Veterans' Affairs Legislation Amendment Act 1992 (Cth)

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Veterans’ Affairs Legislation Amendment Act 1992

No. 70 of 1992

TABLE OF PROVISIONS

PART 1-PRELIMINARY

Section

1.

Short title

2.

Commencement

PART 2—AMENDMENTS OF THE DEFENCE SERVICE HOMES ACT 1918

3.

Principal Act

4.

Interpretation

5.

Regular Serviceman

6.

Election to surrender eligible status

7.

Insertion of new section:

4BB. Revocation of election to surrender eligible status

8.

Criteria for issue of certificate of entitlement: advances other than widow or widower advances and advances for essential repairs

9.

Maximum amounts for which subsidy is payable

10.

Defence Service Homes Insurance Trust Account

11.

Certain provisions of agreement not to be revoked or amended

PART 3—AMENDMENTS OF THE SEAMEN’S WAR PENSIONS AND ALLOWANCES ACT 1940

Division 1Preliminary

12.

Principal Act

Division 2Telephone allowance

13.

Insertion of new Part:

TABLE OF PROVISIONS—continued

Section

PART IIIA—TELEPHONE ALLOWANCE

33A. Eligibility for telephone allowance

33B. Telephone allowance not payable in some circumstances

33C. Rate of telephone allowance

33D. Payment by instalments

33E. Calculation of amount of instalment

33F. Adjustment of telephone allowance

Division 3Attendant allowance

14.

Allowance for attendant

Division 4Nomination of bank account etc.

15.

Payment of pensions

16.

Pension or allowance may be paid to bank etc.

Division 5Automatic payment of pension

17.

Insertion of new section:

25A. Certain dependants to be automatically paid pension

18.

Claim for a pension

PART 4—AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986

Division 1Preliminary

19.

Principal Act

Division 2Telephone allowance

20.

Insertion of new Part:

PART VIIB—TELEPHONE ALLOWANCE

Division 1Eligibility for and payability of telephone allowance

118Q. Eligibility for telephone allowance

118R. Telephone allowance not payable in some circumstances

Division 2Rate of telephone allowance

118S. Rate of telephone allowance

Division 3Payment of telephone allowance

118T. Payment by instalments

118U. Calculation of amount of instalment

21.

Insertion of new section:

198F. Indexation of telephone allowance

Division 3Veterans’ Review Board

22.

Parties to review before Board

23.

Procedure of Board

24.

Insertion of new sections:

155AA. Power to dismiss application—initial consideration

155AB. Power to dismiss application—subsequent consideration

25.

Application of sections 155AA and 155AB

TABLE OF PROVISIONS—continued

Section

26.

Insertion of new section:

155AC. Representation of applicant where outcome could be dismissal of application

27.

Application of section 155AC

28.

Review by Administrative Appeals Tribunal

29.

Saving and transitional

30.

Delegation

Division 4Cambodia service

31.

War and operational area related definitions

32.

Qualifying service

33.

Schedule 2

Division 5Automatic payment of pension and funeral benefit

34.

Insertion of new section:

13A. Certain dependants to be automatically paid pension

35.

Claim for a pension

36.

Funeral benefits—veterans

37.

Insertion of new section:

99A. Funeral benefits paid to estate of certain deceased veterans

Division 6Assets test (primary production assets)

38.

Assets test definitions

39.

Effect of charge or encumbrance on value of assets

40.

Insertion of new section:

52CA. Effect of certain liabilities on value of assets used in primary production

Division 7Certain unlisted property trusts

41.

Market-linked investments made or acquired before 9 September 1988

Division 8Special residences and special residents

42.

Income test definitions

43.

Assets test definitions

44.

Retirement villages definitions

45.

Insertion of new sections:

5MA. Granny flat definitions

5MB. Sale leaseback definitions

5MC. Special residence and resident definitions

46.

Determinations having interpretative effect

47.

Certain assets to be disregarded in calculating the value of a person’s assets

48.

Effect of charge or encumbrance on value of assets

49.

Disposal of assets

50.

Repeal of heading and substitution of new heading:

Subdivision CProvisions relating to special residences and special residents

51.

Repeal of section 52K

52.

Basis for different treatment

53.

Entry contribution

54.

Extra allowable amount

55.

Residents who are not members of a couple

56.

Members of couples

57.

Members of illness separated couple (both in special residences)

TABLE OF PROVISIONS—continued

Section

58.

Members of illness separated couple (partner not in special residence and partner property owner)

59.

Members of illness separated couple (partner not in special residence and partner not property owner)

60.

Members of ordinary couple with different principal homes (both in special residences)

61.

Members of ordinary couple with different principal homes (partner not in special residence and partner property owner)

62.

Members of ordinary couple with different principal homes (partner not in special residence and partner not property owner)

63.

Indexed and adjusted amounts

64.

Adjustment of special illness separated special resident AVL

Division 9Remote area allowance

65.

General definitions

66.

Determinations having interpretative effect

67.

Rate of age, invalidity, partner and carer service pension (no dependent children)

68.

Rate of age, invalidity, partner and carer service pension (dependent child or children)

69.

Rate of age and invalidity service pension (blinded veterans)

Division 10Investment income

70.

Investment income definitions

71.

Certain assets to be disregarded in calculating the value of a person’s assets

Division 11Cancellation or suspension determinations

72.

Cancellation or suspension determination—general

73.

Insertion of new section:

56EA. Cancellation or suspension determination for failure to comply with section 54A notice

74.

Resumption of payment after suspension

75.

Date of effect of adverse determination

Division 12Rounding base for income free area

76.

CPI Indexation Table

Division 13Nomination of bank account etc.

77.

Manner of payment

78.

Payment into bank account etc.

79.

Payment of pension

80.

Pension or allowance may be paid to bank etc.

Division14Attendant allowance

81.

Attendant allowance

Division 15—Veterans’ Review Board—term of appointment of full-time members

82.

Terms of appointment

Division 16—Saving and transitional

83.

Certain veterans who are taken to be receiving fringe benefits are eligible for treatment under Part V

84.

Eligibility for treatment at Departmental expense

85.

Certain concessional beneficiaries are eligible for treatment under Part V

TABLE OF PROVISIONS—continued

Section

PART 5—AMENDMENT OF THE VETERANS’ ENTITLEMENTS (REWRITE) TRANSITION ACT 1991

86.

Fringe benefits test—interest attributed to money not invested or invested at a low rate of interest (changes introduced on 1 March 1991)

PART 6—AMENDMENT OF THE NATIONAL HEALTH ACT 1953

87.

Interpretation

PART 7—FURTHER AMENDMENTS

88.

Consequential, minor and technical amendments

SCHEDULE

CONSEQUENTIAL, MINOR AND TECHNICAL AMENDMENTS

PART 1—AMENDMENTS COMMENCING ON ROYAL ASSENT

Defence Force (Home Loans Assistance) Act 1990

Seamen’s War Pensions and Allowances Act 1940

Veterans’ Entitlements Act 1986

PART 2—AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986 COMMENCING 1 JULY 1991, IMMEDIATELY AFTER THE COMMENCEMENT OF THE VETERANS’ ENTITLEMENTS AMENDMENT ACT 1991

PART 3—AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986 COMMENCING 1 JULY 1991, IMMEDIATELY AFTER THE COMMENCEMENT OF SECTION 19 OF THE VETERANS’ ENTITLEMENTS (REWRITE) TRANSITION ACT 1991

PART 4—AMENDMENTS COMMENCING 1 JULY 1991, IMMEDIATELY AFTER THE COMMENCEMENT OF SECTION 22 OF THE VETERANS’ ENTITLEMENTS (REWRITE) TRANSITION ACT 1991

Defence Service Homes Act 1918

Veterans’ Entitlements Act 1986

PART 5—AMENDMENT OF THE VETERANS’ ENTITLEMENTS ACT 1986 COMMENCING 22 MAY 1986, IMMEDIATELY AFTER THE COMMENCEMENT OF THAT ACT

PART 6—AMENDMENT OF THE VETERANS’ ENTITLEMENTS ACT 1986 COMMENCING 23 FEBRUARY 1991

PART 7—AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986 COMMENCING 25 JUNE 1991

PART 8—AMENDMENTS COMMENCING 20 OCTOBER 1991

Income Tax Assessment Act 1936

Public Service Act 1922

PART 9—AMENDMENTS OF THE INCOME TAX ASSESSMENT ACT 1936 COMMENCING 1 JULY 1992

Veterans’ Affairs Legislation Amendment Act 1992

No. 70 of 1992

An Act to amend the law relating to veterans’ affairs, and for related purposes

[Assented to 26 June 1992]

The Parliament of Australia enacts:

PART 1—PRELIMINARY

Short title

1. This Act may be cited as the Veterans’ Affairs Legislation Amendment Act 1992.

Commencement

2.(1) The following provisions commence on the day on which this Act receives the Royal Assent:

(a) Part 1;

  1. (b)

    Part 2;

  2. (c)

    Divisions 1, 3, 4 and 5 of Part 3;

  3. (d)

    Divisions 1, 5, 6, 8, 9, 10, 13, 14 and 15 of Part 4;

  4. (e)

    sections 22, 26, 27 and 29;

  5. (f)

    Part 7;

(g) Part 1 of the Schedule.

(2)

Part 5 of the Schedule is taken to have commenced on 22 May 1986, immediately after the commencement of the Veterans’ Entitlements Act 1986.

(3)

Sections 23, 24, 25, 28 and 30 are taken to have commenced on 8 January 1991, immediately after the commencement of section 85 of the Veterans’ Affairs Legislation Amendment Act 1990.

(4)

Part 6 of the Schedule is taken to have commenced on 23 February 1991.

  1. (5)

    Part 6 is taken to have commenced on 1 March 1991.

(6)

Part 7 of the Schedule is taken to have commenced on 25 June 1991.

(7)

Division 11 of Part 4 and Part 2 of the Schedule are taken to have commenced on 1 July 1991, immediately after the commencement of the Veterans’ Entitlements Amendment Act 1991.

(8)

The following provisions are taken to have commenced on 1 July 1991, immediately after the commencement of section 22 of the Veterans’ Entitlements (Rewrite) Transition Act 1991:

  1. (a)

    Division 12 of Part 4;

  2. (b)

    Part 5;

  3. (c)

    Part 4 of the Schedule.

(9) Division 16 of Part 4 is taken to have commenced immediately after the commencement of Part 5.

(10)

Part 3 of the Schedule is taken to have commenced on 1 July 1991, immediately after the commencement of section 19 of the Veterans’ Entitlements (Rewrite) Transition Act 1991.

(11)

Division 7 of Part 4 is taken to have commenced on 24 July 1991.

(12)

Division 4 of Part 4 and Part 8 of the Schedule are taken to have commenced on 20 October 1991.

  1. (13)

    The following provisions commence on 1 July 1992:

  2. (a)

    Division 2 of Part 3;

  3. (b)

    Division 2 of Part 4;

  4. (c)

    Part 9 of the Schedule.

    PART 2—AMENDMENTS OF THE DEFENCE SERVICE HOMES ACT 1918

Principal Act

3. In this Part, “Principal Act” means the Defence Service Homes Act 19181.

Interpretation

4. Section 4 of the Principal Act is amended by inserting before paragraph (a) of the definition of “reviewable decision” in subsection (1) the following paragraph:

“(aa) under subsection 4BB(2) (revocation of surrender election);”.

Regular Serviceman

5. Section 4AAA of the Principal Act is amended:

  1. (a)

    by inserting in subsection (1) “, subject to subsection (5A),” after “but” (last occurring);

  1. (b)

    by inserting after subsection (5) the following subsections:

    First service after 14 May 1985

    (5A) A person is a regular serviceman for the purposes of this Act if:

    1. (a)

      the person is covered by paragraph (1)(b) or (c); and

      1. (b)

        the person’s first service in the Defence Force began after 14 May 1985; and

      2. (c)

        the person’s death or discharge from the Defence Force occurred before 19 December 1988; and

      3. (d)

        a notice of eligibility or a certificate of eligibility has been issued to the person under this Act or regulations made under this Act.

    “(5B) If a person to whom subsection (5A) applies is dead, the person is taken to have been a regular serviceman immediately before the person’s death.

    Note: this subsection has the effect of making a widow, widower or dependent parent of the person an ‘eligible person’ (see definition of ‘eligible person’ in subsection 4(1)).

    “(5C) Subsections (5A) and (5B) do not apply to a person who is or has been a subsidised borrower under the Home Loans Assistance Act.”.

Election to surrender eligible status

6.

Section 4BA of the Principal Act is amended by omitting from subsection (3) “An” and substituting “Subject to section 4BB, an”.

7.

After section 4BA of the Principal Act the following section is inserted:

Revocation of election to surrender eligible status

Revocation of election before 1 July 1992

4BB.(1) A person who has elected to surrender his or her status as an eligible person under section 4BA may revoke that election (the ‘surrender election’) if:

  1. (a)

    the person is not and has not been a subsidised borrower under the Home Loans Assistance Act; and

  2. (b)

    the person gives the Secretary a written notice stating that the person wishes to revoke his or her surrender election; and

  1. (c)

    the notice is given to the Secretary before 1 July 1992.

Revocation of election before 1 January 1993

(2) A person who has elected to surrender his or her status as an eligible person under section 4BA may revoke that election (the ‘surrender election’) if:

  1. (a)

    the person is not and has not been a subsidised borrower under the Home Loans Assistance Act; and

  2. (b)

    the person gives the Secretary a written notice stating that the person wishes to revoke his or her surrender election; and

  3. (c)

    the notice is given to the Secretary on or after 1 July 1992 and before 1 January 1993; and

  1. (d)

    the person satisfies the Secretary that:

    (i) the person was not aware before 1 July 1992 that the person’s surrender election was revocable; and

    (ii) the person would not have made the surrender election if the person had been aware of the matters announced in the statement made by the Minister on 22 August 1991 relating to pooling of entitlements under this Act.

Date of effect of revocation

(3) If a person’s surrender election is revoked by a notice under subsection (1) or (2), the revocation takes effect on the day on which the notice is given to the Secretary.

“(4) If a person revokes his or her surrender election the Secretary must cause a copy of the notice that revoked the election to be given to the Secretary to the Department of Defence.”.

Criteria for issue of certificate of entitlement: advances other than widow or widower advances and advances for essential repairs

8. Section 18 of the Principal Act is amended:

(a) by omitting from subsection (4) “subsection (5A)” and substituting “subsections (5A), (5AA) and (5AB)”;

(b) by omitting from subsection (4A) “The Secretary” and substituting “Subject to subsections (5A), (5AA) and (5AB), the Secretary”;

  1. (c)

    by omitting from subsection (5) “Subsection (4) does” and substituting “Subsections (4) and (4A) do”;

  1. (d)

    by omitting from subsection (5A) “(g)” and substituting “(k)”;

  2. (e)

    by inserting after subsection (5A) the following subsections:

    “(5AA) The Secretary may issue a certificate of entitlement in relation to subsidy on an initial advance or a further advance for the purposes referred to in paragraphs (2)(f) or (2)(k) if:

    1. (a)

      the person concerned has, under section 4BB, revoked an election to surrender the person’s eligible status; and

    1. (b)

      the Secretary considers that the Secretary:

      (i) would have given consent to the raising of the mortgage, charge or encumbrance had that consent been sought before the mortgage, charge or encumbrance was raised; or

      (ii) would have approved the incurring of the debt had that approval been sought before the debt was incurred.

    “(5AB) The Secretary may issue a certificate of entitlement in relation to subsidy on an initial advance or a further advance for the purposes referred to in paragraph (2)(f) or (2)(k) if at the time when the mortgage, charge or encumbrance was raised or the debt incurred, an advance had already been made, and not fully repaid, in respect of the holding or right of residence concerned.”.

Maximum amounts for which subsidy is payable

9. Section 25 of the Principal Act is amended by inserting after subsection (1) the following subsection:

“(1A) In working out the limit of a person’s last Corporation advance, subsidised advance or contract of sale under paragraph (1)(d), the amount of the person’s last Corporation advance, subsidised advance or contract of sale is taken to include the amount of any additional advance that has subsequently been made to the person.”.

Defence Service Homes Insurance Trust Account

10.(1) Section 40 of the Principal Act is amended by omitting subsections (2) and (3) and substituting the following subsections:

“(2) To that Trust Account there must be credited all payments to the Commonwealth in connection with its activities:

  1. (a)

    as an insurer under this Act, including a payment to it under a contract or arrangement referred to in section 38F; and

  1. (b)

    with respect to insurance, as an agent for an insurer.

“(3) To that Trust Account there must be debited all payments by the Commonwealth in connection with its activities:

(a) as an insurer under this Act, including:

(i) a payment by it under a contract or arrangement referred to in section 38F; and

(ii) a payment by it under section 38G; and

(iii) a payment by it that it is not legally required to make but that is of a kind that would be made by a person carrying on the business of insurance in accordance with sound commercial principles; and

(b) with respect to insurance, as an agent for an insurer.”.

(2) Immediately after the commencement of this section:

  1. (a)

    any amount standing to the credit of the Defence Service Homes Contents Insurance Trust Account is payable to the Defence Service Homes Insurance Trust Account; and

  2. (b)

    the Defence Service Homes Contents Insurance Trust Account is taken to be closed under subsection 62A(4) of the Audit Act 1901; and

  3. (c)

    any investment that was held for the purposes of the Defence Service Homes Contents Insurance Trust Account immediately before the commencement of this section, becomes an investment held for the purposes of the Defence Service Homes Insurance Trust Account.

Certain provisions of agreement not to be revoked or amended

11. Section 45 of the Principal Act is amended by omitting “8.3,”.

PART 3—AMENDMENTS OF THE SEAMEN’S WAR PENSIONS AND ALLOWANCES ACT 1940

Division 1Preliminary

Principal Act

12. In this Part, “Principal Act” means the Seamen’s War Pensions and Allowances Act 19402.

Division 2Telephone allowance

13. After Part III of the Principal Act the following Part is inserted:

“PART IIIA—TELEPHONE ALLOWANCE

Eligibility for telephone allowance

Australian mariners

33A.(1) A person is eligible for a telephone allowance if:

(a) the person is an Australian mariner; and

(b) the person is eligible for a pension:

(i) at a rate worked out under subsection 18(4AA); or

(ii) at a rate worked out under section 22A by reference to section 24, 25 or subsection 27(2) (as far as that subsection relates to items 1 to 8 of the Table in subsection 27(1)) of the Veterans’ Entitlements Act 1986; and

(c) the person is a telephone subscriber.

Note: for ‘telephone subscriber’ see subsection (3).

Widows of Australian mariners

(2) A woman is eligible for a telephone allowance if:

  1. (a)

    she is the widow of a deceased Australian mariner; and

    1. (b)

      she is eligible for a pension at a rate worked out under subsection 18(2); and

  2. (c)

    she is a telephone subscriber.

Note: for ‘telephone subscriber’ see subsection (3).

“(3) In this section:

‘Australian resident’ means a person who:

  1. (a)

    resides in Australia; and

  2. (b)

    is one of the following:

    (i) an Australian citizen;

    (ii) a person who is, within the meaning of the Migration Act 1958, the holder of a valid permanent entry permit;

    (iii) a person who has been granted, or who is included in, a return endorsement, or a resident return visa, in force under that Act;

    (iv) a person who:

    1. (A)

      is, for the purposes of that Act, an exempt non-citizen; and

    1. (B)

      is likely to remain permanently in Australia;

    Note: ‘exempt non-citizen’ is defined in section 4 of the Migration Act 1958: it covers non-citizens who are diplomats, members of armed forces, ships’ crew members and others and, under section 15 of that Act, exempt non-citizens do not need an entry permit or entry visa to enter Australia.

‘telephone subscriber’ means a person:

  1. (a)

    who is an Australian resident; and

    1. (b)

      who has a telephone service connected to a home of the person in Australia; and

  2. (c)

    whose telephone service is connected:

    (i) in that person’s name; or

  1. (ii) in the name of the person’s spouse.

“(4) In deciding for the purposes of this section whether or not a person resides in Australia, regard must be had to:

  1. (a)

    the nature of the accommodation used by the person in Australia; and

  2. (b)

    the nature and extent of the family relationships the person has in Australia; and

  3. (c)

    the nature and extent of the person’s employment, business or financial ties with Australia; and

  4. (d)

    any other matter relevant to determining whether the person intends to remain permanently in Australia.

Telephone allowance not payable in some circumstances

“33B. Even though a person is eligible for a telephone allowance, the allowance is not payable to the person if the person is eligible for a telephone allowance under the Veterans’ Entitlements Act 1986 or receiving a telephone allowance under the Social Security Act 1991.

Rate of telephone allowance

“33C. The rate of telephone allowance is $51.80 per year.

Note: the amount specified in this section is adjusted annually (see section 33F).

Payment by instalments

“33D.(1) A full instalment of telephone allowance is payable to a person on each telephone allowance payday on which:

  1. (a)

    the person is eligible for the allowance; and

  2. (b)

    the allowance is payable to the person.

“(2) In this section:

‘telephone allowance payday’ means the first pension payday that falls on or after:

  1. (a)

    1 January; and

  2. (b)

    20 March; and

  3. (c)

    1 July; and

  4. (d)

    20 September.

Calculation of amount of instalment

“33E.(1) The amount of an instalment of telephone allowance is the amount worked out by dividing the amount of the annual rate of telephone allowance by 4.

“(2) If the amount that is payable to a person on a pension payday is not a multiple of 10 cents, the amount is to be increased to the nearest multiple of 10 cents.

Adjustment of telephone allowance

“33F. This Act has effect as if, on 20 September each year, the amount specified in section 33C were replaced with the amount that is provided for under subsection 118S(1) of the Veterans’ Entitlements Act 1986 on that day.

Note: subsection 118S(1) of the Veterans’ Entitlements Act 1986 specifies the basic rate of telephone allowance for that Act. The amount of that rate is indexed each year on 20 September in line with CPI increases.”.

Division 3Attendant allowance

Allowance for attendant

14. Section 21 of the Principal Act is amended:

  1. (a)

    by inserting in subparagraph (11)(b)(i) “or 56EA” after “56E”;

  2. (b)

    by inserting in subparagraph (11)(b)(i) “, 54A(6)” after “54(6)”;

  3. (c)

    by adding at the end the following subsection:

    “(12) An allowance under this section is not payable to an Australian mariner if a carer pension under Part 2.5 of the Social Security Act 1991:

    1. (a)

      is payable to a person because the person is caring for the Australian mariner; or

    2. (b)

      would be payable to a person because the person is caring for the Australian mariner, apart from action taken in relation to that pension:

      (i) under section 231 or 231A (cancellation or suspension) of that Act because the person has contravened a provision of that Act (other than section 233, 1304 or 1305); or

      (ii) under section 1231 or 1234A (deductions to recover debts and overpayments) of that Act.”.

Division 4Nomination of bank account etc.

Payment of pensions

15. Section 54 of the Principal Act is amended by adding at the end of subsection (4) the following Note:

“Note: for the procedure to be followed if the Commission determines that a person’s pension is to be paid into an account with a bank, credit union or building society see section 54A.”.

Pension or allowance may be paid to bank etc.

16. Section 54A of the Principal Act is amended by inserting after subsection (1) the following subsections:

“(1A) If the person has not nominated an account for the purposes of subsection (1) the amount is not to be paid.

“(1B) If:

(a) an amount has not been paid because of subsection (1A); and

(b) the person nominates an account for the purposes of subsection (1);

the amount is to be paid under subsection (1).”.

Division 5Automatic payment of pension

17. After section 25 of the Principal Act the following section is inserted:

Certain dependants to be automatically paid pension

“25A.(1) If:

  1. (a)

    an Australian mariner dies; and

    1. (b)

      the Australian mariner is survived by a dependant of the deceased mariner; and

    2. (c)

      paragraph 17A(1)(a), (b) or (c) or subsection 17A(3) applies to the mariner;

the pension payable to the dependant in respect of the death of the mariner is payable:

  1. (d)

    without the dependant having to make a claim for the pension under section 26; and

  2. (e)

    without a Pensions Committee or the Commission having to make a determination under section 26AC.

Note: for the dependant’s eligibility for pension see section 17A.

“(2) The pension is payable from and including the day after the mariner died.

Note: for the rate at which the pension is payable to the dependant see section 18.”.

Claim for a pension

18. Section 26 of the Principal Act is amended by adding at the end of subsection (1) the following Notes:

“Note 1: some dependants do not have to make a claim (see section 25A).

Note 2: if it is uncertain whether a person is a dependant and as a result a pension is not payable to the person under section 25A, the person may make a claim for the pension under section 26. A Pensions Committee or the Commission will determine whether the dependant is entitled to be granted a pension (see subsection 26AC(1)).”.

PART 4—AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986

Division 1Preliminary

Principal Act

19. In this Part, “Principal Act” means the Veterans’ Entitlements Act 19863.

Division 2Telephone allowance

20. Before Part VIII of the Principal Act the following Part is inserted:

PART VIIB—TELEPHONE ALLOWANCE

Division 1Eligibility for and payability of telephone allowance

Eligibility for telephone allowance

Service pensioners

118Q.(1) A person is eligible for a telephone allowance if:

  1. (a)

    the person is a service pensioner; and

  2. (b)

    the person is eligible for fringe benefits under section 53A; and

  3. (c)

    the person is a telephone subscriber.

Note 1: for ‘telephone subscriber’ see subsection (4).

Note 2: paragraph (1)(b) extends to a person who is taken to be eligible for fringe benefits because of section 17 of the Veterans’ Entitlements (Rewrite) Transition Act 1991.

Certain Part II and Part IV pensioners

(2) A person is eligible for a telephone allowance if:

(a) the person is eligible for a pension under Part II or Part IV:

(i) at a rate specified in subsection 22(4) (extreme disablement adjustment rate); or

(ii) at the rate specified in section 24 (special rate); or

(iii) the rate of which is increased under subsection 27(2) by an amount specified in any of items 1 to 8 of the Table in subsection 27(1); or

(iv) at the rate specified in subsection 30(1) (certain war widows and war widowers rate); and

(b) the person is a telephone subscriber.

Note 1: for ‘telephone subscriber’ see subsection (4).

Note 2: the rate specified in section 24 is the rate for people to whom section 25 applies (temporary payment at special rate) as well as for people to whom section 24 applies (see subsection 25(2)).

World War 1 veterans

(3) A person is eligible, for a telephone allowance if:

(a) the person is:

(i) a veteran who rendered eligible war service during World War 1; or

(ii) a Commonwealth veteran who rendered continuous full-time service during World War 1; or

(iii) an allied veteran who rendered continuous full-time service during World War 1; and

(b) the person is a telephone subscriber.

Note 1: for ‘telephone subscriber’ see subsection (4).

Note 2: for ‘World War 1’ see subsections 5B(1) and (3).

Note 3: in addition to the categories of eligibility described in subsections (1) to (3), World War 1 Australian mariners may be eligible for telephone allowance under a determination made under subsection 5R(1).

“(4) In this section:

‘telephone subscriber’ means a person:

  1. (a)

    who is an Australian resident; and

    1. (b)

      who has a telephone service connected to a home of the person in Australia; and

  2. (c)

    whose telephone service is connected:

    (i) in that person’s name; or

    (ii) if subparagraph (i) does not apply to the person and the person is a non-illness separated spouse—in the name of the person to whom the person is legally married; or

    (iii) if neither (i) nor (ii) applies to the person and the person is a member of a couple—in the name of the person’s partner.

Note: for ‘Australian resident’ see section 5G.

Telephone allowance not payable in some circumstances

“118R. Even though a person is eligible for a telephone allowance, the allowance is not payable to the person:

  1. (a)

    if the person is receiving a telephone allowance under the Social Security Act or the Seamen’s War Pensions and Allowances Act 1940; or

  1. (b)

    if:

    (i) the person is a service pensioner; and

    (ii) the person is a member of a couple; and

    (iii) the person’s partner is receiving a telephone allowance because of subsection 118Q(3) or a determination under subsection 5R(1).

Note 1: subsection 118Q(3) covers certain categories of World War 1 veterans.

Note 2: the relevant determination under subsection 5R(1) provides eligibility for telephone allowance to certain categories of World War 1 Australian mariners.

Division 2Rate of telephone allowance

Rate of telephone allowance

“118S.(1) Subject to subsections (2) and (3), the rate of telephone allowance is $51.80 per year.

Note: the amount specified in subsection (1) is indexed annually in line with CPI increases under section 198F.

“(2) Subject to subsection (3), the rate of telephone allowance for a person is half the amount of the rate specified in subsection (1) if:

  1. (a)

    the person is a service pensioner; and

  2. (b)

    the person is eligible for fringe benefits under section 53A; and

  3. (c)

    the person is a member of a couple; and

  4. (d)

    the person’s partner is receiving a telephone allowance under:

    (i) this Act; or

    (ii) the Social Security Act; or

    (iii) the Seamen’s War Pensions and Allowances Act 1940; and

(e) the person is living with the person’s partner in the same home.

Note: paragraph (2)(b) extends to a person who is taken to be eligible for fringe benefits because of section 17 of the Veterans’ Entitlements (Rewrite) Transition Act 1991.

“(3) If a person is eligible for a telephone allowance because of subsection 118Q(3) or a determination under subsection 5R(1), the person’s rate of telephone allowance per year is the amount equal to the person’s annual telephone rental charge for one telephone service.

Note 1: subsection 118Q(3) covers certain categories of World War 1 veterans.

Note 2: the relevant determination under subsection 5R(1) provides eligibility for telephone allowance to certain categories of World War 1 Australian mariners.

Division 3Payment of telephone allowance

Payment by instalments

“118T.(1) A full instalment of telephone allowance is payable to a person on each telephone allowance payday on which:

  1. (a)

    the person is eligible for the allowance; and

  2. (b)

    the allowance is payable to the person.

“(2) In this section:

‘telephone allowance payday’ means the first pension payday that falls on or after:

  1. (a)

    1 January; and

  2. (b)

    20 March; and

  3. (c)

    1 July; and

  4. (d)

    20 September.

Calculation of amount of instalment

“118U.(1) The amount of an instalment of telephone allowance is the amount worked out by dividing the amount of the annual rate of telephone allowance by 4.

“(2) If the amount that is payable to a person on a pension payday is not a multiple of 10 cents, the amount is to be increased to the nearest multiple of 10 cents.”.

21. After section 198E of the Principal Act the following section is inserted:

Indexation of telephone allowance

“198F.(1) In this section, unless the contrary intention appears:

‘index number’, in relation to a quarter, means the All Groups Consumer Price Index number, being the weighted average of the 8 capital cities, published by the Australian Statistician for that quarter;

‘relevant rate’ means the rate specified in subsection 118S(1);

‘year to which this section applies’ means:

  1. (a)

    the year commencing on 20 September 1992; or

  2. (b)

    any later year commencing on 20 September.

“(2) Subject to subsection (3), if at any time, whether before or after the commencement of this section, the Australian Statistician has published or publishes an index number in respect of a quarter in substitution for an index number previously published by the Australian Statistician in respect of that quarter, the publication of the later index number is to be disregarded for the purpose of this section.

“(3) If at any time, whether before or after the commencement of this section, the Australian Statistician has changed or changes the reference base for the consumer price index, then, for the purposes of the application of this section after the change took place, or takes place, regard is to be had only to index numbers published in terms of the new reference base.

“(4) Where the factor worked out under subsection (5) in relation to a relevant rate in relation to a year to which this section applies is greater than 1, this Act, and any Act that refers to this Act, have effect as if for that relevant rate there were substituted, on the first day of that year:

(a) subject to paragraph (b)—the rate worked out by multiplying by that factor:

(i) where subparagraph (ii) does not apply—the relevant rate; or

(ii) if, because of another application or other applications of this section, this Act has had effect as if another rate was substituted, or other rates were successively substituted, for the relevant rate—the substituted rate or the last substituted rate, as the case may be; or

(b) where the amount of the rate worked out under paragraph (a) is not a multiple of 80 cents—a rate equal to that amount rounded up to the nearest multiple of 80 cents.

“(5) The factor to be worked out for the purposes of subsection (4) in relation to a year to which this section applies is:

(a) in relation to the year commencing on 20 September 1992 the

number, calculated to 3 decimal places, worked out by dividing the index number for the June quarter 1992 by the index number for the June quarter 1991; or

  1. (b)

    in relation to each subsequent year—the number calculated to 3 decimal places, worked out by dividing the index number for the last preceding June quarter by the highest index number in respect of an earlier June quarter, not being a June quarter that occurred before 1992; or

  2. (c)

    if the number worked out under paragraph (a) or (b) would, if it were calculated to 4 decimal places, end in a number greater than 4—the number so worked out increased by 0.001.

“(6) Where, because of the application of this section, this Act has effect as if another rate were substituted for a relevant rate on the first day of a year to which this section applies, the substitution, in so far as it affects instalments of telephone allowance under this Act, has effect in relation to every instalment of the allowance that falls due on or after the first day of that year.”.

Division 3Veterans’ Review Board

Parties to review before Board

22. Section 147 of the Principal Act is amended by adding at the end of subsection (2) the following Note:

“Note: if the Principal Member gives an applicant a notice under subsection 155AA(4) or 155AB(4) and the applicant wants to be represented by another person in relation to it, the applicant must so authorise the representative in writing after receiving the notice (see section 155AC).”.

Procedure of Board

23.

Section 148 of the Principal Act is amended by omitting subsections (3A), (3B), (3C), (3D) and (3E).

24.

The Principal Act is amended by inserting after section 155 the following sections:

Power to dismiss application—initial consideration

“155AA.(1) In this section:

‘standard review period’, in relation to an application for review, means the period of 2 years after the day on which the application was received at an office of the Department in Australia.

“(2) This section applies to an application for review unless:

  1. (a)

    the hearing of the review has finished within the standard review period; or

  2. (b)

    as at the end of the standard review period, a date, time and place is fixed for the commencement or resumption of the hearing of the review.

“(3) For the purposes of paragraph (2)(a), the hearing of a review is taken to have finished when there are no further submissions to be made to the Board by any of the parties to the review.

“(4) If, at the end of the standard review period:

  1. (a)

    this section applies to an application for review; and

    1. (b)

      the Principal Member considers that the applicant should be ready to proceed at a hearing;

the Principal Member must give a written notice to the applicant requesting the applicant to provide to the Principal Member, within 28 days after receiving the notice;

  1. (c)

    a written statement indicating that the applicant is ready to proceed at a hearing; or

  2. (d)

    a written statement explaining why the applicant is not ready to proceed at a hearing.

“(5) If the applicant does not provide a written statement under paragraph (4)(c) or (d) within the 28 days, the Principal Member must dismiss the application and must notify the applicant and the Commission of the dismissal.

“(6) If:

  1. (a)

    the applicant provides a written statement under paragraph (4)(d) within the 28 days; and

  2. (b)

    the Principal Member considers that the statement contains a reasonable explanation for the applicant’s failure to be ready to proceed at a hearing;

the Principal Member must notify the applicant and the Commission of this.

“(7) If:

  1. (a)

    the applicant provides a written statement under paragraph (4)(d) within the 28 days; and

  2. (b)

    the Principal Member considers that the statement does not contain a reasonable explanation for the applicant’s failure to be ready to proceed at a hearing;

the Principal Member must dismiss the application and must notify the applicant and the Commission of the dismissal.

Power to dismiss application—subsequent consideration

“155AB.(1) In this section:

‘extended review period’, in relation to an extension notice, means the period of 3 months after the day on which the Principal Member has given the extension notice to the applicant for review;

‘extension notice’ means a notice under subsection 155AA(6) or subsection (6) of this section.

“(2) If the Principal Member has given an applicant for review an extension notice, this section applies to that application unless:

  1. (a)

    the hearing of the review has finished within the extended review period; or

  2. (b)

    as at the end of the extended review period, a date, time and place is fixed for the commencement or resumption of the hearing of the review.

“(3) For the purposes of paragraph (2)(a), the hearing of a review is taken to have finished when there are no further submissions to be made to the Board by any of the parties to the review.

“(4) If this section applies to an application for review at the end of the extended review period, the Principal Member must give a written notice to the applicant requesting the applicant to provide to the Principal Member, within 28 days after receiving the notice:

  1. (a)

    a written statement indicating that the applicant is ready to proceed at a hearing; or

  2. (b)

    a written statement explaining why the applicant is not ready to proceed at a hearing.

“(5) If the applicant does not provide a written statement under paragraph (4)(a) or (b) within the 28 days, the Principal Member must dismiss the application and must notify the applicant and the Commission of the dismissal.

“(6) If:

  1. (a)

    the applicant provides a written statement under paragraph (4)(b) within the 28 days; and

  2. (b)

    the Principal Member considers that the statement contains a reasonable explanation for the applicant’s failure to be ready to proceed at a hearing;

the Principal Member must notify the applicant and the Commission of this.

“(7) If:

  1. (a)

    the applicant provides a written statement under paragraph (4)(b) within the 28 days; and

  2. (b)

    the Principal Member considers that the statement does not contain a reasonable explanation for the applicant’s failure to be ready to proceed at a hearing;

the Principal Member must dismiss the application and must notify the applicant and the Commission of the dismissal.”.

Application of sections 155AA and 155AB

25. Sections 155AA and 155AB of the Principal Act apply to applications for review lodged before, on or after the commencement of those sections.

26. The Principal Act is amended by inserting after section 155AB the following section:

Representation of applicant where outcome could be dismissal of application

“155AC.(1) An applicant for review may authorise another person to represent the applicant in relation to a notice under subsection 155AA(4)or 155AB(4).

“(2) An authorisation under subsection (1) must be in writing.

“(3) The applicant may authorise the representative only after the applicant has received the notice.

“(4) If the Principal Member has approved a form for the purposes of subsection (1), the applicant must authorise the representative in that form.

“(5) If the applicant does authorise a representative, the representation is to be at the applicant’s own expense.”.

Application of section 155AC

27.(1) Subsections 155AC(1) and 155AC(5) apply to notices under subsection 155AA(4) or 155AB(4) given by the Principal Member before, on or after the day on which this Act receives the Royal Assent.

(2) Subsections 155AC(2), 155AC(3)and 155AC(4) apply to notices under subsection 155AA(4) or 155AB(4) given by the Principal Member on or after the day on which this Act receives the Royal Assent.

Review by Administrative Appeals Tribunal

28. Section 155A of the Principal Act is amended:

  1. (a)

    by omitting from paragraph (1)(a) “subsection 148(3B)” and substituting “subsection 155AA(5) or 155AB(5)”;

  2. (b)

    by omitting from paragraph (1)(b) “paragraph 148(3C)(b)” and substituting “paragraph 155AA(6)(b) or 155AB(6)(b)”;

  3. (c)

    by omitting from paragraph (1)(c) “paragraph 148(3D)(b)” and substituting “paragraph 155AA(7)(b) or 155AB(7)(b)”.

Saving and transitional

29.(1) In this section:

“transition day” means 8 January 1991, immediately after the commencement of section 85 of the Veterans’ Affairs Legislation Amendment Act 1990.

(2) If the Principal Member has given a notice to an applicant in purported reliance on subsection 148(3A) of the Principal Act as in force immediately before the transition day, the notice has effect as if it were a notice given under subsection 155AA(4) of the Principal Act.

(3)

If the Principal Member has given a notice to an applicant in purported reliance on subsection 148(3E) of the Principal Act as in force immediately before the transition day, the notice has effect as if it were a notice given under subsection 155AB(4) of the Principal Act.

  1. (4)

    If:

    1. (a)

      the Principal Member has given a notice to an applicant in purported reliance on section 148 of the Principal Act as in force immediately before the transition day; and

    2. (b)

      the applicant has provided a written statement in purported reliance on that section as in force immediately before that day;

the written statement has effect as if it were given under section 155AA or 155AB, as the case requires, of the Principal Act.

Delegation

30. Section 166 of the Principal Act is amended by inserting after subsection (1) the following subsection:

“(1A) The Principal Member may, by writing signed by him or her, also delegate all or any of his or her powers under section 155AA or 155AB to a registrar or a deputy registrar.”.

Division 4Cambodia service

War and operational area related definitions

31. Section 5B of the Principal Act is amended by omitting from paragraph (2)(b) “or 11” and substituting “, 11 or 12”.

Qualifying service

32. Section 7A of the Principal Act is amended by omitting from subparagraph 7A(1)(a)(iii) “or 11” and substituting “, 11 or 12”.

Schedule 2

33. Schedule 2 to the Principal Act is amended by adding at the end the following item:

“12. The area comprising Cambodia

The period from and including 20 October 1991”.

Division 5Automatic payment of pension and funeral benefits

34. After section 13 of the Principal Act the following section is inserted in Division 3 of Part II:

Certain dependants to be automatically paid pension

“13A.(1) If:

  1. (a)

    a veteran dies; and

    1. (b)

      the veteran is survived by a dependant of the deceased veteran; and

(c) the veteran:

(i) was, immediately before the veteran’s death, a veteran to whom subsection 22(4) or section 24 applied; or

(ii) was, immediately before the veteran’s death, a veteran to whom section 22, 23 or 25 applied who was in receipt of a pension the rate of which had been increased under subsection 27(2) by an amount specified in any of items 1 to 8 of the Table in subsection 27(1); or

(iii) is a veteran to whom subsection 13(3) applies;

the pension payable to the dependant in respect of the death of the veteran is payable:

  1. (d)

    without the dependant having to make a claim for the pension under section 14; and

  2. (e)

    without the Commission having to make a determination under section 19.

Note: for the dependant’s eligibility for pension see subsection 13(2).

“(2) The pension is payable from and including the day after the veteran died.

Note: for the rate at which the pension is payable to the dependant see section 30.”.

Claim for a pension

35. Section 14 of the Principal Act is amended by adding at the end of subsection (1) the following Notes:

“Note 1: some dependants do not have to make a claim (see section 13A).

Note 2: if it is uncertain whether a person is a dependant and as a result a pension is not payable to the person under section 13A, the person may make a claim for the pension under section 14. The Commission will determine whether the person is entitled to be granted a pension (see subsection 19(3)).”.

Funeral benefits—veterans

36.

Section 99 of the Principal Act is amended by omitting paragraphs (1)(b) and (c).

37.

After section 99 of the Principal Act the following section is inserted:

Funeral benefits paid to estate of certain deceased veterans

“99A.(1) The Commission is to grant a benefit, called a funeral benefit, to the estate of a deceased veteran if:

  1. (a)

    the veteran, immediately before his or her death, was being paid a pension under Part II as a veteran to whom section 24 applied; or

  2. (b)

    the veteran, immediately before his or her death, was being paid a pension under Part II at a rate that had been increased under section 27 by reason that the veteran was incapacitated

    from a war-caused injury or a war-caused disease of a kind described in items 1 to 8 of the Table in subsection 27(1).

“(2) The amount of the funeral benefit is $550.”.

Division 6Assets test (primary production assets)

Assets test definitions

38. Section 5L of the Principal Act is amended:

(a) by inserting in subsection (1) the following definitions:

‘family member’, in relation to a person, means:

  1. (a)

    the partner, father or mother of the person; or

  2. (b)

    a sister, brother or child of the person; or

    1. (c)

      another person who, in the Commission’s opinion, should be treated for the purposes of this definition as one of the person’s relations described in paragraph (a) or (b);

‘fishing operations’ means:

  1. (a)

    operations relating directly to the taking or catching of fish, turtles, crustacea, oysters or other shellfish; or

  1. (b)

    oyster farming; or

(c) pearling operations;

but does not include:

(d) whaling; or

(e) operations conducted otherwise than for the purposes of a business;

‘forest operations’ means:

  1. (a)

    the planting or tending in a plantation or forest of trees intended for felling; or

  1. (b)

    the felling of trees in a plantation or forest;

but does not include operations conducted otherwise than for the purposes of a business;

‘primary producer’ means a person whose principal occupation is primary production;

‘primary production’ means production resulting directly from:

  1. (a)

    the cultivation of land; or

    1. (b)

      the maintenance of animals or poultry for the purpose of selling them or their bodily produce, including natural increase; or

  2. (c)

    fishing operations; or

  3. (d)

    forest operations;

and includes the manufacture of dairy produce by the person who produced the raw material used in that manufacture;”;

(b) by inserting after subsection (3) the following subsection:

“(3A) A reference in this Act to the value of a liability of a

person is, if the liability is shared by the person with another person, a reference to the value of the person’s share of the liability.”.

Effect of charge or encumbrance on value of assets

39. Section 52C of the Principal Act is amended:

(a) by adding at the end of subsection (1) the following Note:

“Note: this section does not apply to an asset to which section 52CA (primary production assets) applies.”.

(b) by omitting subsection (2) and substituting the following subsection:

“(2) Subsection (1) does not apply to a charge or encumbrance over an asset of a person to the extent that:

  1. (a)

    the charge or encumbrance is a collateral security; or

    1. (b)

      the charge or encumbrance was given for the benefit of a person other than the person or the person’s partner.”;

(c) by omitting subsection (5).

40. After section 52C of the Principal Act the following section is inserted:

Effect of certain liabilities on value of assets used in primary production

“52CA.(1) For the purposes of working out the value of a person’s assets under this Act, if:

(a) the person is:

(i) a primary producer; or

(ii) a family member of a primary producer; and

  1. (b)

    the person has assets (including real property) that are, in the Commission’s opinion, used for the purposes of carrying on that primary production; and

  2. (c)

    the person also has liabilities that are, in the Commission’s opinion, related to the carrying on of the primary production;

then:

  1. (d)

    section 52C does not apply in relation to the assets referred to in paragraph (b); and

  2. (e)

    those assets are taken to be a single asset (the ‘primary production asset’); and

  3. (f)

    the value of that single asset is worked out under subsection (2).

Note: for ‘family member’ see subsection 5L(1).

“(2) The value of a person’s primary production asset is worked out in the following way:

Method statement

Step 1.

Add together the value of the assets referred to in paragraph (1)(b): the result is called the unencumbered value.

Step 2.

Add together the value of the liabilities referred to in paragraph (1)(c): the result is called the total liability.

Step 3.

Take the total liability away from the unencumbered value: the result is the value of the person’s primary production asset.

“(3) If the result under Step 3 of the Method statement is less than nil, the value of the primary production asset is taken to be nil.”.

Division 7Certain unlisted property trusts

Market-linked investments made or acquired before 9 September 1988

41. Section 46J of the Principal Act is amended:

  1. (a)

    by omitting from subsection (1) “If” and substituting “Subject to subsection (4), if”;

  1. (b)

    by adding at the end the following subsections:

    “(4) This section does not apply to the realisation of a person’s market-linked investment if:

    1. (a)

      the investment is in a public unit trust; and

    2. (b)

      the trust is a property trust; and

    3. (c)

      the trust is not listed on a stock exchange; and

      1. (d)

        the person made or acquired the investment before 9 September 1988; and

      2. (e)

        the investment is realised on or after 24 July 1991 and before 23 July 1992; and

      (f) the investment is realised due to a restructuring of the trust.

    “(5) For the purposes of paragraph (4)(f), a person’s investment is realised due to a restructuring if:

    1. (a)

      in realising the investment the person exchanges the investment for an investment in another public unit trust that is a property trust; and

    2. (b)

      the same manager manages both the investments referred to in paragraph (a).”.

Division 8Special residences and special residents

Income test definitions

42. Section 5H of the Principal Act is amended by adding at the end of subsection (8) the following paragraph:

“; (zk) an amount paid by a buyer under a sale leaseback agreement.”.

Assets test definitions

43. Section 5L of the Principal Act is amended:

  1. (a)

    by omitting from subsection (1) the definition of “granny flat interest”;

  2. (b)

    by omitting from the Note to subsection (1) “52K-52X (retirement villages)” and substituting “52KA-52X (special residences)”;

  3. (c)

    by omitting subparagraph (4)(a)(ii) and substituting the following subparagraph:

    “(ii) the person’s right or interest in the home gives the person reasonable security of tenure in the home; and”;

(d) by omitting subparagraph (4)(b)(ii) and substituting the following subparagraph:

“(ii) the person’s right or interest, or the partner’s right or interest, in the home gives the person, or the person’s partner, reasonable security of tenure in the home; and”;

(e) by omitting the Note to subsection (4) and substituting the following Note:

“Note: see also sections 52KA-52X (special residences).”;

(f) by omitting subsection (8A).

Retirement villages definitions

44. Section 5M of the Principal Act is amended:

  1. (a)

    by omitting from subsection (1) the definition of “actual value”;

  2. (b)

    by inserting in subsection (1) the following definition:

    ‘retirement village resident’ has the meaning given by subsection (5).”;

    (c) by omitting subsections (5) and (6) and substituting the following subsection:

    “(5) A person is a retirement village resident if the person’s principal home is in a retirement village.”.

45. After section 5M of the Principal Act the following sections are inserted:

Granny flat definitions

“5MA.(1) In this Act, unless the contrary intention appears:

‘granny flat interest’ has the meaning given by subsection (2);

‘granny flat resident’ has the meaning given by subsection (3).

“(2) A person has a granny flat interest in the person’s principal home if:

  1. (a)

    the residence that is the person’s principal home is a private residence; and

  2. (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.

“(3) A person is a granny flat resident if the person has a granny flat interest in the person’s principal home.

Sale leaseback definitions

“5MB.(1) In this Act, unless the contrary intention appears:

‘deferred payment amount’ has the meaning given by subsections (6), (7) and (8);

‘initial payment amount’ has the meaning given by subsections (4) and (5);

‘sale leaseback agreement’ has the meaning given by subsections (2) and (3);

‘sale leaseback home’ has the meaning given by subsection (9);

‘sale leaseback resident’ has the meaning given by subsections (10) and (11).

“(2) An agreement is a sale leaseback agreement, in relation to a person, if:

  1. (a)

    under the agreement the person agrees to sell his or her principal home; and

  2. (b)

    the residence that is the person’s principal home is a private residence; and

  3. (c)

    under the agreement the person retains a right to accommodation in the residence; and

  4. (d)

    under the agreement the buyer is to pay an amount when the person vacates the residence or when the person dies.

“(3) An agreement is a sale leaseback agreement for the purposes of this Act if the agreement is an agreement in respect of which a determination under subsection 5R(14) is in force.

“(4) The initial payment amount, in relation to a sale leaseback agreement, is the amount that the Commission determines to be the

initial amount that the buyer is to pay under the sale leaseback agreement.

“(5) In making the determination the Commission is to have regard to the following:

  1. (a)

    the consideration to be provided by the parties to the sale leaseback agreement;

  1. (b)

    when that consideration is to be provided;

    1. (c)

      the payments that are to be made under the sale leaseback agreement;

  2. (d)

    when those payments are to be made;

  3. (e)

    any other relevant matters.

“(6) The deferred payment amount, in relation to a sale leaseback agreement, is the total amount to be paid by the buyer under the sale leaseback agreement less the initial payment amount.

“(7) If the Commission considers that, for any special reason in a particular case, the deferred payment amount should be another amount, the deferred payment amount is that other amount.

Note: sections 52E to 52J (disposal of assets) may be relevant to working out the deferred payment amount.

“(8) Without limiting subsection (7), the Commission may consider that the deferred payment amount should be another amount if:

  1. (a)

    the parties to the sale leaseback agreement are not at arm’s length; or

  2. (b)

    the parties to the sale leaseback agreement have undervalued the sale leaseback home so as to reduce the total amount to be paid by the buyer under the agreement.

“(9) A residence is a sale leaseback home if the residence is subject to a sale leaseback agreement.

“(10) A person is a sale leaseback resident if:

  1. (a)

    the person’s principal home is subject to a sale leaseback agreement; and

  1. (b)

    the person is a party to the sale leaseback agreement.

“(11) If a person is a member of a couple, the person is a sale leaseback resident if:

  1. (a)

    the person lives in the sale leaseback home; and

  2. (b)

    the person’s partner is a sale leaseback resident.

    Note: subsection (11) will only be used if a person is not a sale leaseback resident under subsection (10).

Special residence and resident definitions

“5MC.(1) In this Act, unless the contrary intention appears:

‘actual value’ has the meaning given by subsection (4);

‘special residence’ has the meaning given by subsection (2);

‘special resident’ has the meaning given by subsection (3).

“(2) A residence is a special residence if the residence is:

  1. (a)

    in a retirement village; or

  2. (b)

    a granny flat; or

  3. (c)

    a sale leaseback home.

“(3) A person is a special resident if the person is:

  1. (a)

    a retirement village resident; or

  2. (b)

    a granny flat resident; or

  3. (c)

    a sale leaseback resident.

“(4) In Subdivision C of Division 14 (sections 52KA to 52X), a reference to the actual value of the assets of a member of a couple is a reference to the value of the assets that are actually assets of the person rather than the person’s partner, that is, the value that would be the value of the person’s assets apart from the couple’s assets deeming provisions.

“(5) In subsection (4):

‘couple’s assets deeming provisions’ means:

  1. (a)

    Service Pension Rate Calculator Where There Are No Dependent Children (point 41-F2); and

  2. (b)

    Service Pension Rate Calculator Where There Are Dependent Children (point 42-G2); and

  3. (c)

    Service Pension Rate Calculator for Widows, Widowers and Non-illness Separated Spouses (point 44-F2).”.

Determinations having interpretative effect

46. Section 5R of the Principal Act is amended by adding at the end the following subsections:

Sale leaseback agreement determination

(14) The Commission may determine that an agreement is a sale leaseback agreement if the Commission is satisfied that the agreement is substantially similar in its effect to an agreement referred to in subsection 5MB(2).

“(15) The determination must be in writing.”.

Certain assets to be disregarded in calculating the value of a person’s assets

47. Section 52 is amended:

(a) by omitting from subparagraph (1)(a)(i) “and”;

  1. (b)

    by omitting subparagraph (1)(a)(ii);

  2. (c)

    by omitting from subparagraph (1)(b)(i) “and”;

  3. (d)

    by omitting subparagraph (1)(b)(ii);

  4. (e)

    by inserting after paragraph (1)(fa) the following paragraphs:

    “(fb) if:

    (i) the person has a granny flat interest in the person’s principal home; and

    (ii) the person is a person to whom subsection 52Q(2), 52R(2), 52S(2), 52S(5), 52T(2), 52U(2) or 52V(2) applies;

    the value of the granny flat interest;

    Note: a person described in subparagraph (ii) will have acquired or retained the granny flat interest on or after 22 August 1990 (see section 52KA).

    (fc) if:

    (i) the person is a sale leaseback resident; and

    (ii) the person is a person to whom subsection 52Q(2), 52R(2), 52S(2), 52S(5), 52T(2), 52U(2) or 52V(2) applies;

    the value of any right or interest of the person in the sale leaseback home;”;

    (f) by omitting from subsection (4) “52K to 52X (retirement villages)” and substituting “52KA to 52X (special residences)”.

Effect of charge or encumbrance on value of assets

48. Section 52C of the Principal Act is amended by omitting from subsection (6) “sections 52K to 52X (retirement villages)” and substituting “sections 52KA to 52X (special residences)”.

Disposal of assets

49.

Section 52E of the Principal Act is amended by omitting from the Note to subsection (2) “5L(8A)” and substituting “5MA(2)”.

50.

Defence Service Homes Act 1918

Subsection 4(1) (subparagraphs (g)(i) and (ii) of the definition of “Australian Soldier”):

Omit “5(12)”, substitute “5B(2)”.

SCHEDULE— continued

Paragraph 4(2)(a):

Omit “5(12)”, substitute “5B(2)”.

Veterans’ Entitlements Act 1986

Subsection 46W(1):

Add at the end:

“Note: for ‘available money’ and ‘deposit money’ (see subsection 5H(1)).

(1A) For the purposes of this section:

  1. (a)

    ‘available money’ does not include money specified in a determination under section 46Z; and

  2. (b)

    ‘deposit money’ does not include money specified in a determination under section 46Z.”.

Subsection 46X(2):

Omit the subsection.

Subsection 46Y(2):

Omit the subsection.

Section 46Z:

Repeal the section, substitute:

Certain money to be disregarded

“46Z.(1) The Minister may determine that:

  1. (a)

    specified money of a person; or

  2. (b)

    specified money of a class of persons;

is to be disregarded in calculating a person’s available money or a person’s deposit money for the purposes of section 46W.

“(2) The determination is to be in writing.

“(3) The determination takes effect on the day on which the determination was made or on such later day or earlier day as is specified in the determination.”.

Subsection 46ZD(2):

Omit the subsection.

Subsection 46ZE(2):

Omit the subsection.

Section 46ZF:

Repeal the section, substitute:

SCHEDULE— continued

Certain loans to be disregarded

“46ZF.(1) The Minister may determine that:

  1. (a)

    specified loans; or

  2. (b)

    a specified class of loans;

are to be disregarded for the purposes of sections 46ZD and 46ZE.

“(2) The determination is to be in writing.

“(3) The determination takes effect on the day on which the determination was made or on such later day or earlier day as is specified in the determination.”.

PART 5—AMENDMENT OF THE VETERANS’ ENTITLEMENTS ACT 1986 COMMENCING 22 MAY 1986, IMMEDIATELY AFTER THE COMMENCEMENT OF THAT ACT

Paragraph 6(1)(e):

After “person” (last occurring) insert “or the unit”.

PART 6—AMENDMENT OF THE VETERANS’ ENTITLEMENTS ACT 1986 COMMENCING 23 FEBRUARY 1991

Subparagraph 7A(1)(a)(iii):

Omit “or 10”, substitute “, 10 or 11”.

PART 7—AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986 COMMENCING 25 JUNE 1991

Paragraph 74(3)(a):

After “(3A)(a)”, insert “or (3B)(a)”.

After subsection 74(3A):

Insert:

“(3B) In this section, if:

(a) a lump sum payment is made under section 30 of the Commonwealth Employees’ Rehabilitation and Compensation Act 1988 to a person who is:

(i) a member of the Forces or a member of a Peacekeeping Force, in respect of the incapacity of the member from injury or disease; or

(ii) a dependant of a member of the Forces or of a member of a Peacekeeping Force, in respect of the death of the member from injury or disease; and

SCHEDULE— continued

(b) that person is in receipt of, or is subsequently granted, a pension under this Part in respect of that incapacity or death;

the person is taken to have been, or to be, in receipt of payments of compensation:

  1. (c)

    that is determined by, or under the instructions of, the Commonwealth Actuary to be equivalent to the amount of that lump sum payment; and

  2. (d)

    at the rate per fortnight determined by, or under the instructions of, the Commonwealth Actuary for the period until the person reaches 65; and

  1. (e)

    beginning:

    (i) on the day that the lump sum payment is made to that person; or

    (ii) on the day the pension becomes payable to the person; whichever is the later day.”.

PART 8—AMENDMENTS COMMENCING 20 OCTOBER 1991

Income Tax Assessment Act 1936

Paragraph 23AB(5)(c):

Omit “or 11”, substitute “, 11 or 12”.

Public Service Act 1922

Subsection 7(1) (definition of “Returned Soldier”):

Omit “or 11”, substitute “, 11 or 12”.

PART 9—AMENDMENTS OF THE INCOME TAX ASSESSMENT ACT 1936 COMMENCING 1 JULY 1992

Section 24AC (Index—after the entry for special assistance):

Insert:

“Telephone allowance 24ACWA”.

After section 24ACW:

Insert:

Telephone allowance

“24ACWA. Payments under Part VIIB of the Veterans’ Entitlements Act 1986 are exempt.”.

NOTES

  1. 1.

    No. 43, 1918, as amended. For previous amendments, see No. 28, 1919; No. 35, 1920; No. 18, 1923; No. 26, 1925; No. 47, 1926; No. 17, 1927; No. 13, 1929; Nos. 6 and 68, 1932; No. 63, 1934; No. 54, 1935; No. 25, 1937; No. 1, 1941; No. 8, 1946; Nos. 1, 38 and 71, 1947; No. 67, 1948; No. 24, 1949; No. 74, 1951; No. 69, 1954; No. 69, 1955; No. 100, 1956; No. 73, 1961; Nos. 2 and 93, 1962; Nos. 65 and 93, 1966; No. 3, 1967; No. 99, 1968; No. 120, 1971; Nos. 31 and 216, 1973; No. 125, 1974; No. 25, 1975; No. 185, 1976; No. 79, 1977; Nos. 36 and 137, 1978; Nos. 4 and 128, 1980; No. 80, 1982; No. 70, 1983; No. 72, 1984; Nos. 28 and 29, 1986; No. 124, 1988; Nos. 86 and 93, 1989; and Nos. 2, 14, 73, 74 and 208, 1991.

  2. 2.

    No. 60, 1940, as amended. For previous amendments, see No. 77, 1946; No. 80, 1950; Nos. 17 and 75, 1952; No. 70, 1953; No. 32, 1954; No. 40, 1955; No. 45, 1957; No. 48, 1958; No. 59, 1959; No. 46, 1960; No. 47, 1961; Nos. 64 and 113, 1964; No. 65, 1965; No. 43, 1966; No. 102, 1967; No. 67, 1968; No. 96, 1969; No. 61, 1970; Nos. 18 and 69, 1971; Nos. 16 and 83, 1972; Nos. 6 and 106, 1973; Nos. 4, 25 and 90, 1974; Nos. 35 and 111, 1975; Nos. 27, 91 and 112, 1976; No. 56, 1977; No. 129, 1978; Nos. 18 and 124, 1979; No. 129, 1980; No. 160, 1981; Nos. 80 and 100, 1982; No. 70, 1983; Nos. 93 and 97, 1984; Nos. 90, 95 and 127, 1985; Nos. 28, 29 and 106, 1986; Nos. 78, 88 and 130, 1987; Nos. 35 and 134, 1988; Nos. 163 and 164, 1989; No. 119, 1990; and Nos. 2, 70 and 73, 1991.

  3. 3.

    No. 27, 1986, as amended. For previous amendments, see Nos. 106 and 130, 1986; Nos. 78, 88 and 130, 1987; Nos. 13, 35, 75, 99, 134 and 135, 1988; Nos. 59, 83, 84, 93, 163 and 164, 1989; Nos. 56, 84 and 119, 1990; Nos. 2, 72, 73, 74 and 208, 1991; and Nos. 12 and 51, 1992.

4.

No. 73, 1991, as amended. For previous amendments, see No. 74, 1991.

  1. 5.

    No. 95, 1953, as amended. For previous amendments, see No. 68, 1955; Nos. 55 and 95, 1956; No. 92, 1957; No. 68, 1958; No. 72, 1959; No. 16, 1961; No. 82, 1962; No. 77, 1963; No. 37, 1964; Nos. 100, and 146, 1965; No. 44, 1966; Nos. 14 and 100, 1967; No. 100, 1968; No. 102, 1969; No. 41, 1970; No. 85, 1971; No. 114, 1972; Nos. 49 and 202, 1973; No. 37, 1974; Nos. 1, 13 and 93, 1975; Nos. 1, 60, 91, 99, 108, 157 and 177, 1976; Nos. 98 and 100, 1977; Nos. 36, 88, 132 and 189, 1978; Nos. 54, 91 and 122, 1979; Nos. 117 and 131, 1980; Nos. 40, 74, 92, 118, 163 and 176, 1981; Nos. 49, 80 and 112, 1982; Nos. 35, 54 and 139, 1983; Nos. 46, 63, 72, 120, 135 and 165, 1984; Nos. 24, 53, 65, 70, 95, 127 and 167, 1985; Nos. 28, 75, 94 and 115, 1986; Nos. 22, 44, 72, 118, 131 and 132, 1987; Nos. 79, 87, 99 and 155, 1988; No. 95, 1989; Nos. 3, 84, 106 and 141, 1990; Nos. 6, 68, 70, 73, 83, 84, 115, 116, 119, 122, 141, 169, 175, 208 and 211, 1991.

    [Minister’s second reading speech made in

    House of Representatives on 7 May 1992

    Senate on 28 May 1992

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