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This is a Bill, not an Act. For current law, see the Acts databases.
2002-2003-2004
The Parliament
of the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
Veterans’
Entitlements Amendment (Direct Deductions and Other Measures) Bill
2004
No. ,
2004
(Veterans’
Affairs)
A Bill for an Act to amend the law
relating to veterans’ entitlements, and for related
purposes
Contents
Part 1—Direct deduction
arrangements 4
Part 2—Victoria Cross
allowance 6
Part 3—Automatic grant of income support supplement to age
pensioners and wife
pensioners 9
Part 4—Calculation of disability pension
arrears 11
Part 5—Partner service pension for Norfolk Island
residents 12
Part 6—Calculation of rent
assistance 13
Part 7—Reduction in pension arrears resulting from
partner’s receipt of service
pension 14
Part 8—Value of financial assets for purposes of deeming
rules 15
Part 9—Deemed income and actual income from accrued
returns 16
Part 10—Means test exemption of certain superannuation
assets 17
Part 11—Income and assets test treatment of ATO small
superannuation accounts and private rental
income 18
Part 12—Ceiling rate service
pension 19
Part 13—Offences 20
Part 14—Disposal of income and
assets 21
Part 15—Compensation recovery
provisions 22
Part 16—Minor and technical
amendments 24
A Bill for an Act to amend the law relating to
veterans’ entitlements, and for related purposes
The Parliament of Australia enacts:
This Act may be cited as the Veterans’ Entitlements Amendment
(Direct Deductions and Other Measures) Act 2004.
(1) Each provision of this Act specified in column 1 of the table
commences, or is taken to have commenced, in accordance with column 2 of the
table. Any other statement in column 2 has effect according to its
terms.
|
Commencement information |
||
|---|---|---|
|
Column 1 |
Column 2 |
Column 3 |
|
Provision(s) |
Commencement |
Date/Details |
|
1. Sections 1 to 3 and anything in this Act not elsewhere covered by
this table |
The day on which this Act receives the Royal Assent. |
|
|
2. Schedule 1, items 1 to 10 |
The day on which this Act receives the Royal Assent. |
|
|
3. Schedule 1, items 11 and 12 |
1 July 2004. |
1 July 2004 |
|
4. Schedule 1, item 13 |
The day on which this Act receives the Royal Assent. |
|
|
5. Schedule 1, item 14 |
1 July 2004. |
1 July 2004 |
|
6. Schedule 1, items 15 to 24 |
The day on which this Act receives the Royal Assent. |
|
|
7. Schedule 1, Part 6 |
Immediately after the commencement of Part 4 of Schedule 1 to the
Military Rehabilitation and Compensation (Consequential and Transitional
Provisions) Act 2004. |
|
|
8. Schedule 1, Parts 7, 8, 9 and 10 |
The day on which this Act receives the Royal Assent. |
|
|
9. Schedule 1, items 38 to 40 |
1 July 1995. |
1 July 1995 |
|
10. Schedule 1, item 41 |
The day on which this Act receives the Royal Assent. |
|
|
11. Schedule 1, item 42 |
1 July 1995. |
1 July 1995 |
|
12. Schedule 1, Parts 12, 13, 14, 15 and 16 |
The day on which this Act receives the Royal Assent. |
|
Note: This table relates only to the provisions of this Act
as originally passed by the Parliament and assented to. It will not be expanded
to deal with provisions inserted in this Act after assent.
(2) Column 3 of the table contains additional information that is not part
of this Act. Information in this column may be added to or edited in any
published version of this Act.
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.
Part 1—Direct
deduction arrangements
1 Subsection 5Q(1) (definition of
Pension)
Omit “and Schedule 6”, substitute “,
section 122B and Schedule 6”.
2 Sections 58G and 58H
Repeal the sections.
3 Section 58JA
Repeal the section.
4 After section 122A
Insert:
(1) This section applies if a person is receiving instalments of a
pension, allowance or other pecuniary benefit payable under this Act of a class
approved by the Commission for the purposes of this section.
(2) The person may request the Commission to make deductions from the
instalments for the purpose of making:
(a) payments to the Commissioner of Taxation; or
(b) payments in a class approved by the Commission for the purposes of
this section.
(3) The request must be in the form approved by the Commission for the
purposes of this section.
(4) If a request is made:
(a) the Commission may make the requested deductions; and
(b) if it does so—the Commission must pay the amounts deducted in
accordance with the request.
(5) The Commission may, for the purposes of this section,
approve:
(a) classes of pensions; and
(b) classes of allowances; and
(c) classes of pecuniary benefits; and
(d) classes of payments.
The approval must be in writing.
(6) An approval under subsection (5) is a disallowable instrument for
the purposes of section 46A of the Acts Interpretation Act
1901.
5 Transitional
(1) In this item:
amended Act means the Veterans’ Entitlements Act
1986 as amended by this Part.
commencement time means the time at which the amendments made
by this Part commence.
(2) For the purposes of the amended Act, the Commission is taken to have
approved, at the commencement time, pensions payable under Part III or
Part IIIA of the amended Act as a class of pensions under
section 122B of that Act.
(3) If an approval of a class of payments under section 58JA of the
Veterans’ Entitlements Act 1986 was in force just before the
commencement time, the approval is taken, for the purposes of the amended Act,
to be an approval of that class of payments by the Commission under
section 122B of the amended Act that was made at the commencement
time.
(4) If a request was in force under section 58H or 58JA of the
Veterans’ Entitlements Act 1986 just before the commencement time,
it is taken, for the purposes of the amended Act, to be a request made at the
commencement time under section 122B of the amended Act.
Part 2—Victoria
Cross allowance
6 Subsection 102(2)
Repeal the subsection.
7 Subsection 102(5) (at the end of
paragraph (a) of the definition of eligible
decorations)
Add:
(xiv) the Medal of the Most Excellent Order of the British Empire
(Military Division) (1919-1958);
(xv) the Medal of the Most Excellent Order of the British Empire (Military
Division) with Gallantry Emblem (1958-1974);
(xvi) the Victoria Cross for Australia;
(xvii) the Star of Gallantry;
(xviii) the Medal for Gallantry; and
8 Subsection 102(5) (at the end of
paragraph (b) of the definition of eligible
decoration)
Add “and”.
9 Subsection 102(6)
Repeal the subsection.
10 Subsection 103(1)
After “the Victoria Cross”, insert “or the Victoria Cross
for Australia”.
11 Subsection 103(4)
Omit “$2,808”, substitute “$3,230”.
12 After subsection 103(4)
Insert:
Note: The amount fixed by this subsection is indexed
annually in line with CPI increases. See section 198FA.
13 Subsection 103(5)
Repeal the subsection.
14 After section 198F
Insert:
(1) In this section, unless the contrary intention appears:
index number, in relation to a quarter, means the All Groups
Consumer Price Index number, being the weighted average of the 8 capital cities,
published by the Australian Statistician for that quarter.
relevant rate means the rate specified in subsection
103(4).
year to which this section applies means:
(a) the year commencing on 20 September 2005; or
(b) any later year commencing on 20 September.
(2) Subject to subsection (3), if at any time, whether before or
after the commencement of this section, the Australian Statistician has
published or publishes an index number in respect of a quarter in substitution
for an index number previously published by the Australian Statistician in
respect of that quarter, the publication of the later index number is to be
disregarded for the purposes of this section.
(3) If at any time, whether before or after the commencement of this
section, the Australian Statistician has changed or changes the reference base
for the consumer price index, then, for the purposes of the application of this
section after the change took place, or takes place, regard is to be had only to
index numbers published in terms of the new reference base.
(4) Where the factor worked out under subsection (5) in relation to a
relevant rate in relation to a year to which this section applies is greater
than 1, this Act, and any Act that refers to this Act, have effect as if for
that relevant rate there were substituted, on the first day of that
year:
(a) subject to paragraph (b)—the rate worked out by multiplying
by that factor:
(i) where subparagraph (ii) does not apply—the relevant rate;
or
(ii) if, because of another application or other applications of this
section, this Act has had effect as if another rate was substituted, or other
rates were successively substituted, for the relevant rate—the substituted
rate or the last substituted rate, as the case may be; or
(b) where the amount of the rate worked out under paragraph (a) is
not a multiple of one dollar—a rate equal to that amount rounded up to the
nearest multiple of one dollar.
(5) The factor to be worked out for the purposes of subsection (4) in
relation to a year to which this section applies is:
(a) in relation to the year commencing on 20 September 2005—the
number, calculated to 3 decimal places, worked out by dividing the index number
for the June quarter 2005 by the index number for the June quarter 2004;
or
(b) in relation to each subsequent year—the number calculated to 3
decimal places, worked out by dividing the index number for the last preceding
June quarter by the highest index number in respect of an earlier June quarter,
not being a June quarter that occurred before 2005; or
(c) if the number worked out under paragraph (a) or (b) would, if it
were calculated to 4 decimal places, end in a number greater than 4—the
number so worked out increased by 0.001.
(6) Where, because of the application of this section, this Act has effect
as if another rate were substituted for a relevant rate on the first day of a
year to which this section applies, the substitution, in so far as it affects
instalments of Victoria Cross allowance under this Act, has effect in relation
to every instalment of the allowance that falls due on or after the first day of
that year.
15 Application
(1) The amendment made by item 6 applies to decoration allowance
payable after the commencement of this item.
(2) The amendments made by items 7 to 9 apply to decorations awarded
after the commencement of this item.
(3) The amendments made by items 10 and 13 apply to Victoria Cross
allowance payable after the commencement of this item.
Part 3—Automatic
grant of income support supplement to age pensioners and wife
pensioners
16 After paragraph 45N(1)(b)
Insert:
(ba) a war widower or war widow who:
(i) is granted a pension under Part II or Part IV, at a rate
determined under or by reference to subsection 30(1), on or after the
commencement of Part 3 of Schedule 1 to the Veterans’
Entitlements Amendment (Direct Deductions and Other Measures) Act 2004;
and
(ii) immediately before being granted the pension was receiving an age
pension under Part 2.2 of the Social Security Act from the Department,
acting on behalf of the Commonwealth, under an arrangement with the Department
administered by the Minister administering that Part; and
(bb) a war widow who:
(i) is granted a pension under Part II or Part IV, at a rate
determined under or by reference to subsection 30(1), on or after the
commencement of Part 3 of Schedule 1 to the Veterans’
Entitlements Amendment (Direct Deductions and Other Measures) Act 2004;
and
(ii) immediately before being granted the pension was receiving a wife
pension under Part 2.4 of the Social Security Act from the Department,
acting on behalf of the Commonwealth, under an arrangement with the Department
administered by the Minister administering that Part; and
(iii) has reached the qualifying age (see subsection (1A));
and
17 After subsection 45N(1)
Insert:
(1A) For the purposes of subparagraph (1)(bb)(iii), the
qualifying age for a person who is a war widow is:
(a) if the person is a veteran—the pension age for that person;
or
(b) if the person is not a veteran—the age that would be the pension
age for that person if she were a veteran.
Note: For pension age see
section 5QA.
18 Subsection 45N(3)
After “If”, insert “this section applies to the person
other than because of paragraph (1)(ba) or (bb) and”.
19 At the end of
section 45N
Add:
(4) If this section applies to the person because of
paragraph (1)(ba) or (bb), and the person is not required by the Commission
to make a claim for income support supplement, this Act applies to the person as
if:
(a) the person had made a claim for income support supplement under
section 45I on the day on which the person was granted the pension under
Part II or Part IV; and
(b) the Commission had, on that day, determined under section 45Q
that the claim was to be granted.
Part 4—Calculation
of disability pension arrears
20 Paragraph 27A(1)(b)
Repeal the paragraph, substitute:
(b) the veteran is a member of a couple or was a member of a couple at any
time during the period (the arrears period) between:
(i) the operative date; and
(ii) immediately before the first pension period during which an
instalment of the pension, or an instalment of the pension at the increased
rate, is paid to the person; and
21 Application
The amendment made by this Part applies where the decision to grant the
pension, or to increase the rate of the pension, is made after the commencement
of this item.
Part 5—Partner
service pension for Norfolk Island residents
22 At the end of subparagraph
38(1)(aa)(iii)
Add “, or would be so qualified if, in spite of subsection 7(4) of
that Act, residence of a person in Norfolk Island was taken to be residence of
the person in Australia”.
23 At the end of subparagraph
38(1)(e)(ii)
Add “, or would be so qualified if, in spite of subsection 7(4) of
that Act, residence of a person in Norfolk Island was taken to be residence of
the person in Australia”.
24 Application
Subparagraphs 38(1)(aa)(iii) and 38(1)(e)(ii) of the Veterans’
Entitlements Act 1986, as amended by this Part, apply for the purpose
of determining whether a person is, at or after the commencement of this Part,
eligible for a partner service pension, and for that purpose residence of a
person in Norfolk Island before (as well as at or after) the commencement of
this Part may be taken into account.
Part 6—Calculation
of rent assistance
25 Point SCH6-C14 of
Schedule 6
Repeal the point, substitute:
Disability income
SCH6-C14 If a person is a member of a couple, the person’s
disability income for the purposes of this Module is worked out as
follows:
(a) if each member of the couple receives either or both a disability
pension and permanent impairment compensation—by adding the couple’s
annual rates of disability pension and permanent impairment compensation and
dividing the result by 2;
(b) if only one member of the couple receives either or both a disability
pension and permanent impairment compensation:
(i) where the member receives both a disability pension and permanent
impairment compensation—by adding the member’s annual rates of
disability pension and permanent impairment compensation and dividing the result
by 2; or
(ii) where subparagraph (i) does not apply—by dividing the
member’s annual rate of disability pension or permanent impairment
compensation by 2.
Note 1: For disability pension see
section 5Q.
Note 2: For permanent impairment compensation see point
SCH6-C16.
26 Application
The amendment made by this Part applies in relation to instalments of
service pension for pension periods that start after the commencement of this
item.
Part 7—Reduction
in pension arrears resulting from partner’s receipt of service
pension
27 After subparagraph
27A(1)(c)(i)
Insert:
(ia) a service pension; or
28 Paragraph 27A(1)(d)
After “benefit”, insert “, service
pension”.
29 Subsection 27A(2) (step 4 of the method
statement)
After “benefit”, insert “, service
pension”.
30 Subsection 27A(2) (step 5 of the method
statement)
After “benefit”, insert “, service
pension”.
31 Application
The amendments made by this Part apply where the decision to grant the
pension, or to increase the rate of the pension, mentioned in paragraph
27A(1)(a) of the Veterans’ Entitlements Act 1986 is made after the
commencement of this item.
Part 8—Value
of financial assets for purposes of deeming rules
32 Subsection 52C(1)
After “other than”, insert “Division 3
and”.
33 Application
The amendment made by this Part applies in relation to instalments of
service pension and income support supplement for pension periods starting at or
after the commencement of this item.
Part 9—Deemed
income and actual income from accrued returns
34 Subsection 46K(1)
Omit “receives”, substitute “earns, derives or
receives”.
35 Subsection 46K(2)
Omit “receives”, substitute “earns, derives or
receives”.
Part 10—Means
test exemption of certain superannuation assets
36 At the end of paragraph
52(1)(f)
Add:
Note: Some investments in superannuation funds, approved
deposit funds, deferred annuities and ATO small superannuation accounts may be
disregarded—see section 52AA.
37 After section 52
Insert:
(1) The value of a person’s investment in a superannuation fund, an
approved deposit fund, a deferred annuity or an ATO small superannuation account
is to be disregarded in calculating the value of the person’s assets for
the purposes of this Act (other than section 52FA, 52G, 52GA, 52H, 52ZA or
52ZCA) if the investment is specified in a determination made under
subsection (2).
(2) The Minister may specify:
(a) a specified investment in a superannuation fund, an approved deposit
fund, a deferred annuity or an ATO small superannuation account; or
(b) a specified class of investments in a superannuation fund, an approved
deposit fund, a deferred annuity or an ATO small superannuation
account;
in a determination.
(3) A determination must be in writing.
(4) A determination takes effect on the day on which it is made or on such
other day (whether earlier or later) as is specified in the
determination.
Part 11—Income
and assets test treatment of ATO small superannuation accounts and private
rental income
38 At the end of subparagraph
5H(8)(i)(iii)
Add “or”.
39 After subparagraph
5H(8)(i)(iii)
Insert:
(iiia) an ATO small superannuation account;
40 Paragraph 5H(8)(i) (note 2)
Omit “and deferred annuity”, substitute “,
deferred annuity and ATO small superannuation
account”.
41 At the end of
section 46C
Add:
(3) If a person’s ordinary income for a period includes rental
income from a property that is not business income, the person’s ordinary
income from that property is to be reduced by losses and outgoings that relate
to the property and are allowable deductions for the purposes of
section 8-1 of the Income Tax Assessment Act 1997 for that
period.
(4) If the amount of the allowable deductions relating to a property for a
period under section 8-1 of the Income Tax Assessment Act 1997
exceeds the amount of the rental income from that property for that period, the
amount of the ordinary income from the property for that period is taken to be
nil.
42 After subparagraph
52(1)(f)(iii)
Insert:
; or (iiia) an ATO small superannuation account;
Part 12—Ceiling
rate service pension
43 Subparagraph (a)(i) of point SCH6-A6 of
Schedule 6
After “supplement”, insert “ or service
pension”.
44 At the end of subparagraphs 208(1)(a)(i) and
(iii)
Add “or”.
45 Paragraph 208(1)(b)
Repeal the paragraph, substitute:
(b) intentionally obtain:
(i) payment of a pension, allowance or other pecuniary benefit under this
Act; or
(ii) payment of an instalment of such a pension, allowance or
benefit;
knowing that the payment is:
(iii) not payable at all; or
(iv) payable only in part; or
46 At the end of paragraph
208(1)(c)
Add “or”.
Part 14—Disposal
of income and assets
47 Section 48 (notes 1 and
2)
Repeal the notes, substitute:
Note: For amount of disposition see
section 48A.
48 Subsection 48C(1) (note 3)
Repeal the note.
49 Section 48D
Repeal the section.
50 Subsection 52FA(1) (notes 3 and
4)
Repeal the notes, substitute:
Note 3: If a pension is payable to the person,
section 52G operates to determine the rate of payment and section 52FA
ceases to apply to the person.
51 Subsection 52GA(1) (notes 3 and
4)
Repeal the notes, substitute:
Note 3: If a pension is payable to the person,
section 52H operates to determine the rate of payment and section 52GA
ceases to apply to the person.
52 Subsection 52H(1) (note 3)
Repeal the note.
Part 15—Compensation
recovery provisions
53 Subsection 5H(1) (note 2 at the end of the
definition of ordinary income)
Omit “a series of”.
54 Subsection 5NB(1) (definition of periodic
payments period)
Repeal the definition, substitute:
periodic payments period means:
(a) the period to which a periodic compensation payment, or a series of
periodic compensation payments, relates; or
(b) in the case of a payment of arrears of periodic compensation
payments—the period to which those payments would have related if they had
not been made by way of arrears payment.
55 Subsection 5NB(2)
Omit “a series of”.
56 Subsection 30D(10)
Repeal the subsection, substitute:
(10) In this section:
periodic payments period means:
(a) the period to which a periodic compensation payment, or a series of
periodic compensation payments, relates; or
(b) in the case of a payment of arrears of periodic compensation
payments—the period to which those payments would have related if they had
not been made by way of arrears payment.
57 Subsection 59M(4)
Omit “a series of”.
58 Subsection 59M(4)
Omit “period for which the payments are received”, substitute
“periodic payments period”.
59 Paragraph 59W(1)(a)
Omit “a series of”.
60 Paragraph 59W(1)(d)
Omit “under”, substitute “to nil as a result of the
operation of”.
61 Section 59X
Omit “a series of”.
Part 16—Minor
and technical amendments
62 Subsection 5JA(7) (paragraph (a) of the
definition of liquid assets)
After “public company”, insert “within the meaning of the
Corporations Act 2001”.
63 Subsection 5MC(4)
Omit “couple’s assets deeming provisions”, substitute
“provisions in point SCH6-F2”.
64 Subsection 5MC(5)
Repeal the subsection.
65 Subparagraph 5NB(7)(a)(ii)
Omit “, on or after 9 February 1988”.
66 Subparagraph 5NB(7)(b)(iii)
Omit “, on or after 9 February 1988”.
67 Subsections 36B(2) and
37B(2)
Omit all the words and paragraphs after paragraph (d),
substitute:
then the veteran’s provisional commencement day is the day on which
the initial claim was lodged.
68 Subsection 38B(2)
Omit all the words and paragraphs after paragraph (d),
substitute:
then the person’s provisional commencement day is the day on which
the initial claim was lodged.
69 Subsection 45S(1)
Omit “, subject to subsection (2),”.
70 Subsection 45S(2)
Repeal the subsection.
71 Subsection 52FA(1)
Omit “Subject to subsection (2), if”, substitute
“If”.
72 Paragraphs 52FA(1)(c) and
(d)
Omit “the disposal limit”, substitute
“$10,000”.
73 Subsections 52FA(2) and (3)
Repeal the subsections.
74 Subsection 52G(1)
Omit “Subject to subsection (2), where”, substitute
“If”.
75 Paragraphs 52G(1)(b) and (c)
Omit “the disposal limit”, substitute
“$10,000”.
76 Subsections 52G(2) and (3)
Repeal the subsections.
77 Subsection 52GA(1)
Omit “(2),”.
78 Paragraph 52GA(1)(d)
Omit “the disposal limit”, substitute
“$10,000”.
79 Subparagraphs 52GA(1)(e)(i) and
(f)(i)
Omit “the disposal limit”, substitute
“$10,000”.
80 Subsections 52GA(2) and (6)
Repeal the subsections.
81 Subsection 52H(1)
Omit “(2),”.
82 Paragraph 52H(1)(b)
Omit “the disposal limit”, substitute
“$10,000”.
83 Subparagraphs 52H(1)(c)(i) and
(d)(i)
Omit “the disposal limit”, substitute
“$10,000”.
84 Subsections 52H(2) and (6)
Repeal the subsections.
85 Paragraph 56C(2)(a)
Repeal the paragraph, substitute:
(a) either:
(i) a service pension or income support supplement has not been, or is not
being, paid to a person because the rate of the pension or supplement was
determined to be nil; or
(ii) a service pension or income support supplement has not been, or is
not being, paid to a person because the rate of the pension or supplement was
reduced to nil under section 56 or 56A; and
86 Paragraph 56C(2)(b)
After “the pension”, insert “or
supplement”.
87 Subsection 56EC(1)
Repeal the subsection, substitute:
(1) If a service pension or income support supplement is not payable to a
person because the rate of the pension or supplement:
(a) has been determined to be nil; or
(b) has been reduced to nil under section 56 or 56A;
the Commission may determine that the pension or supplement is to be
cancelled.
88 Paragraph 59N(e)
Repeal the paragraph, substitute:
(e) the person had not received:
(i) the lump sum; or
(ii) if the lump sum was to be paid in instalments—any of the
instalments; and