Treasury Laws Amendment (Delivering an Efficient and Trusted Tax System) Act 2026

No. 58, 2026

An Act to amend the law relating to taxation, social security and veterans’ affairs, to make minor and technical amendments of the statute law of the Commonwealth, and for related purposes

Contents

1 Short title 2

2 Commencement 2

3 Schedules 3

Schedule 1—Removing the $2 threshold for deductions for gifts or contributions 4

Income Tax Assessment Act 1997 4

Schedule 2—Modernising tax administration systems 6

Income Tax Assessment Act 1936 6

Schedule 3—Minor and technical amendments 9

Part 1—Treasury Laws Amendment (More Competition, Better Prices) Act 2022 9

Treasury Laws Amendment (More Competition, Better Prices) Act 2022 9

Part 2—SMSF Public Trustee director appointments 10

Superannuation Industry (Supervision) Act 1993 10

Part 3—Australian Securities and Investments Commission Act 2001 13

Australian Securities and Investments Commission Act 2001 13

Schedule 4—Exclusion of tobacco and gambling related activities from the Research and Development Tax Incentive 14

Part 1—Amendments 14

Income Tax Assessment Act 1997 14

Part 2—Application provisions 17

Schedule 5—Increasing the Medicare levy low-income thresholds 18

A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999 18

Medicare Levy Act 1986 18

Schedule 6—Pension supplement while overseas 20

Social Security Act 1991 20

Veterans’ Entitlements Act 1986 25

An Act to amend the law relating to taxation, social security and veterans’ affairs, to make minor and technical amendments of the statute law of the Commonwealth, and for related purposes

[Assented to 30 June 2026]

The Parliament of Australia enacts:
1 Short title

This Act is the Treasury Laws Amendment (Delivering an Efficient and Trusted Tax System) Act 2026.
2 Commencement 1

Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information Commencement information Commencement information
Column 1 Column 2 Column 3
Provisions Commencement Date/Details
1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table The day this Act receives the Royal Assent. 30 June 2026
2. Schedules 1 and 2 The first 1 January, 1 April, 1 July or 1 October to occur after the day this Act receives the Royal Assent. 1 July 2026
3. Schedules 3 and 4 The day after this Act receives the Royal Assent. 1 July 2026
4. Schedule 5 The day after this Act receives the Royal Assent. 1 July 2026
5. Schedule 6 As follows: (a) if this Act receives the Royal Assent on or before 20 July 2026—20 September 2026; (b) if this Act receives the Royal Assent after 20 July 2026—the first 20 March or 20 September to occur after the end of the period of 3 months beginning on the day this Act receives the Royal Assent. 20 September 2026 (paragraph (a) applies)

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

 2

Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
3 Schedules

Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Removing the $2 threshold for deductions for gifts or contributions

Income Tax Assessment Act 1997

 1 Section 30-15 (table item 1, column headed “Special conditions”, paragraph (b))

Repeal the paragraph.

 2 Section 30-15 (table item 2, column headed “Special conditions”, paragraph (a))

Repeal the paragraph.

 3 Section 30-15 (table item 4, column headed “Special conditions”, paragraph (b))

Repeal the paragraph.

 4 Section 30-15 (table item 6, column headed “Special conditions”, paragraph (b))

Repeal the paragraph.

 5 Section 30-15 (table item 7, column headed “Special conditions”, paragraph (d))

Repeal the paragraph, substitute:

 instead of making the contribution you had made a gift of money to the fund, authority or institution; and

 the gift had been made for the same purpose for which funds were to be raised by the fund-raising event;

you could have deducted the gift under item 1 or 2 of this table; and

 d

if:

 6 Section 30-15 (table item 8, column headed “Special conditions”, paragraph (b))

Repeal the paragraph, substitute:

 instead of making the contribution you had made a gift of money to the fund, authority or institution; and

 the gift had been made for the same purpose for which funds were to be raised by the fund-raising event;

you could have deducted the gift under item 1 or 2 of this table; and

 b

if:

 7 Application provision

The amendments made by this Schedule apply in relation to a gift or contribution made on or after 1 July 2024.

 Modernising tax administration systems

Income Tax Assessment Act 1936

 1 Section 202DP

Repeal the section, substitute:

 202DP Trustee must report quoted tax file number 1

The trustee must report the beneficiary’s tax file number to the Commissioner, in the approved form, if:

 a

the beneficiary is presently entitled, for the purposes of Division 6 of Part III, to a share of the income of the trust in respect of a year of income; and

 b

the beneficiary has quoted the beneficiary’s tax file number to the trustee at any time before the trustee gives the Commissioner the trust’s return of income for the year; and

 c

the trustee has not reported the beneficiary’s tax file number to the Commissioner under Division 6D of Part III (about trustee beneficiary non-disclosure tax) in relation to the share of the income of the trust for the year.

 2

The trustee must give the report to the Commissioner no later than the earlier of the following, or within such further time as the Commissioner allows:

 a

the time the trustee gives the Commissioner the return;

 b

the time the return is required to be given to the Commissioner.

Note: Refusal or failure to report to the Commissioner as required by this section is an offence under Taxation Administration Act 1953.section 8C of the

 2 Subsections 202DR(1) and (2)

Repeal the subsections, substitute:

Commissioner may notify trustee of correct tax file number

 1

The Commissioner may notify the trustee of the beneficiary’s correct tax file number if the Commissioner is satisfied that:

 a

the tax file number quoted to the trustee:

 i

has been cancelled or withdrawn since it was quoted; or

 ii

is otherwise wrong; and

 b

having regard to the information (if any) that the Commissioner has recorded for the tax file number quoted to the trustee, another number is the tax file number of the beneficiary; and

 c

it is reasonable to notify the trustee of the correct tax file number in the circumstances.

 2

The notice given under subsection (1) is taken to have taken effect on the day on which the cancelled, withdrawn or otherwise wrong tax file number was quoted to the trustee as mentioned in paragraph (1)(a).

 3 Subsection 202DR(4) (heading)

Omit “may”, substitute “must”.

 4 Paragraph 202DR(4)(b)

Repeal the paragraph, substitute:

 b

the Commissioner is not satisfied that:

 i

having regard to the information (if any) that the Commissioner has recorded for the tax file number quoted to the trustee, another number is the tax file number of the beneficiary; or

 ii

it is reasonable to notify the trustee of the correct tax file number under subsection (1); or

 iii

the beneficiary has a tax file number;

 5 Transitional provisions 1

(1) Section 202DP of the Income Tax Assessment Act 1936, as substituted by this Schedule, applies in relation to a year of income of a trust starting on or after 1 July 2026.

 2

(2) Section 202DP of the Income Tax Assessment Act 1936, as in force immediately before the commencement of this Schedule, continues to apply on and after that commencement to a quarter in relation to a trust if the quarter commences in a year of income of the trust starting before 1 July 2026.

 3

(3) The amendments of Income Tax Assessment Act 1936 made by this Schedule apply in relation to the giving of a notice to the trustee of a trust on or after the later of:section 202DR of the

a

the commencement of this Schedule; and

 b

the commencement of the first year of income of the trust to start on or after 1 July 2026.

 4

(4) A notice in effect under Income Tax Assessment Act 1936 immediately before the commencement of this Schedule continues in effect on and after that commencement.section 202DR of the

Minor and technical amendments

Treasury Laws Amendment (More Competition, Better Prices) Act 2022

 1 Paragraph 80(1)(a) of Schedule 2

Omit “Part IX”, substitute “Part XI”.

Superannuation Industry (Supervision) Act 1993

 2 After paragraph 17A(3)(a)

Insert:

 aa

all of the following apply:

 i

a member of the fund has died;

 ii

the legal personal representative of the member is the Public Trustee of a State or Territory;

 iii

an individual is, in place of the member, a trustee of the fund, or a director of the body corporate that is the trustee of the fund, during the period described in subparagraphs (a)(i) and (ii);

 iv

the individual is approved, in writing, by the Public Trustee to be the trustee or director (as the case may be);

 v

the individual is appropriately qualified, and holds all necessary licences, to perform their duties or services as the trustee or director (as the case may be); or

 3 At the end of subsection 17A(3)

Add:

; or (e) the circumstances described in subsection (3A) are satisfied.

 4 After subsection 17A(3)

Insert:

 3A

The circumstances described in this subsection are all of the following:

 a

either:

 i

a member of the fund is under a legal disability and the Public Trustee of a State or Territory is appointed under a law of a State or Territory to manage, to any extent, the member’s estate, property, or financial affairs; or

 ii

the Public Trustee of a State or Territory holds an enduring power of attorney in respect of a member of the fund;

 b

an individual is, in place of the member, a trustee of the fund or a director of the body corporate that is the trustee of the fund;

 c

the individual is approved, in writing, by the Public Trustee to be the trustee or director (as the case may be);

 d

the individual is appropriately qualified, and holds all necessary licences, to perform their duties or services as the trustee or director (as the case may be).

 5 Subsections 17B(1) and (2)

Repeal the subsections, substitute:

Australian Securities and Investments Commission Act 2001

 1

Paragraphs 17A(1)(f) and (2)(c) do not apply to remuneration for any duties or services performed by a trustee of a fund if:

 a

all of the following apply:

 i

the trustee performs the duties or services other than in the capacity of trustee;

 ii

the trustee is appropriately qualified, and holds all necessary licences, to perform the duties or services;

 iii

the trustee performs the duties or services in the ordinary course of a business, carried on by the trustee, of performing similar duties or services for the public;

 iv

the remuneration is no more favourable to the trustee than that which it is reasonable to expect would apply if the trustee were dealing with the relevant other party at arm’s length in the same circumstances; or

 b

the trustee is performing the duties or services only in the circumstances described in paragraph 17A(3)(aa) or subsection 17A(3A).

 2

Paragraphs 17A(1)(g) and (2)(d) do not apply to remuneration for any duties or services performed by a director of a body corporate that is a trustee of a fund if:

 a

all of the following apply:

 i

the director performs the duties or services other than in the capacity of director and in connection with the body corporate’s capacity of trustee;

 ii

the director is appropriately qualified, and holds all necessary licences, to perform the duties or services;

 iii

the director performs the duties or services in the ordinary course of a business, carried on by the director, of performing similar duties or services for the public;

 iv

the remuneration is no more favourable to the director than that which it is reasonable to expect would apply if the director were dealing with the relevant other party at arm’s length in the same circumstances; or

 b

the director is performing the duties or services only in the circumstances described in paragraph 17A(3)(aa) or subsection 17A(3A).

 6 Subsection 14(1)

Omit “he or she may by writing”, substitute “the Minister may, by writing,”.

 7 Subsection 43(3)

Omit “give,”, substitute “give”.

 8 In the appropriate position

Insert:

 366 Application of amendments

The amendment of subsection 14(1) of this Act made by Treasury Laws Amendment (Delivering an Efficient and Trusted Tax System) Act 2026 applies in relation to a direction given on or after the commencement of this section.Part 3 of Schedule 3 to the

Exclusion of tobacco and gambling related activities from the Research and Development Tax Incentive

Income Tax Assessment Act 1997

 1 Before subsection 355-25(1)

Insert:

Core R&D activities

 2 Before subsection 355-25(2)

Insert:

Activities that are not core R&D activities

 3 At the end of subsection 355-25(2)

Add:

; (i) an activity that relates to any of the following, unless the activity is covered by subsection (3) (harm minimisation purpose):

Harm minimisation purpose

Things treated as tobacco

 i

(i) a gambling service (within the meaning of the Interactive Gambling Act 2001);

 ii

gambling;

 iii

a gambling-like practice;

 j

an activity that relates to any of the following, unless the activity is covered by subsection (4) (harm minimisation purpose):

 i

tobacco (see subsections (5) and (6));

 ii

(ii) a tobacco product (Public Health (Tobacco and Other Products) Act 2023);as defined in section 9 of the

iii

(iii) a tobacco product accessory (Public Health (Tobacco and Other Products) Act 2023);as defined in section 10 of the

iv

(iv) a vaping good (Therapeutic Goods Act 1989);as defined in section 41P of the

v

tobacco extract;

 vi

goods where tobacco or tobacco extract is used or added during the manufacturing or processing of the goods (whether or not tobacco or tobacco extract remains in the goods);

 vii

(vii) goods containing nicotine that are intended for use or consumption by humans, other than food in which the only nicotine is naturally occurring.

 3

(3) An activity is covered by this subsection if the activity is conducted solely for the purpose of generating new knowledge about minimising harm from gambling services (within the meaning of the Interactive Gambling Act 2001), gambling or gambling-like practices, in relation to a person or the Australian community.

 4

An activity is covered by this subsection if the activity is conducted solely for the purpose of:

 a

(a) generating new knowledge about the therapeutic use (within the meaning of the Therapeutic Goods Act 1989) of therapeutic goods (within the meaning of that Act) for minimising harm from a thing mentioned in any of subparagraphs (2)(j)(i) to (vii); or

 b

generating new knowledge about ceasing the ingestion or transfer of nicotine into the human body.

 5

For the purposes of this section, treat as tobacco any thing (including moisture) added to the tobacco leaf during manufacturing or processing.

 6

To avoid doubt, for the purposes of this section:

 a

treat tobacco seed, tobacco plant (whether or not in the ground) and tobacco leaf as tobacco; and

 b

treat cigars, cigarettes and snuff as tobacco.

 4 At the end of section 355-30

Add:

Gambling and tobacco related activities etc.

 3

If an activity relates to a matter or thing referred to in any of subparagraphs 355-25(2)(i)(i) to (iii) (which deal with gambling etc.):

 a

subsection (2) does not apply to the activity; and

 b

(b) despite subsection (1), the activity is a supporting R&D activity only if it is covered by subsection 355-25(3) (harm minimisation purpose).

 4

If an activity relates to a thing referred to in any of subparagraphs 355-25(2)(j)(i) to (vii) (which deal with tobacco and vaping goods etc.):

 a

subsection (2) does not apply to the activity; and

 b

(b) despite subsection (1), the activity is a supporting R&D activity only if it is covered by subsection 355-25(4) (harm minimisation purpose).

 5 Application of amendments

The amendments made by this Schedule apply in relation to income years starting on or after 1 July 2025.

 6 Effect of findings by Industry Innovation and Science Australia 1

This item applies in relation to a finding that:

 a

(a) was made by Industry Innovation and Science Australia under the Industry Research and Development Act 1986 before the commencement of this item in relation to an R&D entity; and

 b

(b) relates to an income year (a relevant income year) starting on or after 1 July 2025.

 2

(2) Despite Income Tax Assessment Act 1997, the finding does not bind the Commissioner to the extent that the finding would require the Commissioner to make an assessment of the R&D entity for a relevant income year on the basis that an activity is an R&D activity if, on the commencement of this item, the activity is not an R&D activity for the purposes of the Income Tax Assessment Act 1997 because of the amendments made by this Schedule.section 355-705 of the

Increasing the Medicare levy low-income thresholds

A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999

 1 Paragraphs 15(1)(c) and 16(2)(c)

Omit “$27,222”, substitute “$28,011”.

Medicare Levy Act 1986

 2 Subsection 3(1) (paragraph (a) of the definition of phase-in limit)

Omit “$53,775”, substitute “$55,335”.

 3 Subsection 3(1) (paragraph (c) of the definition of phase-in limit)

Omit “$34,027”, substitute “$35,013”.

 4 Subsection 3(1) (paragraph (a) of the definition of threshold amount)

Omit “$43,020”, substitute “$44,268”.

 5 Subsection 3(1) (paragraph (c) of the definition of threshold amount)

Omit “$27,222”, substitute “$28,011”.

 6 Subsection 8(5) (definition of family income threshold)

Omit “$45,907”, substitute “$47,238”.

 7 Subsection 8(5) (definition of family income threshold)

Omit “$4,216”, substitute “$4,338”.

 8 Subsections 8(6) and (7)

Omit “$45,907”, substitute “$47,238”.

 9 Subsection 8(7)

Omit “$59,886”, substitute “$61,623”.

 10 Paragraph 8D(3)(c)

Omit “$27,222”, substitute “$28,011”.

 11 Subparagraph 8D(4)(a)(ii)

Omit “$27,222”, substitute “$28,011”.

 12 Paragraph 8G(2)(c)

Omit “$27,222”, substitute “$28,011”.

 13 Subparagraph 8G(3)(a)(ii)

Omit “$27,222”, substitute “$28,011”.

 14 Application provision

The amendments made by this Schedule apply in relation to assessments for the 2025-26 year of income and later years of income.

 Pension supplement while overseas

Social Security Act 1991

 1 Subsection 23(1) (definition of pension supplement amount)

After “the amount”, insert “(if any)”.

 2 Point 1064-A1 (method statement, step 1A)

After “pension supplement”, insert “(if any)”.

 3 Points 1064-BA1 and 1064-BA2

Repeal the points, substitute:

Pension supplement

1064-BA1 A pension supplement amount is to be added to the person’s maximum basic rate if the person is residing in Australia and:

1064-BA2 The person’s pension supplement amount is:

 a

is in Australia; or

 b

is temporarily absent from Australia and has been so for a continuous period not exceeding 12 weeks.

 a

if an election by the person under subsection 1061VA(1) is in force—the amount worked out under point 1064-BA4; and

 b

otherwise—the amount worked out under point 1064-BA3.

 4 Point 1064-BA3 (heading)

Repeal the heading, substitute:

Amount if no election in force

 5 Point 1064-BA4 (heading)

Repeal the heading, substitute:

Amount if election in force

 6 Point 1064-BA5

Repeal the point.

 7 Point 1065-A1 (method statement, step 2A)

After “pension supplement”, insert “(if any)”.

 8 Points 1065-BA1 and 1065-BA2

Repeal the points, substitute:

Pension supplement

1065-BA1 A pension supplement amount is to be added to the person’s maximum basic rate if the person is residing in Australia and:

1065-BA2 The person’s pension supplement amount is:

 a

is in Australia; or

 b

is temporarily absent from Australia and has been so for a continuous period not exceeding 12 weeks.

 a

if an election by the person under subsection 1061VA(1) is in force—the amount worked out under point 1065-BA4; and

 b

otherwise—the amount worked out under point 1065-BA3.

 9 Point 1065-BA3 (heading)

Repeal the heading, substitute:

Amount if no election in force

 10 Point 1065-BA4 (heading)

Repeal the heading, substitute:

Amount if election in force

 11 Point 1065-BA5

Repeal the point.

 12 Paragraph 1067L-BA1(b)

Omit “6”, substitute “12”.

 13 Paragraph 1068-BA1(b)

Omit “6”, substitute “12”.

 14 Point 1068A-A1 (method statement, step 1A)

After “pension supplement”, insert “(if any)”.

 15 Points 1068A-BA1 and 1068A-BA2

Repeal the points, substitute:

Pension supplement

1068A-BA1 A pension supplement amount is to be added to the person’s maximum basic rate if the person is residing in Australia and:

1068A-BA2 The person’s pension supplement amount is:

 a

is in Australia; or

 b

is temporarily absent from Australia and has been so for a continuous period not exceeding 12 weeks.

 a

if the person has reached pension age:

 i

if an election by the person under subsection 1061VA(1) is in force—the amount worked out under point 1068A-BA4; and

 ii

otherwise—the amount worked out under point 1068A-BA3; and

 b

if the person has not reached pension age—the amount worked out under point 1068A-BA5.

 16 Point 1068A-BA3 (heading)

Repeal the heading, substitute:

Amount if person of pension age and no election in force

 17 Point 1068A-BA4 (heading)

Repeal the heading, substitute:

Amount if person of pension age and election in force

 18 Point 1068A-BA5 (heading)

Repeal the heading, substitute:

Amount if person has not reached pension age

 19 Point 1068A-BA5

Omit “If the person is not covered by point 1068A-BA2, the”, substitute “The”.

 20 Paragraph 1068B-DA1(b)

Omit “6”, substitute “12”.

 21 After section 1216

Insert:

 1216A Rate of payment may be affected during absence from Australia

A reference in this Division to a person’s right to continue to be paid a payment not being affected merely by the person’s absence does not imply that the person’s rate of payment cannot be affected because of the absence.

Note: A person’s rate of payment is worked out in accordance with the relevant Rate Calculator in Chapter 3.

 22 Subclause 146(4) (note 4) of Schedule 1A

Omit “6”, substitute “12”.

 23 Subclause 146(4) (note 5) of Schedule 1A

Omit “6”, substitute “12”.

 24 Subparagraph 147(1)(c)(ii) of Schedule 1A

Omit “6”, substitute “12”.

 25 Subparagraph 147(2)(c)(ii) of Schedule 1A

Omit “6”, substitute “12”.

 26 Subparagraph 147(3)(b)(ii) of Schedule 1A

Omit “6”, substitute “12”.

 27 Subclause 147(3) of Schedule 1A (method statement)

At the end of the method statement, add:

Step 3. Subtract the amount of the person’s pension supplement basic amount (disregarding subclause 149(4)) on the relevant day.

 28 Subparagraph 147(4)(b)(ii) of Schedule 1A

Omit “6”, substitute “12”.

 29 Subclause 147(4) of Schedule 1A (method statement)

At the end of the method statement, add:

Step 3. Subtract the amount of the person’s pension supplement basic amount (disregarding subclause 149(4)) on the relevant day.

 30 Subclause 149(4) of Schedule 1A

Omit “The”, substitute “Subject to subclauses (4A) and (4B), the”.

 31 After subclause 149(4) of Schedule 1A

Insert:

 4A

If subclause 147(3) or (4) is relevant to the person on a relevant day, the social security law applies in relation to the person’s pension as if each reference in the table in subsection 20A(5) to $507 were a reference to:

 a

that reference as modified by paragraph (4)(a) of this clause on the relevant day; less

 b

the amount subtracted under step 3 of the method statement in subclause 147(3) or (4) (as the case may be) on the relevant day.

 4B

If subclause 147(3) or (4) is relevant to the person on a relevant day, the social security law applies in relation to the person’s pension as if each reference in the table in subsection 20A(5) to $423.80 were a reference to:

 a

that reference as modified by paragraph (4)(b) of this clause on the relevant day; less

 b

the amount subtracted under step 3 of the method statement in subclause 147(3) or (4) (as the case may be) on the relevant day.

 32 Application provision 1

In this item:

commencement day means the day on which this Schedule commences.

in relation to the part of the period occurring on or after the commencement day.

Veterans’ Entitlements Act 1986

 2

(2) The amendments of the Social Security Act 1991 made by this Schedule apply to a person:

 a

who is absent or temporarily absent from Australia for a continuous period beginning on or after the commencement day; or

 b

who is not residing in Australia on or after the commencement day.

 3

(3) The amendments of the Social Security Act 1991 made by this Schedule apply to a person who is absent or temporarily absent from Australia for a continuous period:

 a

beginning before the commencement day; and

 b

ending on or after the commencement day;

 33 Subsection 5Q(1) (definition of pension supplement amount)

After “the amount”, insert “(if any)”.

 34 Subparagraph 58A(7)(b)(ii)

Omit “6”, substitute “12”.

 35 Subparagraph 58A(8)(b)(ii)

Omit “6”, substitute “12”.

 36 After subsection 58K(1)

Insert:

Note: A person’s rate of payment is worked out in accordance with the Rate Calculator.

 2

However, the reference in subsection (1) to a person’s right to continue to be paid a pension or supplement not being affected by the fact that the person leaves Australia does not imply that the person’s rate of payment cannot be affected because of the absence from Australia.

 37 Subparagraph 60(1)(b)(ii)

Omit “6”, substitute “12”.

 38 Subclause 30(4) of Schedule 5 (note 4)

Omit “6”, substitute “12”.

 39 Subclause 30(4) of Schedule 5 (note 5)

Omit “6”, substitute “12”.

 40 Subparagraph 31(1)(c)(ii) of Schedule 5

Omit “6”, substitute “12”.

 41 Subparagraph 31(2)(c)(ii) of Schedule 5

Omit “6”, substitute “12”.

 42 Subparagraph 31(3)(b)(ii) of Schedule 5

Omit “6”, substitute “12”.

 43 Subclause 31(3) of Schedule 5 (method statement)

At the end of the method statement, add:

Step 3. Subtract the amount of the person’s pension supplement basic amount (disregarding subclause 34(4)) on the relevant day.

 44 Subparagraph 31(4)(b)(ii) of Schedule 5

Omit “6”, substitute “12”.

 45 Subclause 31(4) of Schedule 5 (method statement)

At the end of the method statement, add:

Step 3. Subtract the amount of the person’s pension supplement basic amount (disregarding subclause 34(4)) on the relevant day.

 46 Subclause 34(4) of Schedule 5

Omit “This”, substitute “Subject to subclauses (4A) and (4B), this”.

 47 After subclause 34(4) of Schedule 5

Insert:

 4A

If subclause 31(3) or (4) is relevant to the person on a relevant day, this Act applies in relation to the person’s service pension or income support supplement as if each reference in the table in subsection 5GA(4) to $509.60 were a reference to:

 a

that reference as modified by paragraph (4)(a) of this clause on the relevant day; less

 b

the amount subtracted under step 3 of the method statement in subclause 31(3) or (4) (as the case may be) on the relevant day.

 4B

If subclause 31(3) or (4) is relevant to the person on a relevant day, this Act applies in relation to the person’s service pension or income support supplement as if each reference in the table in subsection 5GA(4) to $426.40 were a reference to:

 a

that reference as modified by paragraph (4)(b) of this clause on the relevant day; less

 b

the amount subtracted under step 3 of the method statement in subclause 31(3) or (4) (as the case may be) on the relevant day.

 48 Subpoint SCH6-A1(2) of Schedule 6 (method statement, step 1A)

After “pension supplement”, insert “(if any)”.

 49 Subpoint SCH6-A1(3) of Schedule 6 (method statement, step 2A)

After “pension supplement”, insert “(if any)”.

 50 Subpoint SCH6-A1(6) of Schedule 6 (method statement, step 1A)

After “pension supplement”, insert “(if any)”.

 51 Subpoint SCH6-A1(8) of Schedule 6 (method statement, step 2)

After “pension supplement”, insert “(if any)”.

 52 Subpoint SCH6-A1(9) of Schedule 6 (method statement, step 3)

After “pension supplement”, insert “(if any)”.

 53 Points SCH6-BA1 and SCH6-BA2 of Schedule 6

Repeal the points, substitute:

Pension supplement

SCH6-BA1 A pension supplement amount is to be added to the person’s maximum basic rate if the person is residing in Australia and:

SCH6-BA2 The person’s pension supplement amount is:

 a

is in Australia; or

 b

is temporarily absent from Australia and has been so for a continuous period not exceeding 12 weeks.

 a

if an election by the person under subsection 60A(1) is in force—the amount worked out under point SCH6-BA4; and

 b

otherwise—the amount worked out under point SCH6-BA3.

 54 Point SCH6-BA3 of Schedule 6 (heading)

Repeal the heading, substitute:

Amount if no election in force

 55 Point SCH6-BA4 of Schedule 6 (heading)

Repeal the heading, substitute:

Amount if election in force

 56 Point SCH6-BA5 of Schedule 6

Repeal the point.

 57 Application provision 1

In this item:

commencement day means the day on which this Schedule commences.

in relation to the part of the period occurring on or after the commencement day.

[Minister’s second reading speech made in—

House of Representatives on 25 March 2026

Senate on 22 June 2026]

(37/26)

 2

(2) The amendments of the Veterans’ Entitlements Act 1986 made by this Schedule apply to a person:

 a

who is absent or temporarily absent from Australia for a continuous period beginning on or after the commencement day; or

 b

who is not residing in Australia on or after the commencement day.

 3

(3) The amendments of the Veterans’ Entitlements Act 1986 made by this Schedule apply to a person who is absent or temporarily absent from Australia for a continuous period:

 a

beginning before the commencement day; and

 b

ending on or after the commencement day;