Source: https://www.legislation.gov.au/Details/C2004B00156
Timestamp: 2020-07-07 00:00:11
Document Index: 301936269

Matched Legal Cases: ['art 1', 'art 2', 'art 3', 'art 4', 'art 5', 'art 6', 'art 7', 'art 8', 'art 9', 'art 1', 'art 6', 'art 5', 'art 4', 'art 9', 'art 8', 'art 2', 'art 7', 'art 3', 'art 3', 'art 5', 'art 6', 'art 8', 'art 9', 'art 2']

Details: C2004B00156
- C2004B00156
9611920--975/16.9.1996--(119/96) Cat. No. 96 5157 8 ISBN 0644 477814
Part 1--Amendments relating to allocated pensions
Part 2--Amendments relating to earnings credits
Part 3--Amendments consequential upon the
Part 4--Amendment relating to funeral benefits
Part 5--Amendment relating to the Victoria Cross
Part 6--Amendment relating to lump sum
Part 7--Amendments relating to extended deeming
Part 8--Amendments relating to service pensions and
Part 9--Amendments relating to advance payments of
Schedule 2--Amendment of the Defence Service Homes Act 1918
This Act may be cited as the Veterans' Affairs Legislation Amendment (1996-97 Budget Measures) Act 1996.
(1)	Sections 1, 2 and 3, Part 1 of Schedule 1, items 5 and 7 and Part 6 of Schedule 1 commence on the day on which this Act receives the Royal Assent.
(2)	Part 5 of Schedule 1 is taken to have commenced on 17 August 1995.
(3)	Part 4 of Schedule 1 is taken to have commenced on 21 August 1996.
(4)	Part 9 of Schedule 1 and Schedule 2 commence, or are taken to have commenced, on 1 January 1997.
(5)	Part 8 of Schedule 1 commences on the twenty-eighth day after the day on which this Act receives the Royal Assent.
(6)	Part 2 (except items 5 and 7) and Part 7 of Schedule 1 commence on 20 March 1997.
(7)	Part 3 of Schedule 1 commences on 20 March 1997, immediately after the commencement of Schedule 10 to the Social Security Legislation Amendment (Budget and Other Measures) Act 1996.
Insert the following entry in the Index in its appropriate alphabetical
position, determined on a letter-by-letter basis:
(10)	A pension is an allocated pension for the purposes of this Act if:
(a)	the pension was purchased after 20 August 1996; and
(i)	the rate of payment of the pension; or
(ii)	the basis for variations in the rate of payment of the pension;
Add "other than an allocated pension".
(e) disposable income (sections 48 to 48E);
(g) earnings credit under the Social Security Act (point 41-D2A).
6 Point 41-D1 (note 2--paragraph (f))
8 Point 42-E1 (note 2--paragraph (f))
9 Point 45X-E1 (note 2)
10 Point 45Y-D1 (note 2)
13 Section 59A (Indexed and Adjusted Amounts Table--
14 Section 59B (CPI Indexation Table--item 5A)
Part 3--Amendments consequential upon the amendment of the Social Security Act 1991
15 Point 41-D1 (note 2--paragraph (g))
17 Point 42-E1 (note 2--paragraph (g))
19 Point 45X-E1 (method statement--step 2)
Omit "45X-E3", substitute "45X-E3A".
20 Point 45X-E3
21 Point 45Y-D3
(5)	Paragraph (4)(b) does not apply to a charge made by a funeral director for transporting the body of the deceased veteran:
(a)	outside Australia; or
(b)	from one place in the metropolitan area of a capital city to another place in the metropolitan area of that city.
The amendment made by item 22 applies to a funeral benefit under section 99 of the Veterans' Entitlements Act 1986 in respect of which an application is made under section 113 of that Act after 20 August 1996.
Part 5--Amendment relating to the Victoria Cross allowance
Omit "$250", substitute "$2,700".
Part 6--Amendment relating to lump sum compensation payments
Before "the person" (first occurring), insert "before 20 March 1997,".
Note: The heading to subsection 59Q(2) is altered by adding at the end "(lump sum received before 20 March 1997)".
(a)	a person is eligible for a compensation affected pension; and
(c)	on or after 20 March 1997, the person receives compensation in the form of a lump sum (whether before or after the person became eligible for the pension);
(7)	The number of weeks in the lump sum preclusion period in relation to a person is:
(a)	if the person or the person's partner receives the lump sum compensation payment before 20 March 1997--the number worked out by using the formula:
(b)	if the person receives the lump sum compensation payment on or after 20 March 1997--the number worked out by using the formula:
OFFAL (ordinary income free area) means the amount specified in column 3 of item 1 in Table D-1 in point 41-D4.
Result: Jane's lump sum preclusion period is:
Omit "worked out under subsections (3) and (4)", substitute:
(a)	if the person receives compensation in the form of a lump sum before 20 March 1997--under subsections (3) and (4); or
(b)	if the person receives compensation in the form of a lump sum on or after 20 March 1997--under subsection (5).
After "If", insert "the person receives compensation in the form of a lump sum before 20 March 1997 and".
(aa)	the person receives compensation in the form of a lump sum before 20 March 1997; and
(5)	If the person receives compensation in the form of a lump sum on or after 20 March 1997, the recoverable amount is equal to the smaller of:
(a)	the compensation part of the lump sum; and
(b)	the sum of the pension payments, or (if the person's pension has a dependent child component) of the compensation affected components of the pension payments, made to the person for the lump sum preclusion period.
Result: Since Jane's situation is covered by subsection (5), the recoverable amount is the smaller of $5,500 (the compensation part of the lump sum payment) and $688.10. Jane will be liable to repay the Commonwealth $688.10. Because the lump sum compensation preclusion period continues for another 7 weeks, Jane will receive no further invalidity service pension payments until after the remaining 7 weeks of the preclusion period ends.
(3)	This is how to work out the ordinary income that the person is taken to receive:
Step 1. Calculate the total value of the person's financial assets and compare it with the person's deeming threshold.
Note 1:	For financial assets see subsection 5J(1).
Note 2:	For deeming threshold see subsection 46H(1).
Step 2. This step applies only if the total value of the person's financial assets is equal to or less than the person's deeming threshold. Multiply the total value of the financial assets by the below threshold rate. The result represents the ordinary income that the person is taken to receive per year on his or her financial assets.
Note:	For below threshold rate see subsection 46J(1).
Step 3. This step applies only if the total value of the person's financial assets is higher than the person's deeming threshold. Work out the person's deemed income as follows:
(a)	multiply the deeming threshold by the below threshold rate;
(b)	subtract the deeming threshold from the total value of the person's financial assets;
(c)	multiply the remainder by the above threshold rate;
Note:	For above threshold rate see subsection 46J(2).
(d)	add up the amounts worked out at paragraph (a) and (c): the result represents the ordinary income that the person is taken to receive per year on his or her financial assets.
Step 1. The total value of Elaine's financial assets ($36,500) is higher than her deeming threshold ($30,000--see subsection 46H(1)). So, the deeming threshold is multiplied by the below threshold rate:
Step 2. Elaine's deeming threshold of $30,000 is subtracted from the total value of her financial assets ($36,500). The remainder is $6,500.
(3)	This is how to work out the ordinary income that the couple is taken to receive:
Step 1. Calculate the total value of the couple's financial assets and compare it with the couple's deeming threshold.
Note 2:	For deeming threshold see subsection 46H(2).
Step 2. This step applies only if the total value of the couple's financial assets is equal to or less than the couple's deeming threshold. Multiply the total value of the financial assets by the below threshold rate. The result represents the ordinary income that the couple is taken to receive per year on their financial assets.
Step 3. This step applies only if the total value of the couple's financial assets is higher than the couple's deeming threshold. Work out the couple's deemed income as follows:
(b)	subtract the deeming threshold from the total value of the couple's assets;
(d)	add up the amounts worked out at paragraph (a) and (c): the result represents the ordinary income that the couple is taken to receive per year on their financial assets.
Step 1. The total value of the couple's financial assets ($68,500) is higher than their deeming threshold ($50,000--see subsection 46H(2)). So, the deeming threshold is multiplied by the below threshold rate:
Step 2. The couple's deeming threshold of $50,000 is subtracted from the total value of their financial assets ($68,500). The remainder is $18,500.
Omit "any of sections 46D to 46F", substitute "section 46D or 46E".
Omit "46F", substitute "46E".
Part 8--Amendments relating to service pensions and income support supplement
(1)	When the claim is submitted to the Commission, the Commission must:
(a)	consider the claim; and
(b)	satisfy itself with respect to all matters relevant to the determination of the claim; and
(c)	determine all matters requiring determination before the claim can be determined; and
(d)	determine the claim as provided by subsection (4).
(4)	The Commission must determine the claim as follows:
(a)	first, the Commission must determine whether the pension is to be granted to the person; and
(b)	if the Commission determines that the pension is to be granted to the person, the Commission then must:
(i)	work out the person's age service pension rate under section 36N; and
(ii)	determine that the pension is payable to the person at that rate.
(a)	the determination takes effect on the day on which the determination is made or on such later or earlier day as is specified in the determination; and
(b)	subject to this Act, age service pension is
payable to the person at the rate specified in the determination.
(i)	work out the person's invalidity service pension rate under section 37N; and
(b)	subject to this Act, invalidity service pension is payable to the person at the rate specified in the determination.
(i)	work out the person's partner service pension rate under section 38N; and
(b)	subject to this Act, partner service pension is payable to the person at the rate specified in the determination.
(i)	work out the person's carer service pension rate under section 39N; and
(b)	subject to this Act, carer service pension is payable to the person at the rate specified in the determination.
(a)	first, the Commission must determine whether income support supplement is to be granted to the person; and
(b)	if the Commission determines that income support supplement is to be granted to the person, the Commission then must:
(i)	work out the person's income support supplement rate under section 45S; and
(ii)	determine that income support supplement is payable to the person at that rate.
(b)	subject to this Act, income support supplement is payable to the person at the rate specified in the determination.
Omit "The rate at which a person's income support supplement is payable", substitute "A person's income support supplement rate".
Omit "may", substitute "must, subject to section 56DA,".
; and (c)	may be made by the Commission on its own initiative or following a request by the pensioner for an increase in the rate of the pension or supplement.
(4)	If the Commission makes a determination under this section in respect of a person's service pension or income support supplement, the service pension or income support supplement is payable to the
person at the rate specified in the determination.
(2)	A determination under subsection (1):
(b)	must specify a rate assessed as provided for by this Act; and
(c)	may be made by the Commission on its own initiative or following a request by the pensioner for a decrease in the rate of the pension or supplement.
(3)	If the Commission makes a determination under this section in respect of a person's service pension or income support supplement, the service pension or income support supplement is payable to the person at the rate specified in the determination.
(1)	The Commission must not make a determination under section 56C or 56D if the amount by which the rate of the service pension or income support supplement would be increased or reduced (as the case may be) under the determination would be less than $26 per annum.
(2)	Subsection (1) does not apply if the increase or reduction in the rate of the pension or supplement is necessary as a result of a matter, or change in circumstances, affecting the payment of the pension or supplement that the Commission has declared, by notice published in the Gazette, to be a matter, or change in circumstances, whose effects on the payment of a service pension or income support supplement is to be disregarded for the purposes of this subsection.
(1)	If the Commission determines under this Division that a service pension, or the income support supplement, payable to a person is to be cancelled, the pension or supplement ceases to be payable to the person from and including the day on which the determination takes effect.
(2)	If the Commission determines under this Division that a service pension, or the income support supplement, payable to a person is to be suspended, the pension or supplement is not payable to the person during the period:
(a)	commencing on the day on which the determination takes effect; and
(b)	ending when the suspension ends under a determination of the Commission (under section 56F or 56L).
(a)	payment to a person of a service pension or income support supplement is based upon data in a computer; and
(b)	the rate of the pension or supplement is increased or reduced, or the pension or supplement is cancelled or suspended, because of the operation of a computer program approved by the Commission; and
(c)	the program causes the change for a reason for which the Commission could determine the change;
Omit "an application", substitute "a request".
Part 9--Amendments relating to advance payments of service pension and income support supplement
(b)	an advance payment of:
(i)	an amount of pension; or
(ii)	a social security entitlement under Part 2.22 of the Social Security Act 1991;
(c)	the person owes a debt to the Commonwealth under section 205 or 205A.
(1) The amendment of the Veterans' Entitlements Act 1986 made by item 64 applies only to a person who makes an application for an advance payment of service pension or income support supplement on or after 1 January 1997.
(2) The amendment of the Veterans' Entitlements Act 1986 made by item 65 applies only to the following persons:
(a)	unless paragraph (b) applies--a person who makes an application for an advance payment of service pension or income support supplement on or after 1 January 1997;
(b)	a person who:
(i)	receives an advance payment of service pension or income support supplement in respect of an application for that payment made before 1 January 1997; and
(ii)	makes an application for an advance payment of service pension or income support supplement after the end of the period of 12 months immediately after the person receives the payment referred to in subparagraph (i).
(4)	Subject to section 67G, the rate at which a pension is payable under this Part per fortnight is to be reduced by any advance payment deduction payable by the person and worked out under section 67JA or section 67JB (as the case requires).
After "Part", insert ", unless the contrary intention appears".
Omit "The", substitute "Subject to subsections (5) and (6), the".
Note: The heading to subsection 67C(2) is altered by adding at the end "--general".
Amount of advance--"Frozen" Rate Widows and Widowers
(5)	If service pension calculated in accordance with the Service Pension Rate Calculator for "Frozen Rate" Widows and Widowers in section 45 is payable to a person, the maximum amount of the advance payment to the person is $500.
Amount of advance--recipients of income support supplement
(6)	If both of the following are payable to a person:
(a)	a pension under Part II or IV at a rate determined under or by reference to subsection 30(1);
(b)	income support supplement;
Omit "and 67J", substitute ", 67J, 67JA, 67JB and 67JC".
Omit "section 67J", substitute "sections 67J, 67JA, 67JB and 67JC".
Note: The heading to section 67H is altered by adding at the end "from service pension or income support supplement".
(1)	If the conditional payment rate (if any) referred to in the relevant Rate Calculator is less than the amount that would be the advance payment deduction apart from this subsection, the advance payment deduction is taken to be equal to the conditional payment rate.
Note: The expression "conditional payment rate" does not appear in the Method statement in point 43-A1. This is because that Method statement applies only to blind people and the relevant payment rate for a blind person will never be less than the advance payment deduction.
(2)	This section has effect subject to sections 67JA and 67JB.
(1)	This section applies to a person whose rate of service pension is calculated in accordance with the Service Pension Rate Calculator for "Frozen Rate" Widows and Widowers in section 45.
(2)	If the amount of the person's advance payment deduction is more than the amount that would be the provisional rate referred to in the Rate Calculator (if that rate did not include an amount by way of remote area allowance), the difference between the amount of that deduction and that rate is to be deducted from the pension payable to the person under Part II or IV.
(1)	This section applies to a person to whom both of the following are payable:
(a)	a pension payable under Part II or IV at a rate determined under or by reference to subsection 30(1);
(b)	income support supplement.
(2)	If the person's conditional payment rate (if any) referred to in the relevant Rate Calculator in Part IIIA is less than the amount of the advance payment deduction, the difference between that rate and the amount of that deduction is to be deducted from the pension that would otherwise be payable to the person under Part II or IV.
Note: The expression "conditional payment rate" does not appear in the Method statement in point 45X-B2 and 45Y-B2. This is because those Method statements apply only to blind people and the relevant payment rate for a blind person will never be less than the advance payment deduction.
67JC The final advance payment deduction--pension under Part II or IV
If an amount of advance payment deduction that would otherwise be deducted from a person's rate of pension under Part II or IV exceeds the part of the advance payment that the person has not repaid (by previous deductions under this Division or otherwise), the amount of that advance payment deduction equals the part that the person has not yet repaid.
Facts: Betty's service pension is calculated in accordance with the Service Pension Rate Calculator for "Frozen Rate" Widows and Widowers. She is paid an advance of $500 (see subsection 67C(5)). Betty's payment deduction is worked out under section 67E as follows:
Betty's fortnightly rate of service pension is $30 (and therefore less than the amount of the advance payment deduction), so the difference between the 2 is to be deducted from her pension under Part II (see subsection 30(4) and section 67JA).
Result: If $58 is deducted from Betty's fortnightly rate of service pension and pension under Part II, $464 will have been deducted after 8 successive fortnights, leaving $36 unpaid.
The amendments of the Veterans' Entitlements Act 1986 made by items 67 to 77 apply only to a person who makes an application for an advance payment of service pension or income support supplement on or after 1 January 1997.
Omit "the operational area described in item 10", substitute "an operational
area described in item 10, 11, 12, 13 or 14".
(2AC)	For the purposes of the definitions of further advance and initial advance in subsection 4(1), a man who:
(a)	was an eligible person in his own right; and
(b)	is the widower of a person of a kind referred to in subsection (2AA);
(c)	he was an eligible person in his own right; or
(d)	his wife was an eligible person and he and she were, under subsection 4A(1), together treated as an eligible person for the purposes of this Act; or
(e)	his wife was an eligible person and he became an eligible person because his wife died; or
(f)	he was an eligible person because he was a dependent parent.
(1)	This section is about the rate of interest that, under paragraph 17(3)(d), is to be specified in a certificate of entitlement relating to an additional advance that a person may seek from the Bank.
(2)	If the person is a borrower in respect of a single-tiered initial advance or a single-tiered further advance, the following provisions apply:
(a)	if the person is charged interest on the initial or further advance at the rate of 6.85% per year, the rate of interest to be specified in the certificate of entitlement is 6.85% per year;
(i)	the person is charged interest on the initial or further advance at the rate of 3.75% per year; and
(ii)	the person has already received an additional advance (previous advance), or additional advances (previous advances);
(iii)	in respect of so much (if any) of the additional advance as, together with the previous advance or advances, does not exceed $10,000--10% per year; and
(iv)	in respect of so much (if any) of the additional advance as, together with the previous advance or advances, exceeds $10,000 but does not exceed $13,000--7.25% per year; and
(v)	in respect of so much (if any) of the additional advance as, together with the previous advance or advances, exceeds $13,000--3.75% per year;
(ii)	the person has not already received an additional advance;
(iii)	in respect of so much of the additional advance as does not exceed $10,000--10% per year; and
(iv)	in respect of so much of the additional advance as exceeds $10,000 but does not exceed $13,000--7.25% per year; and
(v)	in respect of so much of the additional advance as exceeds $13,000--3.75% per year.
(3)	If the person is a borrower in respect of a multi-tiered (6.85% interest) further advance, the rate of interest to be specified in the certificate of entitlement is 6.85% per year.
(4)	If the person is a borrower in respect of:
(a)	a multi-tiered initial advance or a multi-tiered further advance other than a multi-tiered (6.85% interest) further advance; or
(b)	an amount secured by a specified portfolio asset (other than a contract of sale) that vests in the bank under section 6B;
(c)	if the additional advance is for:
(i)	an amount of not more than $10,000; or
(ii)	an amount that, together with the additional advance or advances already made to the person, is not more than $10,000;
(d)	if the additional advance is for an amount that is not more than $10,000 but that, together with the additional advance or advances (previous advance or advances) already made to the person, is more than $10,000, the rate of interest to be specified in the certificate of entitlement is:
(i)	in respect of so much (if any) of the additional advance as, together with the previous advance or advances, does not exceed $10,000--10% per year; or
(ii)	in respect of so much (if any) of the additional advance as, together with the previous advance or advances, exceeds $10,000 but does not exceed $13,000--7.25% per year; or
(iii)	in respect of so much of the additional advance as, together with the previous advance or advances, exceeds $13,000--3.75% per year;
(e)	if the additional advance is for an amount of more than $10,000, the rate of interest to be specified in the certificate of entitlement is:
(i)	in respect of the first $10,000 of the additional advance--10% per year; and
(ii)	in respect of so much of the additional advance as exceeds $10,000 but does not exceed $13,000--7.25% per year; and
(iii)	in respect of so much of the additional advance as exceeds $13,000--3.75% per year.
multi-tiered (6.85% interest) further advance means a multi-tiered further advance in respect of part of which the borrower is charged interest at the rate of 6.85% per year.