EXPLANATORY STATEMENT
Veterans’ Entitlements Income (Exempt Lump Sum — Fisheries Adjustment Package) Determination
2006 NO. R14
Paragraph 5H(12)(c) 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 under the Veterans’ Entitlements Act 1986 (VEA) once it is stated to be an exempt lump sum by a determination under paragraph 5H(12)(c) of the 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.
The attached instrument provides for the exemption of these payments from the income assessment of the person’s or the person’s partner’s income support payment.
Background
This instrument determines that a one-off payment made by the Fisheries Adjustment Package (Securing Our Fishing Future) 2005 is an exempt lump sum for the purposes of paragraph 5H(12)(c) of the VEA.
The effect of this instrument is that customers receiving a payment under the Fisheries Adjustment Package (Securing Our Fishing Future) 2005 will not be subject to a reduction in the amount of their Department of Veterans’ Affairs (DVA) income support payment, as a result of receiving the payment under the Fisheries Adjustment Package (Securing Our Fishing Future) 2005, and the payment under the Fisheries Adjustment Package (Securing Our Fishing Future) 2005 will not be assessed as income under the VEA.
Consultation
The Department of Family, Community Services and Indigenous Affairs has consulted with the Department of Employment and Workplace Relations and the Department of Education, Science and Training, as well as DVA to ensure a coordinated and consistent approach to the administration of these one-off payments.
This determination is beneficial to clients as it exempts one-off payments under the Scheme from the veterans’ entitlements income test. Public consultation was therefore seen as unnecessary.
Retrospectivity
This determination has effect on and from 17 March 2006, as one-off payments may have been made to eligible people under the Scheme on and from this date. The determination may commence before registration. Any retrospective commencement of this determination is beneficial, and does not disadvantage income support recipients.