EXPLANATORY STATEMENT
Veterans’ Entitlements (Direct Deductions Arrangements) Instrument 2005
The purpose of the attached Instrument is to enable the Repatriation Commission to approve classes of pensions, allowances and pecuniary benefits under the Veterans’ Entitlements Act 1986 (the Act) from which deductions may be made.
The Instrument also specifies the classes of payments to which deductions may be paid.
By way of background, section 58JA of the Act (which has been repealed by the Veterans’ Entitlements Amendment (Direct Deductions and Other Measures) Act 2004) provided for direct deduction arrangements at the request of persons receiving service pension under Part III of the Act or income support supplement under Part IIIA of the Act. These recipients could request the Repatriation Commission to make deductions from instalments of service pension or income support supplement for the purpose of making payments included in a class of payments approved by the Minister.
The same arrangements were not available to persons receiving a disability pension or war widow/ers pension paid under Part II or IV of the Act or certain allowances and other pecuniary benefits under the Act.
Section 122B has been inserted into the Act by the Veterans’ Entitlements Amendment (Direct Deductions and Other Measures) Act 2004 to extend the arrangements under the Act applicable to those on service pension and income support supplement to certain other pensions and allowances payable under the Act. Subsection 122B(5) allows for the Commission to approve:
(i) classes of pensions from which deductions may be made;
(ii) classes of allowances from which deductions may be made;
(iii) classes of pecuniary benefits from which deductions may be made; and
(iv) classes of payments to which deductions may be paid.
Further details of the Instrument are set out in the Attachment.
The Repatriation Commission considered that consultation was not necessary because the instrument is of a technical nature and implements changes included in the Veterans’ Entitlements Amendment (Direct Deductions and Other Measures) Act 2004. The measures are also to the benefit of recipients.
ATTACHMENT
Item 1 refers to the name of the Instrument.
Item 2 provides that, subject to clause 2.2, this Instrument commences on the day after it is registered on the Federal Register of Legislative Instruments.
Clause 2.2 provides that any approvals made by the Repatriation Commission under this instrument in relation to payments under regulations made under section 118NJ of the Act will take effect on the day that regulations commence under section 118NJ of the Act.
Item 3 relates to revocation clauses that:
(a) revoke the approval made by the Repatriation Commission under subsection 122B(5) of the Act of the class of pensions described in subclause 5(2) of Schedule 1 of the Veterans’ Entitlements Amendment (Direct Deductions and Other Measures) Act 2004. The revocation is a consequential measure to ensure that all classes of pensions approved by the Repatriation Commission under subsection 122B(5) of the Act are covered by the new instrument.
(b) revoke the approval made by the Repatriation Commission of a class of payments under subsection 122B(5) of the Act being a class of payments approved under the former section 58JA of the Act as referred to in subclause 5(3) of Schedule 1 of the Veterans’ Entitlements Amendment (Direct Deductions and Other Measures) Act 2004. The revocation is a consequential measure to ensure that all classes of payments under subsection 122B(5) of the Act are covered by the new instrument.
Item 4 sets out various definitions.
Item 5 refers to the classes of pensions, allowances and pecuniary benefits that the Repatriation Commission approves under subsection 122B(5) of the Act.
Item 6 refers to the classes of payments that the Repatriation Commission approves under subsection 122B(5) of the Act.