Veterans' Entitlements Amendment Regulations 2001 (No. 2) 2001 No. 228
EXPLANATORY STATEMENT
Statutory Rules 2001 No. 228
Issued by the Authority of the Minister for Veterans' Affairs
Veterans' Entitlements Act 1986
Veterans' Entitlements Amendment Regulations 2001 (No. 2)
Section 216 of the Veterans' Entitlements Act (the Act) enables the Governor-General to make regulations prescribing matters that are required or permitted by the Act to be prescribed, or which are necessary or convenient to be prescribed for carrying out or giving effect to the Act.
The purpose of the Regulations is to enable the Commission to distribute a higher amount of undistributed benefit (max. $40,000) to a deceased's estate than it was previously able to distribute (max. $20,000).
Veterans and dependants who are eligible for benefits under the Act sometimes die before they can receive those benefits.
The Act contains a number of provisions to deal with this situation. In particular, section 123B of the Act sets out the circumstances in which the Commission can release undistributed benefits to a deceased's estate where the deceased left a will. However if probate of the will has not been obtained and letters of administration with the will annexed have not been granted, the Commission may only release a maximum of $20,000 or the maximum of an amount that is prescribed (123B(6)).
The Regulations amended the Veterans' Entitlements Regulations 1986 (Principal Regulations) to prescribe $40,000 as the higher prescribed amount for the purposes of subsection 123B(6).
The figure of $40,000 was chosen for the following reasons. Firstly, a desire to avoid the present necessity for the estates of former prisoners of war of the Japanese, or their widows, to obtain probate and letters of administration where the estate would consist of little more than the $25,000 POW payment payable under the Veterans' Entitlements (Compensation - Japanese Internment) Regulations 2001.
Secondly, the current amount in subsection 123B(6) of $20,000 has not changed since 1987 when section 123B was included in the Act. Based on Consumer Price Index increases to disability pensions under the Act, it is considered reasonable to increase the amount by 167% which would produce a rounded figure of $33,500 that would accommodate the average amount of undistributed benefit which would have increased similarly in the same period.
Thirdly, to make a small provision in the amount to be prescribed to allow for further indexation increases and thus avoid any early need to again seek an increase in the higher prescribed amount for the purposes of subsection 123B(6). This would maintain the flexibility intended by the Act for the Commission to quickly pay outstanding entitlements and assist in a timely finalisation of estates.
Details of each of the Regulations are set out in the attachment.
The Regulations take effect on gazettal.
ATTACHMENT
Veterans' Entitlements Amendment Regulations 2001 (No. 2)
Regulation 1 refers to the name of the Regulations.
Regulation 2 provides for the Regulations to commence on gazettal.
Regulation 3 refers to the Schedule of the Regulations which contains the amendment to the Principal Regulations.
Item [1] inserted a new regulation 8AA in the Principal Regulations. Regulation 8AA prescribes an amount of $40,000 for the purposes of subsection 123B of the Act.
Overview
The Veterans' Entitlements Amendment Regulations 2001 (No. 2) were enacted to address the limitation on the amount of undistributed benefits that could be released to the estate of a deceased veteran or dependant under the Veterans' Entitlements Act 1986. Previously, the maximum amount that could be released without obtaining probate or letters of administration was $20,000, a figure that had remained unchanged since 1987 despite increases in the Consumer Price Index. The regulations, issued by the Minister for Veterans' Affairs, aim to update this amount to better reflect current economic conditions and ensure the timely distribution of benefits to eligible estates. The new regulation sets the maximum amount at $40,000, allowing for flexibility in the future should further adjustments be necessary due to inflation or other factors. The policy objective is to provide a practical and timely resolution for the estates of deceased veterans and their dependants, ensuring they receive their entitled benefits without unnecessary delays or administrative burdens.
Scope and Application
The Veterans' Entitlements Amendment Regulations 2001 (No. 2) apply to individuals and estates of deceased veterans and their dependants who are eligible for benefits under the Veterans' Entitlements Act 1986, specifically addressing the distribution of undistributed benefits. The Act applies to Commonwealth veterans and their dependants, including those who have passed away before receiving their benefits. The amendment allows the Repatriation Commission to distribute up to $40,000 in undistributed benefits to a deceased's estate, which is an increase from the previous limit of $20,000. This change is applicable to all veterans and their estates regardless of the specific circumstances, such as former prisoners of war or their widows. The regulations aim to ensure that estates, particularly those with minimal assets other than the POW payment, do not need to undergo the process of obtaining probate and letters of administration to release benefits. The new threshold of $40,000 was determined by considering the Consumer Price Index increases to disability pensions and the need for flexibility to accommodate future indexation. The Regulations were made under section 216 of the Veterans' Entitlements Act and took effect on the date of their gazette.
Key Provisions
The Veterans' Entitlements Amendment Regulations 2001 (No. 2) amend the existing Veterans' Entitlements Regulations 1986 (Principal Regulations) to increase the maximum amount of undistributed benefits that the Commission can release to a deceased's estate. Under section 123B of the Veterans' Entitlements Act, the Commission can release undistributed benefits to a deceased's estate if the deceased left a will. However, if probate of the will has not been obtained and letters of administration with the will annexed have not been granted, the Commission is limited to releasing a maximum of $20,000 or the amount prescribed in the Principal Regulations (subsection 123B(6)). Regulation 3 of the Amendment Regulations inserts a new regulation 8AA into the Principal Regulations, prescribing $40,000 as the new higher prescribed amount for the purposes of subsection 123B(6). This change is intended to accommodate the average amount of undistributed benefit, which has not been adjusted since 1987, and to provide for further indexation increases without the need for additional regulatory amendments.
The Regulations impose obligations on the Repatriation Commission, which is responsible for the administration of veterans' entitlements under the Veterans' Entitlements Act. The Commission must ensure that it adheres to the new prescribed amount of $40,000 when releasing undistributed benefits to a deceased's estate under the specified circumstances. This obligation is necessary to ensure that the benefits are distributed in a timely and effective manner, particularly for estates that would otherwise be burdened with the need to obtain probate and letters of administration for relatively small amounts. The Regulations also require the Commission to maintain flexibility in the amount prescribed, to allow for future adjustments in line with inflation and other relevant factors.
There are no specific offences, penalties, or consequences outlined in the Regulations themselves for non-compliance with the prescribed amount. However, the Repatriation Commission is subject to the general provisions of the Veterans' Entitlements Act and other applicable laws. Non-compliance with the Act or the Regulations could potentially lead to legal actions for mismanagement of funds or other administrative errors, with the potential for financial penalties or other civil or criminal consequences depending on the nature and severity of the breach. The precise consequences would depend on the specific circumstances and the applicable legal provisions.