18. The Principal Act is amended as set out in Schedule 1.

19. The Principal Act is further amended as set out in Schedule 2.

20. The Principal Act is further amended as set out in Schedule 3.

21. The Acts specified in Schedule 4 are amended as set out in that Schedule.

22. The Principal Act is further amended as set out in Schedule 5.

SCHEDULE 1 Section 18

INDEXATION AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986

After section 5 n :

Insert:

Indexation and rate adjustment definitions

“5na. (1) In this Act, unless the contrary intention appears: ‘current figure’, as at a particular time and in relation to an amount that is to be indexed or adjusted under Division 21 of Part III, means:

index number’, in relation to a quarter, means the All Groups Consumer Price Index number that is the weighted average of the 8 capital cities and is published by the Australian Statistician in respect of that quarter.

Publication of substituted index numbers

“(2) Subject to subsection (3), if at any time (whether before or after the commencement of this section), the Australian Statistician publishes an index number for a quarter in substitution for an index number previously published by the Australian Statistician for that quarter, the publication of the later index number is to be disregarded for the purposes of this section.

Change to CPI reference base

“(3) If at any time (whether before or after the commencement of this section) the Australian Statistician changes the reference base for the Consumer Price Index, regard is to be had, for the purposes of applying this section after the changed index place, only to index numbers published in terms of the new reference base.

After Division 20:

Insert the following Division in Part III:

“Division 21—Indexation

“Subdivision A — Preliminary

Analysis of Division

“59. This Division provides for:

(a) the indexation, in line with CPI (Consumer Price Index) increase, of the amounts in column 2 of the CPI Indexation Table at the end of section 59b; and

SCHEDULE 1—continued

(b) the adjustment of other amounts in line with the increase in the amounts indexed.

Indexed and adjusted amounts

“59a. The following Table sets out:

SCHEDULE 1—continued

SCHEDULE 1—continued

SCHEDULE 1—continued

SCHEDULE 1—continued

SCHEDULE 1—continued

“Subdivision B—CPI indexation

CPI Indexation Table

“59b. (1) An amount referred to in the following CPI Indexation Table is to be indexed under this Division on each indexation day for the amount, using the reference quarter and base quarter for the amount and indexation day and rounding off to the nearest multiple of the rounding amount:

SCHEDULE 1—continued

SCHEDULE 1—continued

SCHEDULE 1—continued

Highest quarter

“(2) A reference in the CPI Indexation Table to the highest of a group of quarters is a reference to the quarter in that group that has the highest index number.

Indexation of amounts

“59c. (1) If an amount is to be indexed under this Subdivision on an indexation day, this Act has effect as if the indexed amount were substituted for that amount on that day.

“(2) This is how to work out the indexed amount for an amount that is to be indexed under this Subdivision on an indexation day:

Indexation factor

“59d. (1) Subject to subsections (2) and (3), the indexation factor for an amount that is to be indexed under this Subdivision on an indexation day is:

worked out to 3 decimal places.

“(2) If an indexation factor worked out under subsection (1) would, if it were worked out to 4 decimal places, end in a number that is greater than 4, the indexation factor is to be increased by 0.001.

“(3) If an indexation factor worked out under subsections (1) and (2) would be less than 1, the indexation factor is to be increased to 1.

Rounding off indexed amounts

“59e. (1) If a provisional indexed amount is a multiple of the rounding base, the provisional indexed amount becomes the indexed amount.

SCHEDULE 1—continued

“(2) If a provisional indexed amount is not a multiple of the rounding base, the indexed amount is the provisional indexed amount rounded up or down to the nearest multiple of the rounding base.

“(3) If a provisional indexed amount is not a multiple of the rounding base but is a multiple of half the rounding base, the indexed amount is the provisional indexed amount rounded up to the nearest multiple of the rounding base.

“Subdivision C — Adjustment of other rates

Adjustment of pension child add-ons

“59f. (1) This Act has effect as if, on 1 January each year, each pension under 13 child add-on were replaced with the amount that is the pension under 13 child add-on for the purposes of Part 3.16 (Indexation) of the Social Security Act on that day.

“(2) This Act has effect as if, on 1 January each year, each pension 13-15 child add-on were replaced with the amount that is the pension 13-15 child add-on for the purposes of Part 3.16 (Indexation) of the Social Security Act on that day.

Adjustment of pension guardian allowance

“59g. This Act has effect as if, on 1 January each year, the pension guardian allowance were replaced with the amount that is the pension guardian allowance for the purposes of Part 3.16 (Indexation) of the Social Security Act on that day.

Adjustment of pension “single” non-property owner AVL

“59h. This Act has effect as if, on 13 June each year, the amount worked out in accordance with the following formula were substituted for the pension ‘single’ non-property owner AVL:

where:

pension ‘single’ property owner AVL is the current figure, as at that 13 June, for the pension ‘single’ property owner AVL;

pension ‘partnered’ non-property owner AVL is the current figure, as at that 13 June, for the pension ‘partnered’ non-property owner AVL;

SCHEDULE 1—continued

pension ‘partnered’ property owner AVL is the current figure, as at that 13 June, for the pension ‘partnered’ property owner AVL.

Adjustment of special illness separated resident AVL

“59j. This Act has effect as if, on 13 June each year, the amount worked out in accordance with the following formula were substituted for each special illness separated retirement village resident AVL:

Adjustment of fringe benefits AVLs

“59k. (1) This Act has effect as if, on 13 June each year, the amount worked out in accordance with the following formula were substituted for the fringe benefits ‘single’ non-property owner AVL:

where:

fringe benefits ‘single’ property owner AVL is the current figure, as at that 13 June, for the fringe benefits ‘single’ property owner AVL;

pension ‘partnered’ non-property owner AVL is the current figure, as at that 13 June, for the pension ‘partnered’ non-property owner AVL;

pension ‘partnered’ property owner AVL is the current figure, as at that 13 June, for the pension ‘partnered’ property owner AVL.

“(2) This Act has effect as if, on 13 June each year, the amount worked out in accordance with the following formula were substituted for the fringe benefits ‘partnered’ non-property owner AVL:

where:

fringe benefits ‘partnered’ property owner AVL is the current figure, as at that 13 June, for the fringe benefits ‘partnered’ property owner AVL;

pension ‘partnered’ non-property owner AVL is the current figure, as at that 13 June, for the pension ‘partnered’ non-property owner AVL;

SCHEDULE 1—continued

pension ‘partnered’ property owner AVL is the current figure, as at that 13 June, for the pension ‘partnered’ property owner AVL.”.

SCHEDULE 2 Section 19

1990 BUDGET AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986

Section 5 (Index):

Insert the following terms in their respective appropriate alphabetical positions (determined on a letter-by-letter basis):

Subsection 5 b (2):

Omit the subsection, substitute:

“(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:

SCHEDULE 2—continued

Subsection 5 f (1):

Insert:

“ ‘Aboriginal study assistance scheme’ means:

Subsection 5h (1):

Insert:

“ ‘available money’, in relation to a person, means money that:

‘deposit money’, in relation to a person, means the person’s money that is deposited in an account with a financial institution;”.

After paragraph 5 h (8) (o):

Insert:

“(oa) a payment by a State or Territory for the purpose of assisting people to purchase or build their own homes;”.

Paragraph 5 h (8) (w):

Add at the end:

“or (ix) a widowed person allowance; or

(x) a widow B pension;”.

After paragraph 5 h (8) (y):

Insert:

“(ya) a payment towards the cost of personal care support services for the person that is made under a scheme approved under section 35a of the Social Security Act;”.

Subsection 5l (1):

Insert:

“ ‘granny flat interest’ has the meaning given by subsection (8a);”.

Subparagraph 5 l (4) (a) (ii):

Omit the subparagraph, substitute:

“(ii) the person’s right or interest in the home:

(a) gives the person reasonable security of tenure in the home; and

(b) is not a granny flat interest; and”.

SCHEDULE 2—continued

Subparagraph 5 l (4) (b) (ii):

Omit the subparagraph, substitute:

“(ii) the person’s right or interest, or the partner’s right or interest, in the home:

(a) gives the person or the person’s partner reasonable security of tenure in the home; and

(b) is not a granny flat interest; and”.

After subsection 5 l (8):

Insert:

Granny flat interest

“(8a) A person has a granny flat interest in the person’s principal home if:

(i) a right to accommodation for life in the residence; or

(ii) a life interest in the residence.”.

Paragraph 5 l (7) (b):

Omit the paragraph, substitute:

“(b) any period (not exceeding 2 years) during which the person is residing in a nursing home; and

(c) any period during which:

(i) the person is residing in a nursing home; and

(ii) the residence is, or because of paragraph (a) or (b) continues to be, the principal home of the person’s partner or non-illness separated wife; and

(d) where:

(i) the person is residing in a nursing home; and

(ii) while paragraph (c) applies, the person’s partner or non-illness separated wife dies while a resident of a nursing home; and

(iii) the person’s partner or non-illness separated wife had resided in a nursing home for less than 2 years; the period of 2 years from the beginning of that residence; and

(e) where:

(i) the person is residing in a nursing home; and

(ii) while paragraph (c) applies, the person’s partner or non-illness separated wife dies (but not while a resident of a nursing home);

SCHEDULE 2—continued

the period of 2 years from that death.

Subsection 5 q (1) (definition of “account”):

Omit the definition, substitute:

“ ‘account’, in relation to a financial institution, means the account maintained by a person with the institution to which is credited money received on deposit by the institution from that person;”.

Subsection 5 q (1) (after the definition of “determination of entitlements”):

Insert:

“ ‘financial institution’ means a bank, building society, credit union or other institution that receives money on deposit;”.

Subsection 5 q (1) (after paragraph (a) of the definition of “remote area”):

Insert:

“(aa) those parts of Australia referred to in Part II of that Schedule to that Act that are further than 250 kilometres by the shortest practicable surface route from the nearest urban centre with a census population (within the meaning of that Act) of 2,500 or more; and

(ab) those places in Australia that, for the purposes of that Act, are treated as if they were in a part of Australia referred to in paragraph (a) or (aa); and”.

Subsection 5 q (1):

Add at the end:

“ ‘tax file number’ has the same meaning as in Part Va of the Income Tax Assessment Act 1936.”.

Section 5 s :

Add at the end:

“(2) Subsection (1) does not apply to a temporary incapacity allowance (under section 107) or a loss of earnings allowance (under section 108).”.

Sub-subparagraphs 7a (1) (a) (iii) ( b ) and (iv) ( b ):

Omit “while the person”, substitute “as a person who”.

Subparagraph 7a (1) (a) (iii):

Omit “or 8”, substitute “, 8, 9 or 10”.

SCHEDULE 2—continued

Subparagraph 7a (1) (a) (v):

Omit the subparagraph.

Paragraph 7 a (1) (b):

After “Strategic Reserve)” insert “in the area described in item 3 of Schedule 2 (in column 1) during the period specified in column 2 of that Schedule opposite to that description”.

Section 42 (Service Pension Rate Calculator Where There Are Dependent Children —after point 42-C3):

Insert:

Failure to reasonably pursue maintenance claim

“42-C3A. If:

there is no dependent child add-on for that dependent child.”.

Section 42 (Service Pension Rate Calculator Where There Are Dependent Children —point 42-E10—after paragraph (d)):

Insert:

“(da) under an Aboriginal study assistance scheme; or”.

Section 42 (Service Pension Rate Calculator Where There Are Dependent Children —point 42-E10):

Add at the end:

“Note: for ‘Aboriginal study assistance scheme’ see section 5f.”.

Section 43 (Service Pension Rate Calculator for Blinded Veterans — after point 43-C3):

Insert:

Failure to reasonably pursue maintenance claim

“43-C3A. If:

SCHEDULE 2—continued

point 43-C3 does not apply to the person.”.

Section 44 (Service Pension Rate Calculator—point 44-D8—after paragraph (d)):

Insert:

“(da) under an Aboriginal study assistance scheme; or”.

Section 44 (Service Pension Rate Calculator —point 44-D8):

Add at the end:

“Note: for ‘Aboriginal study assistance scheme’ see section 5f.”.

Section 46 (Table—items 1, 2, 3 and 4):

After “made” insert “or acquired”.

Paragraph 46a (1) (a):

Omit the paragraph, substitute:

“(a) is not income in the form of periodic payments; and”.

Paragraph 46a (1) (d):

After “made” insert “, or acquired, by the person”.

Subsection 46a (2):

Omit “becoming entitled to receive an amount includes a reference to the person becoming entitled to receive”, substitute “receiving an amount includes a reference to a person receiving”.

Paragraph 46 b (1) (a):

After “made” insert “or acquired”.

Sub-subparagraph 46 b (1) (b) (ii) ( a ):

After “made” insert “, or acquired, by the person”.

Paragraph 46 b (1) (c):

Omit “becomes entitled to receive”, substitute “realises the investment and receives”.

Subsection 46b (2):

Omit “becoming entitled to receive an amount includes a reference to the person becoming entitled to receive”, substitute “receiving an amount includes a reference to a person receiving”.

After section 46 b :

Insert:

SCHEDULE 2—continued

Realisation of investment

“46ba. For the purposes of realises an investment if, and only if:section 46b, a person

Receiving by way of a return

“46bb. For the purposes of section 46b:

Sub-subparagraph 46 c (b) (ii) ( a ):

After “made” insert “, or acquired, by the person”.

Section 46 c :

After “made” (wherever occurring) insert “or acquired”.

Section 46 d :

Subsection 46 g (2):

Section 46 j :

“(2) For the purposes of subsection (1), a person realises an investment if, any only if:

SCHEDULE 2—continued

“(3) For the purposes of subsection (1):

Paragraph 46 k (1) (a):

After “made” insert “or acquired”.

Subsection 46 k (1):

After “made” (last occurring) insert “, or acquired, by the person”.

Paragraph 46 k (2) (b):

After “made” insert “, or acquired, by the person”.

Section 46 l :

After “makes” insert “or acquires”.

Paragraph 46 l (a):

After “made” insert “or acquired, by the person”.

Subsection 46 p (1):

After “made” (second occurring) insert “or acquired”.

Subsection 46 q (2):

After Division 8 of Part III:

Insert:

SCHEDULE 2—continued

“Division 8A — Interest attributed to money not invested or invested at a low rate of interest

Application of this Division and Division 8

“46v. If this Division applies to a person’s available money or deposit money, Division 8 does not apply to the return on that money.

Basic concept —income money and interest received

“46w. (1) For the purposes of this Division, a person has income money at a particular time if the sum of:

at that time is greater than $2,000.

“(2) This is how to work out which money forms part of the person’s income money:

“(3) For the purposes of subsection (2):

“(4) For the purposes of this Division, if:

(a) interest is paid on deposit money; and

SCHEDULE 2—continued

(b) the interest is received or accounted for less frequently than the anniversary of the making of the deposit;

interest on the deposit money is taken to be received by the depositer on each anniversary of the making of the deposit.

Income money that does not attract interest

“46x. (1) If:

the person is taken to receive interest on that money at the assumed rate.

“(2) Subsection (1) has effect subject to section 46z.

Income money that attracts low interest

“46y. (1) If:

the person is taken to receive interest on that money at the assumed rate.

“(2) Subsection (1) has effect subject to section 46z.

Certain income money to be disregarded

“46z. (1) The Minister may determine that this Division does not apply to:

“(2) A determination under subsection (1) is to be made by notice in writing.

“(3) If:

the income money is to be disregarded for the purposes of applying this Division to the person.

Assumed rate of interest on income money

“46za. The assumed rate of interest is:

(a) 10% per year; or

SCHEDULE 2—continued

(b) if a lower rate is determined under subsection 1099F (2) of the Social Security Act—that lower rate.

“Division 8b—Interest attributed to money on loan

Application of this Division

“46zb. (1) This Division applies to loans by a person entered into, or acquired, by the person after 21 August 1990.

“(2) If this Division applies to a person’s loan, Division 8 does not apply to the return on the loan.

Basic concepts —loan and interest

“46zc. For the purposes of this Division:

(a) there is a loan by a person if, but not only if, the person has:

(i) debentures; or

(ii) bonds; or

(iii) other securities; and

(b) there is no loan by a person:

(i) because the person has money in an account with a financial institution; or

(ii) because of any entry contribution of the person; and

Loans that do not attract interest

“46zd. (1) If:

the person is taken to receive on each anniversary of the making of the loan interest on the loan at the assumed loan rate.

“(2) Subsection (1) has effect subject to section 46zf.

Loans that attract a low rate of interest

“46ze. (1) If:

(a) there is a loan by a person; and

SCHEDULE 2—continued

the person is taken to receive interest on the loan at the assumed loan rate.

“(2) Subsection (1) has effect subject to section 46zf.

Certain loans to be disregarded

“46zf. (1) The Minister may determine that this Division does not apply to:

“(2) A determination under subsection (1) is to be made by notice in writing.

“(3) If:

the loan is to be disregarded for the purposes of applying this Division to the person.

Assumed loan rate of interest

“46zg. The assumed loan rate is:

“Division 8 C — Income attributed to deprived assets

Application of this Division

“46zh. This Division applies to dispositions of assets that occur after 21 August 1990.

Income attributed to deprived assets

“46zj. If:

the following provisions have effect:

(i) interest on the value of the asset at the assumed property rate; or

SCHEDULE 2—continued

(ii) the amount calculated in accordance with subsection 48d (3);

whichever is the higher.

Assumed property rate

“46zk. The assumed property rate is:

Subsection 48 (2):

Omit the subsection, substitute:

“(2) For the purposes of subsection (1), the value of any granny flat interest of the person is taken not to be consideration received by the person.

Section 49a:

Repeal the section, substitute:

Earnings credit account

“49a. (1) If:

(i) the person is not a member of a couple; or (ii) the person is a member of a couple and the person’s partner is receiving neither a service pension (other than a carer service pension) nor a social security pension (other than a carer pension);

the person has an individual earnings credit account.

“(2) If:

the person and the partner have a joint earnings credit account.

“(3) If at a particular time:

(a) subsection (1) ceases to apply to 2 people; and

SCHEDULE 2—continued

(b) subsection (2) applies to create a joint earnings credit account for them;

the balance of the joint earnings credit account at that time is the sum of the balances of their individual accounts immediately before that time.

“(4) If at a particular time:

the balance of the individual earnings credit account or accounts at that time is 50% of the balance of their joint earnings credit account immediately before that time.”.

Section 49b (Earnings Credit Account Balance Calculator —point 49 b -A1):

Omit:

Account balance calculation

“49b-A1. This is how to work out the balance of the person’s earnings credit account:”;

substitute:

Individual account balance calculation

“49b-A1. If the person has an individual earnings credit account, this is how to work out the balance of the account:”.

Section 49b (Earnings Credit Account Balance Calculator —points 49 b -A2, 49 b -A3 and 49 b -A4):

Omit the points, substitute:

Individual account balance not to exceed $1,000

“49b-A2. The balance of an individual account is not to exceed $1,000.

Joint account balance calculation

“49b-A3. If the person has a joint earnings credit account with the person’s partner, this is how to work out the balance of the account:

SCHEDULE 2—continued

Joint account balance not to exceed $2,000

“49b-A4. The balance of a joint account is not to exceed $2,000.

Balance not to be in debit

“49b-A5. The balance of an earnings credit account is not to fall below nil.

EC accounting periods

“49b-A6. The earnings credit accounting periods are:

Section 49b (Earnings Credit Account Balance Calculator —point 49 b- B 1):

Omit “is nil.”, substitute:

“is:

Section 49b (Earnings Credit Account Balance Calculator —point 49 b-B 2):

Omit “is the amount of the person’s earnings credit immediately before 1 July 1991 under section 49b.”, substitute:

“is:

SCHEDULE 2—continued

(i) the amount of the person’s earnings credit immediately before 1 July 1991 under section 49b; and

(ii) the amount of the partner’s earnings credit immediately before 1 July 1991 under Social Security Act 1947.”.section 49b or section 12a of the

Section 49b (Earnings Credit Account Balance Calculator —point 49 b -C1):

Omit “The person”, substitute “A person”.

Section 49b (Earnings Credit Account Balance Calculator —point 49 b -D1):

Omit “The person”, substitute “A person”.

Paragraphs 52 (1) (a) and (b):

Omit the paragraphs, substitute:

“(a) if the person is not a member of a couple—the value of any right or interest of the person in the person’s principal home that:

(i) is a right or interest that gives the person reasonable security of tenure in the home; and

(ii) is not a granny flat interest in the home;

(b) if the person is a member of a couple—the value of any right or interest of the person in one residence that is the principal home of the person, of the person’s partner or of both of them that:

(i) is a right or interest that gives the person or the person’s partner reasonable security of tenure in the home; and

(ii) is not a granny flat interest in the home;”.

Paragraph 52 (1) (fa):

Omit the paragraph, substitute:

“(fa) if:

(i) the person has a granny flat interest in the person’s principal home; and

(ii) the granny flat interest gives the person reasonable security of tenure in the home; and

(iii) the person acquired or retained the granny flat interest before 22 August 1990;

SCHEDULE 2—continued

the value of the granny flat interest;”.

Subsection 52 e (2):

Omit the subsection, substitute:

“(2) For the purposes of subsection (1), the value of any granny flat interest of the person is taken not to be consideration received by the person.

Subsection 52 g (1):

Omit “1 June 1984”, substitute “1 March 1986”.

Subsection 52 g (1):

Insert “for the period of 5 years that starts on the day on which the disposition takes place” after “assets” (fourth occurring).

Paragraph 52 g (1) (b):

Omit “$2,000”, substitute “$10,000”.

Paragraph 52 g (1) (c):

Omit “$2,000”, substitute “$10,000”.

Subsection 52 g (2):

Omit the subsection, substitute:

“(2) If:

the amount that is to be included in that value under that subsection is to be reduced, on each anniversary of the day on which the disposition took place, by an amount equal to 10% of the relevant amount.

Subsection 52 h (1):

Omit “1 June 1984”, substitute “1 March 1986”.

Paragraph 52 h (1) (b):

Omit “$4,000”, substitute “$10,000”.

Paragraph 52 h (1) (c):

Insert “for the period of 5 years that starts on the day on which the disposition takes effect” after “assets” (first occurring).

SCHEDULE 2—continued

Subparagraph 52 h (1) (c) (i):

Omit “$4,000”, substitute “$10,000”.

Paragraph 52 h (1) (d):

Insert “for the period of 5 years that starts on the day on which the disposition takes place” after “assets” (first occurring).

Subparagraph 52 h (1) (d) (i):

Omit “$4,000”, substitute “$10,000”.

Subsection 52 h (1) (Notes 1 and 2):

Omit the Notes.

Subsection 52 h (2):

Omit the subsection, substitute:

“(2) If:

the amount that is to be included in that value under that subsection is to be reduced, on each anniversary of the day on which the disposition took place, by an amount equal to 10% of the relevant amount.

Heading to Subdivision C of Division 14 of Part III:

Add at the end “and granny flats”.

Section 52k :

Repeal the section, substitute:

Retirement village and granny flat residents

“52k. For the purposes of this Subdivision:

Application of Subdivision to granny flat residents

“52ka. This Subdivision applies to a granny flat resident only if the resident acquired or retained the person’s granny flat interest in the person’s principal home on or after 22 August 1990.”.

SCHEDULE 2—continued

Section 52 l :

Insert “or granny flat” after “retirement village”.

Subsection 52 m (1):

Insert “or granny flat” after “retirement village” (first occurring).

Paragraph 52 m (1) (a):

Insert “or granny flat” after “retirement village”.

Paragraph 52 m (1) (b):

Insert “or granny flat” after “retirement village”.

Paragraph 52 m (1) (c):

Insert “or granny flat” after “retirement village”.

Paragraph 52 m (1) (d):

Insert “or granny flat” after “retirement village” (wherever occurring).

Paragraph 52m (1) (e):

Insert “or granny flat” after “retirement village” (wherever occurring).

Paragraph 52 m (1) (f):

Insert “or granny flat” after “retirement village” (wherever occurring).

After subsection 52 m (1):

Insert:

“(1a) For the purposes of subsection (1):

(i) unless subparagraph (ii) applies—the amount paid, or agreed to be paid, for the interest; or

(ii) if the Secretary considers that, for any special reason in any particular case, that value should be another amount—that other amount.”.

After subsection 52 n (2):

Insert:

SCHEDULE 2—continued

Granny flat residence

“(2a) A granny flat resident’s extra allowable amount is:

Subsection 52 q (1):

Insert “or granny flat” after “retirement village”.

Paragraph 52 q (2) (a):

Insert “or granny flat resident” after “retirement village”.

Paragraph 52 q (3) (a):

Insert “or granny flat” after “retirement village”.

Subsection 52 r (1):

Insert “or granny flat” after “retirement village”.

Paragraph 52 r (2) (a):

Insert “or granny flat” after “retirement village”.

Paragraph 52 r (3) (a):

Insert “or granny flat” after “retirement village”.

Subsection 52 s (1):

Insert “or granny flat” after “retirement village” (first occurring).

Paragraph 52 s (1) (b):

Insert “or granny flat” after “retirement village”.

Paragraph 52 s (2) (a):

Insert “or granny flat” after “retirement village”.

SCHEDULE 2—continued

Paragraph 52 s (3) (a):

Insert “or granny flat” after “retirement village”.

Paragraph 52 s (5) (a):

Insert “or granny flat” after “retirement village”.

Subsection 52 t (1):

Insert “or granny flat” after “retirement village” (first occurring).

Paragraph 52 t (1) (b):

Insert “or granny flat” after “retirement village”.

Paragraph 52 t (2) (a):

Insert “or granny flat” after “retirement village”.

Paragraph 52 t (3) (a):

Insert “or granny flat” after “retirement village”.

Subsection 52 u (1):

Insert “or granny flat” after “retirement village” (first occurring).

Paragraph 52 u (1) (b):

Insert “or granny flat” after “retirement village”.

Paragraph 52 u (2) (a):

Insert “or granny flat” after “retirement village”.

Paragraph 52 u (4) (a):

Insert “or granny flat” after “retirement village”.

Subsection 52 v (1):

Insert “or granny flat” after “retirement village” (first occurring).

Paragraph 52 v (1) (b):

Insert “or granny flat” after “retirement village”.

Paragraph 52 v (2) (a):

Insert “or granny flat” after “retirement village”.

Paragraph 52 v (2) (d):

Insert “or granny flat” after “retirement village”.

Paragraph 52 v (2) (e):

Insert “or granny flat” after “retirement village”.

SCHEDULE 2—continued

Paragraph 52 v (3) (a):

Insert “or granny flat” after “retirement village”.

Paragraph 52 v (3) (e):

Insert “or granny flat” after “retirement village”.

Subsection 52 v (1):

Insert “or granny flat” after “retirement village” (first occurring).

Paragraph 52 w (1) (b):

Insert “or granny flat” after “retirement village”.

Subsection 52 w (2):

Insert “or granny flat” after “retirement village” (first occurring).

Subparagraph 52 w (2) (c) (ii):

Insert “or granny flat” after “retirement village”.

Subsection 52 x (1):

Insert “or granny flat” after “retirement village” (first occurring).

Paragraph 52 x (1) (b):

Insert “or granny flat” after “retirement village”.

Paragraph 52 x (2) (a):

Insert “or granny flat” after “retirement village”.

Paragraph 52 x (3) (a):

Insert “or granny flat” after “retirement village”.

Section 53b (Fringe Benefits Income Test Calculator —point 53 b -9— after paragraph (d)):

Insert:

“(da) under an Aboriginal study assistance scheme; or”.

Section 53b (Fringe Benefits Income Test Calculator —point 53 b -9):

Add at the end:

“Note: for ‘Aboriginal study assistance scheme’ see section 5f.”.

Paragraph 54 (4) (c):

After “period within which” insert “, and the manner in which”.

Paragraph 54a (3) (c):

After “period within which” insert “, and the manner in which”.

SCHEDULE 3 Section 20

CONSEQUENTIAL AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986

Paragraph 10 (1) (a):

Omit “wife”, substitute “partner”.

Subparagraph 10 (2) (a) (i):

Omit “husband”, substitute “partner”.

Subparagraphs 11 (1) (a) (i), (ii) and (iii):

Omit the subparagraphs, substitute:

“(i) the partner of the veteran;

(ii) a non-illness separated wife of the veteran;

(iii) a widow of the veteran;

(iv) a child of the veteran;”.

After subsection 11 (1):

Insert:

“Note: a veteran may have more than one dependant of the kind referred to in subparagraphs (i) to (iii) at the same time.”.

Subsection 13 (11):

Omit all words from and including “veteran described in paragraph (a)”, substitute “person (including a deceased person) who is, because of section 7, taken to have rendered eligible war service”.

Paragraph 30 (2) (a):

Omit “if the spouse of the deceased veteran is also dead”, substitute “if there is no widow or widower of the veteran”.

Paragraph 30 (2) (b):

Omit “if the spouse of the deceased veteran is alive”, substitute “if there is a widow or widower of the veteran”.

Subsection 30 (4):

Omit the subsection.

Paragraph 74 (12) (a):

Omit “spouse”, substitute “widow”.

Paragraph 80 (2) (a):

Omit the paragraph.

SCHEDULE 3—continued

Paragraph 80 (2) (c):

Omit “sub-section 5 (1)”, substitute “paragraph (a) of the definition of ‘veteran’ in subsection 5c (1)”.

Paragraph 81 (2) (b):

Omit “, not being a service pension, a wife’s service pension or a carer’s service pension”, substitute “(other than a service pension)”.

Sections 82 and 83:

Repeal the sections.

Paragraph 85 (4) (aa):

Subsection 85 (5):

Omit the subsection, substitute:

“(5) A veteran referred to in section 53d is eligible to be provided with treatment under this Part for any injury suffered, or disease contracted, by the veteran, whether before or after the commencement of this Act.

Subsections 85 (5a) and (6):

Omit the subsections.

Paragraph 85 (7) (b):

Omit “or a wife’s service pension”, substitute “(other than a carer service pension)”.

Paragraph 85 (7) (d):

Omit “or wife’s service pension”.

Subsection 85 (8):

Omit “, or wife’s service pension,”.

Paragraph 86 (5) (a):

Omit “(6),”.

Section 95:

Repeal the section.

Subsection 98 (4a):

Omit “carer’s service pension under section 41”, substitute “carer service pension under Division 6 of Part III”.

SCHEDULE 3—continued

Paragraph 98 (4a) (b):

Omit the paragraph, substitute:

“(b) would be payable, but for action taken:

(i) under section 56e (cancellation or suspension) because the person has contravened a provision of this Act (other than subsection 54 (6) or 128 (4)); or

(ii) under subsection 205 (2) (deductions to recover overpayments);

in relation to a carer service pension;”.

Subsection 98a (1):

Omit the subsection, substitute:

“(1) This section applies where a veteran dies if the veteran was, immediately before his or her death:

Subsection 98a (6) (definitions of “married veteran”, “widow” and “widower”):

Omit the definitions.

Paragraph 113 (1) (c):

Omit “spouse”, substitute “partner or non-illness separated wife”.

Subsection 115 (5):

Section 118a (subparagraphs (a) (i) and (ii) of the definition of “eligible pensioner”):

Omit the subparagraphs, substitute:

“(i) who is receiving a service pension; and

(ii) whose rate of service pension is not reduced because of:

SCHEDULE 3—continued

(d) Modules D, E or F of the Service Pension Rate Calculator at the end of section 44; or”.

Section 118a (definition of “special wife service pensioner”):

Omit the definition, substitute:

“ ‘special wife service pensioner’ means a woman who either:

(a) is:

(i) a non-illness separated wife who is receiving wife service pension; and

(ii) is neither the partner of an eligible pensioner within the meaning of section 118a of this Act nor the partner of an eligible 1947 Act pensioner or eligible 1991 Act pensioner within the meaning of section 19a of the Social Security Act; or

(b) is:

(i) receiving wife service pension because of paragraph 38 (1) (c) or (d); and

(ii) is neither the partner of an eligible pensioner within the meaning of section 118a of this Act nor the partner of an eligible 1947 Act pensioner or eligible 1991 Act pensioner within the meaning of section 19a of the Social Security Act;”.

Subsection 118 d (2):

Omit the subsection, substitute:

“(2) The rate of pharmaceutical supplement for a person:

Subsection 118 f (2):

Omit the subsection, substitute:

“(2) The amount of advance pharmaceutical supplement for a person:

is $25 per fortnight.

Section 118 g :

Omit “spouse” (wherever occurring), substitute “partner or non-illness separated wife”.

SCHEDULE 3—continued

Subsection 118 g (4):

Omit the subsection, substitute:

“(4) The amount of a further advance pharmaceutical supplement for a person:

is $17.50 per fortnight.

Section 118 h :

Omit “spouse” (wherever occurring), substitute “partner or non-illness separated wife”.

Subsection 118 h (5):

Omit “Where paragraph 47 (1) (b) applies to a person (other than a special wife service pensioner),”, substitute “Where a person:

Subparagraph 118 j (3) (b) (ii):

Omit “to whom paragraph 47 (1) (b) applies”, substitute “who is partnered (partner receiving pension or benefit)”.

Paragraph 118 ja (a):

Omit the paragraph, substitute:

“(a) a service pension; or”.

Subsection 118 jb (2):

Omit the subsection, substitute:

“(2) The rate of pharmaceutical allowance for a person:

Subparagraph 118k (2) (b) (ii):

Omit “to whom paragraph 47 (1) (b) applies”, substitute “who is partnered (partner receiving pension or benefit)”.

Subsection 118 m (1):

Omit all words from and including “ ‘X’ means”, substitute: “ ‘X’ means:

(a) except where paragraph (b) applies—5; or

SCHEDULE 3—continued

(b) in the case of a person (other than a special wife service pensioner) who is partnered (partner receiving pension or benefit)—2.5.”.

Subsections 118n (1) and (2):

Omit “to whom paragraph 47 (1) (b) applies”, substitute “who is partnered (partner receiving pension or benefit)”.

Paragraph 119 ( 1 ) (b):

Omit the paragraph, substitute the following:

“(b) a review, under Division 19 of Part III, of a decision of the

Commission with respect to a service pension or qualifying

service;”.

Paragraph 119 ( 1 ) (e):

Omit “, a wife’s service pension or a carer’s service pension”.

Subsection 119 (2) (paragraph (a) of the definition of “application”):

Omit “, a wife’s service pension or a carer’s service pension”.

Subsection 119 (2) (paragraph (b) of the definition of “claim”):

Omit the paragraph, substitute:

“(b) a claim for service pension or other benefit under Part III; or

(c) a claim for a qualifying service determination under Part III.”.

Subsections 121 (1 a ):

Omit “, 21 (2) or 46 (3)”, substitute “or 21 (2)”.

Subsections 121 (2), (3) and (4):

Omit the subsections.

Subsection 123 (1) (paragraph (c) of the definition of “child”):

Omit “spouse”, substitute “partner or non-illness separated wife”.

Subsection 123 (1) (definition of “de facto spouse”):

Omit the definition.

Subsection 123 (1) (definition of “spouse”):

Omit the definition.

Subsection 123 (2):

Omit “5 (1)”, substitute “5f (1)”.

Paragraph 123d (1) (a):

SCHEDULE 3—continued

Paragraphs 123D (1) (b), (c) and (d):

Omit “spouse”, substitute “widow or widower”.

Subsections 124 (1) and (2):

Omit “, III”.

Paragraphs 124 (4) (a) and (5) (a):

Omit “, III”.

Paragraph 124 (6) (a):

Omit the paragraph.

Subsection 125 (2):

Omit the subsection.

Subsection 126 (4):

Subsection 126 a (2):

Omit “purposes of paragraph 43 (1) (a)”, substitute “purpose under paragraph 35d (b), 36f (b), 37f (b), 38f (b) or 39f (b) (as the case requires)”.

Subsections 128a (2) and (3):

Omit “person’s spouse’s tax file number”, substitute “tax file number of the person’s partner or non-illness separated wife”.

Subsection 128B (1):

Omit “spouse”, substitute “partner or non-illness separated wife”.

Subsections 132 (3) and (4):

Omit “or 60”, substitute “or 57f”.

Subsection 132 (12):

Subsection 174 (2):

Omit the subsection, substitute:

“(2) In this Part:

‘veteran’ includes:

SCHEDULE 3—continued

Subsection 175 (2):

Omit the subsection, substitute:

“(2) Where the Commission, under section 57b, affirms a decision of the Commission referred to in section 57 or sets it aside and substitutes another decision for it, a person may apply to the Administrative Appeals Tribunal for a review of the decision so affirmed or substituted.

“(2a) A person’s right to apply to the Administrative Appeals Tribunal under subsection (2) is subject to Administrative Appeals Tribunal Act 1975.section 29 of the

Paragraph 176 (3) (a):

Omit “62”, substitute “57e”.

Subsection 176 (8):

Omit all words from and including “under sub-section 58 (1)”, substitute:

“(a) to cancel or suspend a service pension under section 56e; or

(e) made by the Commission in substitution for a decision set aside under section 57b;

the Administrative Appeals Tribunal need not make another decision in substitution for the decision set aside by it.”.

Subsection 177 (5):

Omit “59” (3 times occurring), substitute “57b”.

Subsection 189 (5) (definition of “pension”):

Omit “, a wife’s service pension, a carer’s service pension,”.

Subsection 198 (1) (definition of “relevant amount”):

Omit the definition.

SCHEDULE 3—continued

Subsection 198 (1) (paragraphs (f), (g) and (h) of the definition of “relevant rate”):

Omit the paragraphs.

Subsection 198 (1) (definition of “relevant year”):

Omit the definition.

Subsection 198 (1) (definition of “rent assistance amount”):

Omit the definition.

Paragraphs 198 (4) (aa) and (c):

Omit the paragraphs.

Subsection 198 (4a):

Omit the subsection.

Subsection 198 (5):

Omit “or (4a)”.

Subsections 198 (5b), (5 c ), (5e) and (5 f ):

Omit the subsections.

Subsections 198 (6), (7), (8) and (9):

Omit the subsections.

Subsection 198 (10):

Sections 198b and 198 c :

Repeal the sections.

Subsection 201 (5) (definition of “veteran”):

Omit the definition, substitute: “ ‘veteran’ includes:

SCHEDULE 3—continued

Section 207:

Repeal the section.

SCHEDULE 4 Section 21

CONSEQUENTIAL AMENDMENTS OF OTHER ACTS

Defence Service Homes Act 1918

Subsection 4 (1) (paragraphs ( ga ) and ( gb ) of the definition of “Australian Soldier”):

Omit “5 (12)”, substitute “5b (2)”.

Disability Services Act 1986

Paragraph 22 (4) (b):

Omit “, a wife’s service pension or a carer’s service pension”.

Health Insurance Act 1973

Paragraph 3 (10) (b):

Omit “, a wife’s service pension or a carer’s service pension”.

National Health Act 1953

Subsection 4 (1) (paragraph (b) of the definition of “pensioner”):

Omit the paragraph, substitute:

“(b) a person:

(i) who is receiving a service pension under Veterans’ Entitlements Act 1986; andPart III of the

(ii) who is eligible for fringe benefits under section 53a of that Act;”.

Paragraph 4 (3) (b):

Omit “, a wife’s service pension or a carer’s service pension”.

Paragraph 84 (1) (paragraph (b) of the definition of “concessional beneficiary”):

Omit “, a wife’s service pension or a carer’s service pension”.

Public Service Act 1922

Subsection 7 (1) (paragraphs (e) and (f) of the definition of “Returned Soldier”):

Omit “5 (12)”, substitute “5b (2)”.

SCHEDULE 4—continued

Seamen’s War Pensions and Allowances Act 1940

Subsection 21 (11):

Omit “carer’s service pension under section 41”, substitute “carer service pension under Part III”.

Paragraph 21(11) (b):

Omit the paragraph, substitute:

“(b) would be payable, but for action taken:

(i) under section 56e (cancellation or suspension) of that Act because the person has contravened a provision of that Act (other than subsection 54(6) or 128 (4)); or (ii) under subsection 205 (2) (deductions to recover overpayments) of that Act;

in relation to a carer service pension;”.

Subsection 24 b (6) (definition of “married Australian mariner”):

Omit “married veteran”, substitute “veteran who is a member of a couple”.

Subsection 24b (6) (definitions of “widow” and “widower”):

Omit “Part III”, substitute “section 5e”.

Paragraph 32 aa (1) (a):

Omit “person’s spouse’s tax file number”, substitute “tax file number of the person’s partner or non-illness separated wife”.

Subsection 32 ab (1):

Omit “spouse”, substitute “partner or non-illness separated wife”.

Social Security Act 1991

Subparagraph 8 (8) (y) (viii):

Omit “Division 5a of.

Subsection 23 (1) (paragraph (f) of the definition of “dependent child add-on”):

Omit the paragraph, substitute:

“(f) Service Pension Rate Calculator Where There Are Dependent Children (point 42-C3) or Service Pension Rate Calculator For Blinded Veterans (point 43-C3);”.

Subsection 23 (1) (paragraph (f) of the definition of “guardian allowance”):

Omit the paragraph, substitute:

“(f) Service Pension Rate Calculator Where There Are Dependent Children (point 42-C5);”.

SCHEDULE 4—continued

Subsection 23 (1) (paragraph (b) of the definition of “service pension”):

Omit the paragraph, substitute:

“(b) an invalidity service pension under Part III of the Veterans’ Entitlements Act; or”.

Section 1064 (Pension Rate Calculator A —point 1064-C2—Note 3):

Omit “invalid”, Substitute “invalidity”.

Section 1064 (Pension Rate Calculator A —point 1064-C5):

Omit “paragraph 47 (3) (b) of the VEA”, substitute:

“the following provisions of the VEA:

Section 1064 (Pension Rate Calculator A —point 1064-J2—

subparagraph (b) (ii)):

Omit “paragraph 47 (3) (a), (b) or (c) of the VEA”, substitute:

“the following provisions of the VEA:

Section 1065 (Pension Rate Calculator B —point 1065-C1—Note 3):

Omit “invalid”, Substitute “invalidity”.

Section 1065 (Pension Rate Calculator B —point 1065-C5):

Omit “paragraph 47 (3) (b) of the Veterans’ Entitlements Act”,

substitute:

“the following provisions of the VEA:

Section 1065 (Pension Rate Calculator B —point 1065-F2—

subparagraph (b) (ii):

Omit “paragraph 47 (3) (a), (b) or (c) of the VEA”, substitute:

“the following provisions of the VEA:

(A) Service Pension Rate Calculator Where There Are Dependent Children (point 42-C3);

SCHEDULE 4—continued

(B) Service Pension Rate Calculator For Blinded Veterans (point 43-C3)”.

Section 1067 (Benefit Rate Calculator A —point 1067-K4—paragraph (b)):

Omit “section 57 of the VEA”, substitute:

“the following provisions of the VEA:

(i) Service Pension Rate Calculator Where There Are No Dependent Children (point 41-Gl);

(ii) Service Pension Rate Calculator Where There Are Dependent Children (point 42-H1);

(iii) Service Pension Rate Calculator For Blinded Veterans (point 43-E1);

(iv) Service Pension Rate Calculator For Widows And Non-Illness Separated Wives (point 44-G1)”.

Section 1068 (Benefit Rate Calculator B —point 1068-J4—paragraph (b)):

Omit “section 57 of the VEA”, substitute:

“the following provisions of the VEA:

(i) Service Pension Rate Calculator Where There Are No Dependent Children (point 41-Gl);

(ii) Service Pension Rate Calculator Where There Are Dependent Children (point 42-H1);

(iii) Service Pension Rate Calculator For Blinded Veterans (point 43-E1);

(iv) Service Pension Rate Calculator For Widows And Non-Illness Separated Wives (point 44-G1)”.

Section 1115 (Earnings Credit Account Balance Calculator —point 1115-B3—paragraph (b)):

Omit “section 49b”, substitute “Division 11 of Part III”.

Subsection 1192 (1):

Omit “(and any other Act that refers to this Act)”.

Subsections 1199 (1) and (3):

Omit “(and any other Act that refers to this Act)”.

Subsections 1200 (1) and (3):

Omit “(and any other Act that refers to this Act)”.

Subsections 1201 (1) and (3):

Omit “(and any other Act that refers to this Act)”.

SCHEDULE 4—continued

Subsection 1234 (3):

Omit “subsection 42 (1)”, substitute “section 36c, 37c, 38c or 39c”.

Section 1235:

Omit “subsection 42 (1)”, substitute “section 36c, 37c, 38c or 39c”.

Social Security and Veterans’ Affairs Legislation Amendment Act 1988

Section 30:

Repeal the section, substitute:

Rent assistance —boarders and lodgers (changes introduced on 12 June 1989)

“30. (1) If:

(a) immediately before 12 June 1989:

(i) a person was receiving a service pension under or because of the Veterans’ Entitlements Act 1986; and

(ii) the person’s service pension rate included an amount by way of rent assistance in respect of payments made for board and lodging; and

(b) at all times since 12 June 1989, the person:

(i) has been receiving a service pension; and

(ii) has been a boarder;

the amount by way of rent assistance included in the person’s service pension rate is not to fall below the floor amount.

“(2) If:

the person is to be taken, for the purposes of this section, to have been receiving rent assistance under that Act immediately before 12 June 1989.

“(3) If:

SCHEDULE 4—continued

(i) has been receiving a service pension; and

(ii) has been a boarder;

the amount of rent assistance included in the person’s service pension rate is not to fall below the person’s floor amount.

“(4) For the purposes of subsections (1) and (3), the person’s floor amount is the amount by way of rent assistance that would be included in the person’s service pension rate if:

(i) the following paragraph applied instead of paragraph 55 (1) (a):

‘(a) the person pays, or is liable to pay, rent, other than government rent, at a rate exceeding $1,040 per year;’;

(ii) ‘the amount specified in paragraph (l) (a)’ were substituted for ‘$780’ in subparagraph 55 (3) (a) (i); and

(c) any increases in the amounts being paid by the person from time to time for board and lodging above the level being paid immediately before 11 June 1989 were disregarded.

“(5) Subsection (1) or (3) ceases to apply to a person’s service pension rate when the amount of rent assistance that the person would be entitled to because of that subsection is less than (or equal to) the amount of rent assistance that the person is entitled to under the Veterans’ Entitlements Act 1986.

“(6) Subsection (1) or (3) will not apply to a person again once it has ceased to apply to the person.

“(7) References in this section to payments for board and lodging include references to payments for accommodation and other services that are provided to a person who is residing in a nursing home.

“(8) In this section:

‘boarder’ means a person who ordinarily lives on premises where the person is provided with board and lodging.

Section 31:

Repeal the section, substitute:

SCHEDULE 4—continued

Rent assistance —retirement village residents (changes introduced on 12 June 1989)

“31. (1) If:

(a) immediately before 3 November 1988:

(i) a person was receiving a service pension; and

(ii) the person’s service pension rate included an amount by way of rent assistance under or because of the Veterans’ Entitlements Act 1986; and

(b) at all times since 3 November 1988:

(i) the person has been entitled to a service pension; and

(ii) the person’s principal home has been in a retirement village;

the person is to be taken not to be an ineligible property owner for the purposes of the Veterans’ Entitlements Act 1986.

“(2) If:

(a) immediately after 12 June 1989:

(i) a person was receiving a social security pension, social security benefit or family allowance supplement; and

(ii) the person’s pension, benefit or allowance rate included an amount by way of rent assistance because of the operation of subsection 19 (1) of the Social Security and Veterans’ Affairs Legislation Amendment Act 1988; and

(i) the person has continued to receive a service pension;

and

(ii) the person’s principal home has continued to be in the retirement village;

the person is to be taken not to be an ineligible property owner for the purposes of the Veterans’ Entitlements Act 1986.

“(3) If subsection (1) or (2) ceases to apply to the person, that subsection does not apply to the person again.

SCHEDULE 4—continued

Social Security and Veterans’ Affairs Legislation Amendment Act (No. 4) 1989

Subsection 4 (3):

Omit “paragraph 47 (3) (e)” (last occurring), substitute:

“point 42-C7 of the Rate Calculator at the end of Veterans’ Entitlements Act 1986”.section 42 or by item 4 of Table C-2 of the Rate Calculator at the end of section 43 of the

Subsection 4 (4):

Omit all words from and including “then”, substitute:

“then:

(a) from that commencement until 30 June 1991, the person’s income is to continue to be reduced, by an amount in respect of that child worked out under section 37 of that Act until:

(i) the child stops being a dependent child; or

(ii) the person is no longer entitled to receive any kind of pension or allowance under of that Act; andPart III

(b) on and after 1 July 1991, if neither subparagraph (a) (i) nor (ii) has applied, the person’s ordinary income free area is increased, in respect of the child, in accordance with:

(i) points 42-E4 and 42-E7 of the Rate Calculator at the end of section 42; or

(ii) points 44-D4 and 44-D5 of the Rate Calculator at the end of section 44;

(as the case requires) until:

(iii) the child stops being a dependent child; or (iv) the person is no longer entitled to receive any kind of pension under of that Act.”.Part III

Social Security and Veterans’ Entitlements (Maintenance Income Test) Amendment Act 1988

Section 21:

Repeal the section, substitute:

Maintenance income test (changes introduced on 17 June 1988)

“21. (1) If:

(a) in the fortnight that ended on 16 June 1988:

(i) a person was receiving a service pension or a social security pension or social security benefit; and

(ii) the person had maintenance income; and

(b) at all times since 17 June 1988, the person has been receiving

SCHEDULE 4—continued

a service pension or a social security pension or social security benefit; and

the person’s service pension amount in that fortnight is to be such that the person’s total income for the fortnight is equal to the person’s total income for the fortnight that ended on 16 June 1988.

“(2) Subsection (1):

(i) the person was required by or under the Social Security Act 1947 or the Veterans’ Entitlements Act to notify the Department of the maintenance income that the person had in the fortnight that ended on 16 June 1988; and

(ii) the person failed to notify the Department of the maintenance income as required by or under that Act.

“(3) If subsection (1) ceases to apply to the person, this section will not apply to the person at any time after that cessation.

“(4) The person’s service pension amount in the fortnight is not to exceed:

“(5) If:

SCHEDULE 4—continued

(c) the change in circumstances is not a change in the person’s other income;

the person’s total income for the fortnight that ended on 16 June 1988 is to be taken, for the purposes of subsection (1) after the change in circumstances, to have been reduced by the amount of the extra payment.

“(6) If the amount of:

(a) a pension received by the person under 16 June 1988;Part III of the Veterans’ Entitlements Act in the fortnight that ended on

or

(b) a benefit or allowance received by the person under the Social Security Act 1947 in the fortnight that ended on 16 June 1988;

is less than the amount of the person’s fortnightly rate of benefit, allowance or pension, the amount of the benefit, allowance or pension received by the person in that fortnight is to be taken, for the purposes of this section, to be the amount of the person’s fortnightly rate of the benefit, allowance or pension.

“(7) In this clause:

‘extra payment’ means:

(a) an additional payment for a partner made under:

(i) subsection 118 (2) of the Social Security Act 1947; or

(ii) Module C of Benefit Rate Calculator A of the Social Security Act 1991; or

(iii) Module C of Benefit Rate Calculator B of the Social Security Act 1991; or

(b) additional amounts for dependent children under:

(i) subsection 33 (3) or (4) of the Social Security Act 1947; or

(ii) the Social Security Act 1991; or

(iii) the Veterans’ Entitlements Act;

‘indexation increase’, in relation to a service pension or a social security pension or social security benefit, means an increase in the rate at which the pension or benefit is payable that has occurred because of an indexation provision;

SCHEDULE 4—continued

indexation provision’ means a provision of the Social Security Act 1947, the Social Security Act 1991 or the Veterans’ Entitlements Act that provides for the rate of a pension or benefit to be increased periodically by reference to the quarterly All Groups Consumer Price Index numbers published by the Australian Statistician;

‘ordinary income’ does not include an amount that is disregarded under the Social Security Act 1947, the Social Security Act 1991 or the Veterans’ Entitlements Act because of an earnings credit scheme;

‘total income’, for a person in a period, means the sum of:

reduced by so much of that amount as:

Veterans’ Affairs Legislation Amendment Act 1990

Subsection 93 (1):

Omit all words from and including “subsection 5 (12)”, substitute “subsection 5b (2) of the Veterans’ Entitlements Act 1986 applies in relation to the person as if the amendments made by section 19 of the Veterans’ Entitlements (Rewrite) Transition Act 1991 (as it relates to subsection 5b (2)) had not been made.”.

Subsection 93 (2):

Omit “paragraphs 37 (b) and (c) of this Act”, substitute “Veterans’ Entitlements (Rewrite) Transition Act 1991 (as it relates to subsection 5b (2))”.section 19 of the

Veterans’ Entitlements (Transitional Provisions and Consequential Amendments) Act 1986

Paragraph 4 (1) (d):

Omit the paragraph, substitute:

“(d) ‘widow’ has the same meaning as in section 5e of the Veterans’ Entitlements Act.”.

Paragraph 4 (2) (b):

Omit “sub-section 5 (1)”, substitute “paragraph (a) of the definition of ‘veteran’ in subsection 5c (1)”.

SCHEDULE 4—continued

Paragraph 5 (4) (c):

Omit “Part III of”.

Paragraph 8 (1) (b):

Omit “sub-section 35 (1)”, substitute “paragraph (a) or (b) of the definition of ‘veteran’ in subsection 5c (1)”.

Subsection 8 (2):

Omit “wife” (first occurring), substitute “partner or non-illness separated wife”.

Paragraph 8 (2) (a):

Omit “wife’s”, substitute “wife”.

Paragraph 8 (2) (b):

Omit “sub-section 35 (1)”, substitute “paragraph (a) or (b) of the definition of ‘veteran’ in subsection 5c (1)”.

Subsection 8 (3):

Omit “carer’s”, substitute “carer”.

Subsection 8 (4) (b):

Omit the paragraph, substitute:

“(b) ‘partner’, ‘non-illness separated wife’ and ‘widow’ have the same meanings as in section 5e of the Veterans’ Entitlements Act; and”.

Subsection 8 (4) (c):

Omit the paragraph.

Section 9:

Repeal the section.

Subsection 10 (2):

Paragraphs 10 (3) (a) and (4) (b):

Omit “, a wife’s service pension or a carer’s service pension”.

Paragraph 10 (4) (a):

Omit “a pension under Social Security Act 1947”, substitute “an age, invalid, wife or carer pension under the Social Security Act 1991”.Part IV of the

SCHEDULE 4—continued

Subsection 10 (5):

Paragraph 10 (7) (c):

Omit “on and after 1 March 1989.”, substitute “between 1 March 1989 and 30 June 1991 (inclusive); or”.

Subsection 10 (7):

Add at the end:

“(d) 1 July 1991.”.Part 2.7 (widowed person allowance) or Part 2.8 (widow B pension) as in force on and after

Subsection 13 (2):

Omit “58 (1)”, substitute “section 56e”.

Paragraph 14 (5) (a) (first occurring):

Paragraph 14 (5) (a) (second occurring):

Omit “sub-section 5 (1)”, substitute “paragraph (a) of the definition of ‘veteran’ in subsection 5c (1)”.

Paragraph 14 (9) (b):

Omit “sub-section 5 (1)”, substitute “paragraph (a) of the definition of ‘veteran’ in subsection 5c (1)”.

Subsection 20 (2):

Omit “section 59”, substitute “Division 19 of Part III”.

Subsection 22 (2):

Omit “Section 62 of the Veterans’ Entitlements Act extends”, substitute “Sections 57d and 57e of the Veterans’ Entitlements Act extend”.

Paragraph 22 (4) (b):

Omit “62”, substitute “57e”.

Subsection 23 (1):

SCHEDULE 4—continued

Subsection 23 (3):

Subsection 23 (4):

Omit “sub-section 35 (8)”, substitute “subsection 5f (4)”.

Section 28:

Omit “sub-section 35 (8)”, substitute “subsection 5f (4)”.

Section 29:

Omit “sub-section 50 (8)”, substitute “subsection 5l (7)”.

Subsection 30 (1):

Omit “section 51”, substitute “Subdivision E of Division 14 of Part III”.

Subsection 30 (2):

Subsection 30 (3):

Omit “51”, substitute “52zf”.

Subsection 31 (2):

Omit “”.section 52”, substitute “Division 10 of Part III

Subsection 31 (3):

Omit “section 52”, substitute “Subdivision B of Division 14 of Part III”.

Section 39:

Omit “sub-section 125 (2)”, substitute “section 58h”.

Section 40:

Omit “, wife’s service pension or carer’s service pension, as the case may be,”.

Section 45:

Before “section 127” (wherever occurring), insert “section 54 or”.

SCHEDULE 4—continued

Subsection 45 (3):

Paragraph 45 (3) (a):

After “a notice under”, insert “section 54 or”.

Paragraph 45 (3) (b):

After “a reference in”, insert “sections 56, 56a and 56b and in”.

Subsection 45 (5):

SCHEDULE 5 Section 22

MINOR AMENDMENTS OF THE VETERANS’ ENTITLEMENTS ACT 1986

Paragraph 5 b (1) (b):

Omit “3 September 1945”, substitute “29 October 1945”.

Paragraph 5F (3) (c):

Omit “$100”, substitute “$107.70”.

SCHEDULE 5—continued

Subsection 5F (3):

Add at the end:

“Note: the amount in paragraph (c) is indexed annually in line with CPI increases (see sections 59b to 59e).”.

Subsection 5 g (1) (Note):

Subsection 5m (5):

Omit “than” (second occurring), substitute “that”.

Paragraph 5 p (a):

Omit “from”, substitute “that starts on the day after”.

Subsection 5 q (1) (paragraph (c) of the definition of “determination of entitlement”):

Omit “or allowance”.

After section 5 s :

Insert:

Lodgment of claims and documents

“5t. (1) For the purposes of this Act, a claim, application or other document is taken to have been:

(a) forwarded to, or delivered at, an office of the Department in Australia if the claim, application or document is:

(i) forwarded to, or delivered at, a place approved by the Commission for the purposes of this subsection; or

(ii) delivered to a person approved by the Commission for the purposes of this subsection; and

(b) received at an office of the Department in Australia on the day on which it is received at that place or delivered to that person.

“(2) The Commission may approve a place within or outside Australia for the purposes of subparagraph (1) (a) (i).

“(3) For the purposes of this Act, a claim or application is taken to have been made on the day on which it is received at an office of the Department in Australia.

Notes

“5u. For the purposes of this Act, a Note is taken to be part of:

(a) if the Note immediately follows a section that does not contain subsections—the section; or

SCHEDULE 5—continued

(f) if the Note immediately follows a paragraph and is aligned with the text of the paragraph—the paragraph.”.

Paragraph 35 (1) (d):

Add at the end:

“and to qualifying service claims (for example, review provisions)”.

After paragraph 36 p (1) (d):

Insert:

“and (e) on the pension payday immediately before the first available bereavement adjustment payday, the amount that would be payable to the person if the person were not eligible for payments under this Subdivision is less than the sum of:

(i) the amount that would otherwise be payable to the person under section 36q (continued payment of partner’s pension); and

(ii) the amount that would otherwise be payable to the person under section 36s (person’s continued rate);”.

Paragraph 37 (1) (c):

Omit “work; and”, substitute “work.”.

Paragraph 37 (1) (d):

Omit the paragraph.

After paragraph 37p (1) (d):

Insert:

“and (e) on the pension payday immediately before the first available bereavement adjustment payday, the amount that would be payable to the person if the person were not eligible for payments under this Subdivision is less than the sum of:

(i) the amount that would otherwise be payable to the person under section 37q (continued payment of partner’s pension); and

(ii) the amount that would otherwise be payable to the person under section 37s (person’s continued rate);”.

SCHEDULE 5—continued

Subsection 38 n (3):

Omit “Widow or Non-illness Separated Wife Rate Calculator”, substitute “Service Pension Rate Calculator for Widows and Non-illness Separated Wives”.

Paragraph 39a (1) (c):

Omit “section 58k”, substitute “subsection 58k (2)”.

After paragraph 39r (1) (d):

Insert:

“and (e) on the pension payday immediately before the first available bereavement adjustment payday, the amount that would be payable to the person if the person were not eligible for payments under this Subdivision is less than the sum of:

(i) the amount that would otherwise be payable to the person under section 39s (continued payment of partner’s pension); and

(ii) the amount that would otherwise be payable to the person under section 39u (person’s continued rate);”.

Subsection 39 n (2):

Omit “ ‘Frozen Rate’ Widow Service Pension Calculator”, substitute “Service Pension Rate Calculator for ‘Frozen Rate’ Widows”.

Subsection 40 (1) (Note):

Omit the Note, substitute:

“Note 1: the additional amounts referred to in paragraph (b) are amounts for children and rent assistance.

Subsection 40 c (2) (Table —column 1):

Omit “Widow or Non-illness Separated Wife Service Pension Rate Calculator”, substitute “Service Pension Rate Calculator for Widows and Non-illness Separated Wives”.

Subsection 41 (4):

Omit “ ‘Frozen Rate’ Widow Service Pension Rate Calculator”, substitute “Service Pension Rate Calculator for ‘Frozen Rate’ Widows”.

Subsection 41 (5):

After “partner were receiving” insert “a service pension or”.

Section 41 (Service Pension Rate Calculator Where There Are No Dependent Children —point 41-B1—Table B):

Omit the Table, substitute:

SCHEDULE 5—continued

Section 41 (Service Pension Rate Calculator Where There Are No Dependent Children —point 41-C2):

Section 41 (Service Pension Rate Calculator Where There Are No Dependent Children —point 41-C6—Table C-1):

Omit the Table, substitute:

SCHEDULE 5—continued

Section 41 (Service Pension Rate Calculator Where There Are No Dependent Children —point 41-C10—Method statement—Step 1):

Omit “disability income”, substitute “disability pension income”.

Section 41 (Service Pension Rate Calculator Where There Are No Dependent Children —point 41-C10—Method statement—Step 5):

Omit “disability income excess”, substitute “disability pension income excess”.

Section 41 (Service Pension Rate Calculator Where There Are No Dependent Children —point 41-C10—Method statement—Step 6):

Omit “rent assistance reduction amount”, substitute “rent assistance reduction amount”.

Section 41 (Service Pension Rate Calculator Where There Are No Dependent Children —point 41-C10—Method statement—Step 7):

Omit “rate of rent assistance” (second occurring), substitute “rate of rent assistance”.

Section 41 (Service Pension Rate Calculator Where There Are No Dependent Children —point 41-C12—Table C-2—Note 3):

Add at the end “(see sections 59b to 59e)”.

Section 41 (Service Pension Rate Calculator Where There Are No Dependent Children —point 41-C12—Table C-2—RENT ASSISTANCE EXAMPLES):

Omit the examples, substitute:

“rent assistance examples

William is a service pensioner who is not a member of a couple. He pays $100 per week rent for his flat.

He does not receive any disability pension.

Item 1 in Table C-l applies to William.

Rate A for William is:

Rate B for William is $1,612. The lesser rate is $1,612. This is the yearly rate of William’s rent assistance amount.

John and Mary are members of a pensioner couple. They rent a house for $150 per week.

John receives a 100% disability pension ($5,434 per year) and Mary receives a 50% disability pension ($105.30 per year).

Item 3 applies to them.

Rate A for John is:

SCHEDULE 5—continued

Rate B for John is $650. The lesser rate is $650. This is the maximum rate of rent assistance John can receive. As he and Mary receive disability pension, the rent assistance income test applies.

John’s disability pension income is:

Item 3 of Table C-2 applies. John’s disability pension income excess is:

The reduction in rent assistance would be (rounded to the nearest 10 cents)

Therefore the rent assistance John will receive is $331.20 ($806 - $474.80).

The same calculation applies to Mary’s yearly rate of rent assistance amount.”.

Section 41 (Service Pension Rate Calculator Where There Are No Dependent Children —point 41-D4—Table D-l—Note 3):

Add at the end “(see sections 59b to 59e)”.

Section 41 (Service Pension Rate Calculator Where There Are No Dependent Children —point 41-F3—Table F-1):

Omit the Table, substitute:

SCHEDULE 5—continued

Section 41 (Service Pension Rate Calculator Where There Are No Dependent Children —point 41-G3):

Omit “or a respite care couple”.

Subsection 42 (3):

Omit “ ‘Frozen Rate’ Widow Service Pension Rate Calculator”, substitute “Service Pension Rate Calculator for ‘Frozen Rate’ Widows”.

Subsection 42 (4):

After “partner were receiving”, insert “a service pension or”.

Section 42 (Service Pension Rate Calculator Where There Are Dependent Children —point 42-B1—Table B):

Omit the Table, substitute:

Section 42 (Service Pension Rate Calculator Where There Are Dependent Children —point 42-C2—Table C-1—Key):

After “person is receiving neither”, insert “a”.

Section 42 (Service Pension Rate Calculator Where There Are Dependent Children —point 42-C3—Table C-2):

Omit the Table, substitute:

SCHEDULE 5—continued

Section 42 (Service Pension Rate Calculator Where There Are Dependent Children —point 42-C5—paragraph (b)):

After “illness separated”, insert “or respite care”.

Section 42 (Service Pension Rate Calculator Where There Are Dependent Children —point 42-C7):

Omit the point, substitute:

Rate of guardian allowance

“42-C7. The rate of guardian allowance is $722.80 a year ($27.80 a fortnight).

Section 42 (Service Pension Rate Calculator Where There Are Dependent Children —point 42-D2):

Section 42 (Service Pension Rate Calculator Where There Are Dependent Children —point 42-D6—Table D-1):

Omit the Table, substitute:

SCHEDULE 5—continued

Section 42 (Service Pension Rate Calculator Where There Are Dependent Children —point 42-D10—Method statement—Step 1):

After “disability” (second occurring), insert “pension”.

Section 42 (Service Pension Rate Calculator Where There Are Dependent Children —point 42-D10—Method statement—Step 5):

After “disability” (third occurring), insert “pension”.

Section 42 (Service Pension Rate Calculator Where There Are Dependent Children —point 42-D12—Table D-2—Note 3):

Add at the end “(see sections 59b to 59e)”.

Section 42 (Service Pension Rate Calculator Where There Are Dependent Children —point 42-D16):

“(a) under Part III of this Act; or”.

(b) Omit paragraphs (b), (d) and (e).

SCHEDULE 5—continued

Section 42 (Service Pension Rate Calculator Where There Are Dependent Children —point 42-D16—RENT ASSISTANCE EXAMPLES):

Omit the examples, substitute:

“rent assistance examples

Frederick is a service pensioner who is not a member of a couple. Frederick pays $100 per week rent for a flat and does not receive any disability pension. He has one dependent child.

Item 1 in Table D-l applies to Frederick.

Rate A for Frederick is:

Rate B for Frederick is $1,882.40. The lesser rate is $1,882.40. This is the yearly rate of Frederick’s rent assistance amount.

Peter and Cheryl are members of a pensioner couple. They rent a house for $150 per week. They have one dependent child. Peter receives a 100% disability pension ($5,434 per year) and Cheryl receives a 50% disability pension ($105.30 per year).

Item 3 applies to them.

Rate A for Peter is:

Rate B for Peter is $941.20. The lesser rate is $941.20. This is the provisional rate of rent assistance Peter can receive. As he and Cheryl receive disability pension, the rent assistance income test applies.

Peter’s disability pension income is:

Item 3 of Table D-2 applies. Peter’s disability pension excess is:

The reduction in rent assistance would be (rounded to the nearest 10 cents).

Therefore the rent assistance Peter will receive is $778.40 ($941.20 - 162.80).

The same calculation applies to Cheryl’s yearly rate of rent assistance amount.”.

Section 42 (Service Pension Rate Calculator Where There Are Dependent Children —point 42-E4—Table E-l—Note 3):

Add at the end “(see sections 59b to 59e).”.

Section 42 (Service Pension Rate Calculator Where There Are Dependent Children —point 42-E10—ORDINARY INCOME FREE AREA EXAMPLES—Example 1—last sentence):

Omit “limit”.

SCHEDULE 5—continued

Section 42 (Service Pension Rate Calculator Where There Are Dependent Children —point 42-E10—ORDINARY INCOME FREE AREA EXAMPLES—Example 2—last sentence):

Omit “$1,820-$312”, Substitute “$1,820+$312”.

Section 42 (Service Pension Rate Calculator Where There Are Dependent Children —point 42-G3—Table G-1):

Omit the Table, substitute:

Section 42 (Service Pension Rate Calculator Where There Are Dependent Children —Module H):

Add at the end:

“42-H6. If 2 persons have a veteran pensioner add-on for the same child, additional allowance is not payable to either veteran for that child except as directed by the Commission. The Commission may direct that additional allowance is payable either to one of the veterans or to both of the veterans.”.

Subsection 43 (2):

Omit “ ‘Frozen Rate’ Widow Service Pension Rate Calculator”, substitute “Service Pension Rate Calculator for ‘Frozen Rate’ Widows”.

SCHEDULE 5—continued

Subsection 43 (3):

After “partner were receiving” insert “a service pension or”.

Section 43 (Service Pension Rate Calculator for Blinded Veterans — point 43-B1—Table B):

Omit the Table, substitute:

Section 43 (Service Pension Rate Calculator for Blinded Veterans — point 43-C3—Table C-2):

Omit the Table, substitute:

SCHEDULE 5—continued

Section 43 (Service Pension Rate Calculator for Blinded Veterans — point 43-D2):

SCHEDULE 5—continued

Section 43 (Service Pension Rate Calculator for Blinded Veterans — Module E):

Add at the end:

“43-E6. If 2 persons have a veteran pensioner add-on for the same child, additional allowance is not payable to either veteran for that child except as directed by the Commission. The Commission may direct that additional allowance is payable either to one of the veterans or to both of the veterans.”.

Section 44 (Service Pension Rate Calculator for Widows and Non-illness Separated Wives —point 44-B1—Table B):

Omit the Table, substitute:

Section 44 (Service Pension Rate Calculator for Widows and Non-illness Separated Wives —point 44-C2):

Section 44 (Service Pension Rate Calculator for Widows and Non-illness Separated Wives —point 44-C6—Table C-1):

Omit the Table, substitute:

SCHEDULE 5—continued

Section 44 (Service Pension Rate Calculator for Widows and Non-illness Separated Wives —point 44-C10—Method statement— Step 1):

Omit “disability income”, substitute “disability pension income”.

Section 44 (Service Pension Rate Calculator for Widows and Non-illness Separated Wives —point 44-C10—Method statement— Step 5):

Omit “disability income”, substitute “disability pension income”.

Section 44 (Service Pension Rate Calculator for Widows and Non-illness Separated Wives —point 44-C12—Table C-2—Note 3):

Add at the end “(see sections 59b to 59e)”.

Section 44 (Service Pension Rate Calculator for Widows and Non-illness Separated Wives —point 44-C17):

(a) Omit paragraph (a), substitute:

“(a) under Part III of this Act; or”.

SCHEDULE 5—continued

(b) Omit paragraphs (b), (d) and (e).

Section 44 (Service Pension Rate Calculator for Widows and Non-illness Separated Wives —point 44-D1—Method statement— Step 2):

After “ordinary” insert “income”.

Section 44 (Service Pension Rate Calculator for Widows and Non-illness Separated Wives —point 44-D4):

Add at the end:

“Note: this amount is indexed annually in line with CPI increases (see sections 59b to 59e).”.

Section 44 (Service Pension Rate Calculator for Widows and Non-illness Separated Wives —point 44-F3—Table F-l):

Omit the Table, substitute:

Subsection 46b (2):

Omit “section 5h”, substitute “subsection 5j (1)”.

Section 48:

Add at the end:

“(2) For the purposes of subsection (1), the value of any right or interest of the person of a kind referred to in paragraph 52 (1) (fa) is taken not to be consideration received by the person.”.

SCHEDULE 5—continued

After subsection 52 (1):

Insert:

‘Note: for ‘principal home’ and other assets test definitions see section 5l.”.

After paragraph 52 (1) (f):

Insert:

“(fa) if the person:

(i) has a right to accommodation for life, or a life interest, in a private residence that is the principal home of the person; and

(ii) acquired or retained that right or life interest for valuable consideration;

the value of that right or interest;”.

Section 52 e :

Add at the end:

“(2) For the purposes of subsection (1), the value of any right or interest of the person of a kind referred to in paragraph 52 (1) (fa) is taken not to be consideration received by the person.”.

Section 52 n :

Add at the end:

“(4) In this section, ‘pension “single” property owner AVL’, ‘pension “single” non-property owner AVL’, ‘pension “partnered” property owner AVL’ and ‘pension “partnered” non-property owner AVL’ have the same meaning as in Division 21.”.

Paragraph 52 p (a):

Omit “or”, substitute “for”.

Subparagraph 52 s (5) (e) (iii):

Omit “sections 52”, substitute “subsection 52 (1)”.

Paragraph 52 s (5) (g):

Omit “$92,250”, substitute “$98,625”.

Subsection 52 s (5) (Note):

Add at the end “(see section 59j)”.

Paragraph 52 t (3) (e):

Omit “$92,250”, substitute “$98,625”.

Subsection 52 t (3) (Note):

Add at the end “(see section 59j)”.

SCHEDULE 5—continued

Paragraph 52 u (2) (e):

Omit “$92,250”, substitute “$98,625”.

Subsection 52 u (2) (Note):

Add at the end “(see section 59j)”.

Section 53b (Fringe Benefits Income Test Calculator):

Omit the Calculator, substitute:

FRINGE BENEFITS INCOME TEST CALCULATOR

“53b-1. This is how to work out whether a person satisfies the fringe benefits income test:

Fringe benefits income of person without dependent children

“53b-2. If a person has no dependent children, the person’s fringe benefits income is the person’s annual rate of ordinary income.

Fringe benefits income of person with dependent child or children

“53b-3. Subject to point 53b-4, if a person has a dependent child or dependent children, the person’s fringe benefits income is worked out using Table B-l.

Fringe benefits income of widows and non-illness separated wives

“53b-4. If:

SCHEDULE 5—continued

(e) the partner’s service pension rate includes a child add-on for a child or child add-ons for children;

the person’s fringe benefits income is the person’s annual rate of ordinary income less $156.

Effect of certain child payments on widows and non-illness separated wives

“53b-5. If:

the amount of $156 referred to in point 53b-4 is reduced by 50% of the annual amount of that payment.

How to calculate fringe benefits income under point 53 b -3

“53b-6. If a person has a dependent child or dependent children and point 53b-4 does not apply to the person, use Table B-l to work out the person’s fringe benefits income reduction amount (column 3). Multiply the fringe benefits income reduction amount by the number of dependent children the person has. Take away the result from the person’s annual rate of ordinary income. The result is the person’s fringe benefits income.

Effect of certain child payments on fringe benefits income reduction amount

“53b-7. The fringe benefits income reduction amount for a dependent child of a person is reduced by the annual amount of any payment received by the person or the person’s partner for or in respect of that particular child. The payments referred to in point 53b-9 do not result in a reduction.

SCHEDULE 5—continued

“53b-8. The fringe benefits income reduction amount for a dependent child of a person who is partnered (partner getting pension) is reduced by 50% of the annual amount of any payment received by the person or the person’s partner for or in respect of that particular child. The payments referred to in point 53b-9 do not result in a reduction.

“53b-9. No reduction is to be made under point 53b-5, 53b-7 or 53b-8 for a payment:

Financial hardship cases

“53b-10. For the purposes of point 53b-1, a person’s fringe benefits income is to be taken to include an amount per year that is taken into account under subsection 52z (5).

Changes in income rate (13 week buffer)

“53b-11. If on a particular day a person’s annual rate of fringe benefits income increases from a rate below or equal to the person’s fringe benefits income free area to a rate not more than 25% above that free area, the person is to be taken to satisfy the fringe benefits income test until:

whichever happens first.

Fringe benefits income free area

“53b-12. A person’s fringe benefits income free area is worked out using Table B-2. Work out which family situation in the Table applies to the person. The fringe benefits income free area is the corresponding amount in column 3 plus an additional corresponding amount in column 4 for each dependent child of the person.

SCHEDULE 5—continued

Section 53c (Fringe Benefits Assets Test Calculator — point 53 c -2—Table):

Omit the Table, substitute:

Subsection 53d (1) (Note 1):

Omit “service pensioner”, substitute “veteran”.

Section 56K:

Repeal the section, substitute:

Pension may be cancelled or suspended if instalments not drawn

“56k. If a service pensioner has not drawn instalments of his or her age service pension, invalidity service pension or wife service pension for a continuous period of 6 months, the Commission may cancel or suspend the pension.

SCHEDULE 5—continued

arrangements for payment of the person’s service pension. It is not intended to apply where a pensioner is accumulating pension instalments in a bank account.

No. 27, 1986, as amended. For previous amendments, see Nos. 106 and 130, 1986; Nos. 78, 88 and 130, 1987; Nos. 13, 35, 75, 99, 134 and 135, 1988; Nos. 59, 83, 84, 93, 163 and 164, 1989; Nos. 56, 84 and 119, 1990; and Nos. 2 and 00, 1991.

[Minister’s second reading speech made in—

House of Representatives on 16 May 1991

Senate on 29 May 1991]