{"id":"F2025L00810","name":"Veterans’ Entitlements (Principles—Definition of PF (Payment Factor)) Determination 2025","slug":"veterans-entitlements-principles-definition-of-pf-payment-factor-determination-2025","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":442885,"registerId":"F2025L00810-fast-fetch-1775957803348","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Veterans’ Entitlements (Principles—Definition of PF (Payment Factor)) Determination 2025","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n\n\nVeterans’ Entitlements (Principles—Definition of PF (Payment Factor)) Determination 2025\n\nThe Repatriation Commission makes the following instrument.\n\nDated 19 June 2025\n\nThe Seal of the\n\nRepatriation Commission\n\nwas affixed to this instrument\n\nat the direction of:\n\n| Alison Frame | Mark Brewer |\n| --- | --- |\n| | AM CSC and Bar |\n| President
| Deputy President
|\n| Gwen Cherne | Kahlil Fegan |\n| | DSC AM |\n| Commissioner | Commissioner
|\n\n\n\n\n\nContents\n\n \n\n[Part 1—Preliminary](#_Toc196813574)\n\n[1 Name](#_Toc196813575)\n\n[2 Commencement](#_Toc196813576)\n\n[3 Authority](#_Toc196813577)\n\n[4 Repeals](#_Toc196813578)\n\n[5 Definitions](#_Toc196813579)\n\n[Part 2—Principles](#_Toc196813580)\n\n[6 Principles](#_Toc196813581)\n\n \n\n \n\n\n\n\n# Part 1—Preliminary\n\n## 1 Name\n\nThis instrument is the Veterans’ Entitlements (Principles—Definition of PF (Payment Factor)) Determination 2025.\n\n## 2 Commencement\n\nThis instrument commences on the day after the day it is registered.\n\n## 3 Authority\n\nThis instrument is made under subsection 5JBA(5A) of the Act.\n\n## 4 Repeals\n\nThe Veterans’ Entitlements (Asset-test Exempt Income Stream (Market‑linked) — Payment Factors) Principles 2005 (Instrument 2015 No. R7) is repealed.\n\n## 5 Definitions\n\nNote: A number of expressions used in this instrument are defined in the Act, including the following:\n\n(a) Commission;\n\n(b) PF—see subsection 5JBA(5).\n\n In this instrument:\n\nAct means the Veterans’ Entitlements Act 1986.\n\nspecified year means a financial year commencing on 1 July 2019, 1 July 2020, 1 July 2021 or 1 July 2022.\n\n\n\n\nPart 2—Principles\n\n## 6 Principles\n\n1. For the formula in subsection 5JBA(5) of the Act, PF means the payment factor specified in column 2 of the table in this section that corresponds with the remaining term of the income stream specified in column 1.\n\n\nNote: Subsections (3) and (4) modify the applicable payment factor in certain circumstances.\n\n1. The payment factor is to be applied:\n\n\n (a) on 1 July of the financial year for which the total amount is being worked out; or\n\n (b) if that financial year is the year in which the income stream commences—on the commencement day for the income stream.\n\n (3) If the financial year identified under subsection (2) is a specified year, when applying the formula in subsection 5JBA(5) of the Act to determine the minimum amount of the payments to be made under the income stream, the applicable payment factor is taken to be twice the payment factor specified in column 2 of the table in this section that corresponds with the remaining term of the income stream specified in column 1.\n\n (4) If the amount worked out under subsection 5JBA(5) of the Act (using the payment factor applicable under subsection (1) and, if required, adjusted under subsection (3)) is not $10, or a multiple of $10, the applicable payment factor is taken to be the factor that results in that amount rounding to $10, or the nearest multiple of $10, as appropriate.\n\n (5) For subsection (1), the remaining term of an income stream is rounded to the nearest whole year as follows:\n\n (a) if the commencement day of the income stream is on or after 1 January in a financial year, the term is rounded up to the nearest whole year;\n\n (b) if the commencement day is on or before 31 December in a financial year, the term is rounded down to the nearest whole year.\n\n \n\nPayment Factors\n\n| Item | Column 1 Term of income stream remaining in years | Column 2 Payment factor |\n| --- | --- | --- |\n| 1 | 70 or more | 26.00 |\n| 2 | 69 | 25.91 |\n| 3 | 68 | 25.82 |\n| 4 | 67 | 25.72 |\n| 5 | 66 | 25.62 |\n| 6 | 65 | 25.52 |\n| 7 | 64 | 25.41 |\n| 8 | 63 | 25.30 |\n| 9 | 62 | 25.19 |\n| 10 | 61 | 25.07 |\n| 11 | 60 | 24.94 |\n| 12 | 59 | 24.82 |\n| 13 | 58 | 24.69 |\n| 14 | 57 | 24.55 |\n| 15 | 56 | 24.41 |\n| 16 | 55 | 24.26 |\n| 17 | 54 | 24.11 |\n| 18 | 53 | 23.96 |\n| 19 | 52 | 23.80 |\n| 20 | 51 | 23.63 |\n| 21 | 50 | 23.46 |\n| 22 | 49 | 23.28 |\n| 23 | 48 | 23.09 |\n| 24 | 47 | 22.90 |\n| 25 | 46 | 22.70 |\n| 26 | 45 | 22.50 |\n| 27 | 44 | 22.28 |\n| 28 | 43 | 22.06 |\n| 29 | 42 | 21.83 |\n| 30 | 41 | 21.60 |\n| 31 | 40 | 21.36 |\n| 32 | 39 | 21.10 |\n| 33 | 38 | 20.84 |\n| 34 | 37 | 20.57 |\n| 35 | 36 | 20.29 |\n| 36 | 35 | 20.00 |\n| 37 | 34 | 19.70 |\n| 38 | 33 | 19.39 |\n| 39 | 32 | 19.07 |\n| 40 | 31 | 18.74 |\n| 41 | 30 | 18.39 |\n| 42 | 29 | 18.04 |\n| 43 | 28 | 17.67 |\n| 44 | 27 | 17.29 |\n| 45 | 26 | 16.89 |\n| 46 | 25 | 16.48 |\n| 47 | 24 | 16.06 |\n| 48 | 23 | 15.62 |\n| 49 | 22 | 15.17 |\n| 50 | 21 | 14.70 |\n| 51 | 20 | 14.21 |\n| 52 | 19 | 13.71 |\n| 53 | 18 | 13.19 |\n| 54 | 17 | 12.65 |\n| 55 | 16 | 12.09 |\n| 56 | 15 | 11.52 |\n| 57 | 14 | 10.92 |\n| 58 | 13 | 10.30 |\n| 59 | 12 | 9.66 |\n| 60 | 11 | 9.00 |\n| 61 | 10 | 8.32 |\n| 62 | 9 | 7.61 |\n| 63 | 8 | 6.87 |\n| 64 | 7 | 6.11 |\n| 65 | 6 | 5.33 |\n| 66 | 5 | 4.52 |\n| 67 | 4 | 3.67 |\n| 68 | 3 | 2.80 |\n| 69 | 2 | 1.90 |\n| 70 | 1 or less | 1.00 |\n\n\n \n","sortOrder":0}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"This instrument maintains the same narrow scope as its 2005 predecessor. It is purely definitional — establishing the numerical values for 'payment factor' used in a single formula in the principal Act. The inclusion of temporary COVID-19 relief measures (the 'specified years' doubling provision) expands the temporal application but not the substantive scope of the instrument. The instrument remains tightly focused on its original purpose of providing actuarial factors for market-linked income streams."},"complexity_factors":["Single purpose instrument with narrow scope — only defines one term (PF) for use in one formula","Straightforward structure: preliminary provisions, one operative section with 5 subsections, and one table","Limited cross-referencing — only refers to subsection 5JBA(5) of the Veterans' Entitlements Act 1986 and incorporates definitions from that Act","Only 2 defined terms in the instrument itself ('Act' and 'specified year')","Simple conditional logic — subsections (3) and (4) provide adjustments for specific years and rounding, but these are linear modifications rather than nested exceptions","The table is long (70 rows) but purely mechanical — no interpretive complexity","No exceptions to exceptions or recursive definitions"],"plain_english_summary":"This instrument replaces the 2005 determination and prescribes how to calculate minimum annual payments from veterans’ asset-test‑exempt market‑linked income streams. It supplies a table of payment factors tied to remaining terms, rules for annual or start‑of‑stream application, term‑rounding and factor rounding, and temporary COVID relief (doubling factors for 2019–20 through 2022–23, halving required withdrawals). It affects veterans and families, product administrators and DVA assessors because these minima determine pension eligibility and capital preservation."},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The instrument repeals the earlier payment‑factor principles (s 4) and supplies a new PF table and procedural rules, but it stays within the Repatriation Commission's statutory power to define PF for subsection 5JBA(5) (see ss 3 and 6). It updates numeric factors and rounding/application rules without expanding the underlying statutory scope."},"complexity_factors":["Long numeric table linking remaining term (1–70+ years) to a specific payment factor (Part 2, s 6 table)","Special doubling rule for four listed financial years (s 6(3): 'specified year' definition and effect)","Rounding rule to the nearest $10 for minimum payment amounts when not already a multiple of $10 (s 6(4))","Rule for rounding remaining term to whole years based on commencement date (s 6(5)(a)–(b))","Timing rule for applying the factor (on 1 July of the financial year or on income‑stream commencement day) (s 6(2))","Repeal of the previous instrument (s 4) requires implementers to switch to the new table and rules","Reliance on defined terms and statutory formula in the Act (s 5 notes; authority in s 3) which creates dependency on external definitions"],"plain_english_summary":"This instrument defines the payment factor (PF) table used under subsection 5JBA(5) of the Veterans’ Entitlements Act 1986 to calculate minimum payments from asset‑test‑exempt income streams and repeals the earlier 2005 payment‑factor instrument. It affects veterans with such income streams, the Repatriation Commission that applies the formula, and income‑stream providers; the selected PF changes how much of an income stream is treated for means testing and determines the minimum payment that must be made."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/veterans-entitlements-principles-definition-of-pf-payment-factor-determination-2025","history":"/api/acts/veterans-entitlements-principles-definition-of-pf-payment-factor-determination-2025/history","analysis":"/api/acts/veterans-entitlements-principles-definition-of-pf-payment-factor-determination-2025/analysis","conflicts":"/api/acts/veterans-entitlements-principles-definition-of-pf-payment-factor-determination-2025/conflicts","importantCases":"/api/acts/veterans-entitlements-principles-definition-of-pf-payment-factor-determination-2025/important-cases","documents":"/api/acts/veterans-entitlements-principles-definition-of-pf-payment-factor-determination-2025/documents"}}