Overview

The Veterans’ Entitlements Income (Exempt Lump Sum – New South Wales Aboriginal Trust Fund Repayment Scheme) Determination 2006 (F2006L00656) was enacted to address the problem of ensuring that one-off payments made under the New South Wales Aboriginal Trust Fund Repayment Scheme do not affect the income assessments of veterans receiving service pensions or income support supplements. This was enacted under the authority of the Parliament of Australia and is intended to prevent the reduction of income support payments for veterans who receive payments from the Scheme. The underlying policy objective is to provide financial assistance to veterans without negatively impacting their existing income support, thereby ensuring that these payments are not considered income for the purposes of the veterans’ entitlements income test. This determination was implemented retrospectively from 30 June 2005, allowing for the consideration of payments made to eligible individuals prior to the enactment of this legislation.

Scope and Application

The Veterans' Entitlements Income (Exempt Lump Sum – New South Wales Aboriginal Trust Fund Repayment Scheme) Determination 2006 applies to individuals, or their descendants, who received payments under the New South Wales Aboriginal Trust Fund Repayment Scheme, which compensates for wages and other monies not repaid by New South Wales trust funds between 1900 and 1968. This legislation ensures that one-off payments made under the Scheme are exempt from the income test stipulated under the Veterans' Entitlements Act 1986 (VEA), thereby not affecting the service pension or income support supplement received by these individuals or their partners. The exemption applies to payments made on and after 30 June 2005, and was implemented to provide a coordinated and consistent approach, as requested by the New South Wales Government, without disadvantaging income support recipients. The determination extends to the Commonwealth level, as it relates to the administration of payments that impact on veterans' entitlements and income support provided by the Department of Veterans’ Affairs.

Key Provisions

The main operative sections of this Determination, found in Part 2 of the Schedule, state that specific lump sum payments made under the New South Wales Aboriginal Trust Fund Repayment Scheme are to be treated as exempt lump sums for the purposes of the definition of ‘ordinary income’ in subsection 5H(1) of the Veterans’ Entitlements Act 1986 (VEA) (Section 2). This means that these payments are not to be included in the income assessment of the person or their partner’s service pension or income support supplement. The obligations imposed by this Determination are primarily administrative. The New South Wales Government, in consultation with the Department of Family and Community Services, the Department of Employment and Workplace Relations, the Department of Education, Science and Training, and the Department of Veterans’ Affairs, is responsible for ensuring that these one-off payments are correctly identified and exempt from the income test under the VEA (Section 2). This coordinated approach aims to prevent the reduction of income support payments for eligible veterans or their descendants who receive these payments. There are no specific offences, penalties, or civil/criminal consequences outlined for breach of this Determination. The primary focus is on the exemption of specified lump sum payments from income assessment, ensuring that the financial support provided to veterans and their families is not adversely affected by these payments. The Determination aims to provide a clear and consistent administrative framework for the operation of the New South Wales Aboriginal Trust Fund Repayment Scheme in relation to veterans’ entitlements.