VETERANS’ ENTITLEMENTS ACT 1986
Veterans’ Entitlements Income Exempt Lump Sum
Determination No. 5 of 2000
I, JEANETTE RICKETTS, Branch Head, Income Support and a delegate of the Repatriation Commission, Department of Veterans’ Affairs, make this determination, under paragraph 5H(12)(c) of the Veterans’ Entitlements Act 1986.
Dated this 29th day of September 2000.
JEANETTE RICKETTS
Ag. Branch Head
Income Support
Veterans’ Entitlements Income Exempt Lump Sum Determination No. 5 of 2000
Part 1 Preliminary
1.1 NAME OF DETERMINATION
This determination is the Veterans’ Entitlements Income Exempt Lump Sum Determination No.5 of 2000.
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.
Rural Australia Medical Undergraduate Scholarship Scheme means the national scheme, funded by the Department of Health and Aged Care, providing medical students from rural areas with an annual amount to assist with costs associated with studying in metropolitan areas.
Veterans’ Entitlements Income Exempt Lump Sum Determination No. 5 of 2000
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 by Commission to be an exempt lump sum.
(2) The Department of Health and Aged Care administer a national scheme that provides financial assistance to people from a rural area who are medical students. This assistance is made by way of periodic payments and is intended to assist those people with the costs associated with studying in metropolitan areas. The national scheme, which is known as, the Rural Australia Medical Undergraduate Scholarship Scheme was scheduled to commence from 1 January 2000 but its implementation has been delayed. The result of this delay in implementing the Rural Australia Medical Undergraduate Scholarship Scheme is that a one-off payment of $10,000 is intended to be paid to participants for the calendar year 1 January 2000 to 31 December 2000.
(3) If a person, being a participant of the Rural Australia Medical Undergraduate Scholarship Scheme, is provided:
(a) with a payment of $10,000 under that scheme; and
(b) the payment is made to the person after the commencement of this Determination; and
(c) the payment is made before 31 December 2000;
then:
(d) the payment is for the period 1 January 2000 to 31 December 2000.
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(3) of this Determination, is an exempt lump sum under paragraph 5H(12)(c) of the Act from the date that the amount is paid.
Overview
The Veterans’ Entitlements Income Exempt Lump Sum Determination No. 5 of 2000 was introduced to address a specific issue related to the Rural Australia Medical Undergraduate Scholarship Scheme, which aimed to assist medical students from rural areas with the costs associated with studying in metropolitan areas. This legislative instrument was made under the authority of the Veterans’ Entitlements Act 1986 by Jeanette Ricketts, acting as the Branch Head of Income Support and a delegate of the Repatriation Commission within the Department of Veterans’ Affairs. The policy objective behind this determination was to ensure that a one-off payment of $10,000 intended for participants of the delayed Rural Australia Medical Undergraduate Scholarship Scheme for the period from 1 January 2000 to 31 December 2000, would be exempt from income assessment for veterans' entitlements purposes. This was enacted to provide financial relief to those affected by the scheme’s delayed implementation, ensuring they did not face additional financial burdens due to their participation in the scholarship program.
Scope and Application
The Veterans' Entitlements Income Exempt Lump Sum Determination No. 5 of 2000 applies to individuals who are participants in the Rural Australia Medical Undergraduate Scholarship Scheme, a program administered by the Department of Health and Aged Care. This legislation specifically addresses lump sums intended for the financial support of medical students from rural areas to help them with the costs associated with studying in metropolitan areas. The lump sum in question is a one-off payment of $10,000 for the calendar year from 1 January 2000 to 31 December 2000, necessitated by the delay in implementing the scholarship scheme. The exemption under the Veterans’ Entitlements Act 1986 means that this payment is exempt from certain income assessments, provided it is made after the commencement of the Determination and before 31 December 2000. The geographic reach of this determination is national, applying across all states and territories within Australia, as it pertains to a Commonwealth-funded scheme. The legislation does not specify any exclusions or exemptions beyond the defined parameters of the lump sum payment and its intended recipients.
Key Provisions
The Veterans’ Entitlements Income Exempt Lump Sum Determination No. 5 of 2000 specifies the conditions under which certain lump sums are exempt from income assessment for the purposes of determining veterans' entitlements. Specifically, section 2.1(1) refers to paragraph 5H(12)(c) of the Veterans’ Entitlements Act 1986, establishing that an amount or class of amounts determined by the Commission to be exempt lump sums will be exempt from income assessment. This particular determination targets payments made under the Rural Australia Medical Undergraduate Scholarship Scheme. Section 2.1(2) explains that due to the delay in the implementation of this scheme, a one-off payment of $10,000 is intended for the calendar year 2000. The payment is deemed exempt if it is made to a participant of the scheme, after the commencement of this determination, and before 31 December 2000, covering the period from 1 January 2000 to 31 December 2000 as stated in section 2.1(3).
The obligations imposed by this determination are primarily on the Department of Health and Aged Care, which administers the Rural Australia Medical Undergraduate Scholarship Scheme. It is their responsibility to ensure that payments made under this scheme comply with the conditions outlined in this determination. This includes verifying that payments are made to eligible participants, after the determination's commencement date, and before the specified end of the year 2000. Additionally, the determination places an obligation on recipients to ensure that they meet the eligibility criteria and the timing requirements for receiving the payment.
There are no explicit offences, penalties, or consequences for breach outlined in this determination. However, any failure to comply with the conditions for the lump sum exemption could potentially affect the recipient’s eligibility for veterans' entitlements. This means that if a payment does not meet the criteria for exemption as specified in sections 2.1(2) and 2.1(3), it may be assessed as income for the purposes of determining veterans' entitlements, potentially impacting the recipient's financial support. While specific penalties are not mentioned, the implications of non-compliance could indirectly lead to financial assessments that might reduce or alter the recipients' entitlements.