Veterans’ Entitlements (Special Disability Trust — Discretionary Spending) Determination 2014

Administered by Department of Veterans' Affairs

Legislation au F2014L00818 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Veterans’ Entitlements (Special Disability

Trust — Discretionary Spending) Determination 2014

Summary

 

The Veterans’ Entitlements (Special Disability Trust — Discretionary Spending) Determination 2014 is made under subsection 52ZZZWEA(3) of the Veterans’ Entitlements Act 1986 (the Act) and provides that under section 33(3) of the Acts Interpretation Act 1901 the Veterans’ Entitlements (Special Disability Trust — Discretionary Spending) Determination 2013 is revoked.

 

The purpose of the Determination is to set out the maximum amount of a special disability trust’s income and assets that can be spent for purposes that are primarily for the benefit of the principal beneficiary (other than the primary purposes of a special disability trust).

 

The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

 

Section 1 sets out the name of the Determination.

Section 2 provides that the Determination commences, or is taken to have commenced, on 1 July 2014. 

Section 3 provides definitions of terms used in the Determination.

Section 4 provides that, for the purposes of subsection 52ZZZWEA(3) of the Act, the maximum value of the trust’s income and assets that can be spent by the special disability trust for other purposes that are primarily for the benefit of the principal beneficiary (other than the primary purposes of a special disability trust), is eleven thousand dollars ($11,000) in the 2014-2015 financial year.

Consultation

 

The Department of Social Services (DSS) was consulted (by e-mail) in the making of the attached Determination.  DSS proposed a virtual identical instrument to the one attached and the Department of Veterans’ Affairs (DVA) consulted DSS (the leading agency in the exercise) from the viewpoint of ensuring a co-ordinated approach in terms of the content and timing of the relevant instruments.  No issues arose in the course of that consultation.

 

Retrospectivity

 

The attached instrument could commence before registration.  If that occurs subsection 12(2) of the Legislative Instruments Act 2003 (legislative instrument of no effect if it takes effect before registration and disadvantages a person or imposes liabilities on a person) would not be infringed because the instrument is benevolent in nature i.e. it increases the maximum amount from the Disability Trust's existing earnings that can be expended on discretionary spending.

 

Regulation Impact Statement

 

A Regulation Impact Statement is not required for the Determination because the Determination is not regulatory in nature, will not impact on business activity and will have no, or minimal, compliance costs or competition.

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Veterans’ Entitlements (Special Disability Trust — Discretionary Spending) Determination 2014

The Determination is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Determination

The Determination is made under subsection 52ZZZWEA(3) of the Veterans’ Entitlements Act 1986.

 

The purpose of the Determination is to set out the maximum amount of the income and assets of a special disability trust that can be spent for purposes that are primarily for the benefit of the principal beneficiary (other than the primary purposes of a special disability trust). The maximum amount is eleven thousand dollars ($11,000) in the 2014-2015 financial year.

 

Human rights implications

The Determination engages the following human right:

Right to Social Security

Article 9 of the International Covenant on Economic, Social and Cultural Rights recognises the right of everyone to social security. Article 28 of the Convention on the Rights of Persons with Disabilities recognises the rights of persons with disability to an adequate standard of living and social protection.

The Determination is designed to allow a certain amount of trust income and assets to be used for the benefit of the principal beneficiary but for purposes other than the primary purposes of the trust, while maintaining the ‘Special Disability Trust’ status. Increasing the amount will have positive implications for persons with a disability, as it will mean that more of their income is not considered ordinary income for veterans’ entitlements  assessment purposes.

The Determination will promote the right to social security and social protection by increasing the amount of discretionary use of Special Disability Trust funds permitted in line with indexation, before the Trust loses its status and exemption from assessment as income for veterans’ entitlements purposes.

Conclusion

This Determination is compatible with human rights as it promotes human rights issues.

 

Repatriation Commission

Rule Maker

Overview

The Veterans’ Entitlements (Special Disability Trust — Discretionary Spending) Determination 2014 was enacted to address the issue of setting a maximum limit on the discretionary spending of income and assets from a special disability trust for purposes that benefit the principal beneficiary, excluding primary trust purposes. This Determination was made under the Veterans’ Entitlements Act 1986 and was introduced by the Parliament of Australia to provide clarity and regulation on how much of the special disability trust’s funds can be used outside the primary objectives of the trust. The primary policy objective of this Determination is to enhance the social security and protection of individuals with disabilities by allowing increased discretionary spending from their special disability trusts while ensuring the trusts retain their special status. The Determination specifies that the maximum amount allowable for discretionary spending in the 2014-2015 financial year is eleven thousand dollars ($11,000), reflecting an adjustment aligned with indexation and designed to promote the welfare of veterans with disabilities.

Scope and Application

The Veterans’ Entitlements (Special Disability Trust — Discretionary Spending) Determination 2014 applies to special disability trusts under the Veterans’ Entitlements Act 1986. These trusts are typically established to manage the income and assets of veterans with disabilities, ensuring that their financial resources are used appropriately for their benefit. The Determination sets the maximum amount of trust income and assets that can be spent on purposes primarily for the benefit of the principal beneficiary, excluding the primary purposes of the trust, at eleven thousand dollars ($11,000) for the 2014-2015 financial year. This legislation has a Commonwealth reach, operating under the authority of the Australian government. There are no exclusions or exemptions specified in the Determination, but it does not apply to any other type of trust or entity outside the scope of special disability trusts for veterans. The Determination does not extend or restrict its application through subordinate instruments, standing alone in its legislative capacity.

Key Provisions

The Veterans’ Entitlements (Special Disability Trust — Discretionary Spending) Determination 2014 (the Determination) sets out the maximum amount of a special disability trust's income and assets that can be spent for purposes that are primarily for the benefit of the principal beneficiary, excluding the primary purposes of a special disability trust (section 4). Specifically, for the 2014-2015 financial year, this amount is eleven thousand dollars ($11,000). The Determination revokes the Veterans’ Entitlements (Special Disability Trust — Discretionary Spending) Determination 2013 (section 1). It commences on 1 July 2014 (section 2). Definitions of key terms are provided in section 3. The Determination is made under subsection 52ZZZWEA(3) of the Veterans’ Entitlements Act 1986 (the Act) and is a legislative instrument for the purposes of the Legislative Instruments Act 2003. The Determination imposes specific obligations on parties managing special disability trusts. Trustees must ensure that any discretionary spending does not exceed the maximum value specified, which is $11,000 for the 2014-2015 financial year. Trustees must also maintain records demonstrating compliance with this limit and the primary purposes of the trust. Trustees are required to use the funds for the benefit of the principal beneficiary, but only for purposes other than the primary purposes of the trust. The Determination ensures that any discretionary spending is within the bounds of the law and does not compromise the status and exemption of the trust from assessment as income for veterans’ entitlements purposes. Breaches of the Determination could lead to civil or criminal consequences. Trustees who spend more than the allowed maximum could face penalties, including fines or other sanctions, as stipulated by the relevant provisions of the Veterans’ Entitlements Act 1986. Such breaches may also result in the trust losing its status and exemption from assessment as income for veterans’ entitlements purposes. Additionally, trustees could face legal action from beneficiaries or other affected parties if they misuse trust funds. The exact penalties would depend on the specific circumstances of the breach and the applicable laws.

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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.