Commonwealth: Veterans' Entitlements (Rewrite) Transition Act 1991 (Cth)

Veterans' Entitlements (Rewrite) Transition Act 1991 No. 73 of 1991 TABLE OF PROVISIONS PART 1—PRELIMINARY Section 1. Short title 2. Commencement PART 2—SAVINGS AND TRANSITIONAL PROVISIONS Division 1—General 3. Interpretation 4. Correspondence of pensions 5. Correspondence of provisions Division 2—Savings 6. General aim of Division 7. Saving of pensions and qualifying service determinations 8. Instruments in force on 30 June 1991 9. Saving of claims for pensions and qualifying service determinations 10. Unfinalised internal reviews 11. Application to participate in the pension loans scheme 12. Application to take advantage of hardship rules 13. Payment of service pension to agent 14. Request to terminate service pension 15. Cancellation or suspension where person fails to draw instalments 16. Deduction of tax from service pension TABLE OF PROVISIONS—continued Section Division 3—Transitional (1990 Budget) 17. Fringe benefits test—interest attributed to money not invested or invested at a low rate of interest (changes introduced on 1 March 1991) PART 3—INDEXATION AMENDMENTS OF THE VETERANS' ENTITLEMENTS ACT 1986 18. Indexation amendments PART 4—1990 BUDGET AMENDMENTS OF THE VETERANS' ENTITLEMENTS ACT 1986 19. 1990 Budget amendments PART 5—CONSEQUENTIAL AMENDMENTS OF THE VETERANS' ENTITLEMENTS ACT 1986 20. Consequential amendments of the Veterans' Entitlements Act 1986 PART 6—CONSEQUENTIAL AMENDMENTS OF OTHER ACTS 21. Consequential amendments of other Acts PART 7—MINOR AMENDMENTS OF THE VETERANS' ENTITLEMENTS ACT 1986 22. Minor amendments of the Veterans' Entitlements Act 1986 SCHEDULE 1 INDEXATION AMENDMENTS OF THE VETERANS' ENTITLEMENTS ACT 1986 SCHEDULE 2 1990 BUDGET AMENDMENTS OF THE VETERANS' ENTITLEMENTS ACT 1986 SCHEDULE 3 CONSEQUENTIAL AMENDMENTS OF THE VETERANS' ENTITLEMENTS ACT 1986 SCHEDULE 4 CONSEQUENTIAL AMENDMENTS OF OTHER ACTS SCHEDULE 5 MINOR AMENDMENTS OF THE VETERANS' ENTITLEMENTS ACT 1986 Veterans' Entitlements (Rewrite) Transition Act 1991 No. 73 of 1991 An Act to make consequential amendments and savings and transitional provisions relating to the Veterans' Entitlements Amendment Act 1991 [Assented to 25 June 1991] The Parliament of Australia enacts: PART 1—PRELIMINARY Short title 1. (1) This Act may be cited as the Veterans' Entitlements (Rewrite) Transition Act 1991. (2) In this Act, "Principal Act" means the Veterans' Entitlements Act 19861. Commencement 2. (1) Subject to subsection (2), this Act commences on 1 July 1991, immediately after the commencement of the Veterans' Entitlements Amendment Act 1991. (2) Section 19 commences immediately after the commencement of section 22. PART 2—SAVINGS AND TRANSITIONAL PROVISIONS Division 1—General Interpretation 3. In this Part: "former Part III" means Part III of the Principal Act as in force immediately before 1 July 1991; "new Part III" means Part III of the Principal Act as in force on 1 July 1991. Correspondence of pensions 4. For the purposes of this Part: (a) a service pension granted to a person because of section 38 of the former Part III and an age service pension under the new Part III correspond to each other; and (b) a service pension granted to a person because of section 39 of the former Part III and an invalidity service pension under the new Part III correspond to each other; and (c) a wife's service pension granted to a person because of section 40 of the former Part III and a wife service pension under the new Part III correspond to each other; and (d) a carer's service pension granted to a person because of section 41 of the former Part III and a carer service pension under the new Part III correspond to each other. Correspondence of provisions 5. (1) If one provision of the former Part III and one provision of the new Part III have the same legal effect, the 2 provisions correspond to each other. (2) If: (a) one provision of the former Part III has a particular legal effect in relation to different types of service pension; and (b) a provision of the new Part III has that legal effect in relation to only one of those types of service pension; the provisions correspond to each other for the purposes of applying this Part (Savings and Transitional Provisions) to that payment type. (3) In this section: "legal effect" includes conferring the power to issue an instrument. Division 2—Savings General aim of Division 6. The main aim of this Division is to allow: (a) the continued payment of pensions that were granted under the former Part III; and (b) the continuation of processes (such as claims and applications) that were begun under the former Part III; without the need for people to make new claims or begin those processes again. Saving of pensions and qualifying service determinations 7. (1) If a determination granting a claim for a pension, or a decision that a person has rendered qualifying service, under the former Part III is in force immediately before I July 1991, the determination or decision has effect, from 1 July 1991, as if it were a determination under the new Part III granting a claim for the corresponding pension under the new Part III or granting a claim for a qualifying service determination under the new Part III. Note: for the statutory authority for the determination and decision under the former Part III see subsections 46 (1) and 43 (6) and section 59 of that Act. (2) If a determination directing the making of a payment of a pension under the former Part III is in force immediately before 1 July 1991, the determination has effect, from 1 July 1991, as if it were a determination under the new Part III directing the making of a payment of the corresponding pension under the new Part III. Note: for the statutory authority for the determination under the former Part III see subsection 46 (2) and section 59 of that Act. (3) If a determination of the rate of a pension under the former Part III is in force immediately before 1 July 1991, the determination has effect, from 1 July 1991, as if it were a determination under the new Part III of the rate of the corresponding pension under the new Part III. Note: for the statutory authority for the determination under the former Part III see subsections 46 (2) and 58 (1) and (3) and section 59 of that Act. Instruments in force on 30 June 1991 8. (1) If: (a) an instrument made under a provision of the Principal Act is in force immediately before 1 July 1991; and (b) the provision under which it was made is repealed on 1 July 1991; and (c) a provision with the same legal effect is included in the Principal Act as in force on 1 July 1991; the instrument has effect as if it were an instrument made under the provision referred to in paragraph (c). (2) Without limiting subsection (1), the instrument may be: (a) a determination or decision; or (b) a direction; or (c) an approval; or (d) a notice; or (e) a declaration; or (f) an authorisation. (3) If an instrument to which subsection (1) applies was, when made, to have effect only for a limited period, the instrument has effect under subsection (1) only for so much of the period as had not already expired before 1 July 1991. Saving of claims for pensions and qualifying service determinations 9. (1) If: (a) a person has lodged a claim for: (i) a pension; or (ii) a decision that the person has rendered qualifying service; under the former Part III; and (b) the claim has not been determined before 1 July 1991; the claim has effect from 1 July 1991 as if it were a claim for: (c) a corresponding pension; or (d) a qualifying service determination; under the new Part III. (2) If: (a) subsection (1) applies to a claim; and (b) a claim is granted under the new Part III; the determination granting the claim may have a date of effect before 1 July 1991. (3) If: (a) subsection (1) applies to a claim; and (b) the claim is granted under the new Part III; and (c) the determination granting the claim has a date of effect before 1 July 1991; the payment of instalments during the period that starts on the date of effect of the determination and ends on 30 June 1991 is to be made under the new Part III and the person making the claim has no rights under the former Part III arising from the claim. Unfinalised internal reviews 10. (1) If: (a) a person has made an application under subsection 59 (1) of the former Part III before 1 July 1991; and (b) the application has not been determined before 1 July 1991; the application has effect, from 1 July 1991, as if it were an application under subsection 57a (1) of the new Part III. (2) The date of effect of the decision made in response to the application may be before 1 July 1991. (3) If: (a) subsection (1) applies to an application; and (b) the date of effect of the decision made in response to the application is before 1 July 1991; the decision has effect, for the period that starts on the date of effect of the decision and ends on 30 June 1991, as if it were a decision under section 59 of the former Part III. Application to participate in the pension loans scheme 11. (1) If: (a) a person has made a request under subsection 51 (2) of the former Part III before 1 July 1991; and (b) the request has not been determined before 1 July 1991; the request has effect from 1 July 1991 as if it had been made under subsection 52zd (1) of the new Part III. (2) If: (a) subsection (1) applies to a request; and (b) the request is granted under this Act; the former Part III has effect, for the period that starts on the day on which the request was made and ends on 30 June 1991, as if the request had been granted under the former Part III. Application to take advantage of hardship rules 12. (1) If: (a) a person made a request under subsection 53 (1) of the former Part III before 1 July 1991; and (b) the request was not determined before 1 July 1991; the request has effect, from 1 July 1991 as if it had been made under subsection 52y (1) of the new Part III. (2) A decision in response to the request will have a date of effect before 1 July 1991 (see subsection 52y (3) of the new Part III). (3) If: (a) subsection (1) applies to a request; and (b) the request is granted under the new Part III; and (c) the date of effect of the decision to grant the request is before 1 July 1991; the former Part III has effect, for the period that starts on the date of effect of the decision and ends on 30 June 1991, as if the decision had been made under the former Part III. Payment of service pension to agent 13. If a pensioner has made a request in relation to a service pension, wife's service pension or carer's service pension under subsection 122 (2) of the Principal Act before 1 July 1991, the request has effect, from 1 July 1991, as if it had been made under subsection 58d (1)of the new Part III. Request to terminate service pension 14. If a pensioner has made a request in relation to a service pension or wife's service pension under subsection 124 (1) of the Principal Act before 1 July 1991, the request has effect, from 1 July 1991, as if it had been made under subsection 56J (1) of the new Part III. Cancellation or suspension where person fails to draw instalments 15. If the Commission has cancelled or suspended a service pension or wife's service pension under subsection 124 (2) of the Principal Act before 1 July 1991, the cancellation or suspension has effect, from 1 July 1991, as if it had been made under section 56k of the new Part III. Deduction of tax from service pension 16. If a pensioner has made a request under subsection 125 (2) of the Principal Act before 1 July 1991, the request has effect, from 1 July 1991, as if it had been made under section 58h of the new Part III. Division 3—Transitional (1990 Budget) Fringe benefits test—interest attributed to money not invested or invested at a low rate of interest (changes introduced on 1 March 1991) 17. If a person: (a) was not a prescribed person within the meaning of section 82 of the Principal Act on 28 February 1991; and (b) would have been a prescribed person on that day if the amendments made by subsection 54 (1) of the Veterans' Affairs Legislation Amendment Act 1991 (interest attributed to money not invested or invested at a low rate of interest) had been in force on that day; then, for the purposes of the Principal Act and other laws of the Commonwealth, the person is taken to be eligible for fringe benefits under Division 15 of the Principal Act if: (c) the person would not, at any time between 28 February and 1 July 1991, have become a prescribed person within the meaning of section 82 if the amendments referred to in paragraph (b) had not been made; and (d) the person would not, at any time after 30 June 1991, cease to be eligible for fringe benefits under Division 15 of the Principal Act if that Act did not contain Division 8a of Part III. PART 3—INDEXATION AMENDMENTS OF THE VETERANS' ENTITLEMENTS ACT 1986 Indexation amendments 18. The Principal Act is amended as set out in Schedule 1. PART 4—1990 BUDGET AMENDMENTS OF THE VETERANS' ENTITLEMENTS ACT 1986 1990 Budget amendments 19. The Principal Act is further amended as set out in Schedule 2. PART 5—CONSEQUENTIAL AMENDMENTS OF THE VETERANS' ENTITLEMENTS ACT 1986 Consequential amendments of the Veterans' Entitlements Act 1986 20. The Principal Act is further amended as set out in Schedule 3. PART 6—CONSEQUENTIAL AMENDMENTS OF OTHER ACTS Consequential amendments of other Acts 21. The Acts specified in Schedule 4 are amended as set out in that Schedule. PART 7—MINOR AMENDMENTS OF THE VETERANS' ENTITLEMENTS ACT 1986 Minor amendments of the Veterans' Entitlements Act 1986 22. The Principal Act is further amended as set out in Schedule 5. SCHEDULE 1 Section 18 INDEXATION AMENDMENTS OF THE VETERANS' ENTITLEMENTS ACT 1986 After section 5n: Insert: Indexation and rate adjustment definitions "5na. (1) In this Act, unless the contrary intention appears: 'current figure', as at a particular time and in relation to an amount that is to be indexed or adjusted under Division 21 of Part III, means: (a) if the amount has not yet been indexed or adjusted under Division 21 before that time—the amount; and (b) if the amount has been indexed or adjusted under Division 21 before that time—the amount most recently substituted for the amount under Division 21 before that time; index number', in relation to a quarter, means the All Groups Consumer Price Index number that is the weighted average of the 8 capital cities and is published by the Australian Statistician in respect of that quarter. Publication of substituted index numbers "(2) Subject to subsection (3), if at any time (whether before or after the commencement of this section), the Australian Statistician publishes an index number for a quarter in substitution for an index number previously published by the Australian Statistician for that quarter, the publication of the later index number is to be disregarded for the purposes of this section. Change to CPI reference base "(3) If at any time (whether before or after the commencement of this section) the Australian Statistician changes the reference base for the Consumer Price Index, regard is to be had, for the purposes of applying this section after the changed index place, only to index numbers published in terms of the new reference base. After Division 20: Insert the following Division in Part III: "Division 21—Indexation "Subdivision A—Preliminary Analysis of Division "59. This Division provides for: (a) the indexation, in line with CPI (Consumer Price Index) increase, of the amounts in column 2 of the CPI Indexation Table at the end of section 59b; and SCHEDULE 1—continued (b) the adjustment of other amounts in line with the increase in the amounts indexed. Indexed and adjusted amounts "59a. The following Table sets out: (a) each amount that is to be indexed or adjusted under this Division; and (b) the abbreviation used in this Division for referring to that amount; and (c) the provision or provisions in which that amount is to be found. INDEXED AND ADJUSTED AMOUNTS TABLE column 1 column 2 column 3 column 4 item description of amount abbreviation provisions in which amount specified Maximum basic rates 1. Maximum basic rates for service pension pension MBR *Service Pension Rate Calculator Where There Are No Dependent Children—point 41-B1—Table B—column 3—all amounts *Service Pension Rate Calculator Where There Are Dependent Children—point 42-B1—Table B—column 3—all amounts * Service Pension Rate Calculator For Blinded Veterans—point 43-B1—Table B—column 3—all amounts *Service Pension Rate Calculator for Widows and Non-illness Separated Wives—point 44-B1—Table B—column 3—all amounts Child amounts 2. Service pension dependent child addon for child who has not turned 13 pension under 13 child add-on *Service Pension Rate Calculator Where There Are Dependent Children—point 42-C3—Table C-2—column 3—item 1 SCHEDULE 1—continued INDEXED AND ADJUSTED AMOUNTS TABLE—continued column 1 column 2 column 3 column 4 item description of amount abbreviation provisions in which amount specified *Service Pension Rate Calculator for Blinded Veterans—point 43-C3—Table C-2—column 3—item 1 3. Service pension dependent child add-on for child who has turned 13 but has not turned 16 pension *Service Pension Rate Calculator Where There Are Dependent Children—point 42-C3—Table C-2—column 3—item 2 13-15 *Service Pension Rate Calculator for Blinded Veterans—point 43-C3—Table C-2—column 3—item 2 child add-on 4. Guardian allowance for service pension pension guardian allowance *Service Pension Rate Calculator Where There Are Dependent Children—point 42-C7 *Service Pension Rate Calculator for Blinded Veterans—point 43-C3—Table C-2—column 3—item 4 Permissible child earnings 5. Amount that a child who is not in full-time education and is under 16 can earn from employment without ceasing to be a dependent child permissible child earnings limit *paragraph 5f (3) (c) Rent assistance 6. Maximum rent assistance for service pension pension MRA *Service Pension Rate Calculator Where There Are No Dependent Children—point 41-C6—Table C-l—column 4—all amounts *Service Pension Rate Calculator Where There Are Dependent Children—point 42-D6—Table D-l—column 4—all amounts SCHEDULE 1—continued INDEXED AND ADJUSTED AMOUNTS TABLE—continued column 1 column 2 column 3 column 4 item description of amount abbreviation provisions in which amount specified *Service Pension Rate Calculator for Widows and Non-illness Separated Wives— point 44-C6—Table C-l—column 4—all amounts Income free area 7. Ordinary income free area for service pension pension free area *Service Pension Rate Calculator Where There Are No Dependent Children—point 41-D4—Table D-l—column 3—all amounts *Service Pension Rate Calculator Where There Are Dependent Children—point 42-E4—Table E-l—column 3—all amounts *Service Pension Rate Calculator for Widows and Non-illness Separated Wives— point 44-D4 8. Fringe benefits income free area fringe benefits free area *Fringe Benefits Income Test Calculator—point 53B-4—Table B-2— column 3 Assets value limits 9. Assets value limit for service pension for property owner who is not a member of a couple pension "single" property owner AVL *Service Pension Rate Calculator Where There Are No Dependent Children— point 41-F3—Table F-l—column 3a—item 1 *Service Pension Rate Calculator Where There Are Dependent Children—point 42-G3 —Table G-l—column 3a—item 1 *Service Pension Rate Calculator for Widows SCHEDULE 1—continued INDEXED AND ADJUSTED AMOUNTS TABLE—continued column 1 column 2 column 3 column 4 item description of amount abbreviation provisions in which amount specified and Non-illness Separated Wives— point 44-F3—Table F-l—column 3A—item 1 10. Assets value limit for service pension for non-property owner who is not a member of a couple pension "single" non-property owner AVL *Service Pension Rate Calculator Where There Are No Dependent Children— point 41-F3—Table F-l—column 3B—item 1 *Service Pension Rate Calculator Where There Are Dependent Children—point 42-G3 —Table G-l—column 3b—item 1 *Service Pension Rate Calculator for Widows and Non-illness Separated Wives— point 44-F3—Table F-l—column 3B— item 1 11. Assets value limit for service pension for property owner who is a member of a couple pension "partnered" property owner AVL *Service Pension Rate Calculator Where There Are No Dependent Children— point 41-F3—Table F-l—column 3a— items 2 and 3 *Service Pension Rate Calculator Where There Are Dependent Children—point 42-G3 —Table G-l—column 3a—items 2 and 3 *Service Pension Rate Calculator for Widows and Non-illness Separated Wives— point 44-F3—Table F-l—column 3a— items 2 and 3 SCHEDULE 1—continued INDEXED AND ADJUSTED AMOUNTS TABLE—continued column 1 column 2 column 3 column 4 item description of amount abbreviation provisions in which amount specified 12. Assets value limit for service pension for non-property owner who is a member of a couple pension "partnered" non-property owner AVL *Service Pension Rate Calculator Where There Are No Dependent Children— point 41-F3—Table F-l—column 3B— items 2 and 3 *Service Pension Rate Calculator Where There Are Dependent Children—point 42-G3 —Table G-l—column 3B—items 2 and 3 *Service Pension Rate Calculator for Widows and Non-illness Separated Wives— point 44-F3—Table F-l—column 3B— items 2 and 3 13. Assets value limit for some illness separated retirement village and granny flat residents special illness separated resident AVL *paragraph 52s (5) (g), paragraph 52t (3) (e), paragraph 52u (2) (e) 14. Assets value limit for fringe benefits for property owner who is not a member of a couple fringe benefits "single" property owner AVL *Fringe Benefits Assets Test Calculator—point 53C-2—Table-column 3a—item 1 15. Assets value limit for fringe benefits for non-property owner who is not a member of a couple fringe benefits "single" non-property owner AVL *Fringe Benefits Assets Test Calculator—point 53C-2—Table-column 3b—item 1 16. Assets value limit for fringe benefits for property owner who is a member of a couple fringe benefits "partnered" property owner AVL *Fringe Benefits Assets Test Calculator—point 53C-2—Table-column 3a—item 2 17. Assets value limit for fringe benefits for non-property owner who is a member of a couple fringe benefits "partnered" non-property owner AVL *Fringe Benefits Assets Test Calculator—point 5 3C-2—Table-column 3b—item 2 SCHEDULE 1—continued "Subdivision B—CPI indexation CPI Indexation Table "59b. (1) An amount referred to in the following CPI Indexation Table is to be indexed under this Division on each indexation day for the amount, using the reference quarter and base quarter for the amount and indexation day and rounding off to the nearest multiple of the rounding amount: CPI INDEXATION TABLE column 1 column 2 column 3 column 4 column 5 column 6 item amount indexation day(s) reference quarter most recent before indexation day) base quarter rounding base Maximum basic rates 1. pension MBR (a) 20 March (a) December highest June or December quarter before reference quarter but not earlier than June quarter 979) $2.60 (b) 20 September (b) June Permissible child earnings 2. permissible child earnings limit 1 January June highest June quarter before reference quarter $0.05 Rent assistance 3. pension MRA (a) 20 March (a) December highest June or December quarter before reference quarter (but not earlier than June quarter 1979) $2.60 (b) 20 September (b) June SCHEDULE 1—continued CPI INDEXATION TABLE—continued column I column 2 column 3 column 4 column 5 column 6 item amount indexation day(s) reference quarter (most recent before indexation day) base quarter rounding base Income free areas 4. pension free area 1 July March most recent March quarter before reference quarter $26.00 5. fringe benefits income free area (a) 20 March (a) December highest June or December quarter before reference quarter (but not earlier than June quarter 1979) $52.00 (b) 20 September (b) June Assets value limits 6. pension "single" property owner AVL 13 June December most recent December quarter before reference quarter $250.00 7. pension "partnered" property owner AVL 13 June December most recent December quarter before reference quarter $250.00 8. pension "partnered" non-property owner AVL 13 June December most recent December quarter before reference quarter $250.00 SCHEDULE 1—continued CPI INDEXATION TABLE—continued column 1 column 2 column 3 column 4 column 5 column 6 item amount indexation day(s) reference quarter (most recent before indexation day) base quarter rounding base 9. fringe benefits "single" property owner AVL 13 June December most recent December quarter before reference quarter $250.00 10. fringe benefits "partnered" property owner AVL 13 June December most recent December quarter before reference quarter $250.00 SCHEDULE 1—continued Highest quarter "(2) A reference in the CPI Indexation Table to the highest of a group of quarters is a reference to the quarter in that group that has the highest index number. Indexation of amounts "59c. (1) If an amount is to be indexed under this Subdivision on an indexation day, this Act has effect as if the indexed amount were substituted for that amount on that day. "(2) This is how to work out the indexed amount for an amount that is to be indexed under this Subdivision on an indexation day: Method statement Step 1. Use section 59d to work out the indexation factor for the amount on the indexation day. Step 2. Work out the current figure for the amount immediately before the indexation day. Step 3. Multiply the current figure by the indexation factor: the result is the provisional indexed amount. Step 4. Use section 59e to round off the provisional indexed amount: the result is the indexed amount. Note: for 'current figure' see subsection 5na (1). Indexation factor "59d. (1) Subject to subsections (2) and (3), the indexation factor for an amount that is to be indexed under this Subdivision on an indexation day is: worked out to 3 decimal places. Note: for 'reference quarter' and 'base quarter' see the CPI Indexation Table in section 59b. "(2) If an 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, the indexation factor is to be increased by 0.001. "(3) If an indexation factor worked out under subsections (1) and (2) would be less than 1, the indexation factor is to be increased to 1. Rounding off indexed amounts "59e. (1) If a provisional indexed amount is a multiple of the rounding base, the provisional indexed amount becomes the indexed amount. SCHEDULE 1—continued Note 1 : for 'provisional indexed amount' see Step 3 in subsection 59c (2). Note 2: for 'rounding base' see the CPI Indexation Table in section 59b. "(2) If a provisional indexed amount is not a multiple of the rounding base, the indexed amount is the provisional indexed amount rounded up or down to the nearest multiple of the rounding base. "(3) If a provisional indexed amount is not a multiple of the rounding base but is a multiple of half the rounding base, the indexed amount is the provisional indexed amount rounded up to the nearest multiple of the rounding base. "Subdivision C—Adjustment of other rates Adjustment of pension child add-ons "59f. (1) This Act has effect as if, on 1 January each year, each pension under 13 child add-on were replaced with the amount that is the pension under 13 child add-on for the purposes of Part 3.16 (Indexation) of the Social Security Act on that day. "(2) This Act has effect as if, on 1 January each year, each pension 13-15 child add-on were replaced with the amount that is the pension 13-15 child add-on for the purposes of Part 3.16 (Indexation) of the Social Security Act on that day. Adjustment of pension guardian allowance "59g. This Act has effect as if, on 1 January each year, the pension guardian allowance were replaced with the amount that is the pension guardian allowance for the purposes of Part 3.16 (Indexation) of the Social Security Act on that day. Adjustment of pension "single" non-property owner AVL "59h. This Act has effect as if, on 13 June each year, the amount worked out in accordance with the following formula were substituted for the pension 'single' non-property owner AVL: where: pension 'single' property owner AVL is the current figure, as at that 13 June, for the pension 'single' property owner AVL; pension 'partnered' non-property owner AVL is the current figure, as at that 13 June, for the pension 'partnered' non-property owner AVL; SCHEDULE 1—continued pension 'partnered' property owner AVL is the current figure, as at that 13 June, for the pension 'partnered' property owner AVL. Adjustment of special illness separated resident AVL "59j. This Act has effect as if, on 13 June each year, the amount worked out in accordance with the following formula were substituted for each special illness separated retirement village resident AVL: Adjustment of fringe benefits AVLs "59k. (1) This Act has effect as if, on 13 June each year, the amount worked out in accordance with the following formula were substituted for the fringe benefits 'single' non-property owner AVL: where: fringe benefits 'single' property owner AVL is the current figure, as at that 13 June, for the fringe benefits 'single' property owner AVL; pension 'partnered' non-property owner AVL is the current figure, as at that 13 June, for the pension 'partnered' non-property owner AVL; pension 'partnered' property owner AVL is the current figure, as at that 13 June, for the pension 'partnered' property owner AVL. "(2) This Act has effect as if, on 13 June each year, the amount worked out in accordance with the following formula were substituted for the fringe benefits 'partnered' non-property owner AVL: where: fringe benefits 'partnered' property owner AVL is the current figure, as at that 13 June, for the fringe benefits 'partnered' property owner AVL; pension 'partnered' non-property owner AVL is the current figure, as at that 13 June, for the pension 'partnered' non-property owner AVL; SCHEDULE 1—continued pension 'partnered' property owner AVL is the current figure, as at that 13 June, for the pension 'partnered' property owner AVL.". SCHEDULE 2 Section 19 1990 BUDGET AMENDMENTS OF THE VETERANS' ENTITLEMENTS ACT 1986 Section 5 (Index): Insert the following terms in their respective appropriate alphabetical positions (determined on a letter-by-letter basis): "Aboriginal study assistance scheme 5f (1) available money 5h (1) deposit money 5 (1) entry contribution 52m financial institution 5q (1) granny flat interest 5l (8a) tax file number 5q (1)". Subsection 5b (2): Omit the subsection, substitute: "(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 9 or 10 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 Minister for Defence, taken to have been allotted for duty in an operational area described in item 4 or 8 in Schedule 2 (in column 1).". SCHEDULE 2—continued Subsection 5f (1): Insert: " '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;". Subsection 5h (1): Insert: " '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 money to which Division 8b of Part III (income from loans) applies; 'deposit money', in relation to a person, means the person's money that is deposited in an account with a financial institution;". After paragraph 5h (8) (o): Insert: "(oa) a payment by a State or Territory for the purpose of assisting people to purchase or build their own homes;". Paragraph 5h (8) (w): Add at the end: "or (ix) a widowed person allowance; or (x) a widow B pension;". After paragraph 5h (8) (y): Insert: "(ya) a payment towards the cost of personal care support services for the person that is made under a scheme approved under section 35a of the Social Security Act;". Subsection 5l (1): Insert: " 'granny flat interest' has the meaning given by subsection (8a);". Subparagraph 5l (4) (a) (ii): Omit the subparagraph, substitute: "(ii) the person's right or interest in the home: (a) gives the person reasonable security of tenure in the home; and (b) is not a granny flat interest; and". SCHEDULE 2—continued Subparagraph 5l (4) (b) (ii): Omit the subparagraph, substitute: "(ii) the person's right or interest, or the partner's right or interest, in the home: (a) gives the person or the person's partner reasonable security of tenure in the home; and (b) is not a granny flat interest; and". After subsection 5l (8): Insert: Granny flat interest "(8a) A person has a granny flat interest in the person's principal home if: (a) the residence that is the person's principal home is a private residence; and (b) the person has acquired for valuable consideration or has retained: (i) a right to accommodation for life in the residence; or (ii) a life interest in the residence.". Paragraph 5l (7) (b): Omit the paragraph, substitute: "(b) any period (not exceeding 2 years) during which the person is residing in a nursing home; and (c) any period during which: (i) the person is residing in a nursing home; and (ii) the residence is, or because of paragraph (a) or (b) continues to be, the principal home of the person's partner or non-illness separated wife; and (d) where: (i) the person is residing in a nursing home; and (ii) while paragraph (c) applies, the person's partner or non-illness separated wife dies while a resident of a nursing home; and (iii) the person's partner or non-illness separated wife had resided in a nursing home for less than 2 years; the period of 2 years from the beginning of that residence; and (e) where: (i) the person is residing in a nursing home; and (ii) while paragraph (c) applies, the person's partner or non-illness separated wife dies (but not while a resident of a nursing home); SCHEDULE 2—continued the period of 2 years from that death. Note: for 'residing in a nursing home', see subsection 5n (8).". Subsection 5q (1) (definition of "account"): Omit the definition, substitute: " 'account', in relation to a financial institution, means the account maintained by a person with the institution to which is credited money received on deposit by the institution from that person;". Subsection 5q (1) (after the definition of "determination of entitlements"): Insert: " 'financial institution' means a bank, building society, credit union or other institution that receives money on deposit;". Subsection 5q (1) (after paragraph (a) of the definition of "remote area"): Insert: "(aa) those parts of Australia referred to in Part II of that Schedule to that Act that are further than 250 kilometres by the shortest practicable surface route from the nearest urban centre with a census population (within the meaning of that Act) of 2,500 or more; and (ab) those places in Australia that, for the purposes of that Act, are treated as if they were in a part of Australia referred to in paragraph (a) or (aa); and". Subsection 5q (1): Add at the end: " 'tax file number' has the same meaning as in Part Va of the Income Tax Assessment Act 1936.". Section 5s: Add at the end: "(2) Subsection (1) does not apply to a temporary incapacity allowance (under section 107) or a loss of earnings allowance (under section 108).". Sub-subparagraphs 7a (1) (a) (iii) (b) and (iv) (b): Omit "while the person", substitute "as a person who". Subparagraph 7a (1) (a) (iii): Omit "or 8", substitute ", 8, 9 or 10". SCHEDULE 2—continued Subparagraph 7a (1) (a) (v): Omit the subparagraph. Paragraph 7a (1) (b): After "Strategic Reserve)" insert "in the area described in item 3 of Schedule 2 (in column 1) during the period specified in column 2 of that Schedule opposite to that description". Section 42 (Service Pension Rate Calculator Where There Are Dependent Children—after point 42-C3): Insert: Failure to reasonably pursue maintenance claim "42-C3A. If: (a) a person who has a dependent child is entitled to claim maintenance from someone else for the child; and (b) the Commission considers it reasonable that the person should take action to obtain the maintenance; and (c) the person does not take the action that the Commission considers reasonable to obtain the maintenance; there is no dependent child add-on for that dependent child.". Section 42 (Service Pension Rate Calculator Where There Are Dependent Children—point 42-E10—after paragraph (d)): Insert: "(da) under an Aboriginal study assistance scheme; or". Section 42 (Service Pension Rate Calculator Where There Are Dependent Children—point 42-E10): Add at the end: "Note: for 'Aboriginal study assistance scheme' see section 5f.". Section 43 (Service Pension Rate Calculator for Blinded Veterans— after point 43-C3): Insert: Failure to reasonably pursue maintenance claim "43-C3A. If: (a) a person who has a dependent child is entitled to claim maintenance from someone else for the child; and (b) the Commission considers it reasonable that the person should take action to obtain the maintenance; and (c) the person does not take the action that the Commission considers reasonable to obtain the maintenance; SCHEDULE 2—continued point 43-C3 does not apply to the person.". Section 44 (Service Pension Rate Calculator—point 44-D8—after paragraph (d)): Insert: "(da) under an Aboriginal study assistance scheme; or". Section 44 (Service Pension Rate Calculator—point 44-D8): Add at the end: "Note: for 'Aboriginal study assistance scheme' see section 5f.". Section 46 (Table—items 1, 2, 3 and 4): After "made" insert "or acquired". Paragraph 46a (1) (a): Omit the paragraph, substitute: "(a) is not income in the form of periodic payments; and". Paragraph 46a (1) (d): After "made" insert ", or acquired, by the person". Subsection 46a (2): Omit "becoming entitled to receive an amount includes a reference to the person becoming entitled to receive", substitute "receiving an amount includes a reference to a person receiving". Paragraph 46b (1) (a): After "made" insert "or acquired". Sub-subparagraph 46b (1) (b) (ii) (a): After "made" insert ", or acquired, by the person". Paragraph 46b (1) (c): Omit "becomes entitled to receive", substitute "realises the investment and receives". Subsection 46b (2): Omit "becoming entitled to receive an amount includes a reference to the person becoming entitled to receive", substitute "receiving an amount includes a reference to a person receiving". After section 46b: Insert: SCHEDULE 2—continued Realisation of investment "46ba. For the purposes of section 46b, a person realises an investment if, and only if: (a) all or part of the amount of the investment is withdrawn; or (b) all or part of the return on the investment is paid to another person; or (c) the investment matures; or (d) the investment is assigned by the person to another person; or (e) the investment is disposed of by the person otherwise than in the way referred to in paragraph (d). Receiving by way of a return "46bb. For the purposes of section 46b: (a) where a person assigns or otherwise disposes of an investment, the person is taken to receive by way of a return on the investment the amount of the return at the date of the disposal; and (b) where a person realises an investment in circumstances where the return on the investment is paid to another person, the return is taken to be received by the person realising the investment; and (c) where a person's investment matures, the person is taken to receive by way of return on the investment the amount of the return at the date of the maturity.". Sub-subparagraph 46c (b) (ii) (a): After "made" insert ", or acquired, by the person". Section 46c: After "made" (wherever occurring) insert "or acquired". Section 46d: (a) After "makes" insert "or acquires". (b) After "made" insert "or acquired". Subsection 46g (2): (a) After "making" insert "or acquiring". (b) After "make" insert "or acquire". Section 46j: (a) After "made" insert "or acquired". (b) Add at the end: "(2) For the purposes of subsection (1), a person realises an investment if, any only if: SCHEDULE 2—continued (a) all or part of the amount invested is withdrawn; or (b) all or part of the return on the investment is paid to another person; or (c) the investment matures; or (d) the investment is assigned by the person to another person; or (e) the investment is disposed of by the person otherwise than in the way referred to in paragraph (d). "(3) For the purposes of subsection (1): (a) where a person assigns or otherwise disposes of an investment, the person is taken to receive by way of a return on the investment the amount of the return at the date of the disposal; and (b) where a person realises an investment in circumstances where the return on the investment is paid to another person, the return is taken to be received by the person realising the investment; and (c) where a person's investment matures, the person is taken to receive by way of return on the investment the amount of the return at the date of the maturity.". Paragraph 46k (1) (a): After "made" insert "or acquired". Subsection 46k (1): After "made" (last occurring) insert ", or acquired, by the person". Paragraph 46k (2) (b): After "made" insert ", or acquired, by the person". Section 46l: After "makes" insert "or acquires". Paragraph 46l (a): After "made" insert "or acquired, by the person". Subsection 46p (1): After "made" (second occurring) insert "or acquired". Subsection 46q (2): (a) After "making" insert "or acquiring". (b) After "make" insert "or acquire". After Division 8 of Part III: Insert: SCHEDULE 2—continued "Division 8A—Interest attributed to money not invested or invested at a low rate of interest Application of this Division and Division 8 "46v. If this Division applies to a person's available money or deposit money, Division 8 does not apply to the return on that money. Basic concept—income money and interest received "46w. (1) For the purposes of this Division, a person has income money at a particular time if the sum of: (a) the person's available money; and (b) the person's deposit money; at that time is greater than $2,000. "(2) This is how to work out which money forms part of the person's income money: Method statement Step 1. Start with the amount of $2,000 that is referred to in subsection (1). Step 2. Set off against this amount any available money of the person. Step 3. Set off against the remainder any deposit money of the person that does not attract interest. Step 4. Set off against the remainder any deposit money of the person that does attract interest: this money is to be set off in ascending order of interest rate. Step 5. Any available money or deposit money that can be set off under Steps 2 to 4 is not income money of the person. Step 6. Any available money or deposit money that can not be set off under Steps 2 to 4 is income money of the person at that time. "(3) For the purposes of subsection (2): (a) if available money or deposit money is to be set off against an amount, only so much of the money as does not exceed the amount can be set off against the amount; and (b) if the person does not have money of a particular kind, the amount to be set off is nil and the amount left after the setting off is called the 'remainder'. "(4) For the purposes of this Division, if: (a) interest is paid on deposit money; and SCHEDULE 2—continued (b) the interest is received or accounted for less frequently than the anniversary of the making of the deposit; interest on the deposit money is taken to be received by the depositer on each anniversary of the making of the deposit. Income money that does not attract interest "46x. (1) If: (a) money is income money of a person; and (b) interest is not paid on that money; the person is taken to receive interest on that money at the assumed rate. Note: for 'assumed rate of interest' see section 46za. "(2) Subsection (1) has effect subject to section 46z. Income money that attracts low interest "46y. (1) If: (a) money is income money of a person; and (b) the rate per year at which interest is paid on the money is less than the assumed rate; the person is taken to receive interest on that money at the assumed rate. Note: for 'assumed rate of interest' see section 46ZA. "(2) Subsection (1) has effect subject to section 46z. Certain income money to be disregarded "46z. (1) The Minister may determine that this Division does not apply to: (a) specified income money of a person; or (b) specified income money of a class of persons. "(2) A determination under subsection (1) is to be made by notice in writing. "(3) If: (a) a person has income money; and (b) a determination under subsection (1) applies to the income money; the income money is to be disregarded for the purposes of applying this Division to the person. Assumed rate of interest on income money "46za. The assumed rate of interest is: (a) 10% per year; or SCHEDULE 2—continued (b) if a lower rate is determined under subsection 1099F (2) of the Social Security Act—that lower rate. "Division 8b—Interest attributed to money on loan Application of this Division "46zb. (1) This Division applies to loans by a person entered into, or acquired, by the person after 21 August 1990. "(2) If this Division applies to a person's loan, Division 8 does not apply to the return on the loan. Basic concepts—loan and interest "46zc. For the purposes of this Division: (a) there is a loan by a person if, but not only if, the person has: (i) debentures; or (ii) bonds; or (iii) other securities; and (b) there is no loan by a person: (i) because the person has money in an account with a financial institution; or (ii) because of any entry contribution of the person; and (c) the interest on a loan includes any payment for the use of the money that is lent; and (d) if the interest that is paid on a loan is received or accounted for less frequently than each anniversary of the making of the loan, interest on the loan is taken to be received by the lender on each anniversary of the making of the loan. Loans that do not attract interest "46zd. (1) If: (a) there is a loan by a person; and (b) the person is not paid interest on the loan; the person is taken to receive on each anniversary of the making of the loan interest on the loan at the assumed loan rate. Note: for 'assumed loan rate' see section 46zg. "(2) Subsection (1) has effect subject to section 46zf. Loans that attract a low rate of interest "46ze. (1) If: (a) there is a loan by a person; and SCHEDULE 2—continued (b) the person is paid interest on the loan; and (c) the rate of interest is less than the assumed loan rate; the person is taken to receive interest on the loan at the assumed loan rate. Note: for 'assumed loan rate' see section 46zg. "(2) Subsection (1) has effect subject to section 46zf. Certain loans to be disregarded "46zf. (1) The Minister may determine that this Division does not apply to: (a) a specified loan; or (b) a specified class of loans. "(2) A determination under subsection (1) is to be made by notice in writing. "(3) If: (a) there is a loan by a person; and (b) a determination under subsection (1) applies to the loan; the loan is to be disregarded for the purposes of applying this Division to the person. Assumed loan rate of interest "46zg. The assumed loan rate is: (a) 10% per year; or (b) if a lower rate is determined under subsection 1099l (2) of the Social Security Act—that lower rate. "Division 8C—Income attributed to deprived assets Application of this Division "46zh. This Division applies to dispositions of assets that occur after 21 August 1990. Income attributed to deprived assets "46zj. If: (a) a person disposes of an asset; and (b) the value of the asset is included in the value of the person's assets under section 52g or 52h; the following provisions have effect: (c) the person is taken to obtain income from the asset; and (d) the income is taken to be: (i) interest on the value of the asset at the assumed property rate; or SCHEDULE 2—continued (ii) the amount calculated in accordance with subsection 48d (3); whichever is the higher. Note: for 'assumed property rate' see section 46zk. Assumed property rate "46zk. The assumed property rate is: (a) 10% per year; or (b) if a lower rate is determined under subsection 1099p (2) of the Social Security Act—that lower rate.". Subsection 48 (2): Omit the subsection, substitute: "(2) For the purposes of subsection (1), the value of any granny flat interest of the person is taken not to be consideration received by the person. Note: for 'granny flat interest' see subsection 5l (8a).". Section 49a: Repeal the section, substitute: Earnings credit account "49a. (1) If: (a) a person is receiving a service pension (other than a carer service pension); and (b) either: (i) the person is not a member of a couple; or (ii) the person is a member of a couple and the person's partner is receiving neither a service pension (other than a carer service pension) nor a social security pension (other than a carer pension); the person has an individual earnings credit account. "(2) If: (a) a person is receiving a service pension (other than a carer pension); and (b) the person's partner is receiving a service pension (other than a carer service pension) or a social security pension (other than a carer pension); the person and the partner have a joint earnings credit account. "(3) If at a particular time: (a) subsection (1) ceases to apply to 2 people; and SCHEDULE 2—continued (b) subsection (2) applies to create a joint earnings credit account for them; the balance of the joint earnings credit account at that time is the sum of the balances of their individual accounts immediately before that time. "(4) If at a particular time: (a) subsection (2) ceases to apply to 2 people; and (b) subsection (1) applies to create an individual earnings credit account for either or both of them; the balance of the individual earnings cre