No. 73 of 1991

TABLE OF PROVISIONS

PART 1—PRELIMINARY

TABLE OF PROVISIONS—continued

Veterans’ Entitlements (Rewrite) Transition Act 1991

No. 73 of 1991

An Act to make consequential amendments and savings and transitional provisions relating to the Veterans’ Entitlements Amendment Act 1991

[Assented to 25 June 1991]

The Parliament of Australia enacts:

PART 1—PRELIMINARY

Short title

1. (1) This Act may be cited as the Veterans’ Entitlements (Rewrite)

Transition Act 1991.

(2) In this Act, “Principal Act” means the Veterans’ Entitlements Act 19861.

Commencement

2. (1) Subject to subsection (2), this Act commences on 1 July 1991, immediately after the commencement of the Veterans’ Entitlements Amendment Act 1991.

(2) Section 19 commences immediately after the commencement of section 22.

PART 2—SAVINGS AND TRANSITIONAL PROVISIONS

Division 1—General

Interpretation

3. In this Part:

“former Part III” means Part III of the Principal Act as in force immediately before 1 July 1991;

“new Part III” means Part III of the Principal Act as in force on 1 July 1991.

Correspondence of pensions

4. For the purposes of this Part:

(c)     a wife’s service pension granted to a person because of section

40 of the former Part III and a wife service pension under the new Part III correspond to each other; and

(d) a carer’s service pension granted to a person because of section

41 of the former Part III and a carer service pension under the new Part III correspond to each other.

Correspondence of provisions

5. (1) If one provision of the former Part III and one provision of the new Part III have the same legal effect, the 2 provisions correspond to each other.

(2) If:

the provisions correspond to each other for the purposes of applying this Part (Savings and Transitional Provisions) to that payment type.

(3) In this section:

“legal effect” includes conferring the power to issue an instrument.

Division 2—Savings

General aim of Division

6. The main aim of this Division is to allow:

without the need for people to make new claims or begin those processes again.

Saving of pensions and qualifying service determinations

7. (1) If a determination granting a claim for a pension, or a decision that a person has rendered qualifying service, under the former Part III is in force immediately before I July 1991, the determination or decision has effect, from 1 July 1991, as if it were a determination under the new Part III granting a claim for the corresponding pension under the new Part III or granting a claim for a qualifying service determination under the new Part III.

(2) If a determination directing the making of a payment of a pension under the former Part III is in force immediately before 1 July 1991, the determination has effect, from 1 July 1991, as if it were a determination under the new Part III directing the making of a payment of the corresponding pension under the new Part III.

(3) If a determination of the rate of a pension under the former Part III is in force immediately before 1 July 1991, the determination has effect, from 1 July 1991, as if it were a determination under the new Part III of the rate of the corresponding pension under the new Part III.

Instruments in force on 30 June 1991

8. (1) If:

the instrument has effect as if it were an instrument made under the provision referred to in paragraph (c).

(2) Without limiting subsection (1), the instrument may be:

(a)     a determination or decision; or

(b)     a direction; or

(c)     an approval; or

(d)     a notice; or

(e)     a declaration; or

(f)      an authorisation.

(3) If an instrument to which subsection (1) applies was, when made, to have effect only for a limited period, the instrument has effect under subsection (1) only for so much of the period as had not already expired before 1 July 1991.

(a) a person has lodged a claim for:

(i) a pension; or

(ii) a decision that the person has rendered qualifying service; under the former Part III; and

(b)     the claim has not been determined before 1 July 1991; the claim has effect from 1 July 1991 as if it were a claim for:

(c)     a corresponding pension; or

(d)     a qualifying service determination; under the new Part III.

(2) If:

(a)     subsection (1) applies to a claim; and

(b)     a claim is granted under the new Part III;

the determination granting the claim may have a date of effect before 1 July 1991.

(3) If:

(a)     subsection (1) applies to a claim; and

(b)     the claim is granted under the new Part III; and

the payment of instalments during the period that starts on the date of effect of the determination and ends on 30 June 1991 is to be made under the new Part III and the person making the claim has no rights under the former Part III arising from the claim.

Unfinalised internal reviews

10. (1) If:

(b) the application has not been determined before 1 July 1991; the application has effect, from 1 July 1991, as if it were an application under subsection 57a (1) of the new Part III.

(2)    The date of effect of the decision made in response to the application may be before 1 July 1991.

(3)    If:

(a)     subsection (1) applies to an application; and

the decision has effect, for the period that starts on the date of effect of the decision and ends on 30 June 1991, as if it were a decision under section 59 of the former Part III.

Application to participate in the pension loans scheme

11. (1) If:

(b)     the request has not been determined before 1 July 1991;

the request has effect from 1 July 1991 as if it had been made under subsection 52zd (1) of the new Part III.

(2) If:

(a)     subsection (1) applies to a request; and

(b)     the request is granted under this Act;

the former Part III has effect, for the period that starts on the day on which the request was made and ends on 30 June 1991, as if the request had been granted under the former Part III.

Application to take advantage of hardship rules

12. (1) If:

(b)     the request was not determined before 1 July 1991;

the request has effect, from 1 July 1991 as if it had been made under subsection 52y (1) of the new Part III.

(2)     A decision in response to the request will have a date of effect before 1 July 1991 (see subsection 52y (3) of the new Part III).

(3)     If:

(b)     the request is granted under the new Part III; and

the former Part III has effect, for the period that starts on the date of effect of the decision and ends on 30 June 1991, as if the decision had been made under the former Part III.

Payment of service pension to agent

13. If a pensioner has made a request in relation to a service pension, wife’s service pension or carer’s service pension under subsection 122 (2) of the Principal Act before 1 July 1991, the request has effect, from 1 July 1991, as if it had been made under subsection 58d (1)of the new Part III.

Request to terminate service pension

14. If a pensioner has made a request in relation to a service pension or wife’s service pension under subsection 124 (1) of the Principal Act before 1 July 1991, the request has effect, from 1 July 1991, as if it had been made under subsection 56J (1) of the new Part III.

Cancellation or suspension where person fails to draw instalments

15. If the Commission has cancelled or suspended a service pension or wife’s service pension under subsection 124 (2) of the Principal Act before 1 July 1991, the cancellation or suspension has effect, from 1 July 1991, as if it had been made under section 56k of the new Part III.

Deduction of tax from service pension

16. If a pensioner has made a request under subsection 125 (2) of the Principal Act before 1 July 1991, the request has effect, from 1 July 1991, as if it had been made under section 58h of the new Part III.

Division 3—Transitional (1990 Budget)

Fringe benefits test—interest attributed to money not invested or invested at a low rate of interest (changes introduced on 1 March 1991)

17. If a person:

then, for the purposes of the Principal Act and other laws of the Commonwealth, the person is taken to be eligible for fringe benefits under Division 15 of the Principal Act if:

PART 3—INDEXATION AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986

Indexation amendments

18. The Principal Act is amended as set out in Schedule 1.

PART 4—1990 BUDGET AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986

1990 Budget amendments

19. The Principal Act is further amended as set out in Schedule 2.

PART 5—CONSEQUENTIAL AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986

Consequential amendments of the Veterans’ Entitlements Act 1986

20. The Principal Act is further amended as set out in Schedule 3.

PART 6—CONSEQUENTIAL AMENDMENTS OF OTHER ACTS

Consequential amendments of other Acts

21. The Acts specified in Schedule 4 are amended as set out in that Schedule.

PART 7—MINOR AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986

Minor amendments of the Veterans’ Entitlements Act 1986

22. The Principal Act is further amended as set out in Schedule 5.

SCHEDULE 1 Section 18

INDEXATION AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986

After section 5n:

Insert:

Indexation and rate adjustment definitions

“5na. (1) In this Act, unless the contrary intention appears: ‘current figure’, as at a particular time and in relation to an amount that is to be indexed or adjusted under Division 21 of Part III, means:

index number’, in relation to a quarter, means the All Groups Consumer Price Index number that is the weighted average of the 8 capital cities and is published by the Australian Statistician in respect of that quarter.

Publication of substituted index numbers

“(2) Subject to subsection (3), if at any time (whether before or after the commencement of this section), the Australian Statistician publishes an index number for a quarter in substitution for an index number previously published by the Australian Statistician for that quarter, the publication of the later index number is to be disregarded for the purposes of this section.

Change to CPI reference base

“(3) If at any time (whether before or after the commencement of this section) the Australian Statistician changes the reference base for the Consumer Price Index, regard is to be had, for the purposes of applying this section after the changed index place, only to index numbers published in terms of the new reference base.

After Division 20:

Insert the following Division in Part III:

“Division 21—Indexation

“Subdivision A—Preliminary

Analysis of Division

“59. This Division provides for:

SCHEDULE 1—continued

Indexed and adjusted amounts

“59a. The following Table sets out:

(c)     the provision or provisions in which that amount is to be found.

SCHEDULE 1—continued

SCHEDULE 1—continued

SCHEDULE 1—continued

SCHEDULE 1—continued

SCHEDULE 1—continued

“Subdivision B—CPI indexation

CPI Indexation Table

“59b. (1) An amount referred to in the following CPI Indexation Table is to be indexed under this Division on each indexation day for the amount, using the reference quarter and base quarter for the amount and indexation day and rounding off to the nearest multiple of the rounding amount:

SCHEDULE 1—continued

SCHEDULE 1—continued

SCHEDULE 1—continued

Highest quarter

“(2) A reference in the CPI Indexation Table to the highest of a group of quarters is a reference to the quarter in that group that has the highest index number.

Indexation of amounts

“59c. (1) If an amount is to be indexed under this Subdivision on an indexation day, this Act has effect as if the indexed amount were substituted for that amount on that day.

“(2) This is how to work out the indexed amount for an amount that is to be indexed under this Subdivision on an indexation day:

Note: for ‘current figure’ see subsection 5na (1).

Indexation factor

“59d. (1) Subject to subsections (2) and (3), the indexation factor for an amount that is to be indexed under this Subdivision on an indexation day is:

worked out to 3 decimal places.

Note: for ‘reference quarter’ and ‘base quarter’ see the CPI Indexation Table in section 59b.

“(2) If an indexation factor worked out under subsection (1) would, if it were worked out to 4 decimal places, end in a number that is greater than 4, the indexation factor is to be increased by 0.001.

“(3) If an indexation factor worked out under subsections (1) and (2) would be less than 1, the indexation factor is to be increased to 1.

Rounding off indexed amounts

“59e. (1) If a provisional indexed amount is a multiple of the rounding base, the provisional indexed amount becomes the indexed amount.

SCHEDULE 1—continued

Note 1 : for ‘provisional indexed amount’ see Step 3 in subsection 59c (2).

Note 2: for ‘rounding base’ see the CPI Indexation Table in section 59b.

“(2) If a provisional indexed amount is not a multiple of the rounding base, the indexed amount is the provisional indexed amount rounded up or down to the nearest multiple of the rounding base.

“(3) If a provisional indexed amount is not a multiple of the rounding base but is a multiple of half the rounding base, the indexed amount is the provisional indexed amount rounded up to the nearest multiple of the rounding base.

“Subdivision C—Adjustment of other rates

Adjustment of pension child add-ons

“59f. (1) This Act has effect as if, on 1 January each year, each pension under 13 child add-on were replaced with the amount that is the pension under 13 child add-on for the purposes of Part 3.16 (Indexation) of the Social Security Act on that day.

“(2) This Act has effect as if, on 1 January each year, each pension 13-15 child add-on were replaced with the amount that is the pension 13-15 child add-on for the purposes of Part 3.16 (Indexation) of the Social Security Act on that day.

Adjustment of pension guardian allowance

“59g. This Act has effect as if, on 1 January each year, the pension guardian allowance were replaced with the amount that is the pension guardian allowance for the purposes of Part 3.16 (Indexation) of the Social Security Act on that day.

Adjustment of pension “single” non-property owner AVL

“59h. This Act has effect as if, on 13 June each year, the amount worked out in accordance with the following formula were substituted for the pension ‘single’ non-property owner AVL:

where:

pension ‘single’ property owner AVL is the current figure, as at that 13 June, for the pension ‘single’ property owner AVL;

pension ‘partnered’ non-property owner AVL is the current figure, as at that 13 June, for the pension ‘partnered’ non-property owner AVL;

SCHEDULE 1—continued

pension ‘partnered’ property owner AVL is the current figure, as at that 13 June, for the pension ‘partnered’ property owner AVL.

Adjustment of special illness separated resident AVL

“59j. This Act has effect as if, on 13 June each year, the amount worked out in accordance with the following formula were substituted for each special illness separated retirement village resident AVL:

Adjustment of fringe benefits AVLs

“59k. (1) This Act has effect as if, on 13 June each year, the amount worked out in accordance with the following formula were substituted for the fringe benefits ‘single’ non-property owner AVL:

where:

fringe benefits ‘single’ property owner AVL is the current figure, as at that 13 June, for the fringe benefits ‘single’ property owner AVL;

pension ‘partnered’ non-property owner AVL is the current figure, as at that 13 June, for the pension ‘partnered’ non-property owner AVL;

pension ‘partnered’ property owner AVL is the current figure, as at that 13 June, for the pension ‘partnered’ property owner AVL.

“(2) This Act has effect as if, on 13 June each year, the amount worked out in accordance with the following formula were substituted for the fringe benefits ‘partnered’ non-property owner AVL:

where:

fringe benefits ‘partnered’ property owner AVL is the current figure, as at that 13 June, for the fringe benefits ‘partnered’ property owner AVL;

pension ‘partnered’ non-property owner AVL is the current figure, as at that 13 June, for the pension ‘partnered’ non-property owner AVL;

SCHEDULE 1—continued

pension ‘partnered’ property owner AVL is the current figure, as at that 13 June, for the pension ‘partnered’ property owner AVL.”.

SCHEDULE 2 Section 19

1990 BUDGET AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986

Section 5 (Index):

Insert the following terms in their respective appropriate alphabetical positions (determined on a letter-by-letter basis):

Subsection 5b (2):

Omit the subsection, substitute:

“(2) A reference in this Act to a person, or a unit of the Defence Force, that was allotted for duty in an operational area is a reference:

SCHEDULE 2—continued

Subsection 5f (1):

Insert:

“ ‘Aboriginal study assistance scheme’ means:

(a)     the ABSTUDY Scheme; or

(b)     the Aboriginal Overseas Study Assistance Scheme; or

(c)     a scheme prescribed for the purposes of this definition;”.

Subsection 5h (1):

Insert:

“ ‘available money’, in relation to a person, means money that:

(a)     is held by or on behalf of the person; and

(b)     is not deposit money of the person; and

‘deposit money’, in relation to a person, means the person’s money that is deposited in an account with a financial institution;”.

After paragraph 5h (8) (o):

Insert:

Paragraph 5h (8) (w):

Add at the end:

“or (ix) a widowed person allowance; or

(x) a widow B pension;”.

After paragraph 5h (8) (y):

Insert:

Subsection 5l (1):

Insert:

“ ‘granny flat interest’ has the meaning given by subsection (8a);”.

Subparagraph 5l (4) (a) (ii):

Omit the subparagraph, substitute:

“(ii) the person’s right or interest in the home:

SCHEDULE 2—continued

Subparagraph 5l (4) (b) (ii):

Omit the subparagraph, substitute:

After subsection 5l (8):

Insert:

Granny flat interest

“(8a) A person has a granny flat interest in the person’s principal home if:

(i) a right to accommodation for life in the residence; or

(ii) a life interest in the residence.”.

Paragraph 5l (7) (b):

Omit the paragraph, substitute:

(c) any period during which:

(d) where:

(e) where:

(i) the person is residing in a nursing home; and

SCHEDULE 2—continued

the period of 2 years from that death.

Note: for ‘residing in a nursing home’, see subsection 5n (8).”.

Subsection 5q (1) (definition of “account”):

Omit the definition, substitute:

“ ‘account’, in relation to a financial institution, means the account maintained by a person with the institution to which is credited money received on deposit by the institution from that person;”.

Subsection 5q (1) (after the definition of “determination of entitlements”):

Insert:

“ ‘financial institution’ means a bank, building society, credit union or other institution that receives money on deposit;”.

Subsection 5q (1) (after paragraph (a) of the definition of “remote area”):

Insert:

Subsection 5q (1):

Add at the end:

“ ‘tax file number’ has the same meaning as in Part Va of the Income Tax Assessment Act 1936.”.

Section 5s:

Add at the end:

“(2) Subsection (1) does not apply to a temporary incapacity allowance (under section 107) or a loss of earnings allowance (under section 108).”.

Sub-subparagraphs 7a (1) (a) (iii) (b) and (iv) (b):

Omit “while the person”, substitute “as a person who”.

Subparagraph 7a (1) (a) (iii):

Omit “or 8”, substitute “, 8, 9 or 10”.

SCHEDULE 2—continued

Subparagraph 7a (1) (a) (v):

Omit the subparagraph.

Paragraph 7a (1) (b):

After “Strategic Reserve)” insert “in the area described in item 3 of Schedule 2 (in column 1) during the period specified in column 2 of that Schedule opposite to that description”.

Section 42 (Service Pension Rate Calculator Where There Are Dependent Children—after point 42-C3):

Insert:

Failure to reasonably pursue maintenance claim

“42-C3A. If:

there is no dependent child add-on for that dependent child.”.

Section 42 (Service Pension Rate Calculator Where There Are Dependent Children—point 42-E10—after paragraph (d)):

Insert:

“(da) under an Aboriginal study assistance scheme; or”.

Section 42 (Service Pension Rate Calculator Where There Are Dependent Children—point 42-E10):

Add at the end:

“Note: for ‘Aboriginal study assistance scheme’ see section 5f.”.

Section 43 (Service Pension Rate Calculator for Blinded Veterans— after point 43-C3):

Insert:

Failure to reasonably pursue maintenance claim

“43-C3A. If:

SCHEDULE 2—continued

point 43-C3 does not apply to the person.”.

Section 44 (Service Pension Rate Calculator—point 44-D8—after paragraph (d)):

Insert:

“(da) under an Aboriginal study assistance scheme; or”.

Section 44 (Service Pension Rate Calculator—point 44-D8):

Add at the end:

“Note: for ‘Aboriginal study assistance scheme’ see section 5f.”.

Section 46 (Table—items 1, 2, 3 and 4):

After “made” insert “or acquired”.

Paragraph 46a (1) (a):

Omit the paragraph, substitute:

“(a) is not income in the form of periodic payments; and”.

Paragraph 46a (1) (d):

After “made” insert “, or acquired, by the person”.

Subsection 46a (2):

Omit “becoming entitled to receive an amount includes a reference to the person becoming entitled to receive”, substitute “receiving an amount includes a reference to a person receiving”.

Paragraph 46b (1) (a):

After “made” insert “or acquired”.

Sub-subparagraph 46b (1) (b) (ii) (a):

After “made” insert “, or acquired, by the person”.

Paragraph 46b (1) (c):

Omit “becomes entitled to receive”, substitute “realises the investment and receives”.

Subsection 46b (2):

Omit “becoming entitled to receive an amount includes a reference to the person becoming entitled to receive”, substitute “receiving an amount includes a reference to a person receiving”.

After section 46b:

Insert:

SCHEDULE 2—continued

Realisation of investment

“46ba. For the purposes of section 46b, a person realises an investment if, and only if:

(a)     all or part of the amount of the investment is withdrawn; or

(c)     the investment matures; or

(d)     the investment is assigned by the person to another person; or

Receiving by way of a return

“46bb. For the purposes of section 46b:

Sub-subparagraph 46c (b) (ii) (a):

After “made” insert “, or acquired, by the person”.

Section 46c:

After “made” (wherever occurring) insert “or acquired”.

Section 46d:

(a)       After “makes” insert “or acquires”.

(b)      After “made” insert “or acquired”.

Subsection 46g (2):

(a)     After “making” insert “or acquiring”.

(b)     After “make” insert “or acquire”.

Section 46j:

(a)       After “made” insert “or acquired”.

(b)      Add at the end:

“(2) For the purposes of subsection (1), a person realises an investment if, any only if:

SCHEDULE 2—continued

(a)     all or part of the amount invested is withdrawn; or

(c)     the investment matures; or

(d)    the investment is assigned by the person to another person; or

“(3) For the purposes of subsection (1):

Paragraph 46k (1) (a):

After “made” insert “or acquired”.

Subsection 46k (1):

After “made” (last occurring) insert “, or acquired, by the person”.

Paragraph 46k (2) (b):

After “made” insert “, or acquired, by the person”.

Section 46l:

After “makes” insert “or acquires”.

Paragraph 46l (a):

After “made” insert “or acquired, by the person”.

Subsection 46p (1):

After “made” (second occurring) insert “or acquired”.

Subsection 46q (2):

(a)      After “making” insert “or acquiring”.

(b)      After “make” insert “or acquire”.

After Division 8 of Part III:

Insert:

SCHEDULE 2—continued

Application of this Division and Division 8

“46v. If this Division applies to a person’s available money or deposit money, Division 8 does not apply to the return on that money.

Basic concept—income money and interest received

“46w. (1) For the purposes of this Division, a person has income money at a particular time if the sum of:

(a)     the person’s available money; and

(b)     the person’s deposit money;

at that time is greater than $2,000.

“(2) This is how to work out which money forms part of the person’s income money:

“(3) For the purposes of subsection (2):

“(4) For the purposes of this Division, if:

(a) interest is paid on deposit money; and

SCHEDULE 2—continued

interest on the deposit money is taken to be received by the depositer on each anniversary of the making of the deposit.

Income money that does not attract interest

“46x. (1) If:

(a)     money is income money of a person; and

(b)    interest is not paid on that money;

the person is taken to receive interest on that money at the assumed rate.

Note: for ‘assumed rate of interest’ see section 46za.

“(2) Subsection (1) has effect subject to section 46z.

Income money that attracts low interest

“46y. (1) If:

(a)     money is income money of a person; and

the person is taken to receive interest on that money at the assumed rate.

Note: for ‘assumed rate of interest’ see section 46ZA.

“(2) Subsection (1) has effect subject to section 46z.

Certain income money to be disregarded

“46z. (1) The Minister may determine that this Division does not apply to:

(a)     specified income money of a person; or

(b)    specified income money of a class of persons.

“(2) A determination under subsection (1) is to be made by notice in writing.

“(3) If:

(a)     a person has income money; and

the income money is to be disregarded for the purposes of applying this Division to the person.

Assumed rate of interest on income money

“46za. The assumed rate of interest is:

(a) 10% per year; or

SCHEDULE 2—continued

“Division 8b—Interest attributed to money on loan

Application of this Division

“46zb. (1) This Division applies to loans by a person entered into, or acquired, by the person after 21 August 1990.

“(2) If this Division applies to a person’s loan, Division 8 does not apply to the return on the loan.

Basic concepts—loan and interest

“46zc. For the purposes of this Division:

(a) there is a loan by a person if, but not only if, the person has:

(i) debentures; or

(ii) bonds; or

(iii) other securities; and

(b) there is no loan by a person:

(ii) because of any entry contribution of the person; and

Loans that do not attract interest

“46zd. (1) If:

(a)     there is a loan by a person; and

(b)     the person is not paid interest on the loan;

the person is taken to receive on each anniversary of the making of the loan interest on the loan at the assumed loan rate.

Note: for ‘assumed loan rate’ see section 46zg.

“(2) Subsection (1) has effect subject to section 46zf.

Loans that attract a low rate of interest

“46ze. (1) If:

(a) there is a loan by a person; and

SCHEDULE 2—continued

(b)    the person is paid interest on the loan; and

(c)     the rate of interest is less than the assumed loan rate;

the person is taken to receive interest on the loan at the assumed loan rate.

Note: for ‘assumed loan rate’ see section 46zg.

“(2) Subsection (1) has effect subject to section 46zf.

Certain loans to be disregarded

“46zf. (1) The Minister may determine that this Division does not apply to:

(a)     a specified loan; or

(b)    a specified class of loans.

“(2) A determination under subsection (1) is to be made by notice in writing.

“(3) If:

(a)     there is a loan by a person; and

(b)    a determination under subsection (1) applies to the loan;

the loan is to be disregarded for the purposes of applying this Division to the person.

Assumed loan rate of interest

“46zg. The assumed loan rate is:

(a)     10% per year; or

“Division 8C—Income attributed to deprived assets

Application of this Division

“46zh. This Division applies to dispositions of assets that occur after 21 August 1990.

Income attributed to deprived assets

“46zj. If:

(a)     a person disposes of an asset; and

the following provisions have effect:

(c)     the person is taken to obtain income from the asset; and

(d)     the income is taken to be:

SCHEDULE 2—continued

whichever is the higher.

Note: for ‘assumed property rate’ see section 46zk.

Assumed property rate

“46zk. The assumed property rate is:

(a)     10% per year; or

Subsection 48 (2):

Omit the subsection, substitute:

“(2) For the purposes of subsection (1), the value of any granny flat interest of the person is taken not to be consideration received by the person.

Note: for ‘granny flat interest’ see subsection 5l (8a).”.

Section 49a:

Repeal the section, substitute:

Earnings credit account

“49a. (1) If:

(b)     either:

the person has an individual earnings credit account.

“(2) If:

the person and the partner have a joint earnings credit account.

“(3) If at a particular time:

(a) subsection (1) ceases to apply to 2 people; and

SCHEDULE 2—continued

the balance of the joint earnings credit account at that time is the sum of the balances of their individual accounts immediately before that time.

“(4) If at a particular time:

(a)     subsection (2) ceases to apply to 2 people; and

the balance of the individual earnings credit account or accounts at that time is 50% of the balance of their joint earnings credit account immediately before that time.”.

Section 49b (Earnings Credit Account Balance Calculator—point 49b-A1):

Omit:

Account balance calculation

“49b-A1. This is how to work out the balance of the person’s earnings credit account:”;

substitute:

Individual account balance calculation

“49b-A1. If the person has an individual earnings credit account, this is how to work out the balance of the account:”.

Section 49b (Earnings Credit Account Balance Calculator—points 49b-A2, 49b-A3 and 49b-A4):

Omit the points, substitute:

Individual account balance not to exceed $1,000

“49b-A2. The balance of an individual account is not to exceed $1,000.

Joint account balance calculation

“49b-A3. If the person has a joint earnings credit account with the person’s partner, this is how to work out the balance of the account:

SCHEDULE 2—continued

Joint account balance not to exceed $2,000

“49b-A4. The balance of a joint account is not to exceed $2,000.

Balance not to be in debit

“49b-A5. The balance of an earnings credit account is not to fall below nil.

EC accounting periods

“49b-A6. The earnings credit accounting periods are:

(b)     the succeeding fortnights.”.

Section 49b (Earnings Credit Account Balance Calculator—point 49b-B1):

Omit “is nil.”, substitute:

“is:

(c)     if the person has an individual earnings credit account—nil; or

Section 49b (Earnings Credit Account Balance Calculator—point 49b-B2):

Omit “is the amount of the person’s earnings credit immediately before 1 July 1991 under section 49b.”, substitute:

“is:

SCHEDULE 2—continued

Section 49b (Earnings Credit Account Balance Calculator—point 49b-C1):

Omit “The person”, substitute “A person”.

Section 49b (Earnings Credit Account Balance Calculator—point 49b-D1):

Omit “The person”, substitute “A person”.

Paragraphs 52 (1) (a) and (b):

Omit the paragraphs, substitute:

(i) is a right or interest that gives the person reasonable security of tenure in the home; and

(ii) is not a granny flat interest in the home;

(ii) is not a granny flat interest in the home;”.

Paragraph 52 (1) (fa):

Omit the paragraph, substitute:

“(fa) if:

SCHEDULE 2—continued

the value of the granny flat interest;”.

Subsection 52e (2):

Omit the subsection, substitute:

“(2) For the purposes of subsection (1), the value of any granny flat interest of the person is taken not to be consideration received by the person.

Note: for ‘granny flat interest’ see subsection 5l (8a).”.

Subsection 52g (1):

Omit “1 June 1984”, substitute “1 March 1986”.

Subsection 52g (1):

Insert “for the period of 5 years that starts on the day on which the disposition takes place” after “assets” (fourth occurring).

Paragraph 52g (1) (b):

Omit “$2,000”, substitute “$10,000”.

Paragraph 52g (1) (c):

Omit “$2,000”, substitute “$10,000”.

Subsection 52g (2):

Omit the subsection, substitute:

“(2) If:

(a)     a person disposes of an asset before 1 March 1991 ; and

the amount that is to be included in that value under that subsection is to be reduced, on each anniversary of the day on which the disposition took place, by an amount equal to 10% of the relevant amount.

Note 1: for ‘disposes of an asset’ see section 52e.

Note 2: for ‘amount of disposition’ see section 52f.”.

Subsection 52h (1):

Omit “1 June 1984”, substitute “1 March 1986”.

Paragraph 52h (1) (b):

Omit “$4,000”, substitute “$10,000”.

Paragraph 52h (1) (c):

Insert “for the period of 5 years that starts on the day on which the disposition takes effect” after “assets” (first occurring).

SCHEDULE 2—continued

Subparagraph 52h (1) (c) (i):

Omit “$4,000”, substitute “$10,000”.

Paragraph 52h (1) (d):

Insert “for the period of 5 years that starts on the day on which the disposition takes place” after “assets” (first occurring).

Subparagraph 52h (1) (d) (i):

Omit “$4,000”, substitute “$10,000”.

Subsection 52h (1) (Notes 1 and 2):

Omit the Notes.

Subsection 52h (2):

Omit the subsection, substitute:

“(2) If:

(a)     a person disposes of an asset before 1 March 1991 ; and

the amount that is to be included in that value under that subsection is to be reduced, on each anniversary of the day on which the disposition took place, by an amount equal to 10% of the relevant amount.

Note 1: for ‘disposes of an asset’ see section 52E.

Note 2: for ‘amount of disposition’ see section 52F.”.

Heading to Subdivision C of Division 14 of Part III:

Add at the end “and granny flats”.

Section 52k:

Repeal the section, substitute:

Retirement village and granny flat residents

“52k. For the purposes of this Subdivision:

Application of Subdivision to granny flat residents

“52ka. This Subdivision applies to a granny flat resident only if the resident acquired or retained the person’s granny flat interest in the person’s principal home on or after 22 August 1990.”.

SCHEDULE 2—continued

Section 52l:

Insert “or granny flat” after “retirement village”.

Subsection 52m (1):

Insert “or granny flat” after “retirement village” (first occurring).

Paragraph 52m (1) (a):

Insert “or granny flat” after “retirement village”.

Paragraph 52m (1) (b):

Insert “or granny flat” after “retirement village”.

Paragraph 52m (1) (c):

Insert “or granny flat” after “retirement village”.

Paragraph 52m (1) (d):

Insert “or granny flat” after “retirement village” (wherever occurring).

Paragraph 52m (1) (e):

Insert “or granny flat” after “retirement village” (wherever occurring).

Paragraph 52m (1) (f):

Insert “or granny flat” after “retirement village” (wherever occurring).

After subsection 52m (1):

Insert:

“(1a) For the purposes of subsection (1):

(b)    the value of a person’s granny flat interest is:

After subsection 52n (2):

Insert:

SCHEDULE 2—continued

Granny flat residence

“(2a) A granny flat resident’s extra allowable amount is:

Subsection 52q (1):

Insert “or granny flat” after “retirement village”.

Paragraph 52q (2) (a):

Insert “or granny flat resident” after “retirement village”.

Paragraph 52q (3) (a):

Insert “or granny flat” after “retirement village”.

Subsection 52r (1):

Insert “or granny flat” after “retirement village”.

Paragraph 52r (2) (a):

Insert “or granny flat” after “retirement village”.

Paragraph 52r (3) (a):

Insert “or granny flat” after “retirement village”.

Subsection 52s (1):

Insert “or granny flat” after “retirement village” (first occurring).

Paragraph 52s (1) (b):

Insert “or granny flat” after “retirement village”.

Paragraph 52s (2) (a):

Insert “or granny flat” after “retirement village”.

SCHEDULE 2—continued

Paragraph 52s (3) (a):

Insert “or granny flat” after “retirement village”.

Paragraph 52s (5) (a):

Insert “or granny flat” after “retirement village”.

Subsection 52t (1):

Insert “or granny flat” after “retirement village” (first occurring).

Paragraph 52t (1) (b):

Insert “or granny flat” after “retirement village”.

Paragraph 52t (2) (a):

Insert “or granny flat” after “retirement village”.

Paragraph 52t (3) (a):

Insert “or granny flat” after “retirement village”.

Subsection 52u (1):

Insert “or granny flat” after “retirement village” (first occurring).

Paragraph 52u (1) (b):

Insert “or granny flat” after “retirement village”.

Paragraph 52u (2) (a):

Insert “or granny flat” after “retirement village”.

Paragraph 52u (4) (a):

Insert “or granny flat” after “retirement village”.

Subsection 52v (1):

Insert “or granny flat” after “retirement village” (first occurring).

Paragraph 52v (1) (b):

Insert “or granny flat” after “retirement village”.

Paragraph 52v (2) (a):

Insert “or granny flat” after “retirement village”.

Paragraph 52v (2) (d):

Insert “or granny flat” after “retirement village”.

Paragraph 52v (2) (e):

Insert “or granny flat” after “retirement village”.

SCHEDULE 2—continued

Paragraph 52v (3) (a):

Insert “or granny flat” after “retirement village”.

Paragraph 52v (3) (e):

Insert “or granny flat” after “retirement village”.

Subsection 52v (1):

Insert “or granny flat” after “retirement village” (first occurring).

Paragraph 52w (1) (b):

Insert “or granny flat” after “retirement village”.

Subsection 52w (2):

Insert “or granny flat” after “retirement village” (first occurring).

Subparagraph 52w (2) (c) (ii):

Insert “or granny flat” after “retirement village”.

Subsection 52x (1):

Insert “or granny flat” after “retirement village” (first occurring).

Paragraph 52x (1) (b):

Insert “or granny flat” after “retirement village”.

Paragraph 52x (2) (a):

Insert “or granny flat” after “retirement village”.

Paragraph 52x (3) (a):

Insert “or granny flat” after “retirement village”.

Section 53b (Fringe Benefits Income Test Calculator—point 53b-9— after paragraph (d)):

Insert:

“(da) under an Aboriginal study assistance scheme; or”.

Section 53b (Fringe Benefits Income Test Calculator—point 53b-9):

Add at the end:

“Note: for ‘Aboriginal study assistance scheme’ see section 5f.”.

Paragraph 54 (4) (c):

After “period within which” insert “, and the manner in which”.

Paragraph 54a (3) (c):

After “period within which” insert “, and the manner in which”.

SCHEDULE 3 Section 20

CONSEQUENTIAL AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986

Paragraph 10 (1) (a):

Omit “wife”, substitute “partner”.

Subparagraph 10 (2) (a) (i):

Omit “husband”, substitute “partner”.

Subparagraphs 11 (1) (a) (i), (ii) and (iii):

Omit the subparagraphs, substitute:

“(i) the partner of the veteran;

(ii) a non-illness separated wife of the veteran;

(iii) a widow of the veteran;

(iv) a child of the veteran;”.

After subsection 11 (1):

Insert:

Subsection 13 (11):

Omit all words from and including “veteran described in paragraph (a)”, substitute “person (including a deceased person) who is, because of section 7, taken to have rendered eligible war service”.

Paragraph 30 (2) (a):

Omit “if the spouse of the deceased veteran is also dead”, substitute “if there is no widow or widower of the veteran”.

Paragraph 30 (2) (b):

Omit “if the spouse of the deceased veteran is alive”, substitute “if there is a widow or widower of the veteran”.

Subsection 30 (4):

Omit the subsection.

Paragraph 74 (12) (a):

Omit “spouse”, substitute “widow”.

Paragraph 80 (2) (a):

Omit the paragraph.

SCHEDULE 3—continued

Paragraph 80 (2) (c):

Omit “sub-section 5 (1)”, substitute “paragraph (a) of the definition of ‘veteran’ in subsection 5c (1)”.

Paragraph 81 (2) (b):

Omit “, not being a service pension, a wife’s service pension or a carer’s service pension”, substitute “(other than a service pension)”.

Sections 82 and 83:

Repeal the sections.

Paragraph 85 (4) (aa):

(a)       Omit “36 (a) (i)”, substitute “7a (1) (a) (i)”.

(b)      Omit “35 (1)”, substitute “5b (1)”.

Subsection 85 (5):

Omit the subsection, substitute:

“(5) A veteran referred to in section 53d is eligible to be provided with treatment under this Part for any injury suffered, or disease contracted, by the veteran, whether before or after the commencement of this Act.

Subsections 85 (5a) and (6):

Omit the subsections.

Paragraph 85 (7) (b):

Omit “or a wife’s service pension”, substitute “(other than a carer service pension)”.

Paragraph 85 (7) (d):

Omit “or wife’s service pension”.

Subsection 85 (8):

Omit “, or wife’s service pension,”.

Paragraph 86 (5) (a):

Omit “(6),”.

Section 95:

Repeal the section.

Subsection 98 (4a):

Omit “carer’s service pension under section 41”, substitute “carer service pension under Division 6 of Part III”.

SCHEDULE 3—continued

Paragraph 98 (4a) (b):

Omit the paragraph, substitute:

“(b) would be payable, but for action taken:

in relation to a carer service pension;”.

Subsection 98a (1):

Omit the subsection, substitute:

“(1) This section applies where a veteran dies if the veteran was, immediately before his or her death:

(a)     a member of a couple; and

(b)    receiving a disability pension.”.

Subsection 98a (6) (definitions of “married veteran”, “widow” and “widower”):

Omit the definitions.

Paragraph 113 (1) (c):

Omit “spouse”, substitute “partner or non-illness separated wife”.

Subsection 115 (5):

(c)     Omit “60”, substitute “57f”.

Section 118a (subparagraphs (a) (i) and (ii) of the definition of “eligible pensioner”):

Omit the subparagraphs, substitute:

“(i) who is receiving a service pension; and

(ii) whose rate of service pension is not reduced because of:

SCHEDULE 3—continued

Section 118a (definition of “special wife service pensioner”):

Omit the definition, substitute:

“ ‘special wife service pensioner’ means a woman who either:

(a) is:

(b) is:

Subsection 118d (2):

Omit the subsection, substitute:

“(2) The rate of pharmaceutical supplement for a person:

(a)     who is partnered (partner receiving pension or benefit); and

(b)     who is not a special wife service pensioner; is $2.50 per fortnight.

Note: for ‘partnered (partner receiving pension or benefit)’ see paragraph 5e (5) (c). ‘.

Subsection 118f (2):

Omit the subsection, substitute:

“(2) The amount of advance pharmaceutical supplement for a person:

(a)     who is partnered (partner receiving pension or benefit); and

(b)     who is not a special wife service pensioner;

is $25 per fortnight.

Note: for ‘partnered (partner receiving pension or benefit)’ see paragraph 5e (5) (c).”.

Section 118g:

Omit “spouse” (wherever occurring), substitute “partner or non-illness separated wife”.

SCHEDULE 3—continued

Subsection 118g (4):

Omit the subsection, substitute:

“(4) The amount of a further advance pharmaceutical supplement for a person:

(a)     who is partnered (partner receiving pension or benefit); and

(b)    who is not a special wife service pensioner;

is $17.50 per fortnight.

Note: for ‘partnered (partner receiving pension or benefit)’ see paragraph 5e (5) (c).”.

Section 118h:

Omit “spouse” (wherever occurring), substitute “partner or non-illness separated wife”.

Subsection 118h (5):

Omit “Where paragraph 47 (1) (b) applies to a person (other than a special wife service pensioner),”, substitute “Where a person:

(a)     is partnered (partner receiving pension or benefit); and

(b)     is not a special wife service pensioner;”.

Subparagraph 118j (3) (b) (ii):

Omit “to whom paragraph 47 (1) (b) applies”, substitute “who is partnered (partner receiving pension or benefit)”.

Paragraph 118ja (a):

Omit the paragraph, substitute:

“(a) a service pension; or”.

Subsection 118jb (2):

Omit the subsection, substitute:

“(2) The rate of pharmaceutical allowance for a person:

(a)     who is partnered (partner receiving pension or benefit); and

(b)     who is not a special wife service pensioner; is $2.50 per fortnight.

Note: for ‘partnered (partner receiving pension or benefit)’ see paragraph 5e (5) (c).”.

Subparagraph 118k (2) (b) (ii):

Omit “to whom paragraph 47 (1) (b) applies”, substitute “who is partnered (partner receiving pension or benefit)”.

Subsection 118m (1):

Omit all words from and including “ ‘X’ means”, substitute: “ ‘X’ means:

(a) except where paragraph (b) applies—5; or

SCHEDULE 3—continued

Subsections 118n (1) and (2):

Omit “to whom paragraph 47 (1) (b) applies”, substitute “who is partnered (partner receiving pension or benefit)”.

Paragraph 119 (1) (b):

Omit the paragraph, substitute the following:

“(b) a review, under Division 19 of Part III, of a decision of the

Commission with respect to a service pension or qualifying

service;”.

Paragraph 119 (1) (e):

Omit “, a wife’s service pension or a carer’s service pension”.

Subsection 119 (2) (paragraph (a) of the definition of “application”):

Omit “, a wife’s service pension or a carer’s service pension”.

Subsection 119 (2) (paragraph (b) of the definition of “claim”):

Omit the paragraph, substitute:

“(b) a claim for service pension or other benefit under Part III; or

(c) a claim for a qualifying service determination under Part III.”.

Subsections 121 (1a):

Omit “, 21 (2) or 46 (3)”, substitute “or 21 (2)”.

Subsections 121 (2), (3) and (4):

Omit the subsections.

Subsection 123 (1) (paragraph (c) of the definition of “child”):

Omit “spouse”, substitute “partner or non-illness separated wife”.

Subsection 123 (1) (definition of “de facto spouse”):

Omit the definition.

Subsection 123 (1) (definition of “spouse”):

Omit the definition.

Subsection 123 (2):

Omit “5 (1)”, substitute “5f (1)”.

Paragraph 123d (1) (a):

(a)     Omit “spouse”, substitute “widow or widower”.

(b)     Omit “spouses”, substitute “widows or widowers”.

SCHEDULE 3—continued

Paragraphs 123D (1) (b), (c) and (d):

Omit “spouse”, substitute “widow or widower”.

Subsections 124 (1) and (2):

Omit “, III”.

Paragraphs 124 (4) (a) and (5) (a):

Omit “, III”.

Paragraph 124 (6) (a):

Omit the paragraph.

Subsection 125 (2):

Omit the subsection.

Subsection 126 (4):

(a)     Omit “or 43”, substitute “, 35b, 36d, 37d, 38d or 39d”.

(b)    Omit “section 59”, substitute “Division 19 of Part III, section”.

Subsection 126a (2):

Omit “purposes of paragraph 43 (1) (a)”, substitute “purpose under paragraph 35d (b), 36f (b), 37f (b), 38f (b) or 39f (b) (as the case requires)”.

Subsections 128a (2) and (3):

Omit “person’s spouse’s tax file number”, substitute “tax file number of the person’s partner or non-illness separated wife”.

Subsection 128B (1):

Omit “spouse”, substitute “partner or non-illness separated wife”.

Subsections 132 (3) and (4):

Omit “or 60”, substitute “or 57f”.

Subsection 132 (12):

(a)     Omit “or 43”, substitute “, 35b, 36d, 37d, 38d or 39d”.

(b)     Omit “section 59”, substitute “Division 19 of Part III, section”.

Subsection 174 (2):

Omit the subsection, substitute:

“(2) In this Part:

‘veteran’ includes:

(a)     a Commonwealth veteran; and

(b)     an allied veteran; and

SCHEDULE 3—continued

(c)     an Australian mariner; and

(d)     an allied mariner; and

Subsection 175 (2):

Omit the subsection, substitute:

“(2) Where the Commission, under section 57b, affirms a decision of the Commission referred to in section 57 or sets it aside and substitutes another decision for it, a person may apply to the Administrative Appeals Tribunal for a review of the decision so affirmed or substituted.

“(2a) A person’s right to apply to the Administrative Appeals Tribunal under subsection (2) is subject to section 29 of the Administrative Appeals Tribunal Act 1975.

Paragraph 176 (3) (a):

Omit “62”, substitute “57e”.

Subsection 176 (8):

Omit all words from and including “under sub-section 58 (1)”, substitute:

“(a) to cancel or suspend a service pension under section 56e; or

(b)     to reduce the rate of a service pension under section 56d; or

(c)     to increase the rate of a service pension under section 56c; and the decision was one that was:

(d)     affirmed by the Commission under section 57b; or

the Administrative Appeals Tribunal need not make another decision in substitution for the decision set aside by it.”.

Subsection 177 (5):

Omit “59” (3 times occurring), substitute “57b”.

Subsection 189 (5) (definition of “pension”):

Omit “, a wife’s service pension, a carer’s service pension,”.

Subsection 198 (1) (definition of “relevant amount”):

Omit the definition.

SCHEDULE 3—continued

Subsection 198 (1) (paragraphs (f), (g) and (h) of the definition of “relevant rate”):

Omit the paragraphs.

Subsection 198 (1) (definition of “relevant year”):

Omit the definition.

Subsection 198 (1) (definition of “rent assistance amount”):

Omit the definition.

Paragraphs 198 (4) (aa) and (c):

Omit the paragraphs.

Subsection 198 (4a):

Omit the subsection.

Subsection 198 (5):

Omit “or (4a)”.

Subsections 198 (5b), (5c), (5e) and (5f):

Omit the subsections.

Subsections 198 (6), (7), (8) and (9):

Omit the subsections.

Subsection 198 (10):

(a)     Omit “relevant year”.

(b)     Omit “or year” (wherever occurring).

Sections 198b and 198c:

Repeal the sections.

Subsection 201 (5) (definition of “veteran”):

Omit the definition, substitute: “ ‘veteran’ includes:

(a)     a Commonwealth veteran; and

(b)     an allied veteran; and

(c)     an Australian mariner; and

(d)     an allied mariner; and

SCHEDULE 3—continued

Section 207:

Repeal the section.

SCHEDULE 4 Section 21

CONSEQUENTIAL AMENDMENTS OF OTHER ACTS

Defence Service Homes Act 1918

Subsection 4 (1) (paragraphs (ga) and (gb) of the definition of “Australian Soldier”):

Omit “5 (12)”, substitute “5b (2)”.

Disability Services Act 1986

Paragraph 22 (4) (b):

Omit “, a wife’s service pension or a carer’s service pension”.

Health Insurance Act 1973

Paragraph 3 (10) (b):

Omit “, a wife’s service pension or a carer’s service pension”.

National Health Act 1953

Subsection 4 (1) (paragraph (b) of the definition of “pensioner”):

Omit the paragraph, substitute:

“(b) a person:

Paragraph 4 (3) (b):

Omit “, a wife’s service pension or a carer’s service pension”.

Paragraph 84 (1) (paragraph (b) of the definition of “concessional beneficiary”):

Omit “, a wife’s service pension or a carer’s service pension”.

Public Service Act 1922

Subsection 7 (1) (paragraphs (e) and (f) of the definition of “Returned Soldier”):

Omit “5 (12)”, substitute “5b (2)”.

SCHEDULE 4—continued

Seamen’s War Pensions and Allowances Act 1940

Subsection 21 (11):

Omit “carer’s service pension under section 41”, substitute “carer service pension under Part III”.

Paragraph 21(11) (b):

Omit the paragraph, substitute:

“(b) would be payable, but for action taken:

(i) under section 56e (cancellation or suspension) of that Act because the person has contravened a provision of that Act (other than subsection 54(6) or 128 (4)); or (ii) under subsection 205 (2) (deductions to recover overpayments) of that Act;

in relation to a carer service pension;”.

Subsection 24b (6) (definition of “married Australian mariner”):

Omit “married veteran”, substitute “veteran who is a member of a couple”.

Subsection 24b (6) (definitions of “widow” and “widower”):

Omit “Part III”, substitute “section 5e”.

Paragraph 32aa (1) (a):

Omit “person’s spouse’s tax file number”, substitute “tax file number of the person’s partner or non-illness separated wife”.

Subsection 32ab (1):

Omit “spouse”, substitute “partner or non-illness separated wife”.

Social Security Act 1991

Subparagraph 8 (8) (y) (viii):

Omit “Division 5a of.

Subsection 23 (1) (paragraph (f) of the definition of “dependent child add-on”):

Omit the paragraph, substitute:

Subsection 23 (1) (paragraph (f) of the definition of “guardian allowance”):

Omit the paragraph, substitute:

SCHEDULE 4—continued

Subsection 23 (1) (paragraph (b) of the definition of “service pension”):

Omit the paragraph, substitute:

Section 1064 (Pension Rate Calculator A—point 1064-C2—Note 3):

Omit “invalid”, Substitute “invalidity”.

Section 1064 (Pension Rate Calculator A—point 1064-C5):

Omit “paragraph 47 (3) (b) of the VEA”, substitute:

“the following provisions of the VEA:

Section 1064 (Pension Rate Calculator A—point 1064-J2—

subparagraph (b) (ii)):

Omit “paragraph 47 (3) (a), (b) or (c) of the VEA”, substitute:

“the following provisions of the VEA:

Section 1065 (Pension Rate Calculator B—point 1065-C1—Note 3):

Omit “invalid”, Substitute “invalidity”.

Section 1065 (Pension Rate Calculator B—point 1065-C5):

Omit “paragraph 47 (3) (b) of the Veterans’ Entitlements Act”,

substitute:

“the following provisions of the VEA:

Section 1065 (Pension Rate Calculator B—point 1065-F2—

subparagraph (b) (ii):

Omit “paragraph 47 (3) (a), (b) or (c) of the VEA”, substitute:

“the following provisions of the VEA:

SCHEDULE 4—continued

Section 1067 (Benefit Rate Calculator A—point 1067-K4—paragraph (b)):

Omit “section 57 of the VEA”, substitute:

“the following provisions of the VEA:

Section 1068 (Benefit Rate Calculator B—point 1068-J4—paragraph (b)):

Omit “section 57 of the VEA”, substitute:

“the following provisions of the VEA:

Section 1115 (Earnings Credit Account Balance Calculator—point 1115-B3—paragraph (b)):

Omit “section 49b”, substitute “Division 11 of Part III”.

Subsection 1192 (1):

Omit “(and any other Act that refers to this Act)”.

Subsections 1199 (1) and (3):

Omit “(and any other Act that refers to this Act)”.

Subsections 1200 (1) and (3):

Omit “(and any other Act that refers to this Act)”.

Subsections 1201 (1) and (3):

Omit “(and any other Act that refers to this Act)”.

SCHEDULE 4—continued

Subsection 1234 (3):

Omit “subsection 42 (1)”, substitute “section 36c, 37c, 38c or 39c”.

Section 1235:

Omit “subsection 42 (1)”, substitute “section 36c, 37c, 38c or 39c”.

Social Security and Veterans’ Affairs Legislation Amendment Act 1988

Section 30:

Repeal the section, substitute:

Rent assistance—boarders and lodgers (changes introduced on 12 June 1989)

“30. (1) If:

(a) immediately before 12 June 1989:

(b) at all times since 12 June 1989, the person:

(i) has been receiving a service pension; and

(ii) has been a boarder;

the amount by way of rent assistance included in the person’s service pension rate is not to fall below the floor amount.

“(2) If:

(b)     the period starts before 12 June 1989; and

(c)     the period continued until at least 11 June 1989;

the person is to be taken, for the purposes of this section, to have been receiving rent assistance under that Act immediately before 12 June 1989.

“(3) If:

SCHEDULE 4—continued

(i) has been receiving a service pension; and

(ii) has been a boarder;

the amount of rent assistance included in the person’s service pension rate is not to fall below the person’s floor amount.

“(4) For the purposes of subsections (1) and (3), the person’s floor amount is the amount by way of rent assistance that would be included in the person’s service pension rate if:

“(5) Subsection (1) or (3) ceases to apply to a person’s service pension rate when the amount of rent assistance that the person would be entitled to because of that subsection is less than (or equal to) the amount of rent assistance that the person is entitled to under the Veterans’ Entitlements Act 1986.

“(6) Subsection (1) or (3) will not apply to a person again once it has ceased to apply to the person.

“(7) References in this section to payments for board and lodging include references to payments for accommodation and other services that are provided to a person who is residing in a nursing home.

“(8) In this section:

‘boarder’ means a person who ordinarily lives on premises where the person is provided with board and lodging.

Section 31:

Repeal the section, substitute:

SCHEDULE 4—continued

Rent assistance—retirement village residents (changes introduced on 12 June 1989)

“31. (1) If:

(a) immediately before 3 November 1988:

(i) a person was receiving a service pension; and

(b) at all times since 3 November 1988:

(i) the person has been entitled to a service pension; and

the person is to be taken not to be an ineligible property owner for the purposes of the Veterans’ Entitlements Act 1986.

“(2) If:

(a) immediately after 12 June 1989:

(i) the person has continued to receive a service pension;

and

the person is to be taken not to be an ineligible property owner for the purposes of the Veterans’ Entitlements Act 1986.

“(3) If subsection (1) or (2) ceases to apply to the person, that subsection does not apply to the person again.

SCHEDULE 4—continued

Subsection 4 (3):

Omit “paragraph 47 (3) (e)” (last occurring), substitute:

“point 42-C7 of the Rate Calculator at the end of section 42 or by item 4 of Table C-2 of the Rate Calculator at the end of section 43 of the Veterans’ Entitlements Act 1986”.

Subsection 4 (4):

Omit all words from and including “then”, substitute:

“then:

(i) the child stops being a dependent child; or

(as the case requires) until:

(iii) the child stops being a dependent child; or (iv) the person is no longer entitled to receive any kind of pension under Part III of that Act.”.

Section 21:

Repeal the section, substitute:

Maintenance income test (changes introduced on 17 June 1988)

“21. (1) If:

(a) in the fortnight that ended on 16 June 1988:

(ii) the person had maintenance income; and

(b) at all times since 17 June 1988, the person has been receiving

SCHEDULE 4—continued

a service pension or a social security pension or social security benefit; and

the person’s service pension amount in that fortnight is to be such that the person’s total income for the fortnight is equal to the person’s total income for the fortnight that ended on 16 June 1988.

“(2) Subsection (1):

(b)     has effect subject to subclause (3); and

(c)     does not apply if:

“(3) If subsection (1) ceases to apply to the person, this section will not apply to the person at any time after that cessation.

“(4) The person’s service pension amount in the fortnight is not to exceed:

“(5) If:

SCHEDULE 4—continued

the person’s total income for the fortnight that ended on 16 June 1988 is to be taken, for the purposes of subsection (1) after the change in circumstances, to have been reduced by the amount of the extra payment.

Note: for ‘extra payment’ see subclause (7) below.

“(6) If the amount of:

or

is less than the amount of the person’s fortnightly rate of benefit, allowance or pension, the amount of the benefit, allowance or pension received by the person in that fortnight is to be taken, for the purposes of this section, to be the amount of the person’s fortnightly rate of the benefit, allowance or pension.

“(7) In this clause:

‘extra payment’ means:

(a) an additional payment for a partner made under:

(i) subsection 118 (2) of the Social Security Act 1947; or

(b) additional amounts for dependent children under:

(ii) the Social Security Act 1991; or

(iii) the Veterans’ Entitlements Act;

‘indexation increase’, in relation to a service pension or a social security pension or social security benefit, means an increase in the rate at which the pension or benefit is payable that has occurred because of an indexation provision;

SCHEDULE 4—continued

indexation provision’ means a provision of the Social Security Act 1947, the Social Security Act 1991 or the Veterans’ Entitlements Act that provides for the rate of a pension or benefit to be increased periodically by reference to the quarterly All Groups Consumer Price Index numbers published by the Australian Statistician;

‘ordinary income’ does not include an amount that is disregarded under the Social Security Act 1947, the Social Security Act 1991 or the Veterans’ Entitlements Act because of an earnings credit scheme;

‘total income’, for a person in a period, means the sum of:

reduced by so much of that amount as:

Veterans’ Affairs Legislation Amendment Act 1990

Subsection 93 (1):

Omit all words from and including “subsection 5 (12)”, substitute “subsection 5b (2) of the Veterans’ Entitlements Act 1986 applies in relation to the person as if the amendments made by section 19 of the Veterans’ Entitlements (Rewrite) Transition Act 1991 (as it relates to subsection 5b (2)) had not been made.”.

Subsection 93 (2):

Omit “paragraphs 37 (b) and (c) of this Act”, substitute “section 19 of the Veterans’ Entitlements (Rewrite) Transition Act 1991 (as it relates to subsection 5b (2))”.

Veterans’ Entitlements (Transitional Provisions and Consequential Amendments) Act 1986

Paragraph 4 (1) (d):

Omit the paragraph, substitute:

Paragraph 4 (2) (b):

Omit “sub-section 5 (1)”, substitute “paragraph (a) of the definition of ‘veteran’ in subsection 5c (1)”.

SCHEDULE 4—continued

Paragraph 5 (4) (c):

Omit “Part III of”.

Paragraph 8 (1) (b):

Omit “sub-section 35 (1)”, substitute “paragraph (a) or (b) of the definition of ‘veteran’ in subsection 5c (1)”.

Subsection 8 (2):

Omit “wife” (first occurring), substitute “partner or non-illness separated wife”.

Paragraph 8 (2) (a):

Omit “wife’s”, substitute “wife”.

Paragraph 8 (2) (b):

Omit “sub-section 35 (1)”, substitute “paragraph (a) or (b) of the definition of ‘veteran’ in subsection 5c (1)”.

Subsection 8 (3):

Omit “carer’s”, substitute “carer”.

Subsection 8 (4) (b):

Omit the paragraph, substitute:

Subsection 8 (4) (c):

Omit the paragraph.

Section 9:

Repeal the section.

Subsection 10 (2):

Paragraphs 10 (3) (a) and (4) (b):

Omit “, a wife’s service pension or a carer’s service pension”.

Paragraph 10 (4) (a):

Omit “a pension under Part IV of the Social Security Act 1947”, substitute “an age, invalid, wife or carer pension under the Social Security Act 1991”.

SCHEDULE 4—continued

Subsection 10 (5):

(b)    Omit “, a wife’s service pension or a carer’s service pension”.

Paragraph 10 (7) (c):

Omit “on and after 1 March 1989.”, substitute “between 1 March 1989 and 30 June 1991 (inclusive); or”.

Subsection 10 (7):

Add at the end:

Subsection 13 (2):

Omit “58 (1)”, substitute “section 56e”.

Paragraph 14 (5) (a) (first occurring):

(a)     Omit “unmarried”.

Paragraph 14 (5) (a) (second occurring):

Omit “sub-section 5 (1)”, substitute “paragraph (a) of the definition of ‘veteran’ in subsection 5c (1)”.

Paragraph 14 (9) (b):

Omit “sub-section 5 (1)”, substitute “paragraph (a) of the definition of ‘veteran’ in subsection 5c (1)”.

Subsection 20 (2):

Omit “section 59”, substitute “Division 19 of Part III”.

Subsection 22 (2):

Omit “Section 62 of the Veterans’ Entitlements Act extends”, substitute “Sections 57d and 57e of the Veterans’ Entitlements Act extend”.

Paragraph 22 (4) (b):

Omit “62”, substitute “57e”.

Subsection 23 (1):

(a)     Omit “sub-section 5 (1)”, substitute “subsection 5f (1)”.

(b)     Omit “ ‘or V’ ”, substitute “paragraph (f)”.

SCHEDULE 4—continued

Subsection 23 (3):

(a)     Omit “sub-section 5 (1)”, substitute “subsection 5f (1)”.

(b)    Omit “section 83”, substitute “Division 15 of Part III”.

(c)     Omit “ ‘or V’ ”, substitute “paragraph (f)”.

Subsection 23 (4):

Omit “sub-section 35 (8)”, substitute “subsection 5f (4)”.

Section 28:

Omit “sub-section 35 (8)”, substitute “subsection 5f (4)”.

Section 29:

Omit “sub-section 50 (8)”, substitute “subsection 5l (7)”.

Subsection 30 (1):

Omit “section 51”, substitute “Subdivision E of Division 14 of Part III”.

Subsection 30 (2):

(c)     Omit “51 (4) (c)”, substitute “52zb (1) (d)”.

Subsection 30 (3):

Omit “51”, substitute “52zf”.

Subsection 31 (2):

Omit “section 52”, substitute “Division 10 of Part III”.

Subsection 31 (3):

Omit “section 52”, substitute “Subdivision B of Division 14 of Part III”.

Section 39:

Omit “sub-section 125 (2)”, substitute “section 58h”.

Section 40:

Omit “, wife’s service pension or carer’s service pension, as the case may be,”.

Section 45:

Before “section 127” (wherever occurring), insert “section 54 or”.

SCHEDULE 4—continued

Subsection 45 (3):

(b)     After “served on the person under section”, insert “54 or”.

Paragraph 45 (3) (a):

After “a notice under”, insert “section 54 or”.

Paragraph 45 (3) (b):

After “a reference in”, insert “sections 56, 56a and 56b and in”.

Subsection 45 (5):

(a)     Omit “wife’s service pension or carer’s service pension”.

SCHEDULE 5 Section 22

Paragraph 5b (1) (b):

Omit “3 September 1945”, substitute “29 October 1945”.

Paragraph 5F (3) (c):

Omit “$100”, substitute “$107.70”.

SCHEDULE 5—continued

Subsection 5F (3):

Add at the end:

Subsection 5g (1) (Note):

(a)     Omit “section 5”, Substitute “section 4”.

(b)    Omit “section 7”, Substitute “section 15”.

Subsection 5m (5):

Omit “than” (second occurring), substitute “that”.

Paragraph 5p (a):

Omit “from”, substitute “that starts on the day after”.

Subsection 5q (1) (paragraph (c) of the definition of “determination of entitlement”):

Omit “or allowance”.

After section 5s:

Insert:

Lodgment of claims and documents

“5t. (1) For the purposes of this Act, a claim, application or other document is taken to have been:

“(2) The Commission may approve a place within or outside Australia for the purposes of subparagraph (1) (a) (i).

“(3) For the purposes of this Act, a claim or application is taken to have been made on the day on which it is received at an office of the Department in Australia.

Notes

“5u. For the purposes of this Act, a Note is taken to be part of:

SCHEDULE 5—continued

(e)     if the Note immediately follows a Table—the Table; or

Paragraph 35 (1) (d):

Add at the end:

“and to qualifying service claims (for example, review provisions)”.

After paragraph 36p (1) (d):

Insert:

Paragraph 37 (1) (c):

Omit “work; and”, substitute “work.”.

Paragraph 37 (1) (d):

Omit the paragraph.

After paragraph 37p (1) (d):

Insert:

SCHEDULE 5—continued

Subsection 38n (3):

Omit “Widow or Non-illness Separated Wife Rate Calculator”, substitute “Service Pension Rate Calculator for Widows and Non-illness Separated Wives”.

Paragraph 39a (1) (c):

Omit “section 58k”, substitute “subsection 58k (2)”.

After paragraph 39r (1) (d):

Insert:

Subsection 39n (2):

Omit “ ‘Frozen Rate’ Widow Service Pension Calculator”, substitute “Service Pension Rate Calculator for ‘Frozen Rate’ Widows”.

Subsection 40 (1) (Note):

Omit the Note, substitute:

Note 2: ‘additional amounts’ in paragraph (d) at this time means only remote area allowance.”.

Subsection 40c (2) (Table—column 1):

Omit “Widow or Non-illness Separated Wife Service Pension Rate Calculator”, substitute “Service Pension Rate Calculator for Widows and Non-illness Separated Wives”.

Subsection 41 (4):

Omit “ ‘Frozen Rate’ Widow Service Pension Rate Calculator”, substitute “Service Pension Rate Calculator for ‘Frozen Rate’ Widows”.

Subsection 41 (5):

After “partner were receiving” insert “a service pension or”.

Section 41 (Service Pension Rate Calculator Where There Are No Dependent Children—point 41-B1—Table B):

Omit the Table, substitute:

SCHEDULE 5—continued

Section 41 (Service Pension Rate Calculator Where There Are No Dependent Children—point 41-C2):

(a)     Omit “$1,040”, substitute “$1,300”.

(b)    Omit “$40”, substitute “$50”.

Section 41 (Service Pension Rate Calculator Where There Are No Dependent Children—point 41-C6—Table C-1):

Omit the Table, substitute:

Note 1: for ‘member of a couple’ and ‘partnered’ see section 5e.

Note 2: for ‘partner with a rent increased pension’ see point 41-C5.

SCHEDULE 5—continued

Section 41 (Service Pension Rate Calculator Where There Are No Dependent Children—point 41-C10—Method statement—Step 1):

Omit “disability income”, substitute “disability pension income”.

Section 41 (Service Pension Rate Calculator Where There Are No Dependent Children—point 41-C10—Method statement—Step 5):

Omit “disability income excess”, substitute “disability pension income excess”.

Section 41 (Service Pension Rate Calculator Where There Are No Dependent Children—point 41-C10—Method statement—Step 6):

Omit “rent assistance reduction amount”, substitute “rent assistance reduction amount”.

Section 41 (Service Pension Rate Calculator Where There Are No Dependent Children—point 41-C10—Method statement—Step 7):

Omit “rate of rent assistance” (second occurring), substitute “rate of rent assistance”.

Section 41 (Service Pension Rate Calculator Where There Are No Dependent Children—point 41-C12—Table C-2—Note 3):

Add at the end “(see sections 59b to 59e)”.

Section 41 (Service Pension Rate Calculator Where There Are No Dependent Children—point 41-C12—Table C-2—RENT ASSISTANCE EXAMPLES):

Omit the examples, substitute:

“rent assistance examples

Example 1:

William is a service pensioner who is not a member of a couple. He pays $100 per week rent for his flat.

He does not receive any disability pension.

Item 1 in Table C-l applies to William.

Rate A for William is:

Rate B for William is $1,612. The lesser rate is $1,612. This is the yearly rate of William’s rent assistance amount.

Example 2:

John and Mary are members of a pensioner couple. They rent a house for $150 per week.

John receives a 100% disability pension ($5,434 per year) and Mary receives a 50% disability pension ($105.30 per year).

Item 3 applies to them.

Rate A for John is:

SCHEDULE 5—continued

Rate B for John is $650. The lesser rate is $650. This is the maximum rate of rent assistance John can receive. As he and Mary receive disability pension, the rent assistance income test applies.

John’s disability pension income is:

Item 3 of Table C-2 applies. John’s disability pension income excess is:

The reduction in rent assistance would be (rounded to the nearest 10 cents)

Therefore the rent assistance John will receive is $331.20 ($806 - $474.80).

The same calculation applies to Mary’s yearly rate of rent assistance amount.”.

Section 41 (Service Pension Rate Calculator Where There Are No Dependent Children—point 41-D4—Table D-l—Note 3):

Add at the end “(see sections 59b to 59e)”.

Section 41 (Service Pension Rate Calculator Where There Are No Dependent Children—point 41-F3—Table F-1):

Omit the Table, substitute: