VETERANS’ ENTITLEMENTS ACT 1986
Veterans’ Entitlements Income Exempt Lump Sum
Determination No. 1 of 2001
I, JEANETTE RICKETTS, Branch Head, Income Support and a delegate of the Repatriation Commission, make the following determination in respect of Rotary Foundation Ambassadorial Scholarships, under paragraph 5H(12)(c) of the Veterans’ Entitlements Act 1986.
Dated this 8th day of March 2001.
JEANETTE RICKETTS
Branch Head
Income Support
Veterans’ Entitlements Income Exempt Lump Sum Determination No. 1 of 2001.
Part 1 Preliminary
1.1 NAME OF DETERMINATION
This determination is the Veterans’ Entitlements Income Exempt Lump Sum Determination No. 1 of 2001.
1.2 COMMENCEMENT
This determination commences on the day it is signed.
1.3 DEFINITIONS
In this determination:
Act means the Veterans’ Entitlements Act 1986.
Ambassadorial Scholarship means a scholarship provided to a person by the Rotary Foundation for the purpose of assisting the person to pursue vocational studies overseas to further international understanding and friendly relations among people of different countries. The scholarships are for study overseas and is intended to help cover round-trip transportation, tuition fees and educational supplies
There are currently three Ambassadorial Scholarships awarded by the Rotary Foundation, namely Academic Year, Multi-Year and Cultural Ambassadorial Scholarships.
The Academic-Year Scholarship provides funding for one academic year of study in another country. The scholarship payment is made as 2 separate lump sum payments, one before the commencement of the scholarship and another 3 months later subject to the submission of a report.
The Multi-Year scholarships are for either two or three years of study in another country. These scholarships are offered mainly by Rotary districts in Japan and Korea.
The Cultural Scholarships are for either three or six months of intensive language study and cultural immersion in another country. The scholarship payment is made as one lump sum payment.
Veterans’ Entitlements Income Exempt Lump Sum Determination No. 1 of 2001.
Part 2 Exempt Lump Sums
2.1 AMOUNT OR CLASS OF AMOUNTS
Paragraph 5H(12)(c) of the Act provides that an amount, or one of a class of amounts received by a person is an exempt lump sum if the amount, or class of amounts is determined by Commission to be an exempt lump sum. Set out below is the payment to be regarded as exempt lump sums under paragraph 5H(12)(c).
(1) An amount received by a person awarded an Ambassadorial Scholarship.
2.2 APPLICATION-EXEMPT LUMP SUMS
(1) It is appropriate to determine that an amount, or class of amounts, paid to a person, on or after the commencement of this determination, as described in subclause 2.1(1) of this determination, is an exempt lump sum under paragraph 5H(12)(c) of the Act.
Overview
The Veterans’ Entitlements Income Exempt Lump Sum Determination No. 1 of 2001 was enacted to address a specific issue within the framework of the Veterans’ Entitlements Act 1986. This legislation was introduced to clarify the tax treatment of certain lump sum payments received by individuals, specifically those awarded Ambassadorial Scholarships by the Rotary Foundation. The Rotary Foundation Ambassadorial Scholarships are designed to assist recipients in pursuing vocational studies overseas, which can foster international understanding and friendly relations. The determination was made by Jeanette Ricketts, Branch Head of Income Support and a delegate of the Repatriation Commission, and it aims to ensure that the lump sum payments for these scholarships are exempt from certain income assessments, thereby protecting the financial interests of the scholarship recipients. The policy objective is to provide clarity and fairness in the treatment of these educational grants under the existing legislative framework.
Scope and Application
The Veterans’ Entitlements Income Exempt Lump Sum Determination No. 1 of 2001 applies specifically to amounts received by a person awarded a Rotary Foundation Ambassadorial Scholarship. This determination is made under paragraph 5H(12)(c) of the Veterans’ Entitlements Act 1986 and comes into effect on the day it is signed. The determination classifies certain scholarship payments as exempt lump sums, which means they are not subject to income assessment for the purposes of veterans’ entitlements. These scholarships, which include Academic Year, Multi-Year, and Cultural scholarships, are intended to cover expenses such as round-trip transportation, tuition fees, and educational supplies for vocational studies overseas. The Rotary Foundation offers these scholarships to promote international understanding and friendly relations among people of different countries. This determination is applicable to individuals who receive these scholarships from the Rotary Foundation on or after the commencement date of the determination.
Key Provisions
The Veterans’ Entitlements Income Exempt Lump Sum Determination No. 1 of 2001, made by Jeanette Ricketts as the Branch Head of Income Support and a delegate of the Repatriation Commission, specifies certain provisions under the Veterans’ Entitlements Act 1986. This determination identifies lump sums received by individuals awarded Rotary Foundation Ambassadorial Scholarships as exempt from veterans' entitlement calculations (Section 2.1). It explicitly states that these amounts, paid to a person on or after the commencement of this determination, are exempt lump sums under paragraph 5H(12)(c) of the Act (Section 2.2(1)).
The obligations imposed by this determination primarily concern the classification and treatment of the specified lump sums. It mandates that these lump sums, which include payments for Rotary Foundation Ambassadorial Scholarships, are not to be included in the calculation of veterans' entitlements. This ensures that recipients of such scholarships do not have their veterans' entitlements reduced or affected by these payments.
Any breach of the provisions set out in this determination could lead to incorrect calculations of veterans' entitlements, potentially resulting in legal and administrative complications. The determination does not explicitly outline specific offences, penalties, or consequences for non-compliance. However, under the general provisions of the Veterans’ Entitlements Act 1986, failure to adhere to such determinations could be subject to the penalties and consequences stipulated within the broader legislative framework. These could include fines or other penalties as determined by relevant authorities.