EXPLANATORY STATEMENT

Veterans' Entitlements (Child-Related Payments) Determination 2005

2005 No.13  

(Subclause 10(4) of Schedule 5 of the Veterans’ Entitlements Act 1986)

The Purpose and Operation of the Attached Instrument

Clause 10 of Schedule 5 of the Veterans’ Entitlements Act 1986 (the Act) is a "savings provision".  It applies to some persons who were, immediately before 1 January 1998, receiving service pension or income support supplement at a rate which was increased because of a dependent child (child-related payment).  If those persons would have been disadvantaged by starting to receive their child-related payments as part of their family payment (first provided under the Social Security Act 1991 and then under the A New Tax System (Family Assistance) Act 1999) those child-related payments continue to be paid as part of their service pension or income support supplement.

Dependent child add-on and guardian allowance are child-related payments that are preserved by the savings provision.  From 1 July 2000 on, the amount of dependent child add-on and/or guardian allowance payable at any time to pensioners to whom paragraph (b) of the definition of notional pension/supplement child-related amount in subclause 10(4) of the Act applies is the amount determined by the Repatriation Commission, having regard to the indexation of the Part A rate of family tax benefit at that time under the A New Tax System (Family Assistance) Act 1999.

This Instrument is a determination under that paragraph.  It will specify the amount of dependent child add-on and/or guardian allowance payable to those to whom the provision applies, on and from 1 July 2005 to 30 June 2006.  The amount of dependent child add-on payable to those to whom the provision applies equates to the above base rates of family tax benefit (FTB) Part A.  That is, Maximum Rate FTB A minus Base rate FTB A.  There is no direct equivalent to Guardian Allowance (GA) under A New Tax System (Family Assistance) Act 1999.  The proposed rate has been calculated by applying the indexation factor and rounding rules in line with other family assistance payments.

Documents Incorporated by Reference

(i) the A New Tax System (Family Assistance) Act 1999.

Document (i) is available on Scaleplus at:

http://www.scaleplus.law.gov.au/html/pasteact/browse/TOC.htm:

Consultation

No. The instrument is of a minor nature and does not substantially alter existing arrangements.