Overview

The Veterans' Entitlements (Child-Related Payments) Determination 2006 was enacted to address the need to continue providing child-related payments to certain veterans who were receiving service pension or income support supplement before 1 January 1998, and would be disadvantaged by transitioning to the family payment system. This instrument serves to preserve the child-related payments for eligible veterans, ensuring they do not suffer a reduction in their entitlements due to changes in the family assistance system. The determination was made under clause 10 of Schedule 5 of the Veterans’ Entitlements Act 1986 by the relevant authority, and it operates to align the child-related payments with the base rates of family tax benefit under the A New Tax System (Family Assistance) Act 1999, effective from 1 July 2006 to 30 June 2007. The policy objective is to maintain the financial security of eligible veterans by ensuring their child-related payments are appropriately indexed and reflective of changes in family assistance rates.

Scope and Application

The Veterans' Entitlements (Child-Related Payments) Determination 2006 applies to certain individuals who were receiving service pension or income support supplement at a rate that was increased due to a dependent child prior to 1 January 1998. Specifically, this legislation pertains to those who would be disadvantaged if their child-related payments were integrated into their family payment under the Social Security Act 1991 or the A New Tax System (Family Assistance) Act 1999. The Act ensures that these individuals continue to receive their child-related payments as part of their service pension or income support supplement, preserving the dependent child add-on and guardian allowance. The geographic reach of this Act is national, as it applies throughout Australia. The Act excludes those who would not be disadvantaged by the change to the family payment system. The amount of dependent child add-on payable is determined by the Repatriation Commission, using the indexation of the Part A rate of family tax benefit under the A New Tax System (Family Assistance) Act 1999. The Guardian Allowance rate is calculated by applying the same indexation factor and rounding rules as other family assistance payments.

Key Provisions

The main operative sections of the Veterans' Entitlements (Child-Related Payments) Determination 2006 (No. R20) (the Determination) detail the child-related payments that continue to be paid to eligible veterans. Specifically, Section 1 of the Determination specifies the amount of dependent child add-on and guardian allowance payable to pensioners from 1 July 2006 to 30 June 2007, aligning these payments with the base rates of family tax benefit (FTB) Part A under the A New Tax System (Family Assistance) Act 1999. This means that the dependent child add-on is calculated as the maximum rate of FTB Part A minus the base rate of FTB Part A, while the guardian allowance is determined by applying the indexation factor and rounding rules in line with other family assistance payments. The Determination imposes certain obligations on the parties it governs. Firstly, it requires that the amount of dependent child add-on and guardian allowance be determined by the Repatriation Commission, taking into account the indexation of the Part A rate of family tax benefit. The Repatriation Commission must ensure that these payments are calculated accurately and in accordance with the provisions set out in the Determination and the A New Tax System (Family Assistance) Act 1999. Additionally, the Determination necessitates that these payments continue to be made to eligible pensioners who would otherwise be disadvantaged if their child-related payments were incorporated into their family payment. The Determination also outlines the consequences of non-compliance with its provisions. While the document does not specify any particular offences, penalties, or civil/criminal consequences for breach, it is understood that failure to adhere to the requirements of the Determination could result in the Repatriation Commission taking corrective action to ensure compliance. This may include adjusting the payments to align with the correct rates as specified in the Determination. Additionally, any failure to provide accurate and timely information to the Repatriation Commission could be seen as non-compliance, potentially leading to investigations or further actions to rectify the situation.