EXPLANATORY STATEMENT

Veterans’ Entitlements Income (Exempt Lump Sum - Queensland Indigenous Reparation Payment) Determination

2006 No.R5

Subsection 5H(12) 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 once it is stated to be an exempt lump sum by a determination under paragraph 5H(12)(c) of the Veterans’ Entitlements Act 1986 (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

This instrument determines that a payment made by the Queensland Government under the Indigenous Wages and Savings Reparation Process, is an exempt lump sum for the purposes of paragraph 5H(12)(c).

Under the Indigenous Wages and Savings Reparations Process, the Queensland Government compensates indigenous people whose wages and salaries were controlled under the Queensland Protection Acts.  Such people were paid lower wage rates than other workers, were forced to make compulsory savings, and had to seek the Government’s permission to access their own money.  A previous instrument made in 2003 (the Veterans’ Entitlements Income Exempt Lump Sum Determination No. 2 of 2003 Reg.No: F2005BO2335) excluded payments made under this process in respect of the period 1897 to 1965.  However, some affected people actually received these payments in respect of a period up to 1986.  This instrument extends to payments up to 1986 to ensure that everyone who received these payments are treated consistently.

The effect of this instrument is that a person who receives a payment under the Queensland Indigenous Wages and Savings Reparations Process, and who also receives an income support payment from the Department of Veterans’ Affairs, will not have their income support payment reduced because of the Queensland Government payments that they have received, as these payments will not be regarded as income for the purposes of the veterans’ entitlements income test.

Consultation

This instrument was made at the request of the Queensland Department of Aboriginal and Torres Strait Islander Policy.

The Department of Family and Community Services (which made a virtually identical instrument for its relevant clients) has consulted with the Department of Employment and Workplace Relations and the Department of Education, Science and Training, as well as the Department of Veterans’ Affairs to ensure a coordinated and consistent approach to the administration of this Queensland Government payment.

This instrument is beneficial to clients as it exempts the Queensland Indigenous Reparation  payment from the veterans’ entitlements income test.  Public consultation was therefore seen as unnecessary.