EXPLANATORY STATEMENT
Veterans' Entitlements (Child-Related Payments) Determination 2007
Instrument No.R22/2007
(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 2007 to and including 30 June 2008. 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 ComLaw at: http://www.comlaw.gov.au/comlaw/management.nsf/lookupindexpagesbyid/IP200402584?OpenDocument
Consultation
No. The instrument is of a minor nature and does not substantially alter existing arrangements.
SK
21/6/2007
Overview
The Veterans' Entitlements (Child-Related Payments) Determination 2007 was enacted to address a gap in the child-related payments for certain veterans who were receiving service pensions or income support supplements before 1 January 1998. The instrument, under Clause 10 of Schedule 5 of the Veterans’ Entitlements Act 1986, aims to ensure that these veterans are not disadvantaged by the introduction of family payments, as first provided under the Social Security Act 1991 and then under the A New Tax System (Family Assistance) Act 1999. The policy objective of this determination is to continue paying child-related payments as part of service pensions or income support supplements for those who would otherwise be disadvantaged by the change.
This instrument was made by the Repatriation Commission, having regard to the indexation of the Part A rate of family tax benefit under the A New Tax System (Family Assistance) Act 1999. It specifies the amount of dependent child add-on and/or guardian allowance payable to eligible pensioners from 1 July 2007 to 30 June 2008, aligning these payments with the base rates of family tax benefit Part A. The proposed rates have been calculated using the indexation factor and rounding rules consistent with other family assistance payments, ensuring a fair and equitable approach to the distribution of these entitlements.
Scope and Application
The Veterans' Entitlements (Child-Related Payments) Determination 2007 applies to individuals who were receiving a service pension or income support supplement at an increased rate due to a dependent child before 1 January 1998. This Act ensures that these individuals are not disadvantaged by the shift to family payment systems introduced under the Social Security Act 1991 and subsequently the A New Tax System (Family Assistance) Act 1999. Specifically, it preserves child-related payments such as dependent child add-on and guardian allowance as part of their service pension or income support supplement. The geographic and jurisdictional reach of this legislation is limited to Australia, as it is a determination under the Veterans’ Entitlements Act 1986. The rates for dependent child add-on and guardian allowance are calculated based on the indexation of the Part A rate of family tax benefit under the A New Tax System (Family Assistance) Act 1999, effective from 1 July 2000. The attached instrument specifies the amount of these allowances payable from 1 July 2007 to 30 June 2008, with the dependent child add-on rate equating to the base rates of family tax benefit Part A, while the guardian allowance rate is determined by applying the indexation factor and rounding rules in line with other family assistance payments. This instrument does not substantially alter existing arrangements and has been subject to minor consultation.
Key Provisions
The Veterans' Entitlements (Child-Related Payments) Determination 2007 (F2007L01892) primarily serves to detail the specific amounts of child-related payments, such as dependent child add-on and guardian allowance, to be paid to eligible veterans from 1 July 2007 to 30 June 2008. These payments are governed under subclause 10(4) of Schedule 5 of the Veterans’ Entitlements Act 1986 and are intended to continue the child-related payments for veterans who would be disadvantaged if they were required to receive these payments as part of their family payment. The amount of dependent child add-on payable to eligible pensioners is determined by the difference between the maximum rate and the base rate of family tax benefit (FTB) Part A, as outlined in the A New Tax System (Family Assistance) Act 1999. In contrast, the guardian allowance is calculated using the indexation factor and rounding rules consistent with other family assistance payments.
Under this legislation, the Repatriation Commission is responsible for determining the specific amounts of dependent child add-on and guardian allowance payable to eligible pensioners. This determination takes into account the indexation of the Part A rate of family tax benefit as stipulated in the A New Tax System (Family Assistance) Act 1999. The obligation is to ensure that these payments are made in accordance with the rates specified in the Determination, effectively linking the child-related payments for veterans to the relevant family assistance rates. This ensures that the savings provision under the Veterans’ Entitlements Act 1986 is properly upheld and that eligible veterans receive the appropriate support without being disadvantaged by changes in the family payment system.
There are no specific offences or penalties outlined in this Determination itself. However, the underlying legislation, the Veterans’ Entitlements Act 1986, includes provisions for penalties and enforcement actions in the event of non-compliance or breaches of the Act. These penalties can include fines and other civil or criminal consequences, depending on the nature and severity of the breach. The precise penalties would be determined according to the relevant sections of the Veterans’ Entitlements Act 1986 and any associated regulations or subsidiary legislation. The focus of this Determination is to provide clarity and specificity regarding the amounts of child-related payments for eligible veterans, rather than to impose new penalties or enforcement mechanisms.