Source: https://www.legislation.gov.au/Details/C2004A05109
Timestamp: 2019-08-21 11:12:16
Document Index: 480024397

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

Veterans' Affairs Legislation Amendment (1996-97 Budget Measures) Act 1997
Details: C2004A05109
- C2004A05109
Act No. 7 of 1997 as made
An Act to amend the Veterans' Entitlements Act 1986, and for related purposes
Originating Bill: Veterans' Affairs Legislation Amendment (1996-97 Budget Measures) Bill 1996
Date of Assent 05 Mar 1997
C2004A05109
Veterans’ Affairs Legislation Amendment (1996-97 Budget Measures) Act 1997
No. 7, 1997
An Act to amend the Veterans’ Entitlements Act 1986, and for related purposes
Schedule 1—Amendment of the Veterans’ Entitlements Act 1986
Part 1—Amendments relating to allocated pensions
Part 2—Amendments relating to earnings credits
Part 3—Amendments consequential upon the amendment of the Social Security Act 1991
Part 4—Amendment relating to funeral benefits
Part 5—Amendment relating to the Victoria Cross allowance
Part 6—Amendment relating to lump sum compensation payments
Part 7—Amendments relating to extended deeming
Part 8—Amendments relating to service pensions and income support supplement
Part 9—Amendments relating to advance payments of service pension and income support supplement
Schedule 2—Amendment of the Defence Service Homes Act 1918
[Assented to 5 March 1997]
This Act may be cited as the Veterans’ Affairs Legislation Amendment (1996-97 Budget Measures) Act 1997.
(1) The following provisions commence on the day on which this Act receives the Royal Assent:
(a) sections 1, 2 and 3;
(b) Part 1, items 5 and 7, and Parts 6 and 9, of Schedule 1;
(c) Schedule 2.
(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 8 of Schedule 1 commences on the twenty-eighth day after the day on which this Act receives the Royal Assent.
(5) Part 2 (except items 5 and 7) and Part 7 of Schedule 1 commence, or are taken to have commenced, on 20 March 1997.
(6) Part 3 of Schedule 1 commences, or is taken to have commenced, 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:
2 Subsection 5J(1)
allocated pension has the meaning given by subsection (10).
3 At the end of section 5J
(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;
is not fully defined in the relevant trust deed or contract.
4 At the end of paragraph 52(1)(d)
Add “other than an allocated pension”.
5 Point 41-D1 (note 2)
Note 2: The application of the ordinary income test is affected by provisions concerning the following:
(a) the general concept of ordinary income (sections 46 and 46A);
(b) business income (sections 46B and 46C);
(c) deemed income from financial assets (sections 46D to 46L);
(d) income from retirement funds and annuities (sections 46Q to 46U);
(e) disposal of income (sections 48 to 48E);
(f) earnings credit under this Act (section 49);
(g) earnings credit under the Social Security Act (point 41‑D2A).
6 Point 41-D1 (note 2—paragraph (f))
7 Point 42-E1 (note 2)
8 Point 42-E1 (note 2—paragraph (f))
9 Point 45X‑E1 (note 2)
Note 2: The application of the adjusted income test is affected by provisions concerning the following:
(e) disposal of income (sections 48 to 48E).
10 Point 45Y‑D1 (note 2)
Note 2: The application of the adjusted income test is affected by provisions concerning:
11 Division 8 of Part IIIB
12 Section 56BA
13 Section 59A (Indexed and Adjusted Amounts Table—
item 8A)
14 Section 59B (CPI Indexation Table—item 5A)
15 Point 41-D1 (note 2—paragraph (g))
16 Point 41-D2A
17 Point 42-E1 (note 2—paragraph (g))
18 Point 42-E2A
19 Point 45X-E1 (method statement—step 2)
Omit “45X-E3”, substitute “45X-E3A”.
20 Point 45X‑E3
21 Point 45Y‑D3
22 Subsection 99(5)
(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.
24 Subsection 103(4)
Omit “$250”, substitute “$2,700”.
25 Paragraph 59Q(2)(c)
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)”.
26 After subsection 59Q(2)
Person member of a couple (lump sum received on or after 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);
the pension, or (if the pension has a dependent child component) the compensation affected component of the pension, is not payable to the person for the lump sum preclusion period.
Note 1: For compensation affected pension, dependent child component and compensation affected component see subsection 5NB(1).
Note 2: For lump sum preclusion period see subsections (3) to (7).
27 Subsection 59Q(7)
(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:
OIFA (ordinary income free area) means the amount specified in column 3 of item 1 in Table D-1 in point 41-D4.
MBR (maximum basic rate) means the amount specified in column 3 of item 1 in Table B in point 41-B1.
RPA (rate of pharmaceutical allowance) means the rate of pharmaceutical allowance calculated as set out in point 41-CA7.
Note: For compensation part of lump sum and average weekly earnings see section 5NB.
28 Section 59Q (Lump sum preclusion period examples and heading)
Repeal the examples and heading, substitute:
Example: How the lump sum preclusion period is worked out
Facts: Jane is not a member of a couple. She has no dependent children. She is receiving an invalidity service pension when a lump sum compensation award of $11,000 is made to her on 25 March 1997. The compensation part of this lump sum is $5,500 (see subsection 5NB(7)).
Result: Jane’s lump sum preclusion period is:
Therefore Jane’s lump sum preclusion period is 13 weeks.
29 Subsection 59R(2)
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).
30 Subsection 59R(3)
After “If”, insert “the person receives compensation in the form of a lump sum before 20 March 1997 and”.
31 Before paragraph 59R(4)(a)
(aa) the person receives compensation in the form of a lump sum before 20 March 1997; and
32 At the end of section 59R (but before the Lump sum recoverable amount and preclusion period examples)
(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.
33 Section 59R (Lump sum recoverable amount and preclusion period examples and heading)
Example: How the lump sum recoverable amount is worked out
Facts: Jane, whose situation is described in the example in section 59Q, has a lump sum preclusion period of 13 weeks. That preclusion period commenced 6 weeks ago. During those 6 weeks, Jane received a total of $688.10 in invalidity service pension payments. The Commission writes to Jane telling her of the recoverable amount that she is liable to repay the Commonwealth.
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.
34 Subsection 46D(3)
(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.
Example: How deemed income of a person who is not a member of a couple is worked out
Facts: Elaine, a single pensioner, has $36,500 worth of financial assets. $1,500 is in a cheque account not earning any interest. $25,000 is earning 6% in interest and $10,000 is earning 8% in interest. The below threshold rate is 5%. The above threshold rate is 7%.
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.
Step 3. The amount of $6,500 is multiplied by the above threshold rate (7%):
Step 4. The amounts worked out at Steps 1 and 3 are added together:
The ordinary income that Elaine is deemed to receive from her financial assets is $1,955 per year.
35 Subsection 46E(3)
(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.
Example: How deemed income of a couple is worked out
Facts: Maree and Peter, a couple, have $68,500 worth of financial assets. They have $3,500 in a savings account earning interest at 2.8% and deposits of $25,000 and $40,000 earning 5% p.a. and 8% p.a. in interest respectively. The below threshold rate is 5%. The above threshold rate is 7%.
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.
Step 3. The amount of $18,500 is multiplied by the above threshold rate (7%):
The ordinary income that the couple is deemed to receive from their financial assets is $3,795 per year.
36 Section 46F
37 Section 46G
Omit “any of sections 46D to 46F”, substitute “section 46D or 46E”.
38 Subsection 46L(2)
39 Clause 7 of Schedule 5
Omit “46F”, substitute “46E”.
40 Subsections 36L(1) and (2)
(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).
41 After subsection 36L(3) (but before the note)
(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.
42 Section 36M
36M Date of effect of determination
If the Commission determines under section 36L that age service pension is payable to the person:
(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.
43 Subsections 37L(1) and (2)
44 After subsection 37L(3) (but before the note)
(i) work out the person’s invalidity service pension rate under section 37N; and
45 Section 37M
37M Date of effect of determination
If the Commission determines under section 37L that invalidity service pension is payable to the person:
(b) subject to this Act, invalidity service pension is payable to the person at the rate specified in the determination.
46 Subsections 38L(1) and (2)
47 After subsection 38L(3) (but before the note)
(i) work out the person’s partner service pension rate under section 38N; and
48 Section 38M
38M Date of effect of determination
If the Commission determines under section 38L that partner service pension is payable to the person:
(b) subject to this Act, partner service pension is payable to the person at the rate specified in the determination.
49 Subsections 39L(1) and (2)
50 After subsection 39L(3) (but before the note)
(i) work out the person’s carer service pension rate under section 39N; and
51 Section 39M
39M Date of effect of determination
If the Commission determines under section 39L that carer service pension is payable to the person:
(b) subject to this Act, carer service pension is payable to the person at the rate specified in the determination.
52 Subsections 45Q(1) and (2)
53 After subsection 45Q(3) (but before the note)
(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.
54 Section 45R
45R Date of effect of determination
If the Commission determines under section 45Q that income support supplement is payable to the person:
(b) subject to this Act, income support supplement is payable to the person at the rate specified in the determination.
55 Section 45S
Omit “The rate at which a person’s income support supplement is payable”, substitute “A person’s income support supplement rate”.
56 Subsections 56C(1) and (2)
Omit “may”, substitute “must, subject to section 56DA,”.
57 At the end of subsection 56C(3)
; 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.
58 At the end of section 56C
(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.
59 Subsection 56D(1)
60 Subsection 56D(2)
(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.
61 After section 56D:
56DA No rate increase or reduction for small amounts
(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.
62 After section 56L
Insert in Division 15:
56M Effect of cancellation or suspension
(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).
56N Changes to payments by computer
(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;
the change is taken to have been made because of a determination by the Commission for that reason.
Note 1: This section does not apply where:
(a) an automatic termination is produced by section 56, 56A, 56BB or 56BC; or
(b) an automatic rate reduction is produced by section 56B or 56BA.
63 Paragraph 57(2)(d)
Omit “an application”, substitute “a request”.
64 Paragraph 61(1)(c)
65 Paragraph 61(2)(b)
(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;
was paid to the person within the period of 12 months immediately before the application is made for the advance payment; or
(c) the person owes a debt to the Commonwealth under section 205 or 205A.
66 Application of amendments
(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 the day on which this Act receives the Royal Assent.
(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 the day on which this Act receives the Royal Assent;
(i) receives an advance payment of service pension or income support supplement in respect of an application for that payment made before the day on which this Act receives the Royal Assent; 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).
67 Subsection 30(1)
Omit “subsection (3)”, substitute “subsections (3) and (4)”.
68 At the end of section 30
(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).
69 Section 60
After “Part”, insert “, unless the contrary intention appears”.
70 Subsection 67C(2)
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”.
71 At the end of section 67C
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;
the maximum amount of the advance payment to the person is $500.
72 At the end of subsection 67D(1)
Note: In some circumstances, an amount of advance payment deduction may be made from the pension payable to a person under Part II or IV (see sections 67JA and 67JB).
73 Section 67E
Omit “and 67J”, substitute “, 67J, 67JA, 67JB and 67JC”.
74 Subsection 67F(1)
75 Subsection 67G(1)
76 Subsection 67H(2)
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”.
77 Section 67J
67J Conditional payment rate of pension insufficient to cover advance payment deduction
(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.
67JA Service pension insufficient to cover advance payment deduction (war widows and war widowers)
(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.
67JB Income support supplement insufficient to cover advance payment deduction (war widows and war widowers)
(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.
Example: How to work out the final advance payment deduction from pension under Part II
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:
This amount is rounded under section 67K to $38.50.
Betty has requested that the advance payment deduction be the larger amount of $58 (see section 67F), so that the advance will be paid sooner.
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.
Under this section, the final advance payment deduction will be $36 ($30 from the service pension and $6 from the pension under Part II).
78 Application of amendments
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 the day on which this Act receives the Royal Assent.
Omit “the operational area described in item 10”, substitute “an operational area described in item 10, 11, 12, 13 or 14”.
(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
4 Section 33
33 Rates of interest on additional advances
(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);
the rate of interest to be specified in the certificate of entitlement is:
(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.
Note: For single-tiered advance see subsection (5).
(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.
Note: For multi-tiered (6.85% interest) further advance see subsection (5).
(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;
the rate of interest to be specified in the certificate of entitlement is 10% per year;
(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.
Note 1: For multi-tiered advance and multi-tiered (6.85% interest) further advance see subsection (5).
Note 2: For specified portfolio asset see subsection 4(1).
single-tiered advance means an advance with a single rate of interest charged in respect of the whole amount of the advance.
multi-tiered advance means an advance with different rates of interest charged in respect of parts of the amount of the advance.
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.
House of Representatives on 18 September 1996
(119/96)
Senate on 9 December 1996]