Federal Register of Legislation - Australian Government

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No. R2/2007 Determinations/Veterans' Entitlements as made
This Determination exempts payments under the Tobacco Growers Adjustment Assistance Package 2006 from the definition of ordinary income in the Veterans' Entitlements Act 1986.
Administered by: Veterans' Affairs
Registered 08 Mar 2007
Tabling HistoryDate
Tabled HR20-Mar-2007
Tabled Senate20-Mar-2007
Date of repeal 19 Mar 2014
Repealed by Veterans' Affairs (Spent and Redundant Instruments) Repeal Regulation 2014

        EXPLANATORY STATEMENT

 

Veterans’ Entitlements Income (Exempt Lump Sum – Tobacco Growers Adjustment Assistance Package) Determination

 

 

2007 NO. R2

 

Paragraph 5H(12)(c) of the Veterans’ Entitlements Act 1986

 

The Purpose and Operation of the Attached Instrument

 

A payment is deemed not to be ordinary income for means-testing under the Veterans’ Entitlements Act 1986 (VEA) once it is stated to be an exempt lump sum by a determination under paragraph 5H(12)(c) of the VEA. The amount specified in the Determination at Part 2 of the Schedule as an exempt lump sum is an exempt lump sum for the purposes of the definition of ‘ordinary income’ in subsection 5H(1) of the VEA.

 

The attached instrument provides for the exemption of these payments from the income assessment of the person’s or the person’s partner’s service pension or income support supplement.

 

Background

 

The Tobacco Growers Adjustment Assistance Package (TGAAP) was approved by the Australian Government on 14 August 2006 and announced on 26 October 2006.  Under the package, tobacco growers are eligible for a restructure grant subject to meeting certain criteria.

 

Former north Queensland tobacco growers are eligible for the restructure grant if they:

  • had their tobacco growing licence cancelled in February 2004 by the Australian Taxation Office,
  • held shares in the Queensland Tobacco marketing Cooperative as at February 2004,
  • were a bona fide tobacco grower as at February 2004,
  • have not received payments under the Queensland Tobacco Assistance Package, and
  • undertake not to return to tobacco growing for a period of at least five years from the date they ceased growing tobacco.

 

Victorian tobacco growers are eligible for the restructure grant if they:

  • have decided to exit the tobacco industry,
  • held shares in the Tobacco Cooperative Victoria as at 26 October 2006,
  • were a bona fide tobacco producer as at 26 October 2006, and
  • undertake not to return to tobacco growing for a period of at least five years from the date the grower ceased growing tobacco.

South Queensland tobacco growers are eligible for the restructure grant if they:

  • have decided to exit the tobacco industry,
  • held shares in the South Queensland Tobacco Growers’ Cooperative Association Limited as at 26 October 2006,
  • were a bona fide tobacco producer as at 26 October 2006, and
  • undertake not to return to tobacco growing for a period of at least five years from the date the grower ceased growing tobacco.

 

 

The purpose of this instrument is to ensure that a restructure grant paid by the Australian Government under the TGAAP is an exempt lump sum for the purposes of paragraph 5H(12)(c) of the VEA.

 

The effect of this instrument is that people who are in receipt of an income support pension under the VEA will not have their income support payment reduced because of the restructure grant that they receive under the TGAAP as the grant will not be regarded as income for the purposes of the VEA income test.

 

The Prime Minister gave approval on 11 February 2007 for exempting restructure grants under the TGAAP for income support payment purposes.

 

Consultation

 

The Department of Families, Community Services and Indigenous Affairs (FaCSIA), the Department of Employment and Workplace Relations (DEWR) and the Department of Education, Science and Training (DEST) were consulted to ensure a consistent approach to the assessment of the restructure grants under the TGAAP for all income support recipients.

This instrument is beneficial to customers because it exempts restructure grants under the TGAAP from the VEA income test.  Public consultation was therefore regarded as unnecessary.

Retrospectivity

This instrument will operate from the date it is signed ie before registration.  However the instrument is beneficial in nature and does not affect the rights of a person, so as to disadvantage that person and nor does the instrument impose liabilities on any person in respect of matters existing before registration.

JR