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This is a Bill, not an Act. For current law, see the Acts databases.
1998-1999-2000-2001
The
Parliament of the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
Veterans’
Affairs Legislation Amendment (Further Budget 2000 and Other Measures) Bill
2001
No. ,
2001
(Veterans’
Affairs)
A Bill for an Act to amend the
Veterans’ Entitlements Act 1986, and for related
purposes
ISBN: 0642 459754
Contents
Veterans’ Entitlements Act
1986 3
Veterans’ Entitlements Act
1986 13
Part 1—Small superannuation
accounts 14
Veterans’ Entitlements Act
1986 14
Part 2—Other
amendments 17
Veterans’ Entitlements Act
1986 17
Veterans’ Entitlements Act
1986 27
A Bill for an Act to amend the Veterans’
Entitlements Act 1986, and for related purposes
The Parliament of Australia enacts:
This Act may be cited as the Veterans’ Affairs Legislation
Amendment (Further Budget 2000 and Other Measures) Act 2001.
(1) Sections 1, 2 and 3 commence on the day on which this Act
receives the Royal Assent.
(2) Part 1 of Schedule 3 is taken to have commenced on
1 July 1995.
(3) The other provisions of this Act commence, or are taken to have
commenced, on 20 September 2001.
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this Act is amended or repealed as set out in the applicable items in the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.
Veterans’
Entitlements Act 1986
1 Subsection 5NB(1) (note to the definition of
periodic payments period)
Repeal the note.
2 Subsection 5NB(2)
Omit “subsection (3), (4), (5) or (6)”, substitute
“subsection (3), (4), (5), (6) or (6A)”.
3 Paragraph 5NB(4)(b)
Repeal the paragraph, substitute:
(b) either:
(i) the agreement under which the contributions are made does not provide
for the amounts that would otherwise be payable under the agreement being
reduced or not payable because the recipient is eligible for or receives the
compensation affected pension under this Act; or
(ii) the agreement does so provide but the compensation payment has been
calculated without reference to the provision.
4 After subsection 5NB(6)
Insert:
(6A) A payment under a law of the Commonwealth, a State or a Territory
that provides for the payment of compensation for a criminal injury does not
constitute compensation for the purposes of this Act.
(6B) The reference in subsection (6A) to a criminal
injury is a reference to a personal injury suffered, or a disease or
condition contracted, as a result of the commission of an offence.
5 Subsection 5NB(7)
Omit “For the purposes”, substitute “Subject to
subsection (8), for the purposes”.
6 At the end of paragraph
5NB(7)(c)
Add “, or both”.
7 Paragraph 59N(c)
Omit “and”.
8 Paragraph 59N(d)
Repeal the paragraph.
9 Subsection 59Q(1)
After “person for”, insert “any day or days
in”.
10 Paragraph 59Q(2)(d)
After “person for”, insert “any day or days
in”.
11 Paragraph 59Q(2)(e)
After “partner for”, insert “any day or days
in”.
12 Subsection 59Q(2A)
After “person for”, insert “any day or days
in”.
13 Paragraph 59Q(3)(a)
Repeal the paragraph, substitute:
(a) begins on the day following the last day of the periodic payments
period or, if there is more than one periodic payments period, the day after the
last day of the last periodic payments period; and
14 Section 59Q
(example)
Repeal the example.
15 Paragraph 59R(1)(b)
After “pension for”, insert “any day or days
in”.
16 Paragraph 59R(5)(b)
Repeal the paragraph, substitute:
(b) the sum of the payments of the compensation affected pension made to
the person for a day or days in the lump sum preclusion period.
17 Section 59R
(example)
Repeal the example.
18 Section 59S
Omit “per fortnight of a pension”, substitute “of
compensation affected pension”.
19 Section 59T
Repeal the section, substitute:
(1) If:
(a) a person receives periodic compensation payments; and
(b) the person was not, at the time of the event that gave rise to the
entitlement of the person to the compensation, receiving a compensation affected
pension; and
(c) the person is eligible for a compensation affected pension for a day
or days in the periodic payments period;
the rate of the person’s compensation affected pension for that day
or those days is reduced in accordance with subsection (2).
Note: For periodic compensation
payments, compensation affected pension and periodic
payments period, see subsection 5NB(1).
(2) The person’s daily rate of compensation affected pension is
reduced by the amount of the person’s daily rate of periodic
compensation.
(3) The reference in subsection (2) to a daily rate of periodic
compensation is a reference to the amount worked out by dividing the total
amount of the periodic compensation payments referred to in
paragraph (1)(a) by the number of days in the periodic payments
period.
(4) If:
(a) a person receives periodic compensation payments; and
(b) at the time of the event that gave rise to the entitlement of the
person to compensation, the person was receiving a compensation affected
pension; and
(c) the person is eligible for a compensation affected pension for a day
or days in the periodic payments period;
the periodic compensation payments are to be treated as ordinary income of
the person for the purposes of this Act.
Note: For ordinary income, see subsection
5H(1).
(1) If:
(a) a person receives periodic compensation payments; and
(b) the person is a member of a couple; and
(c) the person was not, at the time of the event that gave rise to the
entitlement of the person to the compensation, receiving a compensation affected
pension; and
(d) the person is eligible for a compensation affected pension for a day
or days in the periodic payments period but, solely because of the operation of
this Part, does not, or would not, receive the pension; and
(e) the person’s partner is eligible for a compensation affected
pension, or is qualified for a compensation affected payment under the Social
Security Act, for a day or days in the periodic payments period;
then, in working out the amount of the pension or payment referred to in
paragraph (e), the amount (if any) by which the daily rate of periodic
compensation payable to the person exceeds the daily rate of the compensation
affected pension for which the person is eligible for a day or days in the
periodic payments period is to be treated as ordinary income of the
person’s partner.
Note 1: See also point SCH6-E3A for the effect of that
excess on the application of the ordinary/adjusted income test.
Note 2: For periodic compensation
payments, compensation affected pension and periodic
payments period, see subsection 5NB(1).
Note 3: For ordinary income, see subsection
5H(1).
(2) The reference in subsection (1) to a daily rate of periodic
compensation is a reference to the amount worked out by dividing the total
amount of the periodic compensation payments referred to in
paragraph (1)(a) by the number of days in the periodic payments
period.
20 Paragraph 59V(a)
Repeal the paragraph, substitute:
(a) the rate of a person’s compensation affected pension is to be
reduced under this Part; and
21 Subsection 59W(1) (note)
Omit “and a compensation debt is involved, see
subsections 56H(7) and (8)”, substitute “, see point
SCH6-E4”.
22 Paragraph 59W(3)(d)
Repeal the paragraph, substitute:
(d) the difference between:
(i) the sum of the payments of compensation affected pension made to the
person for a day or days in the periodic payments period; and
(ii) the sum of the payments of compensation affected pension that would
have been made to the person for any such day or days had those payments been
made at the rate to which the payments were reduced as a result of the operation
of section 59T.
23 Paragraph 59W(4)(d)
Repeal the paragraph, substitute:
(d) the difference between:
(i) the sum of the payments of compensation affected pension, and of
compensation affected payments under the Social Security Act, made to the person
and the person’s partner for a day or days in the periodic payments
period; and
(ii) the sum of the payments of compensation affected pension, and of
compensation affected payments under the Social Security Act, that would have
been made to the person and the person’s partner for any such day or days
had those payments been made at the rate to which the payments were reduced as a
result of the operation of sections 59T and 59TA.
24 Section 59W (examples 1 and
2)
Repeal the examples.
25 Section 59X
Repeal the section, substitute:
If the rate of a person’s compensation affected pension is reduced
under section 59T because of the receipt of a series of periodic
compensation payments, those payments are not regarded as ordinary income of the
person for the purposes of this Act.
26 Paragraph 59Y(1)(b)
Repeal the paragraph, substitute:
(b) the person receives or claims a compensation affected pension for a
day or days in the period to which the compensation relates;
27 Paragraph 59ZA(1)(b)
After “for”, insert “any day or days in”.
28 At the end of subsection
59ZA(3)
Add “, unless subsection (5A) applies in which case it is worked
out under subsection (5A) instead”.
29 Paragraph 59ZA(4)(b)
After “for”, insert “any day or days in”.
30 Paragraph 59ZA(4)(c)
Repeal the paragraph, substitute:
(c) the difference between:
(i) the sum of the payments of compensation affected pension made to the
person for a day or days in the periodic payments period or the lump sum
preclusion period; and
(ii) the sum of the payments of compensation affected pension that would
have been made to the person for any such day or days had those payments been
made at the rate to which the payments were reduced as a result of the operation
of subsection 59T(1);
31 Paragraph 59ZA(5)(b)
After “for”, insert “any day or days in”.
32 Paragraph 59ZA(5)(c)
Repeal the paragraph, substitute:
(c) the difference between:
(i) the sum of the payments of compensation affected pension, and of
compensation affected payments under the Social Security Act, made to the person
and the person’s partner for a day or days in the periodic payments period
or the lump sum preclusion period; and
(ii) the sum of the payments of compensation affected pension, and of
compensation affected payments under the Social Security Act, that would have
been made to the person and the person’s partner for any such day or days
had those payments been made at the rate to which the payments were reduced as a
result of the operation of subsection 59T(1) and section 59TA;
33 After subsection 59ZA(5)
Insert:
(5A) If:
(a) at the time of the event that gave rise to the entitlement of a person
to compensation, the person was receiving a compensation affected pension;
and
(b) the person or the person’s partner is eligible for a
compensation affected pension for a day or days in the periodic payments
period;
the recoverable amount is the amount determined by the
Commission to be the total amount by which the person’s, or the
person’s partner’s, compensation affected pension for a day or days
in the periodic payments period would have been reduced, because of point
SCH6-E4 (payment of arrears of periodic compensation payments), if a
determination had been made under section 56D, 56E, 56EA or 56EB.
34 Paragraph 59ZE(1)(b)
Repeal the paragraph, substitute:
(b) the person receives or claims a compensation affected pension for a
day or days to which the compensation relates; and
35 Paragraph 59ZG(1)(b)
Repeal the paragraph, substitute:
(b) the person receives or claims a compensation affected pension for a
day or days in the periodic payments period or the lump sum preclusion period;
and
36 At the end of subsection
59ZG(3)
Add “, unless subsection (5A) applies in which case it is worked
out under subsection (5A) instead”.
37 Paragraph 59ZG(4)(b)
After “for”, insert “any day or days in”.
38 Paragraph 59ZG(4)(c)
Repeal the paragraph, substitute:
(c) the difference between:
(i) the sum of the payments of compensation affected pension made to the
person for a day or days in the periodic payments period or the lump sum
preclusion period; and
(ii) the sum of the payments of compensation affected pension that would
have been made to the person for any such day or days had those payments been
made at the rate to which the payments were reduced as a result of the operation
of subsection 59T(1);
39 Paragraph 59ZG(5)(b)
After “for”, insert “any day or days in”.
40 Paragraph 59ZG(5)(c)
Repeal the paragraph, substitute:
(c) the difference between:
(i) the sum of the payments of compensation affected pension, and of
compensation affected payments under the Social Security Act, made to the person
and the person’s partner for a day or days in the periodic payments period
or the lump sum preclusion period; and
(ii) the sum of the payments of compensation affected pension, and of
compensation affected payments under the Social Security Act, that would have
been made to the person and the person’s partner for any such day or days
had those payments been made at the rate to which the payments were reduced as a
result of the operation of subsection 59T(1) and section 59TA;
41 After subsection 59ZG(5)
Insert:
(5A) If:
(a) at the time of the event that gave rise to the entitlement of a person
to compensation, the person was receiving a compensation affected pension;
and
(b) the person or the person’s partner is eligible for a
compensation affected pension for a day or days in the periodic payments
period;
the recoverable amount is the amount determined by the
Commission to be the total amount by which the person’s, or the
person’s partner’s, compensation affected pension for a day or days
in the periodic payments period would have been reduced, because of point
SCH6-E4 (payment of arrears of periodic compensation payments), if a
determination had been made under section 56D, 56E, 56EA or 56EB.
42 At the end of point
SCH6-E3
Add “However, in making this calculation disregard any amount that is
taken (whether for the purposes of this Act or of the Social Security Act) to be
ordinary income of either partner because of section 59TA of this Act or
section 1174 of the Social Security Act.”.
43 After point SCH6-E3
Insert:
Additional ordinary income because of excess compensation
payments
SCH6-E3A Add to the amount derived for a person under point SCH6-E3 any
amount that is taken (whether for the purposes of this Act or of the Social
Security Act) to be ordinary income of the person because of section 59TA
of this Act or section 1174 of the Social Security Act.
Veterans’
Entitlements Act 1986
1 Subsection 46K(2)
Repeal the subsection, substitute:
(2) If, because of:
(a) a determination under subsection 46L(1); or
(b) the operation of subsection 46L(1A);
a financial investment is not to be regarded as a financial asset for the
purposes of section 46D or 46E, subsection (1) of this section does
not apply to any return on the investment that the person actually
receives.
2 After subsection 46L(1)
Insert:
(1A) If the Commission makes a determination under section 52Y in
relation to a person, any unrealisable asset of the person or the person’s
partner is not regarded as a financial asset for the purposes of
section 46D or 46E.
Part 1—Small
superannuation accounts
Veterans’
Entitlements Act 1986
1 Section 5 (after the index entry relating
to “asset-test exempt income stream”)
Insert:
|
ATO small superannuation account |
5J(1) |
2 Section 5 (index entry relating to
“investment”)
Omit “5J(6)”, substitute “5J(6), (6A)”.
3 Section 5 (after the index entry relating
to “investment”)
Insert:
|
Investor |
5J(1) |
4 Subsection 5J(1)
Insert:
ATO small superannuation account means an account kept in the
name of an individual under the Small Superannuation Accounts Act
1995.
5 Subsection 5J(1) (definition of
investment)
Repeal the definition, substitute:
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).
6 Subsection 5J(1)
Insert:
investor, in relation to an ATO small superannuation account,
means the person in whose name the account is kept.
7 Subsection 5J(1) (definition of
return)
Repeal the definition, substitute:
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
(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.
8 Subsection 5J(1) (definition of
superannuation benefit)
Repeal the definition, substitute:
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.
9 At the end of subsection
5J(1B)
Add:
(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.
10 After paragraph
5J(1C)(c)
Insert:
(ca) an investment in an ATO small superannuation account if the investor
has not yet turned pension age;
11 After subsection 5J(6)
Insert:
(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.
12 After paragraph 5J(7)(a)
Insert:
(b) where the investment is an ATO small superannuation account—the
balance of the account is taken to have been withdrawn for the purposes of the
Small Superannuation Accounts Act 1995; or
Veterans’
Entitlements Act 1986
13 Subsection 5J(1) (paragraph (b) of the
definition of income stream)
After “public sector”, insert
“superannuation”.
14 Subsection 5JA(1)
Repeal the subsection, substitute:
General requirements
(1) An income stream provided to a person is an asset-test exempt
income stream for the purposes of this Act if:
(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) and (1C), 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 in the actuary’s opinion
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.
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.
Guidelines relating to actuarial certificates
(1B) The Commission may determine, in writing, guidelines to be complied
with when determining whether an actuarial certificate is in force. The
determination is a disallowable instrument for the purposes of section 46A
of the Acts Interpretation Act 1901.
Exception if no actuarial certificate in force
(1C) Paragraph (1)(b) does not apply if, for a period beginning when
an actuarial certificate referred to in this section ceases to be in force and
ending not more than 26 weeks later, such an actuarial certificate is not in
force.
15 Subparagraph
5JA(2)(h)(i)
Repeal the subparagraph, substitute:
(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
16 Subparagraph
5JA(2)(h)(iv)
Repeal the subparagraph, substitute:
(iv) to the extent necessary to cover any superannuation contributions
surcharge that the person is liable to pay in his or her capacity as purchaser
of the income stream; or
(v) to the extent necessary to pay a hardship amount; and
17 At the end of paragraph
5JA(2)(h)
Add:
Note 1: For non-commutation funded income
stream, see subsection (7).
Note 2: For hardship amount see
subsection (7).
18 Paragraph 5JA(2)(i)
Repeal the paragraph, substitute:
(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
19 After subsection 5JA(2)
Insert:
(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.
20 At the end of
section 5JA
Add:
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.
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;
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.
21 Subsection 5JB(1)
Repeal the subsection, substitute:
General requirements
(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 person has reached pension age on or before the day on which the
person purchases or acquires the income stream; and
(b) either subsection (1A) or (1B) applies.
Note 1: For income stream see subsection
5J(1).
Note 2: For pension age see
subsection (6).
No determination under subsection (3)
(1A) This subsection applies if:
(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 subsection (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 in the actuary’s opinion 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 commencement day of the
income stream.
Determination under subsection (4)
(1B) This subsection applies if the Commission has made a determination
under subsection (4) in respect of the income stream.
Guidelines relating to actuarial certificates
(1C) The Commission may determine, in writing, guidelines to be complied
with when determining whether an actuarial certificate is in force. The
determination is a disallowable instrument for the purposes of section 46A
of the Acts Interpretation Act 1901.
Exception if no actuarial certificate in force
(1D) Paragraph (1A)(b) does not apply if, for a period beginning when
an actuarial certificate referred to in this section ceases to be in force and
ending not more than 26 weeks later, such an actuarial certificate is not in
force.
22 Subparagraph
5JB(2)(a)(i)
Repeal the subparagraph, substitute:
(i) if the person’s life expectancy is less than 15
years—throughout a period that is not less than the person’s life
expectancy but, if the person’s life expectancy does not consist of a
number of whole years, not more than the person’s life expectancy rounded
up to the next whole number; or
23 Subparagraph
5JB(2)(h)(i)
Repeal the subparagraph, substitute:
(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
24 Subparagraphs 5JB(2)(h)(iii) and
(iv)
Repeal the subparagraphs, substitute:
(iii) if the legal or equitable interest in the payment resulting from the
commutation is transferred on the death of a person to the benefit of a
reversionary beneficiary, and on the death of a reversionary beneficiary to the
benefit of another reversionary beneficiary or, if there is no other
reversionary beneficiary, to the estate of the reversionary beneficiary;
or
(iv) if the legal or equitable interest in the payment resulting from the
commutation is transferred on the death of a person to the person’s estate
and there is no reversionary beneficiary; or
(v) to the extent necessary to cover any superannuation contributions
surcharge that the person is liable to pay in his or her capacity as purchaser
of the income stream; or
(vi) to the extent necessary to pay a hardship amount; and
25 At the end of paragraph
5JB(2)(h)
Add:
Note 1: For non-commutation funded income
stream, see subsection (7).
Note 2: For hardship amount see
subsection (7).
26 Paragraph 5JB(2)(i)
Repeal the paragraph, substitute:
(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, if there is no reversionary beneficiary, to the estate of the primary
beneficiary; or
(ii) on the death of a reversionary beneficiary, to another reversionary
beneficiary or, if there is no other reversionary beneficiary, to the estate of
the reversionary beneficiary; and
27 After subsection 5JB(2)
Insert:
Compliance with subsection (2) if certain conditions are
met
(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.
28 At the end of
section 5JB
Add:
(7) In this section:
hardship amount has the same meaning as in section 5JA
(see subsection 5JA(7).
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.
29 After subsection 52C(3)
Insert:
Exception for an asset-tested income stream (long-term)
(3A) Subsection (1) does not apply to an asset that is an
asset-tested income stream (long-term).
30 At the end of Division 11 of
Part IIIB
Add:
(1) If:
(a) a person is provided with an asset-test exempt income stream for a
period beginning on the first day in respect of which an income stream payment
was made to the person and ending on the last day in respect of which an income
stream payment was made to the person; and
(b) during the whole or any part of that period an amount of service
pension or income support supplement has been paid to the person; and
(c) the whole or any part of the income stream is commuted contrary to the
contract or governing rules under which the income stream was provided on the
commencement day of the income stream; and
(d) the amount of service pension or income support supplement that has
been paid to the person for that period is more than the amount that would have
been payable to the person for that period had the income stream not been an
asset-test exempt income stream for the purposes of this Act for that
period;
an amount worked out under subsection (2) is a debt due to the
Commonwealth.
(2) That amount is an amount equal to the difference between the amount of
service pension or income support supplement that has been paid to the person
during the period worked out under subsection (3) and the amount that would
have been so paid to the person had the income stream not been an asset-test
exempt income stream for the purposes of this Act for that period.
(3) The period for the purposes of subsection (2) is the period
beginning on:
(a) the day 5 years before the day the income stream was commuted;
or
(b) either:
(i) the commencement day of the income stream; or
(ii) 20 September 2001;
whichever occurs later.
(4) In working out the asset value of the income stream had the income
stream not been an asset-test exempt income stream for the period referred to in
subsection (2), assume that the income stream was asset tested from the
commencement day and that the asset value of the income stream is depleted in
accordance with the formula in subsection 52A(4).
(5) This section does not apply to an income stream in relation to which a
determination under subsection 5JA(5) or 5JB(4) is in force.
31 Subclause 12(4) of Schedule 5
(definition of binding arrangement)
Repeal the definition, substitute:
binding arrangement, in relation to a person,
means:
(a) an arrangement that does not allow the person to commute an income
stream; or
(b) an arrangement that may only be terminated on terms that are, in the
opinion of the Commission, likely to cause severe detriment to the
person.
Veterans’
Entitlements Act 1986
1 Subsections 58A(5) and
(6)
Repeal the subsections, substitute:
(5) The amount worked out under subsection (4) is to be rounded to
the nearest cent (rounding half a cent upwards).
2 Subsections 79K(4) and
(5)
Repeal the subsections, substitute:
(4) The amount worked out under subsection (2) or (3) is to be
rounded to the nearest cent (rounding half a cent upwards).
3 Section 79P
(example)
Omit “This amount is rounded under section 79R to $34.60”,
substitute “(The amount is rounded to the nearest cent under
section 79R.)”.
4 Section 79R
Repeal the section, substitute:
An amount worked out under this Division is to be rounded to the nearest
cent (rounding half a cent upwards).
5 Subpoint SCH6-A1(2) (method statement, note
6)
Omit “off to the nearest multiple of 10 cents (see subsections 58A(2)
and (3))”, substitute “to the nearest cent (see subsection
58A(5))”.
6 Subpoint SCH6-A1(3) (method statement, note
1)
Omit “off to the nearest multiple of 10 cents (see subsections 58A(2)
and (3))”, substitute “to the nearest cent (see subsection
58A(5))”.
7 Subpoint SCH6-A1(6) (method statement, note
6)
Omit “off to the nearest multiple of 10 cents (see subsections 58A(2)
and (3))”, substitute “to the nearest cent (see subsection
58A(5))”.