Veterans' Entitlements Income Exempt Lump Sum Determination No. 2 of 2002

Administered by Department of Veterans' Affairs

Legislation au F2005B02338 Not in force Legislative Instrument

Legislation content

 

Commonwealth of Australia

 

VETERANS’ ENTITLEMENTS ACT 1986

 

 

 

 

Veterans’ Entitlements Income Exempt Lump Sum

Determination No. 2 of 2002

 

 

 

I, JEANETTE RICKETTS, Acting Branch Head, Income Support Branch and delegate of the Repatriation Commission, hereby determine the “amount or one of a class of amounts” specified in Part 2 of the attached Schedule to this instrument to be an “exempt lump sum” in accordance with paragraph 5H(12)(c) of the Veterans’ Entitlements Act 1986.

 

 

 

 

Dated this fifth day of December 2002.

 

 

 

 

 

JEANETTE RICKETTS

Delegate

 


Veterans’ Entitlements Income Exempt Lump Sum

Determination No. 2 of 2002

 

Schedule

 

Part 1: Preliminary and Interpretation

 

1.1                                      NAME OF DETERMINATION

 

This determination is the Veterans’ Entitlements Income Exempt Lump Sum Determination No. 2 of 2002.

 

1.2                                      COMMENCEMENT

 

This determination commences on the date it is signed.

 

1.3                                      DEFINITIONS

 

In this determination:

 

“Act” means the Veterans’ Entitlements Act 1986.

 

“licence holder” means a person who has been issued an A or C licence granted under the provisions of the Forests Act 1958 (Vic) that allows that person to fell, cut or remove wood within a quota allocated under that licence by the Secretary to the Victorian Department of Natural Resources and Environment.

 

“V-E Day” means Victory in Europe on 8 May 1945 in relation to World War II.

 


Part 2: Exempt Lump Sums

 

2.1                                      Amount or Class of Amounts

 

(1)                                       Paragraph 5H(12)(c) of the Act provides that an amount, or class of amounts, received by a person is an exempt lump sum if the amount, or class of amounts, is determined to be an exempt lump sum.

 

Dutch-Maror Fund

 

(2)                                       The Dutch-Maror organisation is responsible for disbursing one-off payments to Jewish survivors of World War II and who resided in The Netherlands for a period or periods during World War II.

 

(3)                                       The Dutch-Maror organisation will also disburse one-off payments to the widow or widower or the child or children of a Jewish survivor of World War II if the Jewish survivor died after V-E Day of World War II.

 

French Decree 2000-657

 

(4)                                       The French Decree 2000-657 is a French law that provides reparations to the orphans of persons who died during the deportation as part of the anti-Semitic persecutions during the German occupation of France during World War II.  The orphan child or children must have been under the age of 21 years at the time of the deportation of their parent or parents.

 

(5)                                       The French Decree 2000-657 will provide for lump sum reparations or lifetime monthly payments to the orphans.

 

Forest Produce Licensees

 

(6)                                       The Department of Natural Resources and Environment (Vic) has invited applications for financial assistance to business and self-employed operators affected by the Victorian State government decision to reduce the number of forest produce licences in the Box-Ironbark forest based industry.

 

2.2                                      ApplicationExempt Lump Sums

 

Dutch-Maror Fund payments

 

(1)                                       It is appropriate to determine that an amount, or class of amounts, paid to a person, by the Dutch-Maror organisation, before, on, or after the commencement of this determination, in accordance with the requirements of subclause 2.1(2) or 2.1(3) of this determination, as the case may be, is an exempt lump sum for the purposes of paragraph 5H(12)(c) of the Act from the date that the amount is paid.

 

French Decree 2000-657 payments

 

(2)                                       It is appropriate to determine that an amount paid to a person under the French Decree 2000-657, before, on, or after the commencement of this determination, in accordance with the requirements of subclause 2.1(5) of this determination, is an exempt lump sum for the purposes of paragraph 5H(12)(c) of the Act from the date that the amount is paid but only if the amount paid is a lump sum reparation.

 

Forest Produce Licencee payments

 

(3)                                       It is appropriate to determine that an amount, or class of amounts, paid to a person, at any time, is an exempt lump sum for the purposes of paragraph 5H(12)(c) of the Act from the date that the amount is paid but only if the amount is paid by the Victorian Department of Natural Resources and Environment to a licence holder to compensate that licence holder for being partially or completely excluded from the Box-Ironbark forest based industry.

 

 

Overview

The Veterans’ Entitlements Income Exempt Lump Sum Determination No. 2 of 2002, made under the Veterans’ Entitlements Act 1986, addresses the need to clarify the tax status of specific lump sum payments received by veterans and their families. Enacted by the Commonwealth of Australia, this legislative instrument aims to ensure that certain payments do not affect the income support entitlements of veterans. This determination was introduced to provide clarity and to exempt specific lump sum payments from being considered as assessable income for veterans, thereby preserving their eligibility for income support. The policy objective is to ensure that the financial assistance provided to veterans is not inadvertently reduced or affected by the receipt of these specified lump sum payments.

Scope and Application

The Veterans’ Entitlements Income Exempt Lump Sum Determination No. 2 of 2002 applies to certain lump sums as specified under the Veterans’ Entitlements Act 1986. This determination outlines specific amounts or classes of amounts that are deemed exempt lump sums, which means they are not considered assessable income for the purposes of calculating veterans' entitlements. This legislation specifically applies to payments made by the Dutch-Maror organisation to Jewish survivors of World War II and their descendants, payments under the French Decree 2000-657 to orphans of persons who died during the deportation as part of the anti-Semitic persecutions during the German occupation of France during World War II, and financial assistance provided by the Victorian Department of Natural Resources and Environment to licence holders affected by the reduction of forest produce licences in the Box-Ironbark forest-based industry. These payments are considered exempt lump sums from the date they are paid, as per the provisions of the Act. The jurisdictional reach of this determination is Commonwealth, as it pertains to the Veterans' Entitlements Act 1986 which is an Australian federal law. The determination does not specify any exclusions, exemptions, or thresholds beyond the criteria mentioned for each type of lump sum. The scope of this determination can be extended or restricted through subordinate instruments as necessary.

Key Provisions

The Veterans' Entitlements Income Exempt Lump Sum Determination No. 2 of 2002, specifies certain payments as exempt lump sums under the Veterans' Entitlements Act 1986 (the Act). Specifically, section 2.1(2) of the determination indicates that payments made by the Dutch-Maror organisation to Jewish survivors of World War II, or to the survivors' widows, widowers, or children, are considered exempt lump sums. Section 2.1(5) of the determination outlines that lump sum reparations paid under the French Decree 2000-657 are also exempt lump sums, provided the payments are made as lump sums. Furthermore, section 2.1(6) states that financial assistance provided to forest produce licensees by the Victorian Department of Natural Resources and Environment is an exempt lump sum when paid to compensate for exclusion from the Box-Ironbark forest based industry. The Act imposes certain obligations on the entities responsible for making these payments, ensuring they comply with the criteria set out in the determination. For example, the Dutch-Maror organisation must adhere to the requirements set out in section 2.1(2) to ensure payments are considered exempt lump sums. Similarly, the French Decree 2000-657 requires that only lump sum reparations qualify, as per section 2.1(5). The Victorian Department of Natural Resources and Environment must ensure that any payments made to forest produce licensees meet the conditions specified in section 2.1(6). Failure to adhere to these requirements could result in the payments not being recognised as exempt lump sums. Under the Act, there are no explicit offences or penalties outlined for breaches of the determination. However, the determination's validity and the associated tax exemptions hinge on strict compliance with the specified criteria. Any failure to meet these criteria could lead to the payments not being recognised as exempt lump sums, potentially resulting in tax implications for the recipients. It is important for all parties involved to ensure adherence to the determination to avoid any unintended tax consequences.

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Area of Law
Taxation Law
Instrument
Legislative Instrument
Concepts
Definitions & Interpretation
Exempt Lump Sums
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