Overview

The Veterans' Entitlements (Child-Related Payments) Determination 2005 was enacted to ensure that certain veterans who were receiving child-related payments as part of their service pension or income support supplement prior to 1 January 1998 would not be disadvantaged following the introduction of family payments under the Social Security Act 1991 and subsequently the A New Tax System (Family Assistance) Act 1999. This determination, established under subclause 10(4) of Schedule 5 of the Veterans’ Entitlements Act 1986, aims to preserve the child-related payments, including dependent child add-on and guardian allowance, for eligible pensioners by aligning them with the indexation rates of family tax benefits. The policy objective is to provide continuity and fairness in the entitlements for veterans who would otherwise face disadvantages due to changes in family assistance legislation. This instrument, introduced by the Commonwealth Parliament, is designed to maintain the integrity of the veterans' entitlements without significantly altering existing arrangements.

Scope and Application

The Veterans' Entitlements (Child-Related Payments) Determination 2005 applies to individuals who were receiving service pensions or income support supplements before 1 January 1998, specifically those whose payments were increased due to dependent children. This legislation seeks to ensure that these individuals do not experience disadvantage by continuing to receive their child-related payments as part of their service pension or income support supplement, rather than as part of their family payment under the Social Security Act 1991 or the A New Tax System (Family Assistance) Act 1999. The child-related payments preserved by this provision include dependent child add-on and guardian allowance. From 1 July 2000, the amount of these payments is determined by the Repatriation Commission, taking into account the indexation of the Part A rate of family tax benefit. The Determination specifies the amount of dependent child add-on and/or guardian allowance payable from 1 July 2005 to 30 June 2006, aligning with the base rates of family tax benefit Part A and applying indexation factors and rounding rules in line with other family assistance payments. This instrument is a minor adjustment and does not substantially alter existing arrangements.

Key Provisions

The Veterans' Entitlements (Child-Related Payments) Determination 2005 (No.13) is established under clause 10(4) of Schedule 5 of the Veterans’ Entitlements Act 1986 (the Act). This determination applies to individuals who, prior to 1 January 1998, were receiving a service pension or income support supplement with an increased rate due to a dependent child (referred to as child-related payments). Specifically, the provision aims to prevent any disadvantage that may occur if these payments were to be integrated into the family payment system, which initially operated under the Social Security Act 1991 and later under the A New Tax System (Family Assistance) Act 1999. The determination preserves the child-related payments, such as dependent child add-on and guardian allowance, as part of the service pension or income support supplement for those who would be adversely affected by the change. The determination outlines the obligations and requirements for the parties involved, particularly focusing on the calculation and payment of child-related payments. Effective from 1 July 2000, the amount of dependent child add-on and guardian allowance payable to eligible pensioners is determined by the Repatriation Commission, considering the indexation of the Part A rate of family tax benefit under the A New Tax System (Family Assistance) Act 1999. The determination specifies the amount of these payments from 1 July 2005 to 30 June 2006. The dependent child add-on is calculated based on the maximum and base rates of family tax benefit Part A, while the guardian allowance rate is determined by applying the indexation factor and rounding rules consistent with other family assistance payments. In terms of compliance and enforcement, the determination does not introduce new offences or penalties but rather refines the existing provisions. The main focus is on ensuring that the correct amount of child-related payments is calculated and paid to eligible pensioners without causing any disadvantage. The legislation aims to maintain the integrity and fairness of the child-related payment system within the broader framework of veterans' entitlements. The determination is considered minor in nature, not substantially altering existing arrangements, and does not necessitate extensive consultation beyond the integration of existing family assistance rates.