EXPLANATORY STATEMENT

Veterans' Entitlements (Child-Related Rent Assistance Payments) Determination 2006

2006 No.R31

(Paragraph 10(4)(b) 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) (a "savings provision") 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 payments).  If those persons would have been disadvantaged by starting to receive their child-related payments as part of their family payment 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.

One of the child-related payments affected by the savings provision is rent assistance. From 1 July 2000 on, the amount of rent assistance payable at any time to pensioners who are renting and to whom clause 10 applies is the amount determined by the Repatriation Commission under paragraph 10(4)(b) of Schedule 5 of the Act, 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.

The attached Instrument is a determination under paragraph 10(4)(b).  It will specify the amount of rent assistance payable on and from 20 September 2006 to 19 March 2007 to those to whom Clause 10 applies.  The amount of rent assistance payable to those to whom Clause 10 applies is equal to the amount of rent assistance payable as part of the Part A rate of family tax benefit.

Document Incorporated by Reference

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

Document (i) is available on COMLAW at:

http://www.frli.gov.au/comlaw/comlaw.nsf/homepage?OpenForm&Expand=1.1

Consultation

None. The instrument is beneficial in nature and does not substantially alter existing arrangements.

Retrospectivity

The instrument could commence before it is registered on the Federal Register of Legislative Instruments.  For the purposes of section 12 of the Legislative Instruments Act 2003 the instrument does not operate so as to disadvantage any person or impose liabilities on any person (apart from the Commonwealth).  The instrument is beneficial in nature.                                                                                                                                KL