Overview

The Veterans’ Entitlements Income (Exempt Lump Sum – Payment to Victims of Bali Bombing) Determination 2006 was enacted in response to the tragic Bali bombings of October 12, 2002, which resulted in significant injury and loss for many Australians. This legislative instrument was introduced to ensure that financial assistance provided to victims of the Bali bombings would not be counted as ordinary income for the purposes of the Veterans’ Entitlements Act 1986 (VEA) income test, thereby protecting their entitlement to veterans' pensions and income support supplements. The Department of Family and Community Services (FaCS) and the Department of Veterans' Affairs (DVA) collaborated on this determination, which was made under subsection 5H(12) of the VEA. The policy objective was to expedite and sensitively provide assistance to the victims to mitigate their suffering, as requested by the Prime Minister. Given the nature of the assistance, public consultation was deemed unnecessary.

Scope and Application

The Veterans' Entitlements Income (Exempt Lump Sum – Payment to Victims of Bali Bombing) Determination 2006 applies to specific payments made to victims of the Bali bombing that occurred on 12 October 2002. This Determination ensures that certain assistance payments are exempt from the income test under the Veterans' Entitlements Act 1986 (VEA), which is essential for determining eligibility for service pensions or income support supplements. The exempted payments include those related to home, vehicle, and workplace modifications and associated costs provided by Commonwealth, State, and Territory Governments, emergency assistance and out-of-pocket expense payments from the Commonwealth Government, funds from the Australian Red Cross Bali Appeal Fund, and travel assistance provided by the Commonwealth Government. The Determination aims to ensure that these payments do not affect the income assessment of the victim’s or their partner’s service pension or income support supplement, thereby providing financial relief without penalising their eligibility for further government assistance. The scope of this Determination is limited to the specified payments listed, and it allows for consideration on a case-by-case basis for any other assistance announced by private sectors or NGOs.

Key Provisions

The main operative sections of the Veterans’ Entitlements Income (Exempt Lump Sum – Payment to Victims of Bali Bombing) Determination 2006 (No. R6) concern the definition and exemption of specific lump sum payments made to victims of the Bali bombings from the income assessment under the Veterans’ Entitlements Act 1986 (VEA). Under subsection 5H(12)(c) of the VEA, a payment can be deemed not to be ordinary income for means-testing purposes if it is designated as an exempt lump sum by a determination. Part 2 of the Schedule in this Determination lists the amount of the exempt lump sum. This determination specifies that certain payments to victims of the Bali bombing on 12 October 2002 are exempt from the VEA income test. The Act imposes specific obligations and requirements on the entities involved. The Department of Family and Community Services (FaCS) and the Department of Veterans' Affairs (DVA) have determined that the assistance provided by the Commonwealth Government, State and Territory Governments, and the Australian Red Cross should not be counted as ordinary income for the purposes of the VEA. This determination applies to Commonwealth, State and Territory Government assistance for home, vehicle, and workplace modifications and associated costs, emergency assistance, out-of-pocket expenses, travel assistance, and assistance from the Australian Red Cross Bali Appeal Fund. These obligations are in place to ensure that the assistance provided to victims of the Bali bombings is not adversely affected by income assessments under the VEA. In terms of breaches and consequences, the Determination does not explicitly outline specific offences or penalties for non-compliance. However, any failure to adhere to the provisions of this Determination could potentially lead to the misapplication of the VEA income test, thereby affecting the financial entitlements of the victims. Given the sensitive nature of the assistance provided to victims of the Bali bombings, any misapplication could lead to both administrative and legal repercussions. The determination provides a clear framework to ensure that the intended benefits reach the victims without the encumbrance of income testing. Public consultation was deemed unnecessary given the beneficial nature of the determination, which exempts payments made to victims of the Bali bombing from the VEA income test. This decision was made in consideration of the Prime Minister's request that assistance to victims be provided expeditiously and sensitively. The determination is intended to provide scope for further assistance to Bali victims, with the means test treatment of any other assistance announced by the private sector or NGOs to be considered on a case-by-case basis. This approach ensures that the assistance remains targeted and sensitive to the needs of the victims, without unnecessary bureaucratic delays.