{"id":"F2025L00251","name":"Veterans’ Entitlements (Attributable Stakeholders and Attribution Percentages) Principles 2025","slug":"veterans-entitlements-attributable-stakeholders-and-attribution-percentages-principles-2025","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":106063,"registerId":"commonwealth-F2025L00251-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Preliminary","content":"## Part 1 Preliminary\n\n1 Name\n\nThis instrument is the Veterans’ Entitlements (Attributable Stakeholders and Attribution Percentages) Principles 2025.\n\n2 Commencement\n\nThis instrument commences on the day after the day it is registered.\n\n3 Authority\n\nThis instrument is made under the Veterans’ Entitlements Act 1986, paragraph 52ZZZQ(a).\n\n3A Repeal\n\nSchedule 2 to the Veterans’ Affairs (Legislative Instrument Re-making Exercise) Instrument 2014 is repealed.\n\n4 Definitions\n\n> Note: A number of expressions used in this instrument are defined in the Act, including the following:\n\n> Note: Commission\n\n> Note: Social Security Act\n\nIn this instrument:\n\n> Act means the Veterans’ Entitlements Act 1986.\n\n> company means a controlled private company.\n\n> contribution means:\n\n1.  a transfer of property or services, to a company or trust, at any time, whether before or after 7.30 pm, by standard time in the Australian Capital Territory, on 9 May 2000; and\n2.  any other kind of contribution:\n\n1.  in the case of a company — to either the capital or income of the company; and\n2.  in the case of a trust — to either the corpus or income of the trust.\n\n> trust means a controlled private trust.","sortOrder":0},{"sectionNumber":"Part 2","sectionType":"part","heading":"Determination that individual is not attributable stakeholder","content":"## Part 2 Determination that individual is not attributable stakeholder\n\n5 Purpose\n\nThis Part sets out decision-making principles with which the Commission must comply in making a determination, under paragraph 52ZZJ(1)(a) or (2)(c) of the Act, that an individual is not an attributable stakeholder of a company or trust.\n\n6 Application\n\n1.  This Part applies if, but for a determination by the Commission, the individual would be an attributable stakeholder of the company or trust.\n2.  The Commission must consider the relationship between the individual and the company or trust, having regard to:\n\n1.  the reason why, but for a determination, the individual would be an attributable stakeholder; and\n2.  the circumstances mentioned in this Part.\n\n1.  In particular, the Commission must consider whether the effect of one or more of the circumstances mentioned in this Part, in relation to the individual and the company or trust, provides a sufficient basis on which to determine that the individual is not an attributable stakeholder of the company or trust.\n\n7 Circumstances affecting relationship with company or trust\n\n1.  The Commission must consider whether there are relevant circumstances that make it inappropriate for the individual to be an attributable stakeholder of the company or trust.\n2.  For subsection (1), relevant circumstances include the extent to which the relationship between the individual and the company or trust is affected by any of the following circumstances:\n\n1.  circumstances arising from the legal structure of the company or trust;\n2.  circumstances arising from the administrative arrangements of the company or trust;\n3.  whether, having regard to the relationship between the individual and the company or trust, the individual can reasonably be expected to exercise effective control in relation to the company or trust.\n\n8 Contribution to company or trust\n\nIf the individual has made a contribution to the company or trust, the Commission must consider the circumstances in which the contribution was made and, in particular:\n\n1.  the value of the contribution; and\n2.  the proportion that the value of the contribution has to the total assets of the company or trust at the time of the contribution; and\n3.  the effect of the contribution on the financial position of the company or trust; and\n4.  if the individual received consideration for the contribution, the amount of consideration.\n\n9 Past benefit from distributions by company or trust\n\n1.  The Commission must consider whether the individual has received a benefit from a distribution made by the company or trust.\n2.  If an individual has received a benefit, the Commission must also consider:\n\n1.  the value of the benefit; and\n2.  if the individual has received a benefit on more than 1 occasion, the frequency with which the individual has received benefits.\n\n1.  For this section, a distribution includes a distribution:\n\n1.  in the case of a distribution by a company — of the capital or income, or both, of the company; and\n2.  in the case of a distribution by a trust — of the corpus or income, or both, of the trust.\n\n10 Future benefit from distributions by company or trust\n\n1.  The Commission must consider whether it is reasonably foreseeable that the individual may receive a benefit from a future distribution by the company or trust.\n2.  If subsection (1) applies, the Commission must also consider the likely value of the benefit.\n3.  For this section, the Commission must have regard to:\n\n1.  the constituent documents of the company; or\n2.  documents, if any, establishing the terms of the trust.\n\n1.  For this section, a distribution includes a distribution:\n\n1.  in the case of a distribution by a company — of the capital or income, or both, of the company; and\n2.  in the case of a distribution by a trust — of the corpus or income, or both, of the trust.\n\n11 Benefit from assets and income of company or trust\n\n1.  The Commission must consider whether the individual receives or derives any kind of benefit (other than a benefit mentioned in section 9 or 10) from the assets or income, or both, of the company or trust.\n2.  For this section, benefit:\n\n1.  is not limited to a benefit to which the individual has a legal or equitable entitlement; and\n2.  includes a benefit received or derived in the form of property or services.\n\n12 Existing attribution to individual\n\n1.  The Commission must consider whether the individual is:\n\n1.  under the Act — an attributable stakeholder of any other company or trust; or\n2.  under the Social Security Act — an attributable stakeholder of the company or trust, or of any other company or trust.\n\n1.  If subsection (1) applies, the Commission must also consider:\n\n1.  the asset attribution percentage attributed to the individual, if any; and\n2.  the income attribution percentage attributed to the individual, if any.\n\n13 Other circumstances\n\nThe Commission must consider any other circumstance that affects the involvement of the individual with the activities or the administration of the company or trust.","sortOrder":1},{"sectionNumber":"Part 3","sectionType":"part","heading":"Determination of asset attribution percentage","content":"## Part 3 Determination of asset attribution percentage\n\n14 Purpose\n\nThis Part sets out decision-making principles with which the Commission must comply in making a determination, under subparagraph 52ZZJ(1)(b)(ii) or (2)(d)(ii) of the Act, that an attributable stakeholder’s asset attribution percentage, in relation to a company or a trust, is a specified percentage lower than 100%.\n\n15 Application\n\n1.  This Part applies if, but for a determination by the Commission, the asset attribution percentage of the attributable stakeholder, in relation to the company or trust, would be 100%.\n2.  The Commission must consider the relationship between the individual and the company or trust, having regard to the circumstances mentioned in this Part.\n3.  In particular, the Commission must consider whether the effect of one or more of the circumstances mentioned in this Part, in relation to the individual and the company or trust, provides a sufficient basis on which to determine a percentage lower than 100% as the asset attribution percentage.\n\n16 Circumstances affecting relationship with company or trust\n\n1.  The Commission must consider whether there are relevant circumstances that make it inappropriate for the individual to have an asset attribution percentage of 100%.\n2.  For subsection (1), relevant circumstances include the extent to which the relationship between the individual and the company or trust is affected by any of the following circumstances:\n\n1.  circumstances arising from the legal structure of the company or trust;\n2.  circumstances arising from the administrative arrangements of the company or trust;\n3.  whether, having regard to the relationship between the individual and the company or trust, the individual can reasonably be expected to exercise effective control in relation to the company or trust and, if so, the extent of that control.\n\n17 Contribution to company or trust\n\nIf the individual has made a contribution to the company or trust, the Commission must consider the circumstances in which the contribution was made and, in particular:\n\n1.  the value of the contribution; and\n2.  the proportion that the value of the contribution has to the total assets of the company or trust at the time of the contribution; and\n3.  the effect of the contribution on the financial position of the company or trust; and\n4.  if the individual received consideration for the contribution, the amount of consideration.\n\n18 Past benefit from distributions by company or trust\n\n1.  The Commission must consider whether the individual has received a benefit from a distribution made by the company or trust.\n2.  If an individual has received a benefit, the Commission must also consider:\n\n1.  the value of the benefit; and\n2.  if the individual has received a benefit on more than 1 occasion, the frequency with which the individual has received benefits.\n\n1.  For this section, a distribution includes a distribution:\n\n1.  in the case of a distribution by a company — of the capital or income, or both, of the company; and\n2.  in the case of a distribution by a trust — of the corpus or income, or both, of the trust.\n\n19 Future benefit from distributions by company or trust\n\n1.  The Commission must consider whether it is reasonably foreseeable that the individual may receive a benefit from a future distribution by the company or trust.\n2.  If subsection (1) applies, the Commission must also consider the likely value of the benefit.\n3.  For this section, the Commission must have regard to:\n\n1.  the constituent documents of the company; or\n2.  documents, if any, establishing the terms of the trust.\n\n1.  For this section, a distribution includes a distribution:\n\n1.  in the case of a distribution by a company — of the capital or income, or both, of the company; and\n2.  in the case of a distribution by a trust — of the corpus or income, or both, of the trust.\n\n20 Benefit from assets and income of company or trust\n\n1.  The Commission must consider whether the individual receives or derives any kind of benefit (other than a benefit mentioned in section 18 or 19) from the assets or income, or both, of the company or trust.\n2.  For this section, benefit:\n\n1.  is not limited to a benefit to which the individual has a legal or equitable entitlement; and\n2.  includes a benefit received or derived in the form of property or services.\n\n21 Existing attribution to individual\n\n1.  The Commission must consider whether the individual is:\n\n1.  under the Act — an attributable stakeholder of any other company or trust; or\n2.  under the Social Security Act — an attributable stakeholder of the company or trust, or of any other company or trust.\n\n1.  If subsection (1) applies, the Commission must also consider:\n\n1.  the asset attribution percentage attributed to the individual, if any; and\n2.  the income attribution percentage attributed to the individual, if any.\n\n22 Other circumstances\n\nThe Commission must consider any other circumstance that affects the involvement of the individual with the activities or the administration of the company or trust.","sortOrder":2},{"sectionNumber":"Part 4","sectionType":"part","heading":"Determination of income attribution percentage","content":"## Part 4 Determination of income attribution percentage\n\n23 Purpose\n\nThis Part sets out decision-making principles with which the Commission must comply in making a determination, under subparagraph 52ZZJ(1)(c)(ii) or (2)(e)(ii) of the Act, that an attributable stakeholder’s income attribution percentage, in relation to a company or trust, is a specified percentage lower than 100%.\n\n24 Application\n\n1.  This Part applies if, but for a determination by the Commission, the income attribution percentage of the attributable stakeholder, in relation to the company or trust, would be 100%.\n2.  The Commission must consider the relationship between the individual and the company or trust, having regard to the circumstances mentioned in this Part.\n3.  In particular, the Commission must consider whether the effect of one or more of the circumstances mentioned in this Part, in relation to the individual and the company or trust, provides a sufficient basis on which to determine a percentage lower than 100% as the income attribution percentage.\n\n25 Circumstances affecting relationship with company or trust\n\n1.  The Commission must consider whether there are relevant circumstances that make it inappropriate for the individual to have an income attribution percentage of 100%.\n2.  For subsection (1), relevant circumstances include the extent to which the relationship between the individual and the company or trust is affected by any of the following circumstances:\n\n1.  circumstances arising from the legal structure of the company or trust;\n2.  circumstances arising from the administrative arrangements of the company or trust;\n3.  whether, having regard to the relationship between the individual and the company or trust, the individual can reasonably be expected to exercise effective control in relation to the company or trust and, if so, the extent of that control.\n\n26 Contribution to company or trust\n\nIf the individual has made a contribution to the company or trust, the Commission must consider the circumstances in which the contribution was made and, in particular:\n\n1.  the value of the contribution; and\n2.  the proportion that the value of the contribution has to the total assets of the company or trust at the time of the contribution; and\n3.  the effect of the contribution on the financial position of the company or trust; and\n4.  if the individual received consideration for the contribution, the amount of consideration.\n\n27 Past benefit from distributions by company or trust\n\n1.  The Commission must consider whether the individual has received a benefit from a distribution made by the company or trust.\n2.  If an individual has received a benefit, the Commission must also consider:\n\n1.  the value of the benefit; and\n2.  if the individual has received a benefit on more than 1 occasion, the frequency with which the individual has received benefits.\n\n1.  For this section, a distribution includes distributions:\n\n1.  in the case of a distribution by a company — of the capital or income, or both, of the company; and\n2.  in the case of a distribution by a trust — of the corpus or income, or both, of the trust.\n\n28 Future benefit from distributions by company or trust\n\n1.  The Commission must consider whether it is reasonably foreseeable that the individual may receive a benefit from a future distribution by the company or trust.\n2.  If subsection (1) applies, the Commission must also consider the likely value of the benefit.\n3.  For this section, the Commission must have regard to:\n\n1.  the constituent documents of the company; or\n2.  documents, if any, establishing the terms of the trust.\n\n1.  For this section, a distribution includes distributions:\n\n1.  in the case of a distribution by a company — of the capital or income, or both, of the company; and\n2.  in the case of a distribution by a trust — of the corpus or income, or both, of the trust.\n\n29 Benefit from assets and income of company or trust\n\n1.  The Commission must consider whether the individual receives or derives any kind of benefit (other than a benefit mentioned in section 27 or 28) from the assets or income, or both, of the company or trust.\n2.  For this section, benefit:\n\n1.  is not limited to a benefit to which the individual has a legal or equitable entitlement; and\n2.  includes benefits received or derived in the form of property or services.\n\n30 Existing attribution to individual\n\n1.  The Commission must consider whether the individual is:\n\n1.  under the Act — an attributable stakeholder of any other company or trust; or\n2.  under the Social Security Act — an attributable stakeholder of the company or trust, or of any other company or trust.\n\n1.  If subsection (1) applies, the Commission must also consider:\n\n1.  the asset attribution percentage attributed to the individual, if any; and\n2.  the income attribution percentage attributed to the individual, if any.\n\n31 Other circumstances\n\nThe Commission must consider any other circumstance that affects the involvement of the individual with the activities or the administration of the company or trust.","sortOrder":3}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"This is a re-making of existing legislative principles (replacing Schedule 2 to the 2014 Instrument) under the Veterans' Entitlements Act 1986. The scope remains consistent with the original intent: providing decision-making principles for attribution determinations regarding companies and trusts. The instrument does not expand into new policy areas or substantive entitlements."},"complexity_factors":["Highly repetitive structure: Parts 2, 3, and 4 are nearly identical, with only minor variations in language (e.g., 'attributable stakeholder' vs 'asset attribution percentage' vs 'income attribution percentage')","Extensive cross-referencing to the Veterans' Entitlements Act 1986 (specifically sections 52ZZJ and 52ZZZQ) and the Social Security Act, requiring external knowledge to fully understand the framework","Nested definitions: 'company' and 'trust' are defined by reference to 'controlled private company' and 'controlled private trust' from the parent Act, not defined in this instrument","Circular logic in application sections (sections 6, 15, 24) which require the Commission to consider whether circumstances provide 'sufficient basis' for determinations without defining what constitutes 'sufficient'","Broad discretionary language throughout ('any other circumstance', 'reasonably foreseeable', 'reasonably be expected') creating significant interpretive uncertainty","Technical terminology requiring specialist knowledge: 'attributable stakeholder', 'asset attribution percentage', 'income attribution percentage', 'corpus', 'constituent documents'","Duplicate section numbering in the source text (two 'Part 1 Preliminary' headings)"],"plain_english_summary":"This instrument lets the Department of Veterans' Affairs decide that a veteran or family member is not, or is only partly, an \"attributable stakeholder\" of a private company or trust, so only none or a reduced share of that entity’s assets or income counts against their pension. \n\nIt affects veterans and dependants with company/trust ties (common in farms/small family businesses) and prevents pension reductions where the person lacks control or real benefit from the assets."},"flash_summary":{"complexity_score":5,"scope_assessment":{"changed":true,"description":"Yes. Section 3A repeals Schedule 2 of the Veterans’ Affairs (Legislative Instrument Re-making Exercise) Instrument 2014 and this instrument provides the decision-making principles that govern attribution determinations under paragraph 52ZZJ of the Veterans’ Entitlements Act. The instrument therefore replaces the prior legislative-instrument baseline for those attribution rules while remaining focused on criteria the Commission must apply."},"complexity_factors":["Cross-reference to the Veterans’ Entitlements Act 1986 and the Social Security Act, requiring interpretation of primary legislation and inter-act consistency (see s4, ss12,21,30).","Three parallel but distinct decision frameworks (not-attributable, asset percentage, income percentage) with overlapping factors that demand careful comparative application (Parts 2–4; ss5,14,23).","Substantial administrative discretion for the Commission to weigh factual circumstances and foreseeability (repeated open-ended tests: ss7,16,25; 'other circumstances' in ss13,22,31).","Multiple factual considerations to be assessed in each case: contributions, value proportions, effects on financial position, past and future distributions, and derived benefits (see ss8–11,17–20,26–29).","Technical definitions and reference points (eg. controlled private company/trust; historical timestamp in s4) that affect eligibility and evidentiary framing.","Repeal of Schedule 2 to the 2014 Instrument (s3A), which alters the prior instrument baseline and may require transitional administrative adjustment."],"plain_english_summary":"This instrument prescribes the decision-making principles the Repatriation Commission must use when deciding whether an individual is an attributable stakeholder of a controlled private company or trust, or when reducing an attributable stakeholder’s asset or income attribution percentage from 100% (Parts 2–4; ss5,14,23).\n\nIt affects veterans and others whose holdings are assessed under the Veterans’ Entitlements Act. The Commission must consider legal/administrative structure, control, contributions, past or foreseeable distributions and other involvement — creating discretionary factual tests that determine attribution and related assessments (see ss8–12,17–21,26–30)."}},"importantCases":[],"_links":{"self":"/api/acts/veterans-entitlements-attributable-stakeholders-and-attribution-percentages-principles-2025","history":"/api/acts/veterans-entitlements-attributable-stakeholders-and-attribution-percentages-principles-2025/history","analysis":"/api/acts/veterans-entitlements-attributable-stakeholders-and-attribution-percentages-principles-2025/analysis","conflicts":"/api/acts/veterans-entitlements-attributable-stakeholders-and-attribution-percentages-principles-2025/conflicts","importantCases":"/api/acts/veterans-entitlements-attributable-stakeholders-and-attribution-percentages-principles-2025/important-cases","documents":"/api/acts/veterans-entitlements-attributable-stakeholders-and-attribution-percentages-principles-2025/documents"}}