Veterans' Entitlements Act 1986 Section 74 Instructions (17/01/2006) (Cth)

Veterans’ Entitlements Act 1986

Section 74

Instructions

1. I, Peter Martin, Australian Government Actuary, have prepared these Instructions for the purposes of section 74 of the Veterans’ Entitlements Act 1986 (the Act).

Dated this 17^th day of January 2006

Peter Martin

Australian Government Actuary

Rate per fortnight of compensation

1. For the purposes of subsection 74 (3), 74 (3A) or 74 (3B) of the Act (as the case may be), the “rate per fortnight” is determined by the following formula:

Compensation rate ´ Indexation factor

Definitions

1. For the purposes of these Instructions:

“Actuarial factor” means:

(a)        in respect of a male, the figure set out in column 2 of the Actuarial Table opposite the age in column 1 that the person would have been, or would be, on the next birthday after the commencing date;

(b)        in respect of a female, the figure set out in column 3 of the Actuarial Table opposite the age in column 1 that the person would have been, or would be, on the next birthday after the commencing date.

“commencing date” means:

(a)        the earlier date referred to in subsection 74 (3) of the Act; or

(b)        the later day referred to in paragraph 74 (3A) (e) of the Act; or

(c)        the later day referred to in paragraph 74 (3B) (e) of the Act;

as the case may be;

“Compensation rate” is

(a)        in relation to the initial period—the Initial rate;

(b)        in relation to the first six month period after the initial period—the Initial rate;

(c)        in relation to each subsequent six month period—the rate per fortnight for the previous six month period.

“Index factor”, in relation to a relevant period:

(a)        is the number, calculated to 3 decimal places, ascertained by dividing:

(i)         if the relevant period starts between 1 January and 30 June (inclusive)—the index number for the last preceding December quarter; or

(ii)         if the relevant period starts between 1 July and 31 December (inclusive)—the index number for the last preceding June quarter;

by the highest index number in respect of a December or June quarter that preceded that quarter; or

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(b)        if the number so ascertained would, if it were calculated to 4 decimal places, end in a number greater than 4—is the number so ascertained increased by 0.001.

“index number”, has the same meaning as it has in section 198 of the Act.

“indexation day” is 20 March and 20 September of each year.

“Indexation factor” is determined by the following table:

condition	Indexation factor
in respect of the initial period	1
in respect of each six month period after the initial period if the Index factor is less than 1	1
in respect of each six month period after the initial period if the Index factor is equal to or greater than 1	the Index factor

“initial period” means the period beginning on the lump sum date and ending immediately before the next indexation day after the date of the first application of section 74 to the particular case.

“Initial rate” is:

(Lump sum ´ Actuarial factor) ¸ 10,000

“Lump sum” means the amount of the lump sum of compensation in dollars.

“Lump sum date” means the date of payment of compensation.

“relevant period” has the same meaning as it has in section 198 of the Act.

Application

1. This Instruction applies to all matters to which subsection 74 (3), 74 (3A), or 74 (3B) of the Act first applies on and after the date of this Instruction.

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Actuarial Table (based on ALT 2000-2002)

AGE NEXT BIRTHDAY	MALES	FEMALES	AGE NEXT BIRTHDAY	MALES	FEMALES
1	12.824	12.556	47	18.655	17.343
2	12.835	12.565	48	18.977	17.597
3	12.881	12.602	49	19.318	17.865
4	12.931	12.643	50	19.679	18.147
5	12.983	12.685	51	20.062	18.444
6	13.038	12.729	52	20.467	18.757
7	13.095	12.775	53	20.898	19.088
8	13.154	12.822	54	21.354	19.438
9	13.216	12.872	55	21.839	19.807
10	13.281	12.924	56	22.354	20.198
11	13.348	12.977	57	22.901	20.612
12	13.418	13.033	58	23.482	21.052
13	13.491	13.091	59	24.099	21.517
14	13.566	13.151	60	24.757	22.013
15	13.644	13.213	61	25.456	22.540
16	13.725	13.276	62	26.201	23.102
17	13.807	13.342	63	26.994	23.703
18	13.890	13.410	64	27.841	24.346
19	13.973	13.480	65	28.745	25.035
20	14.058	13.553	66	29.712	25.775
21	14.146	13.628	67	30.747	26.571
22	14.238	13.707	68	31.858	27.427
23	14.334	13.788	69	33.050	28.350
24	14.434	13.874	70	34.330	29.344
25	14.538	13.962	71	35.707	30.417
26	14.646	14.055	72	37.187	31.575
27	14.758	14.152	73	38.776	32.825
28	14.875	14.253	74	40.484	34.175
29	14.998	14.358	75	42.319	35.635
30	15.127	14.468	76	44.286	37.223
31	15.262	14.583	77	46.395	38.963
32	15.404	14.703	78	48.654	40.873
33	15.553	14.828	79	51.069	42.963
34	15.710	14.959	80	53.652	45.239
35	15.874	15.095	81	56.445	47.704
36	16.047	15.238	82	59.491	50.364
37	16.228	15.388	83	62.788	53.223
38	16.419	15.544	84	66.293	56.283
39	16.619	15.708	85	69.953	59.548
40	16.830	15.880	86	73.711	63.017
41	17.051	16.059	87	77.514	66.691
42	17.285	16.248	88	81.311	70.567
43	17.530	16.446	89	85.060	74.637
44	17.789	16.654	90	88.729	78.889
45	18.063	16.872	91	92.317	83.299
46	18.351	17.102

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