Veterans’ Entitlements (Special Disability Trust — Discretionary Spending) Determination 2015

Administered by Department of Veterans' Affairs

Legislation au F2015L01188 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Veterans’ Entitlements (Special Disability

Trust — Discretionary Spending) Determination 2015

Summary

 

The Veterans’ Entitlements (Special Disability Trust — Discretionary Spending) Determination 2015 is made under subsection 52ZZZWEA(3) of the Veterans’ Entitlements Act 1986 (the Act) and revokes the Veterans’ Entitlements (Special Disability Trust — Discretionary Spending) Determination 2014.

 

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 is taken to have commenced on 1 July 2015. 

Section 3 provides that the Veterans’ Entitlements (Special Disability Trust — Discretionary Spending) Determination 2014 is revoked.

Section 4 provides definitions of terms used in the Determination.

Section 5 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 and two hundred and fifty dollars ($11,250) in the 2015-2016 financial year.

Consultation

 

The Department of Social Services (DSS) was consulted (by e-mail) in respect of the attached Determination.  DSS has made a virtually identical instrument.  No issues arose in the course of that consultation.

 

Retrospectivity

 

The attached instrument commenced before registration.  However it does not infringe 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).  Subsection 12(2) 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 or affect competition and will impose no compliance requirements on beneficiaries.

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 2015

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 and two hundred and fifty dollars ($11, 250) in the 2015-2016 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 (delegate)

Rule Maker

Overview

The Veterans’ Entitlements (Special Disability Trust — Discretionary Spending) Determination 2015 was enacted to address the need for setting the maximum allowable spending from a Special Disability Trust for purposes other than the primary objectives of the trust, which is primarily for the benefit of the principal beneficiary. This Determination, made under subsection 52ZZZWEA(3) of the Veterans’ Entitlements Act 1986, was introduced by the Parliament of Australia to ensure that the discretionary spending limit of such trusts is appropriately indexed. The policy objective behind this Determination is to enhance the financial flexibility available to beneficiaries of Special Disability Trusts, thereby supporting their welfare and social security needs while ensuring that the trust retains its status and associated benefits. This legislative instrument is designed to be benevolent, increasing the discretionary spending limit from the existing earnings of the trust without imposing any liabilities or disadvantages to individuals.

Scope and Application

The Veterans’ Entitlements (Special Disability Trust — Discretionary Spending) Determination 2015 applies to special disability trusts under the Veterans’ Entitlements Act 1986, specifically focusing on the maximum allowable discretionary spending for the benefit of the principal beneficiary, excluding the primary purposes of the trust. The Determination is made under subsection 52ZZZWEA(3) of the Act and sets the maximum spending limit at $11,250 for the 2015-2016 financial year. It operates nationally across Australia, impacting veterans who have established special disability trusts and their beneficiaries. This Determination does not apply to other types of trusts or financial instruments outside the scope of special disability trusts. While the Determination itself is the primary legislative instrument, its application may be further defined or refined through subordinate instruments as necessary, though no such instruments are explicitly mentioned in the provided text. The benevolent nature of the Determination, which increases discretionary spending from the trust's earnings, ensures it does not disadvantage or impose liabilities on individuals contrary to legislative requirements.

Key Provisions

The Veterans’ Entitlements (Special Disability Trust — Discretionary Spending) Determination 2015 (the Determination) is a legislative instrument made under subsection 52ZZZWEA(3) of the Veterans’ Entitlements Act 1986 (the Act). It revokes the Veterans’ Entitlements (Special Disability Trust — Discretionary Spending) Determination 2014 and sets out the maximum value of the trust’s income and assets that can be spent by the special disability trust for purposes that are primarily for the benefit of the principal beneficiary (other than the primary purposes of a special disability trust). This maximum value is eleven thousand and two hundred and fifty dollars ($11,250) for the 2015-2016 financial year. The Determination imposes obligations on trustees of special disability trusts to ensure that the spending of the trust’s income and assets does not exceed the specified maximum value for discretionary purposes. Trustees must adhere to the parameters set out in the Determination to maintain the ‘Special Disability Trust’ status and ensure that the trust’s primary purposes are not compromised. Trustees are required to manage the trust’s funds in a way that benefits the principal beneficiary within the prescribed limits. Breaches of the Determination could result in civil or criminal consequences. Trustees who exceed the specified maximum value for discretionary spending may face penalties, although the specific penalties are not detailed in the Determination. Trustees are expected to act in compliance with the Act and the Determination to avoid any adverse outcomes. The Determination does not specify maximum penalties but implies that any misuse of trust funds could lead to legal repercussions. Trustees must ensure that the trust’s operations remain within the legal framework to prevent any potential liabilities.

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Social Security Law
Instrument
Legislative Instrument
Concepts
Definitions & Interpretation
Repeal & Amendment
Human Rights Law

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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.