Commonwealth: Veterans' Affairs and Other Legislation Amendment (Pension Reform) Act 2009 (Cth)

Veterans' Affairs and Other Legislation Amendment (Pension Reform) Act 2009 No. 81, 2009 An Act to amend the law relating to veterans' affairs, social security, military rehabilitation and compensation and aged care, and for related purposes Contents 1 Short title 2 Commencement 3 Schedule(s) Schedule 1—Increased pension and income support supplement Part 1—Main amendments Veterans' Entitlements Act 1986 Part 2—Related amendments Veterans' Entitlements Act 1986 Part 3—Other amendments Division 1—Veterans' Entitlements Act 1986 Division 2—Social Security Act 1991 Part 4—Application Schedule 2—Indexation using the Pensioner and Beneficiary Living Cost Index Veterans' Entitlements Act 1986 Schedule 3—Indexation using combined couple benchmark Veterans' Entitlements Act 1986 Schedule 4—Supplements Part 1—Pension supplement Veterans' Entitlements Act 1986 Part 2—Quarterly pension supplement and seniors supplement Veterans' Entitlements Act 1986 Part 3—Veterans supplement Veterans' Entitlements Act 1986 Part 4—MRCA supplement Military Rehabilitation and Compensation Act 2004 Part 5—Other amendments Income Tax Assessment Act 1997 Military Rehabilitation and Compensation Act 2004 Social Security Act 1991 Social Security (Administration) Act 1999 Veterans' Entitlements Act 1986 Part 6—Application, saving and transitional Division 1—Veterans payments Division 2—MRCA payments Division 3—Social security payments Schedule 5—Adjustments because of Carbon Pollution Reduction Scheme Part 1—Main amendments Veterans' Entitlements Act 1986 Part 2—Related amendments Veterans' Entitlements Act 1986 Schedule 6—Income tests Part 1—Taper rate Veterans' Entitlements Act 1986 Part 2—Income free area Division 1—Main amendments Veterans' Entitlements Act 1986 Division 2—Consequential amendments Veterans' Entitlements Act 1986 Part 3—Application of amendments Schedule 7—Work bonus Veterans' Entitlements Act 1986 Schedule 8—Pension bonus scheme Veterans' Entitlements Act 1986 Schedule 9—Transitional arrangements Part 1—Main amendment Veterans' Entitlements Act 1986 Part 2—Related amendments Division 1—Amendments commencing on 20 September 2009 Veterans' Entitlements Act 1986 Division 2—Amendments commencing on 21 September 2009 Veterans' Entitlements Act 1986 Part 3—Other amendments Social Security Act 1991 Schedule 10—Pension age for persons other than veterans Veterans' Entitlements Act 1986 Schedule 11—Advance payments Veterans' Entitlements Act 1986 Schedule 12—Amendments relating to aged care Aged Care Act 1997 Veterans' Affairs and Other Legislation Amendment (Pension Reform) Act 2009 No. 81, 2009 An Act to amend the law relating to veterans' affairs, social security, military rehabilitation and compensation and aged care, and for related purposes [Assented to 10 September 2009] The Parliament of Australia enacts: 1 Short title This Act may be cited as the Veterans' Affairs and Other Legislation Amendment (Pension Reform) Act 2009. 2 Commencement (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 this Act receives the Royal Assent. 10 September 2009 2. Schedule 1, Parts 1 and 2 20 September 2009. 20 September 2009 3. Schedule 1, Part 3, Division 1 20 September 2009. 20 September 2009 4. Schedule 1, Part 3, Division 2 Immediately after the commencement of Schedule 4 to the Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget Measures) Act 2009. 20 September 2009 5. Schedule 1, Part 4 20 September 2009. 20 September 2009 6. Schedule 2 The day this Act receives the Royal Assent. 10 September 2009 7. Schedule 3 1 January 2010. 1 January 2010 8. Schedule 4, Parts 1, 2, 3 and 4 20 September 2009. 20 September 2009 9. Schedule 4, items 54 to 111 Immediately after the commencement of Schedule 4 to the Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget Measures) Act 2009. 20 September 2009 10. Schedule 4, item 112 Immediately after the commencement of Schedule 5 to the Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget Measures) Act 2009. Does not commence However, if that Schedule does not commence, the provision(s) do not commence at all. 11. Schedule 4, items 113 to 206 Immediately after the commencement of Schedule 4 to the Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget Measures) Act 2009. 20 September 2009 12. Schedule 4, Part 6 20 September 2009. 20 September 2009 13. Schedule 5 Immediately after the commencement of Part 1 of Schedule 3 to the Carbon Pollution Reduction Scheme Amendment (Household Assistance) Act 2009. Does not commence However, if that Part does not commence, the provision(s) do not commence at all. 14. Schedules 6 and 7 20 September 2009. 20 September 2009 15. Schedule 8 The day this Act receives the Royal Assent. 10 September 2009 16. Schedule 9, Part 1 20 September 2009. 20 September 2009 17. Schedule 9, Part 2, Division 1 20 September 2009. 20 September 2009 18. Schedule 9, Part 2, Division 2 21 September 2009. 21 September 2009 19. Schedule 9, Part 3 Immediately after the commencement of Part 1 of Schedule 10 to the Social Security and Other Legislation Amendment (Pension Reform and Other 2009 Budget Measures) Act 2009. 20 September 2009 20. Schedule 10 The day this Act receives the Royal Assent. 10 September 2009 21. Schedule 11 1 July 2010. 1 July 2010 22. Schedule 12 20 September 2009. 20 September 2009 Note: This table relates only to the provisions of this Act as originally passed by both Houses of 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. 3 Schedule(s) 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. Schedule 1—Increased pension and income support supplement Part 1—Main amendments Veterans' Entitlements Act 1986 1 Subsection 30(1) After "sum of", insert "the following amounts per fortnight". 2 Paragraph 30(1)(a) Repeal the paragraph, substitute: (a) 1/26 of the amount specified in column 3 of item 1 of the table in point SCH6‑B1 of Schedule 6; 3 Paragraph 30(1)(b) Omit "per fortnight; and", substitute ";". 4 Paragraph 30(1)(c) Repeal the paragraph, substitute: (c) $25.60. 5 At the end of subsection 30(1) Add: Note: Each of the amounts referred to in paragraphs (1)(a), (b) and (c) is subject to indexation (see Division 18 of Part IIIB for indexation of the amount referred to in paragraph (1)(a), and section 198 for indexation of the amounts in paragraphs (1)(b) and (c)). 6 Subsection 30(1A) Repeal the subsection. 7 After section 198FA Insert: 198FB Rates for service pension and income support supplement increased on 20 September 2009 Maximum basic rate for single person (1) This Act has effect as if, on 20 September 2009, the indexed amount substituted under section 59C for the amount specified in column 3 of item 1 of the table in point SCH6‑B1 of Schedule 6 on that day were in turn replaced with an amount equal to the indexed amount plus $1,560.00. Ceiling rate (2) This Act has effect as if, on 20 September 2009, the amount substituted under section 59LA for the amount specified in point SCH6‑A4 of Schedule 6 on that day were in turn replaced with an amount worked out as follows: Method statement Step 1. Work out the amount substituted under section 59LA for the amount specified in point SCH6‑A4 of Schedule 6 on 20 September 2009 (apart from this subsection). Step 2. Work out what would have been the indexed rate substituted under section 198E for the rate of utilities allowance under column 3 of item 1 of the table in section 118OC on 20 September 2009 had those sections not been repealed. Step 3. Work out, on the assumption that section 198F and subsection 118SA(1) had not been repealed: (a) what would have been the rate substituted under that section for the rate payable under that subsection on 20 September 2009; or (b) if there would not have been such a substitution, the rate that would have been payable under that subsection on that day. Note: Subsection 118SA(1) dealt with telephone allowance for certain persons with internet connections at home. Step 4. Add up: (a) the results of steps 1, 2 and 3; and (b) $130. Step 5. If the result of step 4 is not a multiple of $2.60, round that result up to the nearest multiple of $2.60. Part 2—Related amendments Veterans' Entitlements Act 1986 8 Subsection 198(1) (paragraph (e) of the definition of relevant rate) Repeal the paragraph, substitute: (e) the amount specified in paragraph 30(1)(c). 9 Subsection 198(4) (note 1) Omit "Note 1:", substitute "Note:". 10 Subsection 198(4) (note 2) Repeal the note. 11 Subsections 198(5A), (5D), (6), (7) and (8) Repeal the subsections. Part 3—Other amendments Division 1—Veterans' Entitlements Act 1986 12 Section 45UF (cell at table item 1, column headed "The person's annual pension rate is:") Repeal the cell, substitute: the rate that would be the person's provisional payment rate under method statement 1 in subpoint SCH6‑A1(2), ascertained as at the date of the grant, if it were assumed that the person's maximum payment rate were the sum of: (a) the person's maximum basic rate under Module B of the Rate Calculator; and (b) the person's pension supplement basic amount 13 Section 45UF (cell at table item 2, column headed "The person's annual pension rate is:") Repeal the cell, substitute: the sum of: (a) the person's maximum basic rate under Module B of the Rate Calculator; and (b) the person's pension supplement basic amount; ascertained as at the date of the grant 14 Section 45UF (cell at table item 3, column headed "The person's annual pension rate is:") Repeal the cell, substitute: the lesser of the following rates (or, if the rates are the same, the first rate): (a) the person's ceiling rate under point SCH6‑A4, ascertained as at the date of the grant; (b) the rate that would be the person's provisional payment rate under method statement 1 in subpoint SCH6‑A1(2), ascertained as at the date of the grant, if it were assumed that the method statement applied and the person's maximum payment rate were the sum of: (i) the person's maximum basic rate under Module B of the Rate Calculator; and (ii) the person's pension supplement basic amount 15 Section 45UF (cell at table item 5, column headed "The person's annual pension rate is:") Repeal the cell, substitute: the rate that would be the person's provisional payment rate under method statement 5 in subpoint SCH6‑A1(6), ascertained as at the date of the grant, if it were assumed that the person's maximum payment rate were the sum of: (a) the person's maximum basic rate under Module B of the Rate Calculator; and (b) the person's pension supplement basic amount 16 Subsection 45UH(1) (table item 1, column headed "The person's annual notional single pension rate is:") Omit "pension supplement under Module BA", substitute "pension supplement basic amount". 17 Subsection 45UH(1) (table item 2, column headed "The person's annual notional single pension rate is:") Omit "amounts worked out under steps 2 and 2A of method statement 2 in subpoint SCH6‑A1(3)", substitute "person's maximum basic rate under point SCH6‑B1 and the person's pension supplement basic amount". 18 Subsection 45UH(2) (paragraph (a) of the definition of provisional payment rate) Omit "pension supplement under Module BA", substitute "pension supplement basic amount". 19 Subsection 45UH(2) (paragraph (b) of the definition of provisional payment rate) Omit "amounts under steps 2 and 2A of method statement 2 in subpoint SCH6‑A1(3)", substitute "person's maximum basic rate under point SCH6‑B1 and the person's pension supplement basic amount". 20 Subsection 45UH(2) (subparagraph (c)(iv) of the definition of provisional payment rate) Omit "pension supplement under point 1064‑BA2 of that Act", substitute "pension supplement basic amount". 21 Subsection 45UH(2) (subparagraph (d)(iv) of the definition of provisional payment rate) Omit "pension supplement under point 1065‑BA2 of that Act", substitute "pension supplement basic amount". 22 Subsection 45UH(3) (definition of maximum basic rate) Omit "amounts worked out under steps 2 and 2A of method statement 2 in subpoint SCH6‑A1(3)", substitute "person's maximum basic rate under point SCH6‑B1 and the person's pension supplement basic amount". 23 Subsection 45UI(1) (table item 1, column headed "The person's annual notional partnered pension rate is:") Omit "pension supplement under Module BA", substitute "pension supplement basic amount". 24 Subsection 45UI(1) (table item 2, column headed "The person's annual notional partnered pension rate is:") Omit "amounts worked out under steps 2 and 2A of method statement 2 in subpoint SCH6‑A1(3)", substitute "person's maximum basic rate under point SCH6‑B1 and the person's pension supplement basic amount". 25 Subsection 45UI(2) (paragraph (a) of the definition of provisional payment rate) Omit "pension supplement under Module BA", substitute "pension supplement basic amount". 26 Subsection 45UI(2) (paragraph (b) of the definition of provisional payment rate) Omit "amounts under steps 2 and 2A of method statement 2 in subpoint SCH6‑A1(3)", substitute "person's maximum basic rate under point SCH6‑B1 and the person's pension supplement basic amount". 27 Subsection 45UI(2) (subparagraph (c)(iv) of the definition of provisional payment rate) Omit "pension supplement under point 1064‑BA2 of that Act", substitute "pension supplement basic amount". 28 Subsection 45UI(2) (subparagraph (d)(iv) of the definition of provisional payment rate) Omit "pension supplement under point 1065‑BA2 of that Act", substitute "pension supplement basic amount". 29 Subsection 45UI(3) (definition of maximum basic rate) Omit "amounts worked out under steps 2 and 2A of method statement 2 in subpoint SCH6‑A1(3)", substitute "person's maximum basic rate under point SCH6‑B1 and the person's pension supplement basic amount". 30 Section 45UIA (paragraph (a) of the definition of provisional payment rate) Omit "steps 2 and 3 were omitted from the method statement", substitute "the person's maximum payment rate were the sum of the person's maximum basic rate under point SCH6‑B1 and the person's pension supplement basic amount". 31 Section 45UIA (paragraph (b) of the definition of provisional payment rate) Omit "amounts under steps 2 and 2A of method statement 2 in subpoint SCH6‑A1(3)", substitute "person's maximum basic rate under point SCH6‑B1 and the person's pension supplement basic amount". 32 Section 45UIA (paragraph (c) of the definition of provisional payment rate) Omit "steps 2 and 3 were omitted from the method statement", substitute "the person's maximum payment rate were the sum of the person's maximum basic rate under Table B in point 1064‑B1 of the Social Security Act 1991 and the person's pension supplement basic amount". 33 Section 45UIA (paragraph (d) of the definition of provisional payment rate) Omit "pension supplement under point 1065‑BA2", substitute "pension supplement basic amount". Division 2—Social Security Act 1991 34 Subparagraphs 93J(3)(a)(ii) and (b)(ii) and (4)(a)(ii) and (b)(ii) Repeal the subparagraphs, substitute: (ii) the amount worked out for the person using the table in subsection 93H(4); 35 Subsection 93J(5) (definition of maximum basic rate) Omit "amounts worked out under steps 1 and 1A of the method statement in point 1064‑A1", substitute "person's maximum basic rate worked out using Module B of Pension Rate Calculator A in section 1064 and the amount worked out for the person using the table in subsection 93H(4)". Part 4—Application 36 Amendments of the Veterans' Entitlements Act 1986 (1) The amendments of the Veterans' Entitlements Act 1986 made by this Schedule (except Division 1 of Part 3) apply for the purposes of working out the rates of payments under that Act for days on or after 20 September 2009. (2) To avoid doubt, section 198FB of the Veterans' Entitlements Act 1986 applies in working out the amount specified in paragraph 30(1)(a) of that Act (as amended by this Schedule) for 20 September 2009. (3) Subitem (2) does not limit the application of section 198FB of the Veterans' Entitlements Act 1986. (4) The amendments of the Veterans' Entitlements Act 1986 made by Division 1 of Part 3 of this Schedule apply for the purposes of working out the amount of pension bonus for a person who starts to receive a designated pension on or after 20 September 2009. (5) Despite subitem (1), the amount specified in paragraph 30(1)(c) of the Veterans' Entitlements Act 1986 is not to be indexed under section 198 of that Act before 20 March 2010. Note: Subitem (5) affects the application of the amendment by this Schedule of subsection 198(1) of the Veterans' Entitlements Act 1986 only so far as the amendment relates to the indexation of the amount specified in paragraph 30(1)(c) of that Act, and not so far as the amendment prevents the indexation under section 198 of that Act on and after 20 September 2009 of the rate specified in paragraph 30(1)(a) of that Act. 37 Amendments of the Social Security Act 1991 The amendments of the Social Security Act 1991 made by Division 2 of Part 3 of this Schedule apply for the purposes of working out the amount of pension bonus for a person whose start day for the age pension is on or after 20 September 2009. Schedule 2—Indexation using the Pensioner and Beneficiary Living Cost Index Veterans' Entitlements Act 1986 1 After paragraph 59(a) Insert: (aa) the indexation of the maximum basic rates for service pension and income support supplement using the Pensioner and Beneficiary Living Cost Index; and 2 Subsection 59C(2) (method statement, step 5) After "amount:", insert "subject to section 59EAA,". 3 Subsection 59C(2) (method statement, step 5) After "The indexed amount", insert "(including one replaced under section 59EAA)". 4 After section 59E Insert: 59EAA Indexation using Pensioner and Beneficiary Living Cost Index (1) This section applies to the pension MBR amount (see item 1 of the table in section 59A). (2) If the indexed amount for the pension MBR amount, worked out under section 59C on an indexation day and disregarding section 59EA and this section, is less than the living cost amount worked out on that indexation day using the following method statement, then that indexed amount is taken to be an amount equal to that living cost amount: Method statement Step 1. Use section 59EAB to work out the living cost indexation factor on that indexation day. Step 2. Work out the current figure for the pension MBR amount immediately before that indexation day. Note: For current figure see subsection 5NA(1). Step 3. Multiply the current figure by the living cost indexation factor: the result is the provisional living cost amount. Step 4. Use section 59EAC to round off the provisional living cost amount: the result is the living cost amount. Note: If the indexed amount for the pension MBR amount, worked out under section 59C, is taken to be an amount equal to that living cost amount, there may be a further increase of that replaced indexed amount under section 59EA. 59EAB Living cost indexation factor (1) Subject to subsections (5) and (6), the living cost indexation factor on an indexation day is: worked out to 3 decimal places. Definitions (2) For the purposes of this section, the living cost index number, in relation to a quarter, is the All Groups Pensioner and Beneficiary Living Cost Index number that is the weighted average of the 8 capital cities and is published by the Australian Statistician in respect of that quarter. (3) For the purposes of this section, the reference quarter is: (a) if the indexation day is a 20 March—the most recent December quarter before the indexation day; and (b) if the indexation day is a 20 September—the most recent June quarter before the indexation day. (4) For the purposes of this section, the base quarter is the June or December quarter that: (a) is a quarter before the reference quarter; and (b) has the highest living cost index number. Rounding (5) If a living cost indexation factor worked out under subsection (1) would, if it were worked out to 4 decimal places, end in a number that is greater than 4, that indexation factor is to be increased by 0.001. (6) If a living cost indexation factor worked out under subsections (1) and (5) would be less than 1, that indexation factor is to be increased to 1. Publication of substituted living cost index numbers (7) Subject to subsection (8), if at any time (whether before or after the commencement of this section) the Australian Statistician publishes a living cost index number for a quarter in substitution for a living cost index number previously published by the Australian Statistician for that quarter, the publication of the later living cost index number is to be disregarded for the purposes of this section. Change to reference base (8) If at any time (whether before or after the commencement of this section) the Australian Statistician changes the reference base for the Pensioner and Beneficiary Living Cost Index, regard is to be had, for the purposes of applying this section after the change takes place, only to living cost index numbers published in terms of the new reference base. 59EAC Rounding off amounts (1) If a provisional living cost amount is a multiple of $2.60, the provisional living cost amount becomes the living cost amount. (2) Subject to subsection (3), if a provisional living cost amount is not a multiple of $2.60, the living cost amount is the provisional living cost amount rounded up or down to the nearest multiple of $2.60. (3) If a provisional living cost amount is not a multiple of $2.60 but is a multiple of $1.30, the living cost amount is the provisional living cost amount rounded up to the nearest multiple of $2.60. 5 Point SCH6‑B1 of Schedule 6 (at the end of note 2) Add "See also sections 59EAA to 59EAC (about Pensioner and Beneficiary Living Cost Index indexation).". 6 Application The amendments made by items 2 to 4 apply in relation to the indexation day that is 20 September 2009 and all later indexation days. 7 Transitional—adjustment of ceiling rate on 20 September 2009 Section 59LA of the Veterans' Entitlements Act 1986 applies in relation to the adjustment day that is 20 September 2009 as if the current single pension MBR amount on that day were the amount that would have been the current single pension MBR amount on that day if the amendments made by Part 1 of Schedule 1 to this Act had not been made. Schedule 3—Indexation using combined couple benchmark Veterans' Entitlements Act 1986 1 Section 59A (table item 1, column 2) After "income support supplement", insert "for a person who is partnered". 2 Section 59A (table item 1, column 4) Omit: *Rate Calculator—point SCH6‑B1—Table B—column 3—all amounts substitute: *Rate Calculator—point SCH6‑B1—Table B—column 3—item 2 3 Section 59A (after table item 1) Insert: 1A. Maximum basic rates for service pension or income support supplement for a person who is not partnered single pension rate MBR *Rate Calculator—point SCH6‑B1—Table B—column 3—item 1 4 Subsection 59EA(1) (definition of category A amount) Repeal the definition. 5 Subsection 59EA(2) Repeal the subsection, substitute: (2) If: (a) a category B amount is to be indexed under this Subdivision on an indexation day; and (b) 50% of the combined couple benchmark for that indexation day exceeds the indexed amount for the category B amount; then: (c) the indexed amount for the category B amount is to be increased by an amount equal to the excess; and (d) if the indexed amount for the category B amount (as increased under paragraph (c)) is not a multiple of $2.60, the indexed amount (as increased under paragraph (c)) is to be further increased by rounding up to the next highest multiple of $2.60. (2A) For the purposes of this section, the combined couple benchmark, for an indexation day, is 41.76% of the annualised MTAWE figure for whichever of the following quarters is applicable: (a) if the indexation day is a 20 March—the most recent December quarter; (b) if the indexation day is a 20 September—the most recent June quarter. 6 Before section 59GA Insert: 59G Adjustment of single pension rate MBR amount (1) This Act has effect as if, on 20 March (an indexation day) and 20 September (an indexation day) each year, the adjusted single pension amount were substituted for the single pension rate MBR amount (see item 1A of the table in section 59A). (2) For the purposes of this section, the adjusted single pension amount is worked out as follows: Method statement Step 1. Work out the amount substituted for the pension MBR amount (see item 1 of the table in section 59A) on that indexation day under section 59C. Step 2. Multiply the amount worked out at step 1 by 2. Step 3. Work out 66.33% of the amount worked out at step 2. Step 4. Round the amount worked out at step 3 to the nearest multiple of $2.60 (rounding up if necessary): the result is the adjusted single pension amount. 7 Subsections 59LA(1) and (2) Repeal the subsections, substitute: (1) This Act has effect as if, on each adjustment day, the amount worked out in accordance with the following formula, and rounded up to the nearest multiple of $2.60, were substituted for the ceiling rate: where: pension MBR factor is: previous ceiling rate is the ceiling rate applicable on the day before the adjustment day. (2) In subsection (1): current single pension rate MBR amount means the single pension rate MBR amount (see item 1A of the table in section 59A) applicable on the adjustment day. previous single pension rate MBR amount means the single pension rate MBR amount (see item 1A of the table in section 59A) applicable on the day before the adjustment day. 8 Point SCH6‑B1 of Schedule 6 (note 2) Repeal the note, substitute: Note 2: The maximum basic rates are adjusted 6 monthly: see sections 59B to 59G. Schedule 4—Supplements Part 1—Pension supplement Veterans' Entitlements Act 1986 1 After section 5G Insert: 5GA Pension supplement rate definitions (1) In this Act, the combined couple rate of pension supplement is $2,199.60. Note 1: This rate is indexed 6 monthly in line with CPI increases (see sections 59B to 59E). Note 2: This rate is an annual rate. (2) In this Act, the combined couple rate of minimum pension supplement is $1,185.60. Note 1: This rate is indexed 6 monthly in line with CPI increases (see sections 59B to 59E). Note 2: This rate is an annual rate. (3) In this Act, a person's minimum pension supplement amount is the amount worked out by: (a) applying the applicable percentage in the following table to the combined couple rate of minimum pension supplement; and (b) if: (i) the person is not partnered; and (ii) the amount resulting from paragraph (a) is not a multiple of $2.60; rounding the amount up or down to the nearest multiple of $2.60 (rounding up if the amount is not a multiple of $2.60 but is a multiple of $1.30). Item Person's family situation Use this % 1 Not member of couple 66.33% 2 Partnered 50% 3 Member of illness separated couple 66.33% 4 Member of respite care couple 66.33% Note: A person's minimum pension supplement amount is an annual rate. (4) In this Act, a person's pension supplement basic amount depends on which family situation in the following table applies to the person. The person's pension supplement basic amount is the corresponding amount set out in the table. Item Person's family situation Amount 1 Not member of couple $509.60 2 Partnered $426.40 3 Member of illness separated couple $509.60 4 Member of respite care couple $509.60 Note 1: Each amount in the table will be indexed 6 monthly in line with CPI increases (see sections 59B to 59E). Note 2: A person's pension supplement basic amount is an annual rate. (5) In this Act, the daily rate of tax‑exempt pension supplement, for a person who is receiving a service pension or income support supplement is the amount a day worked out using the table. Tax‑exempt pension supplement Item Payment received Amount a day of tax‑exempt pension supplement 1 Service pension The amount worked out by: (a) subtracting the person's pension supplement basic amount from the person's pension supplement amount; and (b) dividing the result of paragraph (a) by 364 2 Income support supplement The person's minimum pension supplement amount divided by 364 Note: The portion of the person's service pension or income support supplement equal to the tax‑exempt pension supplement is exempt from income tax (see sections 52‑65 and 52‑70 of the Income Tax Assessment Act 1997). (6) If a person is receiving a service pension at a rate that: (a) is worked out under subpoint SCH6‑A1(4) of Schedule 6 and is the revised rate; or (b) is worked out under subpoint SCH6‑A1(5) of Schedule 6; subsection (5) applies in relation to the person and the pension as if the person had a pension supplement amount equal to what would be the person's pension supplement amount if the person were receiving the service pension at the rate worked out under subpoint SCH6‑A1(4) of Schedule 6 and equal to the provisional rate. 2 Paragraph 1(1)(aa) of Schedule 6 Repeal the paragraph. 3 Subclause 1(1) of Schedule 6 (note 1) Omit "rent assistance and pharmaceutical allowance", substitute "pension supplement and rent assistance". 4 Clause 4 of Schedule 6 Repeal the clause, substitute: 4 Application for income tax purposes of reductions in respect of service pension or income support supplement Service pension (1) If a person's rate of service pension is affected by a reduction under any or all of the following: (a) Module E (ordinary/adjusted income test) of the Rate Calculator; (b) Module F (assets test) of the Rate Calculator; (c) section 59T (compensation recovery); the reduction is to be applied as follows (in descending order): Item Component of the rate 1 all of the rate apart from the person's pension supplement amount and any increase under Module C (rent assistance) of the Rate Calculator 2 the portion of the person's pension supplement amount equal to the person's pension supplement basic amount 3 (a) if an election by the person under subsection 60A(1) is in force—any remaining portion of the person's pension supplement amount; or (b) otherwise—any remaining portion of the person's pension supplement amount to the extent to which it exceeds the person's minimum pension supplement amount 4 the amount of any increase under Module C 5 the person's minimum pension supplement amount Note: Table item 5 will not apply if an election by the person under subsection 60A(1) is in force, as the rate would have already been reduced to nil. (2) If a person's rate of service pension: (a) is worked out under subpoint SCH6‑A1(4) of Schedule 6 and is the revised rate; or (b) is worked out under subpoint SCH6‑A1(5) of Schedule 6; subclause (1) applies in relation to the person and the pension as if: (c) paragraphs (1)(a) and (b) were omitted; and (d) the person had a pension supplement amount equal to what would be the person's pension supplement amount if the person were receiving the service pension at the rate worked out under subpoint SCH6‑A1(4) of Schedule 6 and equal to the provisional rate. Income support supplement (3) If a person's rate of income support supplement is affected by a reduction under any or all of the following: (a) Module E (ordinary/adjusted income test) of the Rate Calculator; (b) Module F (assets test) of the Rate Calculator; (c) section 59T (compensation recovery); the reduction is to be applied as follows (in descending order): Item Component of the rate 1 all of the rate apart from any increase under Module C (rent assistance) of the Rate Calculator and the person's minimum pension supplement amount 2 the amount of any increase under Module C 3 the person's minimum pension supplement amount Quarterly pension supplement (4) If: (a) the rate (the main rate) of a person's service pension or income support supplement is to be reduced as described in subclause (1) (applying of its own force or as affected by subclause (2)) or subclause (3); and (b) an election by the person under subsection 60A(1) is in force; the person's quarterly pension supplement is reduced to the same extent (if any) that the component of the main rate that would correspond to the person's minimum pension supplement amount would be reduced under subclause (1) or (3) were the election not in force. Note: The reduction will be disregarded unless the person's quarterly pension supplement is reduced to nil (see subsection 60C(4)). 5 Subpoint SCH6‑A1(4) of Schedule 6 (method statement 3, step 5) Repeal the step, substitute: Step 5. Add: (a) the ceiling rate; and (b) any amount obtained under step 2A; and (c) any amount obtained under step 4; and, if an election by the person under subsection 60A(1) (about quarterly pension supplement) is in force, subtract the person's minimum pension supplement amount. The result is the revised rate. 6 Subpoint SCH6‑A1(5) of Schedule 6 (method statement 4, step 4) Repeal the step, substitute: Step 4. Add: (a) the ceiling rate; and (b) any amount obtained under step 1A; and (c) any amount obtained under step 3; and, if an election by the person under subsection 60A(1) (about quarterly pension supplement) is in force, subtract the person's minimum pension supplement amount. The result is the person's rate of service pension. Note: The amount of a fortnightly instalment of service pension may be reduced by an advance payment deduction (see Division 6 of Part IVA). 7 Subpoint SCH6‑A1(6) of Schedule 6 (method statement 5, step 9A) Repeal the step, substitute: Step 9A. Add: (a) the ceiling rate; and (b) any amount obtained under step 2; and, if an election by the person under subsection 60A(1) (about quarterly pension supplement) is in force, subtract the person's minimum pension supplement amount. The result is the increased rate. 8 Subpoint SCH6‑A1(7) of Schedule 6 (method statement 6, step 4) Repeal the step, substitute: Step 4. Add: (a) the ceiling rate; and (b) any amount obtained under step 1A; and (c) any amount obtained under step 3; and, if an election by the person under subsection 60A(1) (about quarterly pension supplement) is in force, subtract the person's minimum pension supplement amount. The result is the person's rate of income support supplement. Note: The amount of a fortnightly instalment of income support supplement may be reduced by an advance payment deduction (see Division 6 of Part IVA). 9 Part 2 of Schedule 6 (Module BA) Repeal the Module, substitute: Module BA—Pension supplement Pension supplement SCH6‑BA1 A pension supplement amount is to be added to the person's maximum basic rate. Residents in Australia etc. SCH6‑BA2 If the person is residing in Australia and: (a) is in Australia; or (b) is temporarily absent from Australia and has been so for a continuous period not exceeding 13 weeks; the person's pension supplement amount is: (c) if an election by the person under subsection 60A(1) is in force—the amount worked out under point SCH6‑BA4; and (d) otherwise—the amount worked out under point SCH6‑BA3. Residents in Australia etc.—no election in force SCH6‑BA3 The person's pension supplement amount is the amount worked out by: (a) applying the applicable percentage in the following table to the combined couple rate of pension supplement; and (b) if: (i) the person is not partnered; and (ii) the amount resulting from paragraph (a) is not a multiple of $2.60; rounding the amount up or down to the nearest multiple of $2.60 (rounding up if the amount is not a multiple of $2.60 but is a multiple of $1.30). Item Person's family situation Use this % 1 Not member of couple 66.33% 2 Partnered 50% 3 Member of illness separated couple 66.33% 4 Member of respite care couple 66.33% Note: For combined couple rate of pension supplement, see subsection 5GA(1). Residents in Australia etc.—election in force SCH6‑BA4 The person's pension supplement amount is the amount worked out as follows: (a) work out the amount for the person under point SCH6‑BA3 as if the election were not in force; (b) from that amount, subtract the person's minimum pension supplement amount. Persons absent from Australia for more than 13 weeks SCH6‑BA5 If the person is not covered by point SCH6‑BA2, the person's pension supplement amount is the person's pension supplement basic amount. Part 2—Quarterly pension supplement and seniors supplement Veterans' Entitlements Act 1986 10 After Part IIIC Insert: Part IIID—Quarterly pension supplement 60 When this Part applies (1) This Part applies to a person if: (a) the person is receiving a service pension or income support supplement (the main payment); and (b) the person is residing in Australia and: (i) is in Australia; or (ii) is temporarily absent from Australia and has been so for a continuous period not exceeding 13 weeks. (2) For the purposes of subsection (1), it does not matter if the rate of the person's main payment would become nil were an election by the person under subsection 60A(1) to come into force. 60A Quarterly pension supplement (1) The person may, in a manner or way approved by the Commission, make an election to receive the person's minimum pension supplement amount on a quarterly basis as a separate payment. (2) An election comes into force as soon as practicable after it is made. (3) An election ceases to be in force if the main payment ceases to be payable to the person. (4) The person may, in a manner or way approved by the Commission, revoke an election. A revocation takes effect as soon as practicable after it happens. (5) Quarterly pension supplement is payable to the person in relation to each day on which an election is in force. 60B Rate of quarterly pension supplement (1) The person's annual rate of quarterly pension supplement is the person's minimum pension supplement amount. (2) The person's daily rate of quarterly pension supplement is worked out by dividing the person's annual rate by 364. (3) This section has effect subject to subclause 4(4) of Schedule 6. 60C Payment of quarterly pension supplement (1) Quarterly pension supplement is to be paid by instalments. (2) An instalment of quarterly pension supplement is to be paid to a person as soon as is reasonably practicable on or after the first supplement test day (the current test day) that follows a day on which an election by the person under subsection 60A(1) is in force. (3) The amount of the instalment is worked out by multiplying the person's daily rate of quarterly pension supplement by the number of days during the test period for which an election by the person under subsection 60A(1) is in force. (4) If: (a) an election by the person under subsection 60A(1) is in force on a particular day; and (b) apart from this subsection, the portion of the instalment of the person's quarterly pension supplement that corresponds to that day would be reduced under subclause 4(4) of Schedule 6, but not reduced to a nil amount; the amount of that portion of the instalment is not to be reduced under subclause 4(4) of Schedule 6. (5) In this section: supplement test day means: (a) 20 March; or (b) 20 June; or (c) 20 September; or (d) 20 December. test period means the period: (a) starting on the most recent supplement test day before the current test day; and (b) ending on the day immediately before the current test day. 11 Part VIIAD Repeal the Part, substitute: Part VIIAD—Seniors supplement Division 1—Eligibility 118P Eligibility for seniors supplement Person holds a seniors health card (1) A person is eligible for seniors supplement if: (a) the person is the holder of a seniors health card; and (b) the person is not receiving any of the following: (i) a service pension; (ii) income support supplement; (iii) a social security pension or social security benefit; (iv) seniors supplement under the Social Security Act. Person holds a gold card (2) A person is eligible for seniors supplement if: (a) the person is the holder of a gold card; and (b) the person has reached qualifying age; and (c) the person: (i) is in Australia; or (ii) is temporarily absent from Australia and has been so for a continuous period not exceeding 13 weeks; and (d) the person is not receiving any of the following: (i) a service pension; (ii) income support supplement; (iii) a social security pension or social security benefit; (iv) seniors supplement under the Social Security Act. (3) In this section: gold card means a card known as the Repatriation Health Card—For All Conditions, that evidences a person's eligibility, under this Act or the Military Rehabilitation and Compensation Act 2004, to be provided with treatment for all injuries or diseases. 118PA When seniors supplement is payable (1) Seniors supplement is payable to a person in relation to each day on which the person is eligible for the supplement. (2) However, seniors supplement is not payable to the person in relation to a day if: (a) before that day: (i) the person had elected not to be covered by this Part; and (ii) that election had not been withdrawn; or (b) subsection 122A(1C) (failing to nominate a bank account) applies to the person. Division 2—Rate of seniors supplement 118PB Rate of seniors supplement (1) The person's annual rate of seniors supplement is the amount worked out by: (a) applying the applicable percentage in the following table to the combined couple rate of minimum pension supplement; and (b) if: (i) the person is not partnered; and (ii) the amount resulting from paragraph (a) is not a multiple of $2.60; rounding the amount up or down to the nearest multiple of $2.60 (rounding up if the amount is not a multiple of $2.60 but is a multiple of $1.30). Item Person's family situation Use this % 1 Not member of couple 66.33% 2 Partnered 50% 3 Member of illness separated couple 66.33% 4 Member of respite care couple 66.33% Note: For combined couple rate of minimum pension supplement, see subsection 5GA(2). (2) The person's daily rate of seniors supplement is worked out by dividing the person's annual rate by 364. Division 3—Payment of seniors supplement 118PC Payment of seniors supplement (1) Seniors supplement is to be paid by instalments. (2) An instalment of seniors supplement is to be paid to a person as soon as is reasonably practicable on or after the first seniors supplement test day (the current test day) that follows a day on which the person is eligible for seniors supplement. (3) The amount of the instalment is worked out by multiplying the person's daily rate of seniors supplement by the number of days during the test period for which the person was eligible for seniors supplement. (4) In this section: seniors supplement test day means: (a) 20 March; or (b) 20 June; or (c) 20 September; or (d) 20 December. test period means the period: (a) starting on the most recent supplement test day before the current test day; and (b) ending on the day immediately before the current test day. Part 3—Veterans supplement Veterans' Entitlements Act 1986 12 Part VIIA Repeal the Part, substitute: Part VIIA—Veterans supplement Division 1—Eligibility for veterans supplement 118A Veterans supplement for dependants of deceased veterans or for persons eligible for pharmaceutical benefits (1) Subject to this section, a person is eligible for veterans supplement under this section if: (a) the person is receiving a pension whose rate is specified under subsection 30(2); or (b) but for subsection 13(7), a pension would have been payable to the person at a rate specified under subsection 30(2); or (c) the person is eligible for pharmaceutical benefits under the scheme known as the Repatriation Pharmaceutical Benefits Scheme. (2) A person is not eligible for veterans supplement under this section if: (a) the person is receiving a social security payment; or (b) the person is receiving service pension; or (c) the person is a war widow/war widower—pensioner. Note: For war widow/war widower—pensioner see section 5Q. (3) A person who leaves Australia otherwise than temporarily is not eligible for veterans supplement under this section after the day on which he or she left Australia. (4) A person who is temporarily absent from Australia and has been so absent for more than 26 weeks is not eligible for veterans supplement under this section after the first 26 weeks of the absence. 118B Veterans supplement for certain Part II and Part IV pensioners or for World War 1 veterans (1) Subject to this section, a person is eligible for veterans supplement under this section if: (a) the person is eligible for a pension at a rate specified in subsection 22(4); or (b) the person is eligible for a pension at a rate specified in section 24; or (c) the person is eligible for a pension, the rate of which is increased under subsection 27(2) by an amount specified in any of items 1 to 8 of the table in subsection 27(1); or (d) the person is eligible for a pension at the rate specified in subsection 30(1) and the person is under qualifying age. Note: For qualifying age see section 5Q. (2) Subject to this section, a person is eligible for veterans supplement under this section if the person is: (a) a veteran who rendered eligible war service during World War 1; or (b) a Commonwealth veteran who rendered continuous full‑time service during World War 1; or (c) an allied veteran who rendered continuous full‑time service during World War 1. Note: For World War 1 see subsections 5B(1) and (3). (3) A person is not eligible for veterans supplement under this section if: (a) the person is receiving a social security payment; or (b) the person is receiving service pension or income support supplement; or (c) the person is receiving seniors supplement under this Act or the Social Security Act; or (d) the person is receiving MRCA supplement under Division 4 of Part 7 of Chapter 4, or Division 5 of Part 2 of Chapter 5, of the MRCA. (4) A person who leaves Australia otherwise than temporarily is not eligible for veterans supplement under this section after the day on which he or she left Australia. (5) A person who is temporarily absent from Australia and has been so absent for more than 26 weeks is not eligible for veterans supplement under this section after the first 26 weeks of the absence. Division 2—Rate of veterans supplement 118C Rate of veterans supplement—section 118A The rate of veterans supplement under section 118A is $6.00 per fortnight. Note: The amount specified in this section is adjusted annually in line with CPI increases under section 198F. 118D Rate of veterans supplement—section 118B The rate of veterans supplement under section 118B is $6.00 per fortnight. Note: The amount specified in this section is adjusted annually in line with CPI increases under section 198F. 13 Part VIIB Repeal the Part. 14 Subsection 121(7) (definition of pension) After "includes", insert "veterans supplement under Part VIIA or". 15 Section 198F Repeal the section, substitute: 198F Indexation of veterans supplement (1) This section applies to the dollar amount mentioned in the following provisions: (a) section 118C; (b) section 118D. (2) The dollar amount mentioned in that provision, for an indexation day on which the indexation factor is greater than one, is replaced by the amount that is worked out using the following formula: (3) The indexation factor for an indexation day is the number worked out using the following formula: (4) The indexation factor is to be calculated to 3 decimal places, but increased by 0.001 if the 4th decimal place is more than 4. (5) If an amount worked out under subsection (2) is not a multiple of 20 cents, the amount is to be rounded down to the nearest multiple of 20 cents. (6) In this section: indexation day means 1 January 2010 and each later 1 January. Part 4—MRCA supplement Military Rehabilitation and Compensation Act 2004 16 Division 4 of Part 7 of Chapter 4 (heading) Repeal the heading, substitute: Division 4—MRCA supplement for members and former members 17 Section 220A Repeal the section. 18 Subsection 221(1) Omit "a telephone allowance", substitute "MRCA supplement under this section". Note: The heading to section 221 is altered by omitting "telephone allowance" and substituting "MRCA supplement". 19 Paragraph 221(1)(b) Omit "1986); and", substitute "1986).". 20 Paragraph 221(1)(c) Repeal the paragraph. 21 Subsection 221(1) (note) Omit "telephone allowance", substitute "MRCA supplement". 22 Subsection 221(2) Omit "a telephone allowance", substitute "MRCA supplement under this section". 23 Paragraph 221(2)(b) Omit "1986); and", substitute "1986).". 24 Paragraph 221(2)(c) Repeal the paragraph. 25 Subsection 221(2) (note) Omit "telephone allowance", substitute "MRCA supplement". 26 Subsection 222(1) Omit "a telephone allowance on or after the next telephone allowance payday", substitute "MRCA supplement under section 221 after the day on which he or she left Australia". Note: The heading to section 222 is altered by omitting "Telephone allowance" and substituting "MRCA supplement". 27 Subsection 222(2) Omit "a telephone allowance", substitute "MRCA supplement under section 221". 28 Subsection 222(3) Omit "the telephone allowance", substitute "MRCA supplement under section 221". Note: The heading to subsection 222(3) is altered by omitting "telephone allowance" and substituting "MRCA supplement". 29 Subsections 222(4) and (5) Repeal the subsections, substitute: Persons receiving other payments (4) Even though a person is eligible for MRCA supplement under subsection 221(2), the supplement is not payable to the person if he or she is receiving MRCA supplement under subsection 221(1). (5) Even though a person is eligible for MRCA supplement under section 221, the supplement is not payable to the person if he or she is receiving: (a) veterans supplement under section 118B of the Veterans' Entitlements Act 1986; or (b) a telephone allowance under the Social Security Act 1991; or (c) MRCA supplement under Division 5 of Part 2 of Chapter 5. 30 Sections 223 to 225 Repeal the sections, substitute: 223 Rate of MRCA supplement The rate of MRCA supplement that is payable under section 221 is the rate of veterans supplement that is payable from time to time under section 118D of the Veterans' Entitlements Act 1986. 224 Payment of MRCA supplement A person's MRCA supplement under section 221 is payable on each pension payday (within the meaning of subsection 5Q(1) of the Veterans' Entitlements Act 1986) on which: (a) the person is eligible for the MRCA supplement; and (b) the MRCA supplement is payable to the person. Note: If a trustee is appointed under section 432, then the MRCA supplement would be payable to the trustee. 31 Division 5 of Part 2 of Chapter 5 (heading) Repeal the heading, substitute: Division 5—MRCA supplement for wholly dependent partners 32 Section 244A Repeal the section. 33 Section 245 Omit "a telephone allowance", substitute "MRCA supplement under this section". Note: The heading to section 245 is altered by omitting "telephone allowance" and substituting "MRCA supplement". 34 Paragraph 245(b) Omit "1986); and", substitute "1986).". 35 Paragraph 245(c) Repeal the paragraph. 36 Section 245 (note) Omit "telephone allowance", substitute "MRCA supplement". 37 Subsection 246(1) Omit "a telephone allowance on or after the next telephone allowance payday", substitute "MRCA supplement under section 245 after the day on which he or she left Australia". Note: The heading to section 246 is altered by omitting "Telephone allowance" and substituting "MRCA supplement". 38 Subsection 246(2) Omit "a telephone allowance", substitute "MRCA supplement under section 245". 39 Subsection 246(3) Omit "the telephone allowance", substitute "MRCA supplement under section 245". Note: The heading to subsection 246(3) is altered by omitting "telephone allowance" and substituting "MRCA supplement". 40 Subsections 246(4) and (5) Repeal the subsections, substitute: Persons receiving other payments (4) Even though a wholly dependent partner is eligible for MRCA supplement under section 245, the supplement is not payable to the partner if he or she is receiving: (a) veterans supplement under section 118B of the Veterans' Entitlements Act 1986; or (b) a telephone allowance under the Social Security Act 1991; or (c) MRCA supplement under Division 4 of Part 7 of Chapter 4. 41 Sections 247 to 249 Repeal the sections, substitute: 247 Rate of MRCA supplement The rate of MRCA supplement that is payable under section 245 is the rate of veterans supplement that is payable from time to time under section 118D of the Veterans' Entitlements Act 1986. 248 Payment of MRCA supplement A wholly dependent partner's MRCA supplement under section 245 is payable on each pension payday (within the meaning of subsection 5Q(1) of the Veterans' Entitlements Act 1986) on which: (a) the partner is eligible for the MRCA supplement; and (b) the MRCA supplement is payable to the partner. Note: If a trustee is appointed under section 432, then the MRCA supplement would be payable to the trustee. 42 Division 4 of Part 4 of Chapter 6 (heading) Repeal the heading, substitute: Division 4—MRCA supplement for members, former members and dependants 43 Section 300 Omit "a pharmaceutical allowance", substitute "MRCA supplement under this section". Note: The heading to section 300 is altered by omitting "pharmaceutical allowance" and substituting "MRCA supplement". 44 Section 300 (note) Omit "pharmaceutical allowance", substitute "MRCA supplement". 45 Subsection 301(1) Omit "a pharmaceutical allowance", substitute "MRCA supplement under section 300". Note: The heading to section 301 is altered by omitting "Pharmaceutical allowance" and substituting "MRCA supplement". 46 Subsection 301(2) Omit "a pharmaceutical allowance", substitute "MRCA supplement under section 300". 47 Subsection 301(3) Omit "the pharmaceutical allowance", substitute "MRCA supplement under section 300". Note: The heading to subsection 301(3) is altered by omitting "pharmaceutical allowance" and substituting "MRCA supplement". 48 Subsections 301(4) and (5) Repeal the subsections, substitute: When MRCA supplement is not payable (4) Even though a person is eligible for MRCA supplement under section 300, the supplement is not payable to the person if: (a) he or she is receiving veterans supplement under section 118A of the Veterans' Entitlements Act 1986; or (b) he or she is receiving a pharmaceutical allowance under the Social Security Act 1991; or (c) he or she is a wholly dependent partner of a deceased member. 49 Section 302 Omit "pharmaceutical allowance", substitute "MRCA supplement". Note: The heading to section 302 is altered by omitting "pharmaceutical allowance" and substituting "MRCA supplement". 50 Section 302 After "is the rate", insert "of veterans supplement". 51 Section 303 Omit "pharmaceutical allowance", substitute "MRCA supplement under section 300". Note: The heading to section 303 is altered by omitting "pharmaceutical allowance" and substituting "MRCA supplement". 52 Paragraphs 303(a) and (b) Omit "allowance", substitute "MRCA supplement". 53 Section 303 (note) Omit "allowance", substitute "MRCA supplement". Part 5—Other amendments Income Tax Assessment Act 1997 54 Section 52‑65 (table item 12.1) Repeal the item, substitute: 12.1 Quarterly pension supplement Exempt Not applicable 55 Section 52‑65 (table item 16A.1) Repeal the item, substitute: 16A.1 Seniors supplement Exempt Not applicable 56 Section 52‑65 (table item 18.1) Repeal the item. 57 Section 52‑65 (table item 20A.1) Repeal the item. 58 Section 52‑65 (after table item 21.1) Insert: 21A.1 Veterans supplement Exempt Not applicable 59 At the end of section 52‑70 Add: ; and (d) so much of the payment as is equal to the tax‑exempt pension supplement for the payment. 60 Section 52‑75 (table item 12) Repeal the item, substitute: 12 Quarterly pension supplement Part IIID Not applicable 61 Section 52‑75 (table item 16A) Repeal the item, substitute: 16A Seniors supplement Part VIIAD Not applicable 62 Section 52‑75 (table item 18) Repeal the item. 63 Section 52‑75 (table item 20A) Repeal the item. 64 Section 52‑75 (after table item 21) Insert: 21A Veterans supplement Part VIIA Not applicable 65 Section 52‑114 (table item 10) Omit "Telephone allowance", substitute "MRCA supplement". 66 Section 52‑114 (table item 10) Omit "and 245", substitute ", 245 and 300". 67 Section 52‑114 (table item 20) Repeal the item. Military Rehabilitation and Compensation Act 2004 68 Section 3 Omit "an allowance such as a telephone allowance, a pharmaceutical allowance,", substitute "veterans supplement,". 69 Subsection 5(1) (paragraph (c) of the definition of compensation) Repeal the paragraph, substitute: (c) MRCA supplement under section 221, 245 or 300; 70 Subsection 5(1) (paragraph (e) of the definition of compensation) Omit "Chapter 6;", substitute "Chapter 6.". 71 Subsection 5(1) (paragraph (f) of the definition of compensation) Repeal the paragraph. 72 Section 269 Omit "a pharmaceutical allowance", substitute "MRCA supplement". 73 Section 278 Omit "a pharmaceutical allowance", substitute "MRCA supplement". 74 Paragraph 388(5)(a) Omit "telephone allowance", substitute "MRCA supplement". 75 Paragraph 398(2)(a) Omit "telephone allowance", substitute "MRCA supplement". 76 Paragraph 401(2)(a) Omit "telephone allowance", substitute "MRCA supplement". 77 Subsection 402(2) Omit "telephone allowance", substitute "MRCA supplement". 78 Paragraph 403(3)(b) Omit "telephone allowance", substitute "MRCA supplement". Social Security Act 1991 79 Subparagraph 8(8)(y)(viia) Repeal the subparagraph, substitute: (viia) veterans supplement under Part VIIA of that Act; or 80 Subparagraph 8(8)(y)(viib) Omit "seniors concession allowance", substitute "seniors supplement". 81 Subsection 44(2) Repeal the subsection, substitute: (2) Subsection (1) does not apply to a person if the person's rate would be nil merely because an electi