Veterans’ Entitlements Amendment (Family Law Affected Income Streams) Principles 2019 (Cth)

Repatriation Commission

Veterans’ Entitlements Amendment (Family Law Affected Income Streams) Principles 2019

Instrument 2019 No. R33

The Repatriation Commission makes this instrument under section 46ZC and subsection 52BA(5) of the Veterans’ Entitlements Act 1986.

Dated this     13^th      of      June     2019

The Seal of the                           )
Repatriation Commission   ) SEAL
was affixed hereto in the   )
presence of:      )

……Elizabeth Cosson……	……Craig Orme……
ELIZABETH COSSON	CRAIG ORME
AM CSC	DSC AM CSC
PRESIDENT	DEPUTY PRESIDENT
……M A Kelly……	……D Spinks……
MAJOR GENERAL MARK KELLY	DONALD SPINKS
AO DSC	AM
COMMISSIONER	COMMISSIONER

1  Name

This instrument is the Veterans’ Entitlements Amendment (Family Law Affected Income Streams) Principles 2019.

2  Commencement

This instrument commences on 1 July 2019 immediately after the commencement of Schedule 1 of the Social Services and Other Legislation Amendment (Supporting Retirement Incomes) Act 2019.

3  Authority

This instrument is made under section 46ZC and subsection 52BA(5) of the Veterans’ Entitlements Act 1986.

4  Schedule

Each instrument that is specified in the Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule, and any other item in the Schedule to this instrument has effect according to its terms.

Schedule—Amendments

Veterans’ Entitlements (Family law affected income stream) Principles 2011

1  Subsection 1.3(1)

Insert:

assessment day, for a person’s family law affected income stream means:

(a)for an income stream that reverted to the person as a reversionary benefit—the person’s assessment day as defined in subsection 52BAB(7) of the Act;

(b)otherwise—the person’s assessment day as defined in subsection 52BAB(6) of the Act.

purchase amount, for a person’s family law affected income stream means:

(a)in relation to a day that is beginning on the person’s assessment day for the income stream and ending at the end of the person’s threshold day for the income stream—the purchase amount for the income stream as defined in paragraph 52BAB(3)(a) of the Act;

(b) in relation to a day that is after the person’s threshold day for the income stream—the purchase amount for the income stream as defined in paragraph 52BAB(3)(b) of the Act.

threshold day, for a person’s family law affected income stream means:

(a)for an income stream that reverted to the person as a reversionary benefit—the person’s threshold day as defined in subsection 52BAB(11) of the Act;

(b)otherwise—the person’s threshold day worked out using the method statement in subsection 52BAB(10) of the Act.

2  Subsection 1.3(1) (note)

Repeal the note, substitute:

Note 1       The definitions of assessment day, purchase amount and threshold day adopt formula and calculation methods in section 52BAB of the Act for the purpose of defining terms as they are used in these Principles. Section 52BAB of the Act does not apply to family law affected income streams.

Note 2 Several other words and expressions used in these Principles have the meaning given in Part 1.2 of the Act. For example:

• asset-tested income stream (long term) (subsection 5J(1))

• asset-tested income stream (short term) (subsection 5J(1))

• asset-test exempt income stream (subsection 5J(1) and sections 5JA, 5JB and 5JBA)

• commencement day (subsection 5J(1))

• deductible amount (subsection 5J(1))

• defined benefit income stream (subsections 5J(1) and (1E))

• family law affected income stream (subsection 5J(1) and section 5JC)

• income (subsection 5H(1))

• income stream (subsection 5J(1))

• original family law affected income stream (subsection 5J(1) and section 5JC)

• primary FLA income stream (subsection 5J(1) and section 5JC)

• purchase price (subsection 5J(1))

• relevant number (subsection 5J(1))

• residual capital value (subsection 5J(1))

• secondary FLA income stream (subsection 5J(1) and section 5JC)

• superannuation fund (subsection 5J(1)).

3  Subsection 1.3(2) (note)

Omit “90MD”, substitute “90XD”.

4  Part 4 (heading)

Repeal the heading, substitute:

Part 4   Asset value of asset-tested income streams (other than lifetime)

5  After Part 4

Insert:

Part 5   Income of asset-tested income streams (lifetime)

5.1       Application of Part

This Part applies to a family law affected income stream that is an asset-tested income stream (lifetime).

5.2       Income stream that is a family law affected income stream that is an asset-tested income stream (lifetime)

(1) For section 46ZC of the Act, the Commission must have regard to the following matters in making decisions under subsection 46ZBA(1) of the Act:

(a)        the matters mentioned in items 1 to 4 and 14 to 23 of Schedule 1;

(b)       any other matter that the Commission considers relevant in the circumstances.

(2)        If payments are being made from the income stream under more than 1 payment split, the Commission must have regard to each matter mentioned in subsection (1) that applies to each payment split.

Part 6   Asset value of asset-tested income streams (lifetime)

6.1       Application of Part

This Part applies to a family law affected income stream that is an asset-tested income stream (lifetime).

6.2       Income stream that is a family law affected income stream that is an asset-tested income stream (lifetime)

(1) For section 52BA of the Act, the Commission must have regard to the following matters in making decisions under subsection 52BA(2) or (3) of the Act:

(a)        the matters mentioned in items 1 to 4 and 14 to 25 of Schedule 1;

(b)       any other matter that the Commission considers relevant in the circumstances.

(2)        If payments are being made from the income stream under more than 1 payment split, the Commission must have regard to each matter mentioned in subsection (1) that applies to each payment split.

6  Schedule 1 (note to Schedule heading)

Omit “and 4.3(2)(a)”, substitute “, 4.3(2)(a), 5.2(1)(a) and 6.2(1)(a)”.

7  After item 23 of the table in Schedule 1

Insert:

24

If the member spouse has reached the assessment day in relation to the original family law affected income stream:

(a)    the member spouse’s assessment day in relation to the original family law affected income stream; and

(b)   the purchase amount of the original family law affected income stream; and

(c)    the member spouse’s threshold day in relation to the original family law affected income stream.

25

If the member spouse has not reached the assessment day in relation to the original family law affected income stream:

(a)    whether the non-member spouse has reached their assessment day in relation to the secondary FLA income stream; and

(b)   whether the non-member spouse has reached their threshold day in relation to the secondary FLA income stream; and

(c)    the purchase amount of the original family law affected income stream.