Veterans' Entitlements (Pension Bonus Bereavement Payment - Disregarded Income) Specification 2007

Administered by Department of Veterans' Affairs

Legislation au F2007L04159 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

 

Veterans’ Entitlements (Pension Bonus Bereavement Payment — Disregarded Income) Specification 2007

 

Summary

 

This specification is made by the Repatriation Commission under subsection 45UUB(2) of the Veterans’ Entitlements Act 1986 (the Act).  It is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

 

The purpose of this specification is to specify kinds of income for the purposes of subparagraph 45UUB(1)(b)(ii) of the Act. 

 

The effect of this instrument is that a compensation amount paid in the form of periodic payments to a person or their partner is disregarded in the calculation of any pension bonus bereavement payment that may be payable to the person.

 

Background

 

The Families, Community Services and Indigenous Affairs Legislation Amendment (Further 2007 Budget Measures) Act 2007 inserted into the Act a new Division 11A in Part IIIAB to introduce a new a new one-off payment called pension bonus bereavement payment.  

 

Under the new Division, a person is qualified for a pension bonus bereavement payment if the person’s partner dies and, immediately before their death, the partner was a registered member of the pension bonus scheme but had not made a claim for age pension or a pension bonus. 

 

To work out the amount of pension bonus bereavement payment, the amount of pension bonus that would have been payable had the partner of the person made claims for both age service pension, partner service pension or income support supplement and pension bonus just before the partner died is determined.  However, in determining the amount payable, any ‘PBBP employment income’ (a term that is defined in the new Division 11A) is disregarded as well as any income that is specified in this instrument.

 

This instrument specifies (in conjunction with subsection 5NB(2) of the Act) that a payment of damages or compensation, so long as it is paid as a periodic payment, is also to be disregarded when calculating the quantum of any pension bonus bereavement payment that may be payable to a person.  For the purposes of this instrument, the term “compensation” means a payment of damages, a payment under a scheme of insurance or compensation under a Commonwealth, State or Territory law, including a payment under a contract entered into under such a scheme, a payment (with or without admission of liability) in settlement of a claim for damages or a claim under such an insurance scheme, or any other compensation or damages payment (but excluding compensation for a criminal injury) that is made wholly or partly in respect of lost earnings or lost capacity to earn resulting from personal injury.

 

Explanation of Provisions

 

Section 1 states the name of the instrument.

 

Section 2 states that the instrument commences on 1 January 2008.  This means that the instrument will have effect on and from that date.

 

Section 3 contains the interpretation of the term Act as it is used in the instrument.  It means the Veterans’ Entitlements Act 1986.

 

Section 4 specifies an income type to be disregarded in determining a pension bonus bereavement payment that may be payable to a person.  That income is specified as compensation within the meaning in the Act that is paid in the form of periodic payments. 

 

Relevantly, compensation is defined by the Act as:

 

(a)   a payment of damages or compensation; or

(b)   a payment under a scheme of insurance or compensation under a law of the Commonwealth or of a State or Territory, or under a contract entered into under such a scheme;or

(c)   a payment (with or without admission of liability) in settlement of a claim for damages or a claim under such an insurance scheme;

 

(whether the payment is in the form of a lump sum or in the form of a series of periodic payments and whether it is made within or outside Australia) that is made wholly or partly in respect of lost earnings or lost capacity to earn resulting from personal injury.

 

(only part of the definition has been reproduced).

 

However, compensation excludes a payment under a law of the Commonwealth, a State or a Territory that provides for the payment of compensation for a criminal injury suffered, or a disease or injury contracted, as a result of the commission of an offence.

 

The effect of this section is that such compensation, provided it is paid in the form of periodic payments, is disregarded whether it is payable to the person who may be eligible for a pension bonus bereavement payment or their partner. 

 

Consultation

 

The Department of Families, Housing, Community Services and Indigenous Affairs was consulted during the preparation of this specification.  This was done to ensure a co-ordinated and consistent approach to the treatment of income types disregarded for the purpose of calculating pension bonus bereavement payments under both the Veterans’ Entitlements Act 1986 and the social security law.

 

This instrument is beneficial to persons whose partners are members of the pension bonus scheme because it has the effect of either increasing or not affecting the amount of any pension bonus bereavement payment that may be payable to them.  Public consultation was therefore seen as unnecessary.

 

Business Cost Calculator Figure

 

This specification does not require a Regulatory Impact Statement (RIS) and/or a Business Cost Calculator Figure.  This Specification is not regulatory in nature, will not impact on business activity and will have no, or minimal, compliance costs or competition impact.  It is not expected that any compliance costs will be incurred by business as a result of the effect of this instrument.

Overview

The Veterans’ Entitlements (Pension Bonus Bereavement Payment — Disregarded Income) Specification 2007 is a legislative instrument created under the authority of subsection 45UUB(2) of the Veterans’ Entitlements Act 1986. This specification was enacted to address a gap in the calculation of pension bonus bereavement payments by specifying types of income that should be disregarded in the determination of such payments. This instrument was introduced by the Families, Community Services and Indigenous Affairs Legislation Amendment (Further 2007 Budget Measures) Act 2007, which sought to establish a new one-off payment for eligible veterans whose partners had been members of the pension bonus scheme but had not claimed age pension or pension bonus prior to their death. The overarching policy objective of this specification is to ensure a coordinated and consistent approach in the treatment of income types that are disregarded for the purposes of calculating pension bonus bereavement payments under both the Veterans’ Entitlements Act 1986 and social security law, thereby potentially increasing or maintaining the amount of pension bonus bereavement payment for eligible individuals.

Scope and Application

The Veterans’ Entitlements (Pension Bonus Bereavement Payment — Disregarded Income) Specification 2007 applies to individuals who are eligible for a pension bonus bereavement payment under the Veterans’ Entitlements Act 1986. Specifically, it concerns those whose partners were members of the pension bonus scheme at the time of their death, without having made a claim for age pension or a pension bonus. The specification operates across the Commonwealth, as it is a legislative instrument made under the Act, and its purpose is to clarify the types of income that are disregarded when calculating the pension bonus bereavement payment. Compensation payments, such as those for lost earnings or lost capacity to earn due to personal injury, are disregarded if they are paid in periodic installments, thereby potentially increasing or maintaining the quantum of the bereavement payment. The Specification clarifies that such compensation, whether paid to the beneficiary or their deceased partner, is excluded from the income assessment for the payment, provided it is not compensation for a criminal injury or disease or injury resulting from a criminal act. The specification does not require consultation beyond that which was undertaken with the Department of Families, Housing, Community Services and Indigenous Affairs to ensure consistency with social security laws, and it is not expected to incur any compliance costs for businesses.

Key Provisions

The Veterans’ Entitlements (Pension Bonus Bereavement Payment — Disregarded Income) Specification 2007, under subsection 45UUB(2) of the Veterans’ Entitlements Act 1986 (section 4), specifies the types of income to be disregarded when calculating pension bonus bereavement payments. It clarifies that compensation payments made in periodic installments are disregarded, regardless of whether they are received by the person who may be eligible for the payment or their partner. Compensation, as defined in the Act, includes payments of damages, payments under insurance or compensation schemes, or payments settling claims for damages or under such schemes, provided they relate to lost earnings or lost capacity to earn due to personal injury. However, compensation for criminal injuries is excluded from this definition. The obligations under this Act require that any compensation payments made periodically be disregarded in the calculation of pension bonus bereavement payments. This means that such payments are not considered in determining the amount of the payment that may be payable to the person or their partner. This specification aligns with subsection 5NB(2) of the Act, ensuring that compensation payments, as defined, are excluded from the income assessment process for pension bonus bereavement payments. Breach of the provisions outlined in this specification could lead to errors in the calculation of pension bonus bereavement payments, potentially resulting in incorrect payments being made or withheld. While the specification itself does not outline specific penalties for breaches, any errors resulting from misinterpretation or non-compliance could be subject to review and correction under the general provisions of the Veterans’ Entitlements Act 1986. Such corrections may involve adjustments to payments already made, and in severe cases, could lead to administrative or legal consequences for those responsible for the miscalculations.

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Veterans' Law
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Legislative Instrument
Concepts
Definitions & Interpretation
Reporting & Disclosure Obligations
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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.