Veterans’ Entitlements (Asset-test Exempt Income Stream—Lifetime Income Stream Guidelines) Determination 2025

Administered by Department of Veterans' Affairs

Legislation au F2025L00759 In force Legislative Instrument

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EXPLANATORY STATEMENT

Veterans’ Entitlements (Asset-test Exempt Income Stream—Lifetime Income Stream Guidelines) Determination 2025

EMPOWERING PROVISION

The Repatriation Commission makes this instrument under subsection 5JA(6) of the Veterans’ Entitlements Act 1986 (the Act).

PURPOSE

This instrument repeals the Asset-test Exempt Income Stream (Lifetime Income Stream Guidelines) Determination 2015 and remakes it before it would otherwise sunset on 1 October 2025.

OVERVIEW

This instrument determines guidelines to be complied with when deciding, under subsection 5JA(5) of the Act, that an income stream is an asset-test exempt income stream.  Under paragraph 52(1)(d) of the Act, an asset-test exempt income stream is exempt from the asset-test in the Act. 

EXPLANATION OF PROVISIONS

Section 1 states the name of the Instrument.

Section 2 provides that the Instrument commences on the day after it is registered.

Section 3 sets out the authority for the Repatriation Commission making the Instrument, namely subsection 5JA(6) of the Act.

Section 4 repeals the Asset-test Exempt Income Stream (Lifetime Income Stream Guidelines) Determination 2015 (Instrument 2015 No. R9) (the repealed instrument).

Section 5 sets out definitions.

Section 6 determines guidelines for deciding whether a lifetime income stream from a public sector fund or public sector superannuation scheme is asset-test exempt.

 The Commission may determine that an income stream from a public sector fund or public superannuation scheme is an asset-test exempt income stream if the income stream:

 (a) is a lifetime income stream; and

 (b) is a defined benefit income stream; and

 (c) is paid from a fund or a scheme that was established before 20 September 1998; and

 (d) was a superannuation pension, regardless of its commencement day:

 (i) under the 1998 Act; and

 (ii) the value of which was disregarded in calculating the beneficiary’s assets under section 52 of the 1998 Act.

Section 7 determines  guidelines for deciding whether a lifetime income stream from a private sector fund is asset-test exempt.

The Commission may determine that an income stream arising from a private sector fund is an asset-test exempt income stream if the income stream:

 (a) is a lifetime income stream; and

 (b) is a defined benefit income stream; and

 (c) is paid from a fund that was established before 20 September 1998; and

 (d) was a superannuation pension, regardless of its commencement day:

 (i) under the 1998 Act; and

 (ii) the value of which was disregarded in calculating the beneficiary’s assets under section 52 of the 1998 Act; and

 (e) became payable to the primary beneficiary or a reversionary beneficiary because of the primary beneficiary’s previous employment.

Consultation

The Department of Social Services (DSS) administers the equivalent instrument under the Social Security Act 1991 – the Asset-test Exempt Income Stream (Lifetime Income Stream Guidelines) (Social Security) Determination 2015.  The Department of Veterans’ Affairs has consulted with DSS to ensure consistency.

In remaking the instrument, no policy changes have been made to the asset-test exemption of certain income streams compared with the repealed instrument.  Consequently, there has been no broader external consultation.

Human rights implications

This instrument is compatible with the human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A full statement of compatibility is set out in Attachment A.

Making the instrument

The instrument is made by the Repatriation Commission.

Approved by

Repatriation Commission

Rule-maker


Attachment A

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Veterans’ Entitlements (Asset-test Exempt Income Stream—Lifetime Income Stream Guidelines) Determination 2025

This Disallowable Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 (the recognised rights).

Overview of the Disallowable Legislative Instrument

This instrument repeals the Asset-test Exempt Income Stream (Lifetime Income Stream Guidelines) Determination 2015 and remakes it before it would otherwise sunset on 1 October 2025.

This instrument determines guidelines to be complied with when deciding, under subsection 5JA(5) of the Act, that an income stream is an asset-test exempt income stream.  Under paragraph 52(1)(d) of the Act, an asset-test exempt income stream is exempt from the asset-test in the Act. 

Human rights implications

This legislative instrument promotes the right to social security in article 9 of the International Covenant on Economic Social and Cultural Rights by enabling certain superannuation income streams to be exempt from the pension means-test under the Act.

Conclusion

This legislative instrument is compatible with the right to social security.

 

Repatriation Commission

Rule-Maker

Overview

The Veterans’ Entitlements (Asset-test Exempt Income Stream—Lifetime Income Stream Guidelines) Determination 2025 was enacted by the Repatriation Commission under subsection 5JA(6) of the Veterans’ Entitlements Act 1986. This instrument aims to update the Asset-test Exempt Income Stream (Lifetime Income Stream Guidelines) Determination 2015, ensuring it remains effective beyond its sunset date of 1 October 2025. The primary purpose of this legislation is to establish guidelines for determining whether certain income streams qualify as asset-test exempt income streams, which are exempt from the asset-test provisions in the Act. By maintaining these guidelines, the legislation ensures continued clarity and consistency in the application of the asset-test exemption for eligible income streams.

Scope and Application

The Veterans’ Entitlements (Asset-test Exempt Income Stream—Lifetime Income Stream Guidelines) Determination 2025 applies to income streams from both public and private sector funds and schemes that are deemed asset-test exempt under the Veterans’ Entitlements Act 1986. This Act applies to veterans and their beneficiaries who receive income streams from superannuation funds or schemes established before 20 September 1998, and which were previously treated as disregarded assets for the purposes of the asset-test. The instrument sets out guidelines for the Repatriation Commission to determine whether such income streams qualify as asset-test exempt, ensuring that these income streams are exempt from the asset-test provisions of the Act. The instrument has a national reach, applying across Australia, and is effective from the day after its registration. There are no exclusions, exemptions, or thresholds specified in the instrument itself, although the specific criteria for determining asset-test exempt income streams are detailed within the provisions of the instrument. The Repatriation Commission may extend or restrict the application of these guidelines through subordinate instruments, if necessary, to align with changes in legislation or regulatory requirements.

Key Provisions

The Veterans’ Entitlements (Asset-test Exempt Income Stream—Lifetime Income Stream Guidelines) Determination 2025 (the Determination) primarily outlines the guidelines for determining whether certain income streams qualify as asset-test exempt income streams under the Veterans’ Entitlements Act 1986 (the Act). Section 6 of the Determination specifies that a lifetime income stream from a public sector fund or superannuation scheme is considered asset-test exempt if it meets certain criteria, such as being a defined benefit income stream and being paid from a fund or scheme established before 20 September 1998. Similarly, Section 7 details the guidelines for private sector funds, requiring the income stream to also be a defined benefit income stream, paid from a fund established before the specified date, and have been a superannuation pension disregarded under the 1998 Act. The Determination imposes specific obligations on the Repatriation Commission to adhere to these guidelines when making determinations about the asset-test exemptions for income streams. It requires the Commission to ensure that any income stream considered for exemption must satisfy all the stipulated conditions, including the nature of the stream, the type of fund or scheme, and the historical context of the pension's establishment. This involves meticulous verification to ensure that only those income streams meeting all the criteria are granted the exemption. Failure to comply with the guidelines set forth in the Determination can result in significant consequences. While the Determination itself does not explicitly outline penalties, the underlying Act may impose sanctions for non-compliance. For instance, incorrect determinations regarding asset-test exemptions could lead to financial penalties, legal challenges, or the need for corrective actions. Additionally, the Department of Veterans’ Affairs, which oversees the application of these guidelines, may take administrative actions against entities that fail to adhere to the prescribed standards. Human rights compatibility is a crucial aspect of the Determination. It asserts compatibility with the human rights and freedoms recognised under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. By exempting certain income streams from the asset-test, the Determination promotes the right to social security, as outlined in article 9 of the International Covenant on Economic, Social and Cultural Rights. This compatibility ensures that the Determination does not infringe on recognised human rights and supports the broader objective of providing social security to veterans.

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Veterans' Law
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Determination
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Definitions & Interpretation
Repeal & Amendment
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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.