EXPLANATORY STATEMENT
Veterans’ Entitlements Income (Exempt Lump Sum –Pastoral Care and Assistance Scheme Payment) Determination
Instrument No. R11/2010
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 service pension or income support supplement.
Background
The Pastoral Care and Assistance Scheme Payment is a one-off payment made by the Anglican Church or ANGLICARE under the Pastoral Care and Assistance Scheme Anglican Church of Sydney and ANGLICARE Diocese of Sydney to a person in recognition of moderate or severe psychological damage to the person resulting from child abuse or sexual misconduct by a church worker.
The purpose of this instrument is to ensure that a Pastoral Care and Assistance Scheme Payment is an exempt lump sum for the purposes of paragraph 5H(12)(c) of the VEA.
The effect of this instrument is that people who are in receipt of an income support pension under the VEA will not have their income support payment reduced because of receiving a Pastoral Care and Assistance Scheme Payment because the payment will not be regarded as income for the purposes of the VEA income test.
Consultation
The Department has worked closely with the Department of Families, Community Services and Indigenous Affairs (FaCSIA) to ensure that this instrument has the same effect as a similar instrument executed on 29 March 2007 under the social security law.
This instrument is beneficial to customers because it exempts payments made under the Pastoral Care and Assistance Scheme from the VEA income test. Public consultation was therefore regarded as unnecessary.
Retrospectivity
FAHCSIA has already exempted the Pastoral Care and Assistance Scheme Payment. The relevant instrument under the social security law operates from 13 weeks prior to the date of registration of the instrument. The FAHCSIA instrument was registered on 29 March 2007. This instrument is effective from the same date. The instrument is entirely beneficial for pensioners receiving income support payments from the Department of Veterans’ Affairs and does not disadvantage them in any way. It is believed that none of the recipients to date has received or is currently in receipt of an income support payment under the VEA.