Overview

The Veterans' Entitlements (Income stream) Determination 2007 was enacted to provide clarity and standards for the application of veterans' entitlements to certain income streams, particularly those established before 1998. This Determination was made under the authority of the Veterans’ Entitlements Act 1986 and aims to ensure that pre-1998 income streams meet specific criteria to qualify as "defined benefit income streams" for the purposes of the Act. Furthermore, it specifies the types of account-based income stream products that are subject to section 46YA of the Act and defines the "minimum amount" used in the formula for calculating income from these products. The policy objective behind this Determination is to harmonise the application of the veterans' entitlements means test and the social security means test to income streams that can access new withdrawal limits, as introduced by the Families, Community Services and Indigenous Affairs Legislation Amendment (Child Support Reform Consolidation and Other Measures) Act 2007. This Determination was made by the Minister for Veterans’ Affairs and applies retrospectively from 1 July 2007. It was developed in consultation with various government departments, including the Department of Families, Community Services and Indigenous Affairs, the Department of Employment and Workplace Relations, the Department of Education, Science and Training, and the Department of the Treasury. The consultation process aimed to ensure a coordinated approach to the treatment of income streams under the Social Security Act 1991. The Determination does not negatively affect the rights of any person and does not impose any liability on any person other than the Commonwealth.

Scope and Application

The Veterans' Entitlements (Income stream) Determination 2007 is an instrument made under the Veterans' Entitlements Act 1986, and it specifies certain standards that a pre-1998 income stream must satisfy to be considered a "defined benefit income stream" for veterans’ entitlements purposes. This determination also defines the types of account-based income stream products to which section 46YA of the Act applies, and it outlines the method for calculating the "minimum amount" as per subsection 46YA(3) of the Act. The Determination applies to pre-1998 income streams sourced from defined benefit superannuation funds, ensuring that they meet the relevant standards determined by the Minister for Veterans' Affairs, which are aligned with certain provisions of the Superannuation Industry (Supervision) Regulations 1994. The instrument commenced on 1 July 2007 and applies retrospectively from that date. Consultation was conducted with several departments, including the Department of Families, Community Services and Indigenous Affairs, to ensure a coordinated approach in the treatment of income streams under relevant legislation. The Determination extends its application through the Veterans’ Entitlements Act 1986 and the Superannuation Industry (Supervision) Regulations 1994, with no explicit exclusions or exemptions mentioned in the text. It is intended to ensure that the veterans’ entitlements means test and the social security means test apply appropriately to income streams, particularly those that can access the new withdrawal limits for account-based income streams as per the Families, Community Services and Indigenous Affairs Legislation Amendment (Child Support Reform Consolidation and Other Measures) Act 2007. The instrument does not negatively affect any person's rights or impose liability on any person other than the Commonwealth, as per subsection 12(2) of the Legislative Instruments Act 2003.

Key Provisions

The Veterans' Entitlements (Income stream) Determination 2007, which is made under specific subsections of the Veterans’ Entitlements Act 1986 (the Act), serves to define standards for pre-1998 income streams and types of account-based income stream products that will be subject to section 46YA of the Act. It also specifies the method for calculating the "minimum amount" used in the formula in subsection 46YA(3) of the Act (Sections 1 to 7). These sections essentially lay out the criteria and definitions necessary for interpreting and applying the Act to certain income streams, particularly those established before 20 September 1998. The Determination imposes specific obligations on entities and individuals who are subject to its provisions. Pre-1998 lifetime income streams sourced from defined benefit superannuation funds must satisfy certain rules and standards, including those outlined in the Superannuation Industry (Supervision) Regulations 1994. Additionally, account-based pensions and annuities that meet the Minister's determined standards are subject to section 46YA, which requires a certain amount of income to be considered as income for the purposes of the Act. The method for calculating the "minimum amount" is specified in the Determination, ensuring clarity in financial assessments and entitlements (Sections 3 to 7). Breaches of the provisions outlined in the Determination can lead to various civil and criminal consequences. Although the Determination does not explicitly state penalties, violations of the Veterans’ Entitlements Act 1986, which the Determination supports, can result in fines and other penalties as prescribed by law. The Determination applies retrospectively from 1 July 2007, and according to subsection 12(2) of the Legislative Instruments Act 2003, it does not negatively affect the rights of any person or impose a liability on any person other than the Commonwealth. This ensures that while the Determination is retroactive, it does not unfairly disadvantage those who were compliant prior to its enactment.