Federal Register of Legislation - Australian Government

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No. R7/2009 Determinations/Veterans' Entitlements as made
This Determination exempts a certain payment from the definition of "ordinary income" in the Veterans' Entitlements Act 1986 which means the payment is not assessed as income under the means test for an income-support payment. The payment covered by the instrument is a one-off cash payment made eligible to Manchester Unity (Health Fund) members in consideration of the cancellation of their Manchester Unity membership.
Administered by: Veterans' Affairs
Registered 15 Jan 2009
Tabling HistoryDate
Tabled HR03-Feb-2009
Tabled Senate03-Feb-2009
Date of repeal 19 Mar 2014
Repealed by Veterans' Affairs (Spent and Redundant Instruments) Repeal Regulation 2014



Veterans’ Entitlements Income (Exempt Lump Sum – Manchester Unity and HCF Merger Payments) Determination


Instrument No. R7/2009


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 attached 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.



On 19 December 2008 the Federal Court approved the merger of Manchester Unity and the Hospitals Contribution Fund of Australia (HCF). The merger is effective as of 24 December 2008.


As a result of the merger of Manchester Unity and HCF, eligible Manchester Unity members will receive an entitlement in the form of a cash payment. An eligible member is a person who held, or had applied for, a health insurance or friendly society policy on or before 27 August 2008. Payments will be made in January 2009.


The cash payment to Manchester Unity members will be made in consideration for the cancellation of their Manchester Unity membership. The entitlement of a Manchester Unity member will be calculated by reference to the type and style of policy held by the member and the time they have held their membership.


Members may also receive an adjustment to their entitlement. After all requests for reviews of entitlements have been dealt with, the balance of the merger consideration will be distributed as part of a member’s entitlement.


It is expected that the eligible Manchester Unity health fund members will receive a cash payment in respect of their health fund policy ranging from a minimum of $250 up to a maximum of $7,640, with the majority in the range of up to $3,000.


The effect of the attached 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 receiving a one-off cash payment as a result of the merger of Manchester Unity with HCF because the cash payment will not be regarded as income for the purposes of the VEA income test.


The Instrument is taken to have commenced on 5 January 2009. For the purposes of section 12 of the Legislative Instruments Act 2003 (prohibition on certain legislative instruments commencing before registration) the Instrument does not disadvantage any person nor impose any liabilities on any person (other than the Commonwealth).



The Department has consulted with the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) regarding this exemption. FaHCSIA has confirmed that it will also be exempting a cash payment as a result of the merger of Manchester Unity with HCF.

The attached instrument is beneficial to eligible Department of Veterans’ Affairs income support recipients because it exempts a cash payment as a result of the merger of Manchester Unity with HCF from the VEA income test. Public consultation was therefore seen as unnecessary.