993-94-95
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
SENATE
VETE~NS’ AFFAIRS~~~
(1995-96 BUDGET MEASURES)
LEGISLATION AMENDMENT BILL 1995
EXPLANATORY MEMORANDUM
(Circulated by authority ofthe Minister for Veterans’ Affairs,
The Honourable Con Sciacca MP)
THIS MEMORANDUM TAKES ACCOUNT OF AMENDMENTS MADE BY
THE HOUSE OF REPRESENTATIVES TO THE BILL AS INTRODUCED
75428
Cat. No. 95 555 6
ISBN 0644 347791
HI~DI~I D~HI~U D
9 780644 347792
Veterans’ Affafrs (1995-96 Budget Measures) Legislation Amendment Bill 1995
TABLE OF CONTENTS
OUTLINE AND PURPOSE
Financial Impact
v
Commencement
1
Schedules
1
SCHEDULE 1
2
AMENDMENTS OF THE DEFENCE SERVICE HOMES ACT 1918
SCHEDULE 2
AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986 RELATING TO
PRELIMINARY ISSUES CONCERNING ELIGIBILITY FOR PAYMENTS
24
SCHEDULE 3
AMENDMENT OF THE VETERANS’ ENTITLEMENTS ACT 1986 RELATING TO
PENSIONS OTHER THAN SERVICE PENSIONS
29
SCHEDULE 4
AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986 RELATING TO
SERVICE PENSIONS
32
SCHEDULES
CONSEQUENTIAL AMENDMENT OF THE SOCIAL SECURifY ACT
RELATING TO SERVICE PENSIONS
1991
37
SCHEDULE 6
AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986 RELATING TO
INCOME SUPPORT SUPPLEMENT
39
SCHEDULE 7
AMENDMENT OF THE VETERANS’ ENTITLEMENTS ACT 1986 RELATING TO
MEDICAL AND OTHER TREATMENT
42
SCHEDULE 8
AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986 RELATING TO
SENIORS HEALTH CARD
44
Veterans ‘Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995
OUTLINE AND PURPOSE
This Bill contains amendments necessary to implement some elements of the Budget
package for the Veterans’ Affairs portfolio. A second bill covering the remaining
Budget initiatives requiring legislative amendments will be introduced at a later date.
In addition to the changes to be included in the two bills, some of the initiatives in this
year’s Budget package do not require legislation.
Complementary to a comprehensive program of events commemorating the 50th
anniversary of the end of World War II, this budget package responds to the health
and housing needs of the ageing veteran community.
Younger Veterans benefit from this Package with the introduction of automatic
treatment for all veterans with post traumatic stress disorder.
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A large part of the Bill involves changes to the Defence Service Homes Act 1918.
These changes improve the flexibility of current housing loan arrangements. Fulltime members of the World War II Women’s Services are also to become eligible for
assistance under the Defence Service Homes Act.
No new grants of service pension will be made to partners of service pensioners
unless those partners are over 50 years or they have dependent children. This reflects
contemporary attitudes to dependency and generational changes in women’s work
force participation. Similar changes have already been made to both the partner
allowance and the wife pension which are administered by the Department of Social
Security.
Assistance under the Deftnce Service Homes Act where title is to be held as tenants
in common
This proposal will allow assistance under the Defence Service Homes Scheme to
eligible persons where the title to the property is held, or to be held, with other
persons as tenants in common.
Eligibility for Defence Service Homes benefits to full-time members of the World
War II Women ‘s Services
This measure will provide Defence Service Homes eligibility to full-time members of
the World War II Women’s Services.
Veteran.s ‘Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995
Assignment of Defence Service Homes loan entitlement to certain providers of
accommodation
These proposed amendments will increase appropriate housing options and assist
elderly clients to remain independently housed while encouraging them to move to
accommodationmore appropriate for their needs.
Assistance under the Defence Service Homes Act where title is a company title or
leasehold title
This amendment will provide for the issue of certificates of entitlement in respect of
holdings which are held under company titles or forms of leasehold title and will
provide clients with greater freedom of choice in their housing options.
Cancellation of subsidy in relation to deceased estates where there is no surviving
spouse
This amendment provides for the cancellation of subsidy from a date three months
after the death of the last surviving member of an eligible couple if the subsidised
advance has not already been discharged.
Generic certificates under the Defence Service Homes Act
This amendment allows certificates to be issued for any of the purposes listed in the
legislation, rather than for specific purposes.
Eligibilityfor insuring dwellings under the Defence Service Homes Act
This amendment will allow all eligible persons to insure their homes under the
Defence Service Homes Insurance Scheme irrespective of whether they have received
a Defence Service Homes loan on the home. It also repeals the ‘insurer of last resort’
provision.
Re-definition of ternis and stabiisation of interest rates for further advances under
the Defence Service Homes Act
The amendments make all existing loans and any loan entitlements that still remain in
respect of eligible persons, portable for the remainder of their current /original term
and stabilises the interest rate at the rate of the current/original loan as appropriate.
This will assist clients to remain independently housed while encouraging them to
move to accommodation more appropriate to their needs.
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Veterans ‘Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995
Eligibiityfor pensions
Various aspects of pension eligibility will be clarified, particularly in relation to
allotment for duty and operational service. The central thrust of the amendments is to
do no more than enshrine the existing intention and long standing policy. However,
the operational service definition will be extended to include service by persons who
were assigned for service in Korea but served only in Japan.
Adjustment of disability pension lump sum arrears
The amendments establish a new methodology for the calculation of lump sum arrears
of disability pension. Decisions to grant or increase disability pensions are always
back-dated, in some circumstances even to a date earlier than the date of the claim.
Arrears of pension are therefore always payable. These arrears are already reduced to
take account of any excess payment to the pensioner of an income support payment
which may have been in payment during the arrears period. The new methodology
provides that the arrears payment be reduced to take account of any excess payment of
an income support payment during the arrears period.
If the veteran has a partner who has been receiving a social security pension or an
income support payment, the new methodology will result in the calculation of a
reduced amount of arrears. The reduction will equal the amount of the pension or
payment that would not have been paid to the veteran’s partner if the veteran had been
receiving the disability pension (or receiving it at the higher rate) during the penod of
the arrears.
Service pension amendments
Minimum agefor non-veteran partner service pensioners
Generally there will be no new grants ofpartner service pension to non-veterans under
the age of 50 years without dependent children. However, partners of special rate
(T&PI) pensioners/service pensioners will continue to be eligible.
In certain circumstances partners under 50 years without dependent children will
qualify for DSS partner allowance.
Existing partner service pensioners will not be affected, even if they are under 50
years and have no dependent children. Those under 50 years who are granted a
pension will not lose, it when the children cease to be dependent.
Retention of eligibility when veteran ceases to be paid
These amendments allow existing partner service pensioners to retain their eligibility
in certain circumstances when the veteran ceases to be paid. An example of the type
of circumstances which may be involved is where the veteran may have lost
payability for a period because ofthe compensation recovery provisions.
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111
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Veterans ‘Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995
Limit partnered service pensioners to the married rate
This initiative will restrict the rate of service pension for all partnered people to the
married rate. A savings provision will protect existing pensioners on this rate.
Extend eligibility to certain partners ofveterans and deceased veterans
Non-veterans, including widows and widowers, will be eligible for a partner service
pension if they would qualify for an age pension and if their partner or deceased
partner is or was a veteran with qualifying service (that is if their partner or deceased
partner would be eligible for a service pension if old enough and alive).
In come support supplement
Two changes are made to the provisions relating to the income support supplement.
Eligibility for income support supplement will be extended to war widows and
widowers who have pensionerpartners.
The warwidows or widowers pension will be disregarded as income in the calculation
of bereavement payments
Provision of automatic treatment entitlement for veterans suffering from post
traumatic stress disorder
-
This amendment extends automatic treatment eligibility for all veterans suffering
from post-traumatic stress disorder.
This proposal assures the provision of appropriate early treatment to veterans for
psychiatric problems brought on by post-traumatic stress disorder. Such early
intervention in post-traumatic stress disorder cases greatly increases the likelihood of
successful treatment outcomes.
Extension of eligibility for Seniors Health Card issued by the Department of
Veterans ‘Affairs
Eligibility for the Seniors Health Card from the Department of Veterans’ Affairs is
being extended to certain widow/ers and non~illnessseparated spouses ofveterans.
Under current provisions these people are forced to alternate between DSS and DVA
for the issue of a Seniors Health Card and Pensioner Concession Card when assets
cause loss of a service pension or income support supplement.
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Veterans ‘Affairs (1995-96Budget Measures) Legislation Amendment Bill 1995
Financial Impact
Amendment of eligibility for income support and compensation payments under the
Veterans’ Entitlements Act is estimated to save $1.637m in
1995-96, $l.734m in
1996-97, $l.678m in 1997-98 and $1.612m in 1998-99.
Setting the miilimum age for partner service pension for non-veterans at 50 years is
estimated to save $0.857m in 1995-96, $3.175m in 1996-97, $4.81 im in 1997-98 and
$6.291m in 1998-99.
Provision of assistance under the Defence Service Homes Act where title is to be held
as tenants in common is estimated to have no financial impact.
Provision of eligibility for full-time members of the World War II Women’s Services
is estimated to cost $0.002m in 1995-96, $0.130m in 1996-97, $0.258m in 1997-98
and $0.386m in 1998-99.
Allowing the assignment of a Defence Service Homes loan entitlement to certain
providers of accommodation is estimated to cost $0.025m in 1995-96, $0M46m in
1996-97, $0.088m in 1997-98 and $0.125m in 1998-99.
Provision of assistance under the Defence Service Homes Act where title is a
company title or leasehold title is estimated to have no financial impact.
Cancellation of subsidy in relation to deceased estates where there is no surviving
spouse is estimated to save $0.264m in 1995-96, $0.3 14m in 1996-97, $0.340m in
1997-98 and $0.366m in 1998-99.
Issuing generic certificates under the Defence Service Homes Act is estimated to save
$0.054m in 1995-96, $0.091m in 1996-97, $0.091m in 1997-98 and $0.091m in 199899.
Extension of the pool of persons eligible to insure dwelling houses under the Defence
Service Homes Act is estimated to have no financial impact.
Re-definition of terms and stabilisation of interest rates for further advances under the
Defence Service Homes Act is estimated to cost $0.024m in 1995-96, $0.028m in
1996-97, $0.040m in 1997-98 and $0.044m in 1998-99.
The extension of eligibility for the Seniors Health Card issued by the Department of
Veterans’ Affairs is estimated to have no financial impact.
That part of the improved bereavement payment arrangements package which relates
to disregarding war widow/er pension as income in the calculation of bereavement
payment is estimated to cost $0.067m in 1995-96, $0.013m in 1996-97, $0.013m in
1997-98 and $0.013m in 1998-99.
Veterans’Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995
Provision ofautomatic treatment entitlement for veterans suffering from
post traumatic stress disorder and related co-morbidities is expected to cost $O.230m
in 1995-96, $0.460m in 1996-97, $0.460m in 1997-98 and $O.460m in 1998-99.
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Adjustment of disability pension lump sum arrears where Social Security pension or
income support supplement has been paid to the veteran’s partner during the arrears
period is estimated to save $1.021m in 1995-6, $1.45m in 1996-97, $1.49m in 199798 and $1.54m in 1998-99.
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vi
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Veterans ‘Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995
CLAUS~,
Short Title
Clause 1 sets out how the Act is to be cited.
Commencement
Clause 2 sets out the various commencement dates of the provisions in the Act. These
will be explained in more detail as each topic is explained.
Schedules
Clause 3 provides that the Acts specified in the Schedules are amended in accordance
with the applicable items in the Schedules.
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Veterans ‘Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995
SCHEDU1
Amendments of the Defence Service HomesAct 1918
Overview
These amendments to the Defence Service Homes Act 1918 (DSH Act) involve a
number of separate policy issues. This explanatory memorandum deals with each
issue separately. The issues are:
assistance where title is to be held as tenants in common;
eligibility for full-time members of World War II Women’s Services;
assignment of entitlement in certain circumstances;
assistance where the title, to the property is a company title or certain types of
leasehold title;
cancellation of subsidy in relation to deceased estates where there is no surviving
spouse;
the issue of generic certificates of entitlement;
extension of insurance to all eligible persons; and
re-defining the terms and stabilising the interest rates for further advances.
Commencement
Subclause 2(1) provides that items 9, 48,49, 51, and 60 commence on Royal Assent.
Subclause 2(2) provides that Schedule I (other than items 9, 48, 49, 51, and 60) is
taken to have commenced on 1 July 1995.
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Veterans’ Affairs (1995-96 Budget Measures) LegislationAmendment Bill 1995
Schedule 1 Issue A
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Tenants in common Overview
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These amendments remove the current restriction on issuing a certificate of
entitlement to an eligible person and the spouse of that person where the title of the
holding in respect of which an advance is sought is held as tenants in common.
Background
Section 17 of the DSH Act provides for the issue of a certificate of entitlement for
subsidised loans to eligible persons as described in section 4 of the Act. Section 4A
provides for an eligible person and the spouse of that person to be treated together as
an eligible person for the purposes of the DSH Act. This provision allows certificates
of entitlement to be issued in the joint names of the eligible person and his or her
spouse.
However, section 4A also provides that this condition will not apply if the land or the
land and the dwelling house is or are owned by the eligible person and his or her
spouse otherwisethan as joint tenants.
To date, assistance under the Defence Service Homes Scheme has been available
where the title to the subject property is held in either single tenancy of the eligible
person or in joint tenancy with the spouse or other eligible persons, but not as tenants
in common. There are a small but increasing number of eligible persons and their
spouses applying for assistance who have been previously married and each have
children from previous marriages. It is not uncommon in a number of these cases that
each person may wish to make provision for their interest in the property to be left to
their own children rather than the spouse.
Explanation of changes
A certificate of entitlement will now be able to be issued to an eligible person who is
seeking a subsidised advance in respect of a holding which is held with another person
as tenants in common.
In order to ensure that there is no leakage of an eligible person’s loan benefit to
another where the title to the holding is held as tenants in common there is a
requirement that the value of the eligible person’s tenancy must be at least equal to the
amount ofthe subsidised advance.
Explanation of items
Item 6 adds a new note at the end of subsection 4(1). This note specifies that an
interest in a holding may be a joint interest in accordance with new section 4AB
which is inserted by item 14.
Item 14 inserts a new section 4AB which deals with joint ownership.
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Veterans’Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995
Subsection 4AB(1) lists the various kinds of property that can be held by a person as a
joint tenant or tenant in common.
Subsection 4AB(2) provides that dwelling-house includes a reference to a dwellinghouse that is built on land, suburban holding or a unit that is held by a person as a
joint tenant or tenant in common.
Subsection 4AB(3) specifies that reference to a purchaser or borrower includes a
reference to a person who is a purchaser or borrower as a joint tenant or tenant in
common.
A new note is added to the end of subsection 4AB to give a cross-reference to new
section 1 7A, being inserted by item 20.
Item 20 inserts a new section 17A which deals with the criteria for the issue of a
certificate of entitlement in the case ofjoint ownership.
Subsection 1 7A(1) provides that where the interest or right is in the form of a joint
tenancy, the Secretary must not issue a certificate of entitlement under this Part,
unless satisfied that the application was made by an eligible person and his or her wife
or husband who are treated together as an eligible person for the purposes of this Act,
or are both eligible by virtue oftheir service.
Subsection 1 7A(2) makes it clear that the Secretary is not to issue a certificate of
entitlement under this Part to an applicant whose interest or right is in the form of a
tenany in common unless satisfied that at the time the application was lodged, the
value of the applicant’s interest or right is at least equal to the amount of the
subsidised advance.
Subsection 1 7A(3) specifies that for the purposes of this section, reference to an
‘interest or right’ means the applicant’s interest or proposed interest concerned in
respect of a holding, or the applicant’s right or proposed right of residence concerned
in a respect of a retirement village.
The amendments described in items 23, 24, 25. 27 and 28 below are necessary
because under a tenancy in common, there is more than one person who holds an
interest. Where a holding is held as tenants in common, the security will be taken over
all of the holding, not just the eligible person’s interest.
Item 23 amends paragraph 18(1)(g) by omitting and substituting new paragraphs
I 8(1)(g)(i) and (ii). Paragraph 1 8(l)(g)(ii) provides that the Secretary shall not issue a
certificate of entitlement in relation to subsidy on an advance unless satisfied that,
except as provided by the agreement, the advance will be secured by a first mortgage
over the person’s interest or any other person’s interest in the holding.
Item 24 amends paragraphs 1 8(2)(d) and (e) by omitting the words ‘owned by’ and
substituting the word ‘of.
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Veterans ‘Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995
Item 25 amends paragraph 1 8(2)(f) by omitting the words ‘on a holding of the person’
and substituting the words ‘on the person’s interest in a holding’.
Item 27 amends subparagraph 18(3)(a)(i) by omitting the words ‘owned by’ and
substituting the word ‘of.
Item 28 amends paragraph 1 8(3)(e) in a similar way as referred to in item 25 above.
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Veterans ‘Affairs (1995-96 Budget Measures) Legislation Amendment Bill. 1995
Schedule 1 Issue B
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World War II Women’s Services Overview
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This amendment provides Defence Service Homes eligibility to full time members of
the World War II Women’s Services.
.
Background
,
Eligibility for benefits under the DSH Act for those who served during World Wars I
and II and the subsequent Korean and Malayan campaigns was based on enlistmentor
appointment for, or employment on active ‘service outside Australiaor on a ship of
war.
.
In 1948, the Goverm’nent decided that because the Women’s Services in World War II
were raised primarily for home service, they would not be regarded as having performed qualifying service for Defence Service Homes assistance unless the applicant
actually had active service outside Australia. As a result, former members of the
Women’s Services who did not actually serve overseas during wartime were excluded
from Defence Service Homes benefits. The DSI-I Act was amended to this effect from
11 November 1978. Male volunteers who did not serve outside Australia were
eligible throughout this period.
A conciliation conference was held before the Human Rights and Equal Opportunity
Commission, as a result of a complaint from a World War II Ex-Service Women’s
representative. The parties agreed that the present position is an issue of indirect
discrimination and should be resolved. This proposal redresses that situation and
recognises the major contibution to the war effort made by thousand of female
volunteers who joined the services during World War II.
Explanation of changes
These amendments remove the restrictions which prevent members of the Women’s
Services from qualifying for assistance under the DSH Act It should be noted,
however, that this proposal relates only to members of the Women’s Services of
World War II.
It is not proposed, therefore, to remove the restriction imposed by the definition of
“Australian Soldier” in section 4 and the qualification in subsection 4(2A) in relation
to members of the Women’s Services who served during the war-like operations in
Korea after 26 June 1950 or Malaya after 28 June 1950.
It should be noted that in respect of members of the Voluntary Aid Detachment, this
proposal also applies to those women who were full time paid members.
The amendments ensure that any entitlement gained under this proposal is not
adversely affected by any previous assistance under the DSH Act, either as a widow, a
spouse or dependant parent.
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Veterans’ Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995
Explanation of items
Item 11 amends subsection 4(2A) by referring to the new subsection 4 (2AA)
Item 12 inserts new subsections 4(2AA) and (2AB).
New subsection 4(2AA) lists those full time members of World War II Women’s
Services who will now be eligible under the DSH Act.
New subsection 4(2AB) modifies the definitions of further advance and initial
advance in subsection 4(1) This provision ensures that any entitlement under new
subsection 4(2AA) will not be affected by, nor will affect, any entitlement under the
Defence Service Homes Scheme gained as a spouse, widow or dependant parent of an
eligible person.
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Veterans ‘Affairs (1 995-96Budget Measures) Legislation Amendment Bill 1995
Schedule 1 Issue C
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Assignment of entitlement Overview
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These amendments increase the flexibility of the Defence Service Home’s scheme by
allowing eligible persons to assign their entitlement by mutual agreement to certain
providers of retirement village accommodation including persons providing ‘granny
flat’ accommodation.
Background
Under existing legislation, there is no provision for eligible persons to assign their
entitlement to enable them to obtain accommodation in retirement villages or granny
flats. The problems in using Defence Service Homes loans for these purposes centre
on ownership of the property and security for the loan. As the veteran population ages
their housing needs change, and retirement village/granny flat accommodation is
appropriate for many who have difficulty in living alone independently.
These proposed amendments will increase appropriate housing options and assist
elderly clients to remain independently housed while encouraging them to move to
accommodation more appropriate for their needs.
Explanation of the changes
There are two principal amendments. The first allows a person with an unused
Defence Service Homes entitlement to assign that loan entitlement where the person
seeks entry to a retirement village managed by an organisation which has, as its prime
purpose, the provision of accommodation to veterans and veterans’ widows. This
will, in part, overcome the present difficulties experienced in securing loans for
retirement village accomodation in the absence of individual titles for each unit.
This amendment is intended to apply only in respect of those organisations which
have, as their prime purpose, the provision of retirement village accommodation to
veterans and their widows. It is not intended that assignment be permitted to
retirement villages managed by public or private companies or individuals where its
prime purpose is not the provision of such accommodation to widows and veterans.
On the other hand, a War Veterans’ home, RSL retirement village or a War Widows
Guild retirement village will not be prevented from accepting an assigned loan merely
by reason of the fact that it offered accommodation to persons other than veterans or
warwidows.
The second principal amendment of this proposal provides for the same assignment
arrangement to be extended to eligible persons seeking accommodation in granny flats
where the land and the building on which the accommodation is to be provided is not
owned by the eligible person. This proposal will overcome the problem of securing
loans for granny flats on land owned by persons other than the eligible person.
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Veterans ‘Affafrs (1995-96 Budget Measures) LegislationAmendment Bill 1995
It is not intended that the eligible person should assign his or her eligibility as such.
In these cases, a certificate of entitlement would continue to be issued to the eligible
person. The certificate of entitlement would include the same information as it does
now under the DSH Act. If the person then wishes to assign the subsidised loan
entitlement, it is proposed that a certificate of assignment be issued to the eligible
person upon formal application. That certificate would indicate the relationship
between the eligible person and the assignee and set out the respective rights,
obligations and entitlements of each party. It is proposed that both the certificate of
entitlement and the certificate of assignment would be presented to the Bank in order
to obtain the advance.
It is also proposed that an eligible person should not lose any existing rights or
entitlements as a result of a decision to assign a subsidised loan to another person or
party. Conversely, it is not intended that the assignee assume all the benefits accruing
to an eligible person.
Explanation of items
Item 1 amends the definition of ‘borrower’ in subsection 4(1) by inserting the words
“and includes an assignee in relation to a subsidised advance”.
Item 7 adds a new paragraph (c) in subsection 4(1) and inserts a reference to ‘granny
flat’ in the existing definition of ‘retirement village’.
Item 8 amends paragraph (a) of the definition of ‘reviewable decision’ in subsection
4(1) to include a decision ofthe Secretary in relation to a certificate of assignment as a
reviewable decision.
Item 10 inserts new definitions relating to ‘assigned advance’, ‘assignee’, ‘assignor’,
‘certificate of assignment’ and ‘granny flat’.
Item 13 inserts various new subsections at the end of section 4.
New subsection 4(9) adds to any reference in the Act to an advance sought to include
an advance sought as an assignee.
New subsection 4(10) explains the link between assignees and assignors.
New subsections 4(11), (12) and (13) refer to the definitions of ‘further advance’ and
‘initial advance’. These amendments are necessary to ensure that the rights of
assignors and assignees are not adversely affected by an act of assignment.
Item 15 amends the heading to Part III of the DSH Act by inserting the words ‘and
certificates of assignment’ This amendment is necessary to include the new function
of assignment in the DSH Act.
Item 16 amends section 15 by inserting a new paragraph (e). Paragraph (e) includes a
certificate of assignment as a certificate under the DSH Act.
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Veterans’Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995
Item 17 amends subsection 17(1) by making reference to the assignee. The
amendment omits the words ‘advance to the applicant’ and substitutes the words
‘advance to the applicant or the assignee of the applicant’.
Item 23 amends paragraph 1 8(1)(g) by omitting and substituting new paragraphs
18(1)(g)(i) and (ii). New paragraph 18(1)(g)(i) includes criteria for issue of a
certificate of entitlement in the event of an assignment and specifies that an assigned
advance will be secured by a first or subsequent mortgage over the assignee’s and any
other person’s interest in the retirement village.
Item 26 amends subsection 18(2) by adding a new paragraph 1 8(2)(l) at the end. New
paragraph 1 8(2)(l) specifies the requirement that the assigned advance is to assist in
obtaining a right ofresidence in the retirement village.
Item 29 makes a similar amendment to subsection 18(3) as item 26, by inserting a
new paragraph 18(3)(g).
Item 30 inserts a new subsection (1A) into subsection 20(1). This new subsection
extends assignment rights to widow or widoweradvances.
Item 31 inserts a new subsection (1 A) into subsection 21(1).
extends assignment rights to advances for essential repairs.
This new subsection
Item 32 amends subsection 22(1) by referring to new subsection 22(1AA) inserted by
item 33.
Item 33 amends subsection 22(1) by inserting a new subsection 22(1AA) to ensure
that retirement village properties in assigned cases are not affected by the restrictive
transfer provisions of section 22.
Item 35 inserts new section 23A in Part III of the DSH Act covering assignment of
loans.
New subsection 23A(1) gives the Secretary the power to issue certificates of
assignment.
New subsection 23A(2) sets out criteria for the issue of the certificate of assignment.
New subsection 23A(3) specifies that the Secretary may make written determinations
which specify the kinds of conditions that an assignor and assignee must agree to
before a certificate of assignment can be issued.
New subsection 23A(4) states that a certificate of assignment issued under this section
remains in force until the subsidy in respect of the assignment advance concerned
ceases to be payable.
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Veterans~Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995
New subsection 23A(5) sets out the matters to be specified in the certificate of
assignment.
New subsection 23A(6) provides for the Secretary to make written determinations as
to the matters to be included in certificates of assignment.
New subsection 23A(7) provides that determinations made under subsections (3) and
(6) are disallowable instruments for the purposes of section 46A of the Acts
Interpretation Act 1901.
Item 36 amends subsection 24(1) by including ‘an assignee of a person’ as a person in
respect of whom subsidy is payable by the Commonwealth to the Bank.
Item 37 substitutes a new paragraph 25(1)(b) to provide for additional advances in
assigned cases.
Item 38 amends subparagraph 25(1)(d)(i) by including a reference to an assignee to
enable calculation of further advance entitlements in assigned cases.
Item 39 amends subsection 25(1A) by including reference to the assignee of the
person to enable calculation of the term ‘limit’ which is used in calculating the further
advance entitlement in new subparagraph 25(1)(d)(i).
Items 40. 41. 42. 43 and 44 amend subsection 26(1) and paragraphs 26(1)(a), (b) and
(c) by including the assignee of a person as a person to whom the Secretary can send a
notice cancelling the subsidy.
Item 45 inserts new subsections 26(2B) and (2C).
Subsection 26(2B) provides that the Secretary may cancel the subsidy on an assigned
advance if the assignor has either agreed to transfer or given up the right of residence
in the relevant retirement village, or if the assignee has either agreed to transfer an
interest or terminated the assignor’s right of residence in the relevant retirement
village.
Subsection 26(2C) provides that if the Secretary cancels a subsidy under subsection
(2B), the Bank may, from the date when the cancellation of subsidy takes effect,
charge an interest rate applicable to similar loans provided by the Bank to mortgagors
generally.
Item 46 amends subsection 26(5) by including the assignee as a person to whom the
Secretary shall send a copy of the notice of cancellation.
Item 47 amends paragraph 26(7)(a) by including assignment cases within the
Secretary’s power to cancel subsidy where the person’s right of residence in a
retirement village is terminated and the person ceases to reside there.
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Veterans~Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995
Item 50 inserts new paragraphs 29(2)(ca) and (cb) after paragraph 29(2)(c). These
new paragraphs provide for the calculation of the amount of subsidy to be recoverable
where assignment arrangements are terminated for the reasons specified.
Item 52 amends subsection 29(3) by including the assignor as a person to whom the
Secretary shall send a copy of the notice ofcancellation.
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Veterans ‘Affairs (1 995-96 Budget Measures) LegislationAmendment Bill 1995
Schedule 1 Issue D
-
Company title and leasehold title Overview
-
This proposal allows assistance under the Defence Service Homes Scheme to eligible
persons where the title to the property is a company title or any type of leasehold title
acceptable as security for the Bank.
Background
The current provisions of the DSH Act do not allow for the issue of a certificate of
entitlement in respect of holdings which are held under a company title or types of
leasehold title other than those described by the term ‘holding’ in section 4.
A small number of eligible persons enquire about assistance where the property is a
company title, but under the current legislation, no assistance can be given. If they
wish to proceed with Defence Service Homes assistance they are required to select an
alternative property with an acceptable title.
Housing loans for homes on leasehold land are also available in the market place
provided the lender is satisfied with the form of security offered. There is therefore
no longer a need to retain the current restrictions applying to leasehold land in the
DSH Act.
This amendment will provide clients with greater freedom of choice in their housing
options and align the Defence Service Homes Scheme with market practice.
Explanation of changes
This amendment will cover company title and forms of leasehold title not presently
covered under the DSH Act.
Explanation of items
Item 2 amends paragraphs (a), (b), (c) and (d) of the definition of “holding” in
subsection 4(1) by omitting the word ‘he’ and substituting the words ‘he or she’ and
by adding the word ‘or’ at the end of each paragraph.
Item 3 amends paragraph (e) of the definitionof “holding” by omitting the word ‘him’
and substituting the words “him or her”.
Item 4 amends paragraph (f) of the definition of “holding” by omitting the word ‘he’
and substituting the words ‘he or she’ and by adding the word ‘or’ at the end of the
paragraph.
Item 5 inserts two new paragraphs (g) and (h) at the end ofthe definition of “holding”.
New paragraph (g) includes land held by way of company title in the definition of
“holding”.
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Veterans ‘Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995
New paragraph (h) includes land under a lease in the definition of “holding” and
contains a provision that enables the Bank to consider whether the leasehold security
offered is adequate security.
Item 10 inserts new definitions for ‘company title’, ‘lease’ and ‘mortgage’ in the
interpretation section in subsection 4(1).
Item 21 amends paragraph 1 8(l)(b) by omitting and substituting a new paragraph
1 8(1)(b). The new paragraph states that a new certificate of entitlement will not be
issued unless the person:
is not the owner of a dwelling-house; and
does not have a right of residence in a retirement village; and
does not hold an interest in shares giving rise to company title in respect of the
land on which the dwelling-house is built;
other than the dwelling house, right of residence or company title in respect of which
the advance is payable. This amendment is necessary so as to include references to
ownership ofproperty under company titles.
Item 22 makes a similar amendment to paragraph 18(1 )(e) as referred to in item 21
above to cover ownership of property by husbands or wives of persons.
Item 34 amends section 22 by inserting a new subsection 22(8) to include a reference
to a transfer of shares giving rise to a company title in respect of the land or land and
dwelling-house as being caught by the restrictions of the section.
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Veterans ‘Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995
Schedule 1
-
Issue E
Deceased estates Overview
-
This amendment provides for the cancellation of subsidy from a date three months
after the death of the last surviving member of an eligible couple if the subsidised
advance has not already been discharged.
Background
There are currently cases where there is a leakage of the benefit of Defence Service
Homes subsidised loans to ineligible persons. This occurs in deceased estates where
there is no surviving eligible beneficiary.
The general thrust of section 22 of the DSH Act is to require the issue of a certificate
ofentitlement in respect of any proposed transfer of property which is subject to either
a specified portfolio asset which vests in the Bank or a mortgage or other security
securing a subsidised advance. Subsection 22(3) of the DSH Act specifically requires
that a certificate of entitlement under section 22 may only be issued to a proposed
transferee who is an eligible person. Under subsection 22(4) such a certificate of
entitlement remains in force until the subsidy to which it relates ceases to be payable
under the DSH Act.
However, subsection 22(7) of the DSH Act permits certain transfers to take place
without a certificate of entitlement, including actions necessary to assist in the
administration of deceased estates. A delay in the administration of the estate allows
the benefit of the subsidised loan to continue. As a result, ineligible persons receive
subsidised loan benefits under the DSH Act.
Explanation of changes
This proposal will allow for the cancellation of a subsidy three months from the date
of death ofthe last surviving member of an eligible couple.
Under the provision the Secretary will have a discretion not to cancel subsidy in
special circumstances. As an example, it is not intended that subsidy should be
cancelled where the deceased veteran and widow are survived by children who are
minors or who are handicapped to the extent that they were dependent upon the
deceased for their housing needs immediately before the death of the last surviving
parent.
Mortgages and contracts of sale which vested in the Bank on sale were at fixed
interest rates. A provision for the Bank to increase the interest rate on such loans to
the market rate upon cancellation of subsidy is also included.
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Veterans ‘Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995
Explanation of items
Item 9 amends the definitionof ‘reviewable decision’ in subsection 4(1) by inserting a
new paragraph (da). This new paragraph ensures that a decision of the Secretary to
cancel a subsidy under new section 27A, which is inserted in item 48 below, is a
reviewable decision.
Item 48 inserts a new section 27A to provide for the cancellation of subsidy from a
date three months after the date of death of the eligible person where there is no
surviving spouse. This amendment applies to both subsidised advances made by the
Bank, as provided for in new subsection 27(1) and portfolio assets which vested to the
Bank as provided for in subsection 27A(2).
Both subsections 27A(1) and (2) also include a provision that the Secretary may
cancel a subsidy if satisfied that it is appropriate to do so. This provision, together
with the use of the word ‘may’ gives the Secretary the discretion whether to cancel.
New subsection 27A(3) re-inforces the intention that subsidy will only be cancelled
after the death of the eligible person and spouse, whichever occurs last. This clause is
necessary because in most joint ownership cases, the eligible person and spouse are
treated as one eligible person under subsection 4A(l).
New subsection 27A(4) makes it clear that in the event of the Secretary cancelling
subsidy, notice of the cancellation must be given to the deceased’s executor or
personal representative, to the Bank and in the case of an assigned advance, to the
assignee.
New subsection 27A(5) specifies that cancellation takes effect on the date specified in
the notice, being a date not earlier than the date of the notice.
New subsection 27A(6) makes it clear that when cancellation of subsidy takes effect,
the Bank may charge an interest rate in relation to the advance that is applicable to
similar loans provided by the Bank. This applies to a cancellation of subsidy in
respect of both subsidised advances and portfolio assets.
Item 49 makes a minor technical amendment to subsection 29(1), as subsidy is paid
‘in relation to an advance’ and not to ‘a person’. The remainder of subsection 29(1)
has been rewritten to incorporate a power to recover subsidy upon cancellation of
subsidy in relation to assigned advances and deceased estates in addition to the
existing powers.
Item 51 amends subsection 29(2) by inserting a new paragraph 29(2)(e). This new
paragraph provides for the calculation of subsidy to be recoverable in deceased estate
cases.
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Veterans ‘Affairs (1995-96 BudgetMeasures) Legislation Amendment Bill 1995
Schedule 1 Issue F
-
Generic certificates of entitlement Overview
-
This amendment allows certificates ofentitlement to be issued for any of the purposes
listed in the DSH Act, rather than for a specific purpose.
Background
Subsection 17(3) of the DSH Act provides that a certificate of entitlement issued
under that section shall, amongst other things, specify the purpose of the advance.
Lists of the purposes for which certificates of entitlement may be issued for initial and
additional advances are set out at subsections 18(2) and (3) respectively.
There are occasions where certificates have been issued for one purpose and the
applicant has sought approval for a change in the purpose of the certificate of
entitlement. This has necessitated a fresh application, causing inconvenience to
clients.
Explanation of changes
This initiative will allow for the issue of generic certificates of entitlement in which it
will not be necessary, in accordance with the existing provisions of sub-section
17(3)(c) of the DSH Act to state in the certificates, the specific purposes for which
they are issued. Instead, the certificates of entitlement will now relate to any of
several purposes listed in the legislation for the particular type of advance sought.
Generic certificates of entitlement will not be issued for widow or widower advances,
advances for essential repairs, transfer of property or instalment relief as set out in
sections 20 to 23 of the DSH Act, as these certificates are, by their very nature,
purpose specific.
Explanation of items
Item 19 provides for the addition of a new paragraph 17(4). This amendment is
necessary as not all certificates will be able to be issued for generic purposes.
Paragraph 17(4)(a) provides that certificates of entitlement issued under section 17
relating to initial or further advances, other than in assigned cases, must specify that
the advance is for the purposes referred to in subsection 18(2).
Paragraph 1 7(4)(b) provides that certificates issued in relation to assigned advances
must specify the purpose of assisting in obtaining a right ofresidence in the retirement
village in question.
Paragraph 17(4)(c) provides that if certificates of entitlement issued under section 17
relate to an additional advance that is not an assigned advance, then the certificates
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Veterans’ Affairs (1995-96 Budget Measures) LegislationAmendment Bill 1995
must specify that the advance is for the purposes referred to in subsection 18(3) other
than paragraph 1 8(3)(g) which covers assigned cases.
Paragraph 17(4)(d) provides that if the certificate relates an additional advance that is
an assigned advance, then the certificate must specify the purpose of assisting in
continuing to hold a right ofresidence in the retirement village in question.
Paragraph 1 7(4)(e) provides that in any other case, the certificate must specify the
purpose ofthe advance.
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Veterans’ Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995
Schedule 1- Issue G
Insurance Overview
-
This proposal allows all eligible persons to insure their homes under the Defence
Service Homes Insurance Scheme irrespective of whether they have received a
Defence Service Home loan on the home. The ‘insurer of last resort’ arrangements
are to becaricel1ed~
Background
Part VI ofthe DSH Act provides for the Commonwealth, through the Defence Service
Homes Insurance Scheme, to insure certain dwelling-houses.
The Defence Service Homes Scheme provides two major benefits:
subsidised housing loans
comprehensive home insurance
The current legislative provisions restrict the second benefit to those who have taken
the first. The question of access to the Insurance Scheme, independently of the loan
scheme has been the subject of representations by many individuals and ex-service
organisations over the years.
Explanation of changes
This proposal extends access to the Insurance Scheme to all persons eligible under the
DSH Act. This will enable those who have completed the required war or defence
service to take up insurance with the Scheme.
It is also intended to remove the ‘insurer of last resort’ arrangements. Where
properties in which the former Defence Service Homes Corporation had an interest
were not insured, they were taken to be insured by the Commonwealth and the
premiums became due and payable to the Commonwealth. These provisions were in
place to protect the Commonwealth’s interest as the lender in the event of an insurable
risk causing damage to a property where the client failed to take out that insurance.
Since the sale of the loan portfolio and exclusive right to the lending business of the
Scheme to the Westpac Banking Corporation, these provisions are no longer
necessary and have therefore been deleted.
Explanation of items
Item 56 amends subsection 38C(1). It does this by inserting new paragraphs (ga) and
(gb). These two new paragraphs extend insurance cover to:
a dwelling-house owned wholly or partially by an eligible person,
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Veterans ‘Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995
a dwelling-house wholly owned by a husband and wife who are treated
together as an eligible person.
Item 57 inserts a new subparagraph 38C(1)(h)(iii) which provides that the
Commonwealth may undertake insurance of building materials on the site of
dwelling-house referred to in new paragraphs (ga) and (gb).
Item 58 amends paragraph 38C(l)(j) by inserting a reference to new paragraphs (ga)
and (gb).
Item 59 amends subsection 38C(2) by inserting a reference to new paragraphs (ga)
and (gb).
Item 60 amends section 38D by omitting subsection 38D(2).
removes the ‘insurer of last resort’ arrangements.
This amendment
Item 61 omits and substitutes a new paragraph 38E(l)(a) relating to termination of
insurance. New paragraph 38E(l)(a) provides that this section applies where the
Commonwealth has undertaken insurance under section 38C in relation to a dwellinghouse only because:
the Corporation proposed to make a corporation advance in respect of a person; or
a person has applied for a certificate of entitlement in relation to that dwellinghouse; or
a person is an eligible person.
Item 62 omits and substitutes a new paragraph 38E(l)(b) by omitting ‘the applicant
for the advance or certificate’ and substituting ‘the person’. In the same paragraph,
the words ‘the applicant has disposed’ are to be omitted and substituted by the words
‘the person has disposed’.
Item 63 amends subparagraphs 38E(1)(b)(ii), (iii) and (iv) by omitting the word
‘applicant’ and substituting the word ‘person’.
Item 64 amends paragraph 38E(2)(a) by omitting ‘applicant’ and substituting
‘person’.
Item 65 omits and substitutes a new subsection 38E(4) which specifies that if the
Commonwealth insures a dwelling-house because a person is an eligible person, and
the person who died is survived by a widow or widower, the Secretary must not give
notice under paragraph (2)(b) in relation to a dwelling-house, unless satisfied that the
widow or widower is not an eligible person. This circumstance will only arise where
a widow or widower of an eligible person remarries and subsequently dies leaving a
widower or widow.
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Veterans ‘Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995
All the above amendments to subsection 3 8E are necessary because eligible persons
other than the applicants for certificates of entitlement will be able to insure under the
Act.
Schedule 1
-
Issue H
Portable loans Overview
-
This proposal makes all current loans portable for the remainder of their term and
stabilises the interest payable at the existing rate.
Background
Portability of Defence Service Homes loans was introduced on 9 December 1987.
Under these arrangements, loans current at or funded after 9 December 1987, are
portable from home to home any number of times until the eligible person has had the
loan for a total of 25 years. The term for the Defence Service Homes loans was
reduced at that time from 32 to 25 years.
When the sale of the Defence Service Homes loan portfolio and right to the new
lending business were given legislative force on 19 December 1988, interest rates on
all new loans on and from that date were set at 6.85%. This interest rate had no
adverse effect on the majority of clients as the previous three-tiered loans of the
former Defence Service Homes Corporation were effectively the same rate. Old
single-tiered loans were however at 3.75% per annum and two-tiered loans effectively
at 4.5% per annum.
Although the vast majority of clients benefited significantly from the introduction of
portability, one group was relatively disadvantaged by the accompanying reduction in
term and increase in interest rate. To illustrate this problem, the reduced term and the
increased interest rate under portability could have resulted in a client’s 50 year loan
repayment of $63 per month increasing to $237 per month on exercising portability
rights to move to a location nearer family support. This initiative redresses this effect.
Explanation of change
The amendments make all existing loans and any loan entitlements that still remain in
respect of other eligible persons, portable for the remainder of their current /original
term and to stabilise the interest rate at the rate of the current/original loan as
appropriate.
This will assist clients to remain independently housed while
encouraging them to move to accommodation more appropriate to their needs.
It is intended that a person who has already had a further loan under a reduced term
and at a new interest rate will not be permitted to revert to the term and interest rate of
the initial advance.
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Veterans’ Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995
Explanation of items
Item 18 amends subparagraphs 17(3)(c) and (d) by omitting and substituting new
paragraphs 17(3)(c) and (d).
Paragraph 17(3)(c) provides that if new subsection 34(2) applies, which is inserted by
item 53, then the certificate of entitlement will specify the rates of interest and
proportions of the further advance to which each of those rates of interest apply, as
required by new subsection 34(2).
Paragraph 17(d) states that in any case, the certificate of entitlement will specify the
rate of interest payable on the advance.
Item 53 repeals section 34 and inserts a new section 34 dealing with the rate of
interest on further advances.
New subsection 34(1) provides that subject to new section 34(2), the rate of interest
that is to be specified in the certificate of entitlement in relation to a further advance
that a person may seek from the Bank is to be the annual rate of interest of the last
preceding previous advance. This amendment allows the interest rate to be preserved
at the rate applicable to the immediately preceding advance.
New subsection 34(2) provides that if there has been one or more previous advance,
then the rates of interest to be specified in relation to a further advance that a person
may seek from the Bank are the rates of interest per year that applied to those previous
advances. This subsection deals with two or more tiered loans which might be
regarded as separate advances and covers the situation where there has been an
additional advance provided. This subsection also provides that the proportion of the
further advance to be specified in relation to interest rates is the same proportion of
the amounts of the previous advances to which those interest rates applied.
New subsection 34(3) inserts a new definition for ‘previous advance’.
Item 54 amends subsection 36(1) which deals with maximum terms of advances by
omitting paragraph 36(l)(d) and substituting new paragraphs (d) (i) and (ii). These
paragraphs provide that the term for further advances is to be a term equal to the
unexpired part of the last preceding advance.
Item 55 amends subsection 36(4) by deleting the definition of ‘prescribed period’ and
inserting a definition for ‘previous advance’.
Item 66 provides for an ‘application’ provision in relation to section 36 as in force
immediately before the commencement of this item. The ‘application’ provision
provides that the former section 36 continues to apply if subsidy was not payable on 9
May 1995 in relation to the advance directly preceding the further advance in question
and that the prescribed period, as defined in section 36(4) of the DSH Act
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Veterans‘Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995
immediately before the commencement ofthis item, equals or exceeds 25 years as at 9
May 1995.
This means that in cases where subsidy was not payable as at 9 May 1995, the term
for any further advance is firstly governed by whether the applicant had an entitlement
to a further advance term under the provisions in place at that time. Having met that
condition, then the term for any further advance will be set in accordance with new
subsection 36(1 )(d)(i).
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Veterans ‘Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995
SCHEDU1~t~
Amendments of the Veterans’ Entitlements Act 1986 Relating
to Preliminary Issues Concerning Eligibility for Payments
Overview
These amendments to the Veterans’ Entitlements Act 1986 (YE Act) clarify aspects of
pension eligibility in relation to allotment for duty and service in the operational area.
The amendments also extend the definition of operational service to include service
by persons who were allotted for duty in Korea during the Korean War, but who only
served in Japan.
Background
The Government takes the view that the existing legislation, if read completely and
within context, is already clear on the meanings of the definitions of operational
service and qualifying service and on the way that these definitions affect eligibility
for pensions under Part II and eligibility for service pension.
However, the definitions and their impact on pension eligibility are more complex
than they might first appear. This has been particularly evident from differing
decisions by the Administrative Appeals Tribunal some of which have granted service
pensions to people who were not veterans and who had neither operational service nor
qualifying service. It is clear that the legislation needs to be improved so that it leads
a reader through all relevant provisions and allows a clear understanding of the
relationships between the provisions.
Other than the extension of the operational service definition to cover the allotted
Korea/served Japan cases, the changes do no more than enshrine the existing
intention.
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24
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Veterans ‘Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995
Pensions under Part Ilof the VE Act
The current provisions governing eligibility for pensions under Part II of the VE Act,
are in section 13. This section indicates that the threshold requirement is that the
person be a veteran, or be the dependent of a deceased veteran.
The definition for veteran is included in subsection (1) of section SC dealing with
eligibility related definitions. That definition has a number of specific arms, but the
vast majority of people meeting the definition do so because they are taken to have
rendered eligible war service because of section 7 (i.e. they meet subparagraph (a)(i)
of the definition).
Section 7 dealing with eligible war service has five paragraphs, of which four, (b) to
(e), cover service in World War 1 or 2. Thus only paragraph (a) applies to service
since the World Wars. That paragraph indicates that a person shall be taken to have
been rendering eligible war service while rendering operational service. Thus to have
rendered eligible war service in the period since the World Wars, a veteran must have
rendered operational service.
The definition of operational service in subsection 6(1) is a complex provision
involving 16 paragraphs. However, 14 paragraphs, (a) to (d) and (g) to (r), cover
service in World War 1 and 2. One of the post-World War paragraphs, paragraph (I),
deals with Commonwealth and allied countries. Thus only paragraph 6(1)(e) deals
with post-World War service in Australian forces.
Paragraph 6(1)(e) has occasionally been misread. As explained in the Explanatory
Memorandum to the Veterans’ Entitlements Bill 1986, it is intended to cover “service
as a member of the Defence Force outside Australia in an operational area”. The key
to understanding its meaning is to understand the meaning of the words allotted for
duty. These words are dealt with in subsection 5B(2). That section makes it clear that
these words when used about an operational area in the VE Act can only have the
meaning given in the subsection. Thus from both paragraphs (a) and (b), whenever
allottedfor duty in an operational area is used in the Act, it must carry with it the
meaning that it was duty that “was carried out in an operational area”. It is clearly
impossible to carry out duty in an operational area without ever being in that
operational area.
Thus paragraph 6(1)(e) should not be read as merely involving service anywhere
outside Australia while allotted for duty in an operational area. Because allottedfor
duty is defined, it must be read as involving service carried out in an operational area
while allotted for duty in that operational area.
Thus in summary, if the service was not carried out in the operational area:
it will not be operational service;
it will therefore not be eligible war service;
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Veterans‘Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995
it will therefore not make the person a veteran; and
neither the person, nor the dependant of a deceased veteran, will be eligible for
benefits under Part II of the VE Act.
Service pension
The current provisions governing eligibility for age service pension and invalidity
service pension are in subsections 36(1) and 37(1). Those subsections indicate that
the threshold requirements are that the person be a veteran, and have rendered
qualifying service. The requirements for being a veteran are, of course the same as
those described above.
Qualifying service basically has the same meaning as the theatre of warprovisions of
the Repatriation Act 1920 and involves the concept of service in a theatre of war
against hostile forces of the enemy and the incurring of danger therefrom (also
explained in the Explanatory Memorandum to the Veterans’ Entitlements Bill 1986).
Section 7A dealing with qua!j/’ying service has 8 paragraphs. It is paragraph 7A(a)
that deals with service in the Australian Defence Force. Subparagraphs 7A(a)(iii) and
(iv) have a structure very similar to paragraph 6(1)(e) and are also frequently misread.
Both subparagraphs use the words allotted for duty, and the same meaning about
service carried out in the operational area must attach to these words.
Here too in summary, if the service was not carried out in the operational area:
it will not be qualifying service; and
the person will not be eligible for service pension.
Explanation of items
Item 1 adds a note at the end of the definition of veteran in subsection 5C(1). The
note indicates that the defined terms used in the definition are located elsewhere in the
same subsection.
Item 2 inserts a definition for operational service into subsection (1) of section SC
dealing with eligibility related definitions. The definition indicates that the detailed
definition is to be found in section 6. This amendment helps to ensure that this
definition will not be overlooked.
Item 3 amends paragraphs 6(1)(a) and (b) and makes both paragraphs subject to
subsection (3). Subsection 6(3) qualifies those paragraphs but this has not been clear
from reading them.
Item 4 omits and substitutes a new paragraph 6(1)(e). Principally, the new paragraph
rearranges the existing words by bringing the words “service” and “in an operational
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26
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Veterans ‘Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995
area” closer together instead of being separated by the sub-subparagraphs.
Recognising the connection with the definition of allottedfor duty, the words “in that
operational area” are added after “allotted for duty”. The paragraph is now subject to
subsections 6(5) and 6(6) which qualify it. This amendment involves no policy
change but is a provision with clearer readability.
Item 5 adds new paragraph 6(1)(s). This new paragraph extends the definition of
operational service to cover people who were members of units which were allotted
for duty in Korea but who served only in Japan. The Defence Force will now issue
new instruments assigning these units for service in Japan. This will mean that
members of these particular units who served in Japan will have operational service
and will be eligible for pensions under Part II.
Item 6 omits and substitutes notes at the end of subsection 6(1). All but one of the
notes indicate the location of the defined terms used in the subsection. Existing Note
2 returns as Note 5. This amendment helps to ensure that a reader will become aware
that the terms are defined.
Item 7 omits and substitutes subparagraph 6(5)(b)(i). The new subparagraph corrects
grammar in a similar way to item 8. More importantly however, it now avoids the use
of the term “allotted for duty” when referring to an area which is not an operational
area. This will avoid confusion with those words which, as described above, are
defined to have a particular meaning when used in reference to an operational area.
Item 8 is a teclmical amendment correcting grammar.
Item 9 adds a new subsection to section 6. New subsection 6(10) is very similar to
existing subsection 6(5) and provides a means of determining commencement and
expiration days for the operational service described in new paragraph 6(1)(s) being
added by item 5.
Item 10 omits and substitutes notes at the end of subsection 7(1). All but one of the
notes indicate the location of the defined terms used in the subsection. Existing Note
2 returns as Note 4. This amendment helps to ensure that a reader will become aware
that the terms are defined.
Item 11 omits subparagraphs 7A(l)(a)(iii) and (iv) and substitutes a single
subparagraph (iii). That paragraph is now supported by new subsection 7A(1A) being
inserted by item 13. Principally, the new paragraph rearranges and streamlines the
existing wording. and brings the words “service” and “in an area” closer together.
Recognising the connection with the definition of allottedfor duty, the words “in that
area” are added after “allotted for duty”. This amendment involves no policy change
but is a provision with clearer readability.
Item 12 adds notes at the end of subsection 7A( 1). The notes indicate the location of
the defined terms used in the subsection. This amendment helps to ensure that a
reader will become aware that the terms are defined.
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Veterans ‘Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995
Item 13 inserts a new subsection in support of new subparagraph 7A(l)(a)(iii) being
inserted by item 11. It covers the exception previously dealt with in subparagraph
7A( I )(a)(iv).
Item 14 adds a note at the end of subsection 36(1). The note indicates the location of
a defined term used in the subsection. This amendment helps to ensure that a reader
will become aware that the term is defined.
Item 15 omits and substitutes notes at the end of subsection 37(1). The notes indicate
the location of the defined terms used in the subsection. This amendment helps to
ensure that a reader will become aware that the terms are defined.
Item 16 is an application provision relating to the amendments being made by items 4,
11 and 13. Under this provision the new paragraph 6(1)(e), subparagraph
7A(1)(a)(iii) and subsection 7A(1A) must be used for all decisions, including
decisions made after a review ofa decision, after the commencement of those items.
Commencement
Subclause 2(3) provides that this schedule commences, or is taken to have
commenced on 1 October 1995.
Subclause 2(4) provides that if the Act receives the Royal Assent before 1 October
1995, items 4, 11, 13 and 16 commence on Royal Assent.
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Veterans ‘Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995
SCHEDU
Amendment of the Veterans’ Entitlements Act 1986 Relating
to Pensions Other Than Service Pensions
Overview
This schedule includes amendments to the Veterans’ Entitlements Act 1986 (VE Act)
affecting the calculation of lump sum arrears of pensions payable to veterans under
Part II of that Act.
Background
Any disability pension received under Part II (or Part IV) of the VE Act is included as
income in the income testing for social security pensions and benefits. Income testing
for social security pensioners who are members of a couple requires that all of the
income of each member of the couple be added together and halved to obtain the
income for each member, Thus although disability pension is paid only to the
veteran, the income of the partner will be higher by an amount equal to half of the
veteran’s disability pension,
The income testing for VEA income support supplement is similar to the income
testing of social security pensions. On the other hand, income testing for VEA service
pensions excludes disability pension from income.
New grants of pension and increases in the rate of disability pension are always
retrospective. Sections 20 and 21 of the VE Act provide that the date of the claim or
application is the key factor in determining the date from which the payments should
commence or increase. Thus any grant or increase necessarily involves the
assessment and payment of arrears ofpension.
Many pensioners and their partners are also receiving an income support payment
other than a service pension. Because they may have received that income support at
a higher rate than would have been paid if the disability pension had been in payment
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Veterans ‘Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995
during the period covered by the arrears, the assessment of any pension arrears should
require the reassessment ofthe income support payment over that period.
The YE Act already has a provision allowing the excess income support payment to
the veteran to be deducted from the veteran’s pension arrears. In these circumstances,
section 205AA provides that an amount of an existing pension, benefit or allowance
paid to the veteran that would not have been paid if the new pension or allowance had
been paid, may be deducted from the new pension.
However, this provision does not provide for any deduction of any amount of an
existing pension benefit or allowance that would not have been paid to the partner if
the new pension or allowance had been paid.
Explanation of the changes
These amendments establish a new methodology for the calculation of the lump sum
arrears payment.
If the veteran has no partner, or has a partner who has not been receiving a social
security pension or an income support payment, the new methodology will result in
the calculation of the same amount of arrears as would have been due to the veteran
under the old methodology.
On the other hand if the veteran has a partner who has been receiving a social security
pension or an income support payment, the new methodology will result in the
calculation of a reduced amount of arrears. The reduction will equal the amount of
the pension or payment that would not have been paid to the veteran’s partner if the
veteran had been receiving the disability pension (or receiving it at the higher rate)
during the period of the arrears.
Explanation of items
Item 1 inserts two new sections. They are:
section 27A dealing with the calculation of arrears ofpension; and
section 27B dealing with decisions reviewable under the Social Security Act.
New section 27A has two subsections.
Subsection 27A(1) sets out when the section applies. It applies when:
•
arrears of disability pension become payable (in certain circumstances it could
apply when arrears of a war widow/ers pension become payable);
the veteran has been a member of a couple during the arrears period;
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Veterans’Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995
the veteran’s partner has been receiving an income support payment; and
the rate of that income support is retrospectively reduced because of the disability
pension arrears.
Subsection 27A(2) provides that the pension arrears payment is calculated in
accordance with the steps set out in the method statement.
Steps 1 to 3 of that method statement show how to arrive at an amount called the
provisional arrears which is the gross amount of the disability pension arrears.
Steps 4 to 6 of the method statement show how to arrive at an amount called the
excess payment which is the amount of the income support payment that the veteran’s
partner would not have recieved if the veteran had been receiving the disability
pension throughout the arrears period.
Step 7 of the method statement covers cases where the excess payment equals or
exceeds the provisional arrears. In those cases the amount payable to the veteran
during the arrears period is reduced by the amount of the provisional arrears. Thus
there will be no lump sum to be paid. However, any payments made to the veteran
during the arrears period will remain “payable”. This means that the veteran will not
be under any obligation to make any refund of pension instalments already paid
during the arrears period in cases where the excess payment to the veteran’s partner
has been greater than the provisional arrears.
Step 8 of the method statement covers cases where the excess payment is less than the
provisional arrears. In those cases the amount payable to the veteran during the
arrears period is reduced by the excess payment of income support to the veteran’s
partner. A reduced lump sum of arrears will be payable.
New section 27B makes certain calculations under section 27A reviewable under the
Social Security Act. If a social security pension is involved, steps 4 to 6 of the
method statement in subsection 27A will that the excess payment be calculated by
staff in the Department of Social Security. In normal circumstances within that
Department similar calculations are reviewable under the Social Security Act. This
provision ensures that calculations for the purposes of section 27A will also be
reviewable.
Commencement
Subclause 2(3) provides that this schedule commences, or is taken to have
commenced on 1 October 1995.
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Veterans ‘Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995
S CHEDU~~
Amendments of the Veterans’ Entitlements Act 1986 Relating
to Service Pensions
Overview
This schedule includes amendments to the Veterans’ Entitlements Act 1986 (VE Act)
affecting partner service pension eligibility. The amendments:
set a 50 years minimum age requirement for partner service pension for partners
without dependent children (unless they are the partner of a special rate disability
pensioner who is also a service pensioner);
allow retention of eligibility in certain circumstances when the veteran ceases to
be paid;
limit the rate of service pension to the “married” rate in any circumstances where
the other member of a couple is not receiving a pension or benefit; and
extend eligibility in certain circumstances to the partners, widows and widowers
ofnon-service pensioner veterans.
Background
The VEA provides for four types of service pension as follows:
age service pension;
invalidity service pension;
partner service pension; and
carer service pension.
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Veterans ‘Affairs (1995-96 BudgetMeasures) Legislation Amendment Bill 1995
The principal requirements for eligibility for age service pension and invalidity
service pension are that the person must be a “veteran” who has rendered “qualifying
service”. These terms are defined in subsection SC(1) of the YE Act. Sections 7 and
7A are also relevant,
Some veterans with qualifying service become eligible for partner service pension and
carer service pension before they become eligible for age or invalidity service
pension. However, the majority of those receiving partner service pension and carer
service pension are non-veterans and to a lesser extent, veterans without qualifying
service.
Partner service pension is dealt with in Division 5 of Part III of the YE Act. Section
38 deals with the eligibility for and payability of partner service pension. Put in its
simplest sense, to be a partner service pensioner a person must be the partner of a
service pensioner. The pension continues if the veteran partner passes away.
Section SF includes the family relationships definitions involving children. The
definitions of “child” and “dependent child” together mean that a dependent child may
be, in certain circumstances, as old as 25 years of age.
Explanation of items
Item 1 amends section 35B dealing with the need for claim for a qualifying service
determination. The existing provision requires veterans to make a claim if they want
to establish that they have rendered qualifying service. New subsection 35B(2) will
similarly require people to make a claim if they want to establish that their partner or
their deceased partner had rendered qualifying service.
Item 2 amends section 35C dealing with who can claim for a qualifying service
determination. At the end of subsection 35C(1) two new paragraphs are added. New
paragraph 35C(1)(c) allows claims by people who want to establish that their partner
or their deceased partner had rendered qualifying service and new paragraph
35C(1)(d) by persons on behalfof those people.
Items 3 to 11 amend section 38 dealing with partner service pension eligibility.
Item 3 amends subsection 38(1). It makes that subsection subject to new subsection
38(1 B) being inserted by item 10.
Item 4 amends subparagraph 38(1)(a)(ii). This subparagraph is being amended by
item 91 of Part 7 of Schedule I of the Veterans’ Affairs Legislation Amendment and
Repeal Bill 1995, commencing on 20 March 1995. The amendment here in this
Budget Measures Bill expands the protection of partner service pensioners to cover all
of the disqua!jfying provisions (as defined in new subsection 38(IA) being inserted
by item 10), instead ofjust the compensation recovery provisions.
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Veterans ‘Affairs 0995-96 Budget Measures) Legislation Amendment Bill 1995
Item 5 inserts new paragraph 38(1)(aa). Eligibility is expanded to include people who
would qualify for an age pension and who are members of a couple with a veteran
who has rendered qualifying service. This gives eligibility to people who are
sufficiently older than their non-pensioner veteran partner to qualify for an age
pension. Currently these people usually choose to transfer from the age pension to the
partner service pension when their veteran partner becomes old enough for an age
service pension or becomes sufficiently incapacitated to be granted an invalidity
service pension.
Item 6 omits and substitutes subparagraph 38(1)(b)(ii). The new subparagraph retains
partner service pension eligibility for those non-illness separated spouses whose
veteran ex-partner is no longer receiving a pension because of a disquaI~fying
provision (as defined in new subsection 38(1A) being inserted by item 10).
Item 7 makes an omission from subparagraph 38(l)(c)(i). This omission clears the
way for new subparagraph 38(1)(c)(ia) being inserted by item 8 to provide an
expanded description of the deceased veteran partner.
Item 8 inserts new subparagraph 38(1)(c)(ia) describing the deceased veteran partner
of the widow/er. This amendment, with item 7, extends eligibility to a person whose
veteran partner who has died while not receiving a pension because of a disqualjfying
provision (as defined in new subsection 38(1A) being inserted by item 10).
Item 9 adds a new paragraph to subsection 38(1). New paragraph 38(1)(e) extends
eligibility to include widow/ers who would qualify for an age pension and who were
members of a couple with a deceased veteran who had rendered qualifying service.
Note that subsections 38(3) and (3A) are being amended by item 11 so that eligibility
under this new paragraph will be lost if the widow/er remarries or enters a marriagelike relationship.
Item 10 inserts new subsections 38(1A), (1B), (1C) and (1D).
New subsection 38(1 A) defines a disqual~/’yingprovision. This expression is used in
the amendments in items 4, 6 and 8 above.
New subsection 38(1B) is subject to new subsections (1C and (ID) and provides that
a person is not eligible unless they have reached 50 years of age or have a dependent
child. The pension eligibility provisions in 38(1) have been made subject to this new
subsection by item 3.
New subsection 38(1 C) qualifies new subsection -38(1 B). Persons who are under 50
years of age or who do not have a dependent child will be eligible if before 1 October
1995:
they were eligible and had submitted a claim which had not yet been determined;
or
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Veterans ‘Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995
they had already been determined to be eligible and their pension has not been
cancelled.
New subsection 38(1D) qualifies new subsection 38(1B). Persons who are the
partners of a special rate (T&PI) disability pensioner will continue to be eligible if
their partner is also an age or invalidity service pensioner.
Item 11 amends subsections 38(3) and (3A). This change extends these subsections
so that eligibility under new paragraph 38(1)(e) being inserted by item 9 will be lost if
the widow/er remarries or enters a marriage-like relationship.
Items 12. 36 and 52 omit subsections 41(5), 42(4) and 43(3). These subsections are
no longer needed after the amendments described in the next paragraph which limit
the rate of service pension to the “married” rate in any circumstances where the other
member of a couple is not receiving a pension or benefit.
Items 13 to 35. 37 to 39. 42 to 57 and 59 to 61 amend the rate calculators in sections
41, 42 and 43. These amendments amend Tables to limit the rate of service pension
to the “married” rate in any circumstances where the other member of a couple is not
receiving a pension or benefit and make consequential amendments to notes to those
Tables.
Items 40 and 41 amend Table C-i in point 42-C2 and items 62 and 63 amend Table
C-i in point 43-C2. Those Tables allocate amounts for dependent children to one
member of a couple. These teclmical amendments direct the child related payments to
the partner service pensioner member of a couple where the veteran member of a
couple is not in receipt of a pension.
It will only be after the commencement of the Bill that it will be possible for a person
to be a partner service pensioner if their veteran partner is not receiving a service
pension.
Items 64 and 65 save existing recipients from the effects of the amendments which
limit the rate of service pension to the “married” rate in circumstances where the other
member of a couple is not receiving a pension or benefit.
Item 64 adds new section 1 97A dealing with new Schedule 5 of the Veterans’
Entitlements Act 1986 being inserted by item 65.
Item 65 inserts new Schedule S dealing with savings and transitional provisions into
the Act. Clause 1 of that Schedule is the new savings provision. The effect of the
clause is to protect the rate of service pension of those people on a “partnered, partner
getting neither pension nor benefit” assessment on 1 October 1995. On that date the
Bill removes that type of assessment.
Without this protection the service pension of these people would be reduced to the
“partnered” rate.
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Veterans ‘Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995
The savings provision will operate so that reductions as the result of a change in the
person’s circumstances will reduce the pension paid. However, increases as the result
of a change in the person’s circumstances, or as the result of indexation or other
increases in any component ofthe person’s pension will not increase the pension paid.
These increases will in effect be “paid for” by being offset against the excess pension
being saved, until the excess is eliminated. From that point the person’s pension
would be calculated like any other partnered pensioner.
Commencement
Subclause 2(3) provides that this schedule commences, or is taken to have
commenced on 1 October 1995.
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Veterans’Affairs (1995-96 BudgetMeasures) Legislation Amendment Bill 1995
SCHEDUL~i3
Consequential Amendment of the Social Security Act 1991
Relating to Service Pensions
Overview
This schedule includes an amendment to the Social Security Act 1991 related to the
amendments in Schedule 4 which set a 50 years minimumage requirement for partner
service pension for partners without dependent children.
Background
Partner allowance under the Social Security Act is payable to people who are
members of a couple and both members of the couple are over 21 years of age. They
must have a partner who is receiving one of the specified pensions or allowances.
They must be Australian residents and in Australia. They must be born before 1 July
1955 and not have a dependent child under 16. They must have no recent workforce
experience and not have received certain allowances in the past 13 weeks.
Now that partners under 50 will not be eligible for a partner service pension in certain
circumstances, the qualification for a partner allowance is being expanded to include
the service pension as one of the specified pensions or allowances that the person’s
partner must have for the person to qualify.
Explanation of items
Item 1 amends paragraph 771HA(i)(c) of the Social Security Act. The inclusion of
“service pension” in paragraph (c) means that a service pensioner’s partner who is not
eligible for a partner service pension (following the introduction of the 50 years
minimum age requirement) may now be paid a partner allowance if they meet the
qualification criteria described above.
Commencement
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Veterans ‘Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995
Subclause 2(3) provides that this schedule commences, or is taken to have
commenced on 1 October 1995.
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Veterans‘Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995
Sc
Amendments of the Veterans’ Entitlements Act 1986 Relating
to Income Support Supplement
Overview
This schedule includes amendments to the Veterans’ Entitlements Act 1986 (YE Act)
affecting income support supplement. They:
extend eligibility to war widow/ers with pensionerpartners; and
exclude war widow/er’s pension from the calculation of a bereavement payment.
Background
The creation of the income support supplement was announced in the 1994-95
Budget. The substantive legislative provisions for income support supplement were
included in the Veterans’ Affairs (1994-95 Budget Measures) Legislation Amendment
Act 1994. Further amendments were included in the Veterans’ Affairs (1994-95
Budget Measures) Legislation Amendment Act (No. 2)1994.
Income support supplement is an income and assets tested amount available to war
widows and widowers who do not receive age or invalidity service pension and was
payable from 20 March 1995. It is paid in lieu of a social security payment.
War widows and widowers were already receiving compensation payments under the
YE Act. The initiative has allowed war widows and widowers to receive their
compensation and income support payment from one department, the Department of
Yeterans’ Affairs.
Eligibility
The original intention of the income support supplement was to give all war
widow/ers receiving a social security income support pension the option of receiving
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Veterans ‘Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995
their income support payment under the VE Act. However, not all social security
pensioners fall within the existing eligibility criteria for the income support
supplement. War widow/er spouses of disability support pensioners and age
pensioners are excluded. These amendments rectify this oversight. On equity
grounds, war widow/er spouses of service pensioners are also given eligibility for the
supplement.
Bereavement Payment
War widow/er’s pension is currently regarded as income for the purposes of assessing
the rate of income support supplement and consequently it is also included in the
calculation of the bereavement payment. However, war widow/er’s pension is not
treated as income either for assessing the rate of service pension or its bereavement
payment.
Subsection 30(1) of the VE Act sets out the rate at which a warwidow/er’s pension is
paid.
Income testing for income support supplement is based on adjusted income as defined
in section 5H. In relation to a person claiming or entitled to income support
supplement the definition states that adjusted income is the sum of:
the ordinary income (also defined in section SH);
the disability pension income; and
the warwidow or widower pension (including similar foreign payments).
As a result of these amendments, war widow/er’s pension will be excluded from the
adjusted income definition for the purposes of calculating bereavement payment.
However, warwidow/er’s pension will continue be treated as income for assessing the
rate of income support supplement generally.
Explanation of items
Eligibility
Item I amends section 45A dealing with income support supplement eligibility. At
the end of paragraph 45A(l)(b) new subparagraph (iv) is added expanding eligibility
by including those partnered with a partner getting pension. Item 2 adds a note
indicating the location ofthe relevant definition.
Item 2 adds a note at the end of subsection 45(1) giving the location of the definition
of the expression partnered (partner getting pension) being used in the amendment
described in item I. That definition requires a person to be a member of a couple with
the person’s partner receiving a service pension or a social security pension.
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Veterans’ Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995
Bereavement Payment
Paragraph (a) of both items 3 and 4 make similar amendments to paragraphs 45ZE(d)
and (e). These are minor technical amendments.
Paragraph (b) of both items 3 and (4) make similar amendments to paragraphs
45ZE(d) and (e) which result in any payments under subsection 30(1) being
disregarded when calculating the adjusted income reduced rate in these bereavement
payment provisions. These amendments ensure that war widow/er’s pension is not
included in the calculation of an income support supplement bereavement payment
Commencement
Subclause 2(3) provides that items I and 2 commence, or are taken to have
commenced, on 1 October 1995.
Subclause 2(5) provides that items 3 and 4 commence on 1 January 1996.
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Veterans’ Affafrs (1 995-96Budget Measures) Legislation Amendment Bill 1995
~
SCHEDULE~7~
Amendment of the Veterans’ Entitlements Act 1986 Relating
to Medical and Other Treatment
Overview
This proposal extends automatic treatment eligibility for all veterans suffering from
post-traumatic stress disorder.
Background
Last year the Government initiated major extensions oftreatment and support services
for veterans suffering from post-traumatic stress disorder around Australia. Many
veterans have directly benefited from specialised inpatient services.
This proposal will assure the provision of appropriate early treatment to veterans for
psychiatric problems brought on by post-traumatic stress disorder. Such early
intervention in post-traumatic stress disorder cases greatly increases the likelihood of
successful treatment outcomes.
Explanation of changes
Section 85 of the Veterans’ Entitlements Act 1986 currently provides that certain
veterans are eligible to be provided with treatment. In most instances, this eligibility
is dependent on the veteran having an injury or a disease formally determined as being
war-caused. This requires the veteran to lodge a claim through the pension system.
Sub-section 85(2) refers to two of the exceptions to this rule. A veteran suffering
from either malignant neoplasia or pulmonary tuberculosis may be granted treatment
entitlement without the necessity to go through the pension system. This proposal
seeks to extend a similar arrangement to veterans suffering from post-traumatic stress
disorder.
Treatment eligibility will still require medical certification that post-traumatic stress
disorder exists but without a need to establish its link to warservice.
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Veterans Affairs (1995 96 Budget Measures) Legislation Amendment Bill 1995
The Treatment Principles will be amended to provide that treatment will be given for
any associated psychiatric disorder that it is necessary to treat, in order to provide
effectivetreatment for post-traumatic stress disorder.
Explanation of item
Item 1 amends subsection 85(2) to include post-traumatic stress disorder as a disease
for which a veteran is eligible to be provided with treatment.
Commencement
Subclause 2(2) provides that these amendments are taken to have commenced on
1 July 1995.
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Veterans‘Affairs (1995-96 Budget Measures) Legislation Amendment Bill 1995
SCHEDUII
Amendments of the Veterans’ Entitlements Act 1986 Relating
to Seniors Health Card.
Overview
These amendments to the provisions outlining eligibility for receipt of the Seniors
Health Card from the Department of Veterans’ Affairs provide for the Department to
issue a Seniors Health Card to certain widow/ers and non-illness separated spouses of
veterans. This is not an extension of eligibility for the Seniors Health Card, as these
people are currently eligible for a card from the Department of Social Security.
Background
Recipients of service and social security pensions and of income support supplement
receive a Pensioner Concession Card which gives them access to a range of
Commonwealth and State-provided concessions which include pharmaceutical and
hearing aid concessions under the National Health Act 1953 and the Hearing Services
Act 1991.
The Seniors Health Card was introduced to extend a limited range of concessions to
low income non-pensioners who have reached pension age but who are not in receipt
of one of these pensions or the supplement. The card is issued by both the
Department of Veterans’ Affairs (DVA) and by the Department of Social Security
(DSS).
Under sub-section 11 8V(1), DVA issues the card to certain veterans who would be
eligible for a service pension or a rate of service pension if they satisfied residency
requirements or if their assets reduced below the Assets Test limits. Certain partners
are also eligible for the card from DVA.
DVA cannot now issue a Seniors Health Card to a widow/er or non-illness separated
spouse of a veteran. Therefore, if a widow/er or non-illness separated spouse of a
veteran loses his or her partner service pension or income support supplement (and
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Veterans‘Affairs (1995-96 BudgetMeasures) Legislation Amendment Bill 1995
therefore the Pensioner Concession Card), he or she has to apply to the Department of
Social Security for a Seniors Health Card.
If that widow/er’s or non-illness separated spouse’s assets fluctuate in such a way that
his or her partner service pension or income support supplement is periodically lost
and gained, that person needs to alternate between.DSS and DVA for the issue of his
or her Seniors Health Card and Pensioner Concession Card.
Explanation of the changes
The proposed changes will insert a new sub-section outlining eligibility criteria for
widow/ers and non-illness separated spouses of veterans to receive a Seniors Health
Card from DVA. Should such a person meet all the criteria outlined in the new subsection, he or she will, upon losing his or her Pensioner Concession Card, become
eligible to receive the Seniors Health Card from the Department ofVeterans’ Affairs.
The proposed amendments will also include minor technical changes.
Explanation ofthe items
Item 1 is a minor technical amendment to punctuation.
Item 2 omits the note that refers to a term (“qualifying service”) which does not
appear in sub-section 11 8V(2).
Item 3 This minor technical amendment numbers an unnumbered note to sub-section
11 8V(2), inserted by the Veterans ‘Affairs Legislation Amendment Act (No 2)1994.
Item 4 adds a new sub-section (3) to Section 118. This new sub-section broadens the
eligibility criteria for a Seniors Health Card issued by the Department of Veterans’
Affairs, to include certain widow/ers and non-illness separated spouses of veterans.
Commencement
Subclause 2(3) provides that these amendments commence, or are taken to have
commenced, on 1 October 1995.
Printed by Authority by the Commonwealth Government Printer
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