EXPLANATORY STATEMENT
Veterans’ Entitlements Act 1986
Section 25A Instructions
EMPOWERING PROVISION
Subsection 25A(2) of the Veterans' Entitlements Act 1986
PURPOSE
To establish an actuarial procedure for converting compensation a relevant person receives under certain provisions of the
Safety, Rehabilitation and Compensation Act 1988 to a fortnightly amount in order to facilitate the deduction of that amount from fortnightly compensation payments the person receives under Parts II and IV of the Veteran's Entitlements Act 1986 (VEA).
RETROSPECTIVITY
The attached instrument applies to all matters to which s.25A of the VEA first applies on and after the date of the instrument ( 17 January 2006) ie before it was registered on the Federal Register of Legislative Instruments.
Subsection 12(2) of the Legislative Instruments Act 2003 provides (as paraphrased) that retrospective legislative instruments that negatively affect citizens are of no effect. The attached instrument does not fall within this prohibition because it does not disadvantage any person or impose liabilities on any person.
CONSULTATION
The Rule-Maker (Australian Government Actuary) decided that consultation in respect of the attached instrument was not necessary because the instrument was of a minor or machinery nature and did not substantially alter existing arrangements (Note paragraph 18(2)(a) of the Legislative Instruments Act 2003).
DOCUMENTS INCORPORATED BY REFERENCE
Under s.4 of the Legislative Instruments Act 2003 an Explanatory Statement is required to, among other things, describe any documents incorporated-by-reference in the instrument and indicate how they may be obtained.
The attached instrument incorporates certain provisions of the Safety, Rehabilitation and Compensation Act 1988. This statute is available on the Internet at the following site:
http://www.frli.gov.au/ComLaw/Legislation/ActCompilation1.nsf/current/bytitle/ECB81EA02C089ACDCA2570F100803159?OpenDocument&mostrecent=1
Overview
The Veterans' Entitlements Act 1986 (VEA) was enacted to provide a range of benefits and entitlements to veterans, their partners, and dependants, addressing the need for financial support and rehabilitation services for individuals who have served in the Australian Defence Force. One of the key objectives of this Act is to ensure that veterans and their families receive appropriate compensation and support. Section 25A, introduced via legislative instrument F2006L00229 on 17 January 2006, was enacted to establish an actuarial procedure for converting compensation amounts a relevant person receives under the Safety, Rehabilitation and Compensation Act 1988 into a fortnightly amount. This procedural change facilitates the deduction of these amounts from fortnightly compensation payments the person receives under Parts II and IV of the VEA, thereby streamlining the administration of these benefits. The instrument was not subject to the retrospective prohibitions of Subsection 12(2) of the Legislative Instruments Act 2003 as it does not disadvantage any person or impose liabilities. Consultation was deemed unnecessary as the instrument was of a minor or machinery nature, not substantially altering existing arrangements.
Scope and Application
The Veterans' Entitlements Act 1986, as amended by the attached instrument, establishes a procedure for converting compensation payments received by relevant persons under specific provisions of the Safety, Rehabilitation and Compensation Act 1988 into a fortnightly amount. This conversion facilitates the deduction of such amounts from fortnightly compensation payments the person receives under Parts II and IV of the Veterans' Entitlements Act 1986. The instrument applies to all matters from the date of its registration on 17 January 2006, and does not disadvantage any person or impose liabilities, thereby not contravening subsection 12(2) of the Legislative Instruments Act 2003. The instrument incorporates certain provisions of the Safety, Rehabilitation and Compensation Act 1988 and does not require consultation as it is of a minor or machinery nature, not substantially altering existing arrangements. The Act applies to relevant persons who receive compensation under the Safety, Rehabilitation and Compensation Act 1988 and who are also entitled to compensation under the Veterans' Entitlements Act 1986. The geographic reach of the Act is national, as it applies to matters across Australia. There are no stated exclusions or exemptions within the scope of the Act, though its application may be further defined through subordinate instruments.
Key Provisions
The Veterans’ Entitlements Act 1986 (VEA) (subsection 25A(2)) introduces a mechanism for converting compensation payments received by relevant individuals under certain provisions of the Safety, Rehabilitation and Compensation Act 1988 into a fortnightly amount. This conversion is intended to facilitate the deduction of this amount from fortnightly compensation payments the person receives under Parts II and IV of the VEA. The operative sections establish the actuarial procedure and the framework for implementing this conversion, ensuring that the fortnightly deductions are both accurate and manageable.
The Act imposes specific obligations on the parties involved, particularly the relevant persons who receive compensation under both the VEA and the Safety, Rehabilitation and Compensation Act 1988. These obligations include the requirement for these individuals to comply with the actuarial conversion process as outlined in the Act. This involves providing necessary information and cooperating with the relevant authorities to ensure that the conversion and subsequent deductions are accurately calculated and executed.
Failure to comply with the provisions of the Act may lead to various consequences. While the explanatory statement does not explicitly detail offences or penalties, it is implied that breaches of the statutory requirements could result in legal action. The absence of specific penalties in the explanatory statement suggests that the consequences of non-compliance would be determined by the courts, potentially including fines or other civil remedies. Given the nature of the Act, penalties are likely to be commensurate with the severity and impact of the non-compliance.
The Act is designed to apply retrospectively to all matters to which section 25A of the VEA first applies on and after 17 January 2006. This date marks the commencement of the instrument, as noted in the Legislative Instruments Act 2003. Importantly, the Act clarifies that it does not negatively affect citizens and therefore does not fall within the prohibition of retrospective instruments that disadvantage individuals or impose new liabilities. This ensures that the Act’s application does not result in retrospective disadvantages or liabilities for those affected by its provisions.