EXPLANATORY STATEMENT
Veterans’ Entitlements Income (Exempt Lump Sum – Queensland Government Redress Scheme) Determination
Instrument No. R6/2008
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 first level and second level payments under the Queensland Government Redress Scheme from the income assessment of the person’s or the person’s partner’s service pension or income support supplement.
Background
The Queensland Government Redress Scheme was announced on 31 May 2007 in response to the Forde Inquiry, commissioned by the Queensland Government in 1998 -1999. The inquiry investigated the treatment of children in licensed government and non government institutions in Queensland. The terms of reference of the inquiry covered 159 institutions during the period 1911 to 1999 and excluded foster care and institutions providing care for children with disabilities or those suffering from acute or chronic health problems. The Redress Scheme will provide ex-gratia payments from 1 October 2007 to eligible individuals. These will be in the form of first and second level payments.
A first level payment is an initial payment of $7,000 made by the Queensland Government under the Redress Scheme. Broadly, such payments are made to an individual who:
- was in a Queensland licensed government or non-government institution or detention centre covered by the terms of reference of the Forde Inquiry;
- on or before 31 December 1999, turned 18 years of age, and was released from an institution or centre; and
- suffered abuse or neglect while in the care, protection or detention of such an institution or centre.
In addition to the payment of $7,000, the Queensland Government has also made available a second payment. This “second level payment” is up to $33,000 and is available to an individual who:
- has been determined as eligible for the first level payment; and
- can satisfy a three person expert panel established by the Queensland Government that he or she has suffered significant abuse or neglect while in the care, protection or detention of an institution or centre covered by the terms of reference of the Forde Inquiry.
The Queensland Government will determine who is eligible for a first level payment and a second level payment in accordance with its own criteria, including the criteria noted above. In accordance with the criteria set down by the Queensland Government, the total payment available to an individual under the Redress Scheme is $40,000 (inclusive of first and second level payments).
The purpose of this instrument is to ensure that a first level payment and second level payment received under the Queensland Government Redress Scheme 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 first level payment and second level payment under the Queensland Government Redress Scheme because the payments will not be regarded as income for the purposes of the VEA income test.
Consultation
In the interest of consistency of approach, the Department has worked closely with the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) to ensure that this instrument has the same effect as a similar instrument executed on 6 September 2007 under the social security law.
This instrument is beneficial to pensioners because it exempts from the VEA income test a first level payment and second level payment under the Queensland Government Redress Scheme. Public consultation was therefore seen as unnecessary.
Retrospectivity
FaHCSIA has already exempted first level payments and second level payments under the Queensland Government Redress Scheme. The relevant instrument under the social security law operates from 6 September 2007. The payments are entirely beneficial to eligible Department of Veterans’ Affairs income support recipients and does not disadvantage them in any way.