Veterans’ Entitlements Income (Exempt Lump Sum — Redress WA) Determination No. R 10 of 2008

Overview

The Veterans’ Entitlements Income (Exempt Lump Sum – Redress WA) Determination Instrument No. R10/2008 was introduced to address the issue of ensuring that ex-gratia payments made by the State of Western Australia under the Redress WA scheme do not affect the income support payments of eligible veterans receiving income support under the Veterans’ Entitlements Act 1986 (VEA). Enacted in 2008 by the Australian Parliament, this instrument ensures that these payments are exempt from being considered as ordinary income for the purposes of the VEA’s income test. The objective of the instrument is to provide clarity and consistency in the application of the law, ensuring that veterans do not face a reduction in their income support payments due to the receipt of these ex-gratia payments, which are intended to assist in the healing process of those who experienced abuse while in State care.

Scope and Application

The Veterans’ Entitlements Income (Exempt Lump Sum – Redress WA) Determination 2008 applies to individuals receiving income support pensions under the Veterans’ Entitlements Act 1986 who are also recipients of an ex-gratia payment from the State of Western Australia under the Redress WA scheme. This determination ensures that such payments are treated as exempt lump sums for the purposes of the VEA income test, thereby preventing these payments from affecting the income support payments of eligible veterans. The instrument extends across the Commonwealth as it pertains to federal legislation but is specifically concerned with payments made under a state initiative in Western Australia. The instrument does not apply to payments made under other schemes or by other entities, and it is tailored to the specific criteria and payments outlined in the Redress WA scheme. There are no exclusions or exemptions within the scope of this instrument other than those already defined by the State of Western Australia’s eligibility criteria for Redress WA payments. The instrument is effective from 1 May 2008, aligning with the commencement of the Redress WA payments.

Key Provisions

The main operative sections of this Determination are set out in Part 2 of the Schedule, which specifies the amount of the exempt lump sum for Redress WA payments. According to section 3 of the Determination, an ex-gratia payment made by the State of Western Australia under the Redress WA scheme is deemed to be an exempt lump sum for the purposes of the definition of ‘ordinary income’ in subsection 5H(1) of the Veterans’ Entitlements Act 1986 (VEA). This means that such payments will not be counted as income when assessing a veteran’s entitlement to a service pension or income support supplement. The amount specified in Part 2 of the Schedule as an exempt lump sum is the maximum total payment available to an individual under Redress WA, which is $80,000 (section 3(2)). The obligations imposed by this Act on the parties it governs are primarily concerned with the administration of the Redress WA scheme and the calculation of eligible payments. The State of Western Australia is responsible for determining who is eligible for an ex-gratia payment under the scheme, in accordance with its own criteria, which include the requirement that applicants must be over 18 years of age or the legal guardian of a person aged over 18 years with a legal disability, and must provide evidence of abuse or neglect while in State care. The Department of Veterans’ Affairs is responsible for ensuring that the Determination has the same effect as a similar instrument executed under social security law, and for consulting with the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) to ensure consistency of approach. There are no specific offences, penalties, or civil/criminal consequences for breach of this Determination. However, it is important to note that the purpose of the ex-gratia payment is to assist individuals with the healing process, and that the payment is not intended to provide compensation for any harm experienced. The payment is part of a range of support services offered by the State of Western Australia, including financial and psychological counselling and legal advice, as well as the offer of an apology. An ex-gratia payment does not represent a receipt of money for services rendered directly or indirectly. Any breach of the terms and conditions of the Redress WA scheme, or any fraudulent activity in relation to the receipt of an ex-gratia payment, may be subject to investigation and prosecution under other relevant legislation. In summary, this Determination ensures that ex-gratia payments made by the State of Western Australia under the Redress WA scheme are exempt from the income assessment of veterans receiving service pensions or income support supplements under the VEA. The maximum total payment available to an individual under Redress WA is $80,000, and the purpose of the payment is to assist individuals with the healing process, rather than to provide compensation for harm experienced. There are no specific offences, penalties, or civil/criminal consequences for breach of this Determination, but any fraudulent activity in relation to the receipt of an ex-gratia payment may be subject to investigation and prosecution under other relevant legislation.