from a defence‑caused disease has the meaning given by subsection (2).

incapacity from a war‑caused injury or incapacity from a war‑caused disease has the meaning given by subsection (2).

injury means any physical or mental injury (including the recurrence of a physical or mental injury) but does not include:

                     (a)  a disease; or

                     (b)  the aggravation of a physical or mental injury.

War‑caused injury; war‑caused disease; defence‑caused injury; defence‑caused disease

             (2)  In this Act, unless the contrary intention appears:

                     (a)  a reference to the incapacity of a veteran from a war‑caused injury or a war‑caused disease; or

                     (b)  a reference to the incapacity of a person who is a member of the Forces, or a member of a Peacekeeping Force (as defined by subsection 68(1)), from a defence‑caused injury or a defence‑caused disease;

is a reference to the effects of that injury or disease and not a reference to the injury or disease itself.

Note:          for war‑caused injury and war‑caused disease see section 9.

Blinded in an eye

             (3)  For the purposes of this Act, a person is taken to have been blinded in an eye if:

                     (a)  the person has lost the eye; or

                     (b)  in the opinion of the Commission, the eyesight of the person in that eye is so defective that the person has no useful sight in that eye.

5E  Family relationships definitions—couples

             (1)  In this Act, unless the contrary intention appears:

couple has the meaning given by subsections (2), (3) and (4).

member of a couple has the meaning given by subsections (2), (3), (4) and (4A).

non‑illness separated spouse means a person:

                     (a)  who is legally married to another person but living separately and apart from that other person on a permanent basis; and

                     (b)  whose separation has not resulted in a direction under subsection 5R(5).

partner, in relation to a person who is a member of a couple, means the other member of the couple.

partnered has the meaning given by subsection (5).

partnered (partner getting benefit) has the meaning given by subsection (5).

partnered (partner getting neither pension nor benefit) has the meaning given by subsection (5).

partnered (partner getting pension) has the meaning given by subsection (5).

partnered (partner getting pension or benefit) has the meaning given by subsection (5).

prohibited relationship has the meaning given by subsections (6) and (7).

war widow means a woman:

                     (a)  who was the partner of, was legally married to, or was the wholly dependent partner of:

                              (i)  a veteran; or

                             (ii)  a person who was a member of the Forces for the purposes of Part II or IV of this Act; or

                            (iii)  a person who was a member (within the meaning of the MRCA);

                            immediately before the death of the veteran or person; and

                     (b)  who:

                              (i)  is receiving a pension payable under Part II or IV of this Act at a rate determined under or by reference to subsection 30(1); or

                             (ii)  has received a lump sum mentioned in paragraph 234(1)(b) of the MRCA, or is receiving a weekly amount mentioned in that paragraph; or

                            (iii)  is receiving a pension that is payable under the law of a foreign country, and that is, in the opinion of the Commission, similar in character to a pension referred to in subparagraph (i).

war widower means a man:

                     (a)  who was the partner of, was legally married to, or was the wholly dependent partner of:

                              (i)  a veteran; or

                             (ii)  a person who was a member of the Forces for the purposes of Part II or IV of this Act; or

                            (iii)  a person who was a member (within the meaning of the MRCA);

                            immediately before the death of the veteran or person; and

                     (b)  who:

                              (i)  is receiving a pension payable under Part II or IV of this Act at a rate determined under or by reference to subsection 30(1); or

                             (ii)  has received a lump sum mentioned in paragraph 234(1)(b) of the MRCA, or is receiving a weekly amount mentioned in that paragraph; or

                            (iii)  is receiving a pension that is payable under the law of a foreign country, and that is, in the opinion of the Commission, similar in character to a pension referred to in subparagraph (i).

wholly dependent partner has the meaning given by the MRCA.

widow means:

                     (a)  a woman who was the partner of a person immediately before the person died; or

                     (b)  a woman who was legally married to a man, but living separately and apart from him on a permanent basis, immediately before he died.

widower means:

                     (a)  a man who was a partner of a person immediately before the person died; or

                     (b)  a man who was legally married to a woman, but living separately and apart from her on a permanent basis, immediately before she died.

Member of a couple—general

             (2)  A person is a member of a couple for the purposes of this Act if:

                     (a)  the person is legally married to another person and is not living separately and apart from the other person on a permanent basis; or

                    (aa)  both of the following conditions are met:

                              (i)  a relationship between the person and another person (whether of the same sex or a different sex) is registered under a law of a State or Territory prescribed for the purposes of section 2E of the Acts Interpretation Act 1901 as a kind of relationship prescribed for the purposes of that section;

                             (ii)  the person is not living separately and apart from the other person on a permanent basis; or

                     (b)  all of the following conditions are met:

                              (i)  the person is living with another person, whether of the same sex or a different sex (in this paragraph called the partner);

                             (ii)  the person is not legally married to the partner;

                            (iii)  the person and the partner are, in the Commission’s opinion (formed as mentioned in section 11A), in a de facto relationship;

                            (iv)  the person and the partner are not within a prohibited relationship.

Note 1:       for living with a person see subsection (3).

Note 3:       subsection 5R(5) (determination in relation to an illness separated couple) is a qualification to the definition of a member of a couple.

Note 4:       subsection 5R(6) (determination in relation to a respite care couple) is a qualification to the definition of a member of a couple.

             (3)  For the purposes of subparagraph (2)(b)(i), a person is to be treated as living with another person during:

                     (a)  any temporary absence of one of those persons;

                     (b)  an absence of one of those persons resulting from illness or infirmity;

if the Commission is of the opinion that they would, but for the absence, have been living together during that period.

Member of a couple—special excluding determination

             (4)  A person is not a member of a couple if a determination under subsection 5R(3) is in force in relation to the person.

Note:          subsection 5R(3) allows the Commission to treat a person who is a member of a couple as not being a member of a couple in special circumstances.

          (4A)  The partner of a person who:

                     (a)  is receiving a youth allowance under the Social Security Act; and

                     (b)  is not independent within the meaning of Part 3.5 of that Act;

is not a member of a couple for the purposes of:

                     (c)  the provisions of this Act referred to in the table at the end of this subsection; and

                     (d)  any provision of this Act that applies for the purposes of a provision mentioned in paragraph (c).

Note:          Paragraph (d) has the effect of treating a person as not being a member of a couple in provisions that apply for the purposes of the income test, assets test or compensation recovery provisions, including section 5H (Income test definitions), sections 5L and 5LA (Assets test definitions), section 5NB (Compensation recovery definitions) and Divisions 1 to 11 of Part IIIB (General provisions relating to the income and assets tests).

 

Affected provisions

Item

Provisions of this Act

Subject matter

1

Part IIIC

Compensation recovery

2

Module E of the Rate Calculator in Part 2 of Schedule 6

Ordinary/adjusted income test

3

Module F of the Rate Calculator in Part 2 of Schedule 6

Assets test

Standard family situation categories

             (5)  For the purposes of this Act:

                     (a)  a person is partnered if the person is a member of a couple; and

                     (b)  a person is partnered (partner getting neither pension nor benefit) if the person is a member of a couple and the person’s partner:

                              (i)  is not receiving a service pension; and

                            (ia)  is not receiving income support supplement; and

                             (ii)  is not receiving a social security pension; and

                            (iii)  is not receiving a social security benefit; and

                     (c)  a person is partnered (partner getting pension or benefit) if the person is a member of a couple and the person’s partner is receiving:

                              (i)  a service pension; or

                            (ia)  income support supplement; or

                             (ii)  a social security pension; or

                            (iii)  a social security benefit; and

                     (d)  a person is partnered (partner getting pension) if the person is a member of a couple and the person’s partner is receiving:

                              (i)  a service pension; or

                            (ia)  income support supplement; or

                             (ii)  a social security pension; and

                     (e)  a person is partnered (partner getting benefit) if the person is a member of a couple and the person’s partner is receiving a social security benefit.

Prohibited relationship

             (6)  For the purposes of this Act, a person and his or her partner are within a prohibited relationship if the person is:

                     (a)  an ancestor or a descendant of the partner; or

                     (b)  a brother, sister, half‑brother or half‑sister of the partner.

             (7)  For the purposes of subsection (6), a child who is, or has ever been, an adopted child of a person is taken to be the natural child of that person and the person is taken to be the natural parent of the child.

5F  Family relationships definitions—children

             (1)  In this Act, unless the contrary intention appears:

Aboriginal study assistance scheme means:

                     (a)  the ABSTUDY Scheme; or

                     (b)  the Aboriginal Overseas Study Assistance Scheme; or

                     (c)  a scheme prescribed for the purposes of this definition.

adopted child means a child adopted under the law of any place, whether in Australia or not, relating to the adoption of children.

child means:

                     (a)  a person who has not turned 16; or

                     (b)  a person who:

                              (i)  has turned 16 but has not turned 25; and

                             (ii)  is receiving full‑time education at a school, college or university;

but does not include such a person if the person is receiving:

                     (c)  a disability support pension; or

                     (d)  a wife pension; or

                     (e)  a carer payment; or

                      (f)  a pension PP (single); or

                     (g)  a widow B pension; or

                     (h)  a widowed person allowance; or

                      (j)  a social security benefit (except youth allowance paid because the person is at least 16 but less than 25 and is receiving full‑time education at a school, college or university);

under the Social Security Act.

dependent child has the same meaning as in the Social Security Act.

family tax benefit has the meaning given by subsection 3(1) of the Family Assistance Act.

FTB child has the meaning given by Subdivision A of Division 1 of Part 3 of the Family Assistance Act.

maximum Part A rate of family tax benefit is the maximum rate worked out in step 1 of the method statement in clause 3 of Schedule 1 to the Family Assistance Act.

parent has a meaning affected by section 10A.

regular care child has the meaning given by subsection 3(1) of the Family Assistance Act.

step‑child: without limiting who is a step‑child of a person for the purposes of this Act, someone who is a child of a partner of the person is the step‑child of the person, if he or she would be the person’s step‑child except that the person is not legally married to the partner.

step‑parent: without limiting who is a step‑parent of a person for the purposes of this Act, someone who is a partner of a parent of the person is the step‑parent of the person, if he or she would be the person’s step‑parent except that he or she is not legally married to the person’s parent.

When a person becomes a dependent child

             (2)  A person becomes a dependent child at the time when the person would become a dependent child for the purposes of the Social Security Act if that Act applied in respect of the person.

5G  Australian residence definitions

             (1)  In this Act, unless the contrary intention appears:

Australian resident has the meaning given by subsection (1AA).

holder, in relation to a visa, has the same meaning as in the Migration Act 1958.

permanent visa, special category visa and special purpose visa have the same meanings as in the Migration Act 1958.

       (1AA)  An Australian resident is a person who:

                     (a)  resides in Australia; and

                     (b)  is one of the following:

                              (i)  an Australian citizen;

                             (ii)  the holder of a permanent visa;

                            (iii)  the holder of a special category visa who is likely to remain permanently in Australia;

                            (iv)  the holder of a special purpose visa who is likely to remain permanently in Australia.

Note 1:       For holder, permanent visa and special purpose visa see subsection (1).

Note 2:       Australian citizen is defined in the Australian Citizenship Act 2007.

          (1A)  In deciding for the purposes of this Act whether or not a person resides in Australia, regard must be had to:

                     (a)  the nature of the accommodation used by the person in Australia; and

                     (b)  the nature and extent of the family relationships the person has in Australia; and

                     (c)  the nature and extent of the person’s employment, business or financial ties with Australia; and

                    (ca)  the nature and extent of the person’s assets located in Australia; and

                   (cb)  the frequency and duration of the person’s travel outside Australia; and

                     (d)  any other matter relevant to determining whether the person intends to remain permanently in Australia.

       (1AB)  For the purposes of paragraph (1A)(b), family relationships are taken to include (without limitation):

                     (a)  relationships between partners; and

                     (b)  relationships of child and parent that arise if someone is the parent of a person under section 10A; and

                     (c)  any other relationship that would be a family relationship if a relationship mentioned in paragraph (a) or (b) is taken to be a family relationship.

Papua New Guinea residents

             (2)  For the purposes of this Act (other than Part VIIC), a person (other than an indigenous inhabitant of the Territory of Papua or the Territory of New Guinea) resident in Papua New Guinea immediately before it became an independent sovereign State, is taken to be an Australian resident so long as the person continues to reside in Papua New Guinea.

             (3)  If:

                     (a)  a service pensioner or income support supplement recipient is taken to be an Australian resident under subsection (2); and

                     (b)  the pensioner’s partner was resident in Papua New Guinea after it became an independent sovereign State;

the partner is, for the purposes of Parts III, IIIA and IIIB, also taken to be an Australian resident.

             (4)  If:

                     (a)  a service pensioner or income support supplement recipient is taken to be an Australian resident under subsection (2); and

                     (b)  the pensioner’s non‑illness separated spouse was resident in Papua New Guinea after it became an independent sovereign State;

the non‑illness separated spouse is, for the purposes of Parts III, IIIA and IIIB, also taken to be an Australian resident.

5GA  Pension supplement rate definitions

             (1)  In this Act, the combined couple rate of pension supplement is $2,199.60.

Note 1:       This rate is indexed 6 monthly in line with CPI increases (see sections 59B to 59E).

Note 2:       This rate is an annual rate.

             (2)  In this Act, the combined couple rate of minimum pension supplement is $1,185.60.

Note 1:       This rate is indexed 6 monthly in line with CPI increases (see sections 59B to 59E).

Note 2:       This rate is an annual rate.

             (3)  In this Act, a person’s minimum pension supplement amount is the amount worked out by:

                     (a)  applying the applicable percentage in the following table to the combined couple rate of minimum pension supplement; and

                     (b)  if:

                              (i)  the person is not partnered; and

                             (ii)  the amount resulting from paragraph (a) is not a multiple of $2.60;

                            rounding the amount up or down to the nearest multiple of $2.60 (rounding up if the amount is not a multiple of $2.60 but is a multiple of $1.30).

 

Item

Person’s family situation

Use this %

1

Not member of couple

66.33%

2

Partnered

50%

3

Member of illness separated couple

66.33%

4

Member of respite care couple

66.33%

Note:          A person’s minimum pension supplement amount is an annual rate.

             (4)  In this Act, a person’s pension supplement basic amount depends on which family situation in the following table applies to the person. The person’s pension supplement basic amount is the corresponding amount set out in the table.

 

Item

Person’s family situation

Amount

1

Not member of couple

$509.60

2

Partnered

$426.40

3

Member of illness separated couple

$509.60

4

Member of respite care couple

$509.60

Note 1:       Each amount in the table will be indexed 6 monthly in line with CPI increases (see sections 59B to 59E).

Note 2:       A person’s pension supplement basic amount is an annual rate.

             (5)  In this Act, the daily rate of tax‑exempt pension supplement, for a person who is receiving a service pension or income support supplement is the amount a day worked out using the table.

 

Tax‑exempt pension supplement

Item

Payment received

Amount a day of tax‑exempt pension supplement

1

Service pension

The amount worked out by:

(a) subtracting the person’s pension supplement basic amount from the person’s pension supplement amount; and

(b) dividing the result of paragraph (a) by 364

2

Income support supplement

The person’s minimum pension supplement amount divided by 364

Note:          The portion of the person’s service pension or income support supplement equal to the tax‑exempt pension supplement is exempt from income tax (see sections 52‑65 and 52‑70 of the Income Tax Assessment Act 1997).

             (6)  If a person is receiving a service pension at a rate that:

                     (a)  is worked out under subpoint SCH6‑A1(4) of Schedule 6 and is the revised rate; or

                     (b)  is worked out under subpoint SCH6‑A1(5) of Schedule 6;

subsection (5) applies in relation to the person and the pension as if the person had a pension supplement amount equal to what would be the person’s pension supplement amount if the person were receiving the service pension at the rate worked out under subpoint SCH6‑A1(4) of Schedule 6 and equal to the provisional rate.

5H  Income test definitions [see Note 3]

             (1)  In this Act, unless the contrary intention appears:

adjusted income, in relation to a person for the purpose of assessment of the rate of income support supplement, means the sum of:

                     (a)  the person’s ordinary income; and

                     (b)  a payment that is disability pension under paragraph (d) of the definition of disability pension in section 5Q payable to the person;

                     (c)  any instalment of pension payable to the person under subsection 30(1); and

                    (ca)  if the person was paid a lump sum mentioned in subparagraph 234(1)(b)(i) of the MRCA (wholly dependent partner payment)—any weekly amounts that the person would have been paid if the person had chosen the weekly amount mentioned in subparagraph 234(1)(b)(ii) of that Act; and

                   (cb)  any payment of a weekly amount mentioned in subparagraph 234(1)(b)(ii) of the MRCA (wholly dependent partner payment); and

                     (d)  any instalment of pension that is payable to the person under the law of a foreign country and is, in the opinion of the Commission, similar in character to the pension referred to in paragraph (c).

approved exchange trading system has the meaning given by subsection 5H(11).

available money, in relation to a person, means money that:

                     (a)  is held by or on behalf of the person; and

                     (b)  is not deposit money of the person; and

                     (c)  is not the subject of a loan made by the person.

dad and partner pay means dad and partner pay under the Paid Parental Leave Act 2010.

deposit money, in relation to a person, means the person’s money that is deposited in an account with a financial institution.

disposes of ordinary income has the meaning given by section 48.

domestic payment has the meaning given by subsection (3).

earned, derived or received has the meaning given by subsection (2).

exchange trading system has the meaning given by subsection 5H(10).

home equity conversion agreement, in relation to a person, means an agreement under which the repayment of an amount paid to or on behalf of the person, or the person’s partner, is secured by a mortgage of the principal home of the person or the person’s partner.

Note:          see also subsection (7).

income, in relation to a person, means:

                     (a)  an income amount earned, derived or received by the person for the person’s own use or benefit; or

                     (b)  a periodical payment by way of gift or allowance; or

                     (c)  a periodical benefit by way of gift or allowance;

but does not include an amount that is excluded under subsection (4), (5) or (8).

Note 1:       See also sections 46B and 46C (business income), sections 46D to 46L (deemed income from financial assets) and sections 46Q to 46YA (income from income streams).

Note 2:       where a person or a person’s partner has disposed of income, the person’s income may be taken to include the amount which has been disposed of—see sections 48‑48E.

Note 3:       amounts of maintenance income are not excluded amounts.

income amount means:

                     (a)  valuable consideration; or

                     (b)  personal earnings; or

                     (c)  moneys; or

                     (d)  profits;

(whether of a capital nature or not).

instalment of parental leave pay means an instalment of parental leave pay under the Paid Parental Leave Act 2010.

ordinary income means income that is not maintenance income or an exempt lump sum.

Note 1:       for maintenance income see subsection 5K(1). For exempt lump sum, see subsection (12).

Note 2:       The receipt of periodic compensation payments may result in reduction of the person’s rate of service pension or income support supplement under Part IIIC. If this happens, the payments are not treated as ordinary income (see section 59X).

Note 3:       For provisions affecting the amount of a person’s ordinary income see sections 46 and 46A (ordinary income concept), sections 46B and 46C (business income), sections 46D to 46L (deemed income from financial assets) and sections 46Q to 46YA (income from income streams).

Earned, derived or received

             (2)  A reference in this Act to an income amount earned, derived or received is a reference to:

                     (a)  an income amount earned, derived or received by any means; and

                     (b)  an income amount earned, derived or received from any source (whether within or outside Australia).

Domestic payments

             (3)  A payment received by a person is a domestic payment for the purposes of this Act if:

                     (a)  the person receives the payment on the disposal of an asset of the person; and

                     (b)  the asset was used, immediately before the disposal, by the person or the person’s partner wholly or substantially for private or domestic purposes; and

                     (c)  the asset was used by the person or the person’s partner wholly or substantially for those purposes for:

                              (i)  a period of 12 months before the disposal; or

                             (ii)  if the Commission considers it appropriate—a period of less than 12 months before the disposal.

Excluded amounts—home equity conversion (not a member of a couple)

             (4)  If a person is not a member of a couple, an amount paid to or on behalf of the person under a home equity conversion agreement is an excluded amount for the person to the extent that the total amount owed by the person from time to time under home equity conversion agreements does not exceed $40,000.

Excluded amounts—home equity conversion (member of a couple)

             (5)  If a person is a member of a couple, an amount paid to or on behalf of the person or the person’s partner under a home equity conversion agreement is an excluded amount for the person to the extent that the total amount owed by the person and the person’s partner under home equity conversion agreements from time to time does not exceed $40,000.

Home equity conversion (amount owed)

             (6)  For the purposes of this Act, the amount owed by a person under a home equity conversion agreement is the principal amount secured by the mortgage concerned and does not include:

                     (a)  any amount representing mortgage fees; or

                     (b)  any amount representing interest; or

                     (c)  any similar liability whose repayment is also secured by the mortgage.

Home equity conversion (principal home)

             (7)  For the purposes of the definition of home equity conversion agreement in subsection (1), an asset cannot be a person’s principal home unless the person or the person’s partner has a beneficial interest (but not necessarily the sole beneficial interest) in the asset.

Excluded amounts—general

             (8)  The following amounts are not income in relation to a person for the purposes of this Act:

                     (a)  a payment under Part III or Part IIIA;

                     (b)  a payment of an instalment of pension under Part II or IV;

                   (ba)  a payment of an instalment of a supplement under Part VIIA (veterans supplement);

                     (c)  a payment of an instalment of a pension (other than a pension payable in respect of a child) payable because of subsection 4(6) or (8B) of the Veterans’ Entitlements (Transitional Provisions and Consequential Amendments) Act 1986;

                     (d)  a payment of an instalment of parental leave pay;

                   (da)  dad and partner pay;

                     (e)  a payment (other than a payment referred to in paragraph (b) or (c)) that is a payment in respect of incapacity or death resulting from employment in connection with a war or war‑like operations in which the Crown has been engaged;

Note:          However, a payment referred to in paragraph (b), (c) or (e):

(a)           is counted in working out the amount of rent assistance a person is entitled to, and may reduce that amount (see Module C of the Rate Calculator); and

(b)           is counted in working out a person’s total income for the purposes of the hardship rules (see section 52Z).

                    (ea)  any payment of compensation (other than a payment referred to in paragraph (e)) to the extent that the payment is taken into account:

                              (i)  under Division 5A of Part II; or

                             (ii)  under section 74;

                            to reduce a disability pension payable to the person under Part 2 or Part 4, as the case requires;

Note:          However, a payment referred to in paragraph (ea) is counted in working out a person’s total income for the purposes of the hardship rules (see section 52Z).

                      (f)  a payment by way of allowance (other than a loss of earnings allowance) under Part VI of this Act;

Note:          however, a payment referred to in paragraph (f) is counted in working out a person’s total income for the purposes of the hardship rules (see section 52Z).

                  (faa)  a payment, by a foreign country, of an allowance or annuity that is of a similar kind to decoration allowance payable under section 102 or to Victoria Cross allowance payable under section 103;

Note:       However, a payment referred to in paragraph (faa) is counted in working out a person’s total income for the purposes of the hardship rules (see section 52Z).

                (faaa)  a payment under Part VIB (prisoner of war recognition supplement);

Note:       However, a payment referred to in paragraph (faaa) is counted in working out a person’s total income for the purposes of the hardship rules (see section 52Z).

                    (fa)  a payment known as a student start‑up scholarship payment, or a relocation scholarship payment, under the Veterans’ Children Education Scheme;

                     (g)  a payment under Part VIIAB, including a payment made under regulations made under that Part;

                   (gb)  a payment under Part VIIAD (seniors supplement);

                     (h)  a payment under the Social Security Act;

                   (ha)  a payment under the ABSTUDY Scheme;

                  (haa)  the amount or value of a scholarship known as a Commonwealth Trade Learning Scholarship;

                 (hab)  a payment of an approved scholarship (within the meaning of subsection 8(1) of the Social Security Act 1991) awarded on or after 1 September 1990;

                   (hb)  the amount or value of:

                              (i)  a scholarship known as a Commonwealth Education Costs Scholarship; or

                             (ii)  a scholarship known as a Commonwealth Accommodation Scholarship;

                            provided for under the Commonwealth Scholarships Guidelines made for the purposes of Part 2‑4 of the Higher Education Support Act 2003;

                   (hc)  an amount covered by subsection (8A) (about reductions of amounts payable for enrolment or tuition in certain courses);

                   (hd)  a payment covered by subsection (8B) (about payments that are made to an educational institution or the Commonwealth to reduce a person’s liability to the educational institution or Commonwealth and that are made by someone other than the person);

                   (he)  a payment of a scholarship, to the extent that the payment is not income for the purposes of the Social Security Act 1991 because of paragraph 8(8)(zjd) of that Act;

                      (i)  any return on a person’s investment in:

                              (i)  a superannuation fund; or

                             (ii)  an approved deposit fund; or

                            (iii)  a deferred annuity; or

                          (iiia)  an ATO small superannuation account;

                            until the person:

                            (iv)  reaches pension age; or

                             (v)  commences to receive a pension or annuity out of the fund;

Note 1:       for pension age see subsection (9) and sections 5QA and 5QB.

Note 2:       for superannuation fund, approved deposit fund, deferred annuity and ATO small superannuation account see subsection 5J(1).

                    (ia)  any return on a person’s investment in an FHSA (within the meaning of the First Home Saver Accounts Act 2008);

                      (j)  the value of emergency relief or like assistance;

                      (l)  a payment under the Handicapped Persons Assistance Act 1974;

                    (m)  a payment under Part III of the Disability Services Act 1986 or the value of any rehabilitation program (including any follow‑up program) provided under that Part;

                     (n)  a payment of domiciliary nursing care benefit under Part VB of the National Health Act 1953 as in force immediately before 1 July 1999;

                   (na)  a payment of subsidy under Part 3.1 of the Aged Care Act 1997 made to an approved provider (within the meaning of that Act) in respect of care provided to the person;

                   (nb)  an accommodation bond balance (within the meaning of the Aged Care Act 1997) refunded to the person under that Act;

                   (nc)  while a person is accruing a liability to pay an accommodation charge—any rent from the person’s principal home that the person, or the person’s partner, earns, derives or receives from another person;

Note 1:    Accommodation charge has the same meaning as in the Aged Care Act 1997: see subsection 5L(1).

Note 2:    For rent, see subsection 5N(2).

Note 3:    Under subsections 5LA(8) and (9), the principal home of a person in a care situation may be a place other than the place where the person receives care.

                   (nd)  while a person is liable to pay all or some of an accommodation bond by periodic payments—any rent from the person’s principal home that the person, or the person’s partner, earns, derives or receives from another person;

                     (o)  a payment under a Commonwealth law, one of whose objects is that of assisting people to purchase or build their own homes;

                   (oa)  a payment by a State or Territory for the purpose of assisting people to purchase or build their own homes;

                     (p)  a payment made to the person for or in respect of a child of the person;

                  (paa)  a payment of family assistance, or of one‑off payment to families, economic security strategy payment to families, back to school bonus,, single income family bonus, clean energy advance or ETR payment under the Family Assistance Act;

                 (pab)  a payment under the scheme determined under Schedule 3 to the Family Assistance Legislation Amendment (More Help for Families—One‑off Payments) Act 2004;

                  (pac)  disability expenses maintenance;

                   (pa)  if:

                              (i)  the person owes money under a mortgage or other arrangement; and

                             (ii)  the person has insurance which requires the insurer to make payments to the creditor when the person is unemployed or ill or in other specified circumstances; and

                            (iii)  payments are made to the creditor under the insurance;

                            a payment so made;

                     (q)  insurance or compensation payments made because of the loss of, or damage to, buildings, plant or personal effects;

Note:          these payments are to be disregarded in calculating the value of a person’s assets (see paragraph 52(1)(o)).

                      (r)  money from an investment that is:

                              (i)  an investment of payments of the kind referred to in paragraph (q); and

                             (ii)  an investment for:

                                        (A)  a period of not more than 12 months after the person receives the payments; or

                                        (B)  if the Commission thinks it appropriate—of 12 months or more after the person receives those payments;

                      (s)  an amount paid, under a law of, or applying in, a country or part of a country, by way of compensation for a victim of National Socialist persecution;

                     (u)  if the person pays, or is liable to pay, rent—a payment by way of rent subsidy made by the Commonwealth, by a State or Territory or by an authority of the Commonwealth or of a State or Territory to or on behalf of the person who pays or who is liable to pay rent;

                     (v)  a payment received by a trainee in full‑time training under a program included in the programs known as Labour Market Programs, to the extent that the payment includes one or more of the following amounts:

                              (i)  an amount calculated by reference to a rate of newstart allowance or youth allowance under the Social Security Act;

                             (ii)  an amount known as the training component;

                            (iii)  an amount by way of a living away from home allowance;

                    (w)  in the case of a person who:

                              (i)  is receiving a service pension, income support supplement, a social security pension or a social security benefit; and

                             (ii)  is in part‑time training, or engaged in part‑time work experience, under a program included in the programs known as Labour Market Programs;

                            a payment received by the person under that program in respect of the person’s expenses associated with his or her participation in the training or work experience;

                     (x)  a payment received by the person under the scheme known as the New Enterprise Incentive Scheme;

                  (xaa)  a payment made by the Commonwealth known as the Apprenticeship Wage Top‑Up to the person;

                 (xab)  a payment to the person made by the Commonwealth under the program known as Skills for Sustainability for Australian Apprentices;

                  (xac)  a payment to the person made by the Commonwealth under the program known as Tools for Your Trade (within the program known as the Australian Apprenticeships Incentives Program);

                   (xa)  a payment made by the Mark Fitzpatrick Trust or the New South Wales Medically‑Acquired HIV Trust to a person by way of assistance with expenses incurred in relation to a person who has medically acquired HIV infection;

                   (xb)  a payment by the Thalidomide Australia Fixed Trust:

                              (i)  made to, or applied for the benefit of, a beneficiary of the Trust; or

                             (ii)  made to a person in respect of a beneficiary of the Trust;

                     (y)  a benefit under a law of the Commonwealth that relates to the provision of:

                              (i)  pharmaceutical, sickness or hospital benefits; or

                             (ii)  medical or dental services;

                   (ya)  a payment towards the cost of personal care support services for the person that is made under a scheme approved under section 35A of the Social Security Act;

                     (z)  a payment that:

                              (i)  is made by an organisation that is registered under a law referred to in paragraph (y); and

                             (ii)  is made in respect of expenses incurred by a person for:

                                        (A)  hospital treatment; or

                                        (B)  medical treatment; or

                                        (C)  dental treatment;

                    (za)  in the case of a member of:

                              (i)  the Naval Reserve; or

                             (ii)  the Army Reserve; or

                            (iii)  the Air Force Reserve;

                            the pay and allowances paid to the person as such a member (other than pay and allowances in respect of continuous full‑time service);

                   (zb)  a payment that is a bereavement payment under section 98A; or

                   (zd)  a periodical payment by way of gift or allowance, or a periodical benefit by way of gift or allowance, from a parent, child, brother or sister of the person;

                    (ze)  the value of board or lodging received by the person;

                  (zea)  an amount received under the scheme known as the Western Australian Cost of Living Rebate Scheme;

                  (zeb)  the value of a benefit obtained by using a card known as the Western Australian Country Age Pension Fuel Card;

                    (zf)  a domestic payment;

                   (zh)  a payment received by the person for serving, or being summoned to serve, on a jury;

                    (zi)  a payment received by the person for expenses incurred by the person as a witness, other than an expert witness, before a court, tribunal or commission;

                    (zj)  a return on an exempt funeral investment;

Note:       For exempt funeral investment see section 5PC.

                   (zk)  an amount paid by a buyer under a sale leaseback agreement;

                    (zl)  if a person is a member of an approved exchange trading system—an amount credited to the person’s account for the purposes of the scheme in respect of any goods or services provided by the person to another member;

Note:       For approved exchange trading system see subsections (10) and (11).

                  (zm)  an advance payment of pension under Part IVA;

                   (zn)  an amount worked out under section 115G;

                   (zo)  a payment under section 47, 56, 81, 205, 214, 217, 226, 239 or 266 of the MRCA to reimburse costs incurred in respect of the provision of goods or services (other than a payment to the person who provided the goods or service);

                   (zp)  a payment (either as a weekly amount or a lump sum) under section 68, 71, 75 or 80 of the MRCA (permanent impairment);

                   (zq)  a payment of a Special Rate Disability Pension under Part 6 of Chapter 4 of the MRCA;

                    (zr)  if subsection 204(5) of the MRCA applies to a person—an amount per fortnight, worked out under section 5I of this Act, that would, apart from this paragraph, be income of the person;

Note:       Subsection 204(5) of the MRCA reduces a Special Rate Disability Pension by reference to amounts of Commonwealth superannuation that the person has received or is receiving.

                    (zs)  a payment under the Motor Vehicle Compensation Scheme under section 212 of the MRCA;

                    (zt)  a payment of MRCA supplement under section 221, 245 or 300 of the MRCA;

                   (zu)  a payment of a lump sum mentioned in paragraph 234(1)(a) or subparagraph 234(1)(b)(i), or of a weekly amount mentioned in subparagraph 234(1)(b)(ii), of the MRCA (wholly dependent partner payment);

                   (zv)  a payment under section 242 or 255 of the MRCA (continuing permanent impairment and incapacity etc. payments);

                   (zw)  a payment under section 251 or 253 of the MRCA (eligible young person payment);

                   (zx)  a payment under the scheme set up under section 258 of the MRCA (education scheme for eligible young persons);

                   (zy)  a payment under section 262 of the MRCA (compensation for other dependants);

                    (zz)  a payment under Part 2 of Chapter 6, or Division 2 or 3 of Part 4 of Chapter 6, or subsection 328(4), of the MRCA (compensation for treatment etc.);

                  (zza)  a payment under section 424 of the MRCA (special assistance);

             (zzaaaa)  a clean energy payment under the MRCA;

              (zzaaa)  a tax bonus (within the meaning of the Tax Bonus for Working Australians Act (No. 2) 2009);

                (zzaa)  2006 one‑off payment to older Australians under Part VIID;

                (zzab)  a payment under a scheme determined under Schedule 2 to the Social Security and Veterans’ Entitlements Legislation Amendment (One‑off Payments to Increase Assistance for Older Australians and Carers and Other Measures) Act 2006;

                (zzac)  2007 one‑off payment to older Australians under Part VIIE;

                (zzad)  a payment under a scheme determined under Schedule 2 to the Social Security and Veterans’ Affairs Legislation Amendment (One‑off Payments and Other 2007 Budget Measures) Act 2007;

                (zzae)  2008 one‑off payment to older Australians under Part VIIF;

                (zzaf)  a payment under a scheme determined under Schedule 2 to the Social Security and Veterans’ Entitlements Legislation Amendment (One‑off Payments and Other Budget Measures) Act 2008;

                (zzag)  economic security strategy payment under Part VIIG;

                (zzah)  a clean energy payment under Part IIIE;

                 (zzai)  ETR payment under Part VIIH;

                  (zzb)  the value of the benefit provided under the initiative known as the Tools for Your Trade initiative;

                  (zzc)  a payment under the scheme determined under Schedule 4 to the Social Security and Veterans’ Entitlements Legislation Amendment (One‑off Payments to Increase Assistance for Older Australians and Carers and Other Measures) Act 2006;

                  (zzd)  a payment under the scheme determined under Schedule 4 to the Social Security and Veterans’ Affairs Legislation Amendment (One‑off Payments and Other 2007 Budget Measures) Act 2007;

                  (zze)  a payment under the scheme determined under Schedule 4 to the Social Security and Veterans’ Entitlements Legislation Amendment (One‑off Payments and Other Budget Measures) Act 2008;

                  (zzf)  a payment under the scheme determined under Schedule 4 to the Social Security and Other Legislation Amendment (Economic Security Strategy) Act 2008;

                  (zzg)  a payment under the scheme determined under Schedule 4 to the Household Stimulus Package Act (No. 2) 2009.

Note:          However:

(a)           some of the amounts referred to in paragraphs (8)(zp), (zq), (zr) and (zu) are counted for the purposes of the hardship rules (see subsection 52Z(3A)); and

(b)           the amounts referred to in paragraph (8)(zp) are counted for the purposes of rent assistance (see Module C of the Rate Calculator).

          (8A)  This subsection covers the amount of a reduction (by discount, remission or waiver) of an amount that would otherwise be payable by a person:

                     (a)  to an educational institution for enrolment or tuition of the person by the institution in a course that:

                              (i)  is determined, under section 5D of the Student Assistance Act 1973, to be a secondary course or a tertiary course for the purposes of that Act; or

                             (ii)  is a Masters or Doctoral degree course accredited as a higher education course by the authority responsible for accrediting higher education courses in the State or Territory in which the course is conducted or by the institution, if it is permitted by a law of the Commonwealth, a State or a Territory to accredit higher education courses that it conducts; or

                            (iii)  is a course of vocational training; or

                     (b)  to the Commonwealth as a result of the person’s enrolment in, or undertaking of, such a course at an educational institution.

          (8B)  This subsection covers a payment:

                     (a)  that is made to discharge, or to prevent from arising, to any extent:

                              (i)  a person’s actual or anticipated liability to an educational institution for enrolment or tuition of the person by the institution in a course described in paragraph (8A)(a); or

                             (ii)  a person’s actual or anticipated liability to the Commonwealth resulting from the person’s enrolment in, or undertaking of, such a course at an educational institution; and

                     (b)  that is made by someone other than the person; and

                     (c)  that is made to the institution or the Commonwealth; and

                     (d)  that is not made at the direction of the person.

             (9)  For the purposes of the application of subsection (8) in relation to income support supplement, the reference in subparagraph (8)(i)(iv) to pension age is taken to be a reference to the qualifying age.

Note:          For qualifying age see section 5Q.

           (10)  An exchange trading system is an arrangement between a number of people (members) under which each member may obtain goods or services from another member that is wholly or partly in kind rather than in cash. Each member has, for the purposes of the arrangement, an account:

                     (a)  to which is credited:

                              (i)  the amount representing the value of any goods or services provided by the member to another member; or

                             (ii)  if the goods or services were partly paid for in cash—the amount referred to in subparagraph (i) less the amount so paid in cash; and

                     (b)  to which is debited:

                              (i)  the amount representing the value of any goods or services supplied to the member by another member; or

                             (ii)  if the goods or services were partly paid for in cash—the amount referred to in subparagraph (i) less the amount so paid in cash.

           (11)  An exchange trading system is an approved exchange trading system if the Commission is satisfied that:

                     (a)  it is a local community‑based system; and

                     (b)  its primary purpose is to help people maintain their labour skills and keep them in touch with the labour market; and

                     (c)  it is not a system run by a person or organisation for profit.

           (12)  An amount received by a person is an exempt lump sum if:

                     (a)  it is not a periodic amount (within the meaning of subsection 5K(1A)); and

                     (b)  it is not income from remunerative work undertaken by the person; and

                     (c)  it is an amount, or one of a class of amounts, that the Commission determines to be an exempt lump sum.

5I  Special Rate Disability Pension reduction amount

                   For the purposes of paragraphs 5H(8)(zr) and 52Z(3A)(i), the amount per fortnight is:

where:

Special Rate Disability Pension reduction amount means the amount by which the Special Rate Disability Pension (as reduced under subsection 204(3)) is reduced under subsection 204(6) of the MRCA (but not below zero).

5J  Financial assets and income streams definitions

             (1)  In this Act, unless the contrary intention appears:

approved deposit fund has the same meaning as in the Income Tax Assessment Act 1997.

asset‑tested income stream (long term) means an income stream that is an asset‑tested income stream (long term) under section 5JD or an income stream that:

                     (a)  is not an asset‑test exempt income stream; and

                     (b)  has, on its commencement day:

                              (i)  a term of more than 5 years; or

                             (ii)  if the person who has acquired the income stream has a life expectancy of 5 years or less—a term equal to or greater than the person’s life expectancy.

asset‑tested income stream (short term) means an income stream that is an asset‑tested income stream (short term) under section 5JD or an income stream that is neither:

                     (a)  an asset‑test exempt income stream; nor

                     (b)  an asset‑tested income stream (long term).

asset‑test exempt income stream has the meanings given by sections 5JA, 5JB and 5JBA.

ATO small superannuation account means an account kept in the name of an individual under the Small Superannuation Accounts Act 1995.

commencement day, in relation to an income stream, means the first day of the period to which the first payment under the income stream relates.

deductible amount, in relation to a defined benefit income stream for a year, means the sum of the amounts that are the tax free components (worked out under Subdivision 307‑C of the Income Tax Assessment Act 1997 or, if applicable, section 307‑125 of the Income Tax (Transitional Provisions) Act 1997) of the payments received from the defined benefit income stream during the year.

deferred annuity means an annuity, within the meaning of section 10 of the Superannuation Industry (Supervision) Act 1993, that is not presently payable.

defined benefit income stream has the meaning given by subsection (1E).

family law affected income stream has the meaning given by section 5JC.

financial asset means:

                     (a)  a financial investment; or

                     (b)  a deprived asset.

Note:          For deprived asset see subsection 5J(2B).

financial investment means:

                     (a)  available money; or

                     (b)  deposit money; or

                     (c)  a managed investment; or

                     (d)  a listed security; or

                     (e)  a loan that has not been repaid in full; or

                      (f)  an unlisted public security; or

                     (g)  gold, silver or platinum bullion; or

                     (h)  an asset‑tested income stream (short term);

but does not include an investment in an FHSA (within the meaning of the First Home Saver Accounts Act 2008).

Note:          For loan see subsections (2) and (2A).

friendly society means:

                     (a)  a body that is a friendly society for the purposes of the Life Insurance Act 1995; or

                     (b)  a body that is registered or incorporated as a friendly society under a law of a State or Territory; or

                     (c)  a body that is permitted, by a law of a State or Territory, to assume or use the expression friendly society; or

                     (d)  a body that, immediately before the date that is the transfer date for the purposes of the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999, was registered or incorporated as a friendly society under a law of a State or Territory; or

                     (e)  a body that had, before 13 December 1987, been approved for the purpose of the definition of friendly society in subsection 115(1) of the Social Security Act 1947.

governing rules, in relation to an income stream, means any trust instrument, other document or legislation, or combination of them, governing the establishment and operation of the income stream.

income stream means:

                     (a)  an income stream arising under arrangements that are regulated by the Superannuation Industry (Supervision) Act 1993; or

                     (b)  an income stream arising under a public sector superannuation scheme (within the meaning of that Act); or

                     (c)  an income stream arising under a retirement savings account; or

                     (d)  an income stream provided as life insurance business by a life company registered under section 21 of the Life Insurance Act 1995; or

                      (f)  an income stream designated in writing by the Commission for the purposes of this definition, having regard to the guidelines determined under subsection (1F); or

                    (fa)  a family law affected income stream;

but does not include any of the following:

                     (g)  available money;

                     (h)  deposit money;

                      (i)  a managed investment;

                      (j)  a listed security;

                     (k)  a loan that has not been repaid in full;

                      (l)  an unlisted public security;

                    (m)  gold, silver or platinum bullion.

investment:

                     (a)  in relation to a superannuation fund, approved deposit fund or deferred annuity—has the meaning given by subsection (6); or

                     (b)  in relation to an ATO small superannuation account—has the meaning given by subsection (6A); or

                     (c)  in relation to an investment in an FHSA (within the meaning of the First Home Saver Accounts Act 2008)—has the meaning given by subsection (6B).

investor, in relation to an ATO small superannuation account, means the person in whose name the account is kept.

life expectancy has the same meaning as life expectation factor has in section 27H of the Income Tax Assessment Act.

listed security means:

                     (a)  a share in a company; or

                     (b)  another security;

listed on a stock exchange.

managed investment has the meaning given by subsections (1A), (1B) and (1C).

original family law affected income stream has the meaning given by section 5JC.

primary FLA income stream has the meaning given by section 5JC.

public unit trust means a unit trust that:

                     (a)  except where paragraph (b) applies—was, in relation to the unit trust’s last year of income, a public unit trust for the purposes of Division 6B of Part III of the Income Tax Assessment Act; or

                     (b)  where the first year of income of the unit trust has not yet finished—has, at some time since the trust was established, satisfied at least one of the paragraphs of subsection 102G(1) of the Income Tax Assessment Act.

purchase price, in relation to an income stream, means the sum of the payments made to purchase the income stream (including amounts paid by way of employer and employee contributions) less any commuted amounts.

relevant number, in relation to an income stream, means:

                     (a)  if the income stream is payable for a fixed number of years—that number; or

                     (b)  if the income stream is payable during the lifetime of a person and no longer—the number of years of the person’s life expectancy; or

                     (c)  if the income stream:

                              (i)  is jointly owned by a person and his or her partner and is payable for the lifetime of the person or the partner; or

                             (ii)  is payable during the lifetime of a person and then for the lifetime of a reversionary beneficiary;

                            the number of years in the longer of the relevant life expectancies; or

                     (d)  in any other case—the number that the Commission considers appropriate having regard to the number of years in the total period during which the income stream will be, or may reasonably be expected to be, payable.

residual capital value, in relation to an income stream, means the capital amount payable on the termination of the income stream.

Note:          An account‑based income stream does not have a residual capital value (see subsection (9) of this section).

retirement savings account has the meaning that it has in the Retirement Savings Accounts Act 1997.

return:

                     (a)  in relation to an ATO small superannuation account—means so much of the balance of the account as is attributable to interest; or

                    (aa)  in relation to an investment in an FHSA (within the meaning of the First Home Saver Accounts Act 2008)—means any increase, whether of a capital or income nature and whether or not distributed, in the value or amount of the investment; or

                     (b)  in relation to any other investment (including an investment in the nature of superannuation)—means any increase, whether of a capital or income nature and whether or not distributed, in the value or amount of the investment.

secondary FLA income stream has the meaning given by section 5JC.

superannuation benefit, in relation to a person, means:

                     (a)  a benefit arising directly or indirectly from amounts contributed (whether by the person or by any other person) to a superannuation fund in respect of the person; or

                     (b)  a payment under Part 7 of the Small Superannuation Accounts Act 1995, where the payment is in respect of an ATO small superannuation account kept in the name of the person.

superannuation contributions surcharge has the meaning that it has in the Superannuation Contributions Tax (Assessment and Collection) Act 1997.

superannuation fund means:

                     (a)  a fund that is or has been a complying superannuation fund within the meaning of section 45 of the Superannuation Industry (Supervision) Act 1993 in relation to any tax year; or

                     (b)  an Australian superannuation fund (within the meaning of the Income Tax Assessment Act 1997) that is not a complying superannuation fund mentioned in paragraph (a) in relation to any tax year; or

                     (c)  a scheme for the payment of benefits upon retirement or death that is constituted by or under a law of the Commonwealth or of a State or Territory; or

                     (d)  an RSA within the meaning of the Retirement Savings Accounts Act 1997; or

                     (e)  any of the following funds (unless the fund is a foreign superannuation fund):

                              (i)  a fund to which paragraph 23(jaa), or section 23FC, 121CC or 121DAB, of the Income Tax Assessment Act 1936 (as in force at any time before the commencement of section 1 of the Taxation Laws Amendment Act (No. 2) 1989) has applied in relation to any tax year;

                             (ii)  a fund to which paragraph 23(ja), or section 23F or 23FB, of the Income Tax Assessment Act 1936 (as in force at any time before the commencement of paragraph (a) of the definition of superannuation fund in former subsection 27A(1) of the Income Tax Assessment Act 1936) has applied in relation to the tax year that started on 1 July 1985 or an earlier tax year;

                            (iii)  a fund to which section 79 of the Income Tax Assessment Act 1936 (as in force at any time before 25 June 1984) has applied in relation to the tax year that started on 1 July 1983 or an earlier tax year.

Note:          For foreign superannuation fund see subsection 5L(1).

unlisted public security means:

                     (a)  a share in a public company; or

                     (b)  another security;

that is not listed on a stock exchange.

          (1A)  Subject to subsections (1B) and (1C), an investment is a managed investment for the purposes of this Act if:

                     (a)  the money or property invested is paid by the investor directly or indirectly to a body corporate or into a trust fund; and

                     (b)  the assets that represent the money or property invested (the invested assets) are not held in the names of investors; and

                     (c)  the investor does not have effective control over the management of the invested assets; and

                     (d)  the investor has a legally enforceable right to share in any distribution of income or profits derived from the invested assets.

          (1B)  Without limiting the generality of subsection (1A) but subject to subsection (1C), the following are managed investments for the purposes of this Act:

                     (a)  an investment in a public unit trust;

                     (b)  an investment in an insurance bond;

                     (c)  an investment with a friendly society;

                     (d)  an investment in a superannuation fund;

Note:       see paragraph (1C)(a) for superannuation investments held before pension age is reached.

                     (e)  an investment in an approved deposit fund;

Note:       see paragraph (1C)(b) for investments in approved deposit funds held before pension age is reached.

                      (f)  an investment in a deferred annuity;

Note:       see paragraph (1C)(c) for deferred annuities held before pension age is reached.

                     (g)  an investment in an ATO small superannuation account.

Note:       See paragraph (1C)(ca) for investments in ATO small superannuation accounts held before pension age is reached.

          (1C)  The following are not managed investments for the purposes of this Act:

                     (a)  an investment in a superannuation fund if the investor has not yet turned pension age;

                     (b)  an investment in an approved deposit fund if the investor has not yet turned pension age;

                     (c)  an investment in a deferred annuity if the investor has not yet turned pension age;

                    (ca)  an investment in an ATO small superannuation account if the investor has not yet turned pension age;

                   (cb)  an investment in an FHSA (within the meaning of the First Home Saver Accounts Act 2008);

                     (d)  deposit money;

                     (e)  a loan;

                      (f)  an asset‑test exempt income stream;

                     (g)  an asset‑tested income stream (long term);

                     (h)  an asset‑tested income stream (short term).

Note 1:       for pension age see subsection (1D) and sections 5QA and 5QB.

Note 2:       for deposit money see subsection 5H(1).

Note 3:       For provisions relating to when a loan is taken to be made see subsection (2).

Note 4:       Asset‑test exempt income streams are dealt with under sections 46T to 46VA.

Note 5:       Asset‑tested income streams (long term) are dealt with under sections 46W to 46YA.

          (1D)  For the purposes of the application of subsection (1C) in relation to income support supplement, the references in paragraphs (1C)(a), (b) and (c) to pension age are taken to be references to the qualifying age.

Note:          For qualifying age see section 5Q.

          (1E)  An income stream is a defined benefit income stream if:

                     (a)  under the Superannuation Industry (Supervision) Regulations 1994, the income stream is taken to be a pension for the purposes of the Superannuation Industry (Supervision) Act 1993; and

                     (b)  except in the case of an income stream arising under a superannuation fund established before 20 September 1998—the income stream is provided under rules that meet the standards of subregulation 1.06(2) of the Superannuation Industry (Supervision) Regulations 1994; and

                   (ba)  in the case of an income stream arising under a superannuation fund established before 20 September 1998—the income stream is provided under rules that meet the standards determined, by legislative instrument, by the Minister; and

                     (c)  in any case—the income stream is attributable to a defined benefit interest within the meaning of the Superannuation Industry (Supervision) Regulations 1994 (for this purpose, disregard subparagraph 1.03AA(1)(b)(ii) of those regulations).

           (1F)  The Commission may determine, by legislative instrument, guidelines to be complied with when designating an income stream for the purposes of the definition of income stream in subsection (1).

             (2)  The following rules apply for the purposes of this Act:

                     (a)  the acquisition by a person of debentures, bonds or other securities is treated as the making of a loan by the person;

                     (b)  a person is not treated as having made a loan merely because:

                              (i)  the person has an account with a financial institution; or

                             (ii)  the person has paid an entry contribution.

Note:          For entry contribution see section 52M.

          (2A)  Subsection (2) does not limit the meaning of the word loan in this Act.

          (2B)  For the purposes of this Act, an asset is a deprived asset if:

                     (a)  a person has disposed of the asset; and

                     (b)  the value of the asset is included in the value of the person’s assets by Subdivision BA or BB of Division 11 of Part IIIB.

Note:          For circumstances in which a person is taken to dispose of assets see section 52E.

          (2C)  To avoid doubt, neither an accommodation bond (within the meaning of the Aged Care Act 1997: see subsection 5L(1) of this Act) nor an accommodation bond balance (within the meaning of that Act) is a financial investment for the purposes of this Act.

             (6)  For the purposes of this Act, a person has an investment in a superannuation fund, approved deposit fund or deferred annuity if the person has benefits in the fund or under the annuity (whether the benefits are attributable to amounts paid by the person or someone else).

          (6A)  For the purposes of this Act:

                     (a)  a person has an investment in an ATO small superannuation account if:

                              (i)  the account is kept in the name of the person; and

                             (ii)  the balance of the account exceeds nil; and

                     (b)  the amount or value of that investment equals the balance of the account.

          (6B)  For the purposes of this Act, a person has an investment in an FHSA (within the meaning of the First Home Saver Accounts Act 2008) if the person has benefits in the FHSA (whether the benefits are attributable to amounts paid by the person or someone else).

             (9)  To avoid doubt, for the purposes of this Act, an account‑based income stream does not have a residual capital value.

5JA  Meaning of asset‑test exempt income stream—lifetime income streams

General requirements

             (1)  An income stream provided to a person is an asset‑test exempt income stream for the purposes of this Act if:

                    (aa)  subject to subsection (1AA), the income stream’s commencement day happens before 20 September 2007; and

                     (a)  it is an income stream arising under a contract, or governing rules, that meet the requirements of subsection (2) and the Commission has not made a determination under subsection (4) in respect of the income stream; and

                     (b)  subject to subsections (1B), (1C) and (1D), the Commission is satisfied that in relation to an income stream, provided by a class of provider specified by the Commission for the purposes of this paragraph, there is in force a current actuarial certificate that states that the actuary is of the opinion that, for the financial year in which the certificate is given, there is a high probability that the provider of the income stream will be able to pay the income stream as required under the contract or governing rules; and

                     (c)  the Commission is satisfied that the requirements of subsection (2) are being given effect to from the commencement day of the income stream.

Note:          For paragraph (b), financial year means a period of 12 months commencing on 1 July: see the Acts Interpretation Act 1901.

Determination under subsection (5)

          (1A)  An income stream provided to a person is an asset‑test exempt income stream for the purposes of this Act if the Commission has made a determination under subsection (5) in respect of the income stream.

Defined benefit income streams

       (1AA)  Paragraph (1)(aa) does not apply if the income stream is a defined benefit income stream.

Guidelines relating to actuarial certificates

          (1B)  The Commission may determine, by legislative instrument, guidelines to be complied with when determining whether an actuarial certificate is in force.

Exception to paragraph (1)(b)

          (1C)  If, on 30 June in a financial year, an actuarial certificate referred to in paragraph (1)(b) is in force in relation to an income stream, then paragraph (1)(b) does not apply in relation to the next financial year (the later year) for the period:

                     (a)  beginning on 1 July of the later year; and

                     (b)  ending at the earlier of the following:

                              (i)  the start of the first day in the later year on which any actuarial certificate is given to the Commission in relation to that income stream;

                             (ii)  the end of the period of 26 weeks beginning on 1 July of the later year.

One certificate a financial year

          (1D)  For the purposes of paragraph (1)(b), if an actuarial certificate is given to the Commission in a financial year in relation to an income stream, then any actuarial certificate given to the Commission later in that financial year in relation to that income stream has no effect.

Requirements of contract/governing rules for provision of income stream

             (2)  A contract, or the governing rules, for the provision of an income stream to a person meet the requirements of this subsection if the contract or governing rules specify:

                     (a)  that payments under the income stream are to be made at least annually throughout the life of the person and, if there is a reversionary beneficiary:

                              (i)  throughout the reversionary beneficiary’s life; or

                             (ii)  if the reversionary beneficiary is a child of the person or of a former reversionary beneficiary under the income stream—at least until he or she turns 16; or

                            (iii)  if the child referred to in subparagraph (ii) is a full‑time student who has turned 16—at least until the end of his or her full‑time studies or until he or she turns 25, whichever occurs sooner; and

                     (b)  the total amount of the payments that may be made under the income stream in the first year after the commencement day of the income stream (not taking commuted amounts into account); and

                     (c)  that the total amount of the payments that may be made under the income stream in any other year (not taking commuted amounts into account) may not fall below the total amount of the payments made under the income stream in the immediately preceding year (the previous total), and may not exceed the previous total:

                              (i)  if subparagraph (ii) does not apply—by more than 5% of the previous total; or

                             (ii)  if the index number for the second last quarter before the day on which the first of those payments is to be made (recent index number) exceeds the index number for the same quarter in the immediately preceding year (base index number) by more than 4% of the base index number—by more than such percentage of the previous total as is worked out under the formula:

                     (d)  if the income stream is purchased by or for the primary beneficiary—that the first payment under the income stream relates to the period commencing on the day of that purchase; and

                     (e)  if the income stream is not purchased, but acquired, by or for the primary beneficiary—that the first payment under the income stream relates to the period commencing on the day of that acquisition; and

                      (f)  if the income stream is not a defined benefit income stream—that the amount paid as the purchase price for the income stream is wholly converted into income; and

                     (g)  that the income stream has no residual capital value; and

                     (h)  that the income stream cannot be commuted except:

                              (i)  if the income stream is a non‑commutation funded income stream and the commutation is made within 6 months after the commencement day of the income stream; or

                             (ii)  if the commutation is made to the benefit of a reversionary beneficiary or of the person’s estate, on the death of the person within the life expectancy period for the income stream; or

                            (iii)  if the payment resulting from the commutation is transferred directly to the purchase of another income stream that is an asset‑test exempt income stream; or

                            (iv)  to the extent necessary to cover any superannuation contributions surcharge relating to the income stream; or

                          (iva)  to the extent necessary to give effect to an entitlement of the person’s partner or former partner under a payment split under Part VIIIB of the Family Law Act 1975; or

                          (ivb)  to the extent necessary to give effect to an order under Part VIIIAA of the Family Law Act 1975; or

                             (v)  to the extent necessary to pay a hardship amount; and

Note 1:    For non‑commutation funded income stream, see subsection (7).

Note 1A: For life expectancy period, see subsection (7).

Note 1B: For asset‑test exempt income stream, see section 5J.

Note 2:    For hardship amount see subsection (7).

                      (i)  that the income stream cannot be transferred to a person except:

                              (i)  on the death of the primary beneficiary, to a reversionary beneficiary; or

                             (ii)  on the death of a reversionary beneficiary, to another reversionary beneficiary; and

                      (j)  that neither the capital value of the income stream, nor the income from it, can be used as security for a borrowing; and

                     (k)  that, if the income stream reverts, it must not have a reversionary component greater than the benefit that was payable immediately before the reversion; and

                      (l)  that, if the income stream is commuted, the commuted amount must not be greater than the benefit that was payable immediately before the commutation.

          (2A)  A contract, or the governing rules, for the provision to a person of an income stream that meets all of the requirements of subsection (2), except the requirement of paragraph (2)(c), are taken to meet the requirements of subsection (2) if the contract or governing rules specify that any provision included in the contract or governing rules in accordance with paragraph (2)(c) does not apply in any year in which:

                     (a)  the person ceases to receive income under an income stream jointly and begins to receive income under a single income stream; and

                     (b)  the total amount received in the year under the single income stream is less than the total amount received by the person in the previous year but is not nil.

Matters not required of income stream

             (3)  For the purpose of determining whether an income stream meets the requirements of subsection (2), it is immaterial that:

                     (a)  if the primary beneficiary dies within the life expectancy period for the income stream, a surviving reversionary beneficiary may be paid an amount equal to the total of the payments that the primary beneficiary would (if he or she had not died) have received from the day of the death until the end of that period; and

                     (b)  if:

                              (i)  the primary beneficiary dies within the life expectancy period for the income stream; and

                             (ii)  there is no surviving reversionary beneficiary;

                            an amount, not exceeding the difference between:

                            (iii)  the sum of the amounts that would have been so payable to the primary beneficiary in that period; and

                            (iv)  the sum of the amounts paid to the primary beneficiary;

                            is payable to the primary beneficiary’s estate, and

                     (c)  if:

                              (i)  the primary beneficiary dies within the life expectancy period for the income stream; and

                             (ii)  there is a surviving reversionary beneficiary who also dies within that period;

                            there is payable to the reversionary beneficiary’s estate an amount determined as described in paragraph (b) as if that paragraph applied to the reversionary beneficiary.

Determination that income stream not asset‑test exempt

             (4)  The Commission may determine that an income stream that meets the requirements of subsection (2) is not an asset‑test exempt income stream if the Commission is satisfied that the person who has purchased the income stream has commuted an asset‑test exempt income stream within 6 months after its commencement day on at least 3 occasions since the person first received a service pension, an income support supplement or a social security payment.

Determination that income stream is asset‑test exempt

             (5)  The Commission may determine, in writing, that an income stream is an asset‑test exempt income stream for the purposes of this Act. In making the determination, the Commission is to have regard to the guidelines (if any) determined under subsection (6).

          (5A)  To avoid doubt, a determination under subsection (5) may be made in respect of an income stream regardless of the income stream’s commencement day.

          (5B)  A determination under subsection (5) is not a legislative instrument.

Guidelines to be complied with in making determination

             (6)  The Commission may determine, by legislative instrument, guidelines to be complied with when making a determination under subsection (5).

Definitions

             (7)  In this section:

hardship amount, in relation to a person, means an amount determined by the Commission for the purposes of this definition if:

                     (a)  the person applies in writing to the Commission to be allowed to commute the whole or part of an income stream because of extreme financial hardship; and

                     (b)  the Commission is satisfied that:

                              (i)  the person’s circumstances are exceptional and could not be reasonably foreseen at the time the person purchased the income stream; and

                             (ii)  the person has insufficient liquid assets or other assets (excluding the person’s principal home) that could be realised to avoid the extreme financial hardship; and

                            (iii)  that amount is required to meet unavoidable expenditure.

life expectancy period, for an income stream, means:

                     (a)  in a case where:

                              (i)  there was only one primary beneficiary on the commencement day; and

                             (ii)  the primary beneficiary has decided not to round up his or her life expectancy for the purposes of this definition;

                            the period starting on the income stream’s commencement day, and equal to the shorter of:

                            (iii)  the primary beneficiary’s life expectancy on the commencement day; and

                            (iv)  20 years; or

                     (b)  in a case where:

                              (i)  there was only one primary beneficiary on the commencement day; and

                             (ii)  paragraph (a) does not apply;

                            the period starting on the income stream’s commencement day, and equal to the shorter of:

                            (iii)  the primary beneficiary’s life expectancy (rounded up, if not consisting of a whole number of years, to the next whole number) on the commencement day; and

                            (iv)  20 years; or

                     (c)  in a case where:

                              (i)  there were 2 primary beneficiaries on the commencement day; and

                             (ii)  those primary beneficiaries have decided not to round up their life expectancies for the purposes of this definition;

                            the period starting on the income stream’s commencement day, and equal to the shorter of:

                            (iii)  the greater of the life expectancies, on the commencement day, of the primary beneficiaries; and

                            (iv)  20 years; or

                     (d)  in a case where:

                              (i)  there were 2 primary beneficiaries on the commencement day; and

                             (ii)  paragraph (c) does not apply;

                            the period starting on the income stream’s commencement day, and equal to the shorter of:

                            (iii)  the greater of the life expectancies (rounded up, if not consisting of a whole number of years, to the next whole number), on the commencement day, of the primary beneficiaries; and

                            (iv)  20 years.

liquid assets, in relation to a person, means the person’s cash and readily realisable assets, and includes:

                     (a)  the person’s shares and debentures in a public company within the meaning of the Corporations Act 2001; and

                     (b)  managed investments; and

                     (c)  insurance policies that can be surrendered for money; and

                     (d)  amounts deposited with, or lent to, a bank or other financial institution by the person (whether or not the amount can be withdrawn or repaid immediately); and

                     (e)  amounts due, and able to be paid, to the person by, or on behalf of, a former employer of the person.

non‑commutation funded income stream means an income stream that has not been purchased by transferring directly to the purchase of the income stream a payment resulting from the commutation of another asset‑test exempt income stream.

unavoidable expenditure, in relation to a person, means one or more of the following:

                     (a)  essential medical expenses of the person, or the person’s partner, to the extent that the expenses are not covered by health insurance or other contracts or arrangements;

                     (b)  the cost of:

                              (i)  replacing the person’s principal home; or

                             (ii)  essential repairs to the person’s principal home;

                            to the extent that the cost of the replacement or repairs is not covered by an insurance policy;

                     (c)  expenditure to buy replacement essential household goods because of the loss of those goods to the extent that the cost of replacement is not covered by an insurance policy.

5JB  Meaning of asset‑test exempt income stream—life expectancy income streams

             (1)  An income stream provided to a person is also an asset‑test exempt income stream for the purposes of this Act if:

                     (a)  the following criteria are satisfied:

                              (i)  the income stream’s commencement day happens before 20 September 2007;

                             (ii)  subsection (1A) applies; or

                     (b)  subsection (1B) applies.

No determination under subsection (3)

          (1A)  This subsection applies if:

                    (aa)  the person to whom the income stream is being provided is:

                              (i)  the primary beneficiary; or

                             (ii)  the primary beneficiary’s reversionary partner (if any) on the day of the primary beneficiary’s death; and

Note:       For reversionary partner, see subsection (7).

                     (a)  the income stream is an income stream arising under a contract, or governing rules, that meet the requirements of subsection (2) and the Commission has not made a determination under subsection (3) in respect of the income stream; and

                     (b)  subject to subsections (1C), (1D) and (1E), the Commission is satisfied that, in relation to an income stream provided by a class of provider specified by the Commission for the purposes of this paragraph, there is in force a current actuarial certificate that states that the actuary is of the opinion that, for the financial year in which the certificate is given, there is a high probability that the provider of the income stream will be able to pay the income stream as required under the contract or governing rules; and

                     (c)  the Commission is satisfied that the requirements of subsection (2) have been given effect to from the commen