Commonwealth Numbered Regulations - Explanatory Statements

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VETERANS' ENTITLEMENTS AMENDMENT REGULATIONS 2001 (NO. 2) 2001 NO. 228

Statutory Rules 2001 No. 228

Issued by the Authority of the Minister for Veterans' Affairs

Veterans' Entitlements Act 1986

Veterans' Entitlements Amendment Regulations 2001 (No. 2)

Section 216 of the Veterans' Entitlements Act (the Act) enables the Governor-General to make regulations prescribing matters that are required or permitted by the Act to be prescribed, or which are necessary or convenient to be prescribed for carrying out or giving effect to the Act.

The purpose of the Regulations is to enable the Commission to distribute a higher amount of undistributed benefit (max. $40,000) to a deceased's estate than it was previously able to distribute (max. $20,000).

Veterans and dependants who are eligible for benefits under the Act sometimes die before they can receive those benefits.

The Act contains a number of provisions to deal with this situation. In particular, section 123B of the Act sets out the circumstances in which the Commission can release undistributed benefits to a deceased's estate where the deceased left a will. However if probate of the will has not been obtained and letters of administration with the will annexed have not been granted, the Commission may only release a maximum of $20,000 or the maximum of an amount that is prescribed (123B(6)).

The Regulations amended the Veterans' Entitlements Regulations 1986 (Principal Regulations) to prescribe $40,000 as the higher prescribed amount for the purposes of subsection 123B(6).

The figure of $40,000 was chosen for the following reasons. Firstly, a desire to avoid the present necessity for the estates of former prisoners of war of the Japanese, or their widows, to obtain probate and letters of administration where the estate would consist of little more than the $25,000 POW payment payable under the Veterans' Entitlements (Compensation - Japanese Internment) Regulations 2001.

Secondly, the current amount in subsection 123B(6) of $20,000 has not changed since 1987 when section 123B was included in the Act. Based on Consumer Price Index increases to disability pensions under the Act, it is considered reasonable to increase the amount by 167% which would produce a rounded figure of $33,500 that would accommodate the average amount of undistributed benefit which would have increased similarly in the same period.

Thirdly, to make a small provision in the amount to be prescribed to allow for further indexation increases and thus avoid any early need to again seek an increase in the higher prescribed amount for the purposes of subsection 123B(6). This would maintain the flexibility intended by the Act for the Commission to quickly pay outstanding entitlements and assist in a timely finalisation of estates.

Details of each of the Regulations are set out in the attachment.

The Regulations take effect on gazettal.

ATTACHMENT

Veterans' Entitlements Amendment Regulations 2001 (No. 2)

Regulation 1       refers to the name of the Regulations.

Regulation 2       provides for the Regulations to commence on gazettal.

Regulation 3       refers to the Schedule of the Regulations which contains the amendment to the Principal Regulations.

Item [1] inserted a new regulation 8AA in the Principal Regulations. Regulation 8AA prescribes an amount of $40,000 for the purposes of subsection 123B of the Act.