EXPLANATORY STATEMENT

Veterans' Entitlements Income (Exempt Lump Sum Ex Gratia Payment for Australian Prisoners of War in Europe) Determination

2007 No.R16

Subsection 5H(12) of the Veterans’ Entitlements Act 1986

The Purpose and Operation of the Attached Instrument

A payment is deemed not to be ordinary income for means-testing once it is stated by the Repatriation Commission to be an exempt lump sum by a determination under paragraph 5H(12)(c) of the Veterans' Entitlements Act 1986 (VEA).  The amount specified in the Determination at Part 2 of the Schedule as an exempt lump sum is an exempt lump sum for the purposes of the definition of 'ordinary income' in subsection 5H(1) of the VEA.

This is an ex-gratia payment for Australian former prisoners of war held in Europe during WWII.

The attached instrument provides for the exemption of these payments from the income assessment of the person or the person’s partner’s service pension or income support supplement.

Although the attached instrument will commence before it is registered on the Federal Register of Legislative Instruments, it will not affect the rights of any person, other than the Commonwealth, so as to disadvantage them and nor will it impose liabilities on any person other than the Commonwealth.

Consultation

No.  As a beneficial measure no consultation was considered necessary.  In any event the instrument is part of a legislative package that implements a Budget decision to confer an entitlement and the Legislative Instruments Act 2003 cites this situation as one where consultation may be unnecessary.

JR 31/05/07