Veterans' Entitlements Income (Exempt Lump Sum - Queensland Government Redress Scheme) Determination No. R6 of 2008

Administered by Department of Veterans' Affairs

Legislation au F2008L00304 Not in force Legislative Instrument

Legislation content

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.

 

 

Overview

The Veterans’ Entitlements Income (Exempt Lump Sum – Queensland Government Redress Scheme) Determination 2008 (F2008L00304) was introduced to address the issue of income assessment for veterans receiving payments under the Queensland Government Redress Scheme. Enacted by the Australian Parliament, this instrument aims to ensure that the first and second level payments provided under the Queensland Government Redress Scheme are exempt from being considered ordinary income for the purposes of means-testing under the Veterans’ Entitlements Act 1986 (VEA). The policy objective is to protect the income support payments of veterans from reduction due to the receipt of these redress payments. This legislative measure was enacted in response to the Forde Inquiry, which investigated the treatment of children in various institutions in Queensland, and seeks to provide relief to those who suffered abuse or neglect by exempting the redress payments from income assessment.

Scope and Application

The Veterans' Entitlements Income (Exempt Lump Sum – Queensland Government Redress Scheme) Determination 2008 aims to ensure that specific payments made under the Queensland Government Redress Scheme are not considered as ordinary income for means-testing purposes under the Veterans' Entitlements Act 1986 (VEA). This determination applies to eligible individuals who receive first level and second level payments under the Redress Scheme, which were established in response to the Forde Inquiry into the treatment of children in Queensland institutions. The first level payment, amounting to $7,000, is made to individuals who were in certain institutions and suffered abuse or neglect before turning 18 and being released by 31 December 1999. The second level payment, up to $33,000, is available to those who can prove significant abuse or neglect. The total amount available under the scheme is capped at $40,000. This exemption ensures that veterans or their partners receiving service pensions or income support supplements from the Commonwealth will not face a reduction in their payments due to these redress payments, as they will not be regarded as income for the purposes of the VEA income test.

Key Provisions

The main operative sections of this Determination (F2008L00304) clarify that first level and second level payments under the Queensland Government Redress Scheme will be treated as exempt lump sums for the purposes of the Veterans’ Entitlements Act 1986 (VEA). This is achieved through a specific determination under paragraph 5H(12)(c) of the VEA, which explicitly states that these payments will not be considered ordinary income for the purposes of means-testing. The amount specified in the Determination at Part 2 of the Schedule is recognised as an exempt lump sum for the definition of ‘ordinary income’ as outlined in subsection 5H(1) of the VEA. The obligations and requirements imposed by this Determination are primarily on the Queensland Government and the Department of Veterans’ Affairs. The Queensland Government must determine the eligibility for first and second level payments according to their own criteria, which include specific conditions such as the individual’s placement in a relevant institution, their age at release, and the nature of the abuse or neglect suffered. The Department of Veterans’ Affairs, in turn, must ensure that these payments are treated appropriately under the VEA, ensuring that income support recipients do not face reductions in their payments due to these lump sum payments. This involves clear communication and coordination between these entities to maintain the integrity of the income assessment process. The Determination also addresses potential breaches by clarifying that any deviation from the established criteria for the payments, or any incorrect treatment of these payments as ordinary income, could lead to improper assessment of income support entitlements. While specific offences and penalties are not detailed in the text, any breach of the requirements outlined in the VEA could potentially result in civil or criminal consequences, including the possibility of financial penalties or other legal actions as prescribed under the relevant sections of the VEA. The exact penalties would depend on the nature and severity of the breach, as outlined in other provisions of the VEA.

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Area of Law
Veterans' Law
Social Security Law
Instrument
Regulation
Concepts
Definitions & Interpretation
Exempt Lump Sum
Repeal & Amendment
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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.