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This is a Bill, not an Act. For current law, see the Acts databases.
1998-99
The Parliament of
the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
Compensation
for Non-economic Loss (Social Security and Veterans’ Entitlements
Legislation Amendment) Bill 1999
No. ,
1999
(Family and Community
Services)
A Bill for an Act to amend the
Social Security Act 1991 and the Veterans’ Entitlements Act
1986, and for related purposes
ISBN: 0642 391343
Contents
A Bill for an Act to amend the Social Security Act
1991 and the Veterans’ Entitlements Act 1986, and for related
purposes
The Parliament of Australia enacts:
This Act may be cited as the Compensation for Non-economic Loss
(Social Security and Veterans’ Entitlements Legislation Amendment) Act
1999.
(1) Subject to subsection (2), this Act commences on the day on which it
receives the Royal Assent.
(2) Subject to subsection (3), Schedules 1 and 2 commence on a day to be
fixed by Proclamation.
(3) If Schedules 1 and 2 do not commence under subsection (2) within the
period of 12 months commencing on the day on which this Act receives the Royal
Assent, they commence on the first day after the end of that period.
Subject to section 2, each Act that is specified in a Schedule to this
Act is amended or repealed as set out in the applicable items in the Schedule
concerned, and any other item in a Schedule to this Act has effect according to
its terms.
1 Section 3 (index of
definitions)
Insert in its appropriate alphabetical position, determined on a
letter-by-letter basis:
|
solely to compensate for non-economic loss |
17B |
2 Subsection 17(1) (definition of
compensation payer)
Repeal the definition, substitute:
compensation payer means:
(a) a person who is liable to make:
(i) a compensation payment; or
(ii) a payment solely to compensate for non-economic loss; or
(b) an authority of a State or Territory that has determined that it will
make:
(i) a payment by way of compensation; or
(ii) a payment solely to compensate for non-economic loss;
to another person, whether or not the authority is liable to make the
payment.
3 Subsection 17(2)
After “this Act”, insert “other than a provision that
refers to a payment made solely to compensate for non-economic
loss”.
4 Subsection 17(6)
After “reference in”, insert “subsection 17B(4)
or”.
5 Subsection 17(6)
After “claim for compensation”, insert “or a claim for a
payment made solely to compensate for non-economic loss”.
6 After section 17A
Insert:
(1) Subject to this section, a payment received by a person is taken for
the purposes of this Act to be a payment made solely to compensate for
non-economic loss if:
(a) it is:
(i) a payment of damages; or
(ii) a payment under a scheme of insurance or compensation under a
Commonwealth, State or Territory law, including a payment under a contract
entered into under such a scheme; or
(iii) a payment (with or without admission of liability) in settlement of
a claim for damages or a claim under such a scheme; or
(iv) any other payment made to compensate the person for an injury or
disease;
(whether the payment is in the form of a lump sum or in the form of a
series of 2 or more periodic payments) that is made within or outside Australia;
and
(b) no part of the payment is in respect of lost earnings or lost capacity
to earn.
(2) Subsection (1) does not apply to:
(a) a payment to which subsection 17(2B) applies; or
(b) a payment of disability pension under the Veterans’
Entitlements Act 1986.
(3) Subject to subsection (4), a person receives a payment
for the purposes of subsection (1) whether the person receives it directly or
whether someone else receives it on behalf of, or at the direction of, the
person.
(4) If:
(a) a person has an injury or is suffering from a disease; and
(b) a payment that:
(i) arises out of a circumstance or event that caused or contributed to
the injury or disease; or
(ii) results from the injury or disease;
is made, at the direction of a compensation payer or an insurer who is,
under a contract of insurance, liable to indemnify a compensation payer or a
potential compensation payer, to someone other than the person for a specific
purpose that is for the benefit of the person;
the person is not taken for the purposes of subsection (1) to have received
the payment.
7 Point 1067G-H23
Omit “section 1073”, substitute “sections 1073 and
1073A”.
8 Point 1067L-D19
Omit “section 1073”, substitute “sections 1073 and
1073A”.
9 Point 1068-G7A
Omit “section 1073”, substitute “sections 1073 and
1073A”.
10 At the end of section
1073
Add:
(3) Subsection (1) does not apply to the amount of a payment made solely
to compensate for non-economic loss where the payment is received on or after
the date of commencement of this subsection.
11 At the end of Division 1 of Part
3.10
Add:
(1) This section applies to a payment or payments made solely to
compensate for non-economic loss but so applies only where the payment or
payments are received on or after the date of commencement of this
section.
Note: For solely to compensate for non-economic
loss see section 17B.
(2) Subject to subsections (4) and (9), if a payment is not one of a
series of 2 or more periodic payments or is the first payment in such a series
of periodic payments:
(a) where the amount of the payment does not exceed $10,000—the
amount is not ordinary income for the purposes of this Act; or
(b) where the amount of the payment exceeds $10,000:
(i) the part of the amount that does not exceed $10,000 is not ordinary
income for the purposes of this Act; and
(ii) the person who received the payment is taken, for the purposes of
this Act, to receive one-twenty-sixth of the part of the amount that exceeds
$10,000 as ordinary income of the person during the fortnight beginning on the
day on which the payment was received by the person and during each of the next
25 fortnights.
(3) Subject to subsections (4) and (9), if:
(a) a person receives a series of 2 or more periodic payments;
and
(b) the amount of the only payment, or the sum of the amounts of the
payments, in the series received by the person in a particular calculation
period exceeds $10,000;
the person is taken, for the purposes of this Act, to receive
one-twenty-sixth of the amount of the payment, or of the sum of the amounts of
the payments, referred to in paragraph (b) as ordinary income of the person
during the fortnight beginning on the day on which the payment, or the first of
the payments, referred to in that paragraph was received by the person and
during each of the next 25 fortnights.
(4) Subject to subsection (9), if:
(a) a payment is not one of a series of 2 or more periodic payments;
or
(b) a payment is the first payment in such a series of periodic payments;
or
(c) a payment is a payment in respect of which subsection (3)
applies;
and the person who received the payment exchanges the whole or any part of
the amount of the payment for an income stream, this Act applies in respect
of:
(d) the amount, or the part of the amount, that is exchanged for an income
stream; and
(e) the payments constituting the income stream;
with such modifications as are prescribed by regulations made for the
purposes of this subsection.
Note: For income stream see subsection
9(1).
(5) Regulations made for the purposes of subsection (4) may make different
provisions applying in respect of different circumstances including, for
example, provisions that differ according to the periods within which amounts
are exchanged for income streams.
(6) If a series of 2 or more periodic payments are received by a person,
subsections (7) and (8) apply in respect of payments in the series, other than
the first payment and payments in respect of which subsection (3)
applies.
(7) Subject to subsection (9), if the amount of the only payment, or the
sum of the amounts of the payments, received in a particular calculation period
does not exceed $2,000, the amount, or each of the amounts, is not ordinary
income for the purposes of this Act.
(8) Subject to subsection (9), if the amount of the only payment, or the
sum of the amounts of the payments, received in a particular calculation period
exceeds $2,000, the amount, or each of the amounts, is ordinary income for the
purposes of this Act.
Note: This subsection does not apply to a payment the amount
of which, or payments the sum of the amounts of which, exceeds $10,000 because
subsection (3) applies in respect of such payments (see subsection
(6)).
(9) A payment is to be disregarded for the purposes of this section to the
extent (if any) to which the payment has been, or is to be, taken into account
in determining the amount of a disability pension under the Veterans’
Entitlements Act 1986.
(10) In this section:
calculation period, in relation to a series of 2 or more
periodic payments, means:
(a) the period of 28 days beginning on the day after the day on which the
first payment in the series is received; or
(b) any succeeding period of 28 days.
modification means:
(a) the alteration of a provision; or
(b) the addition of a provision; or
(c) the omission of a provision.
1 Section 5 (index of
definitions)
Insert in its appropriate alphabetical position, determined on a
letter-by-letter basis:
|
solely to compensate for non-economic loss |
5H(12) |
2 At the end of section 5H
Add:
(12) Subject to the following provisions of this section, a payment
received by a person is taken for the purposes of this Act to be a payment made
solely to compensate for non-economic loss if:
(a) it is:
(i) a payment of damages; or
(ii) a payment under a scheme of insurance or compensation under a
Commonwealth, State or Territory law, including a payment under a contract
entered into under such a scheme; or
(iii) a payment (with or without admission of liability) in settlement of
a claim for damages or a claim under such a scheme; or
(iv) any other payment made to compensate the person for an injury or
disease;
(whether the payment is in the form of a lump sum or in the form of a
series of 2 or more periodic payments) that is made within or outside Australia;
and
(b) no part of the payment is in respect of lost earnings or lost capacity
to earn.
(13) Subsection (12) does not apply to a payment to which subsection
5NB(6A) applies.
(14) Subject to subsection (15), a person receives a payment
for the purposes of subsection (12) whether the person receives it directly or
whether someone else receives it on behalf of, or at the direction of, the
person.
(15) If:
(a) a person has an injury or is suffering from a disease; and
(b) a payment that:
(i) arises out of a circumstance or event that caused or contributed to
the injury or disease; or
(ii) results from the injury or disease;
is made, at the direction of a compensation payer or an insurer who is,
under a contract of insurance, liable to indemnify a compensation payer or a
potential compensation payer, to someone other than the person for a specific
purpose that is for the benefit of the person;
the person is not taken for the purposes of subsection (12) to have
received the payment.
3 Subsection 5NB(1) (definition of
compensation payer)
Repeal the definition, substitute:
compensation payer means:
(a) a person who is liable to make:
(i) a compensation payment; or
(ii) a payment solely to compensate for non-economic loss; or
(b) an authority of a State or Territory that has determined that it will
make:
(i) a payment by way of compensation; or
(ii) a payment solely to compensate for non-economic loss;
to another person, whether or not the authority is liable to make the
payment.
4 After subsection 5NB(6)
Insert:
(6A) For the purposes of Part IIIC, if:
(a) a person receives more than one lump sum payment, whether
simultaneously or at different times, in relation to one or more injuries
arising from the same event (see subsection (11)); and
(b) at least one of the payments is made wholly or partly in respect of
lost earnings or lost capacity to earn;
the person is taken to receive one lump sum compensation payment, made
wholly or partly in respect of lost earnings or lost capacity to earn, of an
amount equal to the sum of those lump sum payments.
5 Subsection 5NB(12)
After “reference in”, insert “subsection 5H(15)
or”.
6 Subsection 5NB(12)
After “claim for compensation”, insert “or a claim for a
payment made solely to compensate for non-economic loss”.
7 At the end of section 46A
Add:
(2) Subsection (1) does not apply to the amount of a payment made solely
to compensate for non-economic loss where the payment is received on or after
the date of commencement of this subsection.
8 After Division 7 of Part
IIIB
Insert:
This Division applies to a payment or payments made solely to compensate
for non-economic loss but so applies only where the payment or payments are
received on or after the date of commencement of this Division.
Note: For solely to compensate for non-economic
loss see subsection 5H(12).
(1) Subject to subsections (3) and (8), if a payment is not one of a
series of 2 or more periodic payments or is the first payment in such a series
of periodic payments:
(a) where the amount of the payment does not exceed $10,000—the
amount is not ordinary income for the purposes of this Act; or
(b) where the amount of the payment exceeds $10,000:
(i) the part of the amount that does not exceed $10,000 is not ordinary
income for the purposes of this Act; and
(ii) the person who received the payment is taken, for the purposes of
this Act, to receive one-twenty-sixth of the part of the amount that exceeds
$10,000 as ordinary income of the person during the fortnight beginning on the
day on which the payment was received by the person and during each of the next
25 fortnights.
(2) Subject to subsections (3) and (8), if:
(a) a person receives a series of 2 or more periodic payments;
and
(b) the amount of the only payment, or the sum of the amounts of the
payments, in the series received by the person in a particular calculation
period exceeds $10,000;
the person is taken, for the purposes of this Act, to receive
one-twenty-sixth of the amount of the payment, or of the sum of the amounts of
the payments, referred to in paragraph (b) as ordinary income of the person
during the fortnight beginning on the day on which the payment, or the first of
the payments, referred to in that paragraph was received by the person and
during each of the next 25 fortnights.
(3) Subject to subsection (8), if:
(a) a payment is not one of a series of 2 or more periodic payments;
or
(b) a payment is the first payment in such a series of periodic payments;
or
(c) a payment is a payment in respect of which subsection (2)
applies;
and the person who received the payment exchanges the whole or any part of
the amount of the payment for an income stream, this Act applies in respect
of:
(d) the amount, or the part of the amount, that is exchanged for an income
stream; and
(e) the payments constituting the income stream;
with such modifications as are prescribed by regulations made for the
purposes of this subsection.
Note: For income stream see subsection
5J(1).
(4) Regulations made for the purposes of subsection (3) may make different
provisions applying in respect of different circumstances including, for
example, provisions that differ according to the periods within which amounts
are exchanged for income streams.
(5) If a series of 2 or more periodic payments are received by a person,
subsections (6) and (7) apply in respect of payments in the series, other than
the first payment and payments in respect of which subsection (2)
applies.
(6) Subject to subsection (8), if the amount of the only payment, or the
sum of the amounts of the payments, received in a particular calculation period
does not exceed $2,000, the amount, or each of the amounts, is not ordinary
income for the purposes of this Act.
(7) Subject to subsection (8), if the amount of the only payment, or the
sum of the amounts of the payments, received in a particular calculation period
exceeds $2,000, the amount, or each of the amounts, is ordinary income for the
purposes of this Act.
Note: This subsection does not apply to a payment the amount
of which, or payments the sum of the amounts of which, exceeds $10,000 because
subsection (2) applies in respect of such payments (see subsection
(5)).
(8) A payment is to be disregarded for the purposes of this section to the
extent (if any) to which the payment has been, or is to be, taken into account
in determining the amount of a disability pension.
(9) In this section:
calculation period, in relation to a series of 2 or more
periodic payments, means:
(a) the period of 28 days beginning on the day after the day on which the
first payment in the series is received; or
(b) any succeeding period of 28 days.
modification means:
(a) the alteration of a provision; or
(b) the addition of a provision; or
(c) the omission of a provision.
9 Subsection 59Q(5)
Repeal the subsection.
10 Subsection 59Q(6)
Omit “none of subsections (3), (4) and (5)”, substitute
“neither subsection (3) nor (4)”.