Invalid and Old-age Pensions Act 1942

Legislation au C1942A00003 Not in force Act

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INVALID AND OLD-AGE PENSIONS.

 

No. 3 of 1942.

An Act to amend the Invalid and Old-age Pensions Act 1908-1941, and for other purposes.

[Assented to 18th May, 1942.]

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 1942.

(2.) The Invalid and Old-age Pensions Act 1908-1911 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 1908-1942.


Commencement.

2. Except as otherwise provided in this Act, this Act shall come into operation on the ninth day of July, One thousand nine hundred and forty-two.

Definitions.

3. Section four of the Principal Act is amended—

(a) by inserting after the definition of “Deputy Commissioner” the following definition:—

“‘Federal basic wage ‘means the’ amount ascertained by multiplying by fifty-two the sum of—

(a) the weekly needs basic wage (as declared by the Commonwealth Court of Conciliation and Arbitration, based on the weighted average of that Court’s ‘All Items’ retail price index numbers of the six State capital cities and as adjusted from time to time in accordance with the variations in those index numbers); and

(b) the amount of Five shillings.”; and

(b) by omitting the definitions of “Hospital” and “Relatives”.

Persons disqualified old-age pensions.”.

4. Section sixteen of the Principal Act is amended by inserting after sub-section (1.) the following sub-section:

“(1a.) Nothing in the last preceding sub-section shall apply to (a) an aboriginal native of Australia—

(i) who is for the time being exempt from the provisions of the law of the State or Territory of the Commonwealth in which he resides relating to the control of aboriginal natives; or

(ii) who resides in a State or Territory of the Commonwealth the law of which does not make provision for such exemption, and with respect to whom the Commissioner is satisfied that, by reason of the character, standard of intelligence and development of the aboriginal native, it is desirable that the last preceding sub-section should not apply to him; or

(b) an aboriginal native of an Island of the Pacific known as a ‘kanaka’. “.

Necessary conditions—old-age pensions.

5. Section seventeen of the Principal Act is amended—

(a) by adding at the end of paragraph (f) the word “and”; and

(b) by omitting paragraph (fb).

Persons disqualified invalid pensions.

6. Section twenty-one of the Principal Act is amended by inserting after sub-section (1.) the following sub-section:—

“(1a.) Nothing in the last preceding sub-section shall apply to—

(a) an aboriginal native of Australia—

(i) who is for the time being exempt from the provisions of the law of the State or Territory of the Commonwealth in which he resides relating to the control of aboriginal natives: or


(ii) who resides in a State or Territory of the Commonwealth the law of which does not make provision for such exemption, and with respect to whom the Commissioner “is satisfied that, by reason of the character, standard of intelligence and development of the aboriginal native, it is desirable that the last preceding sub-section should not apply to him; or

(b) an aboriginal native of an Island of the Pacific known as a ‘kanaka’.”.

Necessary conditions—invalid pensions.

7. Section twenty-two of the Principal Act is amended by omitting paragraph (h) of sub-section (1.) and inserting in its stead the following word and paragraph:—

“and (h) his parents do not, either severally or collectively, adequately maintain him.”.

Amount of pension.

8. Section twenty-three of the Principal Act is amended by omitting from sub-section (1.) the word “relatives” and inserting in its stead the words “parents, either severally or collectively,”.

Limit of pension.

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

(a) by omitting the words “ Fifty-eight pounds ten shillings” (wherever occurring) and inserting in their stead the words “Sixty-five pounds”;

(b) by omitting from paragraph (a) of sub-section (1a.) the figures “981” (wherever occurring) and inserting in their stead the figures “1053”;

(c) by omitting from paragraph (a) of sub-section (1a.) the words “twenty-three units or portion thereof” and inserting in their stead the words “twenty-one units”;

(d) by omitting from the first proviso to sub-section (3.) the words “One hundred and seventy-five pounds ten shillings” and inserting in their stead the words “the Federal basic wage”; and

(e) by inserting after the first proviso to sub-section (3.) the following proviso:—

“Provided further that where both a husband and his wife are permanently blind persons who are qualified under this Act to receive pensions, the annual rate at which the amount of the pension of each of them is determined shall be reduced by one-half of the amount (if any) by which the income of the pensioner and of the pensioner’s wife (or husband), apart from the pensions, exceeds the Federal basic wage:”.

Assessment of value of accumulated property.

10. Section twenty-five of the Principal Act is amended by emitting sub-sections (2.), (3.) and (4.).


Recommendation by Magistrate.

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

Payment of pension where pensioner in benevolent asylum.

12. Section forty a of the Principal Act is amended by omitting the words “or hospital” (wherever occurring).

13. After section forty-four of the Principal Act the following section is inserted:—

Pensions of aboriginal natives.

“44a.—(1.) Where, in the opinion of the Commissioner, it is desirable to do so, he may determine that the rate of pension payable to an aboriginal native of Australia shall be less than the maximum rate of pension.

“(2.) Where, in the opinion of the Commissioner, it is desirable to do so, he may direct that payment of the pension of an aboriginal native of Australia shall be made to an authority of a State or Territory of the Commonwealth controlling the affairs of aboriginal natives, or to some other authority or person whom the Commissioner considers to be suitable for the purpose, for the benefit of the pensioner and payment shall, until the direction is revoked, be made accordingly.”.

Suspension of pension while pensioner in hospital for the insane.

14. Section forty-five of the Principal Act is amended—

(a) by omitting the words “becomes an inmate of an asylum for the insane or a hospital” and inserting in their stead the words “has become or becomes an inmate of a hospital for the insane”;

(b) by omitting the words “any such asylum or hospital” and inserting in their stead the words “the hospital for the insane”; and

(c) by omitting the proviso.

Benevolent asylum inmates.

15. Section forty-seven of the Principal Act is amended—

(a) by inserting after the word “asylum” (first occurring) the words”, or if a pensioner becomes an inmate of a benevolent asylum,”; and

(b) by omitting the words “Seven shillings and threepence” and insuring in their stead the words “Eight shillings and sixpence”.

Adjustment of rates of pension payable to certain pensioners.

16. Section forty-seven a of the Principal Act is amended by omitting the words “, the proviso to section forty-five”.

17. Section fifty-four of the Principal Act is repealed and the following section inserted in its stead:—

Annual report to be prepared.

“54.—(1.) The Director-General of Social Services shall, within three months after the end of each financial year, prepare and furnish to the Minister, for presentation to the Parliament; a report, with statistics, as to the administration and operation of this Act.

“(2.) The report may deal with the administration and operation of any other Act administered by the Minister.”.


Adjustment of rates of pension.

18.—(1.) Notwithstanding anything contained in the Principal Act or in the Invalid and Old-age Pensions Act 1941—

(a) the maximum rate of pension per annum which shall apply from the second day of April, One thousand nine hundred and forty-two until the eighth day of July, One thousand nine hundred and forty-two (both dates inclusive), shall be Sixty-five pounds; 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 from the second day of April, One thousand nine hundred and forty-two until the eighth day of July, One thousand nine hundred and forty-two (both dates inclusive), shall be Eight shillings and sixpence.

(2.) This section shall come into operation on the day on which this Act receives the Royal Assent.

Overview

The Invalid and Old-age Pensions Act 1942 was enacted by the Commonwealth Parliament to amend the Invalid and Old-age Pensions Act 1908-1941, addressing several gaps and updating the pension system in response to changing social and economic conditions. This Act aimed to provide a more structured and equitable pension framework for the elderly and those unable to work due to invalidity. Among its key amendments, the Act introduced changes to the assessment of eligibility for pensions, particularly for Aboriginal Australians, and revised the calculation and payment of pension amounts, reflecting updated economic metrics such as the Federal basic wage. The policy objective was to ensure the pension system remained relevant and supportive of those in need, while also introducing measures to manage the financial sustainability of the pension scheme. The Act also provided for the Commissioner to have discretion in setting the rate of pension for Aboriginal Australians, reflecting an understanding of the unique circumstances and needs within this community. The amendments included adjustments to the maximum rates of pension, modifications to the conditions for pension eligibility and disqualification, and the introduction of provisions for the assessment of accumulated property. Additionally, the Act required the Director-General of Social Services to prepare an annual report on the administration and operation of the Act, enhancing accountability and transparency in the pension system.

Scope and Application

The Invalid and Old-age Pensions Act 1942 amends the Invalid and Old-age Pensions Act 1908-1941, which is referred to as the Principal Act in this Act, and provides for the payment of pensions to eligible individuals. This Act applies to individuals who are eligible for invalid or old-age pensions under the Principal Act. It provides for the amendment of the Principal Act in relation to the definition of terms, the eligibility of aboriginal natives of Australia and Pacific Islanders for pensions, the necessary conditions for receiving pensions, the amount and limit of pensions, and the payment of pensions where the pensioner is in a benevolent asylum or a hospital for the insane. The Act applies nationally across the Commonwealth of Australia and is not limited to any particular state or territory. There are specific exclusions and exemptions for aboriginal natives of Australia and Pacific Islanders, as well as provisions for the adjustment of pension rates. The Invalid and Old-age Pensions Act 1942 extends its application through subordinate instruments by providing for the amendment of the Principal Act in relation to the assessment of the value of accumulated property, the recommendation by a magistrate, and the payment of pension where the pensioner is in a benevolent asylum. The Act also provides for the adjustment of rates of pension payable to certain pensioners and the preparation of an annual report by the Director-General of Social Services on the administration and operation of the Act. The Act comes into operation on the ninth day of July, One thousand nine hundred and forty-two, except as otherwise provided in the Act.

Key Provisions

The Invalid and Old-age Pensions Act 1942 amends and updates the existing Invalid and Old-age Pensions Act 1908-1941, incorporating a series of changes to the administration, eligibility, and payment of pensions. Among the key provisions, section 4 amends the definitions of terms used in the Principal Act, including introducing the term "Federal basic wage," while removing outdated terms such as "Hospital" and "Relatives." Section 5 adjusts the necessary conditions for old-age pensions by excluding certain aboriginal natives from the disqualification criteria, as outlined in section 16 of the Principal Act. Section 6 does the same for invalid pensions, with amendments to section 21 of the Principal Act. Section 7 modifies the criteria for invalid pensions by requiring that a pensioner’s parents do not adequately maintain them, as per section 22 of the Principal Act. The Act imposes several obligations on the parties involved. It mandates that the Commissioner, who is likely the head of the relevant pension authority, must make certain determinations regarding the pensions of aboriginal natives, as per section 44a of the Principal Act. The Commissioner can decide to reduce the pension rate if deemed desirable and may direct that the pension payments be made to an appropriate authority for the benefit of the pensioner. The Director-General of Social Services is required to prepare and submit an annual report to the Minister, detailing the administration and operation of the Act, as stipulated in section 54 of the Principal Act. For breaches of the provisions outlined in the Invalid and Old-age Pensions Act 1942, the Act does not explicitly detail specific offences, penalties, or consequences. However, as with many legislative acts, non-compliance with the regulations and directives set forth could potentially result in administrative penalties, fines, or other legal repercussions depending on the nature and severity of the breach. The specific penalties would be determined in the context of the legal proceedings and under the relevant laws in place at the time of the breach.

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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.