Federal Register of Legislation - Australian Government

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No. R59/2010 Determinations/Veterans' Entitlements as made
This Determination exempts a payment known as the 'River Red Gum Structural Adjustment Package' 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 payment made to a person by Industry and Investment NSW under the program known as the 'River Red Gum Structural Adjustment Package'.
Administered by: Veterans' Affairs
Registered 28 Jul 2010
Tabling HistoryDate
Tabled HR28-Sep-2010
Tabled Senate28-Sep-2010
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Repealed by Veterans' Affairs (Spent and Redundant Instruments) Repeal Regulation 2014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 – River Red Gum Structural Adjustment Package Payment) Determination

 

Instrument No. R59/2010

 

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 section 1.2 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 NSW Government made an announcement on 2 March 2010 to establish protection over significant river red gum plantations. The Adjustment Package provides one-off payments to eligible workers in the forestry industry who are employed by, providing services under contract to, or in the case of a Working Principal, engaged in the day to day operations of, sawmills deciding to close as a result of the 2 March announcement. Worker Assistance would only apply to eligible workers as at 7 August 2009 who have been eligible workers for a continuous period of at least 6 months prior to 7 August 2009 until made redundant or had their contract or work terminated as a result of the 2 March announcement and who have made a formal application for assistance by 30 June 2011.

 

The purpose of this instrument is to ensure that a River Red Gum Structural Adjustment Package Payment 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 receiving a River Red Gum Structural Adjustment Package Payment because the payment will not be regarded as income for the purposes of the VEA income test.

 

Consultation

The Department has worked closely with the Department of Education, Employment and Workplace Relations (DEEWR) to ensure that this instrument has the same effect as a similar instrument proposed to be executed under the social security law.

This instrument is beneficial to customers because it exempts River Red Gum Structural Adjustment Package Payments from the VEA income test. Public consultation was therefore regarded as unnecessary.