Invalid and Old-age Pensions Act 1941

Legislation au C1941A00048 Not in force Act

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INVALID AND OLD-AGE PENSIONS.

 

No. 48 of 1941.

An Act to amend the Invalid and Old-age Pensions Act 1908-1940, and for other purposes.

[Assented to 25th November, 1941.]

BE it enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—

Short title and citation.

1.—(1.) This Act may be cited as the Invalid and Old-age Pensions Act 1941.

(2.) The Invalid and Old-age Pensions Act 1908–1940 is in this Act referred to as the Principal Act.

(3.) The Principal Act, as amended by this Act, may be cited as the Invalid and Old-age Pensions Act 1908–1941.

Commencement.

2. This Act shall come into operation on the eleventh day of December, One thousand nine hundred and forty-one.

Definitions.

3. Section four of the Principal Act is amended by adding at the end thereof the following sub-section:—

“(2.) For the purposes of this Act a person shall be deemed to be permanently incapacitated for work if he is permanently incapable of work or if the degree of his capacity for work does not exceed Fifteen per centum.”.


Persons disqualified for old-age pensions.

4. Section sixteen of the Principal Act is amended by omitting from paragraph (c) of sub-section (1.) the words “born in Australia and Indians born in British India” and inserting in their stead the words “who are British subjects”.

Persons disqualified for invalid pensions.

5. Section twenty-one of the Principal Act is amended by omitting from paragraph (b) of sub-section (1.) the words “born in Australia and Indians born in British India” and inserting in their stead the words “who are British subjects”.

6. After section twenty-three of the Principal Act, the following section is inserted in Part IV.:—

Conditions of payment of invalid pension in certain canes.

“23a. Subject to this Act, the Commissioner, having regard to the age and the mental and physical capacity of any claimant for an invalid pension or of any invalid pensioner and to the facilities available for suitable training for a vocation or physical rehabilitation, may direct that a pension shall not be granted, or that a pension shall not be continued, unless the claimant or pensioner undertakes such training:

Provided that, in any such case, where the claimant or pensioner undertakes suitable training for a vocation or physical rehabilitation, or in any case where an invalid pensioner is already undergoing such training, the claimant or pensioner may be deemed, during the period of such training, to be permanently incapacitated for work for the purposes of section twenty of this Act.”.

Limit of pension.

7. Section twenty-four of the Principal Act is amended—

(a) by omitting sub-section (1.) and inserting in its stead the following sub-section:—

“(1.) Subject to this Act, the amount of a pension shall in each case be at such rate as, having regard to all the circumstances of the case, the Commissioner or Deputy Commissioner who determines the pension claim deems reasonable and sufficient, but shall not exceed the rate of Fifty-eight pounds ten shillings per annum.”;

(b) by omitting from sub-section (1a.) the words “Fifty-four pounds twelve shillings” (wherever occurring) and inserting in their stead the words “Fifty-eight pounds ten shillings”;

(c) by omitting sub-section (1b.);

(d) by omitting the proviso to sub-section (2.); and

(e) by adding at the end thereof the following sub-section:—

“(3.) The annual rate at which the amount of a pension is determined shall be reduced by the amount (if any) by which the pensioner’s income, apart from pension, exceeds Thirty-two pounds ten shillings per annum:

Provided that, in the case of a permanently blind person who is qualified under this Act to receive a pension, the annual rate at which the amount of the pension is


determined shall be reduced by the amount (if any) by which the income of the pensioner and of the pensioner’s wife (or husband), apart from pension, exceeds One hundred and seventy-five pounds ten shillings:

Provided further that the income of the husband or wife of a permanently blind person, where the husband and wife are living apart pursuant to any decree, judgment, order or deed of separation, or where there are special reasons which, in the opinion of the Commissioner, are adequate, shall not be taken into account in assessing the rate of pension payable to the blind person.”.

Assessment of value of accumulated property.

8. Section twenty-five of the Principal Act is amended by adding at the end of sub-section (1.) the following proviso and paragraph:—

“Provided that, if for any special reason the Commissioner is of opinion that this paragraph should not apply in any particular case, he may direct that it shall not apply:

(e) Notwithstanding anything contained in this Act, where any claimant or pensioner, or the husband or wife of a claimant or pensioner, possesses property which is subject to any incumbrance and which, in the opinion of the Commissioner, cannot be realized except at a considerable loss, the Commissioner may, in assessing the net capital value of his accumulated property, disregard the value of the interest of that person in the property.”.

Recommendation by magistrate.

9. Section thirty-one of the Principal Act is amended by omitting from sub-section (2.) the words “Six shillings and sixpence” and inserting in their stead the words “Seven shillings and threepence”.

Suspension of pension while pensioner in asylum, &c.

10. Section forty-five of the Principal Act is amended by omitting from the proviso the words “Six shillings and sixpence” and inserting in their stead the words “Seven shillings and threepence”.

Benevolent asylum Inmates.

11. Section forty-seven of the Principal Act is amended by omitting the words “Six shillings and sixpence” and inserting in their stead the words “Seven shillings and threepence”.

Adjustment of rates of pension payable to pensioners in asylums, &c.

12. Notwithstanding anything contained in the Principal Act, as amended by this Act—

(a) the maximum rate of pension per annum which shall apply from and including the eleventh day of December, One thousand nine hundred and forty-one until the day immediately prior to the due date of the first fortnightly instalment in the quarter ending on the thirtieth day of June, One thousand nine hundred and forty-two, shall be Sixty-one pounds two shillings; and


(b) the maximum rate of pension per week payable to a pensioner in pursuance of sub-section (2.) of section thirty-one, the proviso to section forty-five or section forty-seven of the Principal Act, as amended by this Act, from and including the eleventh day of December, One thousand nine hundred and forty-one until the day immediately prior to the due date of the first fortnightly instalment in the quarter ending on the thirtieth day of June, One thousand nine hundred and forty-two, shall be Seven shillings and ninepence.

Director-General of Social Services.

13.—(1.) Notwithstanding anything contained in the Principal Act, as amended by this Act, or in the Maternity Allowance Act 1912–1937 or the Child Endowment Act 1941, the Director-General of Social Services shall, subject to the control of the Minister, have the general administration of each of those Acts, and any reference in any of those Acts to the Secretary, Department of Social Services, shall be read as a reference to the Director-General of Social Services.

(2.) The Commissioner of Pensions and the Commissioner of Maternity Allowances shall exercise the powers and functions conferred on them respectively by any of the Acts specified in this section, subject to any directions of the Director-General of Social Services.

Overview

The Invalid and Old-age Pensions Act 1941 was enacted to amend the Invalid and Old-age Pensions Act 1908–1940, addressing the need for updates to pension eligibility criteria and payment conditions. This Act, assented to on 25th November 1941 by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, aimed to refine the definition of permanent incapacity for work, adjust disqualification criteria for pensions based on British subject status, and impose conditions for pension payments, such as requiring claimants to undertake training for a vocation or physical rehabilitation. Additionally, the Act introduced new limits on pension amounts and clarified the process for assessing the value of accumulated property, providing more flexibility for the Commissioner in exceptional circumstances. The policy objective of the Act was to ensure that pension provisions were fair, updated to reflect contemporary circumstances, and efficiently administered to support those in need. The amendments introduced by this Act provided clearer guidelines for determining pension eligibility and the conditions under which pensions could be granted or withheld, ensuring that the pension system remained relevant and effective in supporting the welfare of the community.

Scope and Application

The Invalid and Old-age Pensions Act 1941 applies to individuals in Australia who are seeking or receiving invalid or old-age pensions, as well as to the officers and officials responsible for administering the pension system. The Act amends the Invalid and Old-age Pensions Act 1908-1940 to update eligibility criteria, conditions for pension payments, and the rates of pensions payable. The amendments affect all individuals who are British subjects, thereby broadening the eligibility criteria beyond those born in Australia or British India. The Act also provides for the assessment of accumulated property and the suspension or adjustment of pensions under certain conditions, such as when a pensioner is in an asylum. The geographic reach of the Act is national, applying throughout the Commonwealth of Australia. The Act does not explicitly state any exclusions or exemptions, but certain provisions, such as the conditions for deeming a person permanently incapacitated for work or the calculation of pension rates based on income, inherently exclude some individuals from receiving pensions or receiving them at full rates. The application of the Act may be further extended or restricted through subordinate instruments, although the primary text does not specify these details.

Key Provisions

The Invalid and Old-age Pensions Act 1941 (referred to as the Act) amends the Invalid and Old-age Pensions Act 1908–1940 (referred to as the Principal Act). The Act introduces significant changes to the eligibility and conditions for pensions, including the definition of permanent incapacity for work (section 3), the disqualification criteria for old-age pensions (section 4), and the disqualification criteria for invalid pensions (section 5). Additionally, section 23A of the Act allows the Commissioner to direct that a pension will not be granted or continued unless the claimant or pensioner undertakes suitable training for a vocation or physical rehabilitation. Under the Act, the Commissioner or Deputy Commissioner is responsible for determining the reasonable and sufficient amount of a pension, which must not exceed Fifty-eight pounds ten shillings per annum (section 7). The Act also mandates that the annual rate of pension be reduced by the amount by which the pensioner’s income, apart from pension, exceeds Thirty-two pounds ten shillings per annum, with certain exceptions for permanently blind persons (section 7(3)). The Commissioner is given discretion to disregard the value of property that is subject to an incumbrance and cannot be realized except at a considerable loss when assessing the net capital value of accumulated property (section 8). The Act imposes obligations on the parties it governs, such as the requirement for claimants and pensioners to undertake suitable training for a vocation or physical rehabilitation (section 23A) and the requirement for the Commissioner to assess pension amounts based on the pensioner’s circumstances and income (section 7). The Act also outlines the circumstances under which a pension may be suspended, such as when the pensioner is in an asylum (section 10), and specifies the maximum rates of pension payable to pensioners in asylums (section 12). Breaches of the Act may result in civil or criminal consequences. For instance, failure to comply with the training requirements for pension payment may result in the denial or cessation of pension payments. The Act does not explicitly state penalties for non-compliance, but breaches of similar legislative provisions in other contexts can lead to fines, imprisonment, or both, depending on the severity and nature of the breach. The maximum penalties for such breaches would be in accordance with the general legislative framework governing administrative and penal law in Australia.

Legal classification tags

Area of Law
Social Security Law
Instrument
Act
Concepts
Commencement Provisions
Definitions & Interpretation
Reporting & Disclosure Obligations
Enforcement Powers
Assessment of value of accumulated property
Adjustment of rates of pension payable to pensioners in asylums, &c.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.