Veterans’ Entitlements (Exemption Notices for Special Disability Trusts) Guidelines 2006 (Cth)

Veterans’ Entitlements (Exemption Notices for Special Disability Trusts) Guidelines 2006

Families, Community Services and Indigenous Affairs and Other Legislation (2006 Budget and Other Measures) Act 2006

The REPATRIATION COMMISSION makes these Guidelines under subitem 33 (5) of Schedule 7 to the Families, Community Services and Indigenous Affairs and Other Legislation (2006 Budget and Other Measures) Act 2006.

Dated 7 November  2006

Mark Sullivan   Ed Killesteyn    Simon Harrington

President   Deputy President   Commissioner

1. Name of Guidelines

These Guidelines are the Veterans’ Entitlements (Exemption Notices for Special Disability Trusts) Guidelines 2006.

1. Commencement

These Guidelines commence on the day after they are registered.

1. Definitions

In these Guidelines:

2006 Budget and Other Measures Act means the Families, Community Services and Indigenous Affairs and Other Legislation (2006 Budget and Other Measures) Act 2006.

Act means the Veterans’ Entitlements Act 1986.

Commission has the meaning given by section 5A of the Act.

exemption notice has the same meaning as in paragraph 33 (1) (a) of Schedule 7 to the 2006 Budget and Other Measures Act.

principal beneficiary, of a special disability trust, has the meaning given by subsection 5Q (1) of the Act.

special disability trust has the meaning given by subsection 5Q (1) of the Act.

trust means a trust, created before 20 September 2006, that can be a special disability trust despite its failure to comply with a requirement of Division 11B of Part IIIB of the Act concerning a particular matter.

1. Whether or not to give exemption notices

The Commission may decide to give an exemption notice to the trustees of a trust if the Commission is satisfied of the following matters:

(a)    the trust is a protective trust;

(b)    the principal beneficiary of the trust meets the requirements of subsection 52ZZZWA (2) or (4) of the Act;

(c)    if necessary, the trust deed for the trust can be varied to comply with a determination made by the Commission under subsection 52ZZZWC (2) of the Act.

1. Conditions to include in exemption notices

(1)   In deciding what conditions to include in an exemption notice that is to be given to the trustees of a trust, the Commission must consider the need to include a condition requiring the trustees to ensure that the trust deed for the trust complies with a determination made by the Commission under subsection 52ZZZWC (2) of the Act.

(2)   A condition mentioned in subsection (1) may require the trustees of the trust to take particular action in relation to the trust deed, including the following:

(a)    varying the trust deed to provide that the beneficiary to whom subsection 52ZZZWA (2) or (4) of the Act applies is the only beneficiary of the trust, not including any residuary beneficiary;

(b)    varying the trust deed to provide that the income that the trust derives and the assets of the trust may be used only:

(i)    to meet reasonable care and accommodation needs of the principal beneficiary; or

(ii)    for purposes, ancillary to meeting the reasonable care and accommodation needs of the principal beneficiary, that are necessary or desirable to facilitate the meeting of those needs.

1. Periods for compliance with conditions in exemption notices

A period stated in an exemption notice for the purpose of paragraph 33 (1) (b) of Schedule 7 to the 2006 Budget and Other Measures Act may be for a period beginning on or after 20 September 2006 and, in accordance with subitem 33 (2) of Schedule 7 to that Act, ending at or before the end of 30 June 2007.