Veterans' Entitlements Amendment Act 1991 (Cth)

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Veterans’ Entitlements Amendment Act 1991

No. 72 of 1991

TABLE OF PROVISIONS

Section

1.

Short title

2.

Commencement

3.

Repeal of section 5 and substitution of new sections:

5.

Index of definitions

5a.

Repatriation Commission definitions

5b.

War and operational area related definitions

Allotted for duty

End of World War 1 and 2

5c.

Eligibility related definitions

5d.

Injury/disease definitions

5e.

Family relationships definitions—couples

5f.

Family relationships definitions—children

5g.

Australian residence definitions

5h.

Income test definitions

5j.

Investment income definitions

5k.

Maintenance income definitions

5l.

Assets test definitions

5m.

Retirement villages definitions

5n.

Rent definitions

5p.

Bereavement definitions

5q.

General definitions

5r.

Determinations having interpretative effect

Continuous full-time service determination; member of unit of Defence Force determination

Allied veteran determination

Person may be treated as not being a member of a couple determination

Illness separated couple determination

Respite care couple determination

Approved respite care determination

TABLE OF PROVISIONS—continued

Section

Prescribed student child determination.

5s.

Date of effect of determination granting pension or allowance

4.

Insertion of new section:

7a.

Qualifying service

5.

Repeal of Part III and substitution of new Part:

PART III—SERVICE PENSIONS

Division 1General features

35.

Order of provisions and structure of Divisions

35a.

Eligibility for and payability of service pension

Division 2Claim for qualifying service

Subdivision AClaim

35b.

Need for a claim

35c.

Who can claim?

35d.

Form of claim

35e.

Lodgment of claim

35f.

Withdrawal of claim

Subdivision BInvestigation of claim

35g.

Secretary to investigate claim and submit it to Commission

Subdivision CConsideration and determination of claim

35h.

Duties of Commission in relation to claim

35j.

Determination of qualifying service to be proof of qualifying service

Division 3Age service pension

Subdivision AEligibility for and payability of age service pension

36.

Eligibility for age service pension

36a.

Age service pension may not be payable in some circumstances

36b.

Age service pension generally not payable before claim

36c.

Restrictions on dual pensions

Subdivision BClaim for age service pension

36d.

Need for a claim

36e.

Who can claim?

36f.

Form of claim

36g.

Lodgment of claim

36h.

Claimant must be Australian resident and in Australia

36j.

Withdrawal of claim

Subdivision CInvestigation of claim

36k.

Secretary to investigate claim and submit it to Commission

Subdivision DConsideration and determination of claim

36l.

Duties of Commission in relation to claim

36m.

Date of effect of determination

Subdivision ERate of age service pension

36n.

How to work out the rate of a veteran’s age service pension

TABLE OF PROVISIONS—continued

Section

Subdivision FBereavement payments (death of pensioner partner)

36p.

Eligibility for payments under this Subdivision

36q.

Continued payment of partner’s pension

36r.

Lump sum payable in some circumstances

36s.

Adjustment of person’s age service pension rate

36t.

Effect of death of person entitled to payments under this Subdivision

36u.

Matters affecting payment of benefits under this Subdivision

Subdivision GBereavement payments (death of dependent child)

36v.

Bereavement payments on death of dependent child

36w.

Continued payment of child-related amounts

36x.

Lump sum payable in some circumstances

Subdivision HBereavement payments (death of recipient)

36y.

Death of recipient

Division 4Invalidity service pension

Subdivision AEligibility for and payability of invalidity service pension

37.

Eligibility for invalidity service pension

37a.

Invalidity service pension may not be payable in some circumstances

37b.

Invalidity service pension generally not payable before claim

37c.

Restrictions on dual pensions

Subdivision BClaim for invalidity service pension

37d.

Need for a claim

37e.

Who can claim?

37f.

Form of claim

37g.

Lodgment of claim

37h.

Claimant must be Australian resident and in Australia

37j.

Withdrawal of claim

Subdivision CInvestigation of claim

37k.

Secretary to investigate claim and submit it to Commission

Subdivision DConsideration and determination of claim

37l.

Duties of Commission in relation to claim

37m.

Date of effect of determination

Subdivision ERate of invalidity service pension

37n.

How to work out the rate of a veteran’s invalidity service pension

Subdivision FBereavement payments (death of pensioner partner)

37p.

Eligibility for payments under this Subdivision

37q.

Continued payment of partner’s pension

37r.

Lump sum payable in some circumstances

37s.

Adjustment of person’s invalidity service pension rate

37t.

Effect of death of person entitled to payments under this Subdivision

37u.

Matters affecting payment of benefits under this Subdivision

TABLE OF PROVISIONS—continued

Section

Subdivision GBereavement payments (death of dependent child)

37v.

Bereavement payments on death of dependent child

37w.

Continued payment of child-related amounts

37x.

Lump sum payable in some circumstances

Subdivision HBereavement payments (death of recipient)

37y.

Death of recipient

Division 5Wife service pension

Subdivision AEligibility for and payability of wife service pension

38.

Eligibility for wife service pension

38a.

Wife service pension may not be payable in some circumstances

38b.

Wife service pension generally not payable before claim

38c.

Restrictions on dual pensions

Subdivision BClaim for wife service pension

38d.

Need for a claim

38e.

Who can claim?

38f.

Form of claim

38g.

Lodgment of claim

38h.

Claimant must be Australian resident and in Australia

38j.

Withdrawal of claim

Subdivision CInvestigation of claim

38k.

Secretary to investigate claim and submit it to Commission

Subdivision DConsideration and determination of claim

38l.

Duties of Commission in relation to claim

38m.

Date of effect of determination

Subdivision ERate of wife service pension

38n.

How to work out the rate of a woman’s wife service pension

Subdivision FBereavement payments (death of pensioner partner)

38p.

Eligibility for payments under this Subdivision

38q.

Continued payment of partner’s pension

38r.

Lump sum payable in some circumstances

38s.

Effect of death of person entitled to payments under this Subdivision

38t.

Matters affecting payment of benefits under this Subdivision

Subdivision GBereavement payments (death of dependent child)

38u.

Bereavement payments on death of dependent child

38v.

Continued payment of child-related amounts

38w.

Lump sum payable in some circumstances

Subdivision HBereavement payments (death of recipient)

38x.

Death of recipient

TABLE OF PROVISIONS—continued

Section

Division 6Carer service pension

Subdivision AEligibility for and payability of carer service pension

39.

Eligibility for carer service pension

39a.

Carer service pension may not be payable in some circumstances

39b.

Carer service pension generally not payable before claim

39c.

Restrictions on dual pensions

Subdivision BClaim for carer service pension

39d.

Need for a claim

39e.

Who can claim?

39f.

Form of claim

39g.

Lodgment of claim

39h.

Claimant must be Australian resident and in Australia

39j.

Withdrawal of claim

Subdivision CInvestigation of claim

39k.

Secretary to investigate claim and submit it to Commission

Subdivision DConsideration and determination of claim

39l.

Duties of Commission in relation to claim

39m.

Date of effect of determination

Subdivision ERate of carer service pension

39n.

How to work out the rate of a person’s carer service pension

Subdivision FBereavement payments (continuation of carer service pension)

39p.

Continuation of carer service pension for bereavement period where person cared for dies

39q.

Continued carer service pension rate

Subdivision GBereavement payments (death of pensioner partner)

39r.

Eligibility for payments under this Subdivision

39s.

Continued payment of partner’s pension

39t.

Lump sum payable in some circumstances

39u.

Adjustment of person’s carer service pension rate

39v.

Effect of death of person entitled to payments under this Subdivision

39w.

Matters affecting payment of benefits under this Subdivision

Subdivision HBereavement payments (death of dependent child)

39x.

Bereavement payments on death of dependent child

39y.

Continued payment of child-related amounts

39z.

Lump sum payable in some circumstances

Subdivision JBereavement payments (death of recipient)

39za.

Death of recipient

TABLE OF PROVISIONS—continued

Section

Division 7Rate Calculators

Subdivision AGeneral

40.

Steps in rate calculation

40a.

Standard categories of family situations

40b.

Rate Calculators

40c.

Application of income and assets test reductions for income tax purposes

Subdivision BService pension rate calculator where there are no dependent children

41.

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

SERVICE PENSION RATE CALCULATOR WHERE THERE ARE NO DEPENDENT CHILDREN

Module A—Overall rate calculation process

Module B—Maximum basic rate

Module C—Rent assistance

Module D—Ordinary income test

Module E—Maintenance income test

Module F—Assets test

Module G—Remote area allowance

Subdivision CService pension rate calculator where there are dependent children

42. Rate of age, invalidity, wife and carer service pension (dependent child or children)

SERVICE PENSION RATE CALCULATOR WHERE THERE ARE DEPENDENT CHILDREN

Module A—Overall rate calculation process

Module B—Maximum basic rate

Module C—Additional amounts for dependent children

Module D—Rent assistance

Module E—Ordinary income test

Module F—Maintenance income test

Module G—Assets test

Module H—Remote area allowance

Subdivision D—Service pension rate calculator for blinded veterans

43. Rate of age and invalidity service pension (blinded veterans)

SERVICE PENSION RATE CALCULATOR FOR BLINDED VETERANS

Module A—Overall rate calculation process

Module B—Maximum basic rate

Module C—Additional amounts for dependent children

Module D—Rent assistance

Module E—Remote area allowance

TABLE OF PROVISIONS—continued

Section

Subdivision EService pension rate calculator for widows and non-illness separated wives

44. Rate of wife service pension for widows and non-illness separated wives

SERVICE PENSION RATE CALCULATOR FOR WIDOWS AND NON-ILLNESS SEPARATED WIVES

Module A—Overall rate calculation process

Module B—Maximum basic rate

Module C—Rent assistance

Module D—Ordinary income test

Module E—Maintenance income test

Module F—Assets test

Module G—Remote area allowance

Subdivision FService pension rate calculator for “frozen rate” widows

45. Rate of age, invalidity and carer service pensions (war widow)

SERVICE PENSION RATE CALCULATOR FOR “FROZEN RATE” WIDOWS

Module A—Overall rate calculation process

Module B—Ceiling rate

Division 8Ordinary income testinvestment income

Subdivision AIntroduction

46.

Structure of Division

46a.

Certain capital amounts not covered by other Subdivisions taken to be received over 12 months

Subdivision BAccruing return investments

46b.

Investments made before 1 January 1988 with friendly societies or where no immediate return

46c.

Investments made before 1 January 1988 not with friendly societies or where return is not deferred

46d.

Investments made after 1 January 1988

46e.

Actual return not be treated as income

46f.

Rate of return where it can only be approximated

46g.

Reduction of rate of return for investment costs

46h.

Conversion of investment to accruing return investment

Subdivision CMarket-linked investments

46j.

Investments made before 9 September 1988

46k.

Special provisions about certain investments made before 9 September 1988

46l.

Investments made after 9 September 1988

46m.

Actual return not to be treated as income

46n.

Product rate of return

46p.

Determination of entitlement of person holding a market-linked investment

46q.

Reduction of rate of return for investment costs

46r.

Conversion of investments to market-linked investments

TABLE OF PROVISIONS—continued

Section

Subdivision DCompulsorily preserved superannuation

46s.

Superannuation benefits received before pension age

Subdivision EImmediate annuities and superannuation pensions

46t.

Immediate annuities

46u.

Superannuation pensions

Division 9Ordinary income testconversion of foreign currency amounts

47.

Application of Division

47a.

Conversion of foreign currency amounts

47b.

Base exchange rate

47c.

Re-assessed exchange rate

47d.

Applicability of re-assessed exchange rate

47e.

Rounding off exchange rates

Division 10Ordinary income testdisposal of ordinary income

48.

Disposal of ordinary income

48a.

Amount of disposition

48b.

Disposal of ordinary income—not a member of a couple

48c.

Disposal of ordinary income—members of couples

48d.

Treatment of transactions that constitute both a disposal of ordinary income and a disposal of assets

48e.

Dispositions more than 5 years old to be disregarded

Division 11Ordinary income testearnings credit

49.

Earnings credit account balance may be set off against ordinary income from remunerative work

49a.

Earnings credit account

49b.

Earnings credit account balance

EARNINGS CREDIT ACCOUNT BALANCE CALCULATOR

Module A—Overall account balance calculation

Module B—Opening balance

Module C—Earnings credit

Module D—Drawing on account

Division 12New Enterprise Incentive Scheme

50.

General effect of Division

50a.

Reduction in rate of payments under this Part if recipient or partner also receiving payments under NEIS

50b.

Rate reduction under this Division

Division 13General provisions relating to the maintenance income test

51.

Apportionment of capitalised maintenance income

51a.

In-kind housing maintenance—value of substitute for family home

TABLE OF PROVISIONS—continued

Section

Division 14General provisions relating to the assets test

Subdivision AValue of person’s assets

52.

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

52a.

Value of annuities

52b.

Value of annuity—change of relevant number

52c.

Effect of charge or encumbrance on value of assets

52d.

Loans

Subdivision BDisposal of assets

52e.

Disposal of assets

52f.

Amount of disposition

52g.

Disposal of assets—not a member of a couple

52h.

Disposal of assets—members of couples

52j.

Dispositions more than 5 years old to be disregarded

Subdivision CSpecial provisions relating to retirement village residents

52k.

Retirement village resident

52l.

Basis for different treatment

52m.

Entry contribution

52n.

Extra allowable amount

52p.

Renegotiation of retirement village agreement

52q.

People who are not members of a couple

52r.

Members of couples

52s.

Members of illness separated couple (both in retirement village or villages)

52t.

Members of illness separated couple (partner not in retirement village and partner property owner)

52u.

Members of illness separated couple (partner not in retirement village and partner not property owner)

52v.

Members of ordinary couple with different principal homes (both in retirement villages)

52w.

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

52x.

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

Subdivision DFinancial hardship

52y.

Access to financial hardship rules

52z.

Application of financial hardship rules

Subdivision EPension loans scheme

52za.

Eligibility for participation in pension loans scheme

52zb.

Effect of participation in pension loans scheme—pension rate

52zc.

Effect of participation in pension loans scheme—creation of debt

52zd.

Need for a request to participate

52ze.

Additional requirement where person’s assets valued at less than $100,000

52zf.

Existence of debt results in charge over assets

52zg.

Debt not to be recovered until after death

52zh.

Enforcement of charge

52zj.

Person ceases to participate in pension loans scheme if value of assets falls below $100,000

52zk.

Automatic termination of participation in pension loans scheme

52zl.

Registration of charge

52zm.

Manner of enforcement of charge

TABLE OF PROVISIONS—continued

Section

Division 15Fringe benefits

Subdivision AIntroduction

53.

Fringe benefits and treatment at Departmental expense for certain service pensioners

Subdivision BFringe benefits

53a.

Eligibility for fringe benefits

53b.

Fringe benefits ordinary income test

53c.

Fringe benefits assets test

Subdivision CTreatment at Departmental expense

53d.

Eligibility for treatment at Departmental expense

Division 16Recipient obligations

54.

Secretary may require notification of an event or change of circumstances

54a.

Secretary may require recipient to give particular information relevant to the payment of pension

54b.

Document served with a section 54 notice

54c.

Interpretation

Division 17Pensioners in certain institutions

Subdivision AImprisonment

55.

Service pension may be suspended or forfeited when pensioner in gaol

55a.

Instalments may be redirected to partner or child

Subdivision BBenevolent homes

55b.

Application of Subdivision

55c.

Inmate of benevolent home—male, partnered, with child add-on

55d.

Inmate of benevolent home—other cases

55e.

Pensioner contribution

Division18Variation and termination

56.

Automatic termination—recipient complying with section 54 notification obligations

56a.

Automatic termination—recipient not complying with section 54 notification obligations

56b.

Automatic rate reduction—recipient not complying with section 54 notification obligations

56c.

Rate increase determination

56d.

Rate reduction determination

56e.

Cancellation and suspension determination

56f.

Resumption of payment after suspension

56g.

Date of effect of favourable determination

56h.

Date of effect of adverse determination

56j.

Pension may be cancelled at pensioner’s request

56k.

Pension may be cancelled or suspended if Secretary loses contact with pensioner

56l.

Commission may end suspension

TABLE OF PROVISIONS—continued

Section

Division 19Review of decisions

57.

Claimants and service pensioners may seek review of certain decisions

57a.

Application for review

57b.

Commission’s powers where request for review

57c.

Date of effect of certain review decisions

57d.

Commission must make written record of review decision and reasons

57e.

Person who requested review to be notified of decision

57f.

Powers of Commission to gather evidence

57g.

Withdrawal of request for review

57h.

Commission may reimburse certain expenses

Division 20—Administration of pension payments

Subdivision AGeneral administration of pension payments

58.

Payment by instalments

58a.

Calculation of amount of fortnightly instalment

58b.

Effect on instalments of back-dating claim

58c.

Manner of payment

58d.

Agents

58e.

Pension payday falling on public holiday etc.

58f.

Payment into bank account etc.

58g.

Service pension to be absolutely inalienable

58h.

Payments to Commissioner of Taxation at pensioner’s request

58j.

Payments to Commissioner of Taxation—section 218 Income Tax Assessment Act

Subdivision BPayment of service pension outside Australia

58k.

Age, invalidity and wife service pensions generally portable

58l.

Payment of service pension outside Australia

58m.

No portability if claim based on short-term residence

58n.

“Transfer” to portable pension

Veterans’ Entitlements Amendment Act 1991

No. 72 of 1991

An Act to amend the Veterans’ Entitlements Act 1986

[Assented to 25 June 1991]

The Parliament of Australia enacts:

Short title etc.

1.(1) This Act may be cited as the Veterans’ Entitlements Amendment Act 1991.

(2) In this Act, “Principal Act” means the Veterans’ Entitlements Act 19861.

Commencement

  1. 2.

    This Act commences on 1 July 1991.

3.

Section S of the Principal Act is repealed and the following sections are substituted:

Index of definitions

“5. Each expression listed in the Index below is defined, for the purposes of this Act, in the provision listed in the Index opposite that expression.

Note: the Index does not contain every defined expression used in the Act. It contains every defined expression used in Part III and some defined expressions used elsewhere.

INDEX

account

5q (1)

accruing return investment

5j (1)

acting Commissioner

5a

Acting Deputy President

5a

Acting President

5a

actual market exchange rate

5q (1)

actual value

5m

additional amounts for dependent children

5q (1)

adopted child

5f (1)

allied country

5c (1)

allied mariner

5c (1)

allied veteran

5c (1)

allotted for duty

5b (2)

amount of rent paid or payable

5n (6), (7)

annual rate of return

5j (2)

approved deposit fund

5j (1)

approved Guide to the Assessment of Rates of Veterans’ Pensions

5q (1)

approved respite care

5r

approved Treatment Principles

5q (1)

assessable growth component

5j (1)

assessable period

5j (1)

asset

5l (1)

Australia

5q (1)

Australian mariner

5c (1)

Australian resident

5g (1)

benevolent home

5q (1)

bereavement lump sum period

5p

bereavement notification day

5p

bereavement period

5p

bereavement rate continuation period

5p

blinded in an eye

5d (3)

Board

5q (1)

board

5n (1)

building society

5q (1)

campaign medal

7a (2)

capitalised maintenance income

5k

cash maintenance

5k

child

5f

child support

5k

Commission

5a

commissioner

5a

Commonwealth country

5c (1)

Commonwealth veteran

5c (1)

compulsorily preserved

5j (5)

continuous full-time service

5c (1)

couple

5e (2), (3), (4)

credit union

5q (1)

decision

5q (1)

deductible amount

5j (1)

defence force established by a Commonwealth country

5c (1),(3)

defence force established by an allied country

5c(1)

deferred annuity

5j (1)

dependent child

5f (2), (3), (4), (5)

dependent child add-on

5q (1)

Deputy President

5a

determination of entitlement

5q (1)

disability pension

5n (1)

disease

5d (1)

dispose

5l (1)

dispose of income

5h (1)

domestic payment

5h (3)

INDEX—continued

earned, derived or received

5h (2)

eligible civilian

5c (1)

eligible investment

5J (1)

eligible war service

7

employed child

5f (3)

enemy

5c (1)

exempt assets

5l (1)

first available bereavement adjustment payday

5p

fishing vessel

5c (1)

foreign exchange period

5q (1)

friendly society

5j (1)

general rate

5q (1)

government-in-exile

5c (1)

Government rent

5n (1)

guardian allowance

5q (1)

home equity conversion agreement

5h (1)

illness separated couple

5r (5)

immediate annuity

5j (1)

incapacity from a war-caused injury, a war-caused disease

5d (2)

incapacity from a defence-caused injury, a defence-caused disease

5d (2)

incentive allowance

5q (1)

income

5h (1)

income amount

5h (1)

income from personal exertion

5h (1)

income support pension

5q (1)

Income Tax Assessment Act

5q (1)

injury

5d (1)

in-kind housing maintenance

5k

ineligible property owner

5n (1)

investment product

5j (1)

interest that gives reasonable security of tenure

5l (8)

joint ownership

5q (1)

maintained child

5K (1)

maintenance

5K (1)

maintenance agreement

5K (1)

maintenance income

5K (1)

market-linked investment

5j (1)

member of a couple

5e (1), (2), (3), (4)

member of a unit of the Defence Force

5c (1), (2)

member of the Defence Force

5c (1)

member of the Interim Forces

5c (1)

non-assessable purchase price

5j (1)

non-illness separated wife

5e (1)

operational area

5b (2)

ordinary income

5h (1)

organisation representing veterans

5q (1)

parent

5f (1)

partner

5e (5)

partnered

5e (5)

partnered (partner getting benefit)

5e (5)

partnered (partner getting neither pension nor benefit)

5e (5)

partnered (partner getting pension)

5e (5)

partnered (partner getting pension or benefit)

5e (5)

pension age

5q (1)

pension payday

5q (1)

pension increase child

5f (6)

INDEX—continued

pension period

5q (1)

pension year

5l (9)

period of hostilities

5b (1)

physically present in remote area

5q (2), (3)

PLS assets

5l (1)

port

5q (1)

prescribed educational scheme

5f (1)

prescribed student child

5f (1), 5r (9)

President

5a (1)

principal home

5l (5), (6), (7)

property owner

5l (4)

public unit trust

5j (1)

purchase price

5j (1)

qualifying service

7a

receiving full-time education at a school, college or university

5f (5)

relevant number

5j (1)

remote area

5q (1)

remunerative work

5q (1)

rent

5n (4)

residing in a nursing home

5n (8)

residual capital value

5j (1)

respite care couple

5r (6)

respite period

5q (1)

retirement village

5m

return

5j (1)

rolled-over amount

5j (1)

roll-over immediate annuity

5j (1)

roll-over purchase price

5j (1)

Secretary

5q (1)

service pension

5q (1)

service pensioner

5q (1)

Social Security Act

5q (1)

social security benefit

5q (1)

social security pension

5q (1)

special maintenance income

5K (1)

special mission

5c (1)

statutory rate of return

5j (1)

student child

5f (1)

superannuation benefit

5j (1)

superannuation fund

5j (1)

superannuation pension

5j (1)

unit of the Defence Force

5c (1)

unrealisable asset

5l (11), (12)

value

5l (2), (3)

veteran

5c (1)

war to which this Act applies

5b (1)

war widow

5e (1)

widow

5e (1)

widower

5e (1)

World War 1

5b (1), (3)

World War 2

5b (1), (3)

Repatriation Commission definitions

“5a. In this Act, unless the contrary intention appears:

‘acting commissioner’ means a person who is acting as a commissioner because of an appointment under section 191;

‘Acting Deputy President’ means a commissioner or acting commissioner who is acting as Deputy President because of an appointment under section 192;

‘Acting President’ means a commissioner or acting commissioner who is acting as President because of an appointment under section 192 or 193;

‘Commission’ means the Repatriation Commission continued in existence by section 179;

‘commissioner’ means a person holding an office of commissioner because of an appointment under section 182;

‘Deputy President’ means the Deputy President of the Commission;

‘President’ means the President of the Commission.

War and operational area related definitions

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

‘operational area’ means an area described in column 1 of Schedule 2 during the period specified in column 2 of Schedule 2 opposite to the description of the area in column 1;

‘period of hostilities’ means:

(a) World War 1 from its commencement on 4 August 1914 to 11 November 1918 (both included); or

(b) World War 2 from its commencement on 3 September 1939 to 3 September 1945 (both included); or

  1. (c)

    the period of hostilities in respect of Korea from 27 June 1950 to 19 April 1956 (both included); or

  2. (d)

    the period of hostilities in respect of Malaya from 29 June 1950 to 31 August 1957 (both included); or

  3. (e)

    the period of hostilities in respect of war-like operations in operational areas from 31 July 1962 to 11 January 1973 (both included);

‘war to which this Act applies’ means World War 1 or World War 2;

‘World War 1’ means:

(a) the war that commenced on 4 August 1914; and

(b) any other war in which the Crown became engaged after 4 August 1914 and before 11 November 1918;

‘World War 2’ means:

  1. (a)

    the war that commenced on 3 September 1939; and

    1. (b)

      any other war in which the Crown became engaged after 3 September 1939 and before 3 September 1945.

Allotted for duty

“(2) A reference in this Act to a person, or a unit of the Defence Force, that was allotted for duty in an operational area is a reference to a person, or unit of the Defence Force:

  1. (a)

    that was so allotted for duty under administrative arrangements applicable in the part of the Defence Force in which the person was serving, or of which the unit formed a part; or

  2. (b)

    that is, by written instrument signed by the Minister for Defence, taken to have been allotted for duty in an area described in item 4 or 8 in Schedule 2 during the period specified in that item.

End of World War 1 and 2

“(3) For the purposes of this Act:

  1. (a)

    World War 1 is taken to have ended on 1 September 1921; and

  2. (b)

    World War 2 is taken to have ended on 28 April 1952.

    Note 1: 1 September 1921 is the date fixed by Proclamation under the Termination of the Present War (Definition) Act 1919.

Note 2: 28 April 1952 is the date on which the Treaty of Peace with Japan came into force.

Eligibility related definitions

“5c. (1) In this Act, unless the contrary intention appears: ‘allied country’ means any country (not being Australia or a Commonwealth country):

  1. (a)

    that was, at the relevant time, at war with the enemy; or

    1. (b)

      the forces of which were, at the relevant time, engaged in an operational area against forces against which the forces of the Commonwealth were engaged in that area;

and includes:

  1. (c)

    a state, province or other territory that is one of 2 or more territories that together form, or formed at the relevant time, a discrete part of such a country; and

  2. (d)

    a place that is, or was at the relevant time, a territory, dependency or colony (however described) of such a country;

‘allied mariner’ means a person who:

(a) was during the period of World War 2 from its commencement to and including 29 October 1945:

(i) a master, officer or seaman employed under agreement, or an apprentice employed under indenture, in sea-going service on a ship that was engaged in trading; or

(ii) a master, officer, seaman or apprentice employed in a lighthouse tender or pilot ship; or

(iii) employed as a pilot; or

(iv) a master, officer, seaman or apprentice employed in seagoing service on a ship (being a hospital ship, troop

transport, supply ship, tug, cable ship, salvage ship, dredge, fishing vessel or fisheries investigation vessel) that was operated by, or on behalf of, a foreign country; and

(b) was at any time during the course of that employment during the period referred to in paragraph (a) on a ship that was:

(i) operating from a port in Australia or from a port in a Commonwealth country or an allied country; or

(ii) engaged in trading with Australia or with a Commonwealth country or an allied country; or

(iii) engaged in providing assistance or support to the Defence Force, or to the forces, or any part of the forces, of a Commonwealth country or an allied country; or

(iv) engaged in providing assistance or support to Australia or to a Commonwealth country or an allied country;

but does not include:

  1. (c)

    an Australian mariner; or

    1. (d)

      a person who has, at any time, been employed by a foreign country that was, at that time, at war with Australia; or

  2. (e)

    a person who has, at any time, been employed:

    (i) on a ship that operated to, or was operating from, a port in a country that was, at that time, at war with Australia; or

    (ii) on a ship that was engaged in trading with a country that was, at that time, at war with Australia; or

    (iii) on a ship that was engaged in providing assistance or support to the enemy or to a country that was, at that time, at war with Australia;

‘allied veteran’ means a person:

  1. (a)

    who has been appointed or enlisted as a member of the defence force established by an allied country; and

  2. (b)

    who has rendered continuous full-time service as such a member during a period of hostilities;

but does not include a person who has served at any time:

  1. (c)

    in the forces of a country that was, at that time, at war with Australia, or in forces engaged in supporting or assisting the forces of such a country; or

  2. (d)

    in forces that were, at that time, engaged in war-like operations against the Naval, Military or Air Forces of Australia;

‘Australian mariner’ means a person who was, during the period of World War 2 from its commencement to and including 29 October 1945:

(a) a master, officer or seaman employed under agreement, or an apprentice employed under indenture, in sea-going service on a

ship registered in Australia that was engaged in trading between a port in a State or Territory and any other port; or

  1. (b)

    a master, officer or seaman employed under agreement, or an apprentice employed under indenture, in sea-going service on a ship registered outside Australia who was, or whose dependants were, resident in Australia for at least 12 months immediately before he or she entered into the agreement or indenture; or

  2. (c)

    a master, officer, seaman or apprentice employed on a lighthouse tender, or pilot ship of the Commonwealth or of a State; or

  3. (d)

    a pilot employed or licensed by Australia or a State or by an authority constituted by or under a law of the Commonwealth or of a State; or

  4. (e)

    a master, officer, seaman or apprentice employed in sea-going service on a ship owned in Australia and operating from an Australian port, being a hospital ship, troop transport, supply ship, tug, cabled ship, salvage ship, dredge, fishing vessel or fisheries investigation vessel; or

  5. (f)

    a member or employee of the Commonwealth Salvage Board engaged in sea-going service under the direction of that Board; or

  6. (g)

    a master, officer, seaman or apprentice employed in sea-going service on a ship registered in New Zealand who the Commission is satisfied was engaged in Australia and is not entitled to compensation under a law of a Commonwealth country providing for the payment of pensions and other payments to seamen who suffered death or disablement as a result of World War 2;

‘Commonwealth country’ means a country (other than Australia) that is, or was at the relevant time, a part of the Dominions of the Crown, and includes:

  1. (a)

    a state, province or other territory that is one of 2 or more territories that together form, or formed at the relevant time, a discrete part of such a country; and

  2. (b)

    a place that is, or was at the relevant time, a territory, dependency or colony (however described) of a part of such a country;

‘Commonwealth veteran’ means a person who rendered continuous full-time service as a member of:

  1. (a)

    the naval, military or air forces; or

  2. (b)

    the nursing or auxiliary services; or

(c)

the women’s branch of the naval, military or air forces;

of a Commonwealth country during a period of hostilities;

‘continuous full-time service’ means:

(a) in relation to a member of the Defence Force:

(i) service in the Naval Forces of the Commonwealth of the kind known as continuous full-time naval service; or

(ii) service in the Military Forces of the Commonwealth of the kind known as continuous full-time military service; or

(iii) service in the Air Force of the Commonwealth of the kind known as continuous full-time air force service; or

(b) in relation to a member of the naval, military or air forces of a Commonwealth country or an allied country—service in those forces of a kind similar to a kind a service referred to in subparagraph (a) (i), (ii) or (iii);

Note: see also subsection SR (1).

‘defence force established by a Commonwealth country’ means:

  1. (a)

    the naval, military or air forces of the country; or

    1. (b)

      the nursing and auxiliary services of the naval, military or air forces of the country; or

    2. (c)

      the women’s branch of the naval, military or air forces of the country;

‘defence force established by an allied country’ means:

  1. (a)

    the regular naval, military or air forces; and

    1. (b)

      the nursing or auxiliary services of the regular naval, military or air forces; and

  2. (c)

    the women’s branch of the regular naval, military or air forces;

raised by an allied country and operated by the country with regular military-like lines of command, that is to say, raised and operated in such a manner that the members of those forces and services:

  1. (d)

    were formally appointed to, or enlisted in, those forces or services; and

  2. (e)

    were required to wear uniforms or insignia distinguishing them as members of those forces or services; and

  1. (f)

    were required to carry arms openly; and

  2. (g)

    were subject to the rules and conventions of warfare;

Note: for extended meaning of this term in relation to a government-in-exile, see subsection (3).

‘eligible civilian’ means a person:

  1. (a)

    who was killed, or detained by the enemy, during World War 2; and

  1. (b)

    who was, at the time the person was killed or first detained:

    (i) a British subject; and

    (ii) a resident, but not an indigenous inhabitant, of the Territory of Papua or the Territory of New Guinea; and

(c) who was not, at that time:

(i) rendering service as a member of the Defence Force; or

(ii) employed by the Commonwealth on a special mission outside Australia;

‘enemy’ means:

  1. (a)

    in relation to World War 1 or World War 2—the naval, military or air forces, or any part of the naval, military or air forces, of a State at war with the Crown during that war; and

  2. (b)

    in relation to service in, or a period of hostilities in respect of, an operational area—the naval, military or air forces against which the Naval, Military or Air Forces of the Commonwealth were engaged in that operational area; and

  1. (c)

    persons assisting any of those forces;

‘fishing vessel’ means a ship employed in connection with the occupation of sea fishing for profit;

‘government-in-exile’, in relation to an allied country, includes a person, or group of persons, claiming to represent, or administer, the country or a part of the country or the people of the country;

‘member of a unit of the Defence Force’ means:

  1. (a)

    a member of the Defence Force; or

  2. (b)

    another person who is:

    (i) a member of the unit; or

    (ii) attached to the unit; or

    (iii) appointed for continuous full-time service with the unit;

Note: see also subsection 5r (1).

‘member of the Defence Force’ includes a person appointed for continuous full-time service with a unit of the Defence Force;

‘member of the Interim Forces’ means a person who:

  1. (a)

    enlisted or re-engaged in, or was appointed or re-appointed to, the Defence Force for continuous full-time service for a term of not more than 2 years; or

  2. (b)

    was appointed for continuous full-time service with a unit of the Defence Force for a term of not more than 2 years;

on or after 1 July 1947 and before 1 July 1949;

‘qualifying service’ has the meaning given in section 7a;

‘special mission’ means a mission that, in the opinion of the Commission, was of special assistance to the Commonwealth in the prosecution of a war to which this Act applies;

‘unit of the Defence Force’ means a body, contingent or detachment of the Defence Force;

‘veteran’ means:

(a) a person (including a deceased person):

(i) who is, because of section 7, taken to have rendered eligible war service; or

(ii) in respect of whom a pension is, or pensions are, payable under subsection 13 (6); and

(b) in Part III also includes a person who is:

(i) a Commonwealth veteran; or

(ii) an allied veteran; or

(iii) an Australian mariner; or

(iv) an allied mariner.

Army Medical Corps Nursing Service

“(2) For the purposes of this Act, a member of the Army Medical Corps Nursing Service who:

  1. (a)

    rendered service during World War 1, either within or outside Australia; and

  2. (b)

    rendered the service as such a member in accordance with an acceptance or appointment by the Director-General of Medical Services for service outside Australia;

is taken to have been serving as a member of the Defence Force while rendering that service.

‘Defence force’ of government-in-exile

“(3) In relation to any period during which there was a government-in-exile in relation to an allied country, ‘defence force established by an allied country’ includes:

  1. (a)

    the regular naval, military or air forces; and

    1. (b)

      the nursing or auxiliary services of the regular naval, military or air forces; and

  2. (c)

    the women’s branch of the regular naval, military or air forces;

raised by that government-in-exile and operated by it with regular military-like lines of command, that is to say, raised and operated in such a manner that the members of those forces and services:

  1. (d)

    were formally appointed to, or enlisted in, those forces or services; and

  2. (e)

    were required to wear uniforms or insignia distinguishing them as members of those forces or services; and

  1. (f)

    were required to carry arms openly; and

  2. (g)

    were subject to the rules and conventions of warfare.

Injury/disease definitions

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

‘disease’ includes:

(a) any physical or mental ailment, disorder, defect or morbid condition (whether of sudden onset or gradual development); and

(b) the recurrence of such an ailment, disorder, defect or morbid condition;

but does not include the aggravation of such an ailment, disorder, defect or morbid condition;

‘injury’ means any physical or mental injury (including the recurrence of a physical or mental injury) but does not include:

  1. (a)

    a disease; or

  2. (b)

    the aggravation of a physical or mental injury.

    War-caused injury; war-caused disease; defence-caused injury; defence-caused disease

“(2) In this Act, unless the contrary intention appears:

  1. (a)

    a reference to the incapacity of a veteran from a war-caused injury or a war-caused disease; or

  2. (b)

    a reference to the incapacity of a person who is a member of the Forces, or a member of a Peacekeeping Force (as defined by subsection 68 (1)), from a defence-caused injury or a defence-caused disease;

is a reference to the effects of that injury or disease and not a reference to the injury or disease itself.

Note: for ‘war-caused injury’ and ‘war-caused disease’ see section 9.

Blinded in an eye

“(3) For the purposes of this Act, a person is taken to have been blinded in an eye if:

  1. (a)

    the person has lost the eye; or

    1. (b)

      in the opinion of the Commission, the eyesight of the person in that eye is so defective that the person has no useful sight in that eye.

Family relationships definitions—couples

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

‘couple’ has the meaning given by subsections (2), (3) and (4);

‘member of a couple’ has the meaning given by subsections (2), (3) and (4);

‘non-illness separated wife’ means a woman:

  1. (a)

    who is legally married to a veteran but is living separately and apart from him on a permanent basis; and

  2. (b)

    whose separation has not resulted in a direction under subsection 5r (3); and

(c) who is not receiving age or invalidity service pension;

‘partner’, in relation to a person who is a member of a couple, means the other member of the couple;

‘partnered’ has the meaning given by subsection (5);

‘partnered (partner getting benefit)’ has the meaning given by subsection (5);

‘partnered (partner getting neither pension nor benefit)’ has the meaning given by subsection (5);

‘partnered (partner getting pension)’ has the meaning given by subsection (5);

Note: ‘social security pension’ includes a sheltered employment or rehabilitation allowance.

‘partnered (partner getting pension or benefit)’ has the meaning given by subsection (5);

‘war widow’ means a woman:

(a) who was the partner of, or was legally married to:

(i) a veteran; or

(ii) a person who was a member of the Forces for the purposes of Part II; or

(iii) a person who was a member of the Forces for the purposes of Part IV;

immediately before the death of the veteran or person; and

(b) who is receiving:

(i) a pension payable under Part II or IV at a rate determined under or by reference to subsection 30 (1); or

(ii) a pension payable under the Seamen’s War Pension and Allowances Act 1940 at a rate determined under or by reference to subsection 18 (2) of that Act; or

(iii) a pension, or compensation of a periodical nature, payable under section 13 of the Defence (Transitional Provisions) Act 1946 (other than an attendant’s allowance payable under that section); or

(iv) a pension that:

(a) is payable under the law of a foreign country; and

(b) is, in the opinion of the Commission, similar in character to a pension or payment referred to in subparagraph (i), (ii) or (iii);

‘widow’ means:

  1. (a)

    a woman who was the partner of a man immediately before he died; or

  2. (b)

    a woman who was legally married to a man, but living separately and apart from her on a permanent basis, immediately before he died.

‘widower’ means:

  1. (a)

    a man who was a partner of a woman immediately before she died; or

  2. (b)

    a man who was legally married to a woman, but living separately and apart from her on a permanent basis, immediately before she died.

Member of a couplegeneral

“(2) A person is a member of a couple for the purposes of this Act if:

  1. (a)

    the person is legally married to another person and is not living separately and apart from the other person on a permanent basis; or

  1. (b)

    all of the following conditions are met:

    (i) the person is living with a person of the opposite sex (in this paragraph called the ‘partner’);

    (ii) the person is not legally married to the partner;

    (iii) the person and the partner are, in the Commission’s opinion (formed as mentioned in section 11a), in a marriage-like relationship;

    (iv) the person and the partner are not within a prohibited relationship for the purposes of section 23b of the Marriage Act 1961.

Note 1: for ‘living with a person’ see subsection (3).

Note 2: a prohibited relationship for the purposes of section 23B of the Marriage Act 1961 is a relationship between a person and:

  • an ancestor of the person; or

  • a descendant of the person; or

  • a brother or sister of the person (whether of the whole blood or the part-blood).

“(3) For the purposes of subparagraph (2) (b) (i), a person is to be treated as living with another person during:

  1. (a)

    any temporary absence of one of those persons;

    1. (b)

      an absence of one of those persons resulting from illness or infirmity;

if the Commission is of the opinion that they would, but for the absence, have been living together during that period.

Member of a couplespecial excluding determination

“(4) A person is not a member of a couple if a determination under subsection 5r (3) is in force in relation to the person.

Note: subsection 5r (3) allows the Commission to treat a person who is a member of a couple as not being a member of a couple in special circumstances.

Standard family situation categories

“(5) For the purposes of this Act:

  1. (a)

    a person is partnered if the person is a member of a couple; and

  2. (b)

    a person is partnered (partner getting neither pension nor benefit) if the person is a member of a couple and the person’s partner:

    (i) is not receiving a service pension; and

    (ii) is not receiving a social security pension; and

    (iii) is not receiving a social security benefit; and

(c) a person is partnered (partner getting pension or benefit) if the person is a member of a couple and the person’s partner is receiving:

(i) a service pension; or

(ii) a social security pension; or

(iii) a social security benefit; and

(d) a person is partnered (partner getting pension) if the person is a member of a couple and the person’s partner is receiving:

(i) a service pension; or

(ii) a social security pension; and

(e) a person is partnered (partner getting benefit) if the person is a member of a couple and the person’s partner is receiving a social security benefit.

Note: ‘social security pension’ includes a sheltered employment or rehabilitation allowance (see subsection 5q).

Family relationships definitions—children

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

‘adopted child’ means a child adopted under the law of any place, whether in Australia or not, relating to the adoption of children;

‘child’ means:

  1. (a)

    a person who has not turned 16; or

  2. (b)

    a person who:

    (i) has turned 16 but has not turned 25; and

    (ii) is receiving full-time education at a school, college or university;

but does not include such a person if the person is receiving:

  1. (c)

    an invalid pension; or

  2. (d)

    a wife pension; or

  3. (e)

    a carer pension; or

  4. (f)

    a sole parent pension; or

  5. (g)

    a widow B pension; or

  6. (h)

    a widowed person allowance; or

  7. (i)

    a rehabilitation allowance; or

  8. (j)

    a social security benefit;

under the Social Security Act.

Note: see also subsection (5) (receiving full-time education).

‘dependent child’ has the meaning given by subsections (2) to (5);

‘parent’ means, in relation to an adopted child, an adoptive parent of the child;

‘pension increase child’ has the meaning given by subsection (6);

‘prescribed educational scheme’ means:

(a) the AUSTUDY Scheme; or

  1. (b)

    the ABSTUDY Scheme, to the extent that it provides means-tested allowances; or

  1. (c)

    the Assistance for Isolated Children Scheme; or

  2. (d)

    the Veterans’ Children Education Scheme; or

  3. (e)

    the Post-Graduate Awards Scheme;

‘prescribed student child’ means a child in respect of whom a determination under subsection 5r (9) is in force;

‘receiving full-time education at a school, college or university’ has the meaning given by subsection (5);

‘student child’ means a person who:

  1. (a)

    has turned 16 but who has not turned 25; and

  2. (b)

    is receiving full-time education at a school, college or university;

Note: see also subsection (5) (receiving full-time education).

Dependent child

“(2) Subject to subsections (3) and (4), a child is a dependent child of another person if the child is a child of the person within the meaning of section 10.

Employed child

“(3) A child who has not turned 16 cannot be a dependent child if:

  1. (a)

    the child is not receiving full-time education; and

  2. (b)

    the child is receiving income from employment; and

  3. (c)

    the rate of that income exceeds $100 per week.

Dependent childresidence requirements

“(4) For the purposes of this Act, a child is not a dependent child of another person unless:

  1. (a)

    the child is an Australian resident; or

  2. (b)

    the child:

    (i) had been an Australian resident living with the person in Australia; and

    (ii) is living with the person outside Australia.

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

Receiving full-time educationeducation leavers

“(5) If:

  1. (a)

    a person is under the age of 25 years; and

    1. (b)

      the person ceases to receive full-time education at a school, college or university; and

    2. (c)

      an unemployment benefit or a job search allowance is not payable to the person because of an education leavers waiting period;

the person is to be taken to be receiving full-time education at a school, college or university during the period for the purposes of this Act.

Pension increase child

“(6) A child is a pension increase child of a person if:

  1. (a)

    the person’s service pension rate includes a dependent child add-on for the child; or

  2. (b)

    the person’s partner’s service pension rate or social security pension rate includes a dependent child add-on for the child.

Australian residence definitions

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

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

    (b) is likely to remain permanently in Australia.

    Note: ‘exempt non-citizen’ is defined in section 5 of the Migration Act 1958: it covers non-citizens who are diplomats, members of armed forces, ships’ crew members and others and. under section 7 of that Act, exempt non-citizens do not need an entry permit or entry visa to enter Australia.

Papua New Guinea residents

“(2) For the purposes of this Act, a person (other than an indigenous inhabitant of the Territory of Papua or the Territory of New Guinea) resident in Papua New Guinea immediately before it became an independent sovereign State, is taken to be an Australian resident so long as the person continues to reside in Papua New Guinea.

“(3) If:

  1. (a)

    a service pensioner is taken to be an Australian resident under subsection (2); and

  2. (b)

    the pensioner’s partner was resident in Papua New Guinea after it became an independent sovereign State;

the partner is, for the purposes of Part III, also taken to be an Australian resident.

“(4) If:

  1. (a)

    a service pensioner is taken to be an Australian resident under subsection (2); and

  2. (b)

    the pensioner’s non-illness separated wife was resident in Papua New Guinea after it became an independent sovereign State;

the wife is, for the purposes of Part III, also taken to be an Australian resident.

Income test definitions

“5h. (1) in this Act, unless the contrary intention appears:

‘dispose of income’ has the meaning given by section 48;

‘domestic payment’ has the meaning given by subsection (3);

‘earned, derived or received’ has the meaning given by subsection (2);

‘home equity conversion agreement’, in relation to a person, means an agreement under which the repayment of an amount paid to or on behalf of the person, or the person’s partner, is secured by a mortgage of the principal home of the person or the person’s partner;

Note: see also subsection (7).

‘income’, in relation to a person, means:

  1. (a)

    an income amount earned, derived or received by the person for the person’s own use or benefit; or

  1. (b)

    a periodical payment by way of gift or allowance; or

  2. (c)

    a periodical benefit by way of gift or allowance;

but does not include an amount that is excluded under subsection (4), (5) or (8);

Note 1: see also sections 46-46u (investment income).

Note 2: sections 46b to 46d provide that a person who has an accruing return investment or market-linked investment is to be taken to receive a particular rate of return on the investment as income.

Note 3: section 46e provides that any return actually received by a person from an investment to which sections 46b to 46d applies is to be treated as if it were not income of the person.

Note 4: where a person or a person’s partner has disposed of income, the person’s income may be taken to include the amount which has been disposed of—see sections 48-48e.

Note 5: amounts of maintenance income are not excluded amounts.

‘income amount’ means:

  1. (a)

    valuable consideration; or

  2. (b)

    personal earnings; or

  3. (c)

    moneys; or

  4. (d)

    profits;

(whether of a capital nature or not);

‘income from personal exertion’ means an income amount that is earned, derived or received by a person by way of payment for personal exertion by the person but does not include an income amount received as compensation for the person’s inability to earn, derive or receive income through personal exertion;

‘ordinary income’ means income that is not maintenance income.

Note: for ‘maintenance income’ see subsection 5k (I).

Earned, derived or received

“(2) A reference in this Act to an income amount earned, derived or received is a reference to:

  1. (a)

    an income amount earned, derived or received by any means; and

  2. (b)

    an income amount earned, derived or received from any source (whether within or outside Australia).

Domestic payments

“(3) A payment received by a person is a domestic payment for the purposes of this Act if:

  1. (a)

    the person receives the payment on the disposal of an asset of the person; and

  2. (b)

    the asset was used, immediately before the disposal, by the person or the person’s partner wholly or substantially for private or domestic purposes; and

  3. (c)

    the asset was used by the person or the person’s partner wholly or substantially for those purposes for:

    (i) a period of 12 months before the disposal; or

    (ii) if the Commission considers it appropriate—a period of less than 12 months before the disposal.

Excluded amountshome equity conversion (not a member of a couple)

“(4) If a person is not a member of a couple, an amount paid to or on behalf of the person under a home equity conversion agreement is an excluded amount for the person to the extent that the total amount owed by the person from time to time under home equity conversion agreements does not exceed $40,000.

Excluded amountshome equity conversion (member of a couple)

“(5) If a person is a member of a couple, an amount paid to or on behalf of the person or the person’s partner under a home equity conversion agreement is an excluded amount for the person to the extent that the total amount owed by the person and the person’s partner under home equity conversion agreements from time to time does not exceed $40,000.

Home equity conversion (amount owed)

“(6) For the purposes of this Act, the amount owed by a person under a home equity conversion agreement is the principal amount secured by the mortgage concerned and does not include:

(a) any amount representing mortgage fees; or

  1. (b)

    any amount representing interest; or

    1. (c)

      any similar liability whose repayment is also secured by the mortgage.

Home equity conversion (principal home)

“(7) For the purposes of the definition of ‘home equity conversion agreement’ in subsection (1), an asset cannot be a person’s principal home unless the person or the person’s partner has a beneficial interest (but not necessarily the sole beneficial interest) in the asset.

Excluded amountsgeneral

“(8) The following amounts are not income for the purposes of this Act:

  1. (a)

    a payment under this Part;

  2. (b)

    a payment of an instalment of pension under Part II or IV;

    1. (c)

      a payment of an instalment of a pension (other than a pension payable in respect of a child) payable because of subsection 4 (6) or (8b) of the Veterans’ Entitlements (Transitional Provisions and Consequential Amendments) Act 1986;

    2. (d)

      a payment of an instalment of a pension under the Seamen’s War Pensions and Allowances Act 1940;

    3. (e)

      a payment (other than a payment referred to in paragraph (b), (c) or (d)) that is a payment in respect of incapacity or death resulting from employment in connection with a war or warlike operations in which the Crown has been engaged;

    Note: however, a payment referred to in paragraph (b), (c), (d) or (e) is taken into account in calculating the amount of rent assistance a person is entitled to, and may reduce that amount—see Rent Assistance Module of relevant Rate Calculator.

    1. (f)

      a payment by way of allowance (other than a loss of earnings allowance) under Part VI of this Act;

    2. (g)

      a payment, by way of allowance, under regulation 37 of the Seamen’s War Pensions and Allowances Regulations;

(h) a payment under the Social Security Act;

(i) if the person has not reached pension age—any return on a compulsorily preserved superannuation benefit of the person;

(j) the value of emergency relief or like assistance;

(k) the value of any assistance that:

(i) is provided by an eligible organisation within the meaning of the Homeless Persons Assistance Act 1974; and

(ii) is assistance that consists of providing:

(a) accommodation or meals; or

(b) a ticket, voucher or token that may be exchanged for accommodation or meals;

(l) a payment under the Handicapped Persons Assistance Act 1974;

(m) a payment under Part III of the Disability Services Act 1986 or

the value of any rehabilitation program (including any follow-up program) provided under that Part;

(n) a payment of domiciliary nursing care benefit under Part Vb of the National Health Act 1953;

(o) a payment under a Commonwealth law, one of whose objects is that of assisting people to purchase or build their own homes;

(p) a payment made to the person for or in respect of a child of the person;

(q) insurance or compensation payments made because of the loss of, or damage to, buildings, plant or personal effects;

(r) money from an investment that is:

(i) an investment of payments of the kind referred to in paragraph (q); and

(ii) an investment for:

(a) a period of not more than 12 months after the person receives the payments; or

(b) if the Commission thinks it appropriate—of 12 months or more after the person receives those payments;

(s) an amount paid:

(i) by the Federal Republic of Germany under the laws of that Republic; or

(ii) by a State of the Federal Republic of Germany under the laws of that State;

by way of compensation for a victim of National Socialist persecution;

(t) an amount paid by the Republic of Austria under the laws of that Republic by way of compensation to a victim of National Socialist persecution;

(u) if the person pays, or is liable to pay, rent—a payment by way of rent subsidy made by the Commonwealth, by a State or Territory or by an authority of the Commonwealth or of a State or Territory to or on behalf of the person who pays or who is liable to pay rent;

(v) a payment received by a trainee in full-time training under a program included in the programs known as the Labour Force Programs, to the extent that the payment includes one or more of the following amounts:

(i) an amount calculated by reference to a rate of unemployment benefit or job search allowance under the Social Security Act;

(ii) an amount known as the training component;

(iii) an amount by way of a living away from home allowance;

(w) a payment received by a trainee in part-time training under a program included in the programs known as the Labour Force Programs, if the trainee is also receiving:

(i) a service pension; or

(ii) an age pension; or

(iii) an invalid pension; or

(iv) a wife pension; or

(v) a carer pension; or

(vi) a sole parent pension; or

(vii) a sheltered employment allowance; or

(viii) a rehabilitation allowance;

(x) a payment received by the person under the scheme known as the New Enterprise Incentive Scheme;

(y) a benefit under a law of the Commonwealth that relates to the provision of:

(i) pharmaceutical, sickness or hospital benefits; or

(ii) medical or dental services;

(z) a payment that:

(i) is made by an organisation that is registered under a law referred to in paragraph (y); and

(ii) is made in respect of expenses incurred by a person for:

(a) hospital treatment; or

(b) medical treatment; or

(c) dental treatment;

(za) in the case of a member of:

(i) the Australian Naval Reserve; or

(ii) the Naval Emergency Reserve Forces; or

(iii) the Australian Army Reserve; or

(iv) the Australian Air Force Reserve; or

(v) the Air Force Emergency Force; or

(vi) the Regular Army Emergency Reserve;

the pay and allowances paid to the person as such a member (other than pay and allowances in respect of continuous full-time service) and, in the case of a member of a Force referred to in subparagraph (ii), (v) or (vi), any gratuity paid to the person by reason of a calling out for continuous service of that Force or of a part of that Force;

(zb) a payment to a veteran by way of:

(i) attendant allowance under section 98; or

(ii) recreation allowance under section 104; or

(iii) an allowance for the running and maintenance of a motor vehicle under the Vehicle Assistance Scheme referred to in section 105; or

(iv) decoration allowance under section 102; or

(v) Victoria Cross allowance under section 103; or

(vi) clothing allowance under section 97; or

(vii) a bereavement payment under Part III, or section 98a; or

(viii) a funeral benefit under Part VI; or

(ix) a bereavement payment under section 24b of the Seamen’s War Pensions and Allowances Act 1940; or

(x) a funeral benefit under the Seamen’s War Pensions and Allowances Regulations;

(zc) a payment to a mariner under the Seamen’s War Pensions and Allowances Act 1940 of a kind similar to a kind of payment referred to in paragraph (zb);

(zd) a periodical payment by way of gift or allowance, or a periodical benefit by way of gift or allowance, from the person’s father, mother, son, daughter, brother or sister;

(ze) the value of board or lodging received by the person;

(zf) a domestic payment;

(zg) a payment of an education supplement to a person who:

(i) is receiving an invalidity service pension; and

(ii) would, if the person were not receiving that pension, be eligible to receive payments under the AUSTUDY scheme.

Note: ‘social security pension’ includes a sheltered employment or rehabilitation allowance.

Investment income definitions

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

‘accruing return investment’ means an arrangement by a person that consists of or includes an investment of money, being an investment:

(a) that produces:

(i) a fixed rate or quantifiable rate of return, whether or not that rate varies from time to time; or

(ii) a rate of return that may be reasonably approximated; and

(b) the value of which from time to time is unlikely to decrease as a result of market changes;

Note: a superannuation benefit may be taken to be an investment—see subsection (4).

‘annual rate of return’ has the meaning given by subsection (2);

‘approved deposit fund’ means a fund that is an approved deposit fund for the purposes of Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act;

‘assessable growth component’, in relation to an amount of superannuation benefit, means so much (if any) of the return as is attributable to the assessable period;

‘assessable period’, in relation to a person, means any period during which the person received:

  1. (a)

    a service pension or a social security pension; or

  2. (b)

    a social security benefit;

except any such period that occurs before a continuous period of at least 2 years during which the person did not receive such a pension or benefit;

Note: ‘social security pension’ includes a sheltered employment or rehabilitation allowance.

‘deductible amount’, in relation to an immediate annuity or a superannuation pension, is the amount that would be the deductible amount in relation to the annuity or superannuation pension in relation to a year of income under subsection 27h (2) of the Income Tax Assessment Act if ‘undeducted purchase price’ had the same meaning in that subsection as ‘non-assessable purchase price’ has in this Act;

‘deferred annuity’ means an annuity that is a deferred annuity for the purposes of Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act;

‘eligible investment’ means an investment that satisfies all of the following conditions:

  1. (a)

    money or property invested is paid or transferred by the investor directly or indirectly to a body corporate or into a trust fund;

  2. (b)

    the assets that represent money or property invested (in this definition called the ‘investment assets’) are held otherwise than in the names of investors;

  3. (c)

    the investor does not, either alone or jointly with a relative or relatives of the investor, have effective control over the management of the investment assets;

  4. (d)

    the investor has a legally enforceable right to share in any distribution of the income or profits derived from the investment assets;

‘friendly society’ means:

  1. (a)

    a society registered as a friendly society under a law in force in a State or Territory; or

  2. (b)

    a society that had, before 13 December 1987, been approved for the purpose of the definition of ‘friendly society’ in subsection 115 (1) of the Social Security Act;

and, for the purpose of the definition of ‘market-linked investment’ in this subsection, includes:

  1. (c)

    a society that has been approved for the purposes of the definition of ‘friendly society’ in subsection 115 (1) of the Social Security Act on or after 13 December 1987; and

  2. (d)

    a society that is an approved friendly society for the purposes of the Social Security Act;

‘immediate annuity’ means an annuity that is presently payable;

Note: for ‘presently payable’ see subsection (3).

investment product’ means a class of market-linked investments specified in a notice under subsection 9 (2) of the Social Security Act;

‘market-linked investment’ means:

(a) an investment in:

(i) an approved deposit fund; or

(ii) a deferred annuity; or

(iii) a public unit trust; or

(iv) an insurance bond; or

  1. (b)

    an investment with a friendly society; or

    1. (c)

      an eligible investment other than an investment referred to in paragraph (a) or (b); or

    2. (d)

      a superannuation benefit vested in a person and held in a superannuation fund (unless a superannuation pension funded by that benefit is presently payable to the person);

other than an investment that is:

(e) an accruing return investment; or

(f) an investment consisting of the acquisition of real property, stock or shares;

‘non-assessable purchase price’:

  1. (a)

    in relation to an immediate annuity other than a roll-over immediate annuity—has the same meaning as ‘undeducted purchase price’ has in Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act; or

  2. (b)

    in relation to a roll-over immediate annuity—means the rollover purchase price; or

  3. (c)

    in relation to a superannuation pension—has the same meaning as ‘undeducted purchase price’ has in Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act;

‘public unit trust’ means a unit trust that:

  1. (a)

    except where paragraph (b) applies—was, in relation to the unit trust’s last year of income, a public unit trust for the purposes of Division 6b of Part III of the Income Tax Assessment Act; or

  2. (b)

    where the first year of income of the unit trust has not yet finished—has, at some time since the trust was established, satisfied at least one of the paragraphs of subsection 102g (1) of the Income Tax Assessment Act;

‘purchase price’, in relation to an annuity, has the meaning that it has in Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act;

‘relevant number’, in relation to an annuity, has the meaning that it has in section 27h of the Income Tax Assessment Act;

‘residual capital value’, in relation to an annuity, has the meaning that it has in Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act;

‘return’, in relation to an investment (including an investment in the nature of superannuation), means any increase, whether of a capital or income nature and whether or not distributed, in the value or amount of the investment;

‘rolled-over amount’, in relation to an annuity, has the meaning that it has in Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act;

‘roll-over immediate annuity’, means an immediate annuity the purchase price of which consists wholly of a rolled-over amount or rolled-over amounts;

‘roll-over purchase price’, in relation to a roll-over immediate annuity, means:

(a) except where paragraph (b) applies—either the sum of the following amounts:

(i) the amount that would, under Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act, be the undeducted purchase price of the annuity;

(ii) the amount that is the upper limit under section 159sg of the Income Tax Assessment Act for the year of income in which the annuity was purchased;

or the purchase price of the annuity, whichever is less; or

(b) where:

(i) the roll-over immediate annuity, and another roll-over immediate annuity, have been purchased using the same rolled-over amount or rolled-over amounts in the name of the same person; and

(ii) the roll-over purchase price of the other roll-over immediate annuity has previously been worked out under paragraph (a) for the purposes of this Act;

the amount that would, under Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act, be the undeducted purchase price of the annuity;

‘statutory rate of return’ means 11% per year or such lower percentage per year as is specified in a notice in force under subsection 1087 (1) of the Social Security Act;

‘superannuation benefit’, in relation to a person, means a benefit arising directly or indirectly from amounts contributed (whether by the person or by any other person) to a superannuation fund in respect of the person;

‘superannuation fund’ means a superannuation fund as defined for the purposes of Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act, other than a fund covered by subparagraph (ia)

of the definition of ‘superannuation fund’ in subsection 27a (1) of that Act;

‘superannuation pension’ has the same meaning as it has in Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act.

“(2) Where the value or amount at a particular time of a market-linked investment included in an investment product is equal to or less than the value or amount of that market-linked investment 12 months previously, the annual rate of return at that first-mentioned time for market-linked investments included in that investment product is to be taken, for the purposes of a determination under this Act, to be 0%.

“(3) For the purposes of this Act, an annuity or superannuation pension is to be taken to be presently payable at all times after, but not before, the commencement of the first period in respect of which the annuity or superannuation pension is payable.

“(4) For the purposes of the definition of ‘accruing return investment’ in subsection (1), a superannuation benefit vested in a person that is held in a superannuation fund is to be taken to be an investment of that person, unless a superannuation pension funded by that benefit is presently payable to the person.

“(5) For the purposes of this Act, a person’s superannuation benefit is compulsorily preserved if the person’s access to the benefit is restricted under:

  1. (a)

    paragraph 23 (ja) of the Income Tax Assessment Act as in force at any time before 18 December 1987; or

  2. (b)

    section 23fb of the Income Tax Assessment Act as in force at any time before 18 December 1987; or

  3. (c)

    regulations made under section 7 or 8 of the Occupational Superannuation Standards Act 1987; or

  4. (d)

    a provision of the trust deed or contract concerned that imposes restrictions corresponding to the restrictions imposed by a provision of the regulations made under section 7 or 8 of the Occupational Superannuation Standards Act 1987.

Maintenance income definitions

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

‘capitalised maintenance income’, in relation to a person, means maintenance income of the person:

  1. (a)

    that is neither a periodic amount nor a benefit provided on a periodic basis; and

  1. (b)

    the amount or value of which exceeds $1,500;

Note 1: see also section 51 (apportionment of capitalised maintenance income).

Note 2: if maintenance income is caught by paragraphs (a) and (b) of the definition, the whole amount or value of the maintenance income is capitalised maintenance income, not just the part of the maintenance income that exceeds the $1,500 limit.

‘cash maintenance’, in relation to a person, means maintenance income of the person that consists of the amount of a payment received by the person or by a child of the person;

Note: a ‘payment’ of an ‘amount’ would have to be a payment of money or the equivalent of a payment of money (e.g. a cheque, money order or electronic funds transfer (EFT)).

‘child support’ means financial support under the Child Support (Assessment) Act 1989 and includes financial support:

  1. (a)

    by way of lump sum payment; or

  2. (b)

    by way of transfer or settlement of property;

‘in-kind housing maintenance’, in relation to a person, means maintenance income of the person that is not cash maintenance and is received in relation to the provision of a residence that is, or is to be, the person’s principal home;

Note: see also subsections (4) and (5) and section 51a.

‘maintained child’, in relation to another person (in this definition called the ‘adult’), means a child who is:

  1. (a)

    a dependant of the adult; and

(b)

wholly or substantially dependent on the adult;

‘maintenance’ includes child support;

‘maintenance agreement’ means a written agreement (whether made within or outside Australia) that provides for the maintenance of a person (whether or not it also makes provision in relation to other matters), and includes such an agreement that varies an earlier maintenance agreement;

‘maintenance income’, in relation to a person, means:

(a) child maintenance—that is, the amount of a payment or the value of a benefit that is received by the person for the maintenance of a maintained child of the person and is received from:

(i) a parent of the child; or

(ii) the partner or former partner of a parent of the child; or

  1. (b)

    partner maintenance—that is, the amount of a payment or the value of a benefit that is received by the person for the person’s own maintenance and is received from the person’s partner or former partner; or

  2. (c)

    direct child maintenance—that is, the amount of a payment or the value of a benefit that is received by a maintained child of the person for the child’s own maintenance and is received from:

    (i) a parent of the child; or

    (ii) the partner or former partner of a parent of the child;

Note: see also subsection (3) and section 51 (capitalised maintenance income).

‘special maintenance income’, in relation to a person, means:

(a) in-kind housing maintenance of the person; or

  1. (b)

    in-kind maintenance of the person (other than in-kind housing maintenance or capitalised maintenance income) received from the person’s partner or former partner during the period of 6 months following the person’s separation from the partner or former partner; or

  2. (c)

    maintenance income of the person provided in relation to expenses arising directly from a physical, intellectual or psychiatric disability, or a learning difficulty, of a maintained child of the person where the disability or difficulty is likely to be permanent or to last for an extended period.

Note: see also subsection 51a (1) (in-kind housing maintenance—value of substitute for former family home).

“(2) For the purposes of the definition of ‘maintenance income’ in subsection (1):

  1. (a)

    a payment received under subsection 76 (1) of the Child Support (Registration and Collection) Act 1988 in relation to a registered maintenance liability (within the meaning of that Act) is taken to be received from the person who is the payer (within the meaning of that Act) in relation to the liability; and

  2. (b)

    a reference to a benefit received by a person includes a reference to a benefit received by the person because of a payment made to, or a benefit conferred on, another person (including a payment made or benefit conferred under a liability owed to the other person); and

(c) a reference to a payment or benefit received from a person includes a reference to a payment or benefit received:

(i) directly or indirectly from the person; and

(ii) out of any assets of, under the control of, or held for the benefit of, the person; and

(iii) from the person under or as a result of a court order, a court registered or approved maintenance agreement or otherwise.

“(3) For the purposes of the definition of ‘in-kind housing maintenance’ in subsection (1), maintenance received in relation to the provision of a residence includes maintenance consisting of:

  1. (a)

    a benefit received because of the transfer or settlement of a right or interest in relation to the residence; and

  2. (b)

    where there is a secured housing loan on the residence—a benefit received because of:

    (i) the payment of interest, charges or other amounts under the loan; or

    (ii) the repayment of amounts borrowed under the loan; and

(c) a benefit received because of the payment of rent (including Government rent), or a like payment, in relation to the residence.

“(4) For the purposes of paragraph (3) (b), there is a secured housing loan on a residence if:

  1. (a)

    there is a loan that is secured by a mortgage or other interest in relation to the residence; and

  2. (b)

    the sole or principal purpose of the loan is to enable the residence, or a right or interest in relation to the residence, to be acquired.

Assets test definitions

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

‘asset’ means property (including property outside Australia);

‘dispose’, in relation to an asset:

(a) has its ordinary meaning in Subdivision E of Division 14 (pension loans scheme); and

(b) has the meaning given by section 52e in the rest of the Act;

‘exempt assets’ means assets described in any of paragraphs 52 (1) (e) to (n);

‘interest that gives reasonable security of tenure’ has the meaning given by subsection (8);

‘pension year’ has the meaning given by subsection (9);

‘PLS assets’, in relation to a person, means all the person’s assets (other than exempt assets):

  1. (a)

    that cannot readily be sold or realised; or

  2. (b)

    that:

    (i) the person does not wish to sell or realise; and

    (ii) are not of a kind that the person could reasonably be expected to sell or realise;

Note: this definition is relevant only to the pension loans scheme (Division 14, Subdivision E).

‘principal home’ has the meaning given by subsections (5), (6) and (7);

‘property owner’ has the meaning given by subsection (4);

‘unrealisable asset’ has the meaning given by subsections (11) and (12);

‘value’ has the meaning given by subsections (2) and (3).

Note: see also sections 52 (certain assets to be disregarded in calculating the value of a person’s assets), 52c (effect of charge or encumbrance on value of property) and 52k-52x (retirement villages).

“(2) A reference in this Act to the value of a particular asset of a person is, if the asset is owned by the person jointly or in common with another person or persons, a reference to the value of the person’s interest in the asset.

“(3) A reference in this Act to the value of a charge or encumbrance on an asset of a person is, if the asset is owned by the person jointly or in common with another person or persons, a reference to the value of that charge or encumbrance in so far as it relates to the person’s interest in the asset.

  1. (a)

    must be in writing; and

  2. (b)

    may be given personally or by post; and

    1. (c)

      must specify the period within which the person is to give the information to the Department or specified officer.

“(5) The period specified under paragraph (4) (c) must end at least 14 days after:

  1. (a)

    the day on which the event or change of circumstances occurs; or

  2. (b)

    the day on which the person becomes aware that the event or change of circumstances is likely to occur.

“(6) A person must not refuse or fail to comply with a notice under subsection (1) to the extent that the person is capable of complying with the notice.

Penalty: $1,000 or imprisonment for 6 months, or both.

“(7) A person must not, in purporting to comply with a notice under subsection (1), knowingly give information that is false or misleading in a material particular.

Penalty: $2,000 or imprisonment for 12 months, or both.

Secretary may require recipient to give particular information relevant to the payment of pension

“54a. (1) The Secretary may give a person:

  1. (a)

    to whom a service pension is being paid; or

    1. (b)

      whose claim or application for a service pension is under consideration by the Commission or the Administrative Appeals Tribunal; or

  2. (c)

    who is receiving fringe benefits under Division 15;

a notice that requires the person to give the Department, or an officer specified in the notice, a statement about a matter that might affect:

  1. (d)

    the payment to the person of the service pension; or

  2. (e)

    the provision of fringe benefits under Division 15.

“(2) A person referred to in paragraph (1) (a) includes a person to whom the whole or a part of a service pension is being paid for the purpose of being applied for the benefit of a pensioner.

“(3) A notice under subsection (1):

  1. (a)

    must be in writing; and

  2. (b)

    may be given personally or by post; and

    1. (c)

      must specify the period within which the person is to give the information to the Department or specified officer.

“(4) The period specified under paragraph (3) (c) must end at least 14 days after the day on which the notice is given.

“(5) A statement given in response to a notice under subsection (1) must be in writing and in accordance with a form approved by the Commission.

“(6) A person must not refuse or fail to comply with a notice under subsection (1) to the extent that the person is capable of complying with the notice.

Penalty: $1,000 or imprisonment for 6 months, or both.

“(7) A person must not, in purporting to comply with a notice under subsection (1), knowingly give information that is false or misleading in a material particular.

Penalty: $2,000 or imprisonment for 12 months, or both.

Document served with a section 54 notice

“54b. (1) A notice under subsection 54 (1) is taken to specify an event or change of circumstances if:

  1. (a)

    the notice refers to a document that sets out the event or change of circumstances; and

  1. (b)

    a copy of the document is given to the person with the notice.

“(2) If a notice specifies an event or change of circumstances by reference to a document under subsection (1), the notice may specify the period within which a person is to give the information to the Department or specified officer by reference to the period set out in the document for notification of the event or change of circumstances.

Interpretation

“54c. In this Division:

‘officer’ means a person performing duties, or exercising powers or functions, under or in relation to this Act;

‘person’ includes an unincorporated body.

“Division 17Pensioners in certain institutions

“Subdivision AImprisonment

Service pension may be suspended or forfeited when pensioner in gaol

“55. (1) Subject to subsections (2) and (3), if a person who is receiving a service pension goes to gaol, the Commission may direct that a pension instalment or instalments that would otherwise be payable while the person is in gaol are to be forfeited or suspended.

Note 1: although the person is not receiving the pension while the instalments are suspended or forfeited, the person may be able to receive treatment at Departmental expense if a determination is in force under subsection 53d (3). 55 (1) or 85 (8).

Note 2: while the instalments are suspended or forfeited, the person is not entitled to fringe benefits because the person is not ‘receiving a service pension’ unless a determination is in force under subsection 53d (3), 55 (1) or 85 (8).

“(2) A direction under subsection (1) can only be given in relation to an instalment for a payday that occurs:

  1. (a)

    after the first payday after the day on which the person goes to gaol; and

  2. (b)

    before the last payday before the day on which the person is released from gaol.

Note: this subsection has the effect of putting short-term imprisonments (e.g. 14 days) outside the scope of this section.

“(3) Subsection (1) does not apply to so much of an instalment as has been redirected under a direction given under section 55a.

“(4) For the purposes of this section, a person is in gaol if the person is imprisoned in connection with the person’s conviction for an offence.

Note: this section is not intended to apply to a pensioner who is in custody pending trial or sentencing.

Instalments may be redirected to partner or child

“55a. (1) If:

  1. (a)

    an instalment of a person’s service pension would, but for this section, be suspended or forfeited under section 55; and

  1. (b)

    the person has a partner or a child;

the Commission may direct that the whole, or a specified part, of the instalment is to be paid to:

  1. (c)

    the partner; or

  2. (d)

    the child; or

  3. (e)

    someone else approved by the Commission.

“(2) A payment made under paragraph (1) (e) is to be applied for the benefit of the partner or the child.

“(3) If a payment is made under subsection (1) to the partner or a child of the person who is in gaol, the payment is to be taken, for all the purposes of this Act, to be a payment made to the person in gaol.

Note: this subsection has the effect that the person is receiving the service pension on a payday if the instalment for that payday has been wholly or partly redirected under this section: the person may, for instance, be eligible for fringe benefits or for treatment at Departmental expense. This person is not eligible for another income support payment.

“Subdivision BBenevolent homes

Application of Subdivision

“55b. (1) This Subdivision applies to a person if:

  1. (a)

    the person is receiving a service pension; and

  2. (b)

    the person is an inmate of a benevolent home; and

    1. (c)

      the person is not undergoing treatment in the home for pulmonary tuberculosis.

“(2) While a person to whom this Subdivision applies is an inmate of the benevolent home, the person’s pension is to be dealt with under:

(a) section 55c if the person is a male service pensioner and:

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

(ii) the person’s pension rate includes a child add-on or child add-ons; or

(b) section 55d in any other case.

Note: for ‘child add-on’ see section 5q.

Inmate of benevolent home—male, partnered, with child add-on

“55c. (1) If:

(a) a person to whom this Subdivision applies is male and partnered; and

(b) the person’s pension rate includes a child add-on or child add-ons;

this is how the person’s pension is to be dealt with while the person is an inmate of the benevolent home:

  1. (c)

    so much of the person’s service pension as does not exceed the dependent child add-on (or the sum of the dependent child add-ons) is to be paid to the person’s partner: the balance (if any) is called the child reduced balance;

  2. (d)

    so much of the child reduced balance (if any) as does not exceed the pensioner contribution is to be paid to the person who controls the benevolent home: the balance (if any) is called the contribution reduced balance;

  3. (e)

    the contribution reduced balance (if any) is to be paid to the pensioner.

Note: for ‘pensioner contribution’ see section 55e.

“(2) Amounts paid under paragraph (1) (d) are to be used for the maintenance of the person in the benevolent home.

Inmate of benevolent homeother cases

“55d. (1) If a person to whom this Subdivision applies is not a male, partnered pensioner whose pension rate includes a child add-on, this is how the person’s pension is to be dealt with while the person is an inmate of the benevolent home:

  1. (a)

    so much of the person’s service pension as does not exceed the pensioner contribution is to be paid to the person who controls the benevolent home: the balance (if any) is called the contribution reduced balance;

  2. (b)

    the contribution reduced balance (if any) is to be paid to the pensioner.

“(2) Amounts paid under paragraph (1) (a) are to be used for the maintenance of the person in the benevolent home.

Pensioner contribution

“55e. (1) For the purposes of this Subdivision, the pensioner contribution is, subject to subsection (2), 364 times the amount in force from time to time for the purposes of subparagraph 47 (2) (b) (iii) of the National Health Act 1953.

“(2) If the amount worked out under subsection (1) is not a multiple of $2.60, the pensioner contribution is the next lower amount that is a multiple of $2.60.

“Division 18Variation and termination

Automatic termination—recipient complying with section 54 notification obligations

“56. (1) Where:

  1. (a)

    a person who is receiving a service pension is given a notice under section 54; and

  2. (b)

    the notice requires the person to inform the Department or a specified officer of the occurrence of an event or change in circumstances within a specified period (in this section called the ‘notification period’); and

  1. (c)

    the event or change in circumstances occurs; and

    1. (d)

      the person informs the Department or specified officer of the occurrence of the event or change in circumstances within the notification period in accordance with the notice; and

    2. (e)

      because of the occurrence of the event or change in circumstances:

      (i) the person ceases to be eligible for the pension; or

      (ii) the pension would, but for this section, cease to be payable to the person;

the pension continues to be payable to the person until the end of the notification period and then ceases to be payable to the person.

“(2) If the person ceases to be eligible for the pension under subsection (1), the pension is cancelled.

Note 1: if the person informs the Department within the notification period, of an event or change in circumstances that reduces the rate of the person’s pension, there is no automatic rate reduction and a determination under section 56d must be made in order to bring the rate reduction into effect.

Note 2: if a service pension ceases to be payable to a person under this section, the person’s eligibility for fringe benefits (including treatment at Departmental expense) also ceases.

Automatic termination—recipient not complying with section 54 notification obligations

“56a. (1) Where:

  1. (a)

    a person who is receiving a service pension is given a notice under section 54; and

  2. (b)

    the notice requires the person to inform the Department or a specified officer of the occurrence of an event or change in circumstances within a specified period (in this section called the ‘notification period’); and

  1. (c)

    the event or change in circumstances occurs; and

    1. (d)

      the person does not inform the Department or specified officer of the occurrence of the event or change in circumstances within the notification period in accordance with the notice; and

      (e) because of the occurrence of the event or the change in circumstances:

(i) the person ceases to be eligible for the pension; or

(ii) the pension ceases to be payable to the person;

the pension ceases to be payable to the person immediately after the day on which the event or change in circumstances occurs.

“(2) If the person ceases to be eligible for the pension under subsection (1), the pension is cancelled.

Note: if a service pension ceases to be payable to a person under this section, the person’s eligibility for fringe benefits (including treatment at Departmental expense) also ceases.

Automatic rate reduction—recipient not complying with section 54 notification obligations

“56b. Where:

  1. (a)

    a person who is receiving a service pension is given a notice under section 54; and

  2. (b)

    the notice requires the person to inform the Department or a specified officer of the occurrence of an event or change in circumstances within a specified period (in this section called the ‘notification period’); and

  1. (c)

    the event or change in circumstances occurs; and

    1. (d)

      the person does not inform the Department or specified officer of the occurrence of the event or change in circumstances within the notification period in accordance with the notice; and

    2. (e)

      because of the occurrence of the event or change in circumstances, the person’s rate of pension is to be reduced;

the pension becomes payable to the person at the reduced rate immediately after the day on which the event or change in circumstances occurs.

Rate increase determination

“56c. (1) If the Commission is satisfied that the rate at which a service pension is being, or has been, paid is less than the rate provided for by this Act, the Commission may determine that the rate is to be increased to the rate specified in the determination.

Note: for the date of effect of a determination under this section see section 56g.

“(2) A determination under subsection (1) must be in writing.

Rate reduction determination

“56d. (1) If the Commission is satisfied that the rate at which service pension is being, or has been, paid is more than the rate provided for by this Act, the Commission may determine that the rate is to be reduced to the rate specified in the determination.

Note 1: a determination under this section is not necessary in a case where an automatic rate reduction is produced by section 56b.

Note 2: for the date of effect of a determination under this section, see section 56h.

“(2) A determination under subsection (1) must be in writing.

Cancellation and suspension determination

“56e. (1) If the Commission is satisfied that a service pension is being, or has been, paid to a person to whom it is not, or was not, payable under this Act, the Commission may determine that the pension is to be cancelled or suspended.

Note 1: a determination under this section is not necessary in a case where an automatic termination is produced by section 56 or 56a.

Note 2: for the date of effect of a determination under this section, see section 56h.

Note 3: when a person’s pension is suspended under section 56e, the provision of fringe benefits (see Division 15) to the person is generally suspended too. However, the Commission may decide that the person can continue to receive medical treatment under section 53d or Part V (see subsection 85 (8)).

Note 4: when a person’s pension is cancelled under section 56e, the person’s fringe benefits (including treatment at Departmental expense) are also cancelled.

“(2) A determination under subsection (1) must be in writing.

Resumption of payment after suspension

“56f. If the Commission:

  1. (a)

    suspends a person’s service pension under section 56f; and

(b)

later becomes satisfied that the pension is payable to the person; the Commission may end the suspension, by determination in writing.

Note: for the date of effect of a determination under this section, see section 56g.

Date of effect of favourable determination

“56g. (1) The day on which a determination under section 56c or 56f (in this section called the ‘favourable determination’) takes effect is worked out in accordance with this section.

Notified change of circumstances

“(2) If:

  1. (a)

    the favourable determination is made following a person having advised the Department of a change of circumstances; and

  2. (b)

    the change is not a decrease in the rate of the person’s maintenance income;

the determination takes effect on the first pension payday after the day on which the advice was received or on the day on which the change occurred, whichever is the later.

Note: if the change of circumstances is a decrease in the rate of the person’s maintenance income, see subsection (3) of this section and also Division 13 (General provisions relating to the maintenance income test).

Other determinations

“(3) In any other case, the favourable 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.

Date of effect of adverse determination

General

“56h. (1) The day on which a determination under section 56d or 56e (in this section called the ‘adverse determination’) takes effect is worked out in accordance with this section.

“(2) The adverse determination takes effect on:

  1. (a)

    the day on which the determination is made; or

  2. (b)

    if another day is specified in the determination—on that day.

“(3) Subject to subsections (4), (5) and (6), the day specified under paragraph (2) (b) must be later than the day on which the determination is made.

Contravention of Act

“(4) If the adverse determination is made because a person has contravened a provision of this Act (other than subsection 54 (6) or 128 (4)) the day specified under paragraph (2) (b) may be earlier than the day on which the determination is made.

False statement or misrepresentationsuspension or cancellation

“(5) If:

  1. (a)

    a person has made a false statement or misrepresentation; and

    1. (b)

      because of the false statement or misrepresentation, any amount of a service pension has been paid to a person which should not have been paid;

the day specified under paragraph (2) (b) may be earlier than the day on which the determination is made.

False statement or misrepresentationrate reduction

“(6) If:

  1. (a)

    a person has made a false statement or misrepresentation; and

    1. (b)

      because of the false statement or misrepresentation, the rate at which a service pension was paid to a person was more than it should have been;

the day specified under paragraph (2) (b) may be earlier than the day on which the determination is made.

Pension may be cancelled at pensioner’s request

“56j. (1) The Commission may cancel a person’s age service pension, invalidity service pension or wife service pension if the person requests the Commission to do so.

“(2) A request under subsection (1) must be in writing.

Note: if the Commission cancels a veteran’s age service pension or invalidity service pension and the veteran’s partner receives a wife service pension, the wife service pension will also be terminated (under section 56e). Similarly, if a person has been receiving carer service pension because of caring for the veteran, that carer service pension will also be terminated.

Pension may be cancelled or suspended if Secretary loses contact with pensioner

“56k. If the Commission is unable to make payments of age service pension, invalidity service pension or wife service pension to a service pensioner for a continuous period of 6 months, the Commission may cancel or suspend the service pension.

Note 1: an example where this section is intended to apply is where a person has closed his or her bank account and cannot be contacted to make new banking or other arrangements for payment of the person’s service pension.

Note 2: if the Commission cancels or suspends a veteran’s age service pension or invalidity service pension and the veteran’s partner receives a wife service pension, the wife service pension will also be terminated (under section 56f). Similarly, if a person has been receiving carer service pension because of caring for the veteran, that carer service pension will also be cancelled or suspended.

Commission may end suspension

“56l. (1) If the Commission suspends a service pension under section 56k, it may end the suspension at any time.

“(2) The Commission may determine that the end of the suspension takes effect:

  1. (a)

    from the date the suspension occurred; or

  2. (b)

    such later date as the Commission thinks proper.

“Division 19Review of decisions

Claimants and service pensioners may seek review of certain decisions

“57. (1) A claimant who is dissatisfied with a decision of the Commission:

  1. (a)

    in relation to a claim for a qualifying service determination under section 35b; or

  1. (b)

    in relation to a claim for a service pension; or

(c) in relation to a request under section 52y (financial hardship); may request the Commission to review the decision.

“(2) A service pensioner who is dissatisfied with a decision of the Commission:

  1. (a)

    cancelling or suspending a service pension; or

  2. (b)

    terminating the suspension of a service pension; or

  3. (c)

    reducing or increasing the rate of a service pension; or

    1. (d)

      refusing an application for an increase in the rate of a service pension; or

(e) in relation to a request under section 52y (financial hardship); may request the Commission to review the decision.

Application for review

“57a. (1) A request for review of a decision under section 57 must:

  1. (a)

    be made within 3 months after the person seeking review was notified of the decision; and

  1. (b)

    set out the grounds on which the request is made; and

  2. (c)

    be in writing.

“(2) If a request for review of a decision is made in accordance with subsection (1) the Commission must review the decision.

“(3) If the Commission has delegated its powers under this section to the person who made the decision under review, that person must not review the decision.

Commission’s powers where request for review

“57b. (1) If the Commission reviews a decision under this Division, the Commission must affirm the decision or set it aside.

“(2) If the Commission sets the decision aside it must, subject to subsection (3), substitute a new decision in accordance with this Act.

“(3) If the decision set aside is:

  1. (a)

    a decision to cancel, suspend or reduce the rate of a service pension under section 56d or 56e; or

  2. (b)

    a decision to increase the rate of a service pension under section 56c;

the Commission need not substitute another decision.

Note: for the Commission’s evidence-gathering powers see section 57f.

Date of effect of certain review decisions

“57c. (1) If the Commission sets aside a decision and substitutes for it a decision:

  1. (a)

    granting a claim for service pension; or

  2. (b)

    increasing the rate of a service pension;

the substituted decision takes effect from a date specified by the Commission.

“(2) The date specified by the Commission under subsection (1) must not be earlier than the date from which the Commission could have granted the claim, or increased the rate, when the original decision was made.

“(3) If the Commission sets aside a decision to suspend a service pension, the Commission may end the suspension from a date specified by the Commission, which may be a date earlier than the date of the Commission’s decision to set aside the suspension.

Commission must make written record of review decision and reasons

“57d. (1) When the Commission reviews a decision under this Division it must make a written record of its decision upon review.

“(2) The written record must include a statement that:

  1. (a)

    sets out the Commission’s findings on material questions of fact; and

  2. (b)

    refers to the evidence or other material on which those findings are based; and

  1. (c)

    provides reasons for the Commission’s decision.

Person who requested review to be notified of decision

“57e. (1) When the Commission affirms or sets aside a decision under this Division it must give the person who requested the review of the decision:

  1. (a)

    a copy of the Commission’s decision; and

    1. (b)

      subject to subsection (2), a copy of the statement about the decision referred to in subsection 57d (2); and

    2. (c)

      if the person has a right to apply to the Administrative Appeals Tribunal for a review of the Commission’s decision—a statement giving the person particulars of that right.

“(2) If the statement referred to in paragraph (1) (b) contains any matter that, in the opinion of the Commission:

  1. (a)

    is of a confidential nature; or

    1. (b)

      might, if communicated to the person who requested review, be prejudicial to his or her physical or mental health or well-being;

the copy given to the person is not to contain that matter.

Powers of Commission to gather evidence

“57f. (1) The Commission or the Commission’s delegate may, in reviewing a decision under this Division:

  1. (a)

    take evidence on oath or affirmation for the purposes of the review; and

  1. (b)

    adjourn a hearing of the review from time to time.

“(2) The presiding member of the Commission or the Commission’s delegate may, for the purposes of the review:

  1. (a)

    summon a person to appear at a hearing of the review to give evidence and to produce such documents (if any) as are referred to in the summons; and

  2. (b)

    require a person appearing at a hearing of the review for the purpose of giving evidence either to take an oath or to make an affirmation; and

  1. (c)

    administer an oath or affirmation to a person so appearing.

“(3) The person who applied for the review under this Division is a competent and compellable witness upon the hearing of the review.

“(4) The oath or affirmation to be taken or made by a person for the purposes of this section is an oath or affirmation that the evidence that the person will give will be true.

“(5) The Commission’s power under paragraph (1) (a) to take evidence on oath or affirmation:

(a) may be exercised on behalf of the Commission by:

(i) the presiding member or the Commission’s delegate; or

(ii) by another person (whether a member or not) authorised by the presiding member or the Commission’s delegate; and

  1. (b)

    may be exercised within or outside Australia; and

    1. (c)

      must be exercised subject to any limitations specified by the Commission.

“(6) Where a person is authorised under subparagraph (5) (a) (ii) to take evidence for the purposes of a review, the person has:

  1. (a)

    all the powers of the Commission under subsection (1); and

(b)

all the powers of the presiding member under subsection (2); for the purposes of taking that evidence.

“(7) In this section:

‘Commission’s delegate’ means a person to whom the Commission has delegated its powers under section 57a and who is conducting the review in question.

Withdrawal of request for review

“57g. (1) A person who requests a review under section 57 may withdraw the request at any time before it is determined by the Commission.

“(2) To withdraw the request, the person must give written notice of withdrawal to the Secretary and the notice must be lodged at an office of the Department in Australia.

“(3) Subject to section 57a, a person who withdraws a request for review may subsequently make another request for review of the same decision.

Note: section 57a provides that a person who wants to request a review of a decision must do so within 3 months after the person has received notice of the decision.

Commission may reimburse certain expenses

“57h. (1) When the Commission, upon review of a decision under this Division:

(a) grants a claim for a qualifying service determination or a service pension; or

(b) sets aside a decision to cancel or suspend a service pension;

the Commission may pay to the person who requested the review an amount in respect of expenses incurred by the person in providing for the production of certificates, reports or other documents from a medical practitioner, or from a hospital or similar institution in which he or she had received medical treatment.

“(2) Subsection (1) applies only in relation to certificates, reports or documents reasonably used for the purposes of the review.

“(3) The amount that may be paid under subsection (1) is to be calculated in accordance with the scale approved by the Commission for the purposes of subsection 19 (8).

“Division 20Administration of pension payments

“Subdivision AGeneral administration of pension payments

Payment by instalments

“58. Subject to section 58l, a fortnightly instalment of service pension is payable to a person on each pension payday on which:

  1. (a)

    the person is eligible for the pension; and

  2. (b)

    the pension is payable to the person.

Calculation of amount of fortnightly instalment

“58a. (1) The amount of a fortnightly instalment of service pension is the amount worked out by dividing the amount of the annual rate of the pension by 26.

“(2) If the amount that is payable to a person on a pension payday is not a multiple of 10 cents, the amount is, subject to subsection (3), to be increased or decreased to the nearest multiple of 10 cents.

“(3) If the amount that is payable to a person on a pension payday is a multiple of 5 cents, the amount is to be increased by 5 cents.

“(4) If, apart from this subsection, the amount of a fortnightly instalment of service pension would be less than $1.00, the amount of the instalment is to be increased to $1.00.

Effect on instalments of back-dating claim

“58b. If:

  1. (a)

    on a particular day (in this section called the ‘claim day’) a person makes a claim for a service pension in accordance with the form approved by the Commission; and

  2. (b)

    the Commission approves payment of the pension to the person from and including a day that occurs before the claim day (because of section 36b, 37b, 38b or 39b);

any instalment of service pension that would, but for this section, be payable to the person before the claim day is payable to the person:

  1. (c)

    if the claim day was a pension payday—on that day; or

  2. (d)

    the first pension payday after the claim day.

Note: sections 36b, 37b, 38b and 39b deal with certain informal or incorrect claims.

Manner of payment

“58c. A person’s service pension is, subject to sections 58d and 58l and sections 202 to 202b, to be paid:

  1. (a)

    to that person; and

  2. (b)

    in the manner determined by the Commission.

Agents

“58d. (1) The Commission may approve payment of a service pensioner’s service pension to another person if:

  1. (a)

    the service pensioner requests the Commission, in writing, to pay the pension to that person; and

  2. (b)

    the Commission is satisfied that that person has agreed to receive payment as agent of the service pensioner.

“(2) An approval under subsection (1):

  1. (a)

    must be in writing; and

  2. (b)

    must specify the person to whom the pension is to be paid; and

    1. (c)

      must specify the period for which the pension is to be paid to that person.

“(3) If a payment of pension is made to a person in accordance with an approval under subsection (1):

  1. (a)

    the payment is, for all purposes, to be taken to be a payment of the pension to the service pensioner; and

  2. (b)

    neither the Commonwealth nor the Commission is bound to oversee the application of the payment by the person; and

  3. (c)

    the person is to be taken to receive the payment as agent for the service pensioner.

Pension payday falling on public holiday etc.

“58e. If an amount of service pension that would normally be paid on a particular day cannot reasonably be paid on that day (because, for example, it is a public holiday or a bank holiday), the amount may be paid on an earlier day.

Payment into bank account etc.

“58f. (1) The Commission may direct that the whole or a part of the amount of a person’s service pension is to be paid, at the intervals that the Commission specifies, to the credit of an account with a bank, credit union or building society.

“(2) The account must be an account nominated and maintained by the person to whom the service pension is payable.

“(3) The account may be an account that is maintained by a person to whom the service pension is payable jointly or in common with another person.

“(4) If the Commission gives a direction under subsection (1), the service pension is to be payable in accordance with the direction.

Service pension to be absolutely inalienable

“58g. Subject to sections 58h and 58j, service pension is absolutely inalienable, whether by way of, or in consequence of, sale, assignment, charge, execution, bankruptcy or otherwise.

Payments to Commissioner of Taxation at pensioner’s request

“58h. (1) The Commission may make deductions from instalments of service pension payable to a person if the recipient requests the Commission to make those deductions for payment to the Commissioner of Taxation.

“(2) If deductions are made under subsection (1), the amounts deducted are to be paid to the Commissioner of Taxation.

Payments to Commissioner of Taxation—section 218 Income Tax Assessment Act

“58j. The Commission must, in accordance with section 218 of the Income Tax Assessment Act, for the purposes of enabling the collection of tax that is, or may become, payable by a recipient of a service pension:

  1. (a)

    make deductions from instalments of the pension payable to the recipient; and

  1. (b)

    pay the amount deducted to the Commissioner of Taxation.

“Subdivision BPayment of service pension outside Australia

Age, invalidity and wife service pensions generally portable

“58k. (1) A person’s right to commence, or to continue, to be paid:

  1. (a)

    an age service pension; or

  2. (b)

    an invalidity service pension; or

  3. (c)

    a wife service pension;

granted to the person is not affected by the fact that the person leaves Australia.

Note: although a service pensioner can leave Australia and continue to receive the pension, the following need to be noted:

  1. (a)

    rent assistance is not payable to a person who is outside Australia;

    1. (b)

      if the person is being looked after by a carer, carer service pension will not be paid while the carer is outside Australia (see subsection (2)).

“(2) A carer service pension is not payable to a person who is outside Australia.

“(3) Subsection (1) has effect subject to section 58m (claim based on short-term residence).

Payment of service pension outside Australia

“58l. If a service pension is payable to a person who is physically outside Australia, the pension may be paid:

  1. (a)

    in the manner determined by the Commission; and

  2. (b)

    in the instalments determined by the Commission.

No portability if claim based on short-term residence

“58m. (1) If:

  1. (a)

    a person is an Australian resident; and

  2. (b)

    the person ceases to be an Australian resident; and

  3. (c)

    the person again becomes an Australian resident; and

  4. (d)

    the person makes a claim for:

    (i) an age service pension; or

    (ii) an invalidity service pension; or

    (iii) a wife service pension; and

    (e) the claim is made within the period of 12 months after the person again became an Australian resident; and

    (f) the person leaves Australia before the end of that period of 12 months; and

    (g) there is no determination in respect of the person under subsection (2);

a service pension granted on the basis of that claim is not payable to the person while the person is outside Australia.

“(2) The Commission may determine that subsection (1) is not to apply to a person if the Commission considers that the person’s reasons for leaving Australia before the end of the 12 month period arose from circumstances that could not be reasonably foreseen when the person returned to Australia.

“(3) A determination under subsection (2) must be by instrument in writing.

“Transfer” to portable pension

“58n. If:

(a) a person who is outside Australia is receiving:

(i) an age service pension; or

(ii) an invalidity service pension; or

(iii) a wife service pension; or

(iv) a social security pension (other than a sheltered employment allowance or rehabilitation allowance); and

(b) the pension is cancelled or ceases to be payable automatically; and

(c) immediately after the cancellation or cessation, the person is eligible for:

(i) an age service pension; or

(ii) an invalidity service pension; or

(iii) a wife service pension;

the pension referred to in paragraph (c) may be granted to the person as if the person were an Australian resident and in Australia.”.

NOTE

1. 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; and No. 2, 1991.

[Minister’s second reading speech made in

House of Representatives on 11 April 1991

Senate on 28 May 1991

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