{"id":"C2004A04148","name":"Veterans' Entitlements (Rewrite) Transition Act 1991","slug":"veterans-entitlements-rewrite-transition-act-1991","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"73 of 1991","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":37210,"registerId":"commonwealth-C2004A04148-current","compilationNumber":null,"startDate":"2026-04-01","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"PRELIMINARY","content":"PART 1—PRELIMINARY\n\n

Section

1.

Short title

2.

Commencement

PART 2—SAVINGS AND TRANSITIONAL PROVISIONS

Division 1—General

3.

Interpretation

4.

Correspondence of pensions

5.

Correspondence of provisions

Division 2—Savings

6.

General aim of Division

7.

Saving of pensions and qualifying service determinations

8.

Instruments in force on 30 June 1991

9.

Saving of claims for pensions and qualifying service determinations

10.

Unfinalised internal reviews

11.

Application to participate in the pension loans scheme

12.

Application to take advantage of hardship rules

13.

Payment of service pension to agent

14.

Request to terminate service pension

15.

Cancellation or suspension where person fails to draw instalments

16.

Deduction of tax from service pension

\n```\n\nTABLE OF PROVISIONS—continued\n\n

Section

Division 3—Transitional (1990 Budget)

17.

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

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

18.

Indexation amendments

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

19.

1990 Budget amendments

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

20.

Consequential amendments of the Veterans’ Entitlements Act 1986

PART 6—CONSEQUENTIAL AMENDMENTS OF OTHER ACTS

21.

Consequential amendments of other Acts

PART 7—MINOR AMENDMENTS OF THE VETERANS’ ENTITLEMENTS

ACT 1986

22.

Minor amendments of the Veterans’ Entitlements Act 1986

SCHEDULE 1

INDEXATION AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986

SCHEDULE 2

1990 BUDGET AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986

SCHEDULE 3

CONSEQUENTIAL AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986

SCHEDULE 4

CONSEQUENTIAL AMENDMENTS OF OTHER ACTS

SCHEDULE 5

MINOR AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986

\n```\n\n![](image.002.png)\n\nVeterans’ Entitlements (Rewrite) Transition Act 1991\n\nNo. 73 of 1991\n\n![](image.004.png)![](image.003.png)An Act to make consequential amendments and savings and transitional provisions relating to the Veterans’ Entitlements Amendment Act 1991\n\n\\[Assented to 25 June 1991\\]\n\nThe Parliament of Australia enacts:\n\nPART 1—PRELIMINARY\n\nShort title\n\n1\\. (1) This Act may be cited as the Veterans’ Entitlements (Rewrite)\n\nTransition Act 1991.\n\n(2) In this Act, “Principal Act” means the Veterans’ Entitlements Act 19861.\n\nCommencement\n\n2. (1) Subject to subsection (2), this Act commences on 1 July 1991, immediately after the commencement of the Veterans’ Entitlements Amendment Act 1991.\n\n(2) Section 19 commences immediately after the commencement of section 22.\n\n","sortOrder":0},{"sectionNumber":"Part 2","sectionType":"part","heading":"SAVINGS AND TRANSITIONAL PROVISIONS","content":"PART 2—SAVINGS AND TRANSITIONAL PROVISIONS\n\n","sortOrder":1},{"sectionNumber":"Div 1","sectionType":"division","heading":"General","content":"Division 1—General\n\nInterpretation\n\n3. In this Part:\n\n“former Part III” means Part III of the Principal Act as in force immediately before 1 July 1991;\n\n“new Part III” means Part III of the Principal Act as in force on 1 July 1991.\n\nCorrespondence of pensions\n\n4. For the purposes of this Part:\n\n(a) a service pension granted to a person because of section 38 of the former Part III and an age service pension under the new Part III correspond to each other; and\n\n(b) a service pension granted to a person because of section 39 of the former Part III and an invalidity service pension under the new Part III correspond to each other; and\n\n(c) a wife’s service pension granted to a person because of section\n\n40 of the former Part III and a wife service pension under the new Part III correspond to each other; and\n\n(d) a carer’s service pension granted to a person because of section\n\n41 of the former Part III and a carer service pension under the new Part III correspond to each other.\n\nCorrespondence of provisions\n\n5. (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.\n\n(a) one provision of the former Part III has a particular legal effect in relation to different types of service pension; and\n\n(b) a provision of the new Part III has that legal effect in relation to only one of those types of service pension;\n\nthe provisions correspond to each other for the purposes of applying this Part (Savings and Transitional Provisions) to that payment type.\n\n(3) In this section:\n\n“legal effect” includes conferring the power to issue an instrument.\n\n","sortOrder":2},{"sectionNumber":"Div 2","sectionType":"division","heading":"Savings","content":"Division 2—Savings\n\nGeneral aim of Division\n\n6. The main aim of this Division is to allow:\n\n(a) the continued payment of pensions that were granted under the former Part III; and\n\n(b) the continuation of processes (such as claims and applications) that were begun under the former Part III;\n\nwithout the need for people to make new claims or begin those processes again.\n\nSaving of pensions and qualifying service determinations\n\n7. (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.\n\nNote: for the statutory authority for the determination and decision under the former Part III see subsections 46 (1) and 43 (6) and section 59 of that Act.\n\n(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.\n\nNote: for the statutory authority for the determination under the former Part III see subsection 46 (2) and section 59 of that Act.\n\n(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.\n\nNote: for the statutory authority for the determination under the former Part III see subsections 46 (2) and 58 (1) and (3) and section 59 of that Act.\n\nInstruments in force on 30 June 1991\n\n8. (1) If:\n\n(a) an instrument made under a provision of the Principal Act is in force immediately before 1 July 1991; and\n\n(b) the provision under which it was made is repealed on 1 July 1991; and\n\n(c) a provision with the same legal effect is included in the Principal Act as in force on 1 July 1991;\n\nthe instrument has effect as if it were an instrument made under the provision referred to in paragraph (c).\n\n(2) Without limiting subsection (1), the instrument may be:\n\n(a) a determination or decision; or\n\n(b) a direction; or\n\n(c) an approval; or\n\n(d) a notice; or\n\n(e) a declaration; or\n\n(f) an authorisation.\n\n(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.\n\nSaving of claims for pensions and qualifying service determinations\n\n9\\. (1) If:\n\n(a) a person has lodged a claim for:\n\n(i) a pension; or\n\n(ii) a decision that the person has rendered qualifying service; under the former Part III; and\n\n(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:\n\n(c) a corresponding pension; or\n\n(d) a qualifying service determination; under the new Part III.\n\n(a) subsection (1) applies to a claim; and\n\n(b) a claim is granted under the new Part III;\n\nthe determination granting the claim may have a date of effect before 1 July 1991.\n\n(a) subsection (1) applies to a claim; and\n\n(b) the claim is granted under the new Part III; and\n\n(c) the determination granting the claim has a date of effect before 1 July 1991;\n\nthe 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.\n\nUnfinalised internal reviews\n\n10. (1) If:\n\n(a) a person has made an application under subsection 59 (1) of the former Part III before 1 July 1991; and\n\n(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.\n\n(2) The date of effect of the decision made in response to the application may be before 1 July 1991.\n\n(a) subsection (1) applies to an application; and\n\n(b) the date of effect of the decision made in response to the application is before 1 July 1991;\n\nthe 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.\n\nApplication to participate in the pension loans scheme\n\n11. (1) If:\n\n(a) a person has made a request under subsection 51 (2) of the former Part III before 1 July 1991; and\n\n(b) the request has not been determined before 1 July 1991;\n\nthe request has effect from 1 July 1991 as if it had been made under subsection 52zd (1) of the new Part III.\n\n(a) subsection (1) applies to a request; and\n\n(b) the request is granted under this Act;\n\nthe 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.\n\nApplication to take advantage of hardship rules\n\n12. (1) If:\n\n(a) a person made a request under subsection 53 (1) of the former Part III before 1 July 1991; and\n\n(b) the request was not determined before 1 July 1991;\n\nthe request has effect, from 1 July 1991 as if it had been made under subsection 52y (1) of the new Part III.\n\n(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).\n\n(a) subsection (1) applies to a request; and\n\n(b) the request is granted under the new Part III; and\n\n(c) the date of effect of the decision to grant the request is before 1 July 1991;\n\nthe 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.\n\nPayment of service pension to agent\n\n13. 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.\n\nRequest to terminate service pension\n\n14. 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.\n\nCancellation or suspension where person fails to draw instalments\n\n15. 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.\n\nDeduction of tax from service pension\n\n16. 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.\n\n","sortOrder":3},{"sectionNumber":"Div 3","sectionType":"division","heading":"Transitional (1990 Budget)","content":"Division 3—Transitional (1990 Budget)\n\nFringe benefits test—interest attributed to money not invested or invested at a low rate of interest (changes introduced on 1 March 1991)\n\n17. If a person:\n\n(a) was not a prescribed person within the meaning of section 82 of the Principal Act on 28 February 1991; and\n\n(b) would have been a prescribed person on that day if the amendments made by subsection 54 (1) of the Veterans’ Affairs Legislation Amendment Act 1991 (interest attributed to money not invested or invested at a low rate of interest) had been in force on that day;\n\nthen, 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:\n\n(c) the person would not, at any time between 28 February and 1 July 1991, have become a prescribed person within the meaning of section 82 if the amendments referred to in paragraph (b) had not been made; and\n\n(d) the person would not, at any time after 30 June 1991, cease to be eligible for fringe benefits under Division 15 of the Principal Act if that Act did not contain Division 8a of Part III.\n\n","sortOrder":4},{"sectionNumber":"Part 3","sectionType":"part","heading":"INDEXATION AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986","content":"PART 3—INDEXATION AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986\n\nIndexation amendments\n\n18. The Principal Act is amended as set out in Schedule 1.\n\n","sortOrder":5},{"sectionNumber":"Part 4","sectionType":"part","heading":"1990 BUDGET AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986","content":"PART 4—1990 BUDGET AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986\n\n","sortOrder":6},{"sectionNumber":"1990","sectionType":"section","heading":"Budget amendments","content":"1990 Budget amendments\n\n19. The Principal Act is further amended as set out in Schedule 2.\n\n","sortOrder":7},{"sectionNumber":"Part 5","sectionType":"part","heading":"CONSEQUENTIAL AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986","content":"PART 5—CONSEQUENTIAL AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986\n\nConsequential amendments of the Veterans’ Entitlements Act 1986\n\n20. The Principal Act is further amended as set out in Schedule 3.\n\n","sortOrder":8},{"sectionNumber":"Part 6","sectionType":"part","heading":"CONSEQUENTIAL AMENDMENTS OF OTHER ACTS","content":"PART 6—CONSEQUENTIAL AMENDMENTS OF OTHER ACTS\n\nConsequential amendments of other Acts\n\n21. The Acts specified in Schedule 4 are amended as set out in that Schedule.\n\n","sortOrder":9},{"sectionNumber":"Part 7","sectionType":"part","heading":"MINOR AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986","content":"PART 7—MINOR AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986\n\nMinor amendments of the Veterans’ Entitlements Act 1986\n\n22. The Principal Act is further amended as set out in Schedule 5.\n\n![](image.005.png)\n\n","sortOrder":10},{"sectionNumber":"Sch 1","sectionType":"schedule","heading":"Section 18","content":"SCHEDULE 1 Section 18\n\nINDEXATION AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986\n\nAfter section 5n:\n\nIndexation and rate adjustment definitions\n\n“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:\n\n(a) if the amount has not yet been indexed or adjusted under Division 21 before that time—the amount; and\n\n(b) if the amount has been indexed or adjusted under Division 21 before that time—the amount most recently substituted for the amount under Division 21 before that time;\n\nindex 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.\n\nPublication of substituted index numbers\n\n“(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.\n\nChange to CPI reference base\n\n“(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.\n\nAfter Division 20:\n\nInsert the following Division in Part III:\n\n“Division 21—Indexation\n\n“Subdivision A—Preliminary\n\nAnalysis of Division\n\n“59. This Division provides for:\n\n(a) the indexation, in line with CPI (Consumer Price Index) increase, of the amounts in column 2 of the CPI Indexation Table at the end of section 59b; and\n\n(b) the adjustment of other amounts in line with the increase in the amounts indexed.\n\nIndexed and adjusted amounts\n\n“59a. The following Table sets out:\n\n(a) each amount that is to be indexed or adjusted under this Division; and\n\n(b) the abbreviation used in this Division for referring to that amount; and\n\n(c) the provision or provisions in which that amount is to be found.\n\n

INDEXED AND ADJUSTED AMOUNTS TABLE

column 1

column 2

column 3

column 4

item

description of amount

abbreviation

provisions in which amount specified

Maximum basic rates

1.

Maximum basic rates for service pension

pension MBR

*Service Pension Rate Calculator Where There Are No Dependent Children—point 41-B1—Table B—column 3—all amounts

*Service Pension Rate Calculator Where There Are Dependent Children—point 42-B1—Table B—column 3—all amounts

* Service Pension Rate Calculator For Blinded Veterans—point 43-B1—Table B—column 3—all amounts

*Service Pension Rate Calculator for Widows and Non-illness Separated Wives—point 44-B1—Table B—column 3—all amounts

Child amounts

2.

Service pension dependent child addon for child who has not turned 13

pension under 13 child add-on

*Service Pension Rate Calculator Where There Are Dependent Children—point 42-C3—Table C-2—column 3—item 1

\n```\n\n

INDEXED AND ADJUSTED AMOUNTS TABLE—continued

column 1

column 2

column 3

column 4

item

description of amount

abbreviation

provisions in which amount specified

*Service Pension Rate Calculator for Blinded Veterans—point 43-C3—Table C-2—column 3—item 1

3.

Service pension dependent child add-on for child who has turned 13 but has not turned 16

pension

13-15

child add-on

*Service Pension Rate Calculator Where There Are Dependent Children—point 42-C3—Table C-2—column 3—item 2

*Service Pension Rate Calculator for Blinded Veterans—point 43-C3—Table C-2—column 3—item 2

4.

Guardian allowance for service pension

pension guardian allowance

*Service Pension Rate Calculator Where There Are Dependent Children—point 42-C7

*Service Pension Rate Calculator for Blinded Veterans—point 43-C3—Table C-2—column 3—item 4

Permissible child earnings

5.

Amount that a child who is not in full-time education and is under 16 can earn from employment without ceasing to be a dependent child

permissible child earnings limit

*paragraph 5f (3) (c)

Rent assistance

6.

Maximum rent assistance for service pension

pension MRA

*Service Pension Rate Calculator Where There Are No Dependent Children—point 41-C6—Table C-l—column 4—all amounts

*Service Pension Rate Calculator Where There Are Dependent Children—point 42-D6—Table D-l—column 4—all amounts

\n```\n\n

INDEXED AND ADJUSTED AMOUNTS TABLE—continued

column 1

column 2

column 3

column 4

item

description of amount

abbreviation

provisions in which amount specified

*Service Pension Rate Calculator for Widows and Non-illness Separated Wives— point 44-C6—Table C-l—column 4—all amounts

Income free area

7.

Ordinary income free area for service pension

pension free area

*Service Pension Rate Calculator Where There Are No Dependent Children—point 41-D4—Table D-l—column 3—all amounts

*Service Pension Rate Calculator Where There Are Dependent Children—point 42-E4—Table E-l—column 3—all amounts *Service Pension Rate Calculator for Widows and Non-illness Separated Wives— point 44-D4

8.

Fringe benefits income free area

fringe benefits free area

*Fringe Benefits Income Test Calculator—point 53B-4—Table B-2— column 3

Assets value limits

9.

Assets value limit for service pension for property owner who is not a member of a couple

pension “single” property owner AVL

*Service Pension Rate Calculator Where There Are No Dependent Children— point 41-F3—Table F-l—column 3a—item 1

*Service Pension Rate Calculator Where There Are Dependent Children—point 42-G3 —Table G-l—column 3a—item 1

*Service Pension Rate Calculator for Widows

\n```\n\n

INDEXED AND ADJUSTED AMOUNTS TABLE—continued

column 1

column 2

column 3

column 4

item

description of amount

abbreviation

provisions in which amount specified

and Non-illness Separated Wives— point 44-F3—Table F-l—column 3A—item 1

10.

Assets value limit for service pension for non-property owner who is not a member of a couple

pension “single” non-property owner AVL

*Service Pension Rate Calculator Where There Are No Dependent Children— point 41-F3—Table F-l—column 3B—item 1

*Service Pension Rate Calculator Where There Are Dependent Children—point 42-G3 —Table G-l—column 3b—item 1

*Service Pension Rate Calculator for Widows and Non-illness Separated Wives— point 44-F3—Table F-l—column 3B— item 1

11.

Assets value limit for service pension for property owner who is a member of a couple

pension “partnered” property owner AVL

*Service Pension Rate Calculator Where There Are No Dependent Children— point 41-F3—Table F-l—column 3a— items 2 and 3

*Service Pension Rate Calculator Where There Are Dependent Children—point 42-G3 —Table G-l—column 3a—items 2 and 3

*Service Pension Rate Calculator for Widows and Non-illness Separated Wives— point 44-F3—Table F-l—column 3a— items 2 and 3

\n```\n\n

INDEXED AND ADJUSTED AMOUNTS TABLE—continued

column 1

column 2

column 3

column 4

item

description of amount

abbreviation

provisions in which amount specified

12.

Assets value limit for service pension for non-property owner who is a member of a couple

pension “partnered” non-property owner AVL

*Service Pension Rate Calculator Where There Are No Dependent Children— point 41-F3—Table F-l—column 3B— items 2 and 3

*Service Pension Rate Calculator Where There Are Dependent Children—point 42-G3 —Table G-l—column 3B—items 2 and 3

*Service Pension Rate Calculator for Widows and Non-illness Separated Wives— point 44-F3—Table F-l—column 3B— items 2 and 3

13.

Assets value limit for some illness separated retirement village and granny flat residents

special illness separated resident AVL

*paragraph 52s (5) (g),

paragraph 52t (3) (e),

paragraph 52u (2) (e)

14.

Assets value limit for fringe benefits for property owner who is not a member of a couple

fringe benefits “single” property owner AVL

*Fringe Benefits Assets Test Calculator—point 53C-2—Table-column 3a—item 1

15.

Assets value limit for fringe benefits for non-property owner who is not a member of a couple

fringe benefits “single” non-property owner AVL

*Fringe Benefits Assets Test Calculator—point 53C-2—Table-column 3b—item 1

16.

Assets value limit for fringe benefits for property owner who is a member of a couple

fringe benefits “partnered” property owner AVL

*Fringe Benefits Assets Test Calculator—point 53C-2—Table-column 3a—item 2

17.

Assets value limit for fringe benefits for non-property owner who is a member of a couple

fringe benefits “partnered” non-property owner AVL

*Fringe Benefits Assets Test Calculator—point 5 3C-2—Table-column 3b—item 2

\n```\n\n“Subdivision B—CPI indexation\n\nCPI Indexation Table\n\n“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:\n\n

CPI INDEXATION TABLE

column 1

column 2

column 3

column 4

column 5

column 6

item

amount

indexation day(s)

reference quarter most recent before indexation day)

base quarter

rounding base

Maximum basic rates

1.

pension MBR

(a) 20 March

(b) 20 September

(a) December

(b) June

highest June or December quarter before reference quarter but not earlier than June quarter 979)

$2.60

Permissible child earnings

2.

permissible child earnings limit

1 January

June

highest June quarter before reference quarter

$0.05

Rent assistance

3.

pension MRA

(a) 20 March

(b) 20 September

(a) December

(b) June

highest June or December quarter before reference quarter (but not earlier than June quarter 1979)

$2.60

\n```\n\n

CPI INDEXATION TABLE—continued

column I

column 2

column 3

column 4

column 5

column 6

item

amount

indexation day(s)

reference quarter (most recent before indexation day)

base quarter

rounding base

Income free areas

4.

pension free area

1 July

March

most recent March quarter before reference quarter

$26.00

5.

fringe benefits income free area

Assets value limits

(a) 20 March

(b) 20 September

(a) December

(b) June

highest June or December quarter before reference quarter (but not earlier than June quarter 1979)

$52.00

6.

pension “single” property owner AVL

13 June

December

most recent December quarter before reference quarter

$250.00

7.

pension “partnered” property owner AVL

13 June

December

most recent December quarter before reference quarter

$250.00

8.

pension “partnered” non-property owner AVL

13 June

December

most recent December quarter before reference quarter

$250.00

\n```\n\n

CPI INDEXATION TABLE—continued

column 1

column 2

column 3

column 4

column 5

column 6

item

amount

indexation day(s)

reference quarter (most recent before indexation day)

base quarter

rounding base

9.

fringe benefits “single” property owner AVL

13 June

December

most recent December quarter before reference quarter

$250.00

10.

fringe benefits “partnered” property owner AVL

13 June

December

most recent December quarter before reference quarter

$250.00

\n```\n\nHighest quarter\n\n“(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.\n\nIndexation of amounts\n\n“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.\n\n“(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:\n\n| | Method statement |\n| ------- | --------------------------------------------------------------------------------------------------- |\n| Step 1. | Use section 59d to work out the indexation factor for the amount on the indexation day. |\n| Step 2. | Work out the current figure for the amount immediately before the indexation day. |\n| Step 3. | Multiply the current figure by the indexation factor: the result is the provisional indexed amount. |\n| Step 4. | Use section 59e to round off the provisional indexed amount: the result is the indexed amount. |\n\nNote: for ‘current figure’ see subsection 5na (1).\n\nIndexation factor\n\n“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:\n\n![](image.006.png)\n\nworked out to 3 decimal places.\n\nNote: for ‘reference quarter’ and ‘base quarter’ see the CPI Indexation Table in section 59b.\n\n“(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.\n\n“(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.\n\nRounding off indexed amounts\n\n“59e. (1) If a provisional indexed amount is a multiple of the rounding base, the provisional indexed amount becomes the indexed amount.\n\nNote 1 : for ‘provisional indexed amount’ see Step 3 in subsection 59c (2).\n\nNote 2: for ‘rounding base’ see the CPI Indexation Table in section 59b.\n\n“(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.\n\n“(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.\n\n“Subdivision C—Adjustment of other rates\n\nAdjustment of pension child add-ons\n\n“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.\n\n“(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.\n\nAdjustment of pension guardian allowance\n\n“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.\n\nAdjustment of pension “single” non-property owner AVL\n\n“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:\n\n![](image.007.png)\n\npension ‘single’ property owner AVL is the current figure, as at that 13 June, for the pension ‘single’ property owner AVL;\n\npension ‘partnered’ non-property owner AVL is the current figure, as at that 13 June, for the pension ‘partnered’ non-property owner AVL;\n\npension ‘partnered’ property owner AVL is the current figure, as at that 13 June, for the pension ‘partnered’ property owner AVL.\n\nAdjustment of special illness separated resident AVL\n\n“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:\n\n![](image.008.png)\n\nAdjustment of fringe benefits AVLs\n\n“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:\n\n![](image.009.png)\n\nfringe benefits ‘single’ property owner AVL is the current figure, as at that 13 June, for the fringe benefits ‘single’ property owner AVL;\n\npension ‘partnered’ non-property owner AVL is the current figure, as at that 13 June, for the pension ‘partnered’ non-property owner AVL;\n\npension ‘partnered’ property owner AVL is the current figure, as at that 13 June, for the pension ‘partnered’ property owner AVL.\n\n“(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:\n\n![](image.010.png)\n\nfringe benefits ‘partnered’ property owner AVL is the current figure, as at that 13 June, for the fringe benefits ‘partnered’ property owner AVL;\n\npension ‘partnered’ non-property owner AVL is the current figure, as at that 13 June, for the pension ‘partnered’ non-property owner AVL;\n\npension ‘partnered’ property owner AVL is the current figure, as at that 13 June, for the pension ‘partnered’ property owner AVL.”.\n\n![](image.011.png)SCHEDULE 2 Section 19\n\n1990 BUDGET AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986\n\nSection 5 (Index):\n\nInsert the following terms in their respective appropriate alphabetical positions (determined on a letter-by-letter basis):\n\n| “Aboriginal study assistance scheme | 5f (1) |\n| ----------------------------------- | -------- |\n| available money | 5h (1) |\n| deposit money | 5h (1) |\n| entry contribution | 52m |\n| financial institution | 5q (1) |\n| granny flat interest | 5l (8a) |\n| tax file number | 5q (1)”. |\n\nSubsection 5b (2):\n\n“(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:\n\n(a) in the case of duty that was carried out in an operational area described in item 1, 2, 3, 4, 5, 6, 7 or 8 of Schedule 2 (in column 1)—to a person, or unit of the Defence Force, that is allotted for duty in the area (whether retrospectively or otherwise) by written instrument issued by the Defence Force for use by the Commission in determining a person’s eligibility for entitlements under this Act; or\n\n(b) in the case of duty that was carried out in an operational area described in item 9 or 10 of Schedule 2 (in column 1)—to a person, or unit of the Defence Force, that is allotted for duty in the area (whether retrospectively or otherwise) by written instrument signed by the Vice Chief of the Defence Force for use by the Commission in determining a person’s eligibility for entitlements under this Act; or\n\n(c) to a person, or unit of the Defence Force, that is, by written instrument signed by the Minister for Defence, taken to have been allotted for duty in an operational area described in item 4 or 8 in Schedule 2 (in column 1).”.\n\nSubsection 5f (1):\n\n“ ‘Aboriginal study assistance scheme’ means:\n\n(a) the ABSTUDY Scheme; or\n\n(b) the Aboriginal Overseas Study Assistance Scheme; or\n\n(c) a scheme prescribed for the purposes of this definition;”.\n\nSubsection 5h (1):\n\n“ ‘available money’, in relation to a person, means money that:\n\n(a) is held by or on behalf of the person; and\n\n(b) is not deposit money of the person; and\n\n(c) is not money to which Division 8b of Part III (income from loans) applies;\n\n‘deposit money’, in relation to a person, means the person’s money that is deposited in an account with a financial institution;”.\n\nAfter paragraph 5h (8) (o):\n\n“(oa) a payment by a State or Territory for the purpose of assisting people to purchase or build their own homes;”.\n\nParagraph 5h (8) (w):\n\n“or (ix) a widowed person allowance; or\n\n(x) a widow B pension;”.\n\nAfter paragraph 5h (8) (y):\n\n“(ya) a payment towards the cost of personal care support services for the person that is made under a scheme approved under section 35a of the Social Security Act;”.\n\nSubsection 5l (1):\n\n“ ‘granny flat interest’ has the meaning given by subsection (8a);”.\n\nSubparagraph 5l (4) (a) (ii):\n\nOmit the subparagraph, substitute:\n\n“(ii) the person’s right or interest in the home:\n\n(a) gives the person reasonable security of tenure in the home; and\n\n(b) is not a granny flat interest; and”.\n\nSubparagraph 5l (4) (b) (ii):\n\nOmit the subparagraph, substitute:\n\n“(ii) the person’s right or interest, or the partner’s right or interest, in the home:\n\n(a) gives the person or the person’s partner reasonable security of tenure in the home; and\n\n(b) is not a granny flat interest; and”.\n\nAfter subsection 5l (8):\n\nGranny flat interest\n\n“(8a) A person has a granny flat interest in the person’s principal home if:\n\n(a) the residence that is the person’s principal home is a private residence; and\n\n(b) the person has acquired for valuable consideration or has retained:\n\n(i) a right to accommodation for life in the residence; or\n\n(ii) a life interest in the residence.”.\n\nParagraph 5l (7) (b):\n\n“(b) any period (not exceeding 2 years) during which the person is residing in a nursing home; and\n\n(c) any period during which:\n\n(ii) the residence is, or because of paragraph (a) or (b) continues to be, the principal home of the person’s partner or non-illness separated wife; and\n\n(d) where:\n\n(ii) while paragraph (c) applies, the person’s partner or non-illness separated wife dies while a resident of a nursing home; and\n\n(iii) the person’s partner or non-illness separated wife had resided in a nursing home for less than 2 years; the period of 2 years from the beginning of that residence; and\n\n(e) where:\n\n(ii) while paragraph (c) applies, the person’s partner or non-illness separated wife dies (but not while a resident of a nursing home);\n\nthe period of 2 years from that death.\n\nNote: for ‘residing in a nursing home’, see subsection 5n (8).”.\n\nSubsection 5q (1) (definition of “account”):\n\nOmit the definition, substitute:\n\n“ ‘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;”.\n\nSubsection 5q (1) (after the definition of “determination of entitlements”):\n\n“ ‘financial institution’ means a bank, building society, credit union or other institution that receives money on deposit;”.\n\nSubsection 5q (1) (after paragraph (a) of the definition of “remote area”):\n\n“(aa) those parts of Australia referred to in Part II of that Schedule to that Act that are further than 250 kilometres by the shortest practicable surface route from the nearest urban centre with a census population (within the meaning of that Act) of 2,500 or more; and\n\n(ab) those places in Australia that, for the purposes of that Act, are treated as if they were in a part of Australia referred to in paragraph (a) or (aa); and”.\n\nSubsection 5q (1):\n\n“ ‘tax file number’ has the same meaning as in Part Va of the Income Tax Assessment Act 1936.”.\n\nSection 5s:\n\n“(2) Subsection (1) does not apply to a temporary incapacity allowance (under section 107) or a loss of earnings allowance (under section 108).”.\n\nSub-subparagraphs 7a (1) (a) (iii) (b) and (iv) (b):\n\nOmit “while the person”, substitute “as a person who”.\n\nSubparagraph 7a (1) (a) (iii):\n\nOmit “or 8”, substitute “, 8, 9 or 10”.\n\nSubparagraph 7a (1) (a) (v):\n\nOmit the subparagraph.\n\nParagraph 7a (1) (b):\n\nAfter “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”.\n\nSection 42 (Service Pension Rate Calculator Where There Are Dependent Children—after point 42-C3):\n\nFailure to reasonably pursue maintenance claim\n\n“42-C3A. If:\n\n(a) a person who has a dependent child is entitled to claim maintenance from someone else for the child; and\n\n(b) the Commission considers it reasonable that the person should take action to obtain the maintenance; and\n\n(c) the person does not take the action that the Commission considers reasonable to obtain the maintenance;\n\nthere is no dependent child add-on for that dependent child.”.\n\nSection 42 (Service Pension Rate Calculator Where There Are Dependent Children—point 42-E10—after paragraph (d)):\n\nSection 42 (Service Pension Rate Calculator Where There Are Dependent Children—point 42-E10):\n\nSection 43 (Service Pension Rate Calculator for Blinded Veterans— after point 43-C3):\n\nFailure to reasonably pursue maintenance claim\n\n“43-C3A. If:\n\n(a) a person who has a dependent child is entitled to claim maintenance from someone else for the child; and\n\n(b) the Commission considers it reasonable that the person should take action to obtain the maintenance; and\n\n(c) the person does not take the action that the Commission considers reasonable to obtain the maintenance;\n\npoint 43-C3 does not apply to the person.”.\n\nSection 44 (Service Pension Rate Calculator—point 44-D8—after paragraph (d)):\n\nSection 44 (Service Pension Rate Calculator—point 44-D8):\n\nSection 46 (Table—items 1, 2, 3 and 4):\n\nParagraph 46a (1) (a):\n\n“(a) is not income in the form of periodic payments; and”.\n\nParagraph 46a (1) (d):\n\nSubsection 46a (2):\n\nOmit “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”.\n\nParagraph 46b (1) (a):\n\nSub-subparagraph 46b (1) (b) (ii) (a):\n\nParagraph 46b (1) (c):\n\nOmit “becomes entitled to receive”, substitute “realises the investment and receives”.\n\nSubsection 46b (2):\n\nOmit “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”.\n\nAfter section 46b:\n\nRealisation of investment\n\n“46ba. For the purposes of section 46b, a person realises an investment if, and only if:\n\n(a) all or part of the amount of the investment is withdrawn; or\n\n(b) all or part of the return on the investment is paid to another person; or\n\n(c) the investment matures; or\n\n(d) the investment is assigned by the person to another person; or\n\n(e) the investment is disposed of by the person otherwise than in the way referred to in paragraph (d).\n\nReceiving by way of a return\n\n“46bb. For the purposes of section 46b:\n\n(a) where a person assigns or otherwise disposes of an investment, the person is taken to receive by way of a return on the investment the amount of the return at the date of the disposal; and\n\n(b) where a person realises an investment in circumstances where the return on the investment is paid to another person, the return is taken to be received by the person realising the investment; and\n\n(c) where a person’s investment matures, the person is taken to receive by way of return on the investment the amount of the return at the date of the maturity.”.\n\nSub-subparagraph 46c (b) (ii) (a):\n\nSection 46c:\n\nAfter “made” (wherever occurring) insert “or acquired”.\n\nSection 46d:\n\n(a) After “makes” insert “or acquires”.\n\n(b) After “made” insert “or acquired”.\n\nSubsection 46g (2):\n\n(a) After “making” insert “or acquiring”.\n\n(b) After “make” insert “or acquire”.\n\nSection 46j:\n\n(a) After “made” insert “or acquired”.\n\n(b) Add at the end:\n\n“(2) For the purposes of subsection (1), a person realises an investment if, any only if:\n\n(a) all or part of the amount invested is withdrawn; or\n\n(b) all or part of the return on the investment is paid to another person; or\n\n(c) the investment matures; or\n\n(d) the investment is assigned by the person to another person; or\n\n(e) the investment is disposed of by the person otherwise than in the way referred to in paragraph (d).\n\n“(3) For the purposes of subsection (1):\n\n(a) where a person assigns or otherwise disposes of an investment, the person is taken to receive by way of a return on the investment the amount of the return at the date of the disposal; and\n\n(b) where a person realises an investment in circumstances where the return on the investment is paid to another person, the return is taken to be received by the person realising the investment; and\n\n(c) where a person’s investment matures, the person is taken to receive by way of return on the investment the amount of the return at the date of the maturity.”.\n\nParagraph 46k (1) (a):\n\nSubsection 46k (1):\n\nAfter “made” (last occurring) insert “, or acquired, by the person”.\n\nParagraph 46k (2) (b):\n\nSection 46l:\n\nAfter “makes” insert “or acquires”.\n\nParagraph 46l (a):\n\nAfter “made” insert “or acquired, by the person”.\n\nSubsection 46p (1):\n\nAfter “made” (second occurring) insert “or acquired”.\n\nSubsection 46q (2):\n\n(a) After “making” insert “or acquiring”.\n\n(b) After “make” insert “or acquire”.\n\nAfter Division 8 of Part III:\n\n“Division 8A—Interest attributed to money not invested or invested at a low rate of interest\n\nApplication of this Division and Division 8\n\n“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.\n\nBasic concept—income money and interest received\n\n“46w. (1) For the purposes of this Division, a person has income money at a particular time if the sum of:\n\n(a) the person’s available money; and\n\n(b) the person’s deposit money;\n\nat that time is greater than $2,000.\n\n“(2) This is how to work out which money forms part of the person’s income money:\n\n| | Method statement |\n| ------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------- |\n| Step 1. | Start with the amount of $2,000 that is referred to in subsection (1). |\n| Step 2. | Set off against this amount any available money of the person. |\n| Step 3. | Set off against the remainder any deposit money of the person that does not attract interest. |\n| Step 4. | Set off against the remainder any deposit money of the person that does attract interest: this money is to be set off in ascending order of interest rate. |\n| Step 5. | Any available money or deposit money that can be set off under Steps 2 to 4 is not income money of the person. |\n| Step 6. | Any available money or deposit money that can not be set off under Steps 2 to 4 is income money of the person at that time. |\n\n“(3) For the purposes of subsection (2):\n\n(a) if available money or deposit money is to be set off against an amount, only so much of the money as does not exceed the amount can be set off against the amount; and\n\n(b) if the person does not have money of a particular kind, the amount to be set off is nil and the amount left after the setting off is called the ‘remainder’.\n\n“(4) For the purposes of this Division, if:\n\n(a) interest is paid on deposit money; and\n\n(b) the interest is received or accounted for less frequently than the anniversary of the making of the deposit;\n\ninterest on the deposit money is taken to be received by the depositer on each anniversary of the making of the deposit.\n\nIncome money that does not attract interest\n\n“46x. (1) If:\n\n(a) money is income money of a person; and\n\n(b) interest is not paid on that money;\n\nthe person is taken to receive interest on that money at the assumed rate.\n\nNote: for ‘assumed rate of interest’ see section 46za.\n\n“(2) Subsection (1) has effect subject to section 46z.\n\nIncome money that attracts low interest\n\n“46y. (1) If:\n\n(a) money is income money of a person; and\n\n(b) the rate per year at which interest is paid on the money is less than the assumed rate;\n\nthe person is taken to receive interest on that money at the assumed rate.\n\nNote: for ‘assumed rate of interest’ see section 46ZA.\n\n“(2) Subsection (1) has effect subject to section 46z.\n\nCertain income money to be disregarded\n\n“46z. (1) The Minister may determine that this Division does not apply to:\n\n(a) specified income money of a person; or\n\n(b) specified income money of a class of persons.\n\n“(2) A determination under subsection (1) is to be made by notice in writing.\n\n(a) a person has income money; and\n\n(b) a determination under subsection (1) applies to the income money;\n\nthe income money is to be disregarded for the purposes of applying this Division to the person.\n\nAssumed rate of interest on income money\n\n“46za. The assumed rate of interest is:\n\n(b) if a lower rate is determined under subsection 1099F (2) of the Social Security Act—that lower rate.\n\n“Division 8b—Interest attributed to money on loan\n\nApplication of this Division\n\n“46zb. (1) This Division applies to loans by a person entered into, or acquired, by the person after 21 August 1990.\n\n“(2) If this Division applies to a person’s loan, Division 8 does not apply to the return on the loan.\n\nBasic concepts—loan and interest\n\n“46zc. For the purposes of this Division:\n\n(a) there is a loan by a person if, but not only if, the person has:\n\n(i) debentures; or\n\n(ii) bonds; or\n\n(iii) other securities; and\n\n(b) there is no loan by a person:\n\n(i) because the person has money in an account with a financial institution; or\n\n(ii) because of any entry contribution of the person; and\n\n(c) the interest on a loan includes any payment for the use of the money that is lent; and\n\n(d) if the interest that is paid on a loan is received or accounted for less frequently than each anniversary of the making of the loan, interest on the loan is taken to be received by the lender on each anniversary of the making of the loan.\n\nLoans that do not attract interest\n\n“46zd. (1) If:\n\n(b) the person is not paid interest on the loan;\n\nthe person is taken to receive on each anniversary of the making of the loan interest on the loan at the assumed loan rate.\n\nNote: for ‘assumed loan rate’ see section 46zg.\n\n“(2) Subsection (1) has effect subject to section 46zf.\n\nLoans that attract a low rate of interest\n\n“46ze. (1) If:\n\n(b) the person is paid interest on the loan; and\n\n(c) the rate of interest is less than the assumed loan rate;\n\nthe person is taken to receive interest on the loan at the assumed loan rate.\n\nNote: for ‘assumed loan rate’ see section 46zg.\n\n“(2) Subsection (1) has effect subject to section 46zf.\n\nCertain loans to be disregarded\n\n“46zf. (1) The Minister may determine that this Division does not apply to:\n\n(a) a specified loan; or\n\n(b) a specified class of loans.\n\n“(2) A determination under subsection (1) is to be made by notice in writing.\n\n(b) a determination under subsection (1) applies to the loan;\n\nthe loan is to be disregarded for the purposes of applying this Division to the person.\n\nAssumed loan rate of interest\n\n“46zg. The assumed loan rate is:\n\n(b) if a lower rate is determined under subsection 1099l (2) of the Social Security Act—that lower rate.\n\n“Division 8C—Income attributed to deprived assets\n\nApplication of this Division\n\n“46zh. This Division applies to dispositions of assets that occur after 21 August 1990.\n\nIncome attributed to deprived assets\n\n“46zj. If:\n\n(a) a person disposes of an asset; and\n\n(b) the value of the asset is included in the value of the person’s assets under section 52g or 52h;\n\nthe following provisions have effect:\n\n(c) the person is taken to obtain income from the asset; and\n\n(d) the income is taken to be:\n\n(i) interest on the value of the asset at the assumed property rate; or\n\n(ii) the amount calculated in accordance with subsection 48d (3);\n\nwhichever is the higher.\n\nNote: for ‘assumed property rate’ see section 46zk.\n\nAssumed property rate\n\n“46zk. The assumed property rate is:\n\n(b) if a lower rate is determined under subsection 1099p (2) of the Social Security Act—that lower rate.”.\n\nSubsection 48 (2):\n\n“(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.\n\nNote: for ‘granny flat interest’ see subsection 5l (8a).”.\n\nSection 49a:\n\nEarnings credit account\n\n“49a. (1) If:\n\n(a) a person is receiving a service pension (other than a carer service pension); and\n\n(b) either:\n\n(i) the person is not a member of a couple; or (ii) the person is a member of a couple and the person’s partner is receiving neither a service pension (other than a carer service pension) nor a social security pension (other than a carer pension);\n\nthe person has an individual earnings credit account.\n\n(a) a person is receiving a service pension (other than a carer pension); and\n\n(b) the person’s partner is receiving a service pension (other than a carer service pension) or a social security pension (other than a carer pension);\n\nthe person and the partner have a joint earnings credit account.\n\n“(3) If at a particular time:\n\n(a) subsection (1) ceases to apply to 2 people; and\n\n(b) subsection (2) applies to create a joint earnings credit account for them;\n\nthe balance of the joint earnings credit account at that time is the sum of the balances of their individual accounts immediately before that time.\n\n“(4) If at a particular time:\n\n(a) subsection (2) ceases to apply to 2 people; and\n\n(b) subsection (1) applies to create an individual earnings credit account for either or both of them;\n\nthe 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.”.\n\nSection 49b (Earnings Credit Account Balance Calculator—point 49b\\-A1):\n\nOmit:\n\nAccount balance calculation\n\n“49b\\-A1\\. This is how to work out the balance of the person’s earnings credit account:”;\n\nsubstitute:\n\nIndividual account balance calculation\n\n“49b\\-A1\\. If the person has an individual earnings credit account, this is how to work out the balance of the account:”.\n\nSection 49b (Earnings Credit Account Balance Calculator—points 49b\\-A2, 49b\\-A3 and 49b\\-A4):\n\nOmit the points, substitute:\n\nIndividual account balance not to exceed $1,000\n\n“49b-A2\\. The balance of an individual account is not to exceed $1,000.\n\nJoint account balance calculation\n\n“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:\n\n| | Method statement |\n| ------- | --------------------------------------------------------------------------------------------------------------------------------------- |\n| Step 1. | Work out the opening balance of the account using MODULE B below. |\n| Step 2. | If the person or the person’s partner has an earnings credit, add the amount of the earnings credit to the account: see MODULE C below. |\n| Step 3. | If the person or the person’s partner draws on the account, deduct from the account the amount drawn: see MODULE D below. |\n\nJoint account balance not to exceed $2,000\n\n“49b-A4\\. The balance of a joint account is not to exceed $2,000.\n\nBalance not to be in debit\n\n“49b-A5\\. The balance of an earnings credit account is not to fall below nil.\n\nEC accounting periods\n\n“49b-A6\\. The earnings credit accounting periods are:\n\n(a) the fortnight that starts on the first pension payday on or after 1 July 1991; and\n\n(b) the succeeding fortnights.”.\n\nSection 49b (Earnings Credit Account Balance Calculator—point 49b-B1):\n\nOmit “is nil.”, substitute:\n\n“is:\n\n(c) if the person has an individual earnings credit account—nil; or\n\n(d) if the person has a joint earnings credit account with the person’s partner and this point also applies to the partner—nil; or\n\n(e) if the person has a joint earnings credit account with the person’s partner and this point does not apply to the partner— the balance of the partner’s individual earnings credit account immediately before the person commenced to receive the pension.”.\n\nSection 49b (Earnings Credit Account Balance Calculator—point 49b-B2):\n\nOmit “is the amount of the person’s earnings credit immediately before 1 July 1991 under section 49b.”, substitute:\n\n“is:\n\n(a) if the person has an individual earnings credit account—the amount of the person’s earnings credit immediately before 1 July 1991 under section 49b; or\n\n(b) if the person has a joint earnings credit account with the person’s partner—the sum of:\n\n(i) the amount of the person’s earnings credit immediately before 1 July 1991 under section 49b; and\n\n(ii) the amount of the partner’s earnings credit immediately before 1 July 1991 under section 49b or section 12a of the Social Security Act 1947.”.\n\nSection 49b (Earnings Credit Account Balance Calculator—point 49b\\-C1):\n\nOmit “The person”, substitute “A person”.\n\nSection 49b (Earnings Credit Account Balance Calculator—point 49b\\-D1):\n\nOmit “The person”, substitute “A person”.\n\nParagraphs 52 (1) (a) and (b):\n\nOmit the paragraphs, substitute:\n\n“(a) if the person is not a member of a couple—the value of any right or interest of the person in the person’s principal home that:\n\n(i) is a right or interest that gives the person reasonable security of tenure in the home; and\n\n(ii) is not a granny flat interest in the home;\n\n(b) if the person is a member of a couple—the value of any right or interest of the person in one residence that is the principal home of the person, of the person’s partner or of both of them that:\n\n(i) is a right or interest that gives the person or the person’s partner reasonable security of tenure in the home; and\n\n(ii) is not a granny flat interest in the home;”.\n\nParagraph 52 (1) (fa):\n\n“(fa) if:\n\n(i) the person has a granny flat interest in the person’s principal home; and\n\n(ii) the granny flat interest gives the person reasonable security of tenure in the home; and\n\n(iii) the person acquired or retained the granny flat interest before 22 August 1990;\n\nthe value of the granny flat interest;”.\n\nSubsection 52e (2):\n\n“(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.\n\nNote: for ‘granny flat interest’ see subsection 5l (8a).”.\n\nSubsection 52g (1):\n\nOmit “1 June 1984”, substitute “1 March 1986”.\n\nSubsection 52g (1):\n\nInsert “for the period of 5 years that starts on the day on which the disposition takes place” after “assets” (fourth occurring).\n\nParagraph 52g (1) (b):\n\nOmit “$2,000”, substitute “$10,000”.\n\nParagraph 52g (1) (c):\n\nOmit “$2,000”, substitute “$10,000”.\n\nSubsection 52g (2):\n\n(a) a person disposes of an asset before 1 March 1991 ; and\n\n(b) an amount (in this subsection called the ‘relevant amount’) is included in the value of the person’s assets under subsection (1) because of the disposition;\n\nthe 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.\n\nNote 1: for ‘disposes of an asset’ see section 52e.\n\nNote 2: for ‘amount of disposition’ see section 52f.”.\n\nSubsection 52h (1):\n\nOmit “1 June 1984”, substitute “1 March 1986”.\n\nParagraph 52h (1) (b):\n\nParagraph 52h (1) (c):\n\nInsert “for the period of 5 years that starts on the day on which the disposition takes effect” after “assets” (first occurring).\n\nSubparagraph 52h (1) (c) (i):\n\nParagraph 52h (1) (d):\n\nInsert “for the period of 5 years that starts on the day on which the disposition takes place” after “assets” (first occurring).\n\nSubparagraph 52h (1) (d) (i):\n\nSubsection 52h (1) (Notes 1 and 2):\n\nOmit the Notes.\n\nSubsection 52h (2):\n\n(a) a person disposes of an asset before 1 March 1991 ; and\n\n(b) an amount (in this subsection called the ‘relevant amount’) is included in the value of the person’s or the person’s partner’s assets under subsection (1) because of the disposition;\n\nthe 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.\n\nNote 1: for ‘disposes of an asset’ see section 52E.\n\nNote 2: for ‘amount of disposition’ see section 52F.”.\n\nHeading to Subdivision C of Division 14 of Part III:\n\nAdd at the end “and granny flats”.\n\nSection 52k:\n\nRetirement village and granny flat residents\n\n“52k. For the purposes of this Subdivision:\n\n(a) a person is a retirement village resident if the person’s principal home is in a retirement village; and\n\n(b) a person is a granny flat resident if the person has a granny flat interest in the person’s principal home.\n\nApplication of Subdivision to granny flat residents\n\n“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.”.\n\nSection 52l:\n\nSubsection 52m (1):\n\nParagraph 52m (1) (a):\n\nParagraph 52m (1) (b):\n\nParagraph 52m (1) (c):\n\nParagraph 52m (1) (d):\n\nParagraph 52m (1) (e):\n\nParagraph 52m (1) (f):\n\nAfter subsection 52m (1):\n\n“(1a) For the purposes of subsection (1):\n\n(a) the total amount paid to obtain for a person his or her current right to live in a granny flat is the amount equal to the value of the person’s granny flat interest; and\n\n(b) the value of a person’s granny flat interest is:\n\n(i) unless subparagraph (ii) applies—the amount paid, or agreed to be paid, for the interest; or\n\n(ii) if the Secretary considers that, for any special reason in any particular case, that value should be another amount—that other amount.”.\n\nAfter subsection 52n (2):\n\nGranny flat residence\n\n“(2a) A granny flat resident’s extra allowable amount is:\n\n(a) if the resident is not a member of a couple—the amount that, as at the time when the resident becomes entitled to the granny flat interest, is the difference between the pension ‘single’ property owner AVL and the pension ‘single’ non-property owner AVL; or\n\n(b) if the resident is a member of an illness separated couple—the amount that, as at the time when the resident becomes entitled to the granny flat interest, is the difference between the pension ‘single’ property owner AVL and the pension ‘single’ non-property owner AVL; or\n\n(c) in any other case—the amount that, as at the time when the resident becomes entitled to the granny flat interest, is the difference between the pension ‘partnered’ property owner AVL and the pension ‘partnered’ non-property owner AVL.”.\n\nSubsection 52q (1):\n\nParagraph 52q (2) (a):\n\nInsert “or granny flat resident” after “retirement village”.\n\nParagraph 52q (3) (a):\n\nSubsection 52r (1):\n\nParagraph 52r (2) (a):\n\nParagraph 52r (3) (a):\n\nSubsection 52s (1):\n\nParagraph 52s (1) (b):\n\nParagraph 52s (2) (a):\n\nParagraph 52s (3) (a):\n\nParagraph 52s (5) (a):\n\nSubsection 52t (1):\n\nParagraph 52t (1) (b):\n\nParagraph 52t (2) (a):\n\nParagraph 52t (3) (a):\n\nSubsection 52u (1):\n\nParagraph 52u (1) (b):\n\nParagraph 52u (2) (a):\n\nParagraph 52u (4) (a):\n\nSubsection 52v (1):\n\nParagraph 52v (1) (b):\n\nParagraph 52v (2) (a):\n\nParagraph 52v (2) (d):\n\nParagraph 52v (2) (e):\n\nParagraph 52v (3) (a):\n\nParagraph 52v (3) (e):\n\nSubsection 52v (1):\n\nParagraph 52w (1) (b):\n\nSubsection 52w (2):\n\nSubparagraph 52w (2) (c) (ii):\n\nSubsection 52x (1):\n\nParagraph 52x (1) (b):\n\nParagraph 52x (2) (a):\n\nParagraph 52x (3) (a):\n\nSection 53b (Fringe Benefits Income Test Calculator—point 53b\\-9— after paragraph (d)):\n\nSection 53b (Fringe Benefits Income Test Calculator—point 53b\\-9):\n\nParagraph 54 (4) (c):\n\nAfter “period within which” insert “, and the manner in which”.\n\nParagraph 54a (3) (c):\n\n![](image.012.png)After “period within which” insert “, and the manner in which”.\n\n","sortOrder":11},{"sectionNumber":"Sch 3","sectionType":"schedule","heading":"Section 20","content":"SCHEDULE 3 Section 20\n\nCONSEQUENTIAL AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986\n\nParagraph 10 (1) (a):\n\nOmit “wife”, substitute “partner”.\n\nSubparagraph 10 (2) (a) (i):\n\nOmit “husband”, substitute “partner”.\n\nSubparagraphs 11 (1) (a) (i), (ii) and (iii):\n\nOmit the subparagraphs, substitute:\n\n“(i) the partner of the veteran;\n\n(ii) a non-illness separated wife of the veteran;\n\n(iii) a widow of the veteran;\n\n(iv) a child of the veteran;”.\n\nAfter subsection 11 (1):\n\n“Note: a veteran may have more than one dependant of the kind referred to in subparagraphs (i) to (iii) at the same time.”.\n\nSubsection 13 (11):\n\nOmit 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”.\n\nParagraph 30 (2) (a):\n\nOmit “if the spouse of the deceased veteran is also dead”, substitute “if there is no widow or widower of the veteran”.\n\nParagraph 30 (2) (b):\n\nOmit “if the spouse of the deceased veteran is alive”, substitute “if there is a widow or widower of the veteran”.\n\nSubsection 30 (4):\n\nParagraph 74 (12) (a):\n\nOmit “spouse”, substitute “widow”.\n\nParagraph 80 (2) (a):\n\nParagraph 80 (2) (c):\n\nParagraph 81 (2) (b):\n\nOmit “, not being a service pension, a wife’s service pension or a carer’s service pension”, substitute “(other than a service pension)”.\n\nSections 82 and 83:\n\nRepeal the sections.\n\nParagraph 85 (4) (aa):\n\n(a) Omit “36 (a) (i)”, substitute “7a (1) (a) (i)”.\n\n(b) Omit “35 (1)”, substitute “5b (1)”.\n\nSubsection 85 (5):\n\n“(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.\n\nNote: section 53d refers to veterans receiving age or invalidity service pension who satisfy the fringe benefits tests in Division 15 of Part III.”.\n\nSubsections 85 (5a) and (6):\n\nParagraph 85 (7) (b):\n\nOmit “or a wife’s service pension”, substitute “(other than a carer service pension)”.\n\nParagraph 85 (7) (d):\n\nOmit “or wife’s service pension”.\n\nSubsection 85 (8):\n\nOmit “, or wife’s service pension,”.\n\nParagraph 86 (5) (a):\n\nOmit “(6),”.\n\nSection 95:\n\nRepeal the section.\n\nSubsection 98 (4a):\n\nOmit “carer’s service pension under section 41”, substitute “carer service pension under Division 6 of Part III”.\n\nParagraph 98 (4a) (b):\n\n“(b) would be payable, but for action taken:\n\n(i) under section 56e (cancellation or suspension) because the person has contravened a provision of this Act (other than subsection 54 (6) or 128 (4)); or\n\n(ii) under subsection 205 (2) (deductions to recover overpayments);\n\nin relation to a carer service pension;”.\n\nSubsection 98a (1):\n\n“(1) This section applies where a veteran dies if the veteran was, immediately before his or her death:\n\n(a) a member of a couple; and\n\n(b) receiving a disability pension.”.\n\nSubsection 98a (6) (definitions of “married veteran”, “widow” and “widower”):\n\nOmit the definitions.\n\nParagraph 113 (1) (c):\n\nSubsection 115 (5):\n\n(a) Omit “60 and 62” (twice occurring), substitute “57d, 57e and 57f”.\n\n(b) Omit “59” (twice occurring), substitute “Division 19 of Part III”.\n\n(c) Omit “60”, substitute “57f”.\n\nSection 118a (subparagraphs (a) (i) and (ii) of the definition of “eligible pensioner”):\n\nOmit the subparagraphs, substitute:\n\n“(i) who is receiving a service pension; and\n\n(ii) whose rate of service pension is not reduced because of:\n\n(a) Modules D, E or F of the Service Pension Rate Calculator at the end of section 41; or\n\n(b) Modules E, F or G of the Service Pension Rate Calculator at the end of section 42; or\n\n(c) Modules C or D of the Service Pension Rate Calculator at the end of section 43; or\n\n(d) Modules D, E or F of the Service Pension Rate Calculator at the end of section 44; or”.\n\nSection 118a (definition of “special wife service pensioner”):\n\nOmit the definition, substitute:\n\n“ ‘special wife service pensioner’ means a woman who either:\n\n(a) is:\n\n(i) a non-illness separated wife who is receiving wife service pension; and\n\n(ii) is neither the partner of an eligible pensioner within the meaning of section 118a of this Act nor the partner of an eligible 1947 Act pensioner or eligible 1991 Act pensioner within the meaning of section 19a of the Social Security Act; or\n\n(b) is:\n\n(i) receiving wife service pension because of paragraph 38 (1) (c) or (d); and\n\n(ii) is neither the partner of an eligible pensioner within the meaning of section 118a of this Act nor the partner of an eligible 1947 Act pensioner or eligible 1991 Act pensioner within the meaning of section 19a of the Social Security Act;”.\n\nSubsection 118d (2):\n\n“(2) The rate of pharmaceutical supplement for a person:\n\n(b) who is not a special wife service pensioner; is $2.50 per fortnight.\n\nNote: for ‘partnered (partner receiving pension or benefit)’ see paragraph 5e (5) (c). ‘.\n\nSubsection 118f (2):\n\n“(2) The amount of advance pharmaceutical supplement for a person:\n\n(b) who is not a special wife service pensioner;\n\nis $25 per fortnight.\n\nSection 118g:\n\nOmit “spouse” (wherever occurring), substitute “partner or non-illness separated wife”.\n\nSubsection 118g (4):\n\n“(4) The amount of a further advance pharmaceutical supplement for a person:\n\n(b) who is not a special wife service pensioner;\n\nis $17.50 per fortnight.\n\nSection 118h:\n\nOmit “spouse” (wherever occurring), substitute “partner or non-illness separated wife”.\n\nSubsection 118h (5):\n\nOmit “Where paragraph 47 (1) (b) applies to a person (other than a special wife service pensioner),”, substitute “Where a person:\n\n(a) is partnered (partner receiving pension or benefit); and\n\n(b) is not a special wife service pensioner;”.\n\nSubparagraph 118j (3) (b) (ii):\n\nParagraph 118ja (a):\n\n“(a) a service pension; or”.\n\nSubsection 118jb (2):\n\n“(2) The rate of pharmaceutical allowance for a person:\n\n(b) who is not a special wife service pensioner; is $2.50 per fortnight.\n\nSubparagraph 118k (2) (b) (ii):\n\nSubsection 118m (1):\n\nOmit all words from and including “ ‘X’ means”, substitute: “ ‘X’ means:\n\n(a) except where paragraph (b) applies—5; or\n\n(b) in the case of a person (other than a special wife service pensioner) who is partnered (partner receiving pension or benefit)—2.5.”.\n\nSubsections 118n (1) and (2):\n\nParagraph 119 (1) (b):\n\nOmit the paragraph, substitute the following:\n\n“(b) a review, under Division 19 of Part III, of a decision of the\n\nCommission with respect to a service pension or qualifying\n\nservice;”.\n\nParagraph 119 (1) (e):\n\nSubsection 119 (2) (paragraph (a) of the definition of “application”):\n\nSubsection 119 (2) (paragraph (b) of the definition of “claim”):\n\n“(b) a claim for service pension or other benefit under Part III; or\n\n(c) a claim for a qualifying service determination under Part III.”.\n\nSubsections 121 (1a):\n\nOmit “, 21 (2) or 46 (3)”, substitute “or 21 (2)”.\n\nSubsections 121 (2), (3) and (4):\n\nSubsection 123 (1) (paragraph (c) of the definition of “child”):\n\nSubsection 123 (1) (definition of “de facto spouse”):\n\nSubsection 123 (1) (definition of “spouse”):\n\nSubsection 123 (2):\n\nOmit “5 (1)”, substitute “5f (1)”.\n\nParagraph 123d (1) (a):\n\n(a) Omit “spouse”, substitute “widow or widower”.\n\n(b) Omit “spouses”, substitute “widows or widowers”.\n\nParagraphs 123D (1) (b), (c) and (d):\n\nOmit “spouse”, substitute “widow or widower”.\n\nSubsections 124 (1) and (2):\n\nOmit “, III”.\n\nParagraphs 124 (4) (a) and (5) (a):\n\nOmit “, III”.\n\nParagraph 124 (6) (a):\n\nSubsection 125 (2):\n\nSubsection 126 (4):\n\n(a) Omit “or 43”, substitute “, 35b, 36d, 37d, 38d or 39d”.\n\n(b) Omit “section 59”, substitute “Division 19 of Part III, section”.\n\nSubsection 126a (2):\n\nOmit “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)”.\n\nSubsections 128a (2) and (3):\n\nOmit “person’s spouse’s tax file number”, substitute “tax file number of the person’s partner or non-illness separated wife”.\n\nSubsection 128B (1):\n\nSubsections 132 (3) and (4):\n\nOmit “or 60”, substitute “or 57f”.\n\nSubsection 132 (12):\n\n(a) Omit “or 43”, substitute “, 35b, 36d, 37d, 38d or 39d”.\n\n(b) Omit “section 59”, substitute “Division 19 of Part III, section”.\n\nSubsection 174 (2):\n\n“(2) In this Part:\n\n‘veteran’ includes:\n\n(a) a Commonwealth veteran; and\n\n(b) an allied veteran; and\n\n(c) an Australian mariner; and\n\n(d) an allied mariner; and\n\n(e) a member of the Forces, or a member of a Peacekeeping Force, as defined by subsection 68 (1).”.\n\nSubsection 175 (2):\n\n“(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.\n\n“(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.\n\nNote: section 29 of the Administrative Appeals Tribunal Act 1975 deals with the manner of applying for review.”.\n\nParagraph 176 (3) (a):\n\nOmit “62”, substitute “57e”.\n\nSubsection 176 (8):\n\nOmit all words from and including “under sub-section 58 (1)”, substitute:\n\n“(a) to cancel or suspend a service pension under section 56e; or\n\n(b) to reduce the rate of a service pension under section 56d; or\n\n(c) to increase the rate of a service pension under section 56c; and the decision was one that was:\n\n(d) affirmed by the Commission under section 57b; or\n\n(e) made by the Commission in substitution for a decision set aside under section 57b;\n\nthe Administrative Appeals Tribunal need not make another decision in substitution for the decision set aside by it.”.\n\nSubsection 177 (5):\n\nOmit “59” (3 times occurring), substitute “57b”.\n\nSubsection 189 (5) (definition of “pension”):\n\nOmit “, a wife’s service pension, a carer’s service pension,”.\n\nSubsection 198 (1) (definition of “relevant amount”):\n\nSubsection 198 (1) (paragraphs (f), (g) and (h) of the definition of “relevant rate”):\n\nOmit the paragraphs.\n\nSubsection 198 (1) (definition of “relevant year”):\n\nSubsection 198 (1) (definition of “rent assistance amount”):\n\nParagraphs 198 (4) (aa) and (c):\n\nOmit the paragraphs.\n\nSubsection 198 (4a):\n\nSubsection 198 (5):\n\nOmit “or (4a)”.\n\nSubsections 198 (5b), (5c), (5e) and (5f):\n\nSubsections 198 (6), (7), (8) and (9):\n\nSubsection 198 (10):\n\n(a) Omit “relevant year”.\n\n(b) Omit “or year” (wherever occurring).\n\nSections 198b and 198c:\n\nRepeal the sections.\n\nSubsection 201 (5) (definition of “veteran”):\n\nOmit the definition, substitute: “ ‘veteran’ includes:\n\n(a) a Commonwealth veteran; and\n\n(b) an allied veteran; and\n\n(c) an Australian mariner; and\n\n(d) an allied mariner; and\n\n(e) a member of the Forces, or a member of a Peacekeeping Force, as defined by subsection 68 (1).”.\n\nSection 207:\n\n![](image.013.png)Repeal the section.\n\n","sortOrder":12},{"sectionNumber":"Sch 4","sectionType":"schedule","heading":"Section 21","content":"SCHEDULE 4 Section 21\n\nCONSEQUENTIAL AMENDMENTS OF OTHER ACTS\n\nDefence Service Homes Act 1918\n\nSubsection 4 (1) (paragraphs (ga) and (gb) of the definition of “Australian Soldier”):\n\nOmit “5 (12)”, substitute “5b (2)”.\n\nDisability Services Act 1986\n\nParagraph 22 (4) (b):\n\nHealth Insurance Act 1973\n\nParagraph 3 (10) (b):\n\nNational Health Act 1953\n\nSubsection 4 (1) (paragraph (b) of the definition of “pensioner”):\n\n“(b) a person:\n\n(i) who is receiving a service pension under Part III of the Veterans’ Entitlements Act 1986; and\n\n(ii) who is eligible for fringe benefits under section 53a of that Act;”.\n\nParagraph 4 (3) (b):\n\nParagraph 84 (1) (paragraph (b) of the definition of “concessional beneficiary”):\n\nPublic Service Act 1922\n\nSubsection 7 (1) (paragraphs (e) and (f) of the definition of “Returned Soldier”):\n\nOmit “5 (12)”, substitute “5b (2)”.\n\nSeamen’s War Pensions and Allowances Act 1940\n\nSubsection 21 (11):\n\nOmit “carer’s service pension under section 41”, substitute “carer service pension under Part III”.\n\nParagraph 21(11) (b):\n\n“(b) would be payable, but for action taken:\n\n(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;\n\nin relation to a carer service pension;”.\n\nSubsection 24b (6) (definition of “married Australian mariner”):\n\nOmit “married veteran”, substitute “veteran who is a member of a couple”.\n\nSubsection 24b (6) (definitions of “widow” and “widower”):\n\nOmit “Part III”, substitute “section 5e”.\n\nParagraph 32aa (1) (a):\n\nOmit “person’s spouse’s tax file number”, substitute “tax file number of the person’s partner or non-illness separated wife”.\n\nSubsection 32ab (1):\n\nSocial Security Act 1991\n\nSubparagraph 8 (8) (y) (viii):\n\nOmit “Division 5a of.\n\nSubsection 23 (1) (paragraph (f) of the definition of “dependent child add-on”):\n\n“(f) Service Pension Rate Calculator Where There Are Dependent Children (point 42-C3) or Service Pension Rate Calculator For Blinded Veterans (point 43-C3);”.\n\nSubsection 23 (1) (paragraph (f) of the definition of “guardian allowance”):\n\n“(f) Service Pension Rate Calculator Where There Are Dependent Children (point 42-C5);”.\n\nSubsection 23 (1) (paragraph (b) of the definition of “service pension”):\n\n“(b) an invalidity service pension under Part III of the Veterans’ Entitlements Act; or”.\n\nSection 1064 (Pension Rate Calculator A—point 1064-C2—Note 3):\n\nOmit “invalid”, Substitute “invalidity”.\n\nSection 1064 (Pension Rate Calculator A—point 1064-C5):\n\nOmit “paragraph 47 (3) (b) of the VEA”, substitute:\n\n(a) Service Pension Rate Calculator Where There Are Dependent Children (point 42-C3);\n\n(b) Service Pension Rate Calculator For Blinded Veterans (point 43-C3)”.\n\nSection 1064 (Pension Rate Calculator A—point 1064-J2—\n\nsubparagraph (b) (ii)):\n\nOmit “paragraph 47 (3) (a), (b) or (c) of the VEA”, substitute:\n\n(A) Service Pension Rate Calculator Where There Are Dependent Children (point 42-C3);\n\n(B) Service Pension Rate Calculator For Blinded Veterans (point 43-C3)”.\n\nSection 1065 (Pension Rate Calculator B—point 1065-C1—Note 3):\n\nOmit “invalid”, Substitute “invalidity”.\n\nSection 1065 (Pension Rate Calculator B—point 1065-C5):\n\nOmit “paragraph 47 (3) (b) of the Veterans’ Entitlements Act”,\n\nsubstitute:\n\n(a) Service Pension Rate Calculator Where There Are Dependent Children (point 42-C3);\n\n(b) Service Pension Rate Calculator For Blinded Veterans (point 43-C3)”.’\n\nSection 1065 (Pension Rate Calculator B—point 1065-F2—\n\nsubparagraph (b) (ii):\n\nOmit “paragraph 47 (3) (a), (b) or (c) of the VEA”, substitute:\n\n(A) Service Pension Rate Calculator Where There Are Dependent Children (point 42-C3);\n\n(B) Service Pension Rate Calculator For Blinded Veterans (point 43-C3)”.\n\nSection 1067 (Benefit Rate Calculator A—point 1067-K4—paragraph (b)):\n\nOmit “section 57 of the VEA”, substitute:\n\n(i) Service Pension Rate Calculator Where There Are No Dependent Children (point 41\\-Gl);\n\n(ii) Service Pension Rate Calculator Where There Are Dependent Children (point 42-H1);\n\n(iii) Service Pension Rate Calculator For Blinded Veterans (point 43-E1);\n\n(iv) Service Pension Rate Calculator For Widows And Non-Illness Separated Wives (point 44-G1)”.\n\nSection 1068 (Benefit Rate Calculator B—point 1068-J4—paragraph (b)):\n\nOmit “section 57 of the VEA”, substitute:\n\n(i) Service Pension Rate Calculator Where There Are No Dependent Children (point 41\\-Gl);\n\n(ii) Service Pension Rate Calculator Where There Are Dependent Children (point 42-H1);\n\n(iii) Service Pension Rate Calculator For Blinded Veterans (point 43-E1);\n\n(iv) Service Pension Rate Calculator For Widows And Non-Illness Separated Wives (point 44-G1)”.\n\nSection 1115 (Earnings Credit Account Balance Calculator—point 1115-B3—paragraph (b)):\n\nOmit “section 49b”, substitute “Division 11 of Part III”.\n\nSubsection 1192 (1):\n\nSubsections 1199 (1) and (3):\n\nSubsections 1200 (1) and (3):\n\nSubsections 1201 (1) and (3):\n\nSubsection 1234 (3):\n\nOmit “subsection 42 (1)”, substitute “section 36c, 37c, 38c or 39c”.\n\nSection 1235:\n\nOmit “subsection 42 (1)”, substitute “section 36c, 37c, 38c or 39c”.\n\nSocial Security and Veterans’ Affairs Legislation Amendment Act 1988\n\nSection 30:\n\nRent assistance—boarders and lodgers (changes introduced on 12 June 1989)\n\n“30. (1) If:\n\n(a) immediately before 12 June 1989:\n\n(i) a person was receiving a service pension under or because of the Veterans’ Entitlements Act 1986; and\n\n(ii) the person’s service pension rate included an amount by way of rent assistance in respect of payments made for board and lodging; and\n\n(b) at all times since 12 June 1989, the person:\n\n(i) has been receiving a service pension; and\n\n(ii) has been a boarder;\n\nthe amount by way of rent assistance included in the person’s service pension rate is not to fall below the floor amount.\n\n(a) a decision is made under the Veterans’ Entitlements Act 1986 on or after 12 June 1989 that a person is entitled to rent assistance under that Act in respect of a period; and\n\n(b) the period starts before 12 June 1989; and\n\n(c) the period continued until at least 11 June 1989;\n\nthe 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.\n\n(a) immediately before 12 June 1989, a person was receiving rent assistance under or because of the Social Security Act 1947 in respect of payments for board and lodging; and\n\n(b) after that date, the person becomes entitled to be paid a service pension under the Veterans’ Entitlements Act 1986; and\n\n(c) subsection 18 (1) had not ceased to apply to the person until the person became entitled to that service pension; and\n\n(d) at all times since the person became entitled to that service pension the person:\n\n(i) has been receiving a service pension; and\n\n(ii) has been a boarder;\n\nthe amount of rent assistance included in the person’s service pension rate is not to fall below the person’s floor amount.\n\n“(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:\n\n(a) that amount were calculated, subject to paragraph (b), under the Veterans’ Entitlements Act 1986 as in force immediately before 12 June 1989; and\n\n(b) the Veterans’ Entitlements Act 1986 as in force at that time were modified as follows:\n\n(i) the following paragraph applied instead of paragraph 55 (1) (a):\n\n‘(a) the person pays, or is liable to pay, rent, other than government rent, at a rate exceeding $1,040 per year;’;\n\n(ii) ‘the amount specified in paragraph (l) (a)’ were substituted for ‘$780’ in subparagraph 55 (3) (a) (i); and\n\n(c) any increases in the amounts being paid by the person from time to time for board and lodging above the level being paid immediately before 11 June 1989 were disregarded.\n\n“(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.\n\n“(6) Subsection (1) or (3) will not apply to a person again once it has ceased to apply to the person.\n\n“(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.\n\n“(8) In this section:\n\n‘boarder’ means a person who ordinarily lives on premises where the person is provided with board and lodging.\n\nSection 31:\n\nRent assistance—retirement village residents (changes introduced on 12 June 1989)\n\n“31. (1) If:\n\n(a) immediately before 3 November 1988:\n\n(i) a person was receiving a service pension; and\n\n(ii) the person’s service pension rate included an amount by way of rent assistance under or because of the Veterans’ Entitlements Act 1986; and\n\n(b) at all times since 3 November 1988:\n\n(i) the person has been entitled to a service pension; and\n\n(ii) the person’s principal home has been in a retirement village;\n\nthe person is to be taken not to be an ineligible property owner for the purposes of the Veterans’ Entitlements Act 1986.\n\n(a) immediately after 12 June 1989:\n\n(i) a person was receiving a social security pension, social security benefit or family allowance supplement; and\n\n(ii) the person’s pension, benefit or allowance rate included an amount by way of rent assistance because of the operation of subsection 19 (1) of the Social Security and Veterans’ Affairs Legislation Amendment Act 1988; and\n\n(b) after 12 June 1989, the person began to receive a service pension under the Veterans’ Entitlements Act 1986; and\n\n(c) subsection 19 (1) of the Social Security and Veterans’ Affairs Legislation Amendment Act 1988 applied to the person at all times between 12 June 1989 and the person’s commencing to receive the service pension; and\n\n(d) at all times since the person commenced to receive the service pension:\n\n(i) the person has continued to receive a service pension;\n\nand\n\n(ii) the person’s principal home has continued to be in the retirement village;\n\nthe person is to be taken not to be an ineligible property owner for the purposes of the Veterans’ Entitlements Act 1986.\n\n“(3) If subsection (1) or (2) ceases to apply to the person, that subsection does not apply to the person again.\n\nSocial Security and Veterans’ Affairs Legislation Amendment Act (No. 4) 1989\n\nSubsection 4 (3):\n\nOmit “paragraph 47 (3) (e)” (last occurring), substitute:\n\n“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”.\n\nSubsection 4 (4):\n\nOmit all words from and including “then”, substitute:\n\n“then:\n\n(a) from that commencement until 30 June 1991, the person’s income is to continue to be reduced, by an amount in respect of that child worked out under section 37 of that Act until:\n\n(i) the child stops being a dependent child; or\n\n(ii) the person is no longer entitled to receive any kind of pension or allowance under Part III of that Act; and\n\n(b) on and after 1 July 1991, if neither subparagraph (a) (i) nor (ii) has applied, the person’s ordinary income free area is increased, in respect of the child, in accordance with:\n\n(i) points 42-E4 and 42-E7 of the Rate Calculator at the end of section 42; or\n\n(ii) points 44-D4 and 44-D5 of the Rate Calculator at the end of section 44;\n\n(as the case requires) until:\n\n(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.”.\n\nSocial Security and Veterans’ Entitlements (Maintenance Income Test) Amendment Act 1988\n\nSection 21:\n\nMaintenance income test (changes introduced on 17 June 1988)\n\n“21. (1) If:\n\n(a) in the fortnight that ended on 16 June 1988:\n\n(i) a person was receiving a service pension or a social security pension or social security benefit; and\n\n(ii) the person had maintenance income; and\n\n(b) at all times since 17 June 1988, the person has been receiving\n\na service pension or a social security pension or social security benefit; and\n\n(c) immediately before the commencement of this section, subsection 21 (4) of the Social Security and Veterans’ Entitlements (Maintenance Income Test) Amendment Act 1988 had not ceased to apply to the person; and\n\n(d) in a fortnight the person’s total income would otherwise be less than it was in the fortnight that ended on 16 June 1988;\n\nthe 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.\n\n“(2) Subsection (1):\n\n(a) has effect in spite of anything else in the Veterans’ Entitlements Act; and\n\n(b) has effect subject to subclause (3); and\n\n(c) does not apply if:\n\n(i) the person was required by or under the Social Security Act 1947 or the Veterans’ Entitlements Act to notify the Department of the maintenance income that the person had in the fortnight that ended on 16 June 1988; and\n\n(ii) the person failed to notify the Department of the maintenance income as required by or under that Act.\n\n“(3) If subsection (1) ceases to apply to the person, this section will not apply to the person at any time after that cessation.\n\n“(4) The person’s service pension amount in the fortnight is not to exceed:\n\n(a) if the person had a dependent child or dependent children immediately before 17 June 1988—the amount of the service pension or social security pension or social security benefit received in the fortnight that ended on 16 June 1988; or\n\n(b) if the person did not have a dependent child immediately before 17 June 1988—the amount of the service pension or social security pension or social security benefit received by the person in the fortnight that ended on 16 June 1988 increased to take account of any indexation increases, but no other increases, after 16 June 1988.\n\n“(5) If:\n\n(a) the person’s total income for the fortnight that ended on 16 June 1988 included an extra payment; and\n\n(b) after 26 June 1989 the person is no longer entitled to an extra payment of the same kind because of a change in the person’s circumstances; and\n\n(c) the change in circumstances is not a change in the person’s other income;\n\nthe 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.\n\nNote: for ‘extra payment’ see subclause (7) below.\n\n“(6) If the amount of:\n\n(a) a pension received by the person under Part III of the Veterans’ Entitlements Act in the fortnight that ended on 16 June 1988;\n\nor\n\n(b) a benefit or allowance received by the person under the Social Security Act 1947 in the fortnight that ended on 16 June 1988;\n\nis 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.\n\n“(7) In this clause:\n\n‘extra payment’ means:\n\n(a) an additional payment for a partner made under:\n\n(i) subsection 118 (2) of the Social Security Act 1947; or\n\n(ii) Module C of Benefit Rate Calculator A of the Social Security Act 1991; or\n\n(iii) Module C of Benefit Rate Calculator B of the Social Security Act 1991; or\n\n(b) additional amounts for dependent children under:\n\n(i) subsection 33 (3) or (4) of the Social Security Act 1947; or\n\n(ii) the Social Security Act 1991; or\n\n(iii) the Veterans’ Entitlements Act;\n\n(c) an amount by way of rent assistance under the Social Security Act 1947, the Social Security Act 1991 or the Veterans’ Entitlements Act; or\n\n(d) an amount by way of remote area allowance under the Social Security Act 1947, the Social Security Act 1991 or the Veterans’ Entitlements Act;\n\n‘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;\n\nindexation 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;\n\n‘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;\n\n‘total income’, for a person in a period, means the sum of:\n\n(a) the person’s ordinary income and maintenance income received in that period; and\n\n(b) any service pension, social security pension or social security benefit received by the person in that period;\n\nreduced by so much of that amount as:\n\n(c) was received as arrears of payments due to the person before that period; and\n\n(d) the Secretary is satisfied should be disregarded for the purposes of this section.”.\n\nVeterans’ Affairs Legislation Amendment Act 1990\n\nSubsection 93 (1):\n\nOmit 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.”.\n\nSubsection 93 (2):\n\nOmit “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))”.\n\nVeterans’ Entitlements (Transitional Provisions and Consequential Amendments) Act 1986\n\nParagraph 4 (1) (d):\n\n“(d) ‘widow’ has the same meaning as in section 5e of the Veterans’ Entitlements Act.”.\n\nParagraph 4 (2) (b):\n\nParagraph 5 (4) (c):\n\nOmit “Part III of”.\n\nParagraph 8 (1) (b):\n\nOmit “sub-section 35 (1)”, substitute “paragraph (a) or (b) of the definition of ‘veteran’ in subsection 5c (1)”.\n\nSubsection 8 (2):\n\nOmit “wife” (first occurring), substitute “partner or non-illness separated wife”.\n\nParagraph 8 (2) (a):\n\nOmit “wife’s”, substitute “wife”.\n\nParagraph 8 (2) (b):\n\nOmit “sub-section 35 (1)”, substitute “paragraph (a) or (b) of the definition of ‘veteran’ in subsection 5c (1)”.\n\nSubsection 8 (3):\n\nOmit “carer’s”, substitute “carer”.\n\nSubsection 8 (4) (b):\n\n“(b) ‘partner’, ‘non-illness separated wife’ and ‘widow’ have the same meanings as in section 5e of the Veterans’ Entitlements Act; and”.\n\nSubsection 8 (4) (c):\n\nSection 9:\n\nRepeal the section.\n\nSubsection 10 (2):\n\n(a) Omit “section 42”, substitute “sections 36c, 37c, 38c and 39c”.\n\n(b) Omit “, a wife’s service pension or a carer’s service pension, as the case requires,”.\n\nParagraphs 10 (3) (a) and (4) (b):\n\nParagraph 10 (4) (a):\n\nOmit “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”.\n\nSubsection 10 (5):\n\n(a) Omit “Social Security Act 1947”, substitute “Social Security Act 1991”.\n\n(b) Omit “, a wife’s service pension or a carer’s service pension”.\n\nParagraph 10 (7) (c):\n\nOmit “on and after 1 March 1989.”, substitute “between 1 March 1989 and 30 June 1991 (inclusive); or”.\n\nSubsection 10 (7):\n\n“(d) Part 2.7 (widowed person allowance) or Part 2.8 (widow B pension) as in force on and after 1 July 1991.”.\n\nSubsection 13 (2):\n\nOmit “58 (1)”, substitute “section 56e”.\n\nParagraph 14 (5) (a) (first occurring):\n\n(a) Omit “unmarried”.\n\n(b) After “commencing date”, insert “and was neither legally married nor a member of a couple immediately before death”.\n\nParagraph 14 (5) (a) (second occurring):\n\nParagraph 14 (9) (b):\n\nSubsection 20 (2):\n\nOmit “section 59”, substitute “Division 19 of Part III”.\n\nSubsection 22 (2):\n\nOmit “Section 62 of the Veterans’ Entitlements Act extends”, substitute “Sections 57d and 57e of the Veterans’ Entitlements Act extend”.\n\nParagraph 22 (4) (b):\n\nOmit “62”, substitute “57e”.\n\nSubsection 23 (1):\n\n(a) Omit “sub-section 5 (1)”, substitute “subsection 5f (1)”.\n\n(b) Omit “ ‘or V’ ”, substitute “paragraph (f)”.\n\nSubsection 23 (3):\n\n(a) Omit “sub-section 5 (1)”, substitute “subsection 5f (1)”.\n\n(b) Omit “section 83”, substitute “Division 15 of Part III”.\n\n(c) Omit “ ‘or V’ ”, substitute “paragraph (f)”.\n\nSubsection 23 (4):\n\nOmit “sub-section 35 (8)”, substitute “subsection 5f (4)”.\n\nSection 28:\n\nOmit “sub-section 35 (8)”, substitute “subsection 5f (4)”.\n\nSection 29:\n\nOmit “sub\\-section 50 (8)”, substitute “subsection 5l (7)”.\n\nSubsection 30 (1):\n\nOmit “section 51”, substitute “Subdivision E of Division 14 of Part III”.\n\nSubsection 30 (2):\n\n(a) Omit “Section 51”, substitute “Subdivision E of Division 14 of Part III”.\n\n(b) Omit “section 51” (twice occurring), substitute “that Subdivision”.\n\n(c) Omit “51 (4) (c)”, substitute “52zb (1) (d)”.\n\nSubsection 30 (3):\n\nOmit “51”, substitute “52zf”.\n\nSubsection 31 (2):\n\nOmit “section 52”, substitute “Division 10 of Part III”.\n\nSubsection 31 (3):\n\nOmit “section 52”, substitute “Subdivision B of Division 14 of Part III”.\n\nSection 39:\n\nOmit “sub\\-section 125 (2)”, substitute “section 58h”.\n\nSection 40:\n\nOmit “, wife’s service pension or carer’s service pension, as the case may be,”.\n\nSection 45:\n\nBefore “section 127” (wherever occurring), insert “section 54 or”.\n\nSubsection 45 (3):\n\n(a) Omit “Subsections”, substitute “Sections 56, 56a and 56b and subsections”.\n\n(b) After “served on the person under section”, insert “54 or”.\n\nParagraph 45 (3) (a):\n\nAfter “a notice under”, insert “section 54 or”.\n\nParagraph 45 (3) (b):\n\nAfter “a reference in”, insert “sections 56, 56a and 56b and in”.\n\nSubsection 45 (5):\n\n(a) Omit “wife’s service pension or carer’s service pension”.\n\n(b) Omit “in pursuance of section 55”, substitute “by an amount for rent assistance under Part III”.\n\n![](image.014.png)\n\n","sortOrder":13},{"sectionNumber":"Sch 5","sectionType":"schedule","heading":"Section 22","content":"SCHEDULE 5 Section 22\n\nMINOR AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986\n\n| Section 5 (Index of definitions): | |\n| ---------------------------------------------- | ----------- |\n| (a) Omit: | |\n| “approved respite care | 5r”, |\n| substitute: | |\n| “approved respite care | 5r (8)”. |\n| (b) After: | |\n| “deductible amount | 5j”, |\n| “defence-caused injury, defence-caused disease | 5d (2)”. |\n| (c) After: | |\n| “Income Tax Assessment Act | 5n (1)”, |\n| “ineligible property owner | 5n (1)”. |\n| (d) After: | |\n| “in-kind housing maintenance | 5k”, |\n| omit: | |\n| “ineligible property owner | 5n (1)”. |\n| (e) Omit: | |\n| “President | 5a (1)”, |\n| insert | |\n| “President | 5a”. |\n| (f) Omit: | |\n| “qualifying service | 7a”, |\n| substitute: | |\n| “qualifying service | 5c (1),7a”. |\n| (g) Before: | |\n| “war to which this Act applies | 5b (1)”, |\n| “war-caused injury, war-caused disease | 5d (2)”. |\n\nParagraph 5b (1) (b):\n\nOmit “3 September 1945”, substitute “29 October 1945”.\n\nParagraph 5F (3) (c):\n\nOmit “$100”, substitute “$107.70”.\n\nSubsection 5F (3):\n\n“Note: the amount in paragraph (c) is indexed annually in line with CPI increases (see sections 59b to 59e).”.\n\nSubsection 5g (1) (Note):\n\n(a) Omit “section 5”, Substitute “section 4”.\n\n(b) Omit “section 7”, Substitute “section 15”.\n\nSubsection 5m (5):\n\nOmit “than” (second occurring), substitute “that”.\n\nParagraph 5p (a):\n\nOmit “from”, substitute “that starts on the day after”.\n\nSubsection 5q (1) (paragraph (c) of the definition of “determination of entitlement”):\n\nOmit “or allowance”.\n\nAfter section 5s:\n\nLodgment of claims and documents\n\n“5t. (1) For the purposes of this Act, a claim, application or other document is taken to have been:\n\n(a) forwarded to, or delivered at, an office of the Department in Australia if the claim, application or document is:\n\n(i) forwarded to, or delivered at, a place approved by the Commission for the purposes of this subsection; or\n\n(ii) delivered to a person approved by the Commission for the purposes of this subsection; and\n\n(b) received at an office of the Department in Australia on the day on which it is received at that place or delivered to that person.\n\n“(2) The Commission may approve a place within or outside Australia for the purposes of subparagraph (1) (a) (i).\n\n“(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.\n\nNotes\n\n“5u. For the purposes of this Act, a Note is taken to be part of:\n\n(a) if the Note immediately follows a section that does not contain subsections—the section; or\n\n(b) if the Note immediately follows a subsection—the subsection; or\n\n(c) if the Note immediately follows a point in a Rate Calculator— the point; or\n\n(d) if the Note immediately follows a Step in a Method statement and is aligned with the text of the Step—the Step; or\n\n(e) if the Note immediately follows a Table—the Table; or\n\n(f) if the Note immediately follows a paragraph and is aligned with the text of the paragraph—the paragraph.”.\n\nParagraph 35 (1) (d):\n\n“and to qualifying service claims (for example, review provisions)”.\n\nAfter paragraph 36p (1) (d):\n\n“and (e) on the pension payday immediately before the first available bereavement adjustment payday, the amount that would be payable to the person if the person were not eligible for payments under this Subdivision is less than the sum of:\n\n(i) the amount that would otherwise be payable to the person under section 36q (continued payment of partner’s pension); and\n\n(ii) the amount that would otherwise be payable to the person under section 36s (person’s continued rate);”.\n\nParagraph 37 (1) (c):\n\nOmit “work; and”, substitute “work.”.\n\nParagraph 37 (1) (d):\n\nAfter paragraph 37p (1) (d):\n\n“and (e) on the pension payday immediately before the first available bereavement adjustment payday, the amount that would be payable to the person if the person were not eligible for payments under this Subdivision is less than the sum of:\n\n(i) the amount that would otherwise be payable to the person under section 37q (continued payment of partner’s pension); and\n\n(ii) the amount that would otherwise be payable to the person under section 37s (person’s continued rate);”.\n\nSubsection 38n (3):\n\nOmit “Widow or Non-illness Separated Wife Rate Calculator”, substitute “Service Pension Rate Calculator for Widows and Non-illness Separated Wives”.\n\nParagraph 39a (1) (c):\n\nOmit “section 58k”, substitute “subsection 58k (2)”.\n\nAfter paragraph 39r (1) (d):\n\n“and (e) on the pension payday immediately before the first available bereavement adjustment payday, the amount that would be payable to the person if the person were not eligible for payments under this Subdivision is less than the sum of:\n\n(i) the amount that would otherwise be payable to the person under section 39s (continued payment of partner’s pension); and\n\n(ii) the amount that would otherwise be payable to the person under section 39u (person’s continued rate);”.\n\nSubsection 39n (2):\n\nOmit “ ‘Frozen Rate’ Widow Service Pension Calculator”, substitute “Service Pension Rate Calculator for ‘Frozen Rate’ Widows”.\n\nSubsection 40 (1) (Note):\n\nOmit the Note, substitute:\n\n“Note 1: the additional amounts referred to in paragraph (b) are amounts for children and rent assistance.\n\nNote 2: ‘additional amounts’ in paragraph (d) at this time means only remote area allowance.”.\n\nSubsection 40c (2) (Table—column 1):\n\nOmit “Widow or Non-illness Separated Wife Service Pension Rate Calculator”, substitute “Service Pension Rate Calculator for Widows and Non-illness Separated Wives”.\n\nSubsection 41 (4):\n\nOmit “ ‘Frozen Rate’ Widow Service Pension Rate Calculator”, substitute “Service Pension Rate Calculator for ‘Frozen Rate’ Widows”.\n\nSubsection 41 (5):\n\nAfter “partner were receiving” insert “a service pension or”.\n\nSection 41 (Service Pension Rate Calculator Where There Are No Dependent Children—point 41-B1—Table B):\n\n

TABLE B

MAXIMUM BASIC RATES

column 1

column 2

column 3

column 4

item

person’s family situation

rate per year

rate per fortnight

1.

Not member of a couple

$7,841.60

$301.60

2.

Partnered (partner getting neither pension nor benefit)

$7,841.60

$301.60

3.

Partnered (partner getting pension or benefit)

$6,539.00

$251.50

4.

Member of an illness separated or respite care couple

$7,841.60

$301.60

\n```\n\nNote 1: for ‘member of a couple’, ‘partnered (partner getting neither pension nor benefit)’, ‘partnered (partner getting pension or benefit)’ see section 5e, and for illness separated couple’ and ‘respite care couple’ see subsections 5r (5) and (6).\n\nSection 41 (Service Pension Rate Calculator Where There Are No Dependent Children—point 41-C2):\n\nSection 41 (Service Pension Rate Calculator Where There Are No Dependent Children—point 41-C6—Table C-1):\n\n

TABLE C-l

RATE OF RENT ASSISTANCE

column 1

column 2

column 3

column 4

item

family situation

rate A

rate B

1.

Not member of a couple

Annual rent-$ 1,300

2

$1,612

2.

Partnered—partner does not have rent increased pension

Annual rent-$l,300

2

$1,612

3.

Partnered—partner has rent increased pension

Annual rent-$1,300

4

$806

\n```\n\nNote 2: for ‘partner with a rent increased pension’ see point 41-C5.\n\nNote 3: the rate B amounts are indered 6 monthly in line with CPI increases (see sections 59b to 59e).”.\n\nSection 41 (Service Pension Rate Calculator Where There Are No Dependent Children—point 41-C10—Method statement—Step 1):\n\nSection 41 (Service Pension Rate Calculator Where There Are No Dependent Children—point 41-C10—Method statement—Step 5):\n\nOmit “disability income excess”, substitute “disability pension income excess”.\n\nSection 41 (Service Pension Rate Calculator Where There Are No Dependent Children—point 41-C10—Method statement—Step 6):\n\nOmit “rent assistance reduction amount”, substitute “rent assistance reduction amount”.\n\nSection 41 (Service Pension Rate Calculator Where There Are No Dependent Children—point 41-C10—Method statement—Step 7):\n\nOmit “rate of rent assistance” (second occurring), substitute “rate of rent assistance”.\n\nSection 41 (Service Pension Rate Calculator Where There Are No Dependent Children—point 41-C12—Table C-2—Note 3):\n\nSection 41 (Service Pension Rate Calculator Where There Are No Dependent Children—point 41-C12—Table C-2—RENT ASSISTANCE EXAMPLES):\n\nOmit the examples, substitute:\n\n“rent assistance examples\n\nExample 1:\n\nWilliam is a service pensioner who is not a member of a couple. He pays $100 per week rent for his flat.\n\nHe does not receive any disability pension.\n\nItem 1 in Table C-l applies to William.\n\nRate A for William is:\n\n![](image.015.png)\n\nRate B for William is $1,612. The lesser rate is $1,612. This is the yearly rate of William’s rent assistance amount.\n\nExample 2:\n\nJohn and Mary are members of a pensioner couple. They rent a house for $150 per week.\n\nJohn receives a 100% disability pension ($5,434 per year) and Mary receives a 50% disability pension ($105.30 per year).\n\nItem 3 applies to them.\n\nRate A for John is:\n\n![](image.016.png)\n\nRate 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.\n\nJohn’s disability pension income is:\n\n![](image.017.png)\n\nItem 3 of Table C-2 applies. John’s disability pension income excess is:\n\n![](image.018.png)\n\nThe reduction in rent assistance would be ![](image.019.png) (rounded to the nearest 10 cents)\n\nTherefore the rent assistance John will receive is $331.20 ($806 - $474.80).\n\nThe same calculation applies to Mary’s yearly rate of rent assistance amount.”.\n\nSection 41 (Service Pension Rate Calculator Where There Are No Dependent Children—point 41-D4—Table D-l—Note 3):\n\nSection 41 (Service Pension Rate Calculator Where There Are No Dependent Children—point 41-F3—Table F-1):\n\n

“

TABLE F-l

ASSETS VALUE LIMIT

column 1

column 2

column 3

assets value limit

item

person’s family situation

column 3a either person or partner property owner

column 3b neither person nor partner property owner

1.

Not member of a couple

$110,750

$190,250

2.

Partnered (partner getting neither

$78,750

$118,500

3.

pension nor benefit) Partnered (partner getting pension or benefit)

$78,750

$118,500

\n```\n\nNote 1 : for ‘member of a couple’, ‘partnered (partner getting neither pension nor benefit)’ and ‘partnered (partner getting pension or benefit)’ see section 5e.\n\nNote 2: for ‘property owner’ see section 5l.\n\nNote 3: items 2 and 3 apply to members of illness separated and respite care couples.\n\nNote 4: the assets value limits are indexed annually in line with CPI increases (see sections 59b to 59e).”.\n\nSection 41 (Service Pension Rate Calculator Where There Are No Dependent Children—point 41-G3):\n\nOmit “or a respite care couple”.\n\nSubsection 42 (3):\n\nOmit “ ‘Frozen Rate’ Widow Service Pension Rate Calculator”, substitute “Service Pension Rate Calculator for ‘Frozen Rate’ Widows”.\n\nSubsection 42 (4):\n\nAfter “partner were receiving”, insert “a service pension or”.\n\nSection 42 (Service Pension Rate Calculator Where There Are Dependent Children—point 42-B1—Table B):\n\n

“

TABLE B

MAXIMUM BASIC RATES

column 1

column 2

column 3

column 4

item

person’s family situation

rate per year

rate per fortnight

1.

Not member of a couple

$7,841.60

$301.60

2.

Partnered (partner getting neither pension nor benefit)

$7,841.60

$301.60

3.

Partnered (partner getting pension or benefit)

$6,539.00

$251.50

4.

Member of an illness separated or respite care couple

$7,841.60

$301.60

\n```\n\nNote 1: for ‘member of a couple’, ‘partnered (partner getting neither pension nor benefit)’. ‘partnered (partner getting pension or benefit)’ see section 5e, and for ‘illness separated couple’ and ‘respite care couple’ see subsections 5r (5) and (6).\n\nSection 42 (Service Pension Rate Calculator Where There Are Dependent Children—point 42-C2—Table C-1—Key):\n\nAfter “person is receiving neither”, insert “a”.\n\nSection 42 (Service Pension Rate Calculator Where There Are Dependent Children—point 42-C3—Table C-2):\n\n

“

TABLE C-2

ADD-ON FOR DEPENDENT CHILD

column 1

column 2

column 3

column 4

item

child’s age

rate per year

rate per fortnight

1.

under 13

$1,378

$53

2.

13 or over but under 16

$2,009.80

$77.30

3.

16 or over

$884

$34

\n```\n\nNote 1: the item 1 rate is adjusted annually (see section 59f) so that the combined family allowance and additional pension amounts for children covered by this item do not fall below 15% or the combined pensioner couple maximum basic rate.\n\nNote 2: the item 2 rate is adjusted annually (see section 59f) so that the combined family allowance and additional pension amounts for children covered by this item do not fall below 20% of the combined pensioner couple maximum basic rate.\n\nNote 3: the item 3 rate is not indexed.\n\nNote 4: there may be situations where 2 veterans who are not members of the same couple are entitled to a dependent child add-on for the same child. For example, a child may be substantially dependent on a veteran with whom the child is living (the child’s mother) and also substantially dependent on another veteran (the child’s father) who is no longer the mother’s partner and is contributing substantially to the maintenance of the child. If the child is substantially dependent on each veteran, both veterans are entitled to dependent child add-on for the child.”.\n\nSection 42 (Service Pension Rate Calculator Where There Are Dependent Children—point 42-C5—paragraph (b)):\n\nAfter “illness separated”, insert “or respite care”.\n\nSection 42 (Service Pension Rate Calculator Where There Are Dependent Children—point 42-C7):\n\nOmit the point, substitute:\n\nRate of guardian allowance\n\n“42-C7. The rate of guardian allowance is $722.80 a year ($27.80 a fortnight).\n\nNote: the rate is adjusted annually (see section 59g).”.\n\nSection 42 (Service Pension Rate Calculator Where There Are Dependent Children—point 42-D2):\n\nSection 42 (Service Pension Rate Calculator Where There Are Dependent Children—point 42-D6—Table D-1):\n\n

TABLE D-l

RATE OF RENT ASSISTANCE

column 1

column 2

column 3

column 4

item

family situation

rate A

rate B

column

4a

1 or 2 pension increase children

column 4b

3 or more pension increase children

1.

Not member of a couple

Annual rent - $1,300

2

$1,182.40

$2,150.20

2.

Partnered—partner does not have rent increased pension

Annual rent - $ 1,300

2

$1,182.40

$2,150.20

3.

Partnered—partner has rent increased pension

Annual rent - $1,300

4

$941.20

$1,075.10

\n```\n\nNote 2: for ‘partner with a rent increased pension’ see point 42-D5.\n\nNote 3: the rate B amounts are indexed 6 monthly in line with CPI increases (see sections 59b to 59e).”.\n\nSection 42 (Service Pension Rate Calculator Where There Are Dependent Children—point 42-D10—Method statement—Step 1):\n\nAfter “disability” (second occurring), insert “pension”.\n\nSection 42 (Service Pension Rate Calculator Where There Are Dependent Children—point 42-D10—Method statement—Step 5):\n\nAfter “disability” (third occurring), insert “pension”.\n\nSection 42 (Service Pension Rate Calculator Where There Are Dependent Children—point 42-D12—Table D-2—Note 3):\n\nSection 42 (Service Pension Rate Calculator Where There Are Dependent Children—point 42-D16):\n\n (a) Omit paragraph (a), substitute:\n\n“(a) under Part III of this Act; or”.\n\n(b) Omit paragraphs (b), (d) and (e).\n\nSection 42 (Service Pension Rate Calculator Where There Are Dependent Children—point 42-D16—RENT ASSISTANCE EXAMPLES):\n\nOmit the examples, substitute:\n\n“rent assistance examples\n\nExample 1:\n\nFrederick is a service pensioner who is not a member of a couple. Frederick pays $100 per week rent for a flat and does not receive any disability pension. He has one dependent child.\n\nItem 1 in Table D-l applies to Frederick.\n\nRate A for Frederick is:\n\n![](image.020.png)\n\nRate B for Frederick is $1,882.40. The lesser rate is $1,882.40. This is the yearly rate of Frederick’s rent assistance amount.\n\nExample 2:\n\nPeter and Cheryl are members of a pensioner couple. They rent a house for $150 per week. They have one dependent child. Peter receives a 100% disability pension ($5,434 per year) and Cheryl receives a 50% disability pension ($105.30 per year).\n\nItem 3 applies to them.\n\nRate A for Peter is:\n\n![](image.021.png)\n\nRate B for Peter is $941.20. The lesser rate is $941.20. This is the provisional rate of rent assistance Peter can receive. As he and Cheryl receive disability pension, the rent assistance income test applies.\n\nPeter’s disability pension income is:\n\n![](image.022.png)\n\nItem 3 of Table D-2 applies. Peter’s disability pension excess is:\n\n![](image.023.png)\n\nThe reduction in rent assistance would be ![](image.024.png) (rounded to the nearest 10 cents).\n\nTherefore the rent assistance Peter will receive is $778.40 ($941.20 - 162.80).\n\nThe same calculation applies to Cheryl’s yearly rate of rent assistance amount.”.\n\nSection 42 (Service Pension Rate Calculator Where There Are Dependent Children—point 42-E4—Table E-l—Note 3):\n\nAdd at the end “(see sections 59b to 59e).”.\n\nSection 42 (Service Pension Rate Calculator Where There Are Dependent Children—point 42-E10—ORDINARY INCOME FREE AREA EXAMPLES—Example 1—last sentence):\n\nOmit “limit”.\n\nSection 42 (Service Pension Rate Calculator Where There Are Dependent Children—point 42-E10—ORDINARY INCOME FREE AREA EXAMPLES—Example 2—last sentence):\n\nOmit “$1,820-$312”, Substitute “$1,820+$312”.\n\nSection 42 (Service Pension Rate Calculator Where There Are Dependent Children—point 42-G3—Table G-1):\n\n

“

TABLE G-l

ASSETS VALUE LIMIT

column 1

column 2

column 3

assets value limit

column 3a

column 3b

item

person’s family situation

either person

or partner property owner

neither person nor partner property owner

1.

Not member of a couple

$110,750

$190,250

2.

Partnered (partner getting neither pension nor benefit)

$78,750

$118,500

3.

Partnered (partner getting pension or benefit)

$78,750

$118,500

\n```\n\nNote 1: for ‘member of a couple’, ‘partnered (partner getting neither pension nor benefit)’ and ‘partnered (partner getting pension or benefit)’ see section 5e.\n\nNote 2: for ‘property owner’ see section 5l.\n\nNote 3: items 2 and 3 apply to members of illness separated and respite care couples.\n\nNote 4: the assets value limits are indexed annually in line with CPI increases (see sections 59b to 59e).”.\n\nSection 42 (Service Pension Rate Calculator Where There Are Dependent Children—Module H):\n\n“42-H6. If 2 persons have a veteran pensioner add-on for the same child, additional allowance is not payable to either veteran for that child except as directed by the Commission. The Commission may direct that additional allowance is payable either to one of the veterans or to both of the veterans.”.\n\nSubsection 43 (2):\n\nOmit “ ‘Frozen Rate’ Widow Service Pension Rate Calculator”, substitute “Service Pension Rate Calculator for ‘Frozen Rate’ Widows”.\n\nSubsection 43 (3):\n\nAfter “partner were receiving” insert “a service pension or”.\n\nSection 43 (Service Pension Rate Calculator for Blinded Veterans— point 43-B1—Table B):\n\n

“

TABLE B

MAXIMUM BASIC RATES

column 1

column 2

column 3

column 4

item

person’s family situation,

rate per year

rate per fortnight

1.

Not member of a couple

$7,841.60

$301.60

2.

Partnered (partner getting neither pension nor benefit)

$7,841.60

$301.60

3.

Partnered (partner getting pension or benefit)

$6,539

$251.50

4.

Member of an illness separated or respite care couple

$7,841.60

$301.60

\n```\n\nNote 1: for ‘member of a couple’, ‘partnered (partner getting neither pension nor benefit)’. ‘partnered (partner getting pension or benefit)’ see section 5e, and for ‘illness separated couple’ and ‘respite care couple’ see subsections 5r (5) and (6).\n\nSection 43 (Service Pension Rate Calculator for Blinded Veterans— point 43-C3—Table C-2):\n\n

“

TABLE C-2

APPLICABLE AMOUNT FOR DEPENDENT CHILDREN

column 1

column 2

column 3

column 4

item

additional amount

rate per year

rate per fortnight

1.

Amount applicable if veteran has a dependent child who has not turned 13

$1,378

$53

2.

Amount applicable if veteran has a dependent child who has turned 13 but has not turned 16

$2,009.80

$77.30

3.

Amount applicable if veteran has a dependent child who has turned 16 (over 16 child add-on)

$884

$34

4.

Amount applicable if veteran has a dependent child or dependent children and either is not a member of a couple or is a member of an illness separated or respite care couple

$722.80

$27.80

\n```\n\nNote 1: the item 1 rate is adjusted annually (see section 59f) so that the combined family allowance and additional pension amounts for children covered by this item do not fall below 15% of the combined pensioner couple maximum basic rate.\n\nNote 2: the item 2 rate is adjusted annually (see section 59f) so that the combined family allowance and additional pension amounts for children covered by this item do not fall below 20% of the combined pensioner couple maximum basic rate.\n\nNote 3: the item 3 rate is not adjusted.\n\nNote 4: the item 4 rate is adjusted annually (see section 59g).\n\nNote S: there may be situations where 2 veterans who are not members of the same couple are entitled to a dependent child add-on for the same child. For example, a child may be substantially dependent on a veteran with whom the child is living (the child’s mother) and also substantially dependent on another veteran (the child’s father) who is no longer the mother’s partner and is contributing substantially to the maintenance of the child. If the child is substantially dependent on each veteran, both veterans are entitled to dependent child add-on for the child.”.\n\nSection 43 (Service Pension Rate Calculator for Blinded Veterans— point 43-D2):\n\nSection 43 (Service Pension Rate Calculator for Blinded Veterans— Module E):\n\n“43-E6. If 2 persons have a veteran pensioner add-on for the same child, additional allowance is not payable to either veteran for that child except as directed by the Commission. The Commission may direct that additional allowance is payable either to one of the veterans or to both of the veterans.”.\n\nSection 44 (Service Pension Rate Calculator for Widows and Non-illness Separated Wives—point 44-B1—Table B):\n\n

“

TABLE B

MAXIMUM BASIC RATES

column 1

column 2

column 3

column 4

item

person’s family situation

rate per year

rate

per fortnight

1.

Not member of a couple

$6,539

$251.50

2.

Partnered (partner getting neither pension nor benefit)

$6,539

$251.50

3.

Partnered (partner getting pension or benefit)

$6,539

$251.50

\n```\n\nNote 1: for ‘member of a couple’, ‘partnered (partner getting neither pension nor benefit)’ and ‘partnered (partner getting pension or benefit)’ see section 5e.\n\nSection 44 (Service Pension Rate Calculator for Widows and Non-illness Separated Wives—point 44-C2):\n\nSection 44 (Service Pension Rate Calculator for Widows and Non-illness Separated Wives—point 44-C6—Table C-1):\n\n \n\n

“

TABLE C-l

RATE OF RENT ASSISTANCE

col. 1

column 2

column 3

column 4

item

family situation

rate A

rate B

column 4a

column 4b

column 4c

no pension increase children

1 or 2 pension increase children

3 or more pension increase children

1.

Not member of a couple

Annual rent-$1,300

2

$1,612

2.

Partnered— partner does not have rent increased pension

Annual rent-$l,300

2

$1,612

—

—

3.

Partnered— partner has rent increased pension

Annual rent-$ 1,300

4

$806

$941.20

$1,075.10

\n```\n\nNote 2: for ‘partner with a rent increased pension’ see point 44-C5.\n\nNote 3: the rate B amounts are indexed 6 monthly in line with CPI increases (see sections 59b to 59e).”.\n\nSection 44 (Service Pension Rate Calculator for Widows and Non-illness Separated Wives—point 44-C10—Method statement— Step 1):\n\nSection 44 (Service Pension Rate Calculator for Widows and Non-illness Separated Wives—point 44-C10—Method statement— Step 5):\n\nSection 44 (Service Pension Rate Calculator for Widows and Non-illness Separated Wives—point 44-C12—Table C-2—Note 3):\n\nSection 44 (Service Pension Rate Calculator for Widows and Non-illness Separated Wives—point 44-C17):\n\n(a) Omit paragraph (a), substitute:\n\n“(a) under Part III of this Act; or”.\n\n \n\n(b) Omit paragraphs (b), (d) and (e).\n\nSection 44 (Service Pension Rate Calculator for Widows and Non-illness Separated Wives—point 44-D1—Method statement— Step 2):\n\nAfter “ordinary” insert “income”.\n\nSection 44 (Service Pension Rate Calculator for Widows and Non-illness Separated Wives—point 44-D4):\n\n“Note: this amount is indexed annually in line with CPI increases (see sections 59b to 59e).”.\n\nSection 44 (Service Pension Rate Calculator for Widows and Non-illness Separated Wives—point 44-F3—Table F-l):\n\n

“

TABLE F-l

ASSETS VALUE LIMIT

column 1

column 2

column 3

item

person’s family situation

assets value limit

column 3a either person

or partner property owner

column 3b neither person nor partner property owner

1.

Not member of a couple

$110,750

$190,250

2.

Partnered (partner getting neither pension nor benefit)

$78,750

$118,500

3.

Partnered (partner getting pension or benefit)

$78,750

$118,500

\n```\n\nNote 1: for ‘member of a couple’, ‘partnered (partner getting neither pension nor benefit)’ and ‘partnered (partner getting pension or benefit)’ see section 5e.\n\nNote 2: for ‘property owner’ see section 5L.\n\nNote 3: the assets value limits are indexed annually in line with CPI increases (see sections 59b to 59e).”.\n\nSubsection 46b (2):\n\nOmit “section 5h”, substitute “subsection 5j (1)”.\n\nSection 48:\n\n“(2) For the purposes of subsection (1), the value of any right or interest of the person of a kind referred to in paragraph 52 (1) (fa) is taken not to be consideration received by the person.”.\n\nAfter subsection 52 (1):\n\n‘Note: for ‘principal home’ and other assets test definitions see section 5l.”.\n\nAfter paragraph 52 (1) (f):\n\n“(fa) if the person:\n\n(i) has a right to accommodation for life, or a life interest, in a private residence that is the principal home of the person; and\n\n(ii) acquired or retained that right or life interest for valuable consideration;\n\nthe value of that right or interest;”.\n\nSection 52e:\n\n“(2) For the purposes of subsection (1), the value of any right or interest of the person of a kind referred to in paragraph 52 (1) (fa) is taken not to be consideration received by the person.”.\n\nSection 52n:\n\n“(4) In this section, ‘pension “single” property owner AVL’, ‘pension “single” non-property owner AVL’, ‘pension “partnered” property owner AVL’ and ‘pension “partnered” non-property owner AVL’ have the same meaning as in Division 21.”.\n\nParagraph 52p (a):\n\nOmit “or”, substitute “for”.\n\nSubparagraph 52s (5) (e) (iii):\n\nOmit “sections 52”, substitute “subsection 52 (1)”.\n\nParagraph 52s (5) (g):\n\nSubsection 52s (5) (Note):\n\nParagraph 52t (3) (e):\n\nSubsection 52t (3) (Note):\n\nParagraph 52u (2) (e):\n\nSubsection 52u (2) (Note):\n\nSection 53b (Fringe Benefits Income Test Calculator):\n\nOmit the Calculator, substitute:\n\nFRINGE BENEFITS INCOME TEST CALCULATOR\n\n“53b-1\\. This is how to work out whether a person satisfies the fringe benefits income test:\n\n

Method statement

Step 1.

Work out the amount of the person’s ordinary income on an annual basis.

Step 2.

Work out the person’s fringe benefits income using points 53b-2 to 53b-11 below.

Step 3.

Work out the person’s fringe benefits income free area using point 53b-12 below.

Step 4.

Compare the fringe benefits income with the fringe benefits income free area: if the person’s fringe benefits income does not exceed the person’s fringe benefits income free area, the person satisfies the fringe benefits income test.

\n```\n\nFringe benefits income of person without dependent children\n\n“53b\\-2. If a person has no dependent children, the person’s fringe benefits income is the person’s annual rate of ordinary income.\n\nFringe benefits income of person with dependent child or children\n\n“53b\\-3. Subject to point 53b\\-4, if a person has a dependent child or dependent children, the person’s fringe benefits income is worked out using Table B-l.\n\nFringe benefits income of widows and non-illness separated wives\n\n“53b\\-4. If:\n\n(a) a person is receiving wife service pension; and\n\n(b) her rate of wife service pension is calculated under section 44 (Service Pension Rate Calculator for Widows and Non-illness Separated Wives); and\n\n(c) she is a member of a couple; and\n\n(d) her partner is receiving an age service pension or invalidity service pension; and\n\n(e) the partner’s service pension rate includes a child add-on for a child or child add-ons for children;\n\nthe person’s fringe benefits income is the person’s annual rate of ordinary income less $156.\n\nNote: a woman’s rate of wife service pension may be calculated under the Service Pension Rate Calculator for Widows and Non-illness Separated Wives, and she may also be a member of a couple. This situation arises if she has entered a de facto relationship since she was widowed or separated.\n\nEffect of certain child payments on widows and non-illness separated wives\n\n“53b\\-5. If:\n\n(a) a person’s fringe benefits income is calculated under point 53b\\-4; and\n\n(b) the person’s partner receives a payment for or in respect of a child of the partner (other than a payment referred to in point 53b\\-9);\n\nthe amount of $156 referred to in point 53b\\-4 is reduced by 50% of the annual amount of that payment.\n\nHow to calculate fringe benefits income under point 53b\\-3\n\n“53b\\-6. If a person has a dependent child or dependent children and point 53b\\-4 does not apply to the person, use Table B-l to work out the person’s fringe benefits income reduction amount (column 3). Multiply the fringe benefits income reduction amount by the number of dependent children the person has. Take away the result from the person’s annual rate of ordinary income. The result is the person’s fringe benefits income.\n\nNote: for ‘dependent child’ see section 5f.\n\n

TABLE B-l

FRINGE BENEFITS INCOME REDUCTION AMOUNT

column 1

column 2

column 3

item

person’s family situation

reduction amount

1.

not member of a couple

$312

2.

member of a couple

$156

\n```\n\nEffect of certain child payments on fringe benefits income reduction amount\n\n“53b\\-7. The fringe benefits income reduction amount for a dependent child of a person is reduced by the annual amount of any payment received by the person or the person’s partner for or in respect of that particular child. The payments referred to in point 53b\\-9 do not result in a reduction.\n\n“53b\\-8. The fringe benefits income reduction amount for a dependent child of a person who is partnered (partner getting pension) is reduced by 50% of the annual amount of any payment received by the person or the person’s partner for or in respect of that particular child. The payments referred to in point 53b\\-9 do not result in a reduction.\n\nNote: for ‘partnered (partner getting pension)’ see section 5e.\n\n“53b\\-9. No reduction is to be made under point 53b\\-5, 53b\\-7 or 53b\\-8 for a payment:\n\n(a) under this Act; or\n\n(b) of maintenance income; or\n\n(c) under the Social Security Act; or\n\n(d) under the AUSTUDY Scheme; or\n\n(e) under the Assistance for Isolated Children Scheme; or\n\n(f) that is similar in nature to family allowance and that prevents a family allowance from being paid under section 837 of the Social Security Act.\n\nFinancial hardship cases\n\n“53b\\-10. For the purposes of point 53b\\-1, a person’s fringe benefits income is to be taken to include an amount per year that is taken into account under subsection 52z (5).\n\nChanges in income rate (13 week buffer)\n\n“53b\\-11. If on a particular day a person’s annual rate of fringe benefits income increases from a rate below or equal to the person’s fringe benefits income free area to a rate not more than 25% above that free area, the person is to be taken to satisfy the fringe benefits income test until:\n\n(a) the end of the period of 13 weeks starting on the first pension payday after that day; or\n\n(b) the person’s annual rate of fringe benefits income exceeds 125% of that free area;\n\nwhichever happens first.\n\nFringe benefits income free area\n\n“53b\\-12. A person’s fringe benefits income free area is worked out using Table B-2. Work out which family situation in the Table applies to the person. The fringe benefits income free area is the corresponding amount in column 3 plus an additional corresponding amount in column 4 for each dependent child of the person.\n\n

TABLE B-2

FRINGE BENEFITS INCOME FREE AREA

column 1

item

column 2

person’s family situation

column 3

basic free area

column 4

additional free area

1.

not member of a couple

$5,356

$1,040

2.

member of a couple

$4,576

$520

\n```\n\nNote: the basic free area is indexed in line with CPI increases (see sections 59b to 59e). .\n\nSection 53c (Fringe Benefits Assets Test Calculator— point 53c\\-2—Table):\n\n

“

TABLE

FRINGE BENEFITS ASSETS VALUE LIMIT

column 1

column 2

column 3

item

person’s family situation

assets value limit

column 3a

either person or partner property owner

column 3b

neither person nor partner property owner

1.

Not member of a couple

$126,250

$205,750

2.

Member of a couple

$90,250

$130,000

\n```\n\nNote 1: for ‘property owner’ see subsection 5l (4).\n\nNote 2: the column 3a amounts are indexed in line with CPI increases (see sections 59b to 59e).\n\nNote 3: the column 3b amounts are adjusted annually (see section 59k).”.\n\nSubsection 53d (1) (Note 1):\n\nOmit “service pensioner”, substitute “veteran”.\n\nSection 56K:\n\nPension may be cancelled or suspended if instalments not drawn\n\n“56k. If a service pensioner has not drawn instalments of his or her age service pension, invalidity service pension or wife service pension for a continuous period of 6 months, the Commission may cancel or suspend the pension.\n\nNote 1: an example of a situation where this section is intended to apply is where a person has closed his or her bank account and cannot be contacted to make new banking or other\n\narrangements for payment of the person’s service pension. It is not intended to apply where a pensioner is accumulating pension instalments in a bank account.\n\nNote 2: if the Commission cancels or suspends a veteran’s age service pension or invalidity service pension and the veteran’s partner receives a wife service pension, the wife service pension will also be terminated (under section 56e). Similarly, if a person has been receiving carer service pension because of caring for the veteran, that carer service pension will also be cancelled or suspended.”.\n\n![](image.025.png)NOTE\n\n1\\. No. 27, 1986, as amended. For previous amendments, see Nos. 106 and 130, 1986; Nos. 78, 88 and 130, 1987; Nos. 13, 35, 75, 99, 134 and 135, 1988; Nos. 59, 83, 84, 93, 163 and 164, 1989; Nos. 56, 84 and 119, 1990; and Nos. 2 and 00, 1991.\n\nNOTES ABOUT SECTION AND POINT HEADINGS\n\n1. Immediately after Schedule 5 of this Act comes into operation on 1 July 1991, the heading to point 41-G3 in section 41 of the Veterans’ Entitlements Act 1986 is altered by omitting “and respite care”.\n2. Immediately after Schedule 3 of this Act comes into operation on 1 July 1991:\n\n(a) the headings to subsections 52n (1) and (2) are altered by omitting “Residence” and substituting “Retirement village residence”;\n\n(b) the heading to section 52s is altered by inserting “or granny flat or granny flats” after “villages”;\n\n(c) the heading to section 52t is altered by inserting “or granny flat” after “village”;\n\n(d) the heading to section 52u is altered by inserting “or granny flat” after “village”;\n\n(e) the heading to section 52v is altered by inserting “or granny flats” after “villages”;\n\n(f) the heading to section 52w is altered by inserting “or granny flat” after “village”;\n\n(g) the heading to section 52x is altered by inserting “or granny flat” after “village”.\n\n\\[Minister’s second reading speech made in—\n\nHouse of Representatives on 16 May 1991\n\nSenate on 29 May 1991\\]","sortOrder":14}],"analysis":{"kimi_summary":{"_metrics":{"completionTokens":652},"content_quality":"ok","complexity_score":8,"scope_assessment":{"changed":false,"description":"The legislation remains focused on its original purpose: facilitating the transition from the old to the rewritten Veterans' Entitlements Act. While it contains extensive amendments, these are consequential to the rewrite rather than an expansion of scope. The Act does not introduce new categories of beneficiaries or new types of entitlements beyond what was contemplated in the rewrite."},"complexity_factors":["Extensive cross-referencing between old and new versions of the Veterans' Entitlements Act (former Part III vs new Part III)","Multiple schedules (5) with detailed amendments across numerous sections and subsections","Complex indexation formulas with CPI calculations, reference quarters, base quarters, and rounding rules","Deemed income provisions requiring mathematical calculations for money not invested or invested at low rates","Numerous defined terms and abbreviations (e.g., 'pension MBR', 'AVL', 'granny flat interest')","Conditional logic for different family situations (single, partnered, illness-separated, with/without dependent children)","Transitional provisions with specific date triggers (1 July 1991, 1 March 1991, 22 August 1990)","Interaction with other Commonwealth legislation requiring consequential amendments"],"plain_english_summary":"This legislation is a **transition and amendment Act** that supports the major rewrite of veterans' pension laws in 1991. It does three main things:\n\n**1. Smooths the transition to new laws (Part 2)**\n- Ensures existing pensioners keep their payments when the law changes on 1 July 1991\n- Converts old-style pensions (age service pension, invalidity service pension, wife's service pension, carer's service pension) to new equivalent pensions automatically\n- Allows pending claims and reviews to continue under the new system without starting over\n- Preserves various administrative decisions and arrangements made under the old law\n\n**2. Updates how pension amounts are calculated (Schedules 1 & 2)**\n- Introduces **automatic indexation** of pension rates, rent assistance, and income/asset thresholds based on the Consumer Price Index (CPI)\n- Adds new rules about **deemed income** — treating money that isn't earning interest (or is earning very little) as if it earns 10% per year for pension calculations\n- Expands the **pension loans scheme** and **granny flat** arrangements for retirement housing\n- Tightens rules about claiming maintenance for children\n\n**3. Tidies up terminology and cross-references (Schedules 3-5)**\n- Replaces outdated terms like \"wife's service pension\" and \"carer's service pension\" with \"wife service pension\" and \"carer service pension\"\n- Updates references to match the rewritten Veterans' Entitlements Act\n- Makes consequential amendments to other Acts (Social Security, Health Insurance, etc.) so they work with the new veterans' pension system\n\n**Who it affects:** Australian veterans receiving service pensions, their partners, and carers. The Act ensures no one loses their pension due to the law rewrite, while modernising how payments are calculated and adjusted over time."},"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"},"flash_summary":{"complexity_score":9,"scope_assessment":{"changed":true,"description":"Yes. Although the Act is presented as a transitional instrument for a rewrite, it substantially goes beyond mere drafting and transitional measures. It introduces enduring, substantive policy changes: (a) a comprehensive statutory CPI indexation regime (Division 21, Schedule 1) that moves many payment rates and thresholds to automatic formulaic increases; (b) new deemed/attributed income rules (Divisions 8A–8C, Schedule 2) that treat held cash, low‑yield deposits, loans and disposed assets as producing assumed returns for means testing (including high default assumed rates); (c) new treatment and valuation rules for granny‑flat interests and retirement‑village style arrangements; and (d) widespread re‑calibration of rate tables, rent assistance rules and assets/income thresholds across the Principal Act and numerous other Commonwealth Acts (Schedules 2–5). Those substantive changes alter eligibility, assessment and payment mechanics, so the instrument is both a transition vehicle and a vehicle for substantive policy change."},"complexity_factors":["Multiple Parts and 5 extensive Schedules with numerous amendments and insertions across the Principal Act","New Division 21 (Indexation) with detailed CPI indexation tables, multi‑step calculation method (ss 59c–59e), rounding rules and different indexation days for items","Insertion of substantive new Divisions (8A, 8B, 8C) applying deemed/attributed income rules, with assumed interest rates and exemption powers (many new defined terms and conditional steps)","Extensive additions and redefinitions in the interpretation section (new and altered defined terms: e.g. 'available money', 'deposit money', 'granny flat interest', 'financial institution', 'tax file number')","Many technical rate and assets tables replaced or added (Tables B, C, D, F, G and multiple sub‑tables across Schedule 5) — numerical detail increases implementation complexity","Widespread consequential amendments to other Acts (Schedule 4) creating inter‑legislative dependencies (Social Security Act, Health, Defence Service Homes Act, etc.)","Complex transitional mapping rules (old Part III provisions, determinations, unfinalised internal reviews, dates of effect and retrospective payment rules — Part 2, ss 7–12)","Nested conditional logic and exceptions (for example, ordering rules for which deposits are set off under s 46w(2); ministerial determinations to exclude items under ss 46z/46zf)","Frequent cross‑references and replacement of terminology across the Principal Act (wife/spouse → partner) requiring careful textual mapping"],"plain_english_summary":"**What this Act does (mechanically)\n\n- Updates how the Veterans’ Entitlements Act 1986 (the Principal Act) operates when the Principal Act’s Part III was rewritten, by: saving existing decisions and claims so they continue without people having to re‑apply (s 6–10); mapping old pension types and provisions to the new Part III equivalents (ss 4–5); and converting instruments, rates and determinations made under the old law to have effect under the new law (s 8).\n\n- Introduces a structured, statutory indexation system for many pension amounts and thresholds by inserting a new Division 21 into Part III of the Principal Act (Schedule 1, ss 59–59k). That Division: defines which amounts are indexed, sets indexation days and base/reference quarters, sets a formula for the indexation factor (rounding rules included), and prescribes how several related allowances are adjusted (ss 59b–59e, 59f–59k). The CPI (All Groups, weighted 8 capital cities) is the index used (Schedule 1, s 5na and s 59b).\n\n- Gives effect to a set of 1990 Budget measures and other policy adjustments to the Principal Act (Schedule 2). Key substantive changes here include:\n - New and changed definitions (for example, \"available money\", \"deposit money\", \"granny flat interest\", and a statutory definition linking \"tax file number\" to the Income Tax law) (Schedule 2, amendments to ss 5, 5h, 5l, 5q).\n - A new set of means‑test / deemed‑income rules that treat money not invested (or invested at low/no interest), loans, and disposed assets as producing a notional return for pension calculation purposes (Divisions 8A–8C inserted after Division 8; see new ss 46v–46zk). These provisions introduce \"assumed\" interest rates (normally 10% per year unless a lower rate is prescribed under linked Social Security provisions) for different classes of money, loans and deprived assets (ss 46za, 46zg, 46zk).\n - Treatment and valuation rules for \"granny flat\" interests and the application of retirement‑village style provisions to granny flat residents (Schedule 2, new ss 5l (8a), 52k, 52ka and many consequential amendments through Division 14).\n - Rework of the earnings credit account rules and caps (replacing prior section 49a and related mechanics) and detailed calculators for earnings credit accounting (Schedule 2, 49a, 49b changes).\n - Numerous changes to rent assistance, child add‑ons and rate calculators and explicit rate/value tables (Schedules 2 and 5).\n\n- Rolls out a large set of consequential and alignment amendments across the Principal Act and many other Acts to reflect the new Part III language, arithmetic and policy (Schedules 3 and 4): for example, replacing \"wife/spouse\" with \"partner\" or other terms, updating cross‑references, changing statutory calculators and examples, and aligning definitions used by Medicare, social security and other legislation with the rewritten VEA (Schedules 3 & 4).\n\n- Provides transitional rules to preserve internal reviews, unfinalised claims, pension loan scheme applications, hardship requests and administrative acts made under the former Part III so they continue under the new law (ss 9–16).\n\nWho is primarily affected\n\n- Veterans and their dependants who receive (or have applied for) service pensions, wife’s/partner pensions, carer pensions or related payments under the Veterans’ Entitlements Act. (See the savings and transitional provisions in Part 2, ss 6–16.)\n- The Department / Commission that administers veterans’ entitlements: it must convert old instruments and decisions to the new statutory framework, apply new indexation rules and implement the new deemed‑income rules (ss 7–9, Schedule 1, Schedule 2).\n- The Minister (and delegated officials): given powers to make determinations that can exclude certain income or loans from the deemed rules (see ss 46z, 46zf) and a role in approving places or persons for document lodgement (s 5t).\n- Other Commonwealth programmes and agencies (Social Security, Health, Administrative Appeals Tribunal, Defence Service Homes, etc.) because the Act amends cross‑references and eligibility rules in many Acts (Schedule 4).\n\nWhy it matters (practical consequences and mechanics)\n\n- Continuity for existing claimants: the Act prevents disruption of existing pensions, rates, decisions and pending reviews by treating them as if they were made under the new Part III (s 7–10). That reduces compliance costs and avoids the need for people to re‑apply.\n\n- Predictable, automatic indexation: many figures (maximum basic rates, child add‑ons, assets limits, rent assistance caps and particular free‑areas) are moved onto a statutory CPI indexation regime (Schedule 1, ss 59–59e). Mechanically, indexation is applied on set indexation days, using reference and base quarters and explicit rounding rules. This shifts the administrative burden from repeated amendment bills to formulaic updates but requires administrative calculation capability.\n\n- Deemed (attributed) income rules: the Act introduces rules that treat: (a) large amounts of on‑hand cash or low/no interest deposits as producing an assumed interest return (Division 8A, ss 46w–46za); (b) loans held by a person as attracting an assumed loan rate (Division 8B, ss 46zb–46zg); and (c) disposed assets as producing an assumed property return (Division 8C, ss 46zh–46zk). Mechanically these create a notional income number that feeds into means tests and can change pension rates or eligibility.\n\n- Granny‑flat and retirement‑village treatment: the Act defines and values granny‑flat interests and extends relevant retirement‑village rules to these interests (Schedule 2, new ss 5l (8a), 52k–52ka and related amendments). That changes which residents are treated as property owners for assets tests and how their assets are valued.\n\n- Specific floors, caps and rate changes: the Act increases some thresholds (for example, rent assistance triggers), sets earnings‑credit caps ($1,000 individual / $2,000 joint under new calculations), and replaces many rate tables with revised figures and examples (Schedules 2 and 5). These are mechanical changes to tables and calculators used to work out payments.\n\nPurpose claims and testing them against costs, incentives and trade‑offs\n\n- Claimed purpose: the Act is presented as a transitional vehicle and as a way to put pensions and thresholds on automatic indexation (see s 6 and Schedule 1, introductory material). The mechanical effect: indexing via CPI removes the need for frequent legislative uprating of many figures (ss 59–59e).\n - Costs and trade‑offs: indexation reduces parliamentary intervention but requires administrative systems that compute indexation factors, perform rounding rules, and update many cross‑linked tables — a one‑off implementation cost and on‑going systems burden (Schedule 1, ss 59c–59e). It may also create timing mismatches because different items index on different dates.\n\n- Claimed purpose: the Division 8A–8C provisions (Schedule 2) are described as preventing the sheltering of income by holding money on deposit or by moving assets off‑balance, by attributing assumed returns to such money or to loans and deprived assets (ss 46v–46zk).\n - Incentives and distributional effects: mechanically, those rules increase assessable income for means tests where a person holds significant cash, low‑yield deposits or certain loans/assigned assets. That raises the prospect that previously eligible pensioners will have higher notional income and may lose or have their pension reduced. The rules use high assumed rates (default 10% per year but linked to certain Social Security determinations) which can materially raise assessed income (ss 46za, 46zg, 46zk). That creates an incentive for claimants to restructure holdings differently (for example, more genuinely productive investments, or use permitted exceptions), and creates a monitoring/enforcement need for the Department (ss 46z, 46zf give the Minister discretion to exclude classes of money or loans).\n - Implementation risk: complexity of determining \"available money\" vs \"deposit money\" and ordering deposits by interest rate (s 46w (2)) will require record‑keeping and may create disputes at the time of assessment.\n\n- Claimed purpose: the savings and transitional provisions are to avoid administrative disruption when the law is rewritten (s 6–9).\n - Benefits and costs: these provisions reduce transition friction and legal uncertainty for affected veterans (benefit concentrated on existing recipients). The trade‑off is administrative complexity for the Department in converting old instruments, mapping old provisions to new ones and ensuring the correct dating of retrospective entitlements (ss 7–10).\n\nWho pays, who decides, and what behaviour changes\n\n- Who pays: Commonwealth (Treasury / Veterans’ Affairs) pays pension rates and absorb the administrative costs. Some pensioners may pay indirectly by losing part or all of a pension if deemed income rules increase their assessed income; others may gain from indexation or clarified entitlements.\n\n- Who decides: many operational decisions are left to the Commission (for example, to apply rate calculators, accept lodgement places or people, cancel/suspend pensions if instalments not drawn — s 56k) and to the Minister (power to make written determinations excluding specified income/loans from the deemed rules — ss 46z, 46zf). The Act also prescribes detailed formulae and tables which limit discretion for indexed amounts (Schedule 1, ss 59b–59e) while giving administrative decision points for transitional matters (Part 2) and exemptions.\n\n- Behavioural effects: claimants may change holdings or reporting behaviour to avoid being caught by the assumed returns rules (Divs 8A–8C). The Commission will need to update payment systems and communications (indexation schedule, new lodgement rules in s 5t). Some veterans living in granny‑flat arrangements will see different asset‑test outcomes and may restructure payments or contracts.\n\nImplementation and compliance burdens\n\n- Administrative work required is substantial: (a) rebuild payment calculators and IT systems to apply indexation formulae and rounding rules (Schedule 1); (b) implement deemed‑income calculations and the ordering rules for identifying \"income money\" (Schedule 2, ss 46w–46y); (c) update processes for converting old determinations to the new statutory forms (Part 2, ss 7–9); (d) map and update cross‑legislation references in Social Security and other Acts (Schedule 4).\n\n- Compliance burden on claimants: more detailed financial information will be needed (tax file numbers are formalised, definitions of accounts and deposit money are tightened — s 5q), and dispute points may arise over whether an amount is \"income money\", \"deposit money\", or a granny flat interest.\n\nConcentrated benefits, diffuse costs, and capture risk\n\n- Concentrated benefits: particular groups receive explicit adjustments — e.g. retirement village/granny flat residents, some boarders/retirees get rent assistance floors or special treatment (multiple schedule entries and examples in Schedules 2 & 5). These are targeted, narrow groups.\n\n- Diffuse costs: administrative costs and the potential fiscal impact of indexation (upward pressure on payments) are borne by the Commonwealth and diffuse across the budget. The deemed income rules may concentrate costs on particular pensioners holding certain asset types.\n\n- Capture/circumvention risk: the introduction of assumed rates (10% default) creates an incentive for technical responses or challenge; the Minister’s power to exempt classes of money/loans (ss 46z, 46zf) introduces an avenue for targeted exceptions which could attract lobbying. The technical complexity of tables and calculators can mean implementation errors or disputes, increasing tribunal appeals (AAT references are updated, s 175 (2)).\n\nKey sections to look at quickly (mechanical import):\n- Transitional / savings: ss 4–16 (Part 2).\n- Indexation system: Schedule 1 (ss 5na, 59–59k and CPI Indexation Table 59b).\n- Deemed income / assumed rates: Schedule 2, new Divisions 8A–8C (ss 46v–46zk).\n- Granny flat and retirement village treatment: Schedule 2 (ss 5l (8a), 52k–52ka) and consequential updates in Schedule 5.\n- Earnings credit account and caps: Schedule 2 (49a and 49b redesign).\n- Lodgement rules and practical notes: s 5t and s 5u (Schedule 5 insertions).\n\nThis is a technical, code‑level transitional instrument that both preserves existing entitlements and introduces substantial new mechanics (indexation and deemed income rules) that change how means tests and rate calculators work. For practical application, the Department and claimants will need clear worked examples and upgraded IT/calculation systems (see many revised and new rate tables and examples in Schedules 1, 2 and 5)."},"summary":{"complexity_score":7,"scope_assessment":{"changed":false,"description":"The Act's scope is consistent with its stated purpose as a transitional and consequential amendments Act accompanying the Veterans' Entitlements Amendment Act 1991. It does exactly what its title suggests: manages the transition, preserves existing entitlements, implements indexation machinery, and makes consequential amendments. There is no evidence of scope creep beyond the original intent of facilitating a smooth legislative rewrite."},"complexity_factors":["Operates as a transitional/amending statute requiring cross-referencing with the Veterans' Entitlements Act 1986 to understand full effect — it cannot be read in isolation","Dual legislative framework: references both 'former Part III' and 'new Part III' of the principal Act, requiring readers to understand two different versions of the law simultaneously","Multiple specific section cross-references (e.g., subsections 46(1), 43(6), 59(1), 51(2), 53(1), 122(2), 124(1), 125(2)) that are meaningless without the parent legislation","Detailed indexation machinery in Schedule 1 with nested tables, multiple rate calculators, 17+ separately indexed amounts, CPI reference quarter mechanics, and rounding rules","Temporal complexity: provisions operate across different time periods (before 1 July 1991, on 1 July 1991, and after), with some decisions having retrospective effect (date of effect before 1 July 1991)","Fringe benefits transitional rule (section 17) involves a hypothetical counterfactual test ('would have been a prescribed person if...') that is logically complex","Multiple schedules (5 total) amending the principal Act and other Acts, creating a legislative jigsaw puzzle","Technical pension rate calculators with multiple categories (single/partnered, property owner/non-property owner, with/without dependent children, blinded veterans, widows) add significant computational complexity"],"plain_english_summary":"## Veterans' Entitlements (Rewrite) Transition Act 1991 — What It Does and Who It Affects\n\n### The Big Picture\nThis Act is essentially a **legal bridge** — it was created to manage the switchover when the Veterans' Entitlements Act 1986 was significantly restructured on 1 July 1991. Think of it like a removalist company that makes sure nothing gets lost when you move house.\n\n### Who Does This Affect?\n- **Veterans and their families** receiving service pensions (regular payments for those who served in the military)\n- **Widows, carers, and spouses** of veterans receiving related pensions\n- Anyone who had **pending claims, applications, or reviews** under the old rules when the new rules kicked in\n\n### What Does It Actually Do?\n\n**1. Saves existing pensions (no need to re-apply)**\nIf you were already getting a pension under the old rules, you automatically kept it under the new rules. Your existing pension approval just converted across — you didn't have to lodge a new claim.\n\n**2. Keeps pending claims alive**\nIf you had lodged a claim but it hadn't been decided yet when the new rules started, your claim carried over automatically. You didn't have to start again.\n\n**3. Converts old decisions into new ones**\nAll formal decisions (approvals, directions, determinations) made under the old rules were treated as if they had been made under the new rules — keeping them valid.\n\n**4. Protects unfinished review processes**\nIf you had asked for your case to be reviewed internally (i.e., you disagreed with a decision and asked for it to be reconsidered), that review kept going under the new system.\n\n**5. Preserves other ongoing arrangements**\nThings like:\n- Pension being paid to an agent (someone else collecting on your behalf)\n- Requests to stop your pension\n- Tax deductions from pension payments\n- Applications under the pension loans scheme (a scheme allowing asset-rich but cash-poor pensioners to borrow against their property)\n- Hardship rules applications (for people in financial difficulty)\n...all carried over automatically.\n\n**6. Updates pension payment rates (indexation)**\nThe Act introduced a formal system to keep pension rates in line with the cost of living, using the **Consumer Price Index (CPI)** — the official measure of inflation. This means pension amounts are regularly adjusted so they don't lose value over time.\n\n**7. 1990 Budget changes**\nThe Act also implemented changes announced in the 1990 Federal Budget, including rules about how interest on savings (or money not invested) is counted when assessing eligibility for fringe benefits (extra government concessions like cheaper healthcare and utilities).\n\n### Bottom Line\nIf you were a veteran or family member receiving or claiming benefits on 30 June 1991, this Act made sure the legal rewrite of the veterans' entitlements law on 1 July 1991 didn't disrupt your payments, claims, or rights. Everything carried over smoothly — the law changed, but your entitlements were protected."}},"importantCases":[],"_links":{"self":"/api/acts/veterans-entitlements-rewrite-transition-act-1991","history":"/api/acts/veterans-entitlements-rewrite-transition-act-1991/history","analysis":"/api/acts/veterans-entitlements-rewrite-transition-act-1991/analysis","conflicts":"/api/acts/veterans-entitlements-rewrite-transition-act-1991/conflicts","importantCases":"/api/acts/veterans-entitlements-rewrite-transition-act-1991/important-cases","documents":"/api/acts/veterans-entitlements-rewrite-transition-act-1991/documents"}}