(1) A DFISA recipient may, by document lodged at an office of the Department in Australia in accordance with section 5T, request the Commission to make deductions from instalments of DFISA for the purpose of making payments included in a class of payments approved by the Minister.
(2) If such a request is made, the Commission may make the deductions and, if it does so, is to pay the amounts deducted in accordance with the request.
(3) The Minister may, by writing, approve classes of payments for the purposes of this section.
(4) An approval is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.
19 Subsection 122D(3)
Repeal the subsection.
Note: If item 4 of Schedule 1 to the Veterans’ Entitlements Amendment (Direct Deductions and Other Measures) Act 2004 does not commence, this item does not commence at all. See item 3C of the table in subsection 2(1).
20 Section 122E
Repeal the section.
Note: If item 4 of Schedule 1 to the Veterans’ Entitlements Amendment (Direct Deductions and Other Measures) Act 2004 does not commence, this item does not commence at all. See item 3C of the table in subsection 2(1).
21 At the end of section 199
Add:
; and (e) payments made under Part VIIAB, and payments and benefits made under regulations made under that Part.
22 Point SCH6‑C1 of Schedule 6
Repeal the point, substitute:
Application
SCH6‑C1 Points SCH6‑C2 to SCH6‑C11 and point SCH6‑C15 apply to a person who is in receipt of a service pension or an income support supplement. Points SCH6‑C13 and SCH6‑C14 apply only to a person who is in receipt of a service pension. Points SCH6‑C14B and SCH6‑C14C apply only to a person who is in receipt of an income support supplement.
23 Point SCH6‑C2 of Schedule 6
Omit “to SCH6‑C15 (which apply only to a person who is in receipt of a service pension)”, substitute “and SCH6‑C14 (which apply only to a person who is in receipt of a service pension) and points SCH6‑C14B and SCH6‑C14C (which apply only to a person who is in receipt of an income support supplement),”.
24 Paragraph SCH6‑C7(c) of Schedule 6
Repeal the paragraph, substitute:
(c) whether or not the person, or the person’s partner, receives one or more of the following payments:
(i) disability pension;
(ii) permanent impairment compensation;
(iii) adjusted disability pension.
25 Point SCH6‑C7 of Schedule 6 (note 2)
After “For”, insert “adjusted disability pension and”.
26 Point SCH6‑C12 of Schedule 6
Omit “to SCH6‑C15”, substitute “and SCH6‑C14”.
27 After point SCH6‑C14 of Schedule 6
Insert:
Application
SCH6‑C14A Points SCH6‑C14B and SCH6‑C14C apply only to a person who is in receipt of an income support supplement. If such a person, or the partner of such a person, receives adjusted disability pension, the amount of rent assistance worked out under Table C‑2 may be reduced under point SCH6‑C14B.
Note: For adjusted disability pension see point SCH6‑C16.
Effect of adjusted disability pension on rate of rent assistance
SCH6‑C14B This is how to work out the effect of a person’s adjusted disability pension on the person’s rate of rent assistance:
Method statement
Step 1. Work out the annual rate of the person’s adjusted disability pension: the result is the person’s disability income.
Note 1: For adjusted disability pension see point SCH6‑C16.
Note 2: For the treatment of the amount of adjusted disability pension of members of a couple see point SCH6‑C14C.
Step 2. Work out the person’s rent assistance free area (see point SCH6‑C15 below).
Step 3. Work out whether the person’s disability income exceeds the person’s rent assistance free area.
Step 4. If the person’s disability income does not exceed the person’s rent assistance free area, the person’s rate of rent assistance worked out under Table C‑2 is not affected.
Step 5. If the person’s disability income exceeds the person’s rent assistance free area, take the person’s rent assistance free area away from the person’s disability income: the result is the person’s disability income excess.
Step 6. Multiply the person’s disability income excess by 0.4: the result is the rent assistance reduction amount.
Step 7. Take the person’s rent assistance reduction amount away from the rate of rent assistance worked out under Table C‑2: the result is the person’s rate of rent assistance.
Disability income
SCH6‑C14C If a person is a member of a couple, the person’s disability income for the purposes of SCH6‑C14B is worked out as follows:
(a) if each member of the couple receives adjusted disability pension—by adding the couple’s annual rates of adjusted disability pension and dividing the result by 2;
(b) if only one member of the couple receives adjusted disability pension—by dividing the member’s annual rate of adjusted disability pension by 2.
Note: For adjusted disability pension see point SCH6‑C16.
28 Point SCH6‑C16 of Schedule 6
Insert:
adjusted disability pension has the same meaning as in section 118NA.
Part 2—Amendment of other Acts
A New Tax System (Family Assistance) Act 1999
29 Subsection 3(1) (paragraph (a) of the definition of receiving)
After “subsections”, insert “23(1D),”.
30 After paragraph 7(h) of Schedule 3
Insert:
(ha) Defence Force Income Support Allowance under Part VIIAB of the Veterans’ Entitlements Act 1986;
Income Tax Assessment Act 1936
31 At the end of subsection 202EA(5)
Add:
; (j) Defence Force Income Support Allowance under Part VIIAB of the Veterans’ Entitlements Act 1986.
Income Tax Assessment Act 1997
32 Subsection 52‑65(1)
After “pension bonus”, insert “or DFISA bonus”.
33 Subsection 52‑65(1A)
After “Part IIIAB”, insert “, or DFISA bonus under Part VIIAB,”.
34 Section 52‑65 (after table item 5.1)
Insert:
5A.1
Defence Force Income Support Allowance: the social security pension or social security benefit that is also payable to you on the day this allowance is payable to you is exempt from income tax under section 52‑10
Exempt
Not applicable
35 Section 52‑75 (after table item 5)
Insert:
5A
Defence Force Income Support Allowance
Part VIIAB
Not applicable
Social Security Act 1991
36 At the end of paragraph 8(8)(y)
Add:
or (x) a payment under Part VIIAB (DFISA) of that Act (including a payment made under regulations made under that Part);
37 Subsection 23(1)
Insert:
Defence Force Income Support Allowance or DFISA means Defence Force Income Support Allowance under Part VIIAB of the Veterans’ Entitlements Act.
38 After subsection 23(1C)
Insert:
(1D) If, on a day that is on or after 20 September 2004:
(a) adjusted disability pension (within the meaning of section 118NA of the Veterans’ Entitlements Act) is payable to a person or a person’s partner; and
(b) apart from this subsection, a social security pension or social security benefit is not payable to the person, but only because the rate of the pension or benefit would be nil; and
(c) the rate of the social security pension or social security benefit would not be nil if the 2 assumptions (that relate to the adjusted disability pension) referred to in step 2 of method statement 1 in subsection 118NC(1) of the Veterans’ Entitlements Act were made;
then, despite any other provision of this Act:
(e) the social security pension or social security benefit is taken to be payable to the person on that day; and
(f) the person is taken to be receiving the social security pension or social security benefit on that day.
Note: This subsection overrides provisions of this Act (for example, sections 44 and 98) that provide that a social security pension or social security benefit is not payable where the rate of the pension or benefit would be nil, but only where the rate would not be nil if the 2 assumptions referred to in paragraph (c) were made.
39 At the end of paragraph 92C(e)
Add:
Note: Even though the person may not have actually received an amount of social security pension or benefit because the rate of the pension or benefit was nil, in some cases the person will be taken to have received the pension or benefit if adjusted disability pension (within the meaning of section 118NA of the Veterans’ Entitlements Act) was payable to the person or the person’s partner: see subsection 23(1D) of this Act.
40 At the end of paragraph 92C(f)
Add:
; or (iii) DFISA bonus under Part VIIAB of the Veterans’ Entitlements Act.
41 After subparagraph 1134(1)(e)(i)
Insert:
(ia) if DFISA under Part VIIAB of the Veterans’ Entitlements Act is payable to the person—the maximum payment rate less the DFISA rate; or
42 Paragraph 1134(1)(e)
Omit “lower”, substitute “lowest”.
Part 3—Application and transitional provisions
43 Application of amendments in this Schedule
(1) The amendments made by items 1, 2, 22, 23, 24, 25, 26, 27 and 28 of this Schedule apply in relation to payments under the Veterans’ Entitlements Act 1986 payable on or after 20 September 2004.
(2) The amendment made by item 29 of this Schedule applies in relation to social security payments under the Social Security Act 1991 payable on or after 20 September 2004.
44 Transitional: claims made for social security pension or benefit that are not determined before 20 September 2004
If:
(a) on a day (the claim day) that is before 20 September 2004, a person made a claim for a social security pension or a social security benefit; and
(b) on the claim day, adjusted disability pension (within the meaning of section 118NA of the Veterans’ Entitlements Act 1986 (as amended by this Schedule)) was payable to the person or the person’s partner; and
(c) before 20 September 2004, a determination on the claim had not been made; and
(d) apart from this item, the claim would be rejected on or after 20 September 2004, but only because the rate of the pension or benefit would be nil; and
(e) the rate of the pension or benefit would not be nil if the 2 assumptions (that relate to the adjusted disability pension) referred to in step 2 of method statement 1 in subsection 118NC(1) of that Act (as amended by this Schedule) were made;
then, despite any provision of the Social Security (Administration) Act 1999, the claim is taken to have been made on 20 September 2004.
Schedule 3—Rent assistance for war widows and war widowers
Veterans’ Entitlements Act 1986
1 Subclauses 4(3) and (4) of Schedule 6
Repeal the subclauses.
2 Subpoint SCH6‑A1(4) of Schedule 6 (after step 2 of method statement 3)
Insert:
Step 2A. Work out the amount per year (if any) for rent assistance using MODULE C below.
3 Subpoint SCH6‑A1(4) of Schedule 6 (step 5 of method statement 3)
Repeal the step, substitute:
Step 5. Add:
(a) the ceiling rate; and
(b) any amount obtained under step 2A; and
(c) any amount obtained under step 3; and
(d) any amount obtained under step 4.
The result is the revised rate.
4 Subpoint SCH6‑A1(4) of Schedule 6 (step 6 of method statement 3)
Omit “ceiling” (wherever occurring).
5 Subpoint SCH6‑A1(5) of Schedule 6 (after step 1 of method statement 4)
Insert:
Step 1A. Work out the amount per year (if any) for rent assistance using MODULE C below.
6 Subpoint SCH6‑A1(5) of Schedule 6 (after paragraph (a) of step 4 of method statement 4)
Insert:
(aa) any amount obtained under step 1A; and
7 Subpoint SCH6‑A1(6) of Schedule 6 (step 9 of method statement 5)
Repeal the step, substitute:
Step 9. Work out the person’s ceiling rate in accordance with points SCH6‑A4 to SCH6‑A9.
Step 9A. Add:
(a) the ceiling rate; and
(b) any amount obtained under step 2; and
(c) any amount obtained under step 3.
The result is the increased rate.
8 Subpoint SCH6‑A1(6) of Schedule 6 (step 10 of method statement 5)
Omit “ceiling rate (see Step 9)”, substitute “rate (see step 9A)”.
9 Subpoint SCH6‑A1(7) of Schedule 6 (after step 1 of method statement 6)
Insert:
Step 1A. Work out the amount per year (if any) for rent assistance using MODULE C below.
10 Subpoint SCH6‑A1(7) of Schedule 6 (after paragraph (a) of step 4 of method statement 6)
Insert:
(aa) any amount obtained under step 1A; and
11 Point SCH6‑C2 of Schedule 6
After “maximum basic rate” (wherever occurring), insert “or ceiling rate”.
12 Point SCH6‑C3 of Schedule 6
After “maximum basic rate”, insert “or ceiling rate”.
13 Point SCH6‑C4 of Schedule 6
After “maximum basic rate” (wherever occurring), insert “or ceiling rate”.
14 Point SCH6‑C4A of Schedule 6
After “maximum basic rate”, insert “or ceiling rate”.
Note: If item 45 of Schedule 1 to the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004 does not commence, this item does not commence at all. See item 5 of the table in subsection 2(1).
Schedule 4—Funeral benefits
Veterans’ Entitlements Act 1986
1 Subsection 98B(2)
Omit “$572”, substitute “$1,000”.
2 Paragraph 99(4)(a)
Omit “$572”, substitute “$1,000”.
3 Subsection 100(2)
Omit “$572”, substitute “$1,000”.
4 Application
(1) The amendments made by items 1 and 2 apply in relation to the deaths of veterans occurring on or after the commencement of those items.
(2) The amendment made by item 3 applies in relation to the deaths of dependants occurring on or after the commencement of that item.
Schedule 5—Minesweeping and bomb/mine clearance service
Veterans’ Entitlements Act 1986
1 Section 6 (after table item 4)
Insert:
4A
6DA
Operational service—minesweeping and bomb/mine clearance service