EXPLANATORY STATEMENT
Veterans' Entitlements (Child-Related Rent Assistance Payments) Determination
2005 No R5
(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. 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 paragraph 10(4)(b) of Schedule 5 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 rent assistance payable to those to whom the provision applies, on and from 20 March 2005 to 19 September 2005. The amount of rent assistance payable to those to whom the provision applies is equal to the amount of rent assistance payable as part of the Part A rate of family tax benefit.
Documents Incorporated by Reference
(i) the A New Tax System (Family Assistance) Act 1999.
Document (i) is available on Scaleplus at:
http://scaletext.law.gov.au/html/pasteact/3/3300/top.htm
Consultation
No. The instrument is of a minor nature and does not substantially alter existing arrangements.
Overview
The Veterans' Entitlements (Child-Related Rent Assistance Payments) Determination 2005 No R5 was enacted to address a specific issue arising from the implementation of the A New Tax System (Family Assistance) Act 1999. This legislation is a response to the potential disadvantage faced by certain veterans who were receiving service pension or income support supplement prior to 1 January 1998, and whose payments were increased due to a dependent child. Specifically, it addresses the need to ensure that these veterans do not suffer any disadvantage if they were to start receiving their child-related payments as part of their family payment under the new tax system. The policy objective is to provide a seamless transition and maintain the benefits of these veterans without imposing additional burdens or disadvantages due to legislative changes.
This determination was made under clause 10 of Schedule 5 of the Veterans’ Entitlements Act 1986 by the Repatriation Commission, and it specifies the amount of rent assistance payable to affected pensioners for a period from 20 March 2005 to 19 September 2005. The amount of this assistance is aligned with the indexation of the Part A rate of family tax benefit as outlined in the A New Tax System (Family Assistance) Act 1999, ensuring consistency and fairness in the application of these payments.
Scope and Application
The Veterans' Entitlements (Child-Related Rent Assistance Payments) Determination 2005 pertains to individuals who were receiving service pension or income support supplement prior to 1 January 1998, with their rates increased due to a dependent child. Specifically, it addresses those who would be disadvantaged by transitioning to child-related payments as part of their family payment under the A New Tax System (Family Assistance) Act 1999. The determination ensures that such individuals continue to receive their child-related rent assistance as part of their service pension or income support supplement. This instrument sets the amount of rent assistance payable from 20 March 2005 to 19 September 2005, aligning it with the amount of rent assistance included in the Part A rate of family tax benefit. The scope of this determination is limited to those affected by the savings provision outlined in Clause 10 of Schedule 5 of the Veterans’ Entitlements Act 1986, and it incorporates elements from the A New Tax System (Family Assistance) Act 1999. The instrument does not require substantial consultation as it does not alter existing arrangements significantly.
Key Provisions
The Veterans' Entitlements (Child-Related Rent Assistance Payments) Determination 2005 (No. R5) operates under clause 10 of Schedule 5 of the Veterans' Entitlements Act 1986, which is a savings provision designed to protect the financial interests of certain veterans who were receiving service pensions or income support supplements with child-related payments. Specifically, for those who would otherwise be disadvantaged by transitioning to family payments under the A New Tax System (Family Assistance) Act 1999, this determination ensures that child-related payments, including rent assistance, continue to be paid as part of their service pension or income support supplement. Effective from 1 July 2000, the amount of rent assistance is determined by the Repatriation Commission, with consideration given to the indexation of the Part A rate of family tax benefit under the A New Tax System (Family Assistance) Act 1999.
The obligations imposed by this determination are primarily on the Repatriation Commission, which is tasked with calculating and paying the appropriate amount of rent assistance to eligible veterans. This involves closely monitoring the indexation of the Part A rate of family tax benefit and ensuring that rent assistance payments are adjusted accordingly. The determination specifies that the rent assistance payable to those affected by the savings provision is to be equal to the amount of rent assistance payable as part of the Part A rate of family tax benefit. This means that the Repatriation Commission must make sure that the amount of rent assistance provided aligns with the rates set out in the A New Tax System (Family Assistance) Act 1999, ensuring that affected veterans do not experience financial disadvantage due to changes in the tax system.
In terms of consequences for non-compliance or breaches of the requirements set out in this determination, there are no specific offences, penalties, or civil/criminal consequences mentioned within the text of the determination itself. However, the Repatriation Commission, as the entity responsible for administering these payments, would likely face administrative and legal scrutiny if it fails to comply with the specified rates and timelines for rent assistance payments. Non-compliance could result in veterans not receiving the full entitlements they are legally owed, potentially leading to disputes and legal actions to rectify the situation. While the determination does not explicitly state maximum penalties, the implications of failing to meet the obligations could be significant for those affected, including financial hardship and loss of trust in the administration of veterans' entitlements.