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.
Overview
The Veterans’ Entitlements Income (Exempt Lump Sum - Queensland Indigenous Reparation Payment) Determination 2006 was enacted to address the issue of means-testing for veterans' entitlements, specifically ensuring that payments made by the Queensland Government under the Indigenous Wages and Savings Reparation Process are not considered ordinary income for veterans receiving support from the Department of Veterans’ Affairs. This instrument extends the exemption of such reparation payments from income assessment to cover periods up to 1986, ensuring that all affected individuals are treated consistently. The determination was introduced by the Parliament of Australia under the authority of the Veterans’ Entitlements Act 1986 and aims to provide financial relief to those who suffered under discriminatory wage practices by preventing their reparation payments from affecting their income support.
Scope and Application
The Veterans’ Entitlements Income (Exempt Lump Sum - Queensland Indigenous Reparation Payment) Determination 2006 applies to individuals who receive payments under the Queensland Indigenous Wages and Savings Reparation Process and who are also recipients of an income support payment from the Department of Veterans’ Affairs. This legislation specifically targets those affected by the Queensland Protection Acts, who were historically subjected to lower wage rates, compulsory savings, and restrictions on accessing their own money. The determination exempts these reparation payments from being considered ordinary income for the purposes of means-testing for veterans’ service pensions or income support supplements under the Veterans’ Entitlements Act 1986. The instrument extends the scope of the 2003 determination to include reparation payments made up until 1986, thereby ensuring consistent treatment of all eligible recipients. The exemption applies nationally, as the Veterans’ Entitlements Act operates at the Commonwealth level, but the reparation payments are specific to Queensland. No public consultation was deemed necessary as the determination was made at the request of the Queensland Department of Aboriginal and Torres Strait Islander Policy, in consultation with other relevant federal departments.
Key Provisions
The main operative sections of this determination (Part 2 of the Schedule) specify the amount of the Queensland Indigenous Reparation Payment that is exempt from being considered ordinary income for the purposes of the veterans’ entitlements income test under subsection 5H(12)(c) of the Veterans’ Entitlements Act 1986 (VEA). This means that any payment made by the Queensland Government under the Indigenous Wages and Savings Reparation Process is not counted as income when assessing eligibility for veterans’ income support payments. The determination ensures that affected individuals do not face a reduction in their income support due to these reparation payments.
The Act imposes certain obligations on the parties it governs. Firstly, it requires the Queensland Government to make reparation payments to eligible Indigenous individuals who were affected by the Queensland Protection Acts. These payments are meant to compensate for the lower wages, compulsory savings, and restricted access to personal funds imposed on these individuals. Secondly, the Department of Veterans’ Affairs must ensure that these reparation payments are not considered when assessing the income of individuals receiving veterans’ income support. This is to ensure that the reparation payments do not negatively impact the income support eligibility of those who receive them.
There are no specific offences, penalties, or civil/criminal consequences mentioned in this determination for breaches of the provisions. However, the failure to comply with the requirements of the Act could result in individuals receiving less income support than they are entitled to, or potentially being incorrectly assessed as ineligible for income support. The main consequence of non-compliance would be the financial hardship faced by eligible individuals who do not receive the full amount of income support to which they are entitled. This could potentially lead to legal challenges or complaints being raised by affected individuals or advocacy groups.