Legislation, In force, Commonwealth
Commonwealth: Veterans' Entitlements Act 1986 (Cth)
An Act to provide for the payment of pensions and other benefits to, and to provide medical and other treatment for, veterans and certain other persons, and for other purposes Part I—Preliminary 1 Short title This Act may be cited as the Veterans' Entitlements Act 1986.
          Veterans' Entitlements Act 1986
No. 27, 1986
Compilation No. 193
Compilation date: 11 December 2024
                Includes amendments: Act No. 115, 2024
This compilation is in 4 volumes
Volume 1: sections 1–45UY
Volume 2: sections 46–93ZG
Volume 3: sections 94–216
Volume 4: Schedules
 Endnotes
Each volume has its own contents
About this compilation
This compilation
This is a compilation of the Veterans' Entitlements Act 1986 that shows the text of the law as amended and in force on 11 December 2024 (the compilation date).
The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.
Application, saving and transitional provisions for provisions and amendments
If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
Editorial changes
For more information about any editorial changes made in this compilation, see the endnotes.
Modifications
If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.
Self‑repealing provisions
If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.
Contents
Part I—Preliminary
1 Short title
2 Commencement
3 Repeal
4 Extension of Act to external Territories
4A Application of the Criminal Code
4B Secretary may arrange for use of computer programs to make decisions
5 Definitions—simplified outline
5A Repatriation Commission definitions
5AB Repatriation Medical Authority and Specialist Medical Review Council definitions
5B War and operational area related definitions
5C Eligibility related definitions
5D Injury/disease definitions
5E Family relationships definitions—couples
5F Family relationships definitions—children
5G Australian residence definitions
5GA Pension supplement rate definitions
5H Income test definitions
5I Special Rate Disability Pension reduction amount
5J Financial assets and income streams definitions
5JA Meaning of asset‑test exempt income stream—lifetime income streams
5JB Meaning of asset‑test exempt income stream—life expectancy income streams
5JBA Meaning of asset‑test exempt income stream—market‑linked income streams
5JBB Meaning of asset‑test exempt income stream—military invalidity pension income stream
5JC Family law affected income streams
5JD Asset‑tested status of secondary FLA income streams
5JE Asset‑tested income stream (lifetime)
5K Maintenance income definitions
5L Assets test definitions
5LA Principal home definition for the purpose of the assets test
5M Retirement village definitions
5MA Granny flat definitions
5MB Sale leaseback definitions
5MC Special residence and resident definitions
5N Rent definitions
5NA Indexation and rate adjustment definitions
5NB Compensation recovery definitions
5NC In care definitions
5PB Seniors health card definitions
5PC Exempt funeral investments
5Q Dictionary
5QAA Equal amounts
5QA Pension age for veterans
5QB Pension age for persons other than veterans
5R Determinations having interpretative effect
5T Lodgment of claims, applications, requests and documents
5U Notes
6 Operational service—general outline
6A Operational service—world wars
6B Operational service—Australian mariners
6C Operational service—post World War 2 service in operational areas
6D Operational service—other post World War 2 service
6DA Operational service—minesweeping and bomb/mine clearance service
6DB Operational service—service on submarine special operations
6E Operational service—Korean demilitarised zone and Vietnam
6F Operational service—warlike and non‑warlike service
7 Eligible war service
7A Qualifying service
8 War‑caused death
9 War‑caused injuries or diseases
9A Most war‑caused injuries, diseases and deaths no longer covered by this Act
10 Child of a veteran or other person
10A Parent of a person
11 Dependants
11AA Reinstated pensioner
11A De facto relationships
11B Domicile
Part II—Pensions by way of compensation to veterans and their dependants
Division 1—Interpretation
12 Interpretation
Division 2—Eligibility for pensions by way of compensation to veterans and their dependants
13 Eligibility for pensions by way of compensation to veterans and their dependants
Division 2A—Verification determinations for reinstated pensioners
13AA Application for verification determination
13AB Who may apply
13AC Application for verification determination
13AE Investigation by the Secretary
13AF Duties of Commission in relation to application for verification determination
13AG Verification determination
Division 3—Claims for pensions and applications for increases in pensions
13A Certain dependants to be automatically paid pension
13B Reinstated pensioners to be automatically paid pension
14 Claim for pension
15 Application for increase in pension
16 Who may make claim or application
17 Investigation by the Secretary
18 Duties of Commission in relation to pensions
19 Determination of claims and applications
19A Refusal to undergo medical examination etc. may delay consideration of claim or application
20 Dates of effect that may be specified in respect of grant of claim for pension
21 Dates of effect that may be specified in respect of grant of applications under section 15
Division 4—Rates of pensions payable to veterans
21A Determination of degree of incapacity
22 General rate of pension and extreme disablement adjustment
23 Intermediate rate of pension
24 Special rate of pension
24A Continuation of rates of certain pensions
25 Temporary payment at special rate
25A Offsetting certain payments made under the Safety, Rehabilitation and Compensation (Defence‑related Claims) Act 1988
26 Reduction in rate of pension in certain cases
27 Increased rates of pension in certain cases
27A Calculation of arrears of pension
27B Certain decisions under section 27A reviewable under the Social Security Act
28 Capacity to undertake remunerative work
29 Approved Guide to the Assessment of Rates of Veterans' Pensions
Division 5—Rates of pensions payable to dependants of deceased veteran
30 Rates at which pensions are payable to dependants
Division 5A—Effect of certain compensation payments on rates of pension
30A This Division does not apply to certain payments
30B Interpretation
30C Lump sum compensation payment
30D Periodic payment of compensation
30E Proceedings against third party
30F Failure to comply with Commission's request made under section 30E
30G Payment of damages by third party to Commonwealth
30H Payment of damages by third party where agreement, or an award against the person, to pay damages has been made
30I Debt due to the Commonwealth
30J Discharge of liability
30K Discharge of liability of Commonwealth to pay damages
30L Other payments of compensation
30M Commission may require a statutory declaration
30N Failure to comply with statutory declaration requirement
30P Overpayments of pension
Division 6—Reviews of pensions by Commission
31 Review by Commission
Division 7—Procedural
32 Commission may take evidence
33 Withdrawal of claim or application
34 Reasons for decisions to be given
Part III—Service pensions
Division 1—General features
35 Order and structure of Divisions
35A Eligibility for and payability of service pension
Division 2—Establishing qualifying service
Subdivision A—Pathways to establishing qualifying service
35B Pathways to establishing qualifying service
35BA Commission determination without the need for a claim
35C Who can claim?
35D Making a claim
35F Claim may be withdrawn
35FB Oral withdrawal of a claim
35FC Acknowledgment of oral withdrawal of a claim
35FD Reactivating the withdrawn claim
Subdivision B—Investigation of claim
35G Secretary to investigate claim and submit it to Commission
Subdivision C—Consideration and determination of claim
35H Duties of Commission in relation to claim
35J Determination of qualifying service to be proof of qualifying service
Division 3—Age service pension
Subdivision A—Eligibility for and payability of age service pension
36 Eligibility for age service pension
36A Age service pension may not be payable in some circumstances
36B Age service pension generally not payable before claim
36C Restrictions on dual pensions
36CA Exclusion of certain participants in ABSTUDY Scheme
Subdivision B—Claim for age service pension
36D Need for a claim
36E Who can claim?
36F Making a claim
36H Claimant must be Australian resident and in Australia
36J Claim may be withdrawn
36JB Oral withdrawal of a claim
36JC Acknowledgment of oral withdrawal of a claim
36JD Reactivating the withdrawn claim
36JE Secretary may require claimant or claimant's partner to take action to obtain a comparable foreign pension
Subdivision C—Investigation of claim
36K Secretary to investigate claim and submit it to Commission
Subdivision D—Consideration and determination of claim
36L Duties of Commission in relation to claim
36M Date of effect of determination
Subdivision E—Rate of age service pension
36N How to work out the rate of a veteran's age service pension
Division 4—Invalidity service pension
Subdivision A—Eligibility for and payability of invalidity service pension
37 Eligibility for invalidity service pension
37AA Commission must determine circumstances in which persons are permanently incapacitated for work
37AAA Continued eligibility for invalidity service pension if person undertaking a rehabilitation program etc.
37A Invalidity service pension may not be payable in some circumstances
37B Invalidity service pension generally not payable before claim
37C Restrictions on dual pensions
37CA Exclusion of certain participants in ABSTUDY Scheme
Subdivision B—Claim for invalidity service pension
37D Need for a claim
37E Who can claim?
37F Making a claim
37H Claimant must be Australian resident and in Australia
37J Claim may be withdrawn
37JB Oral withdrawal of a claim
37JC Acknowledgment of oral withdrawal of a claim
37JD Reactivating the withdrawn claim
37JE Secretary may require claimant or claimant's partner to take action to obtain a comparable foreign pension
Subdivision C—Investigation of claim
37K Secretary to investigate claim and submit it to Commission
Subdivision D—Consideration and determination of claim
37L Duties of Commission in relation to claim
37M Date of effect of determination
Subdivision E—Rate of invalidity service pension
37N How to work out the rate of a veteran's invalidity service pension
Division 5—Partner service pension
Subdivision A—Eligibility for and payability of partner service pension
38 Eligibility for partner service pension
38AA Disclosure or use of personal information relevant to partner service pension eligibility
38A Partner service pension may not be payable in some circumstances
38B Partner service pension generally not payable before claim
38C Restrictions on dual pensions
38CA Exclusion of certain participants in ABSTUDY Scheme
Subdivision B—Claim for partner service pension
38D Need for a claim
38E Who can claim?
38F Making a claim
38H Claimant must be Australian resident and in Australia
38J Claim may be withdrawn
38JB Oral withdrawal of a claim
38JC Acknowledgment of oral withdrawal of a claim
38JD Reactivating the withdrawn claim
38JE Secretary may require claimant or claimant's partner to take action to obtain a comparable foreign pension
Subdivision C—Investigation of claim
38K Secretary to investigate claim and submit it to Commission
Subdivision D—Consideration and determination of claim
38L Duties of Commission in relation to claim
38M Date of effect of determination
Subdivision E—Rate of partner service pension
38N How to work out the rate of a person's partner service pension
Part IIIA—Income support supplement
Division 1—Eligibility for and payability of income support supplement
45A Eligibility for income support supplement
45B Income support supplement may not be payable in some circumstances
45C Income support supplement generally not payable before claim
45D Restrictions on dual pensions
45DA Exclusion of certain participants in ABSTUDY Scheme
45E Election to continue to receive social security pension
45F Claim for social security pension by war widower or war widow pending at commencement of Part
45G Review of decision rejecting a claim by war widower or war widow for social security pension pending at commencement of Part
45H Review of decision concerning rate of social security pension paid to war widower or war widow pending at commencement of Part
Division 2—Claim for income support supplement
45I Need for a proper claim
45J Who can claim?
45K Making a claim
45M Claimant must be Australian resident and in Australia
45N Not necessary to make a claim in certain circumstances
45NA Claim may be withdrawn
45NC Oral withdrawal of a claim
45ND Acknowledgment of oral withdrawal of a claim
45NE Reactivating the withdrawn claim
45NF Secretary may require claimant or claimant's partner to take action to obtain a comparable foreign pension
Division 3—Investigation of claim
45P Secretary to investigate claim and submit it to Commission
Division 4—Consideration and determination of claim
45Q Duties of Commission in relation to claim
45QA Commission must determine circumstances in which persons are permanently incapacitated for work
45R Date of effect of determination
Division 5—Rate of income support supplement
45S How to work out the rate of income support supplement
Part IIIAA—Veteran payment
45SA Simplified outline
45SB Veteran payment
Part IIIAB—Pension bonus
Division 1—Introduction
45T Simplified outline
45TA Definitions
45TB Special date of eligibility for a designated pension
Division 2—Qualification for pension bonus
45TC Qualification for pension bonus
Division 3—Registration as a member of the pension bonus scheme
Subdivision A—Membership of the pension bonus scheme
45TD Application for registration
45TE Making an application
45TF Relevant information
45TH Timing of application and registration
45TI Registration
45TJ Duration of membership
45TK Cancellation of membership
45TL Application for registration is not to be treated as a claim
Subdivision B—Classification of membership of the pension bonus scheme
45TM Accruing membership
45TN Non‑accruing membership—preclusion periods
45TO Non‑accruing membership—Commission's discretion
45TP Continuity of accruing membership is not broken by a period of non‑accruing membership
45TQ Post‑70/75 membership
Division 4—Accrual of bonus periods
45TR Accrual of bonus periods
Division 5—Passing the work test
Subdivision A—The work test
45TS Work test—full‑year period
45TT Work test—part‑year period
45TU Commission's discretion to treat gainful work outside Australia as gainful work in Australia
Subdivision B—Gainful work
45TV Gainful work—basic rule
45TW Commission's discretion to treat activity as gainful work
45TX Irregular, infrequent and minor absences from a workplace count as gainful work
45TY Management of family financial investments does not count as gainful work
45TZ Domestic duties in relation to a person's place of residence do not count as gainful work
45U Evidentiary certificate
Subdivision C—Record‑keeping requirements
45UA Record‑keeping requirements
Division 6—Amount of pension bonus
45UB How to calculate the amount of pension bonus
45UC Qualifying bonus periods
45UD Overall qualifying period
45UE Pension multiple
45UF Annual pension rate
45UG Amount of pension bonus
45UH Annual notional single pension rate
45UI Annual notional partnered pension rate
45UIA Apportioned amount
45UIB Top up of pension bonus for increased rate of designated pension
45UIC Top up of pension bonus in specified circumstances
Division 7—Claim for pension bonus
45UJ Need for a claim
45UK Proper claim
45UL Lodgment period for claim
45UM Withdrawal of claim
Division 8—Determination of claim
45UN Secretary to investigate claim and submit it to Commission
45UO Commission to determine claim
45UP Grant of claim
Division 9—Payment of pension bonus
45UQ Payment of pension bonus
45UR Payment of bonus after death
Division 10—Protection of pension bonus
45US Pension bonus to be absolutely inalienable
Division 11—Preclusion periods
45UT Disposal preclusion period—dispositions before 1 July 2002
45UTA Disposal preclusion period—dispositions on or after 1 July 2002
45UU Carer preclusion period
Division 11A—Pension bonus bereavement payment
45UUA Qualification for pension bonus bereavement payment
45UUB Amount of pension bonus bereavement payment
45UUC Definition of PBBP employment income
45UUD Need for a claim for pension bonus bereavement payment
45UUE Proper claim
45UUF Lodgment period for claim
45UUG Withdrawal of claim
45UUH Secretary to investigate claim and submit it to Commission
45UUI Commission to determine claim
45UUJ Grant of claim
45UUK Payment of pension bonus bereavement payment
45UUL Payment of pension bonus bereavement payment after death
Division 12—Modification of this Part in relation to certain persons previously qualified for age pension under social security law
45UV Persons to whom this Division applies
45UW Commission may request the provision of information
45UX Commission may determine whether periods occurring before becoming a war widow/war widower—pensioner are bonus periods under the social security law
45UY Modification of provisions of this Part in respect of persons to whom this Division applies
An Act to provide for the payment of pensions and other benefits to, and to provide medical and other treatment for, veterans and certain other persons, and for other purposes
Part I—Preliminary
1  Short title
  This Act may be cited as the Veterans' Entitlements Act 1986.
2  Commencement
  This Act shall come into operation on a date to be fixed by Proclamation.
3  Repeal
 (1) The Acts specified in Parts I, II, III, IV and V of Schedule 1 are repealed.
 (2) The Acts specified in column 1 of Part VI of Schedule 1 are amended as set out in columns 2 and 3 of that Schedule.
4  Extension of Act to external Territories
  This Act extends to the external Territories.
4A  Application of the Criminal Code
  Chapter 2 of the Criminal Code applies to all offences against this Act.
Note: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.
4B  Secretary may arrange for use of computer programs to make decisions
 (1) The Secretary may arrange for the use, under the Secretary's control, of computer programs for any purposes for which the Commission may, or must, under this Act or a legislative instrument made for the purposes of this Act:
 (a) make a decision; or
 (b) exercise any power or comply with any obligation; or
 (c) do anything else related to making a decision or exercising a power or complying with an obligation.
 (1A) Subsection (1) does not apply to the following:
 (a) a decision that the death of a veteran was not war‑caused;
 (b) a decision that an injury suffered by a veteran is not a war‑caused injury;
 (c) a decision that a disease contracted by a veteran is not a war‑caused disease;
 (d) a decision that the death of a member of the Forces (within the meaning of Part IV), or a member of a Peacekeeping Force (within the meaning of that Part), was not defence‑caused;
 (e) a decision that an injury suffered by a member of the Forces (within the meaning of Part IV), or a member of a Peacekeeping Force (within the meaning of that Part), is not a defence‑caused injury;
 (f) a decision that a disease contracted by a member of the Forces (within the meaning of Part IV), or a member of a Peacekeeping Force (within the meaning of that Part), is not a defence‑caused disease.
 (2) For the purposes of this Act or the legislative instrument, the Commission is taken to have:
 (a) made a decision; or
 (b) exercised a power or complied with an obligation; or
 (c) done something else related to the making of a decision or the exercise of a power or the compliance with an obligation;
that was made, exercised, complied with or done by the operation of a computer program under an arrangement made under subsection (1).
Substituted decisions
 (3) The Commission may, under a provision of this Act or of the legislative instrument, make a decision in substitution for a decision the Commission is taken to have made under paragraph (2)(a) if the Commission is satisfied that the decision made by the operation of the computer program is incorrect.
Note: For review of a decision made in substitution, see Parts IX and X.
 (4) Subsection (3) does not limit any other provision of this Act that provide for the review or reconsideration of a decision.
5  Definitions—simplified outline
      Sections 5A to 11B contain definitions of terms that are used in this Act.
      Subsection 5Q(1) contains an entry for each expression that is defined for the purposes of this Act. That subsection is like a Dictionary.
      The entry is either an actual definition of the expression or a signpost definition that identifies the provision that defines the expression.
      Many other sections in this Part contain the actual definitions relating to a particular topic. For example, sections 6 to 6F deal with operational service and section 5H contains income test definitions.
5A  Repatriation Commission definitions
  In this Act, unless the contrary intention appears:
acting commissioner means a person who is acting as a commissioner because of an appointment under section 191.
Acting Deputy President means a commissioner or acting commissioner who is acting as Deputy President because of an appointment under section 192.
Acting President means a commissioner or acting commissioner who is acting as President because of an appointment under section 192 or 193.
Commission means the Repatriation Commission continued in existence by section 179.
commissioner means a person holding an office of commissioner because of an appointment under section 182.
Deputy President means the Deputy President of the Commission.
President means the President of the Commission.
5AB  Repatriation Medical Authority and Specialist Medical Review Council definitions
 (1) In this Act, unless the contrary intention appears:
Chairperson means the Chairperson of the Repatriation Medical Authority.
Convener means the Convener of the Review Council.
councillor means the Convener or any other person holding office as a member of the Review Council.
member means the Chairperson or any other person holding office as a member of the Repatriation Medical Authority.
registered medical practitioner means a person registered or licensed as a medical practitioner under a law of a State or Territory but does not include a person so registered or licensed:
 (a) whose registration, or licence to practice, as a medical practitioner in any State or Territory has been suspended, or cancelled, following an inquiry relating to his or her conduct; and
 (b) who has not, after that suspension or cancellation, again been authorised to register or practise as a medical practitioner in that State or Territory.
Review Council means the Specialist Medical Review Council established by section 196V.
sound medical‑scientific evidence, in relation to a particular kind of injury, disease or death, has the meaning given by subsection (2).
 (2) Information about a particular kind of injury, disease or death is taken to be sound medical‑scientific evidence if:
 (a) the information:
 (i) is consistent with material relating to medical science that has been published in a medical or scientific publication and has been, in the opinion of the Repatriation Medical Authority, subjected to a peer review process; or
 (ii) in accordance with generally accepted medical practice, would serve as the basis for the diagnosis and management of a medical condition; and
 (b) in the case of information about how that kind of injury, disease or death may be caused—meets the applicable criteria for assessing causation currently applied in the field of epidemiology.
5B  War and operational area related definitions
 (1) In this Act, unless the contrary intention appears:
allotted for duty in an operational area has the meaning given by subsection (2).
operational area means an area described in column 1 of Schedule 2 during the period specified in column 2 of Schedule 2 opposite to the description of the area in column 1.
period of hostilities means:
 (a) World War 1 from its commencement on 4 August 1914 to 11 November 1918 (both included); or
 (b) World War 2 from its commencement on 3 September 1939 to 29 October 1945 (both included); or
 (c) the period of hostilities in respect of Korea from 27 June 1950 to 19 April 1956 (both included); or
 (d) the period of hostilities in respect of Malaya from 29 June 1950 to 31 August 1957 (both included); or
 (e) the period of hostilities in respect of war‑like operations in operational areas from 31 July 1962 to 11 January 1973 (both included).
war to which this Act applies means World War 1 or World War 2.
World War 1 means:
 (a) the war that commenced on 4 August 1914; and
 (b) any other war in which the Crown became engaged after 4 August 1914 and before 11 November 1918.
World War 2 means:
 (a) the war that commenced on 3 September 1939; and
 (b) any other war in which the Crown became engaged after 3 September 1939 and before 3 September 1945.
Allotted for duty
 (2) A reference in this Act to a person, or a unit of the Defence Force, that was allotted for duty in an operational area is a reference:
 (a) in the case of duty that was carried out in an operational area described in item 1, 2, 3, 4, 5, 6, 7 or 8 of Schedule 2 (in column 1)—to a person, or unit of the Defence Force, that is allotted for duty in the area (whether retrospectively or otherwise) by written instrument issued by the Defence Force for use by the Commission in determining a person's eligibility for entitlements under this Act; or
 (b) in the case of duty that was carried out in an operational area described in item 3A, 3B, 9, 10, 11, 12, 13, 14 or 15 of Schedule 2 (in column 1)—to a person, or unit of the Defence Force, that is allotted for duty in the area (whether retrospectively or otherwise) by written instrument signed by the Vice Chief of the Defence Force for use by the Commission in determining a person's eligibility for entitlements under this Act; or
 (c) to a person, or unit of the Defence Force, that is, by written instrument signed by the Defence Minister, taken to have been allotted for duty in an operational area described in item 4 or 8 in Schedule 2 (in column 1).
End of World War 1 and 2
 (3) For the purposes of this Act:
 (a) World War 1 is taken to have ended on 1 September 1921; and
 (b) World War 2 is taken to have ended on 28 April 1952.
            Note 1: 1 September 1921 is the date fixed by Proclamation under the Termination of the Present War (Definition) Act 1919.
            Note 2: 28 April 1952 is the date on which the Treaty of Peace with Japan came into force.
5C  Eligibility related definitions
 (1) In this Act, unless the contrary intention appears:
allied country means any country (not being Australia or a Commonwealth country):
 (a) that was, at the relevant time, at war with the enemy; or
 (b) the forces of which were, at the relevant time, engaged in an operational area against forces against which the forces of the Commonwealth were engaged in that area;
and includes:
 (c) a state, province or other territory that is one of 2 or more territories that together form, or formed at the relevant time, a discrete part of such a country; and
 (d) a place that is, or was at the relevant time, a territory, dependency or colony (however described) of such a country.
allied mariner means a person who:
 (a) was during the period of World War 2 from its commencement to and including 29 October 1945:
 (i) a master, officer or seaman employed under agreement, or an apprentice employed under indenture, in sea‑going service on a ship that was engaged in trading; or
 (ii) a master, officer, seaman or apprentice employed in a lighthouse tender or pilot ship; or
 (iii) employed as a pilot; or
 (iv) a master, officer, seaman or apprentice employed in sea‑going service on a ship (being a hospital ship, troop transport, supply ship, tug, cable ship, salvage ship, dredge, fishing vessel or fisheries investigation vessel) that was operated by, or on behalf of, a foreign country; and
 (b) was at any time during the course of that employment during the period referred to in paragraph (a) on a ship that was:
 (i) operating from a port in Australia or from a port in a Commonwealth country or an allied country; or
 (ii) engaged in trading with Australia or with a Commonwealth country or an allied country; or
 (iii) engaged in providing assistance or support to the Defence Force, or to the forces, or any part of the forces, of a Commonwealth country or an allied country; or
 (iv) engaged in providing assistance or support to Australia or to a Commonwealth country or an allied country;
but does not include:
 (c) an Australian mariner; or
 (d) a person who has, at any time, been employed by a foreign country that was, at that time, at war with Australia; or
 (e) a person who has, at any time, been employed:
 (i) on a ship that operated to, or was operating from, a port in a country that was, at that time, at war with Australia; or
 (ii) on a ship that was engaged in trading with a country that was, at that time, at war with Australia; or
 (iii) on a ship that was engaged in providing assistance or support to the enemy or to a country that was, at that time, at war with Australia.
allied veteran means a person:
 (a) who has been appointed or enlisted as a member of the defence force established by an allied country; and
 (b) who has rendered continuous full‑time service as such a member during a period of hostilities;
but does not include a person who has served at any time:
 (c) in the forces of a country that was, at that time, at war with Australia, or in forces engaged in supporting or assisting the forces of such a country; or
 (d) in forces that were, at that time, engaged in war‑like operations against the Naval, Military or Air Forces of Australia.
Note: See also subsection 5R(2).
Australian mariner means a person who was, during the period of World War 2 from its commencement to and including 29 October 1945:
 (a) a master, officer or seaman employed under agreement, or an apprentice employed under indenture, in sea‑going service on a ship registered in Australia that was engaged in trading between a port in a State or Territory and any other port; or
 (b) a master, officer or seaman employed under agreement, or an apprentice employed under indenture, in sea‑going service on a ship registered outside Australia who was, or whose dependants were, resident in Australia for at least 12 months immediately before he or she entered into the agreement or indenture; or
 (c) a master, officer, seaman or apprentice employed on a lighthouse tender, or pilot ship of the Commonwealth or of a State; or
 (d) a pilot employed or licensed by Australia or a State or by an authority constituted by or under a law of the Commonwealth or of a State; or
 (e) a master, officer, seaman or apprentice employed in sea‑going service on a ship owned in Australia and operating from an Australian port, being a hospital ship, troop transport, supply ship, tug, cable ship, salvage ship, dredge, fishing vessel or fisheries investigation vessel; or
 (f) a member or employee of the Commonwealth Salvage Board engaged in sea‑going service under the direction of that Board; or
 (g) a master, officer, seaman or apprentice employed in sea‑going service on a ship registered in New Zealand who the Commission is satisfied was engaged in Australia and is not entitled to compensation under a law of a Commonwealth country providing for the payment of pensions and other payments to seamen who suffered death or disablement as a result of World War 2.
Commonwealth country means a country (other than Australia) that is, or was at the relevant time, a part of the Dominions of the Crown, and includes:
 (a) a state, province or other territory that is one of 2 or more territories that together form, or formed at the relevant time, a discrete part of such a country; and
 (b) a place that is, or was at the relevant time, a territory, dependency or colony (however described) of a part of such a country.
Commonwealth veteran means a person who rendered continuous full‑time service as a member of:
 (a) the naval, military or air forces; or
 (b) the nursing or auxiliary services of the naval, military or air forces; or
 (c) the women's branch of the naval, military or air forces;
of a Commonwealth country during a period of hostilities.
continuous full‑time service means:
 (a) in relation to a member of the Defence Force:
 (i) service in the Naval Forces of the Commonwealth of the kind known as continuous full‑time naval service; or
 (ii) service in the Military Forces of the Commonwealth of the kind known as continuous full‑time military service; or
 (iii) service in the Air Force of the Commonwealth of the kind known as continuous full‑time air force service; or
 (b) in relation to a member of the naval, military or air forces of a Commonwealth country or an allied country—service in those forces of a kind similar to a kind of service referred to in subparagraph (a)(i), (ii) or (iii).
           Note: See also subsection 5R(1).
Defence Force has the same meaning as in the Defence Act 1903.
defence force established by a Commonwealth country means:
 (a) the naval, military or air forces of the country; or
 (b) the nursing and auxiliary services of the naval, military or air forces of the country; or
 (c) the women's branch of the naval, military or air forces of the country.
defence force established by an allied country means:
 (a) the regular naval, military or air forces; and
 (b) the nursing or auxiliary services of the regular naval, military or air forces; and
 (c) the women's branch of the regular naval, military or air forces;
raised by an allied country and operated by the country with regular military‑like lines of command, that is to say, raised and operated in such a manner that the members of those forces and services:
 (d) were formally appointed to, or enlisted in, those forces or services; and
 (e) were required to wear uniforms or insignia distinguishing them as members of those forces or services; and
 (f) were required to carry arms openly; and
 (g) were subject to the rules and conventions of warfare.
Note 1: For extended meaning of this term in relation to a government‑in‑exile, see subsection (3).
Note 2: For an extended meaning of this term in relation to an allied veteran see subsection 5R(2).
eligible civilian means a person:
 (a) who was killed, or detained by the enemy, during World War 2; and
 (b) who was, at the time the person was killed or first detained:
 (i) a British subject; and
 (ii) a resident, but not an indigenous inhabitant, of the Territory of Papua or the Territory of New Guinea; and
 (c) who was not, at that time:
 (i) rendering service as a member of the Defence Force; or
 (ii) employed by the Commonwealth on a special mission outside Australia.
enemy means:
 (a) in relation to World War 1 or World War 2—the naval, military or air forces, or any part of the naval, military or air forces, of a State at war with the Crown during that war; and
 (b) in relation to service in, or a period of hostilities in respect of, an operational area—the naval, military or air forces against which the Naval, Military or Air Forces of the Commonwealth were engaged in that operational area; and
 (c) persons assisting any of those forces.
fishing vessel means a ship employed in connection with the occupation of sea fishing for profit.
former refugee means a person who was a refugee but does not include a person who ceased to be a refugee because his or her entry permit or visa (as the case may be) was cancelled.
government‑in‑exile, in relation to an allied country, includes a person, or group of persons, claiming to represent, or administer, the country or a part of the country or the people of the country.
member of a unit of the Defence Force means:
 (a) a member of the Defence Force; or
 (b) another person who is:
 (i) a member of the unit; or
 (ii) attached to the unit; or
 (iii) appointed for continuous full‑time service with the unit.
Note: See also subsection 5R(1).
member of the Defence Force includes a person appointed for continuous full‑time service with a unit of the Defence Force.
Note: See also subsection (2).
member of the Interim Forces means a person who:
 (a) enlisted or re‑engaged in, or was appointed or re‑appointed to, the Defence Force for continuous full‑time service for a term of not more than 2 years; or
 (b) was appointed for continuous full‑time service with a unit of the Defence Force for a term of not more than 2 years;
on or after 1 July 1947 and before 1 July 1949.
non‑warlike service means service in the Defence Force of a kind determined in writing by the Defence Minister to be non‑warlike service.
operational service has the meaning given by sections 6 to 6F.
qualifying service has the meaning given in section 7A.
refugee has the meaning given by subsection (4).
special mission means a mission that, in the opinion of the Commission, was of special assistance to the Commonwealth in the prosecution of a war to which this Act applies.
unit of the Defence Force means a body, contingent or detachment of the Defence Force.
veteran means:
 (a) a person (including a deceased person):
 (i) who is, because of section 7, taken to have rendered eligible war service; or
 (ii) in respect of whom a pension is, or pensions are, payable under subsection 13(6); and
 (b) in Parts III and VIIC also includes a person who is:
 (i) a Commonwealth veteran; or
 (ii) an allied veteran; or
 (iv) an allied mariner.
Note: Commonwealth veteran, allied veteran and allied mariner are defined in this subsection.
warlike service means service in the Defence Force of a kind determined in writing by the Defence Minister to be warlike service.
Army Medical Corps Nursing Service
 (2) For the purposes of this Act, a member of the Army Medical Corps Nursing Service who:
 (a) rendered service during World War 1, either within or outside Australia; and
 (b) rendered the service as such a member in accordance with an acceptance or appointment by the Director‑General of Medical Services for service outside Australia;
is taken to have been serving as a member of the Defence Force while rendering that service.
Defence force of government‑in‑exile
 (3) In relation to any period during which there was a government‑in‑exile in relation to an allied country, defence force established by an allied country includes:
 (a) the regular naval, military or air forces; and
 (b) the nursing or auxiliary services of the regular naval, military or air forces; and
 (c) the women's branch of the regular naval, military or air forces;
raised by that government‑in‑exile and operated by it with regular military‑like lines of command, that is to say, raised and operated in such a manner that the members of those forces and services:
 (d) were formally appointed to, or enlisted in, those forces or services; and
 (e) were required to wear uniforms or insignia distinguishing them as members of those forces or services; and
 (f) were required to carry arms openly; and
 (g) were subject to the rules and conventions of warfare.
Note: For an extended meaning of the defence force of a government‑in‑exile in relation to an allied veteran see subsection 5R(2).
Refugee
 (4) For the purposes of Part III, a person is a refugee if the person:
 (a) is taken, under the Migration Reform (Transitional Provisions) Regulations, to be the holder of a transitional (permanent) visa because the person was, immediately before 1 September 1994, the holder of:
 (i) a visa or entry permit that fell within Division 1.3—Group 1.3 (Permanent resident (refugee and humanitarian) (offshore)) in Part 1 of Schedule 1 to the Migration (1993) Regulations as then in force; or
 (ii) a visa or entry permit that fell within Division 1.5—Group 1.5 (Permanent resident (refugee and humanitarian) (on‑shore)) in Part 1 of Schedule 1 to the Migration (1993) Regulations as then in force; or
 (b) was, immediately before 1 February 1993, the holder of a visa or entry permit of a class prescribed under the Migration Regulations as then in force that corresponds to a visa or entry permit referred to in subparagraph (a)(i) or (ii); or
 (c) is the holder of:
 (i) a permanent protection visa; or
 (ii) a permanent visa of a class referred to in Schedule 2A; or
 (iii) a permanent visa of a class referred to in a declaration of the Minister under subsection (5) that is in force.
Declaration of class of visas
 (5) If:
 (a) after the commencement of this subsection, a class of permanent visas (other than a class referred to in Schedule 2A) is prescribed by regulations made for the purposes of section 31 of the Migration Act 1958; and
 (b) the Minister is of the view that a person holding a visa of that class should be regarded as a refugee for the purposes of Part III;
the Minister may, by legislative instrument, declare that class of visas to be a class of visas for the purposes of subparagraph (4)(c)(iii).
5D  Injury/disease definitions
 (1) In this Act, unless the contrary intention appears:
blinded in an eye has the meaning given by subsection (3).
disease means:
 (a) any physical or mental ailment, disorder, defect or morbid condition (whether of sudden onset or gradual development); or
 (b) the recurrence of such an ailment, disorder, defect or morbid condition;
but does not include:
 (c) the aggravation of such an ailment, disorder, defect or morbid condition; or
 (d) a temporary departure from:
 (i) the normal physiological state; or
 (ii) the accepted ranges of physiological or biochemical measures;
  that results from normal physiological stress (for example, the effect of exercise on blood pressure) or the temporary effect of extraneous agents (for example, alcohol on blood cholesterol levels).
incapacity from a defence‑caused injury or incapacity from a defence‑caused disease has the meaning given by subsection (2).
incapacity from a war‑caused injury or incapacity from a war‑caused disease has the meaning given by subsection (2).
injury means any physical or mental injury (including the recurrence of a physical or mental injury) but does not include:
 (a) a disease; or
 (b) the aggravation of a physical or mental injury.
War‑caused injury; war‑caused disease; defence‑caused injury; defence‑caused disease
 (2) In this Act, unless the contrary intention appears:
 (a) a reference to the incapacity of a veteran from a war‑caused injury or a war‑caused disease; or
 (b) a reference to the incapacity of a person who is a member of the Forces, or a member of a Peacekeeping Force (as defined by subsection 68(1)), from a defence‑caused injury or a defence‑caused disease;
is a reference to the effects of that injury or disease and not a reference to the injury or disease itself.
Note: For war‑caused injury and war‑caused disease see section 9.
Blinded in an eye
 (3) For the purposes of this Act, a person is taken to have been blinded in an eye if:
 (a) the person has lost the eye; or
 (b) in the opinion of the Commission, the eyesight of the person in that eye is so defective that the person has no useful sight in that eye.
5E  Family relationships definitions—couples
 (1) In this Act, unless the contrary intention appears:
couple has the meaning given by subsections (2), (3) and (4).
member of a couple has the meaning given by subsections (2), (3), (4) and (4A).
non‑illness separated spouse means a person:
 (a) who is legally married to another person but living separately and apart from that other person on a permanent basis; and
 (b) whose separation has not resulted in a determination under subsection 5R(5).
partner, in relation to a person who is a member of a couple, means the other member of the couple.
partnered has the meaning given by subsection (5).
partnered (partner getting benefit) has the meaning given by subsection (5).
partnered (partner getting neither pension nor benefit) has the meaning given by subsection (5).
partnered (partner getting pension) has the meaning given by subsection (5).
partnered (partner getting pension or benefit) has the meaning given by subsection (5).
prohibited relationship has the meaning given by subsections (6) and (7).
war widow means a woman:
 (a) who was the partner of, was legally married to, or was the wholly dependent partner of:
 (i) a veteran; or
 (ii) a person who was a member of the Forces for the purposes of Part II or IV of this Act; or
 (iii) a person who was a member (within the meaning of the MRCA);
  immediately before the death of the veteran or person; and
 (b) who:
 (i) is receiving a pension payable under Part II or IV of this Act at a rate determined under or by reference to subsection 30(1); or
 (ii) is receiving the weekly amount mentioned in paragraph 234(1)(b) of the MRCA (including a reduced weekly amount because of a choice under section 236 of the MRCA) or has received a lump sum mentioned in subsection 236(5) of the MRCA; or
 (iii) is receiving a pension that is payable under the law of a foreign country, and that is, in the opinion of the Commission, similar in character to a pension referred to in subparagraph (i).
war widower means a man:
 (a) who was the partner of, was legally married to, or was the wholly dependent partner of:
 (i) a veteran; or
 (ii) a person who was a member of the Forces for the purposes of Part II or IV of this Act; or
 (iii) a person who was a member (within the meaning of the MRCA);
  immediately before the death of the veteran or person; and
 (b) who:
 (i) is receiving a pension payable under Part II or IV of this Act at a rate determined under or by reference to subsection 30(1); or
 (ii) is receiving the weekly amount mentioned in paragraph 234(1)(b) of the MRCA (including a reduced weekly amount because of a choice under section 236 of the MRCA) or has received a lump sum mentioned in subsection 236(5) of the MRCA; or
 (iii) is receiving a pension that is payable under the law of a foreign country, and that is, in the opinion of the Commission, similar in character to a pension referred to in subparagraph (i).
wholly dependent partner has the meaning given by the MRCA.
widow means:
 (a) a woman who was the partner of a person immediately before the person died; or
 (b) a woman who was legally married to a person, but living separately and apart from the person on a permanent basis, immediately before the person died.
widower means:
 (a) a man who was a partner of a person immediately before the person died; or
 (b) a man who was legally married to a person, but living separately and apart from the person on a permanent basis, immediately before the person died.
Member of a couple—general
 (2) A person is a member of a couple for the purposes of this Act if:
 (a) the person is legally married to another person and is not living separately and apart from the other person on a permanent basis; or
 (aa) both of the following conditions are met:
 (i) a relationship between the person and another person (whether of the same sex or a different sex) is registered under a law of a State or Territory prescribed for the purposes of section 2E of the Acts Interpretation Act 1901 as a kind of relationship prescribed for the purposes of that section;
 (ii) the person is not living separately and apart from the other person on a permanent basis; or
 (b) all of the following conditions are met:
 (i) the person is living with another person, whether of the same sex or a different sex (in this paragraph called the partner);
 (ii) the person is not legally married to the partner;
 (iii) the person and the partner are, in the Commission's opinion (formed as mentioned in section 11A), in a de facto relationship;
 (iv) the person and the partner are not within a prohibited relationship.
Note 1: For living with a person see subsection (3).
Note 3: Subsection 5R(5) (determination in relation to an illness separated couple) is a qualification to the definition of a member of a couple.
Note 4: Subsection 5R(6) (determination in relation to a respite care couple) is a qualification to the definition of a member of a couple.
 (3) For the purposes of subparagraph (2)(b)(i), a person is to be treated as living with another person during:
 (a) any temporary absence of one of those persons;
 (b) an absence of one of those persons resulting from illness or infirmity;
if the Commission is of the opinion that they would, but for the absence, have been living together during that period.
Member of a couple—special excluding determination
 (4) A person is not a member of a couple if a determination under subsection 5R(3) is in force in relation to the person.
Note: Subsection 5R(3) allows the Commission to treat a person who is a member of a couple as not being a member of a couple in special circumstances.
 (4A) The partner of a person who:
 (a) is receiving a youth allowance under the Social Security Act; and
 (b) is not independent within the meaning of Part 3.5 of that Act;
is not a member of a couple for the purposes of:
 (c) the provisions of this Act referred to in the table at the end of this subsection; and
 (d) any provision of this Act that applies for the purposes of a provision mentioned in paragraph (c).
Note: Paragraph (d) has the effect of treating a person as not being a member of a couple in provisions that apply for the purposes of the income test, assets test or compensation recovery provisions, including section 5H (Income test definitions), sections 5L and 5LA (Assets test definitions), section 5NB (Compensation recovery definitions) and Divisions 1 to 11 of Part IIIB (General provisions relating to the income and assets tests).
Affected provisions
Item                 Provisions of this Act                                   Subject matter
1                    Part IIIC                                                Compensation recovery
2                    Module E of the Rate Calculator in Part 2 of Schedule 6  Ordinary/adjusted income test
3                    Module F of the Rate Calculator in Part 2 of Schedule 6  Assets test
Standard family situation categories
 (5) For the purposes of this Act:
 (a) a person is partnered if the person is a member of a couple; and
 (b) a person is partnered (partner getting neither pension nor benefit) if the person is a member of a couple and the person's partner:
 (i) is not receiving a service pension; and
 (ia) is not receiving income support supplement; and
 (ib) is not receiving a veteran payment; and
 (ii) is not receiving a social security pension; and
 (iii) is not receiving a social security benefit; and
 (c) a person is partnered (partner getting pension or benefit) if the person is a member of a couple and the person's partner is receiving:
 (i) a service pension; or
 (ia) income support supplement; or
 (ib) a veteran payment; or
 (ii) a social security pension; or
 (iii) a social security benefit; and
 (d) a person is partnered (partner getting pension) if the person is a member of a couple and the person's partner is receiving:
 (i) a service pension; or
 (ia) income support supplement; or
 (ib) a veteran payment; or
 (ii) a social security pension; and
 (e) a person is partnered (partner getting benefit) if the person is a member of a couple and the person's partner is receiving a social security benefit.
Prohibited relationship
 (6) For the purposes of this Act, a person and his or her partner are within a prohibited relationship if the person is:
 (a) an ancestor or a descendant of the partner; or
 (b) a brother, sister, half‑brother or half‑sister of the partner.
 (7) For the purposes of subsection (6), a child who is, or has ever been, an adopted child of a person is taken to be the natural child of that person and the person is taken to be the natural parent of the child.
5F  Family relationships definitions—children
 (1) In this Act, unless the contrary intention appears:
Aboriginal study assistance scheme means:
 (a) the ABSTUDY Scheme; or
 (b) the Aboriginal Overseas Study Assistance Scheme; or
 (c) a scheme prescribed for the purposes of this definition.
adopted child means a child adopted under the law of any place, whether in Australia or not, relating to the adoption of children.
child means:
 (a) a person who has not turned 16; or
 (b) a person who:
 (i) has turned 16 but has not turned 25; and
 (ii) is receiving full‑time education at a school, college or university;
but does not include such a person if the person is receiving:
 (c) a disability support pension; or
 (e) a carer payment; or
 (f) a pension PP (single); or
 (h) a widowed person allowance; or
 (j) a social security benefit (except youth allowance paid because the person is at least 16 but less than 25 and is receiving full‑time education at a school, college or university);
under the Social Security Act.
dependent child has the same meaning as in the Social Security Act.
family tax benefit has the meaning given by subsection 3(1) of the Family Assistance Act.
FTB child has the meaning given by Subdivision A of Division 1 of Part 3 of the Family Assistance Act.
maximum Part A rate of family tax benefit is the maximum rate worked out in step 1 of the method statement in clause 3 of Schedule 1 to the Family Assistance Act.
parent has a meaning affected by section 10A.
regular care child has the meaning given by subsection 3(1) of the Family Assistance Act.
step‑child: without limiting who is a step‑child of a person for the purposes of this Act, someone who is a child of a partner of the person is the step‑child of the person, if he or she would be the person's step‑child except that the person is not legally married to the partner.
step‑parent: without limiting who is a step‑parent of a person for the purposes of this Act, someone who is a partner of a parent of the person is the step‑parent of the person, if he or she would be the person's step‑parent except that he or she is not legally married to the person's parent.
When a person becomes a dependent child
 (2) A person becomes a dependent child at the time when the person would become a dependent child for the purposes of the Social Security Act if that Act applied in respect of the person.
5G  Australian residence definitions
 (1) In this Act, unless the contrary intention appears:
Australian resident has the meaning given by subsection (1AA).
holder, in relation to a visa, has the same meaning as in the Migration Act 1958.
permanent visa, special category visa and special purpose visa have the same meanings as in the Migration Act 1958.
 (1AA) An Australian resident is a person who:
 (a) resides in Australia; and
 (b) is one of the following:
 (i) an Australian citizen;
 (ii) the holder of a permanent visa;
 (iii) the holder of a special category visa who is likely to remain permanently in Australia;
 (iv) the holder of a special purpose visa who is likely to remain permanently in Australia.
Note 1: For holder, permanent visa and special purpose visa see subsection (1).
Note 2: Australian citizen is defined in the Australian Citizenship Act 2007.
 (1A) In deciding for the purposes of this Act whether or not a person resides in Australia, regard must be had to:
 (a) the nature of the accommodation used by the person in Australia; and
 (b) the nature and extent of the family relationships the person has in Australia; and
 (c) the nature and extent of the person's employment, business or financial ties with Australia; and
 (ca) the nature and extent of the person's assets located in Australia; and
 (cb) the frequency and duration of the person's travel outside Australia; and
 (d) any other matter relevant to determining whether the person intends to remain permanently in Australia.
 (1AB) For the purposes of paragraph (1A)(b), family relationships are taken to include (without limitation):
 (a) relationships between partners; and
 (b) relationships of child and parent that arise if someone is the parent of a person under section 10A; and
 (c) any other relationship that would be a family relationship if a relationship mentioned in paragraph (a) or (b) is taken to be a family relationship.
Papua New Guinea residents
 (2) For the purposes of this Act (other than Part VIIC), a person (other than an indigenous inhabitant of the Territory of Papua or the Territory of New Guinea) resident in Papua New Guinea immediately before it became an independent sovereign State, is taken to be an Australian resident so long as the person continues to reside in Papua New Guinea.
 (3) If:
 (a) a person who is receiving a service pension, income support supplement or a veteran payment is taken to be an Australian resident under subsection (2); and
 (b) the person's partner was resident in Papua New Guinea after it became an independent sovereign State;
the partner is, for the purposes of Parts III, IIIA, IIIAA and IIIB, also taken to be an Australian resident.
 (4) If:
 (a) a person who is receiving a service pension, income support supplement or a veteran payment is taken to be an Australian resident under subsection (2); and
 (b) the person's non‑illness separated spouse was resident in Papua New Guinea after it became an independent sovereign State;
the non‑illness separated spouse is, for the purposes of Parts III, IIIA, IIIAA and IIIB, also taken to be an Australian resident.
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, income support supplement or a veteran payment 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 or veteran payment  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, income support supplement or veteran payment 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.
5H  Income test definitions
 (1) In this Act, unless the contrary intention appears:
adjusted income, in relation to a person for the purpose of assessment of the rate of income support supplement, means the sum of:
 (a) the person's ordinary income; and
 (b) a payment to the person that is a payment in respect of incapacity or death resulting from employment in connection with a war or war‑like operations in which the Crown has been engaged, other than:
 (i) a pension under Part II or IV (other than a pension that is payable under section 30 to a dependant of a deceased veteran); or
 (ii) a pension payable because of subsection 4(6) or (8B) of the Veterans' Entitlements (Transitional Provisions and Consequential Amendments) Act 1986 (other than a pension payable in respect of a child); and
 (c) any instalment of pension payable to the person under subsection 30(1); and
 (ca) if compensation under section 233 of the MRCA is payable to the person and the person has not made a choice under section 236 of the MRCA—any payment of the weekly amount mentioned in paragraph 234(1)(b) of the MRCA; and
 (cb) if compensation under section 233 of the MRCA is payable to the person and the person has made a choice under section 236 of the MRCA—any weekly amount mentioned in paragraph 234(1)(b) of the MRCA that the person would have been paid if the person had not made that choice; and
 (d) any instalment of pension that is payable to the person under the law of a foreign country and is, in the opinion of the Commission, similar in character to the pension referred to in paragraph (c).
approved exchange trading system has the meaning given by subsection (11).
available money, in relation to a person, means money that:
 (a) is held by or on behalf of the person; and
 (b) is not deposit money of the person; and
 (c) is not the subject of a loan made by the person.
deposit money, in relation to a person, means the person's money that is deposited in an account with a financial institution.
disposes of ordinary income has the meaning given by section 48.
domestic payment has the meaning given by subsection (3).
earned, derived or received has the meaning given by subsection (2).
exchange trading system has the meaning given by subsection (10).
exempt lump sum has the meaning given by subsections (12) and (12A).
home equity conversion agreement, in relation to a person, means an agreement under which the repayment of an amount paid to or on behalf of the person, or the person's partner, is secured by a mortgage of the principal home of the person or the person's partner.
Note 1: See also subsection (7).
Note 2: A pension loans scheme advance payment (within the meaning of Subdivision E of Division 11 of Part IIIB) is an example of a payment under a home eq
        
      