Veterans' Entitlements Act 1986

This Act may be cited as the Veterans’ Entitlements Act 1986.

This Act shall come into operation on a date to be fixed by Proclamation.

The Acts specified in Parts I, II, III, IV and V of Schedule 1 are repealed.

The Acts specified in column 1 of Part VI of Schedule 1 are amended as set out in columns 2 and 3 of that Schedule.

This Act extends to the external Territories.

Chapter 2 of the Criminal Code applies to all offences against this Act.

Note: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

The Secretary may arrange for the use, under the Secretary’s control, of computer programs for any purposes for which the Commission may, or must, under this Act or a legislative instrument made for the purposes of this Act:

make a decision; or

exercise any power or comply with any obligation; or

do anything else related to making a decision or exercising a power or complying with an obligation.

Subsection (1) does not apply to the following:

a decision that the death of a veteran was not war-caused;

a decision that an injury suffered by a veteran is not a war-caused injury;

a decision that a disease contracted by a veteran is not a war-caused disease;

a decision that the death of a member of the Forces (within the meaning of Part IV), or a member of a Peacekeeping Force (within the meaning of that Part), was not defence-caused;

a decision that an injury suffered by a member of the Forces (within the meaning of Part IV), or a member of a Peacekeeping Force (within the meaning of that Part), is not a defence-caused injury;

a decision that a disease contracted by a member of the Forces (within the meaning of Part IV), or a member of a Peacekeeping Force (within the meaning of that Part), is not a defence-caused disease.

For the purposes of this Act or the legislative instrument, the Commission is taken to have:

made a decision; or

exercised a power or complied with an obligation; or

done something else related to the making of a decision or the exercise of a power or the compliance with an obligation;

that was made, exercised, complied with or done by the operation of a computer program under an arrangement made under subsection (1).

Substituted decisions

The Commission may, under a provision of this Act or of the legislative instrument, make a decision in substitution for a decision the Commission is taken to have made under paragraph (2)(a) if the Commission is satisfied that the decision made by the operation of the computer program is incorrect.

Note: For review of a decision made in substitution, see Parts IX and X.

Subsection (3) does not limit any other provision of this Act that provide for the review or reconsideration of a decision.

Sections 5A to 11B contain definitions of terms that are used in this Act.

Subsection 5Q(1) contains an entry for each expression that is defined for the purposes of this Act. That subsection is like a Dictionary.

The entry is either an actual definition of the expression or a signpost definition that identifies the provision that defines the expression.

Many other sections in this Part contain the actual definitions relating to a particular topic. For example, sections 6 to 6F deal with operational service and section 5H contains income test definitions.

In this Act, unless the contrary intention appears:

acting commissioner means a person who is acting as a commissioner because of an appointment under section 191.

Acting Deputy President means a commissioner or acting commissioner who is acting as Deputy President because of an appointment under section 192.

Acting President means a commissioner or acting commissioner who is acting as President because of an appointment under section 192 or 193.

Commission means the Repatriation Commission continued in existence by section 179.

commissioner means a person holding an office of commissioner because of an appointment under section 182.

Deputy President means the Deputy President of the Commission.

President means the President of the Commission.

In this Act, unless the contrary intention appears:

Chairperson means the Chairperson of the Repatriation Medical Authority.

Convener means the Convener of the Review Council.

councillor means the Convener or any other person holding office as a member of the Review Council.

member means the Chairperson or any other person holding office as a member of the Repatriation Medical Authority.

registered medical practitioner means a person registered or licensed as a medical practitioner under a law of a State or Territory but does not include a person so registered or licensed: whose registration, or licence to practice, as a medical practitioner in any State or Territory has been suspended, or cancelled, following an inquiry relating to his or her conduct; and who has not, after that suspension or cancellation, again been authorised to register or practise as a medical practitioner in that State or Territory.

whose registration, or licence to practice, as a medical practitioner in any State or Territory has been suspended, or cancelled, following an inquiry relating to his or her conduct; and

who has not, after that suspension or cancellation, again been authorised to register or practise as a medical practitioner in that State or Territory.

Review Council means the Specialist Medical Review Council established by section 196V.

sound medical-scientific evidence, in relation to a particular kind of injury, disease or death, has the meaning given by subsection (2).

(2) Information about a particular kind of injury, disease or death is taken to be sound medical-scientific evidence if:

the information:

is consistent with material relating to medical science that has been published in a medical or scientific publication and has been, in the opinion of the Repatriation Medical Authority, subjected to a peer review process; or

in accordance with generally accepted medical practice, would serve as the basis for the diagnosis and management of a medical condition; and

in the case of information about how that kind of injury, disease or death may be caused—meets the applicable criteria for assessing causation currently applied in the field of epidemiology.

In this Act, unless the contrary intention appears:

allotted for duty in an operational area has the meaning given by subsection (2).

operational area means an area described in column 1 of Schedule 2 during the period specified in column 2 of Schedule 2 opposite to the description of the area in column 1.

period of hostilities means:

World War 1 from its commencement on 4 August 1914 to 11 November 1918 (both included); or

World War 2 from its commencement on 3 September 1939 to 29 October 1945 (both included); or

the period of hostilities in respect of Korea from 27 June 1950 to 19 April 1956 (both included); or

the period of hostilities in respect of Malaya from 29 June 1950 to 31 August 1957 (both included); or

the period of hostilities in respect of war-like operations in operational areas from 31 July 1962 to 11 January 1973 (both included).

war to which this Act applies means World War 1 or World War 2.

World War 1 means:

the war that commenced on 4 August 1914; and

any other war in which the Crown became engaged after 4 August 1914 and before 11 November 1918.

World War 2 means:

the war that commenced on 3 September 1939; and

any other war in which the Crown became engaged after 3 September 1939 and before 3 September 1945.

Allotted for duty

(2) A reference in this Act to a person, or a unit of the Defence Force, that was allotted for duty in an operational area is a reference:

in the case of duty that was carried out in an operational area described in item 1, 2, 3, 4, 5, 6, 7 or 8 of Schedule 2 (in column 1)—to a person, or unit of the Defence Force, that is allotted for duty in the area (whether retrospectively or otherwise) by written instrument issued by the Defence Force for use by the Commission in determining a person’s eligibility for entitlements under this Act; or

in the case of duty that was carried out in an operational area described in item 3A, 3B, 9, 10, 11, 12, 13, 14 or 15 of Schedule 2 (in column 1)—to a person, or unit of the Defence Force, that is allotted for duty in the area (whether retrospectively or otherwise) by written instrument signed by the Vice Chief of the Defence Force for use by the Commission in determining a person’s eligibility for entitlements under this Act; or

to a person, or unit of the Defence Force, that is, by written instrument signed by the Defence Minister, taken to have been allotted for duty in an operational area described in item 4 or 8 in Schedule 2 (in column 1).

End of World War 1 and 2

For the purposes of this Act:

World War 1 is taken to have ended on 1 September 1921; and

World War 2 is taken to have ended on 28 April 1952.

Note 1: 1 September 1921 is the date fixed by Proclamation under the Termination of the Present War (Definition) Act 1919.

Note 2: 28 April 1952 is the date on which the Treaty of Peace with Japan came into force.

In this Act, unless the contrary intention appears:

allied country means any country (not being Australia or a Commonwealth country): that was, at the relevant time, at war with the enemy; or the forces of which were, at the relevant time, engaged in an operational area against forces against which the forces of the Commonwealth were engaged in that area; and includes: a state, province or other territory that is one of 2 or more territories that together form, or formed at the relevant time, a discrete part of such a country; and a place that is, or was at the relevant time, a territory, dependency or colony (however described) of such a country.

that was, at the relevant time, at war with the enemy; or

the forces of which were, at the relevant time, engaged in an operational area against forces against which the forces of the Commonwealth were engaged in that area;

and includes:

a state, province or other territory that is one of 2 or more territories that together form, or formed at the relevant time, a discrete part of such a country; and

a place that is, or was at the relevant time, a territory, dependency or colony (however described) of such a country.

allied mariner means a person who: was during the period of World War 2 from its commencement to and including 29 October 1945: a master, officer or seaman employed under agreement, or an apprentice employed under indenture, in sea-going service on a ship that was engaged in trading; or a master, officer, seaman or apprentice employed in a lighthouse tender or pilot ship; or employed as a pilot; or a master, officer, seaman or apprentice employed in sea-going service on a ship (being a hospital ship, troop transport, supply ship, tug, cable ship, salvage ship, dredge, fishing vessel or fisheries investigation vessel) that was operated by, or on behalf of, a foreign country; and was at any time during the course of that employment during the period referred to in paragraph (a) on a ship that was: operating from a port in Australia or from a port in a Commonwealth country or an allied country; or engaged in trading with Australia or with a Commonwealth country or an allied country; or engaged in providing assistance or support to the Defence Force, or to the forces, or any part of the forces, of a Commonwealth country or an allied country; or engaged in providing assistance or support to Australia or to a Commonwealth country or an allied country; but does not include: an Australian mariner; or a person who has, at any time, been employed by a foreign country that was, at that time, at war with Australia; or a person who has, at any time, been employed: on a ship that operated to, or was operating from, a port in a country that was, at that time, at war with Australia; or on a ship that was engaged in trading with a country that was, at that time, at war with Australia; or on a ship that was engaged in providing assistance or support to the enemy or to a country that was, at that time, at war with Australia.

was during the period of World War 2 from its commencement to and including 29 October 1945:

a master, officer or seaman employed under agreement, or an apprentice employed under indenture, in sea-going service on a ship that was engaged in trading; or

a master, officer, seaman or apprentice employed in a lighthouse tender or pilot ship; or

employed as a pilot; or

a master, officer, seaman or apprentice employed in sea-going service on a ship (being a hospital ship, troop transport, supply ship, tug, cable ship, salvage ship, dredge, fishing vessel or fisheries investigation vessel) that was operated by, or on behalf of, a foreign country; and

was at any time during the course of that employment during the period referred to in paragraph (a) on a ship that was:

operating from a port in Australia or from a port in a Commonwealth country or an allied country; or

engaged in trading with Australia or with a Commonwealth country or an allied country; or

engaged in providing assistance or support to the Defence Force, or to the forces, or any part of the forces, of a Commonwealth country or an allied country; or

engaged in providing assistance or support to Australia or to a Commonwealth country or an allied country;

but does not include:

an Australian mariner; or

a person who has, at any time, been employed by a foreign country that was, at that time, at war with Australia; or

a person who has, at any time, been employed:

on a ship that operated to, or was operating from, a port in a country that was, at that time, at war with Australia; or

on a ship that was engaged in trading with a country that was, at that time, at war with Australia; or

on a ship that was engaged in providing assistance or support to the enemy or to a country that was, at that time, at war with Australia.

allied veteran means a person: who has been appointed or enlisted as a member of the defence force established by an allied country; and who has rendered continuous full-time service as such a member during a period of hostilities; but does not include a person who has served at any time: in the forces of a country that was, at that time, at war with Australia, or in forces engaged in supporting or assisting the forces of such a country; or in forces that were, at that time, engaged in war-like operations against the Naval, Military or Air Forces of Australia.

who has been appointed or enlisted as a member of the defence force established by an allied country; and

who has rendered continuous full-time service as such a member during a period of hostilities;

but does not include a person who has served at any time:

in the forces of a country that was, at that time, at war with Australia, or in forces engaged in supporting or assisting the forces of such a country; or

in forces that were, at that time, engaged in war-like operations against the Naval, Military or Air Forces of Australia.

Note: See also subsection 5R(2).

Australian mariner means a person who was, during the period of World War 2 from its commencement to and including 29 October 1945: a master, officer or seaman employed under agreement, or an apprentice employed under indenture, in sea-going service on a ship registered in Australia that was engaged in trading between a port in a State or Territory and any other port; or a master, officer or seaman employed under agreement, or an apprentice employed under indenture, in sea-going service on a ship registered outside Australia who was, or whose dependants were, resident in Australia for at least 12 months immediately before he or she entered into the agreement or indenture; or a master, officer, seaman or apprentice employed on a lighthouse tender, or pilot ship of the Commonwealth or of a State; or a pilot employed or licensed by Australia or a State or by an authority constituted by or under a law of the Commonwealth or of a State; or a master, officer, seaman or apprentice employed in sea-going service on a ship owned in Australia and operating from an Australian port, being a hospital ship, troop transport, supply ship, tug, cable ship, salvage ship, dredge, fishing vessel or fisheries investigation vessel; or a member or employee of the Commonwealth Salvage Board engaged in sea-going service under the direction of that Board; or a master, officer, seaman or apprentice employed in sea-going service on a ship registered in New Zealand who the Commission is satisfied was engaged in Australia and is not entitled to compensation under a law of a Commonwealth country providing for the payment of pensions and other payments to seamen who suffered death or disablement as a result of World War 2.

a master, officer or seaman employed under agreement, or an apprentice employed under indenture, in sea-going service on a ship registered in Australia that was engaged in trading between a port in a State or Territory and any other port; or

a master, officer or seaman employed under agreement, or an apprentice employed under indenture, in sea-going service on a ship registered outside Australia who was, or whose dependants were, resident in Australia for at least 12 months immediately before he or she entered into the agreement or indenture; or

a master, officer, seaman or apprentice employed on a lighthouse tender, or pilot ship of the Commonwealth or of a State; or

a pilot employed or licensed by Australia or a State or by an authority constituted by or under a law of the Commonwealth or of a State; or

a master, officer, seaman or apprentice employed in sea-going service on a ship owned in Australia and operating from an Australian port, being a hospital ship, troop transport, supply ship, tug, cable ship, salvage ship, dredge, fishing vessel or fisheries investigation vessel; or

a member or employee of the Commonwealth Salvage Board engaged in sea-going service under the direction of that Board; or

a master, officer, seaman or apprentice employed in sea-going service on a ship registered in New Zealand who the Commission is satisfied was engaged in Australia and is not entitled to compensation under a law of a Commonwealth country providing for the payment of pensions and other payments to seamen who suffered death or disablement as a result of World War 2.

Commonwealth country means a country (other than Australia) that is, or was at the relevant time, a part of the Dominions of the Crown, and includes: a state, province or other territory that is one of 2 or more territories that together form, or formed at the relevant time, a discrete part of such a country; and a place that is, or was at the relevant time, a territory, dependency or colony (however described) of a part of such a country.

a state, province or other territory that is one of 2 or more territories that together form, or formed at the relevant time, a discrete part of such a country; and

a place that is, or was at the relevant time, a territory, dependency or colony (however described) of a part of such a country.

Commonwealth veteran means a person who rendered continuous full-time service as a member of: the naval, military or air forces; or the nursing or auxiliary services of the naval, military or air forces; or the women’s branch of the naval, military or air forces; of a Commonwealth country during a period of hostilities.

the naval, military or air forces; or

the nursing or auxiliary services of the naval, military or air forces; or

the women’s branch of the naval, military or air forces;

of a Commonwealth country during a period of hostilities.

continuous full-time service means:

in relation to a member of the Defence Force:

service in the Naval Forces of the Commonwealth of the kind known as continuous full-time naval service; or

service in the Military Forces of the Commonwealth of the kind known as continuous full-time military service; or

service in the Air Force of the Commonwealth of the kind known as continuous full-time air force service; or

in relation to a member of the naval, military or air forces of a Commonwealth country or an allied country—service in those forces of a kind similar to a kind of service referred to in subparagraph (a)(i), (ii) or (iii).

Note: See also subsection 5R(1).

Defence Force has the same meaning as in the Defence Act 1903.

defence force established by a Commonwealth country means:

the naval, military or air forces of the country; or

the nursing and auxiliary services of the naval, military or air forces of the country; or

the women’s branch of the naval, military or air forces of the country.

defence force established by an allied country means:

the regular naval, military or air forces; and

the nursing or auxiliary services of the regular naval, military or air forces; and

the women’s branch of the regular naval, military or air forces;

raised by an allied country and operated by the country with regular military-like lines of command, that is to say, raised and operated in such a manner that the members of those forces and services:

were formally appointed to, or enlisted in, those forces or services; and

were required to wear uniforms or insignia distinguishing them as members of those forces or services; and

were required to carry arms openly; and

were subject to the rules and conventions of warfare.

Note 1: For extended meaning of this term in relation to a government-in-exile, see subsection (3).

Note 2: For an extended meaning of this term in relation to an allied veteran see subsection 5R(2).

eligible civilian means a person: who was killed, or detained by the enemy, during World War 2; and who was, at the time the person was killed or first detained: a British subject; and a resident, but not an indigenous inhabitant, of the Territory of Papua or the Territory of New Guinea; and who was not, at that time: rendering service as a member of the Defence Force; or employed by the Commonwealth on a special mission outside Australia.

who was killed, or detained by the enemy, during World War 2; and

who was, at the time the person was killed or first detained:

a British subject; and

a resident, but not an indigenous inhabitant, of the Territory of Papua or the Territory of New Guinea; and

who was not, at that time:

rendering service as a member of the Defence Force; or

employed by the Commonwealth on a special mission outside Australia.

enemy means:

in relation to World War 1 or World War 2—the naval, military or air forces, or any part of the naval, military or air forces, of a State at war with the Crown during that war; and

in relation to service in, or a period of hostilities in respect of, an operational area—the naval, military or air forces against which the Naval, Military or Air Forces of the Commonwealth were engaged in that operational area; and

persons assisting any of those forces.

fishing vessel means a ship employed in connection with the occupation of sea fishing for profit.

former refugee means a person who was a refugee but does not include a person who ceased to be a refugee because his or her entry permit or visa (as the case may be) was cancelled.

government-in-exile includes a person, or group of persons, claiming to represent, or administer, the country or a part of the country or the people of the country.

member of a unit of the Defence Force means:

a member of the Defence Force; or

another person who is:

a member of the unit; or

attached to the unit; or

appointed for continuous full-time service with the unit.

Note: See also subsection 5R(1).

member of the Defence Force includes a person appointed for continuous full-time service with a unit of the Defence Force.

member of the Interim Forces means a person who: enlisted or re-engaged in, or was appointed or re-appointed to, the Defence Force for continuous full-time service for a term of not more than 2 years; or was appointed for continuous full-time service with a unit of the Defence Force for a term of not more than 2 years; on or after 1 July 1947 and before 1 July 1949.

Note: See also subsection (2).

enlisted or re-engaged in, or was appointed or re-appointed to, the Defence Force for continuous full-time service for a term of not more than 2 years; or

was appointed for continuous full-time service with a unit of the Defence Force for a term of not more than 2 years;

on or after 1 July 1947 and before 1 July 1949.

non-warlike service means service in the Defence Force of a kind determined in writing by the Defence Minister to be non-warlike service.

operational service has the meaning given by sections 6 to 6F.

qualifying service has the meaning given in section 7A.

refugee has the meaning given by subsection (4).

special mission means a mission that, in the opinion of the Commission, was of special assistance to the Commonwealth in the prosecution of a war to which this Act applies.

unit of the Defence Force means a body, contingent or detachment of the Defence Force.

veteran means:

a person (including a deceased person):

who is, because of section 7, taken to have rendered eligible war service; or

in respect of whom a pension is, or pensions are, payable under subsection 13(6); and

in Parts III and VIIC also includes a person who is: a Commonwealth veteran; or an allied veteran; or an allied mariner.

a Commonwealth veteran; or

an allied veteran; or

an allied mariner.

Note: Commonwealth veteran, allied veteran and allied mariner are defined in this subsection.

warlike service means service in the Defence Force of a kind determined in writing by the Defence Minister to be warlike service.

Army Medical Corps Nursing Service

For the purposes of this Act, a member of the Army Medical Corps Nursing Service who:

rendered service during World War 1, either within or outside Australia; and

rendered the service as such a member in accordance with an acceptance or appointment by the Director-General of Medical Services for service outside Australia;

is taken to have been serving as a member of the Defence Force while rendering that service.

Defence force of government-in-exile

(3) In relation to any period during which there was a government-in-exile in relation to an allied country, defence force established by an allied country includes:

the regular naval, military or air forces; and

the nursing or auxiliary services of the regular naval, military or air forces; and

the women’s branch of the regular naval, military or air forces;

raised by that government-in-exile and operated by it with regular military-like lines of command, that is to say, raised and operated in such a manner that the members of those forces and services:

were formally appointed to, or enlisted in, those forces or services; and

were required to wear uniforms or insignia distinguishing them as members of those forces or services; and

were required to carry arms openly; and

were subject to the rules and conventions of warfare.

Note: For an extended meaning of the defence force of a government-in-exile in relation to an allied veteran see subsection 5R(2).

Refugee

(4) For the purposes of refugee if the person:Part III, a person is a

is taken, under the Migration Reform (Transitional Provisions) Regulations, to be the holder of a transitional (permanent) visa because the person was, immediately before 1 September 1994, the holder of:

a visa or entry permit that fell within Division 1.3—Group 1.3 (Permanent resident (refugee and humanitarian) (offshore)) in Part 1 of Schedule 1 to the Migration (1993) Regulations as then in force; or

a visa or entry permit that fell within Division 1.5—Group 1.5 (Permanent resident (refugee and humanitarian) (on-shore)) in Part 1 of Schedule 1 to the Migration (1993) Regulations as then in force; or

was, immediately before 1 February 1993, the holder of a visa or entry permit of a class prescribed under the Migration Regulations as then in force that corresponds to a visa or entry permit referred to in subparagraph (a)(i) or (ii); or

is the holder of:

a permanent protection visa; or

a permanent visa of a class referred to in Schedule 2A; or

a permanent visa of a class referred to in a declaration of the Minister under subsection (5) that is in force.

Declaration of class of visas

If:

(a) after the commencement of this subsection, a class of permanent visas (other than a class referred to in Schedule 2A) is prescribed by regulations made for the purposes of Migration Act 1958; andsection 31 of the

the Minister is of the view that a person holding a visa of that class should be regarded as a refugee for the purposes of Part III;

the Minister may, by legislative instrument, declare that class of visas to be a class of visas for the purposes of subparagraph (4)(c)(iii).

In this Act, unless the contrary intention appears:

blinded in an eye has the meaning given by subsection (3).

disease means:

any physical or mental ailment, disorder, defect or morbid condition (whether of sudden onset or gradual development); or

the recurrence of such an ailment, disorder, defect or morbid condition;

but does not include:

the aggravation of such an ailment, disorder, defect or morbid condition; or

a temporary departure from:

the normal physiological state; or

the accepted ranges of physiological or biochemical measures;

that results from normal physiological stress (for example, the effect of exercise on blood pressure) or the temporary effect of extraneous agents (for example, alcohol on blood cholesterol levels).

incapacity from a defence-caused injury or incapacity from a defence-caused disease has the meaning given by subsection (2).

incapacity from a war-caused injury or incapacity from a war-caused disease has the meaning given by subsection (2).

injury means any physical or mental injury (including the recurrence of a physical or mental injury) but does not include: a disease; or the aggravation of a physical or mental injury. War-caused injury; war-caused disease; defence-caused injury; defence-caused disease

a disease; or

the aggravation of a physical or mental injury.

War-caused injury; war-caused disease; defence-caused injury; defence-caused disease

In this Act, unless the contrary intention appears:

(a) a reference to the incapacity of a veteran from a war-caused injury or a war-caused disease; or

(b) a reference to the incapacity of a person who is a member of the Forces, or a member of a Peacekeeping Force (as defined by subsection 68(1)), from a defence-caused injury or a defence-caused disease;

is a reference to the effects of that injury or disease and not a reference to the injury or disease itself.

Blinded in an eye

Note: For war-caused injury and war-caused disease see section 9.

(3) For the purposes of this Act, a person is taken to have been blinded in an eye if:

the person has lost the eye; or

in the opinion of the Commission, the eyesight of the person in that eye is so defective that the person has no useful sight in that eye.

In this Act, unless the contrary intention appears:

couple has the meaning given by subsections (2), (3) and (4).

member of a couple has the meaning given by subsections (2), (3), (4) and (4A).

non-illness separated spouse means a person: who is legally married to another person but living separately and apart from that other person on a permanent basis; and whose separation has not resulted in a determination under subsection 5R(5).

who is legally married to another person but living separately and apart from that other person on a permanent basis; and

whose separation has not resulted in a determination under subsection 5R(5).

partner means the other member of the couple.

partnered has the meaning given by subsection (5).

partnered (partner getting benefit) has the meaning given by subsection (5).

partnered (partner getting neither pension nor benefit) has the meaning given by subsection (5).

partnered (partner getting pension) has the meaning given by subsection (5).

partnered (partner getting pension or benefit) has the meaning given by subsection (5).

prohibited relationship has the meaning given by subsections (6) and (7).

war widow means a woman: who was the partner of, was legally married to, or was the wholly dependent partner of: a veteran; or a person who was a member of the Forces for the purposes of Part II or IV of this Act; or a person who was a member (within the meaning of the MRCA); immediately before the death of the veteran or person; and who: is receiving a pension payable under Part II or IV of this Act at a rate determined under or by reference to subsection 30(1); or is receiving the weekly amount mentioned in paragraph 234(1)(b) of the MRCA (including a reduced weekly amount because of a choice under section 236 of the MRCA) or has received a lump sum mentioned in subsection 236(5) of the MRCA; or is receiving a pension that is payable under the law of a foreign country, and that is, in the opinion of the Commission, similar in character to a pension referred to in subparagraph (i).

who was the partner of, was legally married to, or was the wholly dependent partner of:

a veteran; or

a person who was a member of the Forces for the purposes of Part II or IV of this Act; or

a person who was a member (within the meaning of the MRCA);

immediately before the death of the veteran or person; and

who:

is receiving a pension payable under Part II or IV of this Act at a rate determined under or by reference to subsection 30(1); or

is receiving the weekly amount mentioned in paragraph 234(1)(b) of the MRCA (including a reduced weekly amount because of a choice under section 236 of the MRCA) or has received a lump sum mentioned in subsection 236(5) of the MRCA; or

is receiving a pension that is payable under the law of a foreign country, and that is, in the opinion of the Commission, similar in character to a pension referred to in subparagraph (i).

war widower means a man: who was the partner of, was legally married to, or was the wholly dependent partner of: a veteran; or a person who was a member of the Forces for the purposes of Part II or IV of this Act; or a person who was a member (within the meaning of the MRCA); immediately before the death of the veteran or person; and who: is receiving a pension payable under Part II or IV of this Act at a rate determined under or by reference to subsection 30(1); or is receiving the weekly amount mentioned in paragraph 234(1)(b) of the MRCA (including a reduced weekly amount because of a choice under section 236 of the MRCA) or has received a lump sum mentioned in subsection 236(5) of the MRCA; or is receiving a pension that is payable under the law of a foreign country, and that is, in the opinion of the Commission, similar in character to a pension referred to in subparagraph (i).

who was the partner of, was legally married to, or was the wholly dependent partner of:

a veteran; or

a person who was a member of the Forces for the purposes of Part II or IV of this Act; or

a person who was a member (within the meaning of the MRCA);

immediately before the death of the veteran or person; and

who:

is receiving a pension payable under Part II or IV of this Act at a rate determined under or by reference to subsection 30(1); or

is receiving the weekly amount mentioned in paragraph 234(1)(b) of the MRCA (including a reduced weekly amount because of a choice under section 236 of the MRCA) or has received a lump sum mentioned in subsection 236(5) of the MRCA; or

is receiving a pension that is payable under the law of a foreign country, and that is, in the opinion of the Commission, similar in character to a pension referred to in subparagraph (i).

wholly dependent partner has the meaning given by the MRCA.

widow means:

a woman who was the partner of a person immediately before the person died; or

a woman who was legally married to a person, but living separately and apart from the person on a permanent basis, immediately before the person died.

widower means:

a man who was a partner of a person immediately before the person died; or

a man who was legally married to a person, but living separately and apart from the person on a permanent basis, immediately before the person died.

Member of a couple—general

(2) A person is a member of a couple for the purposes of this Act if:

the person is legally married to another person and is not living separately and apart from the other person on a permanent basis; or

both of the following conditions are met:

(i) a relationship between the person and another person (whether of the same sex or a different sex) is registered under a law of a State or Territory prescribed for the purposes of Acts Interpretation Act 1901 as a kind of relationship prescribed for the purposes of that section;section 2E of the

the person is not living separately and apart from the other person on a permanent basis; or

all of the following conditions are met:

(i) the person is living with another person, whether of the same sex or a different sex (in this paragraph called the partner);

the person is not legally married to the partner;

the person and the partner are, in the Commission’s opinion (formed as mentioned in section 11A), in a de facto relationship;

the person and the partner are not within a prohibited relationship.

Note 1: For living with a person see subsection (3).

Note 3: Subsection 5R(5) (determination in relation to an illness separated couple) is a qualification to the definition of a member of a couple.

Note 4: Subsection 5R(6) (determination in relation to a respite care couple) is a qualification to the definition of a member of a couple.

(3) For the purposes of subparagraph (2)(b)(i), a person is to be treated as living with another person during:

any temporary absence of one of those persons;

an absence of one of those persons resulting from illness or infirmity;

if the Commission is of the opinion that they would, but for the absence, have been living together during that period.

Member of a couple—special excluding determination

(4) A person is not a member of a couple if a determination under subsection 5R(3) is in force in relation to the person.

Note: Subsection 5R(3) allows the Commission to treat a person who is a member of a couple as not being a member of a couple in special circumstances.

The partner of a person who:

is receiving a youth allowance under the Social Security Act; and

is not independent within the meaning of Part 3.5 of that Act;

is not a member of a couple for the purposes of:

the provisions of this Act referred to in the table at the end of this subsection; and

any provision of this Act that applies for the purposes of a provision mentioned in paragraph (c).

Note: Paragraph (d) has the effect of treating a person as not being a member of a couple in provisions that apply for the purposes of the income test, assets test or compensation recovery provisions, including section 5H (Income test definitions), sections 5L and 5LA (Assets test definitions), section 5NB (Compensation recovery definitions) and Divisions 1 to 11 of Part IIIB (General provisions relating to the income and assets tests).

Standard family situation categories

For the purposes of this Act:

(a) a person is partnered if the person is a member of a couple; and

(b) a person is partnered (partner getting neither pension nor benefit) if the person is a member of a couple and the person’s partner:

is not receiving a service pension; and

is not receiving income support supplement; and

is not receiving a veteran payment; and

is not receiving a social security pension; and

is not receiving a social security benefit; and

(c) a person is partnered (partner getting pension or benefit) if the person is a member of a couple and the person’s partner is receiving:

a service pension; or

income support supplement; or

a veteran payment; or

a social security pension; or

a social security benefit; and

(d) a person is partnered (partner getting pension) if the person is a member of a couple and the person’s partner is receiving:

a service pension; or

income support supplement; or

a veteran payment; or

a social security pension; and

(e) a person is partnered (partner getting benefit) if the person is a member of a couple and the person’s partner is receiving a social security benefit.

Prohibited relationship

(6) For the purposes of this Act, a person and his or her partner are within a prohibited relationship if the person is:

an ancestor or a descendant of the partner; or

a brother, sister, half-brother or half-sister of the partner.

For the purposes of subsection (6), a child who is, or has ever been, an adopted child of a person is taken to be the natural child of that person and the person is taken to be the natural parent of the child.

In this Act, unless the contrary intention appears:

Aboriginal study assistance scheme means:

the ABSTUDY Scheme; or

the Aboriginal Overseas Study Assistance Scheme; or

a scheme prescribed for the purposes of this definition.

adopted child means a child adopted under the law of any place, whether in Australia or not, relating to the adoption of children.

child means:

a person who has not turned 16; or

a person who:

has turned 16 but has not turned 25; and

is receiving full-time education at a school, college or university;

but does not include such a person if the person is receiving:

a disability support pension; or

a carer payment; or

a pension PP (single); or

a widowed person allowance; or

a social security benefit (except youth allowance paid because the person is at least 16 but less than 25 and is receiving full-time education at a school, college or university);

under the Social Security Act.

dependent child has the same meaning as in the Social Security Act.

family tax benefit has the meaning given by subsection 3(1) of the Family Assistance Act.

FTB child has the meaning given by Subdivision A of Division 1 of Part 3 of the Family Assistance Act.

maximum Part A rate of family tax benefit is the maximum rate worked out in step 1 of the method statement in clause 3 of Schedule 1 to the Family Assistance Act.

parent has a meaning affected by section 10A.

regular care child has the meaning given by subsection 3(1) of the Family Assistance Act.

step-child: without limiting who is a step-child of a person for the purposes of this Act, someone who is a child of a partner of the person is the step-child of the person, if he or she would be the person’s step-child except that the person is not legally married to the partner.

step-parent: without limiting who is a step-parent of a person for the purposes of this Act, someone who is a partner of a parent of the person is the step-parent of the person, if he or she would be the person’s step-parent except that he or she is not legally married to the person’s parent.

When a person becomes a dependent child

A person becomes a dependent child at the time when the person would become a dependent child for the purposes of the Social Security Act if that Act applied in respect of the person.

In this Act, unless the contrary intention appears:

Australian resident has the meaning given by subsection (1AA).

holder, in relation to a visa, has the same meaning as in the Migration Act 1958.

permanent visa, special category visa and special purpose visa have the same meanings as in the Migration Act 1958.

(1AA) An Australian resident is a person who:

resides in Australia; and

is one of the following:

an Australian citizen;

the holder of a permanent visa;

the holder of a special category visa who is likely to remain permanently in Australia;

the holder of a special purpose visa who is likely to remain permanently in Australia.

Note 1: For holder, permanent visa and special purpose visa see subsection (1).

Note 2: Australian citizen is defined in the Australian Citizenship Act 2007.

In deciding for the purposes of this Act whether or not a person resides in Australia, regard must be had to:

the nature of the accommodation used by the person in Australia; and

the nature and extent of the family relationships the person has in Australia; and

the nature and extent of the person’s employment, business or financial ties with Australia; and

the nature and extent of the person’s assets located in Australia; and

the frequency and duration of the person’s travel outside Australia; and

any other matter relevant to determining whether the person intends to remain permanently in Australia.

(1AB) For the purposes of paragraph (1A)(b), family relationships are taken to include (without limitation):

relationships between partners; and

relationships of child and parent that arise if someone is the parent of a person under section 10A; and

any other relationship that would be a family relationship if a relationship mentioned in paragraph (a) or (b) is taken to be a family relationship.

Papua New Guinea residents

For the purposes of this Act (other than Part VIIC), a person (other than an indigenous inhabitant of the Territory of Papua or the Territory of New Guinea) resident in Papua New Guinea immediately before it became an independent sovereign State, is taken to be an Australian resident so long as the person continues to reside in Papua New Guinea.

If:

a person who is receiving a service pension, income support supplement or a veteran payment is taken to be an Australian resident under subsection (2); and

the person’s partner was resident in Papua New Guinea after it became an independent sovereign State;

the partner is, for the purposes of Parts III, IIIA, IIIAA and IIIB, also taken to be an Australian resident.

If:

a person who is receiving a service pension, income support supplement or a veteran payment is taken to be an Australian resident under subsection (2); and

the person’s non-illness separated spouse was resident in Papua New Guinea after it became an independent sovereign State;

the non-illness separated spouse is, for the purposes of Parts III, IIIA, IIIAA and IIIB, also taken to be an Australian resident.

(1) In this Act, the combined couple rate of pension supplement is $2,199.60.

Note 1: This rate is indexed 6 monthly in line with CPI increases (see sections 59B to 59E).

Note 2: This rate is an annual rate.

(2) In this Act, the combined couple rate of minimum pension supplement is $1,185.60.

Note 1: This rate is indexed 6 monthly in line with CPI increases (see sections 59B to 59E).

Note 2: This rate is an annual rate.

(3) In this Act, a person’s minimum pension supplement amount is the amount worked out by:

applying the applicable percentage in the following table to the combined couple rate of minimum pension supplement; and

if:

the person is not partnered; and

the amount resulting from paragraph (a) is not a multiple of $2.60;

rounding the amount up or down to the nearest multiple of $2.60 (rounding up if the amount is not a multiple of $2.60 but is a multiple of $1.30).

Note: A person’s minimum pension supplement amount is an annual rate.

(4) In this Act, a person’s pension supplement basic amount depends on which family situation in the following table applies to the person. The person’s pension supplement basic amount is the corresponding amount set out in the table.

Note 1: Each amount in the table will be indexed 6 monthly in line with CPI increases (see sections 59B to 59E).

Note 2: A person’s pension supplement basic amount is an annual rate.

(5) In this Act, the daily rate of tax-exempt pension supplement, for a person who is receiving a service pension, income support supplement or a veteran payment is the amount a day worked out using the table.

Note: The portion of the person’s service pension, income support supplement or veteran payment equal to the tax-exempt pension supplement is exempt from income tax (see sections 52-65 and 52-70 of the Income Tax Assessment Act 1997).

If a person is receiving a service pension at a rate that:

is worked out under subpoint SCH6-A1(4) of Schedule 6 and is the revised rate; or

is worked out under subpoint SCH6-A1(5) of Schedule 6;

subsection (5) applies in relation to the person and the pension as if the person had a pension supplement amount equal to what would be the person’s pension supplement amount if the person were receiving the service pension at the rate worked out under subpoint SCH6-A1(4) of Schedule 6 and equal to the provisional rate.

In this Act, unless the contrary intention appears:

adjusted income, in relation to a person for the purpose of assessment of the rate of income support supplement, means the sum of:

the person’s ordinary income; and

a payment to the person that is a payment in respect of incapacity or death resulting from employment in connection with a war or war-like operations in which the Crown has been engaged, other than:

a pension under Part II or IV (other than a pension that is payable under section 30 to a dependant of a deceased veteran); or

(ii) a pension payable because of subsection 4(6) or (8B) of the Veterans’ Entitlements (Transitional Provisions and Consequential Amendments) Act 1986 (other than a pension payable in respect of a child); and

any instalment of pension payable to the person under subsection 30(1); and

if compensation under section 233 of the MRCA is payable to the person and the person has not made a choice under section 236 of the MRCA—any payment of the weekly amount mentioned in paragraph 234(1)(b) of the MRCA; and

if compensation under section 233 of the MRCA is payable to the person and the person has made a choice under section 236 of the MRCA—any weekly amount mentioned in paragraph 234(1)(b) of the MRCA that the person would have been paid if the person had not made that choice; and

any instalment of pension that is payable to the person under the law of a foreign country and is, in the opinion of the Commission, similar in character to the pension referred to in paragraph (c).

approved exchange trading system has the meaning given by subsection (11).

available money means money that: is held by or on behalf of the person; and is not deposit money of the person; and is not the subject of a loan made by the person.

is held by or on behalf of the person; and

is not deposit money of the person; and

is not the subject of a loan made by the person.

deposit money means the person’s money that is deposited in an account with a financial institution.

disposes of ordinary income has the meaning given by section 48.

domestic payment has the meaning given by subsection (3).

earned, derived or received has the meaning given by subsection (2).

exchange trading system has the meaning given by subsection (10).

exempt lump sum has the meaning given by subsections (12) and (12A).

home equity conversion agreement means an agreement under which the repayment of an amount paid to or on behalf of the person, or the person’s partner, is secured by a mortgage of the principal home of the person or the person’s partner.

income, in relation to a person, means:

Note 1: See also subsection (7).

Note 2: A home equity access scheme advance payment (within the meaning of Subdivision E of Division 11 of Part IIIB) is an example of a payment under a home equity conversion agreement.

an income amount earned, derived or received by the person for the person’s own use or benefit; or

a periodical payment by way of gift or allowance; or

a periodical benefit by way of gift or allowance;

but does not include an amount that is excluded under subsection (4), (5) or (8).

income amount means:

Note 1: See also sections 46B and 46C (business income), Division 3 of Part IIIB (income from financial assets (including income streams (short term) and certain income streams (long term)) and Division 4 of Part IIIB (income from income streams not covered by Division 3 of Part IIIB).

Note 2: Where a person or a person’s partner has disposed of income, the person’s income may be taken to include the amount which has been disposed of—see sections 48–48E.

Note 3: Amounts of maintenance income are not excluded amounts.

valuable consideration; or

personal earnings; or

moneys; or

profits;

(whether of a capital nature or not).

instalment of parental leave pay means an instalment of parental leave pay under the Paid Parental Leave Act 2010.

ordinary income means income that is not maintenance income or an exempt lump sum.

Earned, derived or received

Note 1: For maintenance income see section 5K. For exempt lump sum, see subsections (12) and (12A).

Note 2: The receipt of periodic compensation payments may result in reduction of the person’s rate of service pension, income support supplement or veteran payment under Part IIIC. If this happens, the payments are not treated as ordinary income (see section 59X).

Note 3: For provisions affecting the amount of a person’s ordinary income see sections 46 and 46A (ordinary income concept), sections 46B and 46C (business income), Division 3 of Part IIIB (income from financial assets (including income streams (short term) and certain income streams (long term)) and Division 4 of Part IIIB (income from income streams not covered by Division 3 of Part IIIB).

(2) A reference in this Act to an income amount earned, derived or received is a reference to:

an income amount earned, derived or received by any means; and

an income amount earned, derived or received from any source (whether within or outside Australia).

Domestic payments

(3) A payment received by a person is a domestic payment for the purposes of this Act if:

the person receives the payment on the disposal of an asset of the person; and

the asset was used, immediately before the disposal, by the person or the person’s partner wholly or substantially for private or domestic purposes; and

the asset was used by the person or the person’s partner wholly or substantially for those purposes for:

a period of 12 months before the disposal; or

if the Commission considers it appropriate—a period of less than 12 months before the disposal.

Excluded amounts—home equity conversion (not a member of a couple)

(4) If a person is not a member of a couple, an amount paid to or on behalf of the person under a home equity conversion agreement is an excluded amount for the person to the extent that the total amount owed by the person from time to time under home equity conversion agreements does not exceed $40,000.

Excluded amounts—home equity conversion (member of a couple)

(5) If a person is a member of a couple, an amount paid to or on behalf of the person or the person’s partner under a home equity conversion agreement is an excluded amount for the person to the extent that the total amount owed by the person and the person’s partner under home equity conversion agreements from time to time does not exceed $40,000.

Home equity conversion (amount owed)

For the purposes of this Act, the amount owed by a person under a home equity conversion agreement is the principal amount secured by the mortgage concerned and does not include:

any amount representing mortgage fees; or

any amount representing interest; or

any similar liability whose repayment is also secured by the mortgage.

Home equity conversion (principal home)

(7) For the purposes of the definition of home equity conversion agreement in subsection (1), an asset cannot be a person’s principal home unless the person or the person’s partner has a beneficial interest (but not necessarily the sole beneficial interest) in the asset.

Excluded amounts—general

The following amounts are not income in relation to a person for the purposes of this Act:

a payment under Part III or Part IIIA;

a veteran payment;

a home equity access scheme advance payment (within the meaning of section 52ZBA);

a payment of an instalment of pension under Part II or IV;

a payment of an instalment of a supplement under Part VIIA (veterans supplement);

(c) a payment of an instalment of a pension (other than a pension payable in respect of a child) payable because of subsection 4(6) or (8B) of the Veterans’ Entitlements (Transitional Provisions and Consequential Amendments) Act 1986;

a payment (other than a payment referred to in paragraph (b) or (c)) that is a payment in respect of incapacity or death resulting from employment in connection with a war or war-like operations in which the Crown has been engaged;

Note: However, a payment referred to in paragraph (b), (c) or (e) is counted in working out a person’s total income for the purposes of the hardship rules (see section 52Z).

any payment of compensation (other than a payment referred to in paragraph (e)) to the extent that the payment is taken into account:

under Division 5A of Part II; or

under section 74;

to reduce a pension payable to the person under Part II or IV, as the case requires;

Note: However, a payment referred to in paragraph (ea) is counted in working out a person’s total income for the purposes of the hardship rules (see section 52Z).

a payment by way of allowance (other than a loss of earnings allowance) under Part VI of this Act;

Note: However, a payment referred to in paragraph (f) is counted in working out a person’s total income for the purposes of the hardship rules (see section 52Z).

a payment, by a foreign country, of an allowance or annuity that is of a similar kind to decoration allowance payable under section 102 or to Victoria Cross allowance payable under section 103;

Note: However, a payment referred to in paragraph (faa) is counted in working out a person’s total income for the purposes of the hardship rules (see section 52Z).

a payment under Part VIB (prisoner of war recognition supplement);

Note: However, a payment referred to in paragraph (faaa) is counted in working out a person’s total income for the purposes of the hardship rules (see section 52Z).

a payment known as a student start-up scholarship payment, or a relocation scholarship payment, under the Veterans’ Children Education Scheme;

a payment under Part VIIAD (energy supplement);

a payment under the Social Security Act;

a payment under the ABSTUDY Scheme;

the amount or value of a scholarship known as a Commonwealth Trade Learning Scholarship;

(hab) a payment of an approved scholarship (Social Security Act 1991) awarded on or after 1 September 1990;within the meaning of subsection 8(1) of the

the amount or value of a scholarship:

(i) provided for under Higher Education Support Act 2003 (Indigenous student assistance grants); andPart 2-2A of the

(ii) specified under subsection 8(8AAA) of the Social Security Act 1991;

the amount or value of:

a scholarship known as a Commonwealth Education Costs Scholarship; or

a scholarship known as a Commonwealth Accommodation Scholarship;

provided for under the Commonwealth Scholarships Guidelines made for the purposes of Higher Education Support Act 2003;Part 2-4 of the

an amount covered by subsection (8A) (about reductions of amounts payable for enrolment or tuition in certain courses);

a payment covered by subsection (8B) (about payments that are made to an educational institution or the Commonwealth to reduce a person’s liability to the educational institution or Commonwealth and that are made by someone other than the person);

(he) a payment of a scholarship, to the extent that the payment is not income for the purposes of the Social Security Act 1991 because of paragraph 8(8)(zjd) of that Act;

any return on a person’s investment in:

a superannuation fund; or

an approved deposit fund; or

an ATO small superannuation account;

until the person:

reaches pension age; or

commences to receive a pension or annuity out of the fund;

Note 1: For pension age see subsection (9) and sections 5QA and 5QB.

Note 2: For superannuation fund, approved deposit fund and ATO small superannuation account see subsection 5J(1).

the value of emergency relief or like assistance;

(m) a payment under Disability Services Act 1986 or the value of any rehabilitation program (including any follow-up program) provided under that Part;Part III of the former

(maa) the value of supports or services that are specified in an instrument under subsection 8(8AAAB) of the Social Security Act and are provided under an arrangement or grant under the Disability Services and Inclusion Act 2023;

(ma) a payment under the Business Services Wage Assessment Tool Payment Scheme Act 2015;

(mb) a payment under the National Redress Scheme for Institutional Child Sexual Abuse Act 2018;

a payment under the scheme known as the Territories Stolen Generations Redress Scheme;

(n) a payment of domiciliary nursing care benefit under National Health Act 1953 as in force immediately before 1 July 1999;Part VB of the

(na) a payment of subsidy made to a registered provider under Aged Care Act 2024 in respect of care delivered to the person;Division 4 of Part 2 of Chapter 4 of the

(nb) an accommodation bond balance (within the meaning of the Aged Care Act 2024) refunded to the person under that Act;

(nba) a payment under Aged Care Act 2024;section 186 of the

while a person is accruing a liability to pay an accommodation charge—any rent from the person’s principal home that the person, or the person’s partner, earns, derives or receives from another person;

Note 1: Accommodation charge has the same meaning as in the Aged Care Act 2024: see subsection 5L(1).

Note 2: For rent, see subsection 5N(2).

Note 3: Under subsections 5LA(8) and (9), the principal home of a person in a care situation may be a place other than the place where the person receives care.

Note 4: The operation of this paragraph is limited by subsection (11A).

while a person is liable to pay all or some of an accommodation bond by periodic payments—any rent from the person’s principal home that the person, or the person’s partner, earns, derives or receives from another person;

Note 1: For rent, see subsection 5N(2).

Note 2: Under subsections 5LA(8) and (9), the principal home of a person in a care situation may be a place other than the place where the person receives care.

Note 3: The operation of this paragraph is limited by subsection (11A).

(ne) a refundable deposit balance refunded to the person under the Aged Care Act 2024;

while a person is liable to pay a daily accommodation payment or a daily accommodation contribution—any rent from the person’s principal home that the person, or the person’s partner, earns, derives or receives from another person;

Note 1: For rent, see subsection 5N(2).

Note 2: Under subsections 5LA(8) and (9), the principal home of a person in a care situation may be a place other than the place where the person receives care.

Note 3: The operation of this paragraph is limited by subsection (11A).

a payment under a Commonwealth law, one of whose objects is that of assisting people to purchase or build their own homes;

a payment by a State or Territory for the purpose of assisting people to purchase or build their own homes;

a payment made to the person for or in respect of a child of the person;

a payment of family assistance, or of one-off payment to families, economic security strategy payment to families, back to school bonus, single income family bonus, clean energy advance, ETR payment, first 2020 economic support payment, second 2020 economic support payment, additional economic support payment 2020 or additional economic support payment 2021, under the Family Assistance Act;

(pab) a payment under the scheme determined under Schedule 3 to the Family Assistance Legislation Amendment (More Help for Families—One-off Payments) Act 2004;

an NDIS amount;

any return on a person’s NDIS amounts;

a payment of a bursary under the program established by the Commonwealth and known as the Young Carer Bursary Programme;

disability expenses maintenance;

if:

the person owes money under a mortgage or other arrangement; and

the person has insurance which requires the insurer to make payments to the creditor when the person is unemployed or ill or in other specified circumstances; and

payments are made to the creditor under the insurance;

a payment so made;

insurance or compensation payments made because of the loss of, or damage to, buildings, plant or personal effects;

Note: These payments are to be disregarded in calculating the value of a person’s assets (see paragraph 52(1)(o)).

money from an investment that is:

an investment of payments of the kind referred to in paragraph (q); and

an investment for:

(A) a period of not more than 12 months after the person receives the payments; or

(B) if the Commission thinks it appropriate—of 12 months or more after the person receives those payments;

an amount paid, under a law of, or applying in, a country or part of a country, by way of compensation for a victim of National Socialist persecution;

if the person pays, or is liable to pay, rent—a payment by way of rent subsidy made by the Commonwealth, by a State or Territory or by an authority of the Commonwealth or of a State or Territory to or on behalf of the person who pays or who is liable to pay rent;

a payment received by a trainee in full-time training under a program included in the programs known as Labour Market Programs, to the extent that the payment includes one or more of the following amounts:

an amount calculated by reference to a rate of jobseeker payment or youth allowance under the Social Security Act;

an amount known as the training component;

an amount by way of a living away from home allowance;

in the case of a person who:

is receiving a service pension, income support supplement, a veteran payment, a social security pension or a social security benefit; and

is in part-time training, or engaged in part-time work experience, under a program included in the programs known as Labour Market Programs;

a payment received by the person under that program in respect of the person’s expenses associated with his or her participation in the training or work experience;

a payment received by the person under a self-employment program;

a payment made by the Commonwealth known as the Apprenticeship Wage Top-Up to the person;

a payment to the person made by the Commonwealth under the program known as Skills for Sustainability for Australian Apprentices;

a payment to the person made by the Commonwealth under the program known as Tools for Your Trade (within the program known as the Australian Apprenticeships Incentives Program);

a payment made by the Commonwealth, under the program established by the Commonwealth and known as “Youth Jobs PaTH”, to an individual placed in an internship under that program;

a payment made by the Mark Fitzpatrick Trust or the New South Wales Medically-Acquired HIV Trust to a person by way of assistance with expenses incurred in relation to a person who has medically acquired HIV infection;

a payment by the Thalidomide Australia Fixed Trust:

made to, or applied for the benefit of, a beneficiary of the Trust; or

made to a person in respect of a beneficiary of the Trust;

a payment under the program established by the Commonwealth and known as the Support for Australia’s Thalidomide Survivors program;

a benefit under a law of the Commonwealth that relates to the provision of:

pharmaceutical, sickness or hospital benefits; or

medical or dental services;

a payment towards the cost of personal care support services for the person that is made under a scheme approved under section 35A of the Social Security Act;

a payment that:

is made by an organisation that is registered under a law referred to in paragraph (y); and

is made in respect of expenses incurred by a person for:

(A) hospital treatment; or

(B) medical treatment; or

(C) dental treatment;

in the case of a member of:

the Naval Reserve; or

the Army Reserve; or

the Air Force Reserve;

the pay and allowances paid to the person as such a member (other than pay and allowances in respect of continuous full-time service);

a payment that is a bereavement payment under section 98A;

a periodical payment by way of gift or allowance, or a periodical benefit by way of gift or allowance, from a parent, child, brother or sister of the person;

the value of board or lodging received by the person;

an amount received under the scheme known as the Western Australian Cost of Living Rebate Scheme;

the value of a benefit obtained by using a card known as the Western Australian Country Age Pension Fuel Card;

a payment, known as the Cost of Living Concession, made by the Government of South Australia;

a domestic payment;

a payment received by the person for serving, or being summoned to serve, on a jury;

a payment received by the person for expenses incurred by the person as a witness, other than an expert witness, before a court, tribunal or commission;

a return on an exempt funeral investment;

Note: For exempt funeral investment see section 5PC.

an amount paid by a buyer under a sale leaseback agreement;

if a person is a member of an approved exchange trading system—an amount credited to the person’s account for the purposes of the scheme in respect of any goods or services provided by the person to another member;

Note: For approved exchange trading system see subsections (10) and (11).

an advance payment of pension under Part IVA;

an amount worked out under section 115G;

a payment under section 47, 56, 81, 205, 214, 217, 226, 239 or 266 of the MRCA to reimburse costs incurred in respect of the provision of goods or services (other than a payment to the person who provided the goods or service);

a payment (either as a weekly amount or a lump sum) under section 68, 71, 75 or 80 of the MRCA (permanent impairment);

a payment of a Special Rate Disability Pension under Part 6 of Chapter 4 of the MRCA;

if subsection 204(5) of the MRCA applies to a person—an amount per fortnight, worked out under section 5I of this Act, that would, apart from this paragraph, be income of the person;

Note: Subsection 204(5) of the MRCA reduces a Special Rate Disability Pension by reference to amounts of Commonwealth superannuation that the person has received or is receiving.

a payment under the Motor Vehicle Compensation Scheme under section 212 of the MRCA;

a payment of MRCA supplement under section 221, 245 or 300 of the MRCA;

a payment of a lump sum mentioned in paragraph 234(1)(a) or subsection 236(5) of the MRCA or of the weekly amount mentioned in paragraph 234(1)(b) of the MRCA (including a reduced weekly amount because of a choice under section 236 of the MRCA) (wholly dependent partner payment);

a payment under section 242 or 255 of the MRCA (continuing permanent impairment and incapacity etc. payments);

a payment under section 251 or 253 of the MRCA (eligible young person payment);

a payment under the scheme set up under section 258 of the MRCA (education scheme for eligible young persons);

a payment under section 262 of the MRCA (compensation for other dependants);

a payment under Division 1A, 2 or 3 of Part 4 of Chapter 6, or subsection 328(4), of the MRCA (compensation for treatment etc.);

a payment under section 424 of the MRCA (special assistance);

a clean energy payment under the MRCA;

a clean energy payment under Part IIIE;

a one-off energy assistance payment under Part IIIF;

a one-off energy assistance payment under Part IIIG;

a first 2020 economic support payment under Division 1 of Part IIIH;

a second 2020 economic support payment under Division 2 of Part IIIH;

an additional economic support payment 2020 under Division 1 of Part IIIJ;

an additional economic support payment 2021 under Division 2 of Part IIIJ;

a 2022 cost of living payment under Division 1 of Part IIIK;

the value of the benefit provided under the initiative known as the Tools for Your Trade initiative;

(zzc) a cash flow boost (within the meaning of the Boosting Cash Flow for Employers (Coronavirus Economic Response Package) Act 2020);

a payment:

(i) paid in accordance with rules made under the Coronavirus Economic Response Package (Payments and Benefits) Act 2020; and

stated, in those rules, not to be income in relation to the person for the purposes of this Act;

a payment under an instrument made under any of the following:

section 115S of this Act;

section 268B of the MRCA;

(ii) Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988;section 41B of the

a payment made by the Commonwealth to an individual under a program that is established by the Commonwealth and is determined in an instrument under subsection 8(8AC) of the Social Security Act to be an employment program;

a payment made by a State or Territory to an individual under a program that is established by the State or Territory and is determined in an instrument under subsection 8(8AC) of the Social Security Act to be an employment program.

Note: However, some of the amounts referred to in paragraphs (zp), (zq), (zr) and (zu) are counted for the purposes of the hardship rules (see subsection 52Z(3A)).

(8AA) Paragraph (8)(h) does not apply to a payment under an arrangement or grant referred to in section 1062A of the Social Security Act. This subsection does not prevent another paragraph of subsection (8) from applying to such a payment.

This subsection covers the amount of a reduction (by discount, remission or waiver) of an amount that would otherwise be payable by a person:

to an educational institution for enrolment or tuition of the person by the institution in a course that:

(i) is determined, under Student Assistance Act 1973, to be a secondary course or a tertiary course for the purposes of that Act; orsection 5D of the

is a Masters or Doctoral degree course accredited as a higher education course by the authority responsible for accrediting higher education courses in the State or Territory in which the course is conducted or by the institution, if it is permitted by a law of the Commonwealth, a State or a Territory to accredit higher education courses that it conducts; or

is a course of vocational training; or

to the Commonwealth as a result of the person’s enrolment in, or undertaking of, such a course at an educational institution.

This subsection covers a payment:

that is made to discharge, or to prevent from arising, to any extent:

a person’s actual or anticipated liability to an educational institution for enrolment or tuition of the person by the institution in a course described in paragraph (8A)(a); or

a person’s actual or anticipated liability to the Commonwealth resulting from the person’s enrolment in, or undertaking of, such a course at an educational institution; and

that is made by someone other than the person; and

that is made to the institution or the Commonwealth; and

that is not made at the direction of the person.

(9) For the purposes of the application of subsection (8) in relation to income support supplement, the reference in subparagraph (8)(i)(iv) to pension age is taken to be a reference to the qualifying age.

Note: For qualifying age see section 5Q.

(10) An exchange trading system is an arrangement between a number of people (members) under which each member may obtain goods or services from another member that is wholly or partly in kind rather than in cash. Each member has, for the purposes of the arrangement, an account:

to which is credited:

the amount representing the value of any goods or services provided by the member to another member; or

if the goods or services were partly paid for in cash—the amount referred to in subparagraph (i) less the amount so paid in cash; and

to which is debited:

the amount representing the value of any goods or services supplied to the member by another member; or

if the goods or services were partly paid for in cash—the amount referred to in subparagraph (i) less the amount so paid in cash.

(11) An exchange trading system is an approved exchange trading system if the Commission is satisfied that:

it is a local community-based system; and

its primary purpose is to help people maintain their labour skills and keep them in touch with the labour market; and

it is not a system run by a person or organisation for profit.

Paragraphs (8)(nc), (nd) and (nf) do not apply in relation to a person if:

(a) those paragraphs did not apply in relation to the person immediately before the commencement of the Aged Care Act 2024; or

a period of 28 consecutive days ends after that commencement in which the person:

was not provided with residential care or flexible care through a residential care service or a flexible care service; and

did not access ongoing funded aged care services in an approved residential care home;

other than because the person was on leave.

(11C) An expression used in subsection (11A) and in the Aged Care Act 2024 or the Aged Care Act 1997 (as in force immediately before the commencement of the Aged Care Act 2024) has the same meaning in that subsection as in those Acts.

(12) An amount received by a person is an exempt lump sum if:

it is not a periodic amount (within the meaning of subsection (13)); and

it is not income from remunerative work undertaken by the person; and

(c) it is an amount, or one of a class of amounts, that the Commission determines to be an exempt lump sum.

(12A) An amount received by a person is also an exempt lump sum if the amount is an exempt lump sum within the meaning of subsection 8(11) of the Social Security Act 1991.

(13) An amount is a periodic amount if it is:

the amount of one payment in a series of related payments, even if the payments are irregular in time and amount; or

the amount of a payment making up for arrears in such a series.

For the purposes of paragraphs 5H(8)(zr) and 52Z(3A)(i), the amount per fortnight is:

where:

Special Rate Disability Pension reduction amount means the amount by which the Special Rate Disability Pension (as reduced under subsection 204(3)) is reduced under subsection 204(6) of the MRCA (but not below zero).

In this Act, unless the contrary intention appears:

approved deposit fund has the same meaning as in the Income Tax Assessment Act 1997.

asset-tested income stream (lifetime) has the meaning given by section 5JE.

asset-tested income stream (long term) means an income stream that is an asset-tested income stream (long term) under section 5JD or an income stream that: is not an asset-test exempt income stream; and has, on its commencement day: a specified term of more than 5 years; or if the person who has acquired the income stream has a life expectancy of 5 years or less—a specified term equal to or greater than the person’s life expectancy.

is not an asset-test exempt income stream; and

has, on its commencement day:

a specified term of more than 5 years; or

if the person who has acquired the income stream has a life expectancy of 5 years or less—a specified term equal to or greater than the person’s life expectancy.

Note: Since the income stream must be for a specified term, an asset-tested income stream (long term) cannot be an asset-tested income stream (lifetime).

asset-tested income stream (short term) means an income stream that is an asset-tested income stream (short term) under section 5JD or an income stream that is none of the following: an asset-test exempt income stream; an asset-tested income stream (long term); an asset-tested income stream (lifetime). asset-test exempt income stream has the meanings given by sections 5JA, 5JB, 5JBA and 5JBB.

an asset-test exempt income stream;

an asset-tested income stream (long term);

an asset-tested income stream (lifetime).

asset-test exempt income stream has the meanings given by sections 5JA, 5JB, 5JBA and 5JBB.

ATO small superannuation account means an account kept in the name of an individual under the Small Superannuation Accounts Act 1995.

commencement day means the first day of the period to which the first payment under the income stream relates.

deductible amount means the sum of the amounts that are the tax free components (worked out under Subdivision 307-C of the Income Tax Assessment Act 1997 or, if applicable, section 307-125 of the Income Tax (Transitional Provisions) Act 1997) of the payments received from the defined benefit income stream during the year.

defined benefit income stream has the meaning given by subsection (1E).

deprived asset has the meaning given by subsection (2B).

designated NDIS amount means:

an NDIS amount that is deposited in an account with a financial institution; and

any return on the NDIS amount that a person earns, derives or receives.

family law affected income stream has the meaning given by section 5JC.

financial asset means:

a financial investment; or

a deprived asset.

Note: For deprived asset see subsection (2B).

financial investment means:

available money; or

deposit money; or

a managed investment; or

a listed security; or

a loan that has not been repaid in full; or

an unlisted public security; or

gold, silver or platinum bullion; or

an asset-tested income stream (short term); or

(i) an asset-tested income stream (long term) that is an account-based pension within the meaning of the Superannuation Industry (Supervision) Regulations 1994; or

(j) an asset-tested income stream (long term) that is an annuity (within the meaning of the Superannuation Industry (Supervision) Act 1993) provided under a contract that meets the requirements determined in an instrument under subsection (1G);

but does not include a designated NDIS amount.

friendly society means:

Note: For loan see subsections (2) and (2A).

(a) a body that is a friendly society for the purposes of the Life Insurance Act 1995; or

a body that is registered or incorporated as a friendly society under a law of a State or Territory; or

(c) a body that is permitted, by a law of a State or Territory, to assume or use the expression friendly society; or

(d) a body that, immediately before the date that is the transfer date for the purposes of the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999, was registered or incorporated as a friendly society under a law of a State or Territory; or

(e) a body that had, before 13 December 1987, been approved for the purpose of the definition of friendly society in subsection 115(1) of the Social Security Act 1947.

governing rules means any trust instrument, other document or legislation, or combination of them, governing the establishment and operation of the income stream.

income stream means:

(a) an income stream arising under arrangements that are regulated by the Superannuation Industry (Supervision) Act 1993; or

an income stream arising under a public sector superannuation scheme (within the meaning of that Act); or

an income stream arising under a retirement savings account; or

(d) an income stream provided as life insurance business by a life company registered under Life Insurance Act 1995; orsection 21 of the

an income stream designated in writing by the Commission for the purposes of this definition, having regard to the guidelines determined under subsection (1F); or

a family law affected income stream;

but does not include any of the following:

available money;

deposit money;

a managed investment;

a listed security;

a loan that has not been repaid in full;

an unlisted public security;

gold, silver or platinum bullion;

a payment of compensation to a person, or a payment to a person under an insurance scheme, in relation to:

the person’s inability to earn, derive or receive income from remunerative work; or

the person’s total and permanent disability or incapacity.

investment:

in relation to a superannuation fund or approved deposit fund—has the meaning given by subsection (6); or

in relation to an ATO small superannuation account—has the meaning given by subsection (6A).

investor means the person in whose name the account is kept.

life expectancy has the same meaning as life expectation factor has in section 27H of the Income Tax Assessment Act.

listed security means:

a share in a company; or

another security;

listed on a stock exchange.

loan has a meaning affected by subsections (2) and (2A).

managed investment has the meaning given by subsections (1A), (1B) and (1C).

military invalidity pension income stream has the meaning given by subsection (1EA).

original family law affected income stream has the meaning given by section 5JC.

primary FLA income stream has the meaning given by section 5JC.

public unit trust means a unit trust that: except where paragraph (b) applies—was, in relation to the unit trust’s last year of income, a public unit trust for the purposes of Division 6B of Part III of the Income Tax Assessment Act; or where the first year of income of the unit trust has not yet finished—has, at some time since the trust was established, satisfied at least one of the paragraphs of subsection 102G(1) of the Income Tax Assessment Act.

except where paragraph (b) applies—was, in relation to the unit trust’s last year of income, a public unit trust for the purposes of Division 6B of Part III of the Income Tax Assessment Act; or

where the first year of income of the unit trust has not yet finished—has, at some time since the trust was established, satisfied at least one of the paragraphs of subsection 102G(1) of the Income Tax Assessment Act.

purchase price means the sum of the payments made to purchase the income stream (including amounts paid by way of employer and employee contributions) less any commuted amounts.

relevant number, in relation to an income stream, means:

if the income stream is payable for a fixed number of years—that number; or

if the income stream is payable during the lifetime of a person and no longer—the number of years of the person’s life expectancy; or

if the income stream:

is jointly owned by a person and his or her partner and is payable for the lifetime of the person or the partner; or

is payable during the lifetime of a person and then for the lifetime of a reversionary beneficiary;

the number of years in the longer of the relevant life expectancies; or

in any other case—the number that the Commission considers appropriate having regard to the number of years in the total period during which the income stream will be, or may reasonably be expected to be, payable.

residual capital value means the capital amount payable on the termination of the income stream.

retirement savings account has the meaning that it has in the Retirement Savings Accounts Act 1997.

return:

Note: An account-based income stream does not have a residual capital value (see subsection (9) of this section).

in relation to an ATO small superannuation account—means so much of the balance of the account as is attributable to interest; or

in relation to any other investment (including an investment in the nature of superannuation)—means any increase, whether of a capital or income nature and whether or not distributed, in the value or amount of the investment.

secondary FLA income stream has the meaning given by section 5JC.

superannuation benefit, in relation to a person, means:

a benefit arising directly or indirectly from amounts contributed (whether by the person or by any other person) to a superannuation fund in respect of the person; or

(b) a payment under Part 7 of the Small Superannuation Accounts Act 1995, where the payment is in respect of an ATO small superannuation account kept in the name of the person.

superannuation contributions surcharge has the meaning that it has in the Superannuation Contributions Tax (Assessment and Collection) Act 1997.

superannuation fund means:

(a) a fund that is or has been a complying superannuation fund Superannuation Industry (Supervision) Act 1993 in relation to any tax year; orwithin the meaning of section 45 of the

(b) an Australian superannuation fund (within the meaning of the Income Tax Assessment Act 1997) that is not a complying superannuation fund mentioned in paragraph (a) in relation to any tax year; or

a scheme for the payment of benefits upon retirement or death that is constituted by or under a law of the Commonwealth or of a State or Territory; or

(d) an RSA within the meaning of the Retirement Savings Accounts Act 1997; or

any of the following funds (unless the fund is a foreign superannuation fund):

(i) a fund to which paragraph 23(jaa), or Income Tax Assessment Act 1936 (as in force at any time before the commencement of section 1 of the Taxation Laws Amendment Act (No. 2) 1989) has applied in relation to any tax year;section 23FC, 121CC or 121DAB, of the

(ii) a fund to which paragraph 23(ja), or Income Tax Assessment Act 1936 (as in force at any time before the commencement of paragraph (a) of the definition of superannuation fund in former subsection 27A(1) of the Income Tax Assessment Act 1936) has applied in relation to the tax year that started on 1 July 1985 or an earlier tax year;section 23F or 23FB, of the

(iii) a fund to which Income Tax Assessment Act 1936 (as in force at any time before 25 June 1984) has applied in relation to the tax year that started on 1 July 1983 or an earlier tax year.section 79 of the

Note: For foreign superannuation fund see subsection 5L(1).

unlisted public security means:

a share in a public company; or

another security;

that is not listed on a stock exchange.

(1A) Subject to subsections (1B) and (1C), an investment is a managed investment for the purposes of this Act if:

the money or property invested is paid by the investor directly or indirectly to a body corporate or into a trust fund; and

(b) the assets that represent the money or property invested (the invested assets) are not held in the names of investors; and

the investor does not have effective control over the management of the invested assets; and

the investor has a legally enforceable right to share in any distribution of income or profits derived from the invested assets.

(1B) Without limiting the generality of subsection (1A) but subject to subsection (1C), the following are managed investments for the purposes of this Act:

an investment in a public unit trust;

an investment in an insurance bond;

an investment with a friendly society;

an investment in a superannuation fund;

an investment in an approved deposit fund;

an investment in an ATO small superannuation account;

(h) an asset-tested income stream (lifetime) that does not arise under arrangements that are regulated by the Superannuation Industry (Supervision) Act 1993.

Note 1: For paragraph (d), see paragraph (1C)(a) for superannuation investments held before pension age is reached.

Note 2: For paragraph (e), see paragraph (1C)(b) for investments in approved deposit funds held before pension age is reached.

Note 4: For paragraph (g), see paragraph (1C)(ca) for investments in ATO small superannuation accounts held before pension age is reached.

Note 5: For paragraph (h), see paragraph (1C)(j) for a person’s asset-tested income stream (lifetime) that does not arise under arrangements that are regulated by the Superannuation Industry (Supervision) Act 1993 if the person’s assessment day (within the meaning of section 52BAB) for the income stream has occurred.

(1C) The following are not managed investments for the purposes of this Act:

an investment in a superannuation fund if the investor has not yet turned pension age;

an investment in an approved deposit fund if the investor has not yet turned pension age;

an investment in an ATO small superannuation account if the investor has not yet turned pension age;

deposit money;

a loan;

an asset-test exempt income stream;

an asset-tested income stream (long term);

an asset-tested income stream (short term);

(i) a person’s asset-tested income stream (lifetime) that arises under arrangements that are regulated by the Superannuation Industry (Supervision) Act 1993;

(j) a person’s asset-tested income stream (lifetime) that does not arise under arrangements that are regulated by the Superannuation Industry (Supervision) Act 1993 if the person’s assessment day (within the meaning of section 52BAB) for the income stream has occurred.

Note 1: For pension age see subsection (1D) and sections 5QA and 5QB.

Note 2: For deposit money see subsection 5H(1).

Note 3: For provisions relating to when a loan is taken to be made see subsection (2).

(1D) For the purposes of the application of subsection (1C) in relation to income support supplement, the references in paragraphs (1C)(a), (b) and (c) to pension age are taken to be references to the qualifying age.

Note: For qualifying age see section 5Q.

(1E) An income stream is a defined benefit income stream if:

(a) under the Superannuation Industry (Supervision) Regulations 1994, the income stream is taken to be a pension for the purposes of the Superannuation Industry (Supervision) Act 1993; and

(b) except in the case of an income stream arising under a superannuation fund established before 20 September 1998—the income stream is provided under rules that meet the standards of subregulation 1.06(2) of the Superannuation Industry (Supervision) Regulations 1994; and

in the case of an income stream arising under a superannuation fund established before 20 September 1998—the income stream is provided under rules that meet the standards determined, by legislative instrument, by the Minister; and

(c) in any case—the income stream is attributable to a defined benefit interest within the meaning of the Superannuation Industry (Supervision) Regulations 1994 (for this purpose, disregard subparagraph 1.03AA(1)(b)(ii) of those regulations).

(1EA) An income stream is a military invalidity pension income stream if:

the income stream is:

(i) invalidity pay within the meaning of the Defence Force Retirement and Death Benefits Act 1973; or

(ii) an invalidity pension under the superannuation scheme established under the Military Superannuation and Benefits Act 1991; or

an income stream provided under a superannuation scheme and that is covered by an instrument under subsection (1FA); and

the income stream is not a defined benefit income stream.

(1F) The Commission may determine, by legislative instrument, guidelines to be complied with when designating an income stream for the purposes of the definition of income stream in subsection (1).

(1FA) For the purposes of subparagraph (1EA)(a)(iii), the Commission may, by legislative instrument, do any one or more of the following:

specify an income stream;

describe an income stream;

determine requirements relating to an income stream;

regardless of whether the income stream relates to military service or invalidity.

(1FB) Without limiting subsection 33(3A) of the Acts Interpretation Act 1901, an instrument under subsection (1FA) may make different provision in relation to:

different kinds of income streams; and

different kinds of circumstances.

Note: For specification by class, see subsection 13(3) of the Legislation Act 2003.

(1G) The Minister may, by legislative instrument, determine requirements for the purposes of paragraph (j) of the definition of financial investment in subsection (1).

The following rules apply for the purposes of this Act:

(a) the acquisition by a person of debentures, bonds or other securities is treated as the making of a loan by the person;

(b) a person is not treated as having made a loan merely because:

the person has an account with a financial institution; or

the person has paid an entry contribution.

Note: For entry contribution see section 52M.

(2A) Subsection (2) does not limit the meaning of the word loan in this Act.

(2B) For the purposes of this Act, an asset is a deprived asset if:

a person has disposed of the asset; and

the value of the asset is included in the value of the person’s assets by Subdivision BA or BB of Division 11 of Part IIIB.

Note: For circumstances in which a person is taken to dispose of assets see section 52E.

To avoid doubt, none of the following is a financial investment for the purposes of this Act:

an accommodation bond;

an accommodation bond balance;

a refundable deposit;

a refundable deposit balance.

Note: These expressions are defined in section 5L.

(6) For the purposes of this Act, a person has an investment in a superannuation fund or approved deposit fund if the person has benefits in the fund (whether the benefits are attributable to amounts paid by the person or someone else).

For the purposes of this Act:

(a) a person has an investment in an ATO small superannuation account if:

the account is kept in the name of the person; and

the balance of the account exceeds nil; and

the amount or value of that investment equals the balance of the account.

(9) To avoid doubt, for the purposes of this Act, an account-based income stream does not have a residual capital value.

General requirements

(1) An income stream provided to a person is an asset-test exempt income stream for the purposes of this Act if:

subject to subsection (1AA), the income stream’s commencement day happens before 20 September 2007; and

it is an income stream arising under a contract, or governing rules, that meet the requirements of subsection (2) and the Commission has not made a determination under subsection (4) in respect of the income stream; and

subject to subsections (1B), (1C) and (1D), the Commission is satisfied that in relation to an income stream, provided by a class of provider specified by the Commission for the purposes of this paragraph, there is in force a current actuarial certificate that states that the actuary is of the opinion that, for the financial year in which the certificate is given, there is a high probability that the provider of the income stream will be able to pay the income stream as required under the contract or governing rules; and

the Commission is satisfied that the requirements of subsection (2) are being given effect to from the commencement day of the income stream.

Note: For paragraph (b), financial year means a period of 12 months commencing on 1 July: see the Acts Interpretation Act 1901.

Determination under subsection (5)

(1A) An income stream provided to a person is an asset-test exempt income stream for the purposes of this Act if the Commission has made a determination under subsection (5) in respect of the income stream.

Defined benefit income streams

(1AA) Paragraph (1)(aa) does not apply if the income stream is a defined benefit income stream.

Guidelines relating to actuarial certificates

The Commission may determine, by legislative instrument, guidelines to be complied with when determining whether an actuarial certificate is in force.

Exception to paragraph (1)(b)

(1C) If, on 30 June in a financial year, an actuarial certificate referred to in paragraph (1)(b) is in force in relation to an income stream, then paragraph (1)(b) does not apply in relation to the next financial year (the later year) for the period:

beginning on 1 July of the later year; and

ending at the earlier of the following:

the start of the first day in the later year on which any actuarial certificate is given to the Commission in relation to that income stream;

the end of the period of 26 weeks beginning on 1 July of the later year.

One certificate a financial year

For the purposes of paragraph (1)(b), if an actuarial certificate is given to the Commission in a financial year in relation to an income stream, then any actuarial certificate given to the Commission later in that financial year in relation to that income stream has no effect.

Requirements of contract/governing rules for provision of income stream

A contract, or the governing rules, for the provision of an income stream to a person meet the requirements of this subsection if the contract or governing rules specify:

that payments under the income stream are to be made at least annually throughout the life of the person and, if there is a reversionary beneficiary:

throughout the reversionary beneficiary’s life; or

if the reversionary beneficiary is a child of the person or of a former reversionary beneficiary under the income stream—at least until he or she turns 16; or

if the child referred to in subparagraph (ii) is a full-time student who has turned 16—at least until the end of his or her full-time studies or until he or she turns 25, whichever occurs sooner; and

the total amount of the payments that may be made under the income stream in the first year after the commencement day of the income stream (not taking commuted amounts into account); and

(c) that the total amount of the payments that may be made under the income stream in any other year (not taking commuted amounts into account) may not fall below the total amount of the payments made under the income stream in the immediately preceding year (the previous total), and may not exceed the previous total:

if subparagraph (ii) does not apply—by more than 5% of the previous total; or

(ii) if the index number for the second last quarter before the day on which the first of those payments is to be made (recent index number) exceeds the index number for the same quarter in the immediately preceding year (base index number) by more than 4% of the base index number—by more than such percentage of the previous total as is worked out under the formula:

if the income stream is purchased by or for the primary beneficiary—that the first payment under the income stream relates to the period commencing on the day of that purchase; and

if the income stream is not purchased, but acquired, by or for the primary beneficiary—that the first payment under the income stream relates to the period commencing on the day of that acquisition; and

if the income stream is not a defined benefit income stream—that the amount paid as the purchase price for the income stream is wholly converted into income; and

that the income stream has no residual capital value; and

that the income stream cannot be commuted except:

if the income stream is a non-commutation funded income stream and the commutation is made within 6 months after the commencement day of the income stream; or

if the commutation is made to the benefit of a reversionary beneficiary or of the person’s estate, on the death of the person within the life expectancy period for the income stream; or

if the payment resulting from the commutation is transferred directly to the purchase of another income stream that is an asset-test exempt income stream; or

to the extent necessary to cover any superannuation contributions surcharge relating to the income stream; or

(iva) to the extent necessary to give effect to an entitlement of the person’s partner or former partner under a payment split under Family Law Act 1975; orPart VIIIB or VIIIC of the

(ivb) to the extent necessary to give effect to an order under Family Law Act 1975; orPart VIIIAA of the

to the extent necessary to pay a hardship amount; and

that the income stream cannot be transferred to a person except:

on the death of the primary beneficiary, to a reversionary beneficiary; or

on the death of a reversionary beneficiary, to another reversionary beneficiary; and

that neither the capital value of the income stream, nor the income from it, can be used as security for a borrowing; and

that, if the income stream reverts, it must not have a reversionary component greater than the benefit that was payable immediately before the reversion; and

that, if the income stream is commuted, the commuted amount must not be greater than the benefit that was payable immediately before the commutation.

Note: For paragraph (h), hardship amount, life expectancy period and non-commutation funded income stream are defined in subsection (7) and asset-test exempt income stream is defined in section 5J.

A contract, or the governing rules, for the provision to a person of an income stream that meets all of the requirements of subsection (2), except the requirement of paragraph (2)(c), are taken to meet the requirements of subsection (2) if the contract or governing rules specify that any provision included in the contract or governing rules in accordance with paragraph (2)(c) does not apply in any year in which:

the person ceases to receive income under an income stream jointly and begins to receive income under a single income stream; and

the total amount received in the year under the single income stream is less than the total amount received by the person in the previous year but is not nil.

Matters not required of income stream

For the purpose of determining whether an income stream meets the requirements of subsection (2), it is immaterial that:

if the primary beneficiary dies within the life expectancy period for the income stream, a surviving reversionary beneficiary may be paid an amount equal to the total of the payments that the primary beneficiary would (if he or she had not died) have received from the day of the death until the end of that period; and

if:

the primary beneficiary dies within the life expectancy period for the income stream; and

there is no surviving reversionary beneficiary;

an amount, not exceeding the difference between:

the sum of the amounts that would have been so payable to the primary beneficiary in that period; and

the sum of the amounts paid to the primary beneficiary;

is payable to the primary beneficiary’s estate, and

if:

the primary beneficiary dies within the life expectancy period for the income stream; and

there is a surviving reversionary beneficiary who also dies within that period;

there is payable to the reversionary beneficiary’s estate an amount determined as described in paragraph (b) as if that paragraph applied to the reversionary beneficiary.

Determination that income stream not asset-test exempt

The Commission may determine that an income stream that meets the requirements of subsection (2) is not an asset-test exempt income stream if the Commission is satisfied that the person who has purchased the income stream has commuted an asset-test exempt income stream within 6 months after its commencement day on at least 3 occasions since the person first received a service pension, income support supplement, a veteran payment or a social security payment.

Determination that income stream is asset-test exempt

The Commission may determine, in writing, that an income stream is an asset-test exempt income stream for the purposes of this Act. In making the determination, the Commission is to have regard to the guidelines (if any) determined under subsection (6).

To avoid doubt, a determination under subsection (5) may be made in respect of an income stream regardless of the income stream’s commencement day.

A determination under subsection (5) is not a legislative instrument.

Guidelines to be complied with in making determination

The Commission may determine, by legislative instrument, guidelines to be complied with when making a determination under subsection (5).

Definitions

In this section:

hardship amount means an amount determined by the Commission for the purposes of this definition if: the person applies in writing to the Commission to be allowed to commute the whole or part of an income stream because of extreme financial hardship; and the Commission is satisfied that: the person’s circumstances are exceptional and could not be reasonably foreseen at the time the person purchased the income stream; and the person has insufficient liquid assets or other assets (excluding the person’s principal home) that could be realised to avoid the extreme financial hardship; and that amount is required to meet unavoidable expenditure.

the person applies in writing to the Commission to be allowed to commute the whole or part of an income stream because of extreme financial hardship; and

the Commission is satisfied that:

the person’s circumstances are exceptional and could not be reasonably foreseen at the time the person purchased the income stream; and

the person has insufficient liquid assets or other assets (excluding the person’s principal home) that could be realised to avoid the extreme financial hardship; and

that amount is required to meet unavoidable expenditure.

life expectancy period, for an income stream, means:

in a case where:

there was only one primary beneficiary on the commencement day; and

the primary beneficiary has decided not to round up his or her life expectancy for the purposes of this definition;

the period starting on the income stream’s commencement day, and equal to the shorter of:

the primary beneficiary’s life expectancy on the commencement day; and

20 years; or

in a case where:

there was only one primary beneficiary on the commencement day; and

paragraph (a) does not apply;

the period starting on the income stream’s commencement day, and equal to the shorter of:

the primary beneficiary’s life expectancy (rounded up, if not consisting of a whole number of years, to the next whole number) on the commencement day; and

20 years; or

in a case where:

there were 2 primary beneficiaries on the commencement day; and

those primary beneficiaries have decided not to round up their life expectancies for the purposes of this definition;

the period starting on the income stream’s commencement day, and equal to the shorter of:

the greater of the life expectancies, on the commencement day, of the primary beneficiaries; and

20 years; or

in a case where:

there were 2 primary beneficiaries on the commencement day; and

paragraph (c) does not apply;

the period starting on the income stream’s commencement day, and equal to the shorter of:

the greater of the life expectancies (rounded up, if not consisting of a whole number of years, to the next whole number), on the commencement day, of the primary beneficiaries; and

20 years.

liquid assets means the person’s cash and readily realisable assets, and includes: (a) the person’s shares and debentures in a public company within the meaning of the Corporations Act 2001; and managed investments; and insurance policies that can be surrendered for money; and amounts deposited with, or lent to, a bank or other financial institution by the person (whether or not the amount can be withdrawn or repaid immediately); and amounts due, and able to be paid, to the person by, or on behalf of, a former employer of the person; but does not include the sum of NDIS amounts paid to the person and any return on those amounts that the person earns, derives or receives, less the sum of amounts spent by the person in accordance with an NDIS plan under which the amounts were paid.

(a) the person’s shares and debentures in a public company within the meaning of the Corporations Act 2001; and

managed investments; and

insurance policies that can be surrendered for money; and

amounts deposited with, or lent to, a bank or other financial institution by the person (whether or not the amount can be withdrawn or repaid immediately); and

amounts due, and able to be paid, to the person by, or on behalf of, a former employer of the person;

but does not include the sum of NDIS amounts paid to the person and any return on those amounts that the person earns, derives or receives, less the sum of amounts spent by the person in accordance with an NDIS plan under which the amounts were paid.

non-commutation funded income stream means an income stream that has not been purchased by transferring directly to the purchase of the income stream a payment resulting from the commutation of another asset-test exempt income stream.

unavoidable expenditure means one or more of the following: essential medical expenses of the person, or the person’s partner, to the extent that the expenses are not covered by health insurance or other contracts or arrangements; the cost of: replacing the person’s principal home; or essential repairs to the person’s principal home; to the extent that the cost of the replacement or repairs is not covered by an insurance policy; expenditure to buy replacement essential household goods because of the loss of those goods to the extent that the cost of replacement is not covered by an insurance policy.

essential medical expenses of the person, or the person’s partner, to the extent that the expenses are not covered by health insurance or other contracts or arrangements;

the cost of:

replacing the person’s principal home; or

essential repairs to the person’s principal home;

to the extent that the cost of the replacement or repairs is not covered by an insurance policy;

expenditure to buy replacement essential household goods because of the loss of those goods to the extent that the cost of replacement is not covered by an insurance policy.

(1) An income stream provided to a person is also an asset-test exempt income stream for the purposes of this Act if:

the following criteria are satisfied:

the income stream’s commencement day happens before 20 September 2007;

subsection (1A) applies; or

subsection (1B) applies.

No determination under subsection (3)

This subsection applies if:

the person to whom the income stream is being provided is:

the primary beneficiary; or

the primary beneficiary’s reversionary partner (if any) on the day of the primary beneficiary’s death; and

the income stream is an income stream arising under a contract, or governing rules, that meet the requirements of subsection (2) and the Commission has not made a determination under subsection (3) in respect of the income stream; and

subject to subsections (1C), (1D) and (1E), the Commission is satisfied that, in relation to an income stream provided by a class of provider specified by the Commission for the purposes of this paragraph, there is in force a current actuarial certificate that states that the actuary is of the opinion that, for the financial year in which the certificate is given, there is a high probability that the provider of the income stream will be able to pay the income stream as required under the contract or governing rules; and

the Commission is satisfied that the requirements of subsection (2) have been given effect to from the commencement day of the income stream; and

in the case of an income stream acquired before 20 September 2004 that is provided to a primary beneficiary’s reversionary beneficiary—the remaining term (in years) of the income stream is equal to the life expectancy (in years) of the primary beneficiary’s reversionary beneficiary.

Note 1: For paragraph (aa), reversionary partner is defined in subsection (7).

Note 2: For paragraph (b), financial year means a period of 12 months commencing on 1 July: see the Acts Interpretation Act 1901.

Determination under subsection (4)

This subsection applies if the Commission has made a determination under subsection (4) in respect of the income stream.

Guidelines relating to actuarial certificates

The Commission may determine, by legislative instrument, guidelines to be complied with when determining whether an actuarial certificate is in force.

Exception to paragraph (1A)(b)

(1D) If, on 30 June in a financial year, an actuarial certificate referred to in paragraph (1A)(b) is in force in relation to an income stream, then paragraph (1A)(b) does not apply in relation to the next financial year (the later year) for the period:

beginning on 1 July of the later year; and

ending at the earlier of the following:

the start of the first day in the later year on which any actuarial certificate is given to the Commission in relation to that income stream;

the end of the period of 26 weeks beginning on 1 July of the later year.

One certificate a financial year

For the purposes of paragraph (1A)(b), if an actuarial certificate is given to the Commission in a financial year in relation to an income stream, then any actuarial certificate given to the Commission later in that financial year in relation to that income stream has no effect.

Requirements of contract/governing rules for provision of income stream

A contract, or the governing rules, for the provision of an income stream to a person meets the requirements of this subsection if the contract or governing rules specify:

the income stream’s term, which must comply with subsection (2B), (2C) or (2E); and

that payments under the income stream are to be made at least annually during the income stream’s term; and

the total amount of the payments that may be made under the income stream in the first year after the commencement day of the income stream (not taking commuted amounts into account); and

(c) that the total amount of the payments that may be made under the income stream in any other year (not taking commuted amounts into account) may not fall below the total amount of the payments made under the income stream in the immediately preceding year (the previous total), and may not exceed the previous total:

if subparagraph (ii) does not apply—by more than 5% of the previous total; or

(ii) if the index number for the second last quarter before the day on which the first of those payments is to be made (recent index number) exceeds the index number for the same quarter in the immediately preceding year (base index number) by more than 4% of the base index number—by more than such percentage of the previous total as is worked out under the formula:

if the income stream is purchased by or for the primary beneficiary—that the first payment under the income stream relates to the period commencing on the day of that purchase; and

if the income stream is not purchased, but acquired, by or for the primary beneficiary—that the first payment under the income stream relates to the period commencing on the day of that acquisition; and

if the income stream is not a defined benefit income stream—that the amount paid as the purchase price for the income stream is wholly converted into income; and

that the income stream has no residual capital value; and

that the income stream cannot be commuted except:

if the income stream is a non-commutation funded income stream and the commutation is made within 6 months after the commencement day of the income stream; or

if the payment resulting from the commutation is transferred directly to the purchase of another income stream that is an asset-test exempt income stream; or

if the primary beneficiary’s reversionary partner (if any) on the day of the primary beneficiary’s death survives the primary beneficiary—on or after the partner’s death; or

if subparagraph (iii) does not apply—on or after the primary beneficiary’s death; or

to the extent necessary to cover any superannuation contributions surcharge relating to the income stream; or

(iva) to the extent necessary to give effect to an entitlement of the person’s partner or former partner under a payment split under Family Law Act 1975; orPart VIIIB of the

(ivb) to the extent necessary to give effect to an order under Family Law Act 1975; orPart VIIIAA of the

(ivc) to the extent necessary in order to comply with Taxation Administration Act 1953; orsection 136-80 in Schedule 1 to the

to the extent necessary to pay a hardship amount; and

that the income stream cannot be transferred except on death; and

that neither the capital value of the income stream, nor the income from it, can be used as security for a borrowing; and

that, if the income stream reverts, it must not have a reversionary component greater than the benefit that was payable immediately before the reversion; and

that, if the income stream is commuted, the commuted amount must not be greater than the benefit that was payable immediately before the commutation.

Note: For paragraph (h), hardship amount, non-commutation funded income stream and reversionary partner are defined in subsection (7) and asset-test exempt income stream is defined in section 5J.

Compliance with subsection (2) if certain conditions are met

A contract, or the governing rules, for the provision to a person of an income stream that meets all of the requirements of subsection (2), except the requirement of paragraph (2)(c), are taken to meet the requirements of subsection (2) if the contract or governing rules specify that any provision included in the contract or governing rules in accordance with paragraph (2)(c) does not apply in any year in which:

the person ceases to receive income under an income stream jointly and begins to receive income under a single income stream; and

the total amount received in the year under the single income stream is less than the total amount received by the person in the previous year but is not nil.

Term of the income stream

(2B) If, on an income stream’s commencement day, there is only one primary beneficiary, the income stream’s term complies with this subsection if it is a period of whole years that:

starts on the income stream’s commencement day; and

is at least as long as the primary beneficiary’s life expectancy (rounded up, if not consisting of a whole number of years, to the next whole number) on the commencement day; and

is at most as long as the greater of:

what would be the primary beneficiary’s life expectancy (rounded up, if not consisting of a whole number of years, to the next whole number) on the commencement day if the primary beneficiary were 5 years younger; and

the period (rounded up, if not consisting of a whole number of years, to the next whole number) starting on the commencement day and ending on the day on which the primary beneficiary reaches age 100 (assuming that the primary beneficiary lives until then).

(2C) If, on an income stream’s commencement day, there is only one primary beneficiary, the income stream’s term complies with this subsection if it is a period of whole years that:

starts on the income stream’s commencement day; and

is at least as long as the greater of the life expectancies (rounded up, if not consisting of a whole number of years, to the next whole number), on the commencement day, of:

the primary beneficiary; and

the primary beneficiary’s reversionary partner on that day; and

is at most as long as the period worked out under subsection (2D).

For the purposes of paragraph (2C)(c), the period is the greater of:

the greater of what would be the life expectancies (rounded up, if not consisting of a whole number of years, to the next whole number), on the commencement day, of:

the primary beneficiary, if the primary beneficiary were 5 years younger; and

the primary beneficiary’s reversionary partner on that day, if the partner were 5 years younger; and

the greater of:

the period (rounded up, if not consisting of a whole number of years, to the next whole number) starting on the commencement day and ending on the day on which the primary beneficiary reaches age 100 (assuming that the primary beneficiary lives until then); and

the period (rounded up, if not consisting of a whole number of years, to the next whole number) starting on the commencement day and ending on the day on which the primary beneficiary’s reversionary partner on the commencement day reaches age 100 (assuming that the partner lives until then).

(2E) If, on an income stream’s commencement day, there are 2 primary beneficiaries (the first primary beneficiary and the second primary beneficiary), the income stream’s term complies with this subsection if it is a period of whole years that:

starts on the income stream’s commencement day; and

is at least as long as the lesser of the life expectancies (rounded up, if not consisting of a whole number of years, to the next whole number), on the commencement day, of:

the first primary beneficiary; and

the second primary beneficiary; and

is at most as long as the period worked out under subsection (2F).

For the purposes of paragraph (2E)(c), the period is the greater of:

the greater of what would be the life expectancies (rounded up, if not consisting of a whole number of years, to the next whole number), on the commencement day, of:

the first primary beneficiary, if the first primary beneficiary were 5 years younger; and

the second primary beneficiary, if the second primary beneficiary were 5 years younger; and

the greater of:

the period (rounded up, if not consisting of a whole number of years, to the next whole number) starting on the commencement day and ending on the day on which the first primary beneficiary reaches age 100 (assuming that the first primary beneficiary lives until then); and

the period (rounded up, if not consisting of a whole number of years, to the next whole number) starting on the commencement day and ending on the day on which the second primary beneficiary reaches age 100 (assuming that the second primary beneficiary lives until then).

Determination that income stream not asset-test exempt

The Commission may determine that an income stream that meets the requirements of subsection (2) is not an asset-test exempt income stream if the Commission is satisfied that the person who has purchased the income stream has commuted an asset-test exempt income stream within 6 months after its commencement day on at least 3 occasions since the person first received a service pension, income support supplement, a veteran payment or a social security payment.

Determination that income stream is asset-test exempt

The Commission may determine, in writing, that an income stream is an asset-test exempt income stream for the purposes of this Act. In making the determination, the Commission is to have regard to the guidelines (if any) determined under subsection (5).

To avoid doubt, a determination under subsection (4) may be made in respect of an income stream regardless of the income stream’s commencement day.

A determination under subsection (4) is not a legislative instrument.

Guidelines to be complied with in making determination

The Commission may determine, by legislative instrument, guidelines to be complied with when making a determination under subsection (4).

Interpretation

In this section:

hardship amount has the same meaning as in section 5JA (see subsection 5JA(7).

non-commutation funded income stream means an income stream that has not been purchased by transferring directly to the purchase of the income stream a payment resulting from the commutation of another asset-test exempt income stream.

reversionary partner, in relation to the primary beneficiary of an income stream and a particular day, means another person who, on that day:

is a member of a couple with the primary beneficiary; and

is the person to whom the income stream will revert on the primary beneficiary’s death.

Note: For paragraph (a), member of a couple is defined in section 5E.

General requirements

(1) An income stream provided to a person is also an asset-test exempt income stream for the purposes of this Act if:

all of the following criteria are satisfied:

the income stream’s commencement day happens during the period from 20 September 2004 to 19 September 2007 (both dates inclusive);

the person to whom the income stream is being provided is the primary beneficiary or the primary beneficiary’s reversionary partner (if any) on the day of the primary beneficiary’s death;

the income stream is an income stream arising under a contract, or governing rules, that meets the requirements of subsection (2);

the Commission has not made a determination under subsection (10) in respect of the income stream;

the Commission is satisfied that the requirements of subsection (2) have been given effect to from the day the income stream commenced to be paid; or

the Commission has made a determination under subsection (11) in respect of the income stream.

Note: For paragraph (a), reversionary partner is defined in subsection (14).

Requirements of contract/governing rules for provision of income stream

A contract, or the governing rules, for the provision of an income stream to a person meets the requirements of this subsection if the contract or governing rules specify:

the income stream’s term, which must comply with subsection (3) or (4); and

obligations for the making of payments under the income stream that satisfy the requirements of subsections (5) to (9); and

if the income stream is purchased by or for the primary beneficiary—that the first payment under the income stream relates to the period commencing on the day of that purchase; and

if the income stream is not purchased, but acquired, by or for the primary beneficiary—that the first payment under the income stream relates to the period commencing on the day of that acquisition; and

that the income stream has no residual capital value; and

that the income stream cannot be commuted except:

if the income stream is a non-commutation funded income stream and the commutation is made within 6 months after the commencement day of the income stream; or

if the payment resulting from the commutation is transferred directly to the purchase of another income stream that is an asset-test exempt income stream; or

if the primary beneficiary’s reversionary partner (if any) on the day of the primary beneficiary’s death survives the primary beneficiary—on or after the partner’s death; or

if subparagraph (iii) does not apply—on or after the primary beneficiary’s death; or

to the extent necessary to cover any superannuation contributions surcharge relating to the income stream; or

(vi) to the extent necessary to give effect to an entitlement of the person’s partner or former partner under a payment split under Family Law Act 1975; orPart VIIIB of the

(via) to the extent necessary in order to comply with Taxation Administration Act 1953; orsection 136-80 in Schedule 1 to the

to the extent necessary to pay a hardship amount; and

that the income stream cannot be transferred except on death; and

that neither the capital value of the income stream, nor the income from it, can be used as security for a borrowing; and

that, if the income stream reverts, it must not have a reversionary component greater than the account balance immediately before the reversion; and

that, if the income stream is commuted, the commuted amount must not be greater than the account balance immediately before the commutation.

Note: For paragraph (f), hardship amount, non-commutation funded income stream and reversionary partner are defined in subsection (14) and asset-test exempt income stream is defined in section 5J.

Term of the income stream

(3) An income stream’s term complies with this subsection if it is a period of whole years that:

starts on the income stream’s commencement day; and

is at least as long as the primary beneficiary’s life expectancy (rounded up, if not consisting of a whole number of years, to the next whole number) on the commencement day; and

is at most as long as the greater of:

what would be the primary beneficiary’s life expectancy (rounded up, if not consisting of a whole number of years, to the next whole number) on the commencement day if the primary beneficiary were 5 years younger; and

the period (rounded up, if not consisting of a whole number of years, to the next whole number) starting on the commencement day and ending on the day on which the primary beneficiary reaches age 100 (assuming that the primary beneficiary lives until then).

(4) An income stream’s term complies with this subsection if it is a period of whole years that:

starts on the income stream’s commencement day; and

is at least as long as the greater of the life expectancies (rounded up, if not consisting of a whole number of years, to the next whole number), on the commencement day, of:

the primary beneficiary; and

the primary beneficiary’s reversionary partner on that day; and

is at most as long as the period worked out under subsection (4A).

For the purposes of paragraph (4)(c), the period is the greater of:

the greater of what would be the life expectancies (rounded up, if not consisting of a whole number of years, to the next whole number), on the commencement day, of:

the primary beneficiary, if the primary beneficiary were 5 years younger; and

the primary beneficiary’s reversionary partner on that day, if the partner were 5 years younger; and

the greater of:

the period (rounded up, if not consisting of a whole number of years, to the next whole number) starting on the commencement day and ending on the day on which the primary beneficiary reaches age 100 (assuming that the primary beneficiary lives until then); and

the period (rounded up, if not consisting of a whole number of years, to the next whole number) starting on the commencement day and ending on the day on which the primary beneficiary’s reversionary partner on the commencement day reaches age 100 (assuming that the partner lives until then).

Total amount payable in each financial year—general rule

For each financial year wholly or partly within the income stream’s term, the total amount of the payments to be made under the income stream must not be less than 90%, nor greater than 110%, of the amount worked out under the formula:

where:

account balance means:

if the financial year includes the income stream’s commencement day—the opening account balance for the income stream; or

otherwise—the account balance for the income stream at the start of the financial year.

PF means the payment factor for the income stream for the financial year, worked out under principles determined by the Commission under subsection (5A).

(5A) The Commission must, by legislative instrument, determine principles for the purposes of the definition of PF in subsection (5).

Other rules about payments under the income stream

If the income stream’s commencement day is not a 1 July, a total amount worked out under subsection (5) for the financial year starting on the preceding 1 July must be reduced on a pro-rata basis by reference to the number of days in the financial year that are on and after the commencement day.

If:

the income stream’s commencement day happens in June; and

no payment is made under the income stream for the financial year in which the commencement day happens;

subsections (5) and (6) do not apply to the income stream for that financial year.

(8) If the amount (the test amount) of a payment to be made under the income stream on a day in a financial year:

is worked out by reference to a total amount worked out under subsection (5) (and subsection (6), if applicable) for the financial year; and

exceeds the income stream’s account balance on that day;

then:

the account balance (if any) must be paid instead of the test amount; and

that total amount described in paragraph (a) must be reduced by the amount of the excess.

If the income stream has a positive account balance at the end of its term, a payment equal to that account balance must be made within 28 days after the end of the term.

Determination that income stream not asset-test exempt

The Commission may determine that an income stream that meets the requirements of subsection (2) is not an asset-test exempt income stream if the Commission is satisfied that:

the primary beneficiary has commuted an asset-test exempt income stream on at least 3 occasions since the person first received a service pension, income support supplement, a veteran payment or a social security payment; and

on at least 3 of those occasions, the commutation happened within 6 months after the commencement day of the income stream concerned.

Determination that income stream is asset-test exempt

The Commission may determine, in writing, that an income stream is an asset-test exempt income stream for the purposes of this Act. In making the determination, the Commission must have regard to the guidelines (if any) determined under subsection (12).

To avoid doubt, a determination under subsection (11) may be made in respect of an income stream regardless of the income stream’s commencement day.

A determination under subsection (11) is not a legislative instrument.

Guidelines to be complied with in making determination

The Commission may determine, by legislative instrument, guidelines to be complied with when making a determination under subsection (11).

Definitions

In this section:

hardship amount has the same meaning as in section 5JA (see subsection 5JA(7)).

non-commutation funded income stream means an income stream that has not been purchased by transferring directly to the purchase of the income stream a payment resulting from the commutation of another asset-test exempt income stream.

reversionary partner, in relation to the primary beneficiary of an income stream and a particular day, means another person who, on that day:

is a member of a couple with the primary beneficiary; and

is the person to whom the income stream will revert on the primary beneficiary’s death.

Note: For paragraph (a), member of a couple is defined in section 5E.

An income stream provided to a person is an asset-test exempt income stream for the purposes of this Act if the income stream is a military invalidity pension income stream.

If:

(a) an income stream is acquired or purchased (the original family law affected income stream) by a person (the member); and

(b) the member’s partner or former partner (the non-member) becomes entitled to be paid some or all of that income stream under:

(i) a payment split under Family Law Act 1975; orPart VIIIB of the

(ii) an order under Family Law Act 1975;Part VIIIAA of the

then so much (if any) of the income stream paid to the non-member as a series of ongoing payments (secondary FLA income stream) and the remainder (if any) of the income stream paid to the member as such a series of payments (primary FLA income stream) are each family law affected income streams.

If there is a primary FLA income stream

If a primary FLA income stream is, or would be if the income stream were assessed for the purposes of this Act:

an asset-tested income stream (long term); or

an asset-tested income stream (short term); or

an asset-tested income stream (lifetime);

then the secondary FLA income stream to which it is related is also to be treated as if it were assessed as an income stream of that kind.

If there is no primary FLA income stream

If:

there is no primary FLA income stream in relation to a secondary FLA income stream; and

had there been a primary FLA income stream in relation to that secondary FLA income stream it would have been assessed for the purposes of this Act as an asset-tested income stream (long term), an asset-tested income stream (short term) or an asset-tested income stream (lifetime);

then the secondary FLA income stream is to be treated as if it were assessed as an income stream of that kind.

(1) Subject to subsection (2), an income stream is an asset-tested income stream (lifetime) if:

the contract, or governing rules, for the provision of the income stream ensure that, once payments of the income stream start, the income stream is to continue for the remainder of the life of one or more individuals; and

the contract, or governing rules, for the provision of the income stream ensure that the amounts of those payments are determined by having regard to the age, life expectancy or other factors relevant to the mortality of those individuals; and

the income stream is not an asset-test exempt income stream; and

the income stream is not a defined benefit income stream.

If:

paragraphs (1)(a) to (d) are satisfied in relation to an income stream; and

the income stream is of a kind determined in an instrument under subsection (3);

the income stream is an asset-tested income stream (lifetime) only to the extent determined in the instrument.

The Commission may make a legislative instrument for the purposes of subsection (2).

(4) An income stream is an asset-tested income stream (lifetime) if:

the income stream satisfies the conditions determined in an instrument under subsection (5); and

the income stream is not an asset-test exempt income stream; and

the income stream is not a defined benefit income stream.

The Commission may, by legislative instrument, determine conditions for the purposes of paragraph (4)(a).

In this Act, the expressions disability expenses maintenance, maintenance and maintenance income have the same respective meanings as in the Family Assistance Act.

In this Act, unless the contrary intention appears:

accommodation bond has the same meaning as in the Aged Care Act 2024.

accommodation bond balance has the same meaning as in the Aged Care Act 2024.

accommodation charge has the same meaning as in the Aged Care Act 2024.

asset means property or money (including property or money outside Australia).

daily accommodation contribution has the same meaning as in the Aged Care Act 2024.

daily accommodation payment has the same meaning as in the Aged Care Act 2024.

dispose of assets has the meaning given by section 52E.

family member, in relation to a person, means:

Note: However, certain property or money is to be disregarded when calculating the value of a person’s assets for certain purposes (for example, see subsection 52(1)).

the partner or a parent of the person; or

a sister, brother or child of the person; or

another person who, in the Commission’s opinion, should be treated for the purposes of this definition as one of the person’s relations described in paragraph (a) or (b).

fishing operations means:

operations relating directly to the taking or catching of fish, turtles, crustacea, oysters or other shellfish; or

oyster farming; or

pearling operations;

but does not include:

whaling; or

operations conducted otherwise than for the purposes of a business.

foreign superannuation fund has the same meaning as in the Income Tax Assessment Act 1997.

foreign superannuation pension means a pension presently payable from a foreign superannuation fund.

forest operations means:

the planting or tending in a plantation or forest of trees intended for felling; or

the felling of trees in a plantation or forest;

but does not include operations conducted otherwise than for the purposes of a business.

pension year has the meaning given by subsections (9) and (9A).

primary producer means a person whose principal occupation is primary production.

primary production means production resulting directly from: the cultivation of land; or the maintenance of animals or poultry for the purpose of selling them or their bodily produce, including natural increase; or fishing operations; or forest operations;

the cultivation of land; or

the maintenance of animals or poultry for the purpose of selling them or their bodily produce, including natural increase; or

fishing operations; or

forest operations;

and includes the manufacture of dairy produce by the person who produced the raw material used in that manufacture.

principal home has the meaning given by section 5LA.

property owner has the meaning given by subsection (4).

reasonable security of tenure has the meaning given by subsection 5LA(10).

refundable deposit has the same meaning as in the Aged Care Act 2024.

refundable deposit balance has the same meaning as in the Aged Care Act 2024.

unrealisable asset has the meaning given by subsections (11) and (12).

value of a charge or encumbrance on an asset has the meaning given by subsection (3).

value of a liability has the meaning given by subsection (3A).

value of a particular asset has the meaning given by subsection (2).

(2) A reference in this Act to the value of a particular asset of a person is, if the asset is owned by the person jointly or in common with another person or persons, a reference to the value of the person’s interest in the asset.

(3) A reference in this Act to the value of a charge or encumbrance on an asset of a person is, if the asset is owned by the person jointly or in common with another person or persons, a reference to the value of that charge or encumbrance in so far as it relates to the person’s interest in the asset.

(3A) A reference in this Act to the value of a liability of a person is, if the liability is shared by the person with another person, a reference to the value of the person’s share of the liability.

(3B) To avoid doubt, an accommodation bond balance (within the meaning of the Aged Care Rules 2025) in respect of an accommodation bond (within the meaning of the Aged Care Act 2024: see subsection (1) of this section) paid by a person is taken to be an asset of the person.

(3BA) To avoid doubt, a refundable deposit balance (within the meaning of the Aged Care Act 2024) in respect of a refundable deposit (within the meaning of that Act: see subsection (1) of this section) paid by a person is taken to be an asset of the person.

To avoid doubt, a person’s entitlement to be paid a pension bonus or pension bonus bereavement payment is taken not to be an asset of the person for the purposes of this Act.

Subsection (3C) is to be disregarded in determining whether any other entitlement is an asset for the purposes of this Act.

Property owner

For the purposes of this Act:

(a) a person who is not a member of a couple is a property owner if:

the person has a right or interest in the person’s principal home; and

the person’s right or interest in the home gives the person reasonable security of tenure in the home; and

(b) a person who is a member of a couple is a property owner if:

the person, or the person’s partner, has a right or interest in one residence that is:

(A) the person’s principal home; or

(B) the partner’s principal home; or

(C) the principal home of both of them; and

the person’s right or interest, or the partner’s right or interest, in the home gives the person, or the person’s partner, reasonable security of tenure in the home; and

(c) a person (whether a member of a couple or not) is a property owner while:

the whole or a part of the proceeds of the sale of the person’s principal home are disregarded under subsection 52(2); or

the value of a residence, land or a structure is disregarded under subsection 52(2).

Note: See also sections 52KA–52X (special residences).

Pension year—disposal of assets

(9) A reference in sections 52E to 52J (disposal of assets) to a pension year, in relation to a person who is receiving a service pension, income support supplement, a veteran payment or a social security pension is a reference to:

if the person is a member of a couple and the person and the person’s partner were, immediately before they became members of that couple, receiving a service pension, income support supplement, a veteran payment or a social security pension—the period of 12 months commencing on the day on which they became members of that couple; or

in a case (not being a case referred to in paragraph (a)) where the person is a member of a couple and the person’s partner is receiving a service pension, income support supplement, a veteran payment or a social security pension—the period of 12 months commencing on the day on which a service pension, income support supplement, a veteran payment or a social security pension first became payable to the person or to the person’s partner, whichever was the earlier; or

in any other case—the period of 12 months commencing on the day on which a service pension, income support supplement, a veteran payment or a social security pension first became payable;

and to each succeeding and each preceding period of 12 months.

No pension year to extend beyond 30 June 2002

No period after 30 June 2002 is, or is a part of, a pension year of a person. If, apart from this subsection, a period beginning before 1 July 2002 and ending on or after that date would be a pension year of a person, the part of that period that ends immediately before that date is taken to be a pension year of the person.

(10) The lending of money after 22 May 1986 is not a disposition of an asset for the purposes of section 52E.

Pre-pension year—disposal of assets

(10A) A reference in sections 52FA and 52GA (disposal of assets) to a pre-pension year, in relation to a person who is claiming:

a service pension; or

income support supplement; or

a social security pension;

is a reference to the period of 12 months ending on the day that is the person’s provisional commencement day and each preceding period of 12 months.

No pre-pension year to extend beyond 30 June 2002

Note: A disposition of assets that is more than 5 years old is disregarded (see section 52J).

No period after 30 June 2002 is, or is a part of, a pre-pension year of a person. If, apart from this subsection, a period beginning before 1 July 2002 and ending on or after that date would be a pre-pension year of a person, the part of that period that ends immediately before that date is taken to be a pre-pension year of the person.

Unrealisable asset

(11) An asset of a person is an unrealisable asset if:

the person cannot sell or realise the asset; and

the person cannot use the asset as a security for borrowing.

(12) For the purposes of the application of this Act to a service pension, income support supplement or a veteran payment, an asset of a person is also an unrealisable asset if:

the person could not reasonably be expected to sell or realise the asset; and

the person could not reasonably be expected to use the asset as a security for borrowing.

Principal home

(1) A reference in this Act to the principal home of a person includes a reference to:

if the principal home is a dwelling-house—the land adjacent to the dwelling-house to the extent that:

the land is held on the same title document as the land on which the dwelling-house is located; and

the private land use test in subsection (3) is satisfied in relation to the land or, if the person is one to whom the extended land use test applies in relation to the land, the extended land use test in subsection (6) is satisfied in relation to the land; or

if the principal home is a flat or home unit—a garage or storeroom that is used primarily for private or domestic purposes in association with the flat or home unit.

The Commission may determine that land is to be treated, for the purpose of subparagraph (1)(a)(i), as if it were held on the same title document as other land if any of the following apply:

the dwelling-house is located on both blocks of land;

the dwelling-house is located on one of the blocks of land but that block and the other block, taken together, are a place, or are part of a place, that is protected under a law of the Commonwealth, or of a State or Territory, because of its natural, historic or indigenous heritage;

the alienation of one of the blocks of land without the other would seriously undermine the function of the house as a dwelling.

Note: A mere loss of amenity, such as the loss of a swimming pool, garden, tennis court or view, would not seriously undermine the function of a house as a dwelling.

Private land use test

(3) The private land use test is satisfied in relation to land if:

the area of land, together with the area of the ground floor of the dwelling-house, is not more than 2 hectares; and

the land is used primarily for private or domestic purposes in association with the dwelling-house.

To whom does the extended land use test apply?

The extended land use test applies to a person in relation to land adjacent to the dwelling-house if:

the person has reached the qualifying age; and

the person is eligible to receive a service pension, income support supplement or a veteran payment and that pension, supplement or payment is payable to the person; and

the dwelling-house has been the person’s principal home for 20 years or more continuously.

Note: For qualifying age see section 5Q.

(5) Where a person (the first person) to whom the extended land use test applies in relation to land adjacent to the dwelling-house in which the person lives is a member of a couple:

(a) the extended land use test applies to the first person’s partner (the second person); and

the extended land use test continues to apply to the second person if the first person and the second person cease to be members of a couple for any reason, provided the dwelling-house continues to be the second person’s principal home.

Extended land use test

(6) The extended land use test is satisfied in relation to land if:

the area of the land, together with the area of the ground floor of the dwelling-house, is more than 2 hectares; and

the Commission determines that, given the circumstances of the person to whom the test is applied in relation to the land, the person is making effective use of the land.

In determining whether a person is making effective use of the land, the Commission is to take into account the following matters:

where the land is located;

the size of the block of land;

the person’s family situation;

the person’s health;

(e) whether the land contains a dwelling-house occupied by a family member of the person, or a child of a family member of the person, receiving an income support payment (within the meaning of the Social Security Act 1991);

whether the land is being used to support:

a family member of the person; or

a child of a family member of the person;

any current commercial use of the land;

any potential commercial use of the land;

whether the person’s capacity to make commercial use of the land is diminished because the person, or the person’s partner, has responsibility for the care of another person;

whether the block of land is an amalgamation of 2 or more blocks and, if so:

when the amalgamation occurred; and

whether the amalgamation reduced the potential for the land to produce personal income or to support the person;

environmental issues relating to the land;

any other matter that the Commission considers relevant.

Effect of absences from principal home

(8) A residence of a person is taken to be the person’s principal home during:

if the Commission is satisfied that the residence was previously the person’s principal home but that the person left it for the purpose of going into a care situation or becoming an aged care resident—any period during which:

(i) the person is accruing a liability to pay an accommodation charge (or would be accruing such a liability, assuming that no conditions under Aged Care Act 2024 were currently being imposed on the provider of the care concerned); andsection 143 of the

the person, or the person’s partner, is earning, deriving or receiving rent for the residence from another person; and

if the Commission is satisfied that the residence was previously the person’s principal home but that the person left it for the purpose of going into a care situation or becoming an aged care resident—any period during which:

(i) the person is liable to pay all or some of an accommodation bond by periodic payments (or would be liable to do so, assuming that no conditions under Aged Care Act 2024 were currently being imposed on the provider of the care concerned); andsection 143 of the

the person, or the person’s partner, is earning, deriving or receiving rent for the residence from another person; and

if the Commission is satisfied that the residence was previously the person’s principal home but that the person left it for the purpose of going into a care situation or becoming an aged care resident—any period during which:

(i) the person is liable to pay all or some of a daily accommodation payment or a daily accommodation contribution (or would be liable to do so, assuming that no conditions under Aged Care Act 2024 were currently being imposed on the provider of the care concerned); andsection 143 of the

the person, or the person’s partner, is earning, deriving or receiving rent for the residence from another person; and

any period during which the residence is, because of paragraph (a), (b) or (ba), the principal home of the person’s partner.

Note 1: Accommodation charge and accommodation bond have the same meaning as in the Aged Care Act 2024: see subsection 5L(1).

Note 2: For rent, see subsection 5N(2). For in a care situation, see subsection 5NC(2). For aged care resident, see subsection 5NC(5).

Note 3: This subsection is not meant to imply that a person may have more than one principal home at the same time.

Note 4: A person can be liable to pay an accommodation charge only if certain conditions are met in accordance with rules made for the purposes of Chapter 4 of the Aged Care Act 2024.

Subsection (8) does not apply in relation to a person if:

(a) that subsection did not apply in relation to the person immediately before the commencement of the Aged Care Act 2024; or

a period of 28 consecutive days ends after that commencement in which the person:

was not provided with residential care or flexible care through a residential care service or a flexible care service; and

did not access ongoing funded aged care services in an approved residential care home;

other than because the person was on leave.

(8C) An expression used in subsection (8A) and in the Aged Care Act 2024 or the Aged Care Act 1997 (as in force immediately before the commencement of the Aged Care Act 2024) has the same meaning in that subsection as in those Acts.

(9) A residence of a person is to be taken to continue to be the person’s principal home during:

any period (not exceeding 12 months or any longer period determined under subsection (9A) or (9B)) during which the person is temporarily absent from the residence; and

if the person is in a care situation or is an aged care resident—the period of 2 years beginning when the person started to be in a care situation or an aged care resident; and

any period during which:

the person is in a care situation or is an aged care resident; and

the residence is, or because of paragraph (a) or (b) continues to be, the principal home of the person’s partner or non-illness separated spouse; and

if:

the person is in a care situation or is an aged care resident; and

while paragraph (c) applies, the person’s partner or non-illness separated spouse dies while in a care situation or while an aged care resident; and

the person’s partner or non-illness separated spouse had been in a care situation or an aged care resident for less than 2 years;

the period of 2 years beginning at the time the person’s partner or non-illness separated spouse started to be in a care situation or an aged care resident; and

where:

the person is in a care situation or is an aged care resident; and

while paragraph (c) applies, the person’s partner or non-illness separated spouse dies (but not while in a care situation or while an aged care resident);

the period of 2 years from that death; and

any period of up to 2 years while the person is absent from the residence and is personally providing community-based care for another person.

Note 1: For in a care situation, see subsection 5NC(2).

Note 2: For aged care resident, see subsection 5NC(5).

For the purposes of paragraph (9)(a), the Commission may determine, in writing, a period of up to 24 months if:

a person’s principal home is lost or damaged (including, for example, by a natural disaster); and

the loss or damage was not wilfully caused by the person; and

the person is making reasonable attempts, as a result of the loss or damage, to:

rebuild or repair the principal home; or

sell the principal home in order to purchase or build another residence that is to be the person’s principal home; or

purchase or build another residence that is to be the person’s principal home; and

the person has made those attempts within a reasonable period after the loss or damage; and

the person has experienced delays beyond his or her control in:

rebuilding, repairing or selling the principal home; or

purchasing or building the other residence.

For the purposes of paragraph (9)(a), the Commission may, in relation to a person and a residence of the person, determine, in writing, a longer period if:

the Commission is satisfied that the person is temporarily absent from that residence because the person is absent from Australia; and

the Commission is satisfied that the person’s absence from Australia is temporary; and

the Commission is satisfied that the person is unable to return to Australia before the end of the following period because of circumstances beyond the person’s control:

the 12 months mentioned in paragraph (9)(a), unless subparagraph (ii) of this paragraph applies;

if the Commission has determined a period under subsection (9A) in relation to the person and that residence—that period.

Reasonable security of tenure

(10) If a person has a right or interest in the person’s principal home, the person is to be taken to have a right or interest that gives the person reasonable security of tenure in the home unless the Commission is satisfied that the right or interest does not give the person reasonable security of tenure in the home.

Definition of title document

In this section:

title document means:

in relation to land title which is registered under a Torrens system of registration—the certificate of title for the land; or

in any other case—the last instrument by which title to the land was conveyed.

Application of the Legislation Act 2003

A determination under subsection (2) or paragraph (6)(b) is not a legislative instrument.

In this Act:

member of an ordinary couple with different principal homes has the meaning given by subsection (2).

retirement village has the meaning given by subsections (3) and (4).

retirement village resident has the meaning given by subsection (5).

(2) A person is a member of an ordinary couple with different principal homes if:

the person is a member of a couple; and

the person does not share the person’s principal home with the person’s partner; and

the person is not a member of an illness separated couple.

(3) Premises constitute a retirement village for the purposes of this Act if:

the premises are residential premises; and

accommodation in the premises is primarily intended for persons who are at least 55 years old; and

the premises consist of:

one or more of the following kinds of accommodation:

(A) self-care units;

(B) serviced units;

(C) hostel units; and

communal facilities for use by occupants of the units referred to in subparagraph (i).

For the purposes of paragraph (3)(b), if accommodation in premises is primarily intended for persons who are a certain age that is more than 55 years, the accommodation in those premises is taken to be primarily intended for persons who are at least 55 years old.

(4) Residential premises are also to be taken to constitute a retirement village for the purposes of this Act if, in the Commission’s opinion, the premises have similar functions to those referred to in subsection (3).

(5) A person is a retirement village resident if the person’s principal home is in a retirement village.

Note: Subsection (3A) was inserted as a response to the decision of the Federal Court in Repatriation Commission v Clarke (unreported, VG73 of 1991).

In this Act, unless the contrary intention appears:

granny flat interest has the meaning given by subsection (2).

granny flat resident has the meaning given by subsection (3).

(2) A person has a granny flat interest in the person’s principal home if:

the residence that is the person’s principal home is a private residence; and

the person has acquired for valuable consideration or has retained:

a right to accommodation for life in the residence; or

a life interest in the residence.

(3) A person is a granny flat resident if the person has a granny flat interest in the person’s principal home.

In this Act, unless the contrary intention appears:

deferred payment amount has the meaning given by subsections (6), (7) and (8).

initial payment amount has the meaning given by subsections (4) and (5).

sale leaseback agreement has the meaning given by subsections (2) and (3).

sale leaseback home has the meaning given by subsection (9).

sale leaseback resident has the meaning given by subsections (10) and (11).

(2) An agreement is a sale leaseback agreement, in relation to a person, if:

under the agreement the person agrees to sell his or her principal home; and

the residence that is the person’s principal home is a private residence; and

under the agreement the person retains a right to accommodation in the residence; and

under the agreement the buyer is to pay an amount when the person vacates the residence or when the person dies.

(3) An agreement is a sale leaseback agreement for the purposes of this Act if the agreement is an agreement in respect of which a determination under subsection 5R(14) is in force.

(4) The initial payment amount, in relation to a sale leaseback agreement, is the amount that the Commission determines to be the initial amount that the buyer is to pay under the sale leaseback agreement.

In making the determination the Commission is to have regard to the following:

the consideration to be provided by the parties to the sale leaseback agreement;

when that consideration is to be provided;

the payments that are to be made under the sale leaseback agreement;

when those payments are to be made;

any other relevant matters.

(6) The deferred payment amount, in relation to a sale leaseback agreement, is the total amount to be paid by the buyer under the sale leaseback agreement less the initial payment amount.

(7) If the Commission considers that, for any special reason in a particular case, the deferred payment amount should be another amount, the deferred payment amount is that other amount.

Note: Sections 52E to 52JE (disposal of assets) may be relevant to working out the deferred payment amount.

Without limiting subsection (7), the Commission may consider that the deferred payment amount should be another amount if:

the parties to the sale leaseback agreement are not at arm’s length; or

the parties to the sale leaseback agreement have undervalued the sale leaseback home so as to reduce the total amount to be paid by the buyer under the agreement.

(9) A residence is a sale leaseback home if the residence is subject to a sale leaseback agreement.

(10) A person is a sale leaseback resident if:

the person’s principal home is subject to a sale leaseback agreement; and

the person is a party to the sale leaseback agreement.

(11) If a person is a member of a couple, the person is a sale leaseback resident if:

the person lives in the sale leaseback home; and

the person’s partner is a sale leaseback resident.

Note: Subsection (11) will only be used if a person is not a sale leaseback resident under subsection (10).

In this Act, unless the contrary intention appears:

actual value has the meaning given by subsection (4).

special residence has the meaning given by subsection (2).

special resident has the meaning given by subsection (3).

(2) A residence is a special residence if the residence is:

in a retirement village; or

a granny flat; or

a sale leaseback home.

(3) A person is a special resident if the person is:

a retirement village resident; or

a granny flat resident; or

a sale leaseback resident.

(4) In Subdivision C of actual value of the assets of a member of a couple is a reference to the value of the assets that are actually assets of the person rather than the person’s partner, that is, the value that would be the value of the person’s assets apart from the provisions in point SCH6-F2.Division 11 (sections 52KA to 52X), a reference to the

In this Act, unless the contrary intention appears:

amount of rent paid or payable has the meaning given by subsections (6) and (7).

board, when used in the expression board and lodging, means the provision of meals on a regular basis in connection with the provision of lodging.

Government rent means rent payable to any of the following authorities: New South Wales Land and Housing Corporation; (b) the Director, within the meaning of the Housing Act 1983 of the State of Victoria; The Queensland Housing Commission; The Corporation of the Director of Aboriginal and Islanders Advancement established by a law of Queensland; the South Australian Housing Trust; The State Housing Commission established by a law of Western Australia; the Director-General of Housing and Construction holding office under a law of Tasmania; the Northern Territory Housing Commission; (i) The Commissioner for Housing within the meaning of the Housing Assistance Act 1987 of the Australian Capital Territory.

New South Wales Land and Housing Corporation;

(b) the Director, within the meaning of the Housing Act 1983 of the State of Victoria;

The Queensland Housing Commission;

The Corporation of the Director of Aboriginal and Islanders Advancement established by a law of Queensland;

the South Australian Housing Trust;

The State Housing Commission established by a law of Western Australia;

the Director-General of Housing and Construction holding office under a law of Tasmania;

the Northern Territory Housing Commission;

(i) The Commissioner for Housing within the meaning of the Housing Assistance Act 1987 of the Australian Capital Territory.

Note 1: Subsection (5) deals with the situation when the name of an authority is altered.

Note 2: Rent payable by a person for living in premises in respect of which someone else pays Government rent may also be regarded as Government rent (see subsection (4)).

ineligible property owner means a property owner other than: a person who is a property owner by virtue of paragraph 5L(4)(c); or a person who: is absent from the person’s principal home, in relation to which the person is a property owner; and is in a care situation but is not residing in a retirement village; or a person who: is absent from the person’s principal home, in relation to which the person is a property owner; and is personally providing community-based care for another person; or a person who pays amounts for the use of a site for a caravan or other vehicle, or a structure, that is the person’s principal home; or a person who pays amounts for the right to moor a vessel that is the person’s principal home.

a person who is a property owner by virtue of paragraph 5L(4)(c); or

a person who:

is absent from the person’s principal home, in relation to which the person is a property owner; and

is in a care situation but is not residing in a retirement village; or

a person who:

is absent from the person’s principal home, in relation to which the person is a property owner; and

is personally providing community-based care for another person; or

a person who pays amounts for the use of a site for a caravan or other vehicle, or a structure, that is the person’s principal home; or

a person who pays amounts for the right to moor a vessel that is the person’s principal home.

Note: For retirement village see subsections 5M(3) and (4), for property owner see subsection 5L(4), for principal home see section 5LA, for personally providing community-based care, see subsection 5NC(4), for in a care situation see subsection 5NC(2).

rent has the meaning given by this section.

residential care charge means an amount paid by, or on behalf of, a person to a registered provider (within the meaning of the Aged Care Act 2024) for the delivery of care to the person, but does not include an accommodation bond (within the meaning of that Act).

(2) Amounts are rent in relation to the person if:

the amounts are payable by the person:

as a condition of occupancy of premises, or of a part of premises, that are in Australia and are occupied by the person as the person’s principal home; or

as a condition of occupancy of premises, or of a part of premises, that are in Australia and are occupied by the person to allow him or her personally to provide community-based care for another person; or

for services provided in a retirement village in Australia that is the person’s principal home; or

if the person is in a care situation and the place where the person receives the care is a place in Australia that is the person’s principal home or would be the person’s principal home apart from subsection 5LA(8) or (9)—for accommodation in the place where the person receives care; or

for lodging in premises in Australia that are the person’s principal home; or

for the use of a site in Australia for:

(A) a caravan or other vehicle; or

(B) a structure;

occupied by the person as the person’s principal home; or

for the right to moor in Australia a vessel that is occupied by the person as the person’s principal home; and

either:

the amounts are payable every 3 months or more frequently; or

the amounts are payable at regular intervals (greater than 3 months) and the Commission is satisfied that the amounts should be treated as rent for the purposes of this Act.

Note: For retirement village see subsections 5M(3) and (4) and for principal home see section 5LA.

Subparagraphs (2)(a)(ii) to (vi) (inclusive) do not limit the generality of subparagraph (2)(a)(i).

(3AA) To avoid doubt, an amount that is paid or becomes payable by a person is not rent in relation to the person (either at the time when it is paid or becomes payable or at any later time) if the amount is, or forms part of, a special resident’s entry contribution in relation to the person in respect of a retirement village under section 52M, whether the amount is paid or payable (whether wholly or partly) in a lump sum, by instalments or otherwise.

(3AB) If the whole or any part of an amount that is not rent in relation to a person as mentioned in subsection (3AA) is, or will or may become, repayable to the person, any amount by which the amount so repayable is reduced is not rent in relation to the person (either at the time when the reduction occurs or at any later time).

If a person is in a care situation and the person’s principal home is not the place where the person receives the care, the person’s rent may be an amount described in any of the subparagraphs of paragraph (2)(a) that applies to the person but cannot include amounts described in different subparagraphs of paragraph (2)(a).

Note: Under subsection 5LA(8) or (9), the principal home of a person in a care situation may be a place other than the place where the person receives care.

If an amount described in subparagraph (2)(a)(ia) and an amount described in another subparagraph of paragraph (2)(a) are payable by a person, the person’s rent may be an amount described in either of those subparagraphs but cannot include amounts described in different subparagraphs of paragraph (2)(a).

Note: Under subsection 5LA(8) or (9), premises occupied by a person as described in subparagraph (2)(a)(ia) may not be the person’s principal home.

(4) If a person pays, or is liable to pay, rent for living in premises in respect of which another person pays Government rent, the rent paid or payable by the person for living in those premises is taken to be Government rent, unless:

the rent paid by the other person is at or above a rate that the authority receiving the rent has told the Department is the market rate; or

the person shares the premises with that other person and the person’s income has been taken into account in calculating the amount of Government rent payable in respect of those premises.

(5) If a law of a State or of the Northern Territory alters the name of an authority referred to in the definition of Government rent in subsection (1), a reference to that authority in that definition is to be read as a reference to the authority under the new name.

Board and lodging

Where:

a person pays, or is liable to pay, amounts for board and lodging; and

it is not possible to work out the part of each of those amounts that is paid or payable for lodging;

the amount of rent paid or payable by the person is, for the purposes of this Act, to be taken to be two-thirds of the amounts paid or payable as mentioned in paragraph (a).

People in care situations

Where:

a person in a care situation pays, or is liable to pay, amounts for accommodation and other services in the care situation; and

it is not possible to work out the part of each of those amounts that is paid or payable in respect of accommodation;

the amount of rent paid or payable by the person is, for the purposes of this Act, to be taken to be two-thirds of the amounts paid or payable as mentioned in paragraph (a).

In this Act, unless the contrary intention appears:

current figure means:

if the amount has not yet been indexed or adjusted under Division 18 before that time—the amount; and

if the amount has been indexed or adjusted under Division 18 before that time—the amount most recently substituted for the amount under Division 18 before that time.

index number means the All Groups Consumer Price Index number that is the weighted average of the 8 capital cities and is published by the Australian Statistician in respect of that quarter.

Publication of substituted index numbers

Subject to subsection (3), if at any time (whether before or after the commencement of this section), the Australian Statistician publishes an index number for a quarter in substitution for an index number previously published by the Australian Statistician for that quarter, the publication of the later index number is to be disregarded for the purposes of this section.

Change to CPI index reference period

If at any time (whether before or after the commencement of this section) the Australian Statistician changes the index reference period for the Consumer Price Index, regard is to be had, for the purposes of applying this section after the changed index place, only to index numbers published in terms of the new index reference period.

In this Act, unless the contrary intention appears:

average weekly earnings means the amount: estimated as the average total weekly earnings, during a particular month, of all employees (all persons) in Australia; and last published by the Australian Statistician before the lump sum compensation payment became payable.

estimated as the average total weekly earnings, during a particular month, of all employees (all persons) in Australia; and

last published by the Australian Statistician before the lump sum compensation payment became payable.

Note: For lump sum preclusion period see subsections 59Q(3) to (7).

compensation has the meaning given by subsection (2).

compensation affected pension means:

Note: See also section 59O.

an invalidity service pension payable to a person who has not reached pension age; or

a partner service pension payable to a person who has not reached pension age; or

income support supplement payable to a person who has not reached qualifying age; or

a veteran payment payable to a person who has not reached pension age (within the meaning of subsections 5QB(2), (3), (4) and (5)); or

an education entry payment payable to a person who:

is receiving invalidity service pension or partner service pension; or

is receiving income support supplement and has not reached qualifying age.

Note 1: For pension age see sections 5QA and 5QB.

Note 2: For qualifying age see section 5Q.

compensation part, in relation to a lump sum compensation payment, has the meaning given by subsections (7) and (8).

compensation payer means:

a person who is liable to make a compensation payment; or

an authority of a State or Territory that has determined that it will make a payment by way of compensation to another person, whether or not the authority is liable to make the payment.

event that gives rise to a person’s entitlement to compensation has the meaning given by subsection (11).

periodic payments period means:

the period to which a periodic compensation payment, or a series of periodic compensation payments, relates; or

in the case of a payment of arrears of periodic compensation payments—the period to which those payments would have related if they had not been made by way of arrears payment.

potential compensation payer means a person who, in the Commission’s opinion, may become a compensation payer.

receives compensation has the meaning given by subsection (10).

Compensation

(2) For the purposes of compensation means:Part IIIC,

a payment of damages or compensation; or

a payment under a scheme of insurance or compensation under a law of the Commonwealth or of a State or Territory, or under a contract entered into under such a scheme; or

a payment (with or without admission of liability) in settlement of a claim for damages or of a claim under such an insurance scheme;

made wholly or partly in respect of lost earnings or lost capacity to earn. The payment may be in the form of a lump sum (or part of a lump sum) or in the form of periodic payments and may be made either within or outside Australia, but it does not include any payment that, under subsection (3), (4), (5), (6) or (6A), is excluded from the application of this subsection.

Note: Under section 59O, a person may be treated as having received compensation that the person would have received but for the effect of a State or Territory law.

Subsection (2) does not apply to a periodic payment or a lump sum payment referred to in paragraph 26(1)(b) or (2)(b) or subsection 30(3).

Subsection (2) does not apply to a compensation payment if:

the recipient has made contributions (for example, by way of insurance premiums) towards the payment; and

either:

the agreement under which the contributions are made does not provide for the amounts that would otherwise be payable under the agreement being reduced or not payable because the recipient is eligible for or receives the compensation affected pension under this Act; or

the agreement does so provide but the compensation payment has been calculated without reference to the provision.

Subsection (2) does not apply to any payment of compensation made to a person that was taken into account under Division 5A of Part II to reduce the amount, or stop the payment, of a pension that, apart from that Division, would have been payable to the person under that Part.

Subsection (2) does not apply to any payment of compensation made to a person that was taken into account under Division 4 of Part IV to reduce the amount, or stop the payment, of a pension that, apart from that Division, would have been payable to the person under that Part.

(6A) A payment under a law of the Commonwealth, a State or a Territory that provides for the payment of compensation for a criminal injury does not constitute compensation for the purposes of this Act.

(6B) The reference in subsection (6A) to a criminal injury is a reference to a personal injury suffered, or a disease or condition contracted, as a result of the commission of an offence.

Compensation part of a lump sum

(7) Subject to subsection (8), for the purposes of compensation part of a lump sum compensation payment is:Part IIIC, the

50% of the payment if the following circumstances apply:

the payment is made (either with or without admission of liability) in settlement of a claim that is, in whole or in part, related to a disease, injury or condition; and

the claim was settled, either by consent judgment being entered in respect of the settlement or otherwise; or

50% of the payment if the following circumstances apply:

the payment represents that part of a person’s entitlement to periodic compensation payments that the person has chosen to receive in the form of a lump sum; and

the entitlement to periodic compensation payments arose from the settlement (either with or without admission of liability) of a claim that is, in whole or in part, related to a disease, injury or condition; and

the claim was settled, either by consent judgment being entered in respect of the settlement or otherwise; or

if paragraphs (a) and (b) do not apply—so much of the payment as is, in the Commission’s opinion, in respect of lost earnings or lost capacity to earn, or both.

If a person:

has received periodic compensation payments in respect of lost earnings or lost capacity to earn; and

(b) after receiving those payments, receives a lump sum compensation payment in respect of the lost earnings or lost capacity to earn (the LSP); and

(c) because of receiving the LSP, becomes liable to repay an amount (the Repaid Periodic Compensation Payment—RPCP) equal to the periodic compensation payments received;

then, for the purposes of subsection (7), the amount of the lump sum compensation payment is:

For the purposes of Part IIIC, a payment of arrears of periodic compensation payments is not a lump sum compensation payment.

Note: For the treatment of a payment of arrears of periodic compensation payments where, at the time of the event that gave rise to the compensation payments, the person was receiving a payment under this Act that is covered by Part IIIC, see point SCH6-E4.

Receives compensation

(10) A person receives compensation whether he or she receives it directly or whether another person receives it, on behalf of, or at the direction of the first person.

Event giving rise to entitlement

(11) For the purposes of event that gives rise to a person’s entitlement to compensation for a disease, injury or condition is:Part IIIC, the

if the disease, injury or condition was caused by an accident—the accident; or

in any other case—the disease, injury or condition first becoming apparent;

and is not, for example, the decision or settlement under which the compensation is payable.

Insurer

(12) A reference in insurer who is, under a contract of insurance, liable to indemnify a compensation payer or a potential compensation payer against a liability arising from a claim for compensation includes a reference to:Part IIIC to an

an authority of a State or Territory that is liable to indemnify a compensation payer against such a liability, whether the authority is so liable under a contract, a law or otherwise; or

an authority of a State or Territory that determines to make a payment to indemnify a compensation payer against such a liability, whether or not the authority is liable to do so.

In this Act:

aged care resident has the meaning given by subsection (5).

in a care situation has the meaning given by subsection (2).

in respite care has the meaning given by subsection (8).

personally providing community-based care has the meaning given by subsection (4).

receiving community-based care has the meaning given by subsection (3).

(2) A person is in a care situation if:

the person is residing in premises at which accommodation is provided exclusively or principally for people who have a mental disability; or

(b) the person is a nursing-home type patient, within the meaning of the Health Insurance Act 1973, of a hospital; or

the person is in respite care; or

the person is receiving community-based care.

(3) A person is receiving community-based care if, in the Commission’s opinion, the person needs, and has been receiving or is likely to receive, a substantial level of care in a private residence for at least 14 consecutive days.

(4) A person is personally providing community-based care for another person if, in the Commission’s opinion:

the first-mentioned person is personally providing for the other person, in a private residence, a substantial level of care needed by the other person; and

has personally provided, or is likely to personally provide, that level of care for at least 14 consecutive days.

(5) Subject to subsections (6) and (7), a person is an aged care resident for the purposes of this Act if the person is accessing ongoing funded aged care services (other than under a specialist aged care program) in an approved residential care home operated by a registered provider.

A person is taken not to be an aged care resident if the person is in respite care.

The Commission may determine, for the purposes of subsection (5), that a person is taken not to be an aged care resident on a day that occurs:

after the person in fact became an aged care resident; and

before the day occurring 15 days after the person in fact became an aged care resident;

if the Commission is satisfied that, immediately before the day, the person was liable to pay rent.

(8) A person is in respite care on a particular day if the person accesses short-term funded aged care services through the service group residential care.

(9) An expression used in subsection (5) or (8) and in the Aged Care Act 2024 has the same meaning in that subsection as in that Act.

In this Act, unless the contrary intention appears:

holder of a seniors health card has the meaning given by subsection (2).

(2) A person is the holder of a seniors health card while there is in force a determination under section 118ZG or 118ZP that the person is entitled to a seniors health card.

(1) Work out whether a funeral investment that relates to a particular funeral is an exempt funeral investment by applying these rules:

the expenses for the funeral must not be prepaid; and

in relation to that funeral:

only one investment of not more than $10,000 can be an exempt funeral investment; or

only two investments that combined are not more than $10,000 can be exempt funeral investments.

Note: The amounts in paragraph (1)(b) are indexed each year on 1 July (see Division 18 of Part IIIB).

Disregard any return on an investment in determining the amount of an investment for the purposes of this section.

(3) For the purposes of subsection (1), a funeral investment means an investment, being an investment that cannot be realised before maturity and the return on which is not payable before maturity, that:

matures on the death of whichever member of a couple dies first or dies last and is to be applied on maturity to the expenses of the funeral of that member of the couple; or

matures on the death of:

the investor; or

if the investor is a member of a couple at the time the investment is made, the investor’s partner at that time;

and is to be applied on maturity to the expenses of the funeral of the person on whose death it matures.

In this Act, unless the contrary intention appears:

Aboriginal study assistance scheme: see subsection 5F(1).

accommodation bond: see subsection 5L(1).

accommodation bond balance: see subsection 5L(1).

accommodation charge: see subsection 5L(1).

account means the account maintained by a person with the institution to which is credited money received on deposit by the institution from that person.

acting commissioner: see section 5A.

Acting Deputy President: see section 5A.

Acting President: see section 5A.

actual market exchange rate in relation to a foreign currency, means the on-demand airmail buying rate in relation to that foreign currency available at the Commonwealth Bank of Australia.

actual value: see subsection 5MC(4).

adjusted income: see subsection 5H(1).

adopted child: see subsection 5F(1).

advance payment eligible amount, for a person, means:

if the person is receiving a service pension worked out under subpoint SCH6-A1(2) of Schedule 6—the sum of the following amounts:

the person’s maximum basic rate;

the amount (if any) by which the person’s pension supplement amount exceeds the person’s minimum pension supplement amount; or

otherwise—the result of paragraph (a) worked out as if the person were receiving a service pension worked out under subpoint SCH6-A1(2) of Schedule 6.

aged care resident: see subsection 5NC(5).

allied country: see subsection 5C(1).

allied mariner: see subsection 5C(1).

allied veteran: see subsections 5C(1) and 5R(2).

allotted for duty in an operational area: see subsection 5B(2).

amount of rent paid or payable: see subsections 5N(6) and (7).

approved deposit fund: see subsection 5J(1).

approved exchange trading system: see subsection 5H(11).

Approved Guide to the Assessment of Rates of Veterans’ Pensions: see subsection 29(3).

asset: see subsections 5L(1), (3B), (3BA), (3C) and (3D).

asset-tested income stream (long term): see subsection 5J(1).

asset-tested income stream (short term): see subsection 5J(1).

asset-test exempt income stream: see sections 5JA, 5JB, 5JBA and 5JBB.

ATO small superannuation account: see subsection 5J(1).

Australia, when used in a geographical sense, includes the external Territories for the purposes of Parts III, IIIA, IIIAA and IIIAB, Subdivision E of Division 11 of Part IIIB, sections 52ZO and 58A, Parts IIID, IIIE, VIB, VIIA, VIIAD and VIIC, section 132 and Schedule 6.

Australian mariner: see subsection 5C(1).

Australian resident: see section 5G.

austudy payment has the meaning given by the Social Security Act 1991.

available money: see subsection 5H(1).

average weekly earnings in relation to a lump sum preclusion period: see subsection 5NB(1).

bank includes, but is not limited to, a body corporate that is an ADI (authorised deposit-taking institution) for the purposes of the Banking Act 1959.

blinded in an eye: see subsection 5D(3).

Board has the same meaning as in the MRCA.

board when used in the expression board and lodging: see subsection 5N(1).

British nuclear test defence service: see subsection 68(1).

Chairperson: see subsection 5AB(1).

child: see subsection 5F(1).

child of a veteran or child of a deceased veteran: see section 10.

clean energy bonus under an Act or scheme means any of the following that is provided for by the Act or scheme: a payment known as an energy supplement or a quarterly energy supplement; an increase that is described using the phrase “energy supplement” and affects the rate of another payment that is provided for by the Act or scheme.

a payment known as an energy supplement or a quarterly energy supplement;

an increase that is described using the phrase “energy supplement” and affects the rate of another payment that is provided for by the Act or scheme.

clean energy payment means:

any of the following:

energy supplement under section 62A (for pension under Part II or IV at a rate determined under or by reference to Division 4 of Part II);

energy supplement under section 62B (for pension under Part II or IV at a rate determined under or by reference to subsection 30(1));

quarterly energy supplement for service pension; or

an essential medical equipment payment.

clean energy underlying payment means:

a pension under Part II or IV at a rate determined under or by reference to Division 4 of Part II; or

a pension under Part II or IV at a rate determined under or by reference to subsection 30(1); or

service pension; or

seniors supplement.

combined couple rate of minimum pension supplement: see subsection 5GA(2).

combined couple rate of pension supplement: see subsection 5GA(1).

commencement day in relation to an income stream: see subsection 5J(1).

Commission: see section 5A.

commissioner: see section 5A.

Commonwealth country: see subsection 5C(1).

Commonwealth veteran: see subsection 5C(1).

comparable foreign pension means a payment that is: available from a foreign country; and similar to a service pension, income support supplement, a veteran payment or a social security pension. compensation: see subsection 5NB(2) and section 59O. compensation affected pension: see subsection 5NB(1). compensation part in relation to a lump sum compensation payment: see subsection 5NB(1). compensation payer: see subsection 5NB(1). continuous full-time service: see subsections 5C(1) and 5R(1). Convener: see subsection 5AB(1). councillor: see subsection 5AB(1).

available from a foreign country; and

similar to a service pension, income support supplement, a veteran payment or a social security pension.

compensation: see subsection 5NB(2) and section 59O.

compensation affected pension: see subsection 5NB(1).

compensation part in relation to a lump sum compensation payment: see subsection 5NB(1).

compensation payer: see subsection 5NB(1).

continuous full-time service: see subsections 5C(1) and 5R(1).

Convener: see subsection 5AB(1).

councillor: see subsection 5AB(1).

CSC (short for Commonwealth Superannuation Corporation) has the same meaning as in the Governance of Australian Government Superannuation Schemes Act 2011.

CTPA means the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004.

current figure: see subsection 5NA(1).

daily accommodation contribution: see subsection 5L(1).

daily accommodation payment: see subsection 5L(1).

decision includes a determination and an assessment.

deductible amount in relation to a defined benefit income stream for a year: see subsection 5J(1).

de facto relationship: see section 11A.

defence-caused death: see sections 70 and 71.

defence-caused disease: see sections 70 and 71.

defence-caused injury: see sections 70 and 71.

Defence Force: see subsection 5C(1).

defence force established by a Commonwealth country: see subsection 5C(1).

defence force established by an allied country: see subsections 5C(1) and (3) and 5R(2).

Defence Minister has the meaning given by the Military Rehabilitation and Compensation Act 2004.

defence service: see subsection 68(1).

deferred payment amount in relation to a sale leaseback agreement: see subsections 5MB(6), (7) and (8).

defined benefit income stream: see subsection 5J(1E).

dependant in relation to a veteran (including a veteran who has died): see section 11.

dependent child: see subsections 5F(1) and (2).

deposit money: see subsection 5H(1).

deprived asset: see subsection 5J(2B).

Deputy President: see section 5A.

disability expenses maintenance: see section 5K.

disease: see subsection 5D(1).

disposes of assets: see subsection 5L(10) and section 52E.

disposes of ordinary income: see section 48.

domestic payment: see subsection 5H(3).

domiciled has a meaning affected by section 11B.

earned, derived or received: see subsection 5H(2).

eligible civilian: see subsection 5C(1).

eligible war service: see section 7.

EMEP residence has the meaning given by section 63A.

enemy: see subsection 5C(1).

energy supplement means:

energy supplement payable under section 62A (for pension under Part II or IV at a rate determined under or by reference to Division 4 of Part II); or

energy supplement payable under section 62B (for pension under Part II or IV at a rate determined under or by reference to subsection 30(1)); or

energy supplement added to a person’s maximum basic rate of service pension under the Rate Calculator.

entry contribution in relation to a special resident: see section 52M.

essential medical equipment payment has the meaning given by section 63A.

event that gives rise to a person’s entitlement to compensation: see subsection 5NB(11).

exchange trading system: see subsection 5H(10).

exempt funeral investment has the meaning given by section 5PC.

exempt lump sum: see subsections 5H(12) and (12A).

Family Assistance Act means the A New Tax System (Family Assistance) Act 1999.

family law affected income stream: see section 5JC.

family member: see subsection 5L(1).

family tax benefit: see subsection 5F(1).

financial asset: see subsection 5J(1).

financial institution means a corporation that is an ADI for the purposes of the Banking Act 1959.

financial investment: see subsections 5J(1) and (2C).

fishing operations: see subsection 5L(1).

fishing vessel: see subsection 5C(1).

foreign exchange period means:

the period commencing 20 September and ending on the day before the pension payday that falls closest to the middle of the 6 month period commencing 20 September; and

the period starting from the pension payday referred to in paragraph (a) and ending on 19 March; and

the period commencing 20 March and ending on the day before the pension payday that falls closest to the middle of a 6 month period commencing 20 March; and

the period starting from the pension payday referred to in paragraph (c) and ending on 19 September.

foreign superannuation fund: see subsection 5L(1).

foreign superannuation pension: see subsection 5L(1).

forest operations: see subsection 5L(1).

former refugee: see subsection 5C(1).

friendly society: see subsection 5J(1).

FTB child: see subsection 5F(1).

funeral investment: see subsection 5PC(3).

general rate means the maximum rate per fortnight specified in subsection 22(3).

governing rules in relation to an income stream: see subsection 5J(1).

government-in-exile: see subsection 5C(1).

Government rent: see subsections 5N(1), (4) and (5).

granny flat interest: see subsection 5MA(2).

granny flat resident: see subsection 5MA(3).

hazardous service: see subsection 68(1).

holder in relation to a visa: see subsection 5G(1).

holder of a seniors health card: see subsection 5PB(2).

home equity conversion agreement: see subsections 5H(1) and (7).

illness separated couple: see subsection 5R(5).

immediate family member, of a person, means an individual:

who is a natural parent, adoptive parent or step-parent of the person; or

who is the person’s parent because of subsection 10A(1); or

who is, or was when the person was under 18 years of age, a legal guardian of the person; or

who is a grandparent of the person; or

who is a sibling of the person.

in a care situation: see subsection 5NC(2).

incapacity from a defence-caused disease: see subsection 5D(2).

incapacity from a defence-caused injury: see subsection 5D(2).

incapacity from a war-caused disease: see subsection 5D(2).

incapacity from a war-caused injury: see subsection 5D(2).

incentive allowance has the meaning that was given to that expression by the Social Security Act 1991 as in force immediately before 12 November 1991.

income: see subsection 5H(1).

income amount: see subsection 5H(1).

income stream: see subsections 5J(1) and (1F).

Income Tax Assessment Act means the Income Tax Assessment Act 1936 and the Income Tax Assessment Act 1997.

income year has the meaning given by the Income Tax Assessment Act 1997.

index number: see subsections 5NA(1), (2) and (3).

ineligible property owner: see subsection 5N(1).

in gaol: see subsection 55(4).

initial payment amount in relation to a sale leaseback agreement: see subsections 5MB(4) and (5).

injury: see subsection 5D(1).

in respite care: see subsection 5NC(8).

instalment of parental leave pay: see subsection 5H(1).

insurer who is, under a contract of insurance, liable to indemnify: see subsection 5NB(12).

investment:

in relation to a superannuation fund or approved deposit fund—see subsection 5J(6); or

in relation to an ATO small superannuation account—see subsection 5J(6A).

investor in relation to an ATO small superannuation account: see subsection 5J(1).

joint ownership includes ownership as joint tenants or tenants in common.

life expectancy: see subsection 5J(1).

listed security: see subsection 5J(1).

loan: see subsections 5J(2) and (2A).

lump sum preclusion period: see subsections 59Q(3) to (8).

maintenance: see section 5K.

maintenance income: see section 5K.

managed investment: see subsections 5J(1A), (1B) and (1C).

maximum Part A rate of family tax benefit: see subsection 5F(1).

medical equipment has the meaning given by section 63A.

member: see subsection 5AB(1).

member of a couple: see subsections 5E(2), (3), (4) and (4A) and 5R(3).

member of an ordinary couple with different principal homes: see subsection 5M(2).

member of a Peacekeeping Force: see subsection 68(1).

member of a unit of the Defence Force: see subsections 5C(1) and 5R(1).

member of the Defence Force: see subsections 5C(1) and (2).

member of the Forces: see subsection 68(1).

member of the Interim Forces: see subsection 5C(1).

military invalidity pension income stream: see subsection 5J(1EA).

Military Rehabilitation and Compensation Act Education and Training Scheme means the scheme determined under section 258 of the Military Rehabilitation and Compensation Act 2004.

Military Rehabilitation and Compensation Commission means the Military Rehabilitation and Compensation Commission established under section 361 of the MRCA.

minimum pension supplement amount: see subsection 5GA(3).

MRCA means the Military Rehabilitation and Compensation Act 2004.

MRCA commencement date means the date on which section 3 of the MRCA commences.

NDIS amount has the same meaning as in the National Disability Insurance Scheme Act 2013.

NDIS participant means a participant within the meaning of the National Disability Insurance Scheme Act 2013.

NDIS plan means a plan, for an NDIS participant, within the meaning of the National Disability Insurance Scheme Act 2013.

non-illness separated spouse: see subsection 5E(1).

non-warlike service: see subsection 5C(1).

operational area: see subsection 5B(1).

operational service: see sections 6 to 6F.

ordinary income: see subsection 5H(1) and section 46.

organisation representing veterans means:

an organisation:

whose members include veterans throughout the Commonwealth; and

whose objects include that of representing veterans throughout the Commonwealth; or

an organisation:

whose members include persons throughout the Commonwealth who are receiving or eligible to receive pensions under Part II as dependants of veterans; and

whose objects include that of representing those persons throughout the Commonwealth.

original family law affected income stream: see section 5JC.

parent: see section 10A.

partner: see subsection 5E(1).

partnered: see paragraph 5E(5)(a).

partnered (partner getting benefit): see paragraph 5E(5)(e).

partnered (partner getting neither pension nor benefit): see paragraph 5E(5)(b).

partnered (partner getting pension): see paragraph 5E(5)(d).

partnered (partner getting pension or benefit): see paragraph 5E(5)(c).

peacekeeping service: see subsection 68(1).

pension, in Parts IIIA, IIIAB, IIIB and IIIC, section 122B and Schedule 6, includes income support supplement.

pension age:

in relation to a veteran—has the meaning given by section 5QA; or

in relation to a person other than a veteran—has the meaning given by section 5QB.

Note: The qualifying age for income support supplement is separately provided for (see section 5Q).

pension bonus means pension bonus under Part IIIAB (and does not include pension bonus bereavement payment under Division 11A of that Part).

pension bonus bereavement payment means a pension bonus bereavement payment under Division 11A of Part IIIAB.

pension payday means:

the Thursday falling on 11 July 1991; and

each succeeding alternate Thursday.

Note: Part of an instalment of a pension may be paid on a different day if a determination is in force under subsection 58(3A) or 121(5A) (about weekly payments of pension instalments).

pension period means a period of 2 weeks that: starts 2 days before the beginning of a pension payday; and ends 2 days before the beginning of the next pension payday. pension supplement amount, for a person: whose rate of service pension is worked out under subpoint SCH6-A1(2) or (3) of Schedule 6 or whose rate of veteran payment is worked out under subpoint SCH6-A1(8) or (9) of Schedule 6; or whose rate of service pension is worked out under subpoint SCH6-A1(4) of Schedule 6 and is the provisional rate worked out under that subpoint; means the amount worked out and added under the pension supplement Module of the Rate Calculator. pension supplement basic amount: see subsection 5GA(4). pension year: see subsections 5L(9) and (9A). periodic amount: see subsection 5H(13). periodic payments period: see subsection 5NB(1). period of hostilities: see subsection 5B(1). permanent visa: see subsection 5G(1). personally providing community-based care: see subsection 5NC(4).

starts 2 days before the beginning of a pension payday; and

ends 2 days before the beginning of the next pension payday.

pension supplement amount, for a person:

whose rate of service pension is worked out under subpoint SCH6-A1(2) or (3) of Schedule 6 or whose rate of veteran payment is worked out under subpoint SCH6-A1(8) or (9) of Schedule 6; or

whose rate of service pension is worked out under subpoint SCH6-A1(4) of Schedule 6 and is the provisional rate worked out under that subpoint;

means the amount worked out and added under the pension supplement Module of the Rate Calculator.

pension supplement basic amount: see subsection 5GA(4).

pension year: see subsections 5L(9) and (9A).

periodic amount: see subsection 5H(13).

periodic payments period: see subsection 5NB(1).

period of hostilities: see subsection 5B(1).

permanent visa: see subsection 5G(1).

personally providing community-based care: see subsection 5NC(4).

person with medical needs has the meaning given by section 63A.

physically present in a remote area has the meaning given by subsection (2).

port includes airport.

potential compensation payer: see subsection 5NB(1).

President: see section 5A.

primary income stream: see section 5JC.

primary producer: see subsection 5L(1).

primary production: see subsection 5L(1).

principal beneficiary, of a special disability trust, has the meaning given by subsection 52ZZZWA(1).

principal home: see section 5LA.

prohibited relationship: see subsections 5E(6) and (7).

property owner: see subsection 5L(4).

psychiatric confinement: see subsections 55(5) and (6).

public unit trust: see subsection 5J(1).

purchase price in relation to an income stream: see subsection 5J(1).

qualifying age for a person means:

if the person is a veteran—the pension age for that person; or

if the person is not a veteran—the age that would be the pension age for that person if he or she were a veteran.

qualifying service: see section 7A.

quarterly energy supplement for service pension means the separate payment described in section 62E.

quarterly pension supplement means the separate payment described in subsection 60A(1).

Rate Calculator means the Rate Calculator in Part 2 of Schedule 6.

reasonable security of tenure: see subsection 5LA(10).

receives compensation: see subsection 5NB(10).

receiving community-based care: see subsection 5NC(3).

recoverable amount has the meaning given by subsection 205(8).

refugee: see subsection 5C(4).

refundable deposit: see subsection 5L(1).

refundable deposit balance: see subsection 5L(1).

registered medical practitioner: see subsection 5AB(1).

regular care child: see subsection 5F(1).

reinstated pensioner: see section 11AA.

relates to service: see subsections (1B) and (1C).

relevant number in relation to an income stream: see subsection 5J(1).

remote area means:

those parts of Australia referred to in Part I of Schedule 2 to the Income Tax Assessment Act; and

those parts of Australia referred to in Part II of that Schedule to that Act that are further than 250 kilometres by the shortest practicable surface route from the nearest urban centre with a census population (within the meaning of that Act) of 2,500 or more; and

those places in Australia that, for the purposes of that Act, are treated as if they were in a part of Australia referred to in paragraph (a) or (aa).

remunerative work includes any remunerative activity.

rent: see section 5N.

Repatriation Pharmaceutical Benefits Scheme: see subsection 91(3).

Repatriation Private Patient Principles: see subsection 90A(4).

residential care charge: see subsection 5N(1).

residual capital value in relation to an income stream: see subsections 5J(1) and (9).

respite care couple: see subsection 5R(6).

retirement age:

in relation to a person who is a war widow or a war widower but is not a veteran—means the age that would be the pension age for that person if he or she were a veteran; or

in relation to any other person—means the pension age for that person.

retirement savings account: see subsection 5J(1).

retirement village: see subsections 5M(3) and (4).

retirement village resident: see subsection 5M(5).

return:

in relation to an ATO small superannuation account—see subsection 5J(1); or

in relation to any other investment (including an investment in the nature of superannuation)—see subsection 5J(1).

Review Council: see subsection 5AB(1).

sale leaseback agreement: see subsections 5MB(2) and (3).

sale leaseback home: see subsection 5MB(9).

sale leaseback resident: see subsections 5MB(10) and (11).

secondary income stream: see subsection 5J(1).

Secretary means the Secretary of the Department.

self-employment program means:

the scheme known as the New Enterprise Incentive Scheme; or

the program known as:

the Self-Employment Assistance program; or

if the Self-Employment Assistance program is known by another name—that other name.

Note: For the purposes of subparagraph (b)(ii), if the name of the Self-Employment Assistance program changes, notice must be given of that change (see subsection 23(25) of the Social Security Act).

service pension means:

an age service pension; or

an invalidity service pension; or

a partner service pension.

service pensioner means a person who is receiving a service pension.

sibling, of a person, except for the purposes of sections 123 to 123E, includes a half-brother, half-sister, adoptive brother, adoptive sister, stepbrother or stepsister of the person, but does not include a foster-brother or foster-sister of the person.

Social Security Act means the Social Security Act 1991.

social security benefit has the same meaning as it has in the Social Security Act.

social security law has the same meaning as in the Social Security Act.

social security payment has the same meaning as in the Social Security Act.

social security pension has the same meaning as it has in the Social Security Act.

sound medical-scientific evidence in relation to a particular kind of injury, disease or death: see subsection 5AB(2).

special category visa: see subsection 5G(1).

special disability trust has the meaning given by section 52ZZZW.

special mission: see subsection 5C(1).

special purpose visa: see subsection 5G(1).

special residence: see subsection 5MC(2).

special resident: see subsection 5MC(3).

step-child: see subsection 5F(1).

step-parent: see subsection 5F(1).

superannuation benefit: see subsection 5J(1).

superannuation contributions surcharge: see subsection 5J(1).

superannuation fund: see subsection 5J(1).

tax-exempt pension supplement: see subsections 5GA(5) and (6).

tax file number has the same meaning as in Part VA of the Income Tax Assessment Act 1936.

tax year means:

Note: For the meaning of sibling in sections 123 to 123E, see subsection 123(1).

(a) a year of income (within the meaning of the Income Tax Assessment Act 1936); or

an income year.

temporarily, in relation to a departure or absence from Australia, has a meaning affected by subsection (3) or (4), as the case requires.

tobacco product means:

tobacco (in any form); or

any product that:

contains tobacco as its main or a substantial ingredient; and

(ii) is not included in the Australian Register of Therapeutic Goods kept under the Therapeutic Goods Act 1989.

Treatment Principles: see subsection 90(4).

unit of the Defence Force: see subsection 5C(1).

unlisted public security: see subsection 5J(1).

unrealisable asset: see subsections 5L(11) and (12).

use includes smoke, chew or inhale.

value of a charge or encumbrance on an asset: see subsection 5L(3).

value of a liability: see subsection 5L(3A).

value of a particular asset: see subsection 5L(2).

Vehicle Assistance Scheme: see subsection 105(9).

veteran: see subsection 5C(1).

veteran payment means a veteran payment made under an instrument made under section 45SB.

Veterans’ Children Education Scheme: see subsection 117(7).

Veterans’ Vocational Rehabilitation Scheme: see subsection 115B(7).

war-caused death: see sections 8 and 9A.

war-caused disease: see sections 9 and 9A.

war-caused injury: see sections 9 and 9A.

warlike service: see subsection 5C(1).

war to which this Act applies: see subsection 5B(1).

war widow: see subsection 5E(1).

war widower: see subsection 5E(1).

war widow/war widower—pensioner means:

a person who is receiving a pension under Part II or IV of this Act at a rate determined under or by reference to subsection 30(1); or

a person who is receiving the weekly amount mentioned in paragraph 234(1)(b) of the MRCA (including a reduced weekly amount because of a choice under section 236 of the MRCA) or who has received a lump sum mentioned in subsection 236(5) of the MRCA.

wholly dependent partner: see subsection 5E(1).

widow: see subsection 5E(1).

widower: see subsection 5E(1).

World War 1: see subsections 5B(1) and (3).

World War 2: see subsections 5B(1) and (3).

youth allowance has the meaning given by the Social Security Act 1991.

In Parts VIII, XI and XIA, unless the contrary intention appears:

British nuclear test defence service has the same meaning as in Part IV.

defence service has the same meaning as in Part IV.

hazardous service, in relation to a member of the Forces, has the same meaning as in section 120.

member of a Peacekeeping Force has the same meaning as in Part IV.

member of the Forces has the same meaning as in Part IV.

peacekeeping service has the same meaning as in Part IV.

Definition of relates to service for injuries, diseases and deaths

(1B) For the purposes of this Act, an injury, disease or death relates to service rendered by a person if:

it resulted from an occurrence that happened while the person was rendering that service; or

it arose out of, or was attributable to, that service; or

it resulted from an accident that occurred while the person was travelling, while rendering that service but otherwise than in the course of duty, on a journey:

to a place for the purpose of performing duty; or

away from a place of duty upon having ceased to perform duty; or

in the case of an injury—it resulted from an accident that would not have occurred:

but for the rendering of that service by the person; or

but for changes in the person’s environment consequent upon his or her having rendered that service; or

in the case of a disease—it would not have occurred:

but for the rendering of that service by the person; or

but for changes in the person’s environment consequent upon his or her having rendered that service; or

in the case of a death of a person—it was due to an accident that would not have occurred, or to a disease that would not have been contracted:

but for the rendering of that service by the person; or

but for changes in the person’s environment consequent upon his or her having rendered that service.

Definition of relates to service for aggravations and material contributions

(1C) For the purposes of this Act, an aggravation of, or a material contribution to, an injury or disease relates to service rendered by a person if:

it resulted from an occurrence that happened while the person was rendering that service; or

it arose out of, or was attributable to, that service; or

it resulted from an accident that occurred while the person was travelling, while rendering that service but otherwise than in the course of duty, on a journey:

to a place for the purpose of performing duty; or

away from a place of duty upon having ceased to perform duty; or

in the case of an aggravation of, or a material contribution to, an injury—it resulted from an accident that would not have occurred:

but for the rendering of that service by the person; or

but for changes in the person’s environment consequent upon his or her having rendered that service; or

in the case of an aggravation of, or a material contribution to, a disease—it would not have occurred:

but for the rendering of that service by the person; or

but for changes in the person’s environment consequent upon his or her having rendered that service.

If:

a person’s usual place of residence is in the remote area; and

the person is absent from the remote area for a period;

the person is to be taken to be physically present in the remote area during:

if the period does not exceed 8 weeks—the whole of that period; or

if the period exceeds 8 weeks—the first 8 weeks of that period.

Note: The rule set out in subsection (2) may be modified by a determination under subsection 5R(11) or 5R(12).

In determining whether a person has left Australia temporarily or otherwise, regard is to be had to the following:

the purpose for which the person left Australia;

the intended duration of the person’s absence from Australia;

the frequency of the occasions on which the person has left Australia.

In determining whether a person is absent from Australia temporarily or otherwise, regard is to be had to the following:

the purpose of the absence;

the intended duration of the absence;

the frequency of such absences.

(5) For the purposes of this Act, if under a provision of this Act one person is the child of another person because the person is a child of the other person within the meaning of the Family Law Act 1975, relationships traced to or through the person are to be determined on the basis that the person is the child of the other person.

Note: Paragraph 10(1)(b) and paragraph (b) of the definition of child in section 52ZO are examples of provisions under which one person may be the child of another person because the person is a child of the other person within the meaning of the Family Law Act 1975.

Subsection (5) does not apply for the purposes of determining when a person and his or her partner are within a prohibited relationship under subsection 5E(6). However, this does not prevent expressions used in subsection 5E(6) from having their ordinary meaning.

Where:

a provision of this Act refers to:

the greater or greatest, or the higher or highest; or

the lesser or least, or the lower or lowest;

of 2 or more amounts; and

the amounts are equal;

the provision is taken to refer to one only of the amounts.

Where:

a provision of this Act refers to the greatest or highest of 3 or more amounts; and

2 or more (but not all) of the amounts are equal and exceed the other amount or other amounts;

the provision is taken to refer to one only of those equal amounts.

Where:

a provision of this Act refers to the least or lowest of 3 or more amounts; and

2 or more (but not all) of the amounts are equal and are less than the other amount or other amounts;

the provision is taken to refer to one only of those equal amounts.

This section deals with the pension age for veterans.

Men

(2) A man reaches pension age when he turns 60 years.

Women

(3) A woman born before 1 July 1940 reaches pension age when she turns 55.

(4) A woman born within the period specified in column 2 of an item in the following Table reaches pension age when she turns the age specified in column 3 of that item.

(5) A woman born on or after 1 January 1954 reaches pension age when she turns 60.

This section deals with the pension age for persons other than veterans.

Men

(2) A man born during the period specified in column 2 of an item in the following table reaches pension age when he turns the age specified in column 3 of that item.

Women

(3) A woman born before 1 July 1935 reaches pension age when she turns 60 years.

(4) A woman born within the period specified in column 2 of an item in the following Table reaches pension age when she turns the age specified in column 3 of that item.

(5) A woman born during the period specified in column 2 of an item in the following table reaches pension age when she turns the age specified in column 3 of that item.

Continuous full-time service determination; member of unit of Defence Force determination

(1) The Minister may, by notice in writing published in the Gazette, make, in respect of a person, or of persons included in a class of persons, specified in the notice, all or any of the following determinations:

(a) a determination that this Act, or specified provisions of this Act, are to apply to and in relation to the person, or a person included in that class of persons, as if he or she was, while he or she was rendering service of a kind specified in the notice (in this subsection referred to as relevant service), a member of the Defence Force who was rendering continuous full-time service;

a determination that this Act, or specified provisions of this Act, are to apply to and in relation to the person (being a member of the Defence Force), or a person included in that class of persons (being members of the Defence Force), as if he or she was, while he or she was rendering relevant service, rendering continuous full-time service;

a determination that this Act, or specified provisions of this Act, are to apply to and in relation to the person, or a person included in that class of persons, as if he or she was, while he or she was rendering relevant service, a member of a specified unit of the Defence Force;

and, if the Minister does so, this Act applies, or the specified provisions of this Act apply, as the case may be, accordingly.

Allied veteran determination

Note: For continuous full-time service and member of a unit of the Defence Force see subsection 5C(1).

If a person who is a claimant for an age service pension or an invalidity service pension satisfies the Commission:

that the person had been appointed or enlisted as a member of the forces or services of:

(i) an allied country, being forces or services of a kind referred to in the definition of defence force established by an allied country; or

the government-in-exile of an allied country, being forces or services of a kind referred to in subsection 5C(3); and

that those forces or services were raised and operated in such a manner that the members of those forces and services:

were formally appointed to, or enlisted in, those forces or services; and

were subject to the rules and conventions of warfare; and

that the person was not required, as such a member, to wear a uniform or insignia distinguishing the person as a member of those forces or services or to carry arms at all or to carry arms openly; and

that it would have been unreasonable, having regard to the conditions existing, at the time the person served in those forces or services, in the parts of that country in which the person so could serve, for the person to have been required to wear a uniform or insignia or to carry arms or to carry arms openly;

the Commission must determine that the person is, for the purposes of the definition of allied veteran in subsection 5C(1) to be treated as a person who has been appointed or enlisted as a member of the defence force established by that allied country or that government-in-exile.

Person may be treated as not being a member of a couple

The Commission may determine, for any special reason, that a person who is a member of a couple is not to be treated as a member of a couple for the purposes of this Act.

Note: For member of a couple see subsection 5E(2).

The determination must be in writing.

Illness separated couple determination

If the Commission is satisfied that:

2 people are members of a couple; and

they are unable to live together in their home as a result of the illness or infirmity of either or both of them; and

because of that inability to live together, their living expenses are, or are likely to be greater than they would otherwise be; and

that inability is likely to continue indefinitely;

the Commission may make a written determination that the 2 people are members of an illness separated couple for the purposes of this Act.

Respite care couple determination

If the Commission is satisfied that:

2 people are members of a couple; and

one of the members of the couple is in respite care; and

the member who is in respite care has remained, or is likely to remain, in that care for at least 14 consecutive days;

the Commission may make a written determination that the 2 people are members of a respite care couple for the purposes of this Act.

Note: For in respite care, see subsection 5NC(8).

A determination under subsection (6) takes effect from the day specified by the Commission in the determination, being a day not earlier than 3 months before the Commission is notified that the person is in respite care.

Remote area determination—current or future absence from remote area

If the Commission is satisfied that:

a person’s age or invalidity service pension, income support supplement or veteran payment includes an amount of remote area allowance; and

the person’s remote area allowance includes an amount for an FTB child or a regular care child; and

the absence is, or is likely to be, longer than 8 weeks; and

the absence is due to special circumstances (for example, the person’s medical treatment or the person’s attendance at a rehabilitation or training course);

the Commission may make a written determination that, despite that absence, the person’s rate of pension, income support supplement or veteran payment continues to include remote area allowance for the period specified in the determination while the person has an FTB child, or a regular care child, (as the case requires).

Remote area determination—past absence from remote area

Note 1: For an FTB child and a regular care child see subsection 5F(1).

Note 2: A person whose absence from a remote area is longer than 8 weeks would not normally continue to be entitled to remote area allowance (see subsection 5Q(2)).

If the Commission is satisfied that, in relation to a period:

a person is receiving an age or invalidity service pension, income support supplement or a veteran payment; and

the person’s usual place of residence is in a remote area; and

because the person is absent from the remote area for longer than 8 weeks, the person’s rate of service pension, income support supplement or veteran payment ceases to include an amount by way of remote area allowance; and

immediately before the person’s rate ceases to include remote area allowance, the remote area allowance includes an amount for an FTB child or a regular care child;

the Commission may make a written determination that, despite that absence, the person’s rate of pension, income support supplement or veteran payment continues to include remote area allowance for the period specified in the determination while the person has an FTB child, or a regular care child, (as the case requires).

Note 1: For an FTB child and a regular care child see subsection 5F(1).

Note 2: A person whose absence from a remote area is longer than 8 weeks would not normally continue to be entitled to remote area allowance (see subsection 5Q(2)).

The period specified by the Commission in a determination under subsection (12) must not commence earlier than 3 months before the Commission is notified that the person is absent from the remote area.

Sale leaseback agreement determination

The Commission may determine that an agreement is a sale leaseback agreement if the Commission is satisfied that the agreement is substantially similar in its effect to an agreement referred to in subsection 5MB(2).

The determination must be in writing.

This section regulates the lodgment of all claims, applications, requests or other documents under this Act.

Note: So far as concerns the lodgment of documents with the Repatriation Medical Authority and the Specialist Medical Review Council, these matters are dealt with in Parts XIA and XIB respectively.

For the purposes of this Act, a claim, application, request or other document, other than a claim, application, request or other document that is approved by the Commission for electronic lodgment and that is transmitted electronically:

is taken to have been lodged at an office of the Department in Australia only if the claim, application, request or other document is:

lodged at a place approved by the Commission for the purposes of this subsection; or

delivered to a person approved by the Commission for the purposes of this subsection; and

is taken to have been so lodged on the day on which it is received at that place or delivered to that person.

For the purposes of this Act, a claim, application, request or other document that is approved by the Commission for electronic lodgment and that is transmitted electronically:

is taken to have been lodged at an office of the Department in Australia only if the claim, application, request or document is transmitted electronically:

in a manner approved by the Commission for the purposes of this subsection; and

to an electronic address approved by the Commission for the purposes of this subsection;

in relation to claims, applications, requests or documents of that kind; and

is taken to have been so lodged on the day on which it is so received at that electronic address.

Claims, applications, requests and other documents transmitted electronically other than in a manner approved by the Commission or to an electronic address other than an electronic address approved by the Commission are not to be treated as having been validly lodged.

The Commission may approve a place within or outside Australia for the purposes of subparagraph (2)(a)(i).

For the purposes of this Act, a claim, application, request or other like document is taken to have been made on the day on which, under subsection (2) or (3), it is taken to have been lodged at an office of the Department in Australia.

For the purposes of this Act, a notice or like document is taken to have been given on the day on which, under subsection (2) or (3), it is taken to have been lodged at an office of the Department in Australia.

If any provision of this Act requires any material to be lodged in support of a claim, application, request or other document, that supporting material:

unless paragraph (b) applies—may be lodged in accordance with this section in the same manner as the claim, application, request or other document to which it relates; and

if the supporting material is not appropriate to be lodged in the same manner as the claim, application, request or other document to which it relates—may be lodged in such other manner contemplated by this section as the Commission approves.

For the purposes of this Act, a Note is taken to be part of:

if the Note immediately follows a section that does not contain subsections—the section; or

if the Note immediately follows a subsection—the subsection; or

if the Note immediately follows a point in a Rate Calculator—the point; or

if the Note immediately follows a Step in a Method statement and is aligned with the text of the Step—the Step; or

if the Note immediately follows a Table—the Table; or

if the Note immediately follows a paragraph and is aligned with the text of the paragraph—the paragraph.

Sections 6A to 6F deal with operational service as set out in the following table:

Subject to subsection (3), a person referred to in column 2 of an item in the following table is taken to have been rendering operational service during any period during which the person was rendering continuous full-time service of a kind referred to in column 3 of that item.

Note: Section 11B may affect a person’s domicile immediately before appointment or enlistment.

A person referred to in column 2 of an item in the following table is taken to have been rendering operational service during the period, or at the time, specified in column 3 of that item.

Any continuous full-time service that was rendered during World War 2 by a member of the Defence Force (other than a member of the Interim Forces) on or after the cut off date for the member is not taken to be operational service.

(4) For the purposes of subsection (3), the cut off date for a member of the Defence Force is the date applicable to the member in accordance with the following table:

A person is taken to have been rendering operational service during:

any period of employment outside Australia as an Australian mariner on a ship; or

any period of employment within Australia as an Australian mariner on a ship if that period of employment ended immediately before, or started immediately after, the period of employment referred to in paragraph (a).

A person who, while employed within Australia as an Australian mariner on a ship, was injured, or contracted a disease, as a result of enemy action is taken to have been rendering operational service at the time of the event as a result of which the person was injured or contracted the disease.

A person who was employed within Australia as an Australian mariner on a ship in such circumstances that the employment should, in the opinion of the Commission, be treated as employment in actual combat against the enemy is taken to have been rendering operational service while the person was so employed.

Without limiting subsection (1), a person is taken to have been employed outside Australia as an Australian mariner on a ship in each of the following circumstances:

at any time when the person was at a place outside Australia on leave from the ship while the ship was at a port outside Australia;

at any time when the person was outside Australia while on his or her way to take up employment as an Australian mariner on a ship;

while the person was awaiting return to Australia from employment as an Australian mariner on a ship;

while the person was returning to Australia from employment as an Australian mariner on a ship.

For the purposes of this section, if a person was employed as an Australian mariner on a ship undertaking a voyage for the purpose of going from a place within Australia to another place within Australia, the person is taken to have been employed within Australia during the whole of the voyage.

In this section:

Australia does not include an external territory.

Subject to this section, a member of the Defence Force who has rendered continuous full-time service in an operational area as:

a member who was allotted for duty in that area; or

a member of a unit of the Defence Force that was allotted for duty in that area;

is taken to have been rendering operational service in the operational area while the member was so rendering continuous full-time service.

A member of the naval, military or air forces of a Commonwealth country or of an allied country who:

was domiciled in Australia or an external Territory immediately before his or her appointment or enlistment in those forces; and

has rendered continuous full-time service in an operational area;

is taken to have been rendering operational service in the operational area while the member was so rendering continuous full-time service.

Note: Section 11B may affect a person’s domicile immediately before appointment or enlistment.

For the purposes of subsection (1), a member of the Defence Force is, subject to subsection (4), taken to have rendered continuous full-time service in an operational area during the period commencing on:

(a) if the member was in Australia on the day (relevant day) from which the member, or the unit of the member, was allotted for duty in that area—on the day on which the member left the last port of call in Australia for that service; or

if the member was outside Australia on the relevant day—on that day;

and ending at the end of:

if the member, or the unit of the member, ceased to be allotted for duty—the day from which the member, or the unit, ceased to be allotted for duty; or

if the member, or the unit of the member, was assigned for duty from the operational area to another area outside Australia (not being an operational area)—the day from which the member, or the unit, was assigned to that other area, or the day on which the member, or the unit, arrived at that other area, whichever is the later; or

in any other case—the day on which the member arrived at the first port of call in Australia on returning from operational service.

If, while rendering continuous full-time service in an operational area, a member of the Defence Force has:

returned to Australia in accordance with the Rest and Recuperation arrangements of the naval, military or air forces; or

returned to Australia on emergency or other leave granted on compassionate grounds; or

returned to Australia on duty; or

returned to Australia for the purpose of receiving medical or surgical treatment as directed by the medical authorities of the Defence Force;

only so much of the period of service of the member within Australia after his or her return and while the member:

continued to be allotted for duty in an operational area; or

continued to be a member of a unit of the Defence Force allotted for duty in an operational area;

as does not exceed 14 days is taken, for the purposes of subsection (1), to be a period when the member was rendering continuous full-time service in the operational area.

This section applies to a member of the Defence Force who, or a member of a unit of the Defence Force that:

was assigned for service:

in Singapore at any time during the period from and including 29 June 1950 to and including 31 August 1957; or

in Japan at any time during the period from and including 28 April 1952 to and including 19 April 1956; or

in North East Thailand (including Ubon) at any time during the period from and including 28 July 1962 to and including 24 June 1965; or

in North East Thailand (not including Ubon) at any time during the period from and including 31 May 1962 to and including 27 July 1962; or

was, at any time during the period from and including 1 August 1960 and including 27 May 1963, in the area comprising the territory of Singapore and the country then known as the Federation of Malaya;

but so applies only if the member, or the unit of the member, is included in a written instrument issued by the Defence Force for use by the Commission in determining a person’s eligibility for entitlements under this Act.

Note: Service in Ubon in Thailand between 31 May 1962 and 27 July 1962 is taken to be operational service because of section 6C and item 3A in Schedule 2.

A person to whom this section applies is taken to have been rendering operational service during any period during which he or she was rendering continuous full-time service as:

a member of the Defence Force; or

a member of a unit of the Defence Force;

while the person was in the area described in paragraph (1)(a) or attached to the Far East Strategic Reserve (as the case may be).

For the purposes of subsection (2), the operational service of a person to whom this section applies:

is taken to have started:

(i) if the person was in Australia on the day (relevant day) from which his or her unit was assigned for service as described in paragraph (1)(a) or attached to the Far East Strategic Reserve (as the case may be)—on the day on which the member left the last port of call in Australia for that service; or

if the person was outside Australia on the relevant day—on that day; and

is taken to have ended:

if the member was assigned for service in another country or area outside Australia (not being an operational area)—the day from which the member was assigned to that other country or area, or the day on which the member arrived at that other area, whichever is the later; or

in any other case—the day on which the member arrived at the first port of call in Australia on returning from operational service.

A member of the Defence Force is taken to have been rendering operational service during any period of service in respect of which the member has been awarded, or has become eligible to be awarded, the Naval General Service Medal or the General Service Medal (Army and Royal Air Force) with the Minesweeping 1945-51 Clasp, the Bomb-Mine Clearance 1945-53 Clasp, the Bomb and Mine Clearance 1945-49 Clasp or the Bomb and Mine Clearance 1945-56 Clasp.

A member of the Defence Force for whom the following are satisfied:

the member has rendered continuous full-time service on a submarine for a period that started on or after 1 January 1978 and ended on or before the end of 12 May 1997;

(b) the member has rendered continuous full-time service on submarine special operations (the special service) at any time in the period beginning on 1 January 1978 and ending at the end of 12 May 1997;

the member:

has been awarded the Australian Service Medal with Clasp “SPECIAL OPS” for the special service; or

has become eligible for that award for the special service; or

would have been eligible for that award for the special service if the member had not already been awarded it for other service;

is taken to have been rendering operational service during each period covered by paragraph (a).

A member of the Defence Force who was assigned for service:

in the demilitarised zone between North Korea and South Korea after 18 April 1956; or

on HMA Ship Vampire or Quickmatch in Vietnam during the period from and including 25 January 1962 to and including 29 January 1962;

is taken to have been rendering operational service while he or she was so rendering continuous full-time service in that zone or in Vietnam (as the case may be) during the period in which he or she was so assigned for service.

A member of the Defence Force is taken to have been rendering operational service during any period of warlike service or non-warlike service of the member.

Subject to subsection (2), for the purposes of this Act:

a person who has rendered operational service shall be taken to have been rendering eligible war service while the person was rendering operational service; and

a person who has rendered continuous full-time service (not being operational service) as a member of the Defence Force during World War 1 shall be taken to have been rendering eligible war service while the person was so rendering continuous full-time service; and

a person who has rendered continuous full-time service (not being operational service) as a member of the Defence Force during World War 2, being service that commenced before 1 July 1947, shall be taken to have been rendering eligible war service while the person was so rendering continuous full-time service; and

a person who rendered continuous full-time service (not being operational service) as a member of the Interim Forces during World War 2 on or after 1 July 1947 shall be taken to have been rendering eligible war service while the person was so rendering continuous full-time service; and

a person who was employed on a ship as an Australian mariner is taken to have been rendering eligible war service:

if part of that employment was operational service—for the part of that employment that was not operational service; or

in any other case—while the person was so employed.

Note 1: For World War 1 and World War 2 see subsection 5B(1).

Note 2: For operational service see sections 6 to 6F.

Note 3: For Australian mariner, continuous full-time service, member of the Defence Force and member of the Interim Forces see subsection 5C(1).

Note 4: Subsections (3) and (4) contain information that is relevant to paragraph (e).

A person who rendered continuous full-time service in the Defence Force during World War 2:

if the person was appointed or enlisted for war service in any part of the Defence Force that was raised during World War 2 for war service or solely for service in time of that war or during that time and a definite time thereafter—on or after 1 July 1951;

if the person was appointed or enlisted in the Citizen Forces and was called up for continuous full-time service for the duration of, or directly in connection with, World War 2—on or after 1 July 1951; or

if the person was not appointed or enlisted as set out in paragraph (a) or (b)—on or after 3 January 1949;

shall not be taken, by virtue of paragraph (1)(c), to have been rendering eligible war service while the person was so rendering continuous full-time service.

Without limiting paragraph (1)(e), a person is taken to be employed on a ship as an Australian mariner while the person was at a place (being a place that is in Australia but is not on land in Australia) in the course of proceeding to employment on a ship as an Australian mariner.

(4) For the purposes of subsection (3), Australia does not include an external territory.

For the purposes of Parts III and VA and sections 85 and 118V, a person has rendered qualifying service:

if the person has, as a member of the Defence Force:

(i) rendered service, during a period of hostilities specified in paragraph (a) or (b) of the definition of period of hostilities in subsection 5B(1), at sea, in the field or in the air in naval, military or aerial operations against the enemy in an area, or on an aircraft or ship of war, at a time when the person incurred danger from hostile forces of the enemy in that area or on that aircraft or ship; or

rendered service after 29 October 1945 in respect of which the person has been awarded, or has become eligible to be awarded, the Naval General Service Medal or the General Service Medal (Army and Royal Air Force) with the Minesweeping 1945-51 Clasp, the Bomb-Mine Clearance 1945-53 Clasp, the Bomb and Mine Clearance 1945-49 Clasp or the Bomb and Mine Clearance 1945-56 Clasp; or

rendered service outside Australia in an area described in column 1 of Schedule 2 during the period specified in column 2 of that Schedule opposite to that description, as a member of a unit of the Defence Force that was allotted for duty, or as a person who was allotted for duty, in that area; or

rendered warlike service; or

rendered continuous full-time service on submarine special operations, at some time in the period starting on 1 January 1978 and ending at the end of 12 May 1997, for which the person has been awarded, or has become eligible to be awarded, the Australian Service Medal with Clasp “SPECIAL OPS”; or

rendered continuous full-time service on submarine special operations, at some time in the period starting on 1 January 1978 and ending at the end of 12 May 1997, for which the person would have been eligible to be awarded the Australian Service Medal with Clasp “SPECIAL OPS” if the person had not already been awarded it for other service; or

if, during a period of hostilities, the person has, as a member of the defence force established by a Commonwealth country, rendered, in connection with war or war-like operations in which the Naval, Military or Air Forces of Australia were engaged:

service, in an area outside that country, at a time when the person incurred danger from hostile forces of the enemy in that area; or

service within that country, being service in respect of which the person has been awarded, or has become eligible to be awarded, a campaign medal; or

if the person is an allied veteran who, during a period of hostilities, has, as a member of the defence force established by an allied country, rendered, in connection with a war, or war-like operations, in which the Naval, Military or Air Forces of Australia were engaged, service in an area within or outside the country in which the person enlisted in those forces, being service in respect of which the person incurred danger from hostile forces of the enemy; or

(d) if the person was, during a period of hostilities specified in paragraph (a) or (b) of the definition of period of hostilities in subsection 5B(1), employed by the Commonwealth on a special mission outside Australia, and, in the course of carrying out that mission, incurred danger from hostile forces of the enemy; or

(e) if the person is an eligible civilian period of hostilities in subsection 5B(1), detained by the enemy; orwithin the meaning of subsection 5C(1) who was, during a period of hostilities specified in paragraph (b) of the definition of

if the person is a person in respect of whom a pension is payable in pursuance of subsection 13(6); or

if the person is an Australian mariner as defined by subsection 5C(1) who, in the course of:

any service rendered by the person in employment of a kind specified in paragraph (a), (b), (c), (e) or (g) of that definition; or

any service rendered by the person as a pilot referred to in paragraph (d) of that definition; or

any service rendered by the person as a member or employee of the Commonwealth Salvage Board;

was on a ship or in an area at a time when the person incurred danger from hostile forces of the enemy on the ship or in the area, as the case may be; or

(h) if the person is an allied mariner who, in the course of any service rendered by the person in employment of a kind to which paragraphs (a) and (b) of the definition of allied mariner in subsection 5C(1) applies:

was detained by the enemy; or

was in an area service in which would, if the person had been a member of the Defence Force, have entitled the person to the award of a campaign medal and incurred, while he or she was in that area, danger from hostile forces of the enemy.

Note 1: For period of hostilities see subsection 5B(1) and for allotted for duty in an operational area see subsection 5B(2).

Note 2: For allied mariner, allied veteran, Australian mariner, defence force established by a Commonwealth country, defence force established by an allied country, eligible civilian, enemy, member of a unit of the Defence Force, member of the Defence Force and special mission see subsection 5C(1).

In subparagraphs (1)(b)(ii) and (1)(h)(ii):

campaign medal, in relation to service during the period of World War 2 from its commencement to and including 29 October 1945, means:

any of the following medals:

1939-45 Star;

Atlantic Star;

Air Crew Europe Star;

Africa Star;

Pacific Star;

Burma Star;

Italy Star;

France and Germany Star; or

any other medal declared by the regulations to be a campaign medal in relation to service during that period.

Subject to this section and section 9A, for the purposes of this Act, the death of a veteran shall be taken to have been war-caused if:

the death of the veteran resulted from an occurrence that happened while the veteran was rendering operational service;

the death of the veteran arose out of, or was attributable to, any eligible war service rendered by the veteran;

the death of the veteran resulted from an accident that occurred while the veteran was travelling, while rendering eligible war service but otherwise than in the course of duty, on a journey to a place for the purpose of performing duty or away from a place of duty upon having ceased to perform duty;

in the opinion of the Commission, the death of the veteran was due to an accident that would not have occurred, or to a disease that would not have been contracted, but for his or her having rendered eligible war service or but for changes in the veteran’s environment consequent upon his or her having rendered eligible war service; or

the injury or disease from which the veteran died:

was suffered or contracted while the veteran was rendering eligible war service, but did not arise out of that service; or

was suffered or contracted before the commencement of the period, or last period, of eligible war service rendered by the veteran, but not while the veteran was rendering eligible war service;

and, in the opinion of the Commission, the injury or disease was contributed to in a material degree by, or was aggravated by, any eligible war service rendered by the veteran, being service rendered after the veteran suffered that injury or contracted that disease; or

the injury or disease from which the veteran died is an injury or disease that has been determined in accordance with section 9 to have been a war-caused injury or a war-caused disease, as the case may be;

Note: The effect of paragraph (f) is that, if the veteran has died from an injury or disease that has already been determined by the Commission to be war-caused, the death is to be taken to have been war-caused. Accordingly the Commission is not required to relate the death to eligible war service rendered by the veteran and sections 120A and 120B do not apply.

but not otherwise.

Paragraph (1)(a), (b), (c) or (d) does not apply to the death of a veteran if the death:

resulted from the veteran’s serious default or wilful act; or

arose from:

a serious breach of discipline committed by the veteran; or

an occurrence that happened while the veteran was committing a serious breach of discipline.

Subsection (1) does not apply to the death of a veteran if the death of the veteran resulted from the serious default or wilful act of the veteran that happened after the veteran ceased, or last ceased, to render eligible war service.

Paragraph (1)(c) does not apply:

to an accident that occurred while the veteran was travelling on a journey from the veteran’s place of duty in a case where the veteran had delayed commencing the journey for a substantial time after he or she ceased to perform duty at that place (otherwise than for a reason connected with the performance of the veteran’s duties) unless, in the circumstances of the particular case, the nature of the risk of sustaining an injury, or contracting a disease, was not substantially changed, and the extent of that risk was not substantially increased, by that delay or by anything that happened during that delay;

to an accident that occurred while the veteran was travelling on a journey, or a part of a journey, by a route that was not reasonably direct having regard to the means of transport used unless:

the journey, or that part of the journey, was made by that route for a reason connected with the performance of the veteran’s duties; or

in the circumstances of the particular case, the nature of the risk of sustaining an injury, or contracting a disease, was not substantially changed, and the extent of that risk was not substantially increased, by reason that the journey, or that part of the journey, was made by that route; or

to an accident that occurred while the veteran was travelling on a part of a journey made after a substantial interruption of the journey, being an interruption made for a reason unconnected with the performance of the veteran’s duties, unless, in the circumstances of the particular case, the nature of the risk referred to in subparagraph (b)(ii) was not substantially changed, and the extent of that risk was not substantially increased, by reason of that interruption.

Paragraph (1)(e) does not apply to the death of a veteran from an injury or disease, being injury or disease that has been contributed to in a material degree by, or aggravated by, eligible war service rendered by the veteran, unless the veteran has rendered operational service or the period of the eligible war service rendered by the veteran that so contributed to the injury or disease, or by which the injury or disease was aggravated, was 6 months or longer.

Despite subsection (1), the death of a veteran is taken not to have been war-caused if the veteran’s death is related to the veteran’s eligible war service only because:

in the case of a veteran who had not used tobacco products before 1 January 1998—the veteran used tobacco products after 31 December 1997; or

in the case of a veteran who had used tobacco products before 1 January 1998—the veteran increased his or her use of tobacco products after 31 December 1997.

Subject to this section and section 9A, for the purposes of this Act, an injury suffered by a veteran shall be taken to be a war-caused injury, or a disease contracted by a veteran shall be taken to be a war-caused disease, if:

the injury suffered, or disease contracted, by the veteran resulted from an occurrence that happened while the veteran was rendering operational service;

the injury suffered, or disease contracted, by the veteran arose out of, or was attributable to, any eligible war service rendered by the veteran;

the injury suffered, or disease contracted, by the veteran resulted from an accident that occurred while the veteran was travelling, while rendering eligible war service but otherwise than in the course of duty, on a journey to a place for the purpose of performing duty or away from a place of duty upon having ceased to perform duty;

the injury suffered, or disease contracted, by the veteran is to be deemed by subsection (2) to be a war-caused injury or a war-caused disease;

the injury suffered, or disease contracted, by the veteran:

was suffered or contracted while the veteran was rendering eligible war service, but did not arise out of that service; or

was suffered or contracted before the commencement of the period, or last period, of eligible war service rendered by the veteran, but not while the veteran was rendering eligible war service;

and, in the opinion of the Commission, the injury or disease was contributed to in a material degree by, or was aggravated by, any eligible war service rendered by the veteran, being service rendered after the veteran suffered that injury or contracted that disease;

but not otherwise.

For the purposes of this Act, where any incapacity of a veteran was, in the opinion of the Commission, due to an accident that would not have occurred, or due to a disease that would not have been contracted, but for his or her having rendered eligible war service or but for changes in the veteran’s environment consequent upon his or her having rendered eligible war service:

if that incapacity was due to an accident—that incapacity shall be deemed to have arisen out of the injury suffered by the veteran as a result of the accident and the injury so suffered shall be deemed to be a war-caused injury suffered by the veteran; or

if the incapacity was due to a disease—the incapacity shall be deemed to have arisen out of that disease and that disease shall be deemed to be a war-caused disease contracted by the veteran.

Paragraph (1)(a), (b), (c) or (d) does not apply to an injury suffered, or disease contracted, by a veteran if the injury or disease:

resulted from the veteran’s serious default or wilful act; or

arose from:

a serious breach of discipline committed by the veteran; or

an occurrence that happened while the veteran was committing a serious breach of discipline.

Subsections (1) and (2) do not apply to an injury suffered, or disease contracted, by a veteran if the incapacity of the veteran from that injury or disease resulted from the serious default or wilful act of the veteran that happened after the veteran ceased, or last ceased, to render eligible war service.

Paragraph (1)(c) does not apply:

to an accident that occurred while the veteran was travelling on a journey from the veteran’s place of work in a case where the veteran had delayed commencing the journey for a substantial period after he or she ceased to perform duty at that place (otherwise than for a reason connected with the performance of the veteran’s duties) unless, in the circumstances of the particular case, the nature of the risk of sustaining an injury, or contracting a disease, was not substantially changed, and the extent of that risk was not substantially increased, by that delay or by anything that happened during that delay;

to an accident that occurred while the veteran was travelling on a journey, or a part of a journey, by a route that was not reasonably direct having regard to the means of transport used, unless:

the journey, or that part of the journey, was made by that route for a reason connected with the performance of the veteran’s duty; or

in the circumstances of the particular case, the nature of the risk of sustaining an injury, or contracting a disease, was not substantially changed, and the extent of the risk was not substantially increased, by reason that the journey, or that part of the journey, was made by that route; or

to an accident that occurred while the veteran was travelling on a part of a journey made after a substantial interruption of the journey, being an interruption made for a reason unconnected with the performance of the veteran’s duties, unless, in the circumstances of the particular case, the nature of the risk referred to in subparagraph (b)(ii) was not substantially changed, and the extent of that risk was not substantially increased, by reason of that interruption.

Paragraph (1)(e) does not apply to an injury suffered, or disease contracted, by a veteran (being an injury or disease that has been contributed to in a material degree by, or aggravated by, eligible war service rendered by the veteran):

if the aggravation of the injury or disease:

resulted from the veteran’s serious default or wilful act;

arose from a serious breach of discipline committed by the veteran; or

unless the veteran had rendered operational service or the period of eligible war service rendered by the veteran that so contributed to the injury or disease, or by which the injury or disease was aggravated, was 6 months or longer.

Despite subsection (1), the injury or disease of a veteran is taken not to have been war-caused if that injury or disease is related to the veteran’s eligible war service only because:

in the case of a veteran who had not used tobacco products before 1 January 1998—the veteran used tobacco products after 31 December 1997; or

in the case of a veteran who had used tobacco products before 1 January 1998—the veteran increased his or her use of tobacco products after 31 December 1997.

A veteran’s injury, disease or death is taken not to be war-caused if:

the injury is sustained, the disease is contracted, or the death occurs, on or after the MRCA commencement date; and

the injury, disease or death either:

relates to service rendered by the person on or after that date; or

relates to service rendered by the person before, and on or after, that date.

Note: After the MRCA commencement date, compensation is provided under the MRCA (instead of this Act) for such injuries, diseases and deaths.

To avoid doubt, service is rendered before, and on or after, the MRCA commencement date whether the service spans the commencement date or is rendered during separate periods before and on or after that date.

In this Act, a reference to a child of a veteran or of a deceased veteran is a reference to:

a child of the veteran or an adopted child of the veteran; or

(b) a child who is a child of the veteran within the meaning of the Family Law Act 1975; or

any other child who is, or was immediately before the death of the veteran, wholly or substantially dependent on the veteran.

For the purposes of subsection (1), where a veteran is, under a law of the Commonwealth or of a State or Territory, liable to maintain a child, the child shall be deemed to be wholly or substantially dependent on that veteran.

In this section, a reference to a veteran shall be read as including a reference to a person who is a member of the Forces, or a member of a Peacekeeping Force, as defined by subsection 68(1).

In this Act, unless the contrary intention appears, a reference to a child of a person (not being a person who is a veteran or a member referred to in subsection (4)) shall be read as a reference to a person who would, in accordance with subsection (1), be a child of that person if that person were a veteran.

(1) Without limiting who is a parent of anyone for the purposes of this Act, a person is the parent of another person (other than an adopted child) if the other person is a child of the person within the meaning of the Family Law Act 1975.

(2) For the purposes of this Act, parent of a person who is an adopted child means an adoptive parent of the person.

In this Act, unless the contrary intention appears:

dependant, in relation to a veteran (including a veteran who has died), means:

the partner; or

a non-illness separated spouse; or

a widow or widower (other than a widow or a widower who marries, re-marries or enters into a de facto relationship); or

a reinstated pensioner; or

a child;

of the veteran.

Note 1: A veteran may have more than one dependant of the kind referred to in paragraphs (a) to (d) at the same time.

Note 2: For the meaning of reinstated pensioner see section 11AA.

Note 3: Subsection (4) affects the meaning of widow in paragraph (c).

Note 4: Section 11A affects formation of an opinion as to whether 2 people are living together in a de facto relationship.

Without limiting the generality of subsection (1) in its application to a veteran (including a veteran who has died) who is, or was:

a descendant of an indigenous inhabitant of the Torres Strait Islands; or

a male aboriginal native of Australia;

who served during World War 2 in the Defence Force at a rate of pay less than the minimum rate of pay that was prescribed as payable to a male member of the Australian Military Forces and whose services have been terminated by discharge or death, a person whom the Commission, by instrument in writing, determines to be, for the purposes of this section, a person who is dependent on the veteran is a dependant of the veteran.

In subsection (1), a reference to a veteran shall be read as including a reference to a person who is a member of the Forces, or a member of a Peacekeeping Force, as defined by subsection 68(1).

(4) In paragraph (1)(c), widow does not include a reinstated pensioner.

Note: For the meaning of reinstated pensioner see section 11AA.

In this Act, unless the contrary intention appears:

reinstated pensioner means a person who the Commission has determined under section 13AG to be a reinstated pensioner.

In forming an opinion for the purposes of this Act whether 2 people are living together in a de facto relationship, regard is to be had to all the circumstances of the relationship including, in particular, the following matters:

the financial aspects of the relationship, including:

any joint ownership of real estate or other major assets and any joint liabilities; and

any significant pooling of financial resources especially in relation to major financial commitments; and

any legal obligations owed by one person in respect of the other person; and

the basis of any sharing of day-to-day household expenses;

the nature of the household, including:

any joint responsibility for providing care or support of children; and

the living arrangements of the people; and

the basis on which responsibility for housework is distributed;

the social aspects of the relationship, including:

whether the people hold themselves out as being in a de facto relationship with each other; and

the assessment of friends and regular associates of the people about the nature of their relationship; and

the basis on which the people make plans for, or engage in, joint social activities;

any sexual relationship between the people;

the nature of the people’s commitment to each other, including:

the length of the relationship; and

the nature of any companionship and emotional support that the people provide to each other; and

whether the people consider that the relationship is likely to continue indefinitely; and

whether the people see their relationship as a de facto relationship.

A person is taken for the purposes of this Act to have been capable of having an independent domicile at a time before 1 July 1982 if the person had turned 18 at or before that time.

Note: Subsection 8(1) of the Domicile Act 1982 has a similar effect for a time occurring on or after 1 July 1982.

Subsection (1) has effect despite any rule of law to the contrary.

The Commission may make a legislative instrument providing for a payment to a person who has made a claim for certain mental injuries or mental diseases.

The payment is made before the claim is determined.

Payments may also be made under the instrument to the partner of such a person.

(1) The Commission may, by legislative instrument, make provision for and in relation to the making of a payment (a veteran payment) to a person (the primary person) for whom the following criteria are met:

the primary person has made:

(i) a claim under Military Rehabilitation and Compensation Act 2004 of a kind covered by paragraph 319(1)(a) of that Act; orsection 319 of the

(ii) a claim under Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988;section 54 of the

(b) for a claim under Military Rehabilitation and Compensation Act 2004—the claim is for:section 319 of the

an injury (within the meaning of that Act) sustained by the primary person that is a mental injury, including the recurrence of a mental injury; or

a disease (within the meaning of that Act) contracted by the primary person that is a mental ailment, disorder, defect or morbid condition (whether of sudden onset or gradual development), including the recurrence of such an ailment, disorder, defect or morbid condition;

(c) for a claim under Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988—the claim is for:section 54 of the

an injury (within the meaning of that Act) suffered by the primary person that is a mental injury, including an aggravation of a mental injury; or

an injury (within the meaning of that Act) that is a disease (within the meaning of that Act) suffered by the primary person that is a mental ailment, disorder, defect or morbid condition (whether of sudden onset or gradual development), including an aggravation of such a mental ailment, disorder, defect or morbid condition;

the primary person is incapable of undertaking remunerative work for periods aggregating more than 8 hours per week;

the primary person is an Australian resident, and is in Australia, on the day the claim referred to in paragraph (a) is made;

the primary person has not reached pension age (within the meaning of subsections 5QB(2), (3), (4) and (5)) on the day the claim referred to in paragraph (a) is made;

the Military Rehabilitation and Compensation Commission has not determined the claim.

Payment to partner

(2) An instrument under subsection (1) must also make provision for and in relation to the making of a payment (also a veteran payment) to the primary person’s partner (if any) in the following circumstances:

the primary person is receiving a veteran payment referred to in subsection (1);

the primary person’s partner is an Australian resident, and is in Australia, on the day the claim referred to in paragraph (1)(a) is made.

(3) An instrument under subsection (1) may also make provision for the making of a payment (also a veteran payment) to the primary person’s partner in the following circumstances:

the primary person dies;

the primary person is receiving a veteran payment referred to in subsection (1) immediately before his or her death;

the primary person’s partner is receiving a veteran payment referred to in subsection (2) immediately before that death.

Matters instrument may deal with

Without limiting subsection (1), an instrument under subsection (1) may make provision for and in relation to the following:

further eligibility criteria for a veteran payment;

what a person has to do to get a veteran payment;

the duration of a veteran payment (which may include a period before or after the claim referred to in paragraph (1)(a) is determined);

the conditions that apply to a person receiving a veteran payment;

the suspension or cancellation of a veteran payment;

the effect of the death of the primary person before the Commission has decided whether the primary person is eligible for a veteran payment;

administrative matters, such as determination of entitlement to a veteran payment and how and when payments of a veteran payment will be made.

Without limiting paragraph (4)(a), the criteria may depend on the Commission being satisfied of one or more specified matters.

Rate

The rate of a veteran payment referred to in subsection (1), (2) or (3) is worked out in accordance with the Rate Calculator.

Note: Module A of the Rate Calculator establishes the overall rate calculation process and the remaining Modules provide for the calculation of the component amounts used in the overall rate calculation process.

Restriction on dual payments

A veteran payment referred to in subsection (1), (2) or (3) is not payable to a person if the person:

is receiving a service pension; or

is receiving a pension under Part II or IV at a rate determined under or by reference to subsection 30(1); or

(c) is receiving compensation under Military Rehabilitation and Compensation Act 2004 or receiving Special Rate Disability Pension under Part 6 of that chapter; orPart 3 or 4 of Chapter 4 of the

(d) is receiving compensation under Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988.section 19, 20, 21, 21A or 22 of the

(8) A veteran payment referred to in subsection (2) or (3) is not payable to a person if the person is a wholly dependent partner (within the meaning of the Military Rehabilitation and Compensation Act 2004) of a deceased member (within the meaning of that Act).

If:

a payment is made in respect of a person under the ABSTUDY Scheme; and

the payment is made on the basis that the person is a full-time student; and

in the calculation of the payment, an amount identified as living allowance is included; and

the payment relates to a period;

a veteran payment referred to in subsection (1), (2) or (3) is not payable to the person in respect of any part of the period.

Incorporation of other instruments

(10) Despite subsection 14(2) of the Legislation Act 2003, an instrument under subsection (1) of this section may make provision in relation to a matter by applying, adopting or incorporating, with or without modification, any matter contained in an instrument or other writing as in force or existing from time to time.