Veterans’ Entitlements Income (Exempt Lump Sum income received after end of market-linked income stream term) Determination No. R25 of 2004 (Cth)

Determination No. R25 of 2004

Repatriation Commission

Veterans’ Entitlements Act 1986

Veterans’ Entitlements Income (Exempt Lump Sum—income received after end of market-linked income stream term) Determination

Instrument No. R25/2004

I, JEANETTE RICKETTS, Branch Head, Income Support Branch, Department of Veterans’ Affairs, and delegate of the Repatriation Commission, determine, under paragraph 5H(12)(c) of the Veterans’ Entitlements Act 1986 (VEA), that an amount specified in Part 2 of the Schedule as an exempt lump sum is an exempt lump sum for the purposes of the definition of “ordinary income” in subsection 5H(1) of the VEA.

Dated this 23^rd day of December 2004.

………………………………….

(JEANETTE RICKETTS)

SCHEDULE

Part 1: Preliminary and Interpretation

1.1NAME OF DETERMINATION

This determination is the Veterans’ Entitlements Income (Exempt Lump Sum—income received after end of market-linked income stream term) Determination No. R25 of 2004.

1.2     COMMENCEMENT

This Determination commences on the day on which it is signed by the Commission delegate.

1.3     DEFINITIONS

In this Determination:

“market-linked income stream” means an asset-test exempt income stream which meets the requirements of subsection 5JBA(1) of the VEA.

“service pension” has the meaning given in subsection 5Q(1) of the VEA.

“income support supplement” means the payment called the income support supplement payable under Part IIIA of the VEA.

Part 2:       Amount determined to be an exempt lump sum

2.1     AMOUNT OR CLASS OF AMOUNTS

2.1.1Paragraph 5H(12)(c) of the VEA provides that the Commission may determine that an amount or class of amounts received by a person, is an exempt lump sum.

2.1.2If:

(a)    a person is a beneficiary of a market-linked income stream; and

(b)   after the payment of the final year’s annual payment from that market-linked income stream there is a residual balance in the relevant account; and

(c) clause 3 of Schedule 6 of the Superannuation Industry (Supervision) Regulations 1994 requires that the residual balance in the account of the market-linked income stream is to be paid to the beneficiary within 28 days of the end of the market-linked income stream’s term; and

(d)   the person is in receipt of service pension or income support supplement;

then any amount paid by the market-linked income stream to the person, in accordance with paragraph (c) above, is an exempt lump sum.

2.2     APPLICATION—EXEMPT LUMP SUMS

2.2.1An amount referred to in paragraph 2.1.2(c) received by a person referred to in section 2.1.2 is an exempt lump sum for the purposes of paragraph 5H(12)(c) of the VEA from the date that the amount was received.