VETERANS' AFFAIRS AND OTHER LEGISLATION AMENDMENT (PENSION REFORM) BILL 2009

2008-2009

The Parliament of the

Commonwealth of Australia

HOUSE OF REPRESENTATIVES

Presented and read a first time

Veterans' Affairs and Other Legislation

Amendment (Pension Reform) Bill 2009

No. , 2009

(Veterans' Affairs)

A Bill for an Act to amend the law relating to

veterans' affairs, social security, military

rehabilitation and compensation and aged care, and

for related purposes

i Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No. ,

2009

Contents

1 Short

title

...........................................................................................

2 Commencement

.................................................................................

3 Schedule(s)

........................................................................................

Schedule 1--Increased pension and income support

supplement

Part 1--Main amendments

Veterans' Entitlements Act 1986

Part 2--Related amendments

Veterans' Entitlements Act 1986

Part 3--Other amendments

Division 1--Veterans' Entitlements Act 1986

Division 2--Social Security Act 1991

Part 4--Application

Schedule 2--Indexation using the Pensioner and Beneficiary

Living Cost Index

Veterans' Entitlements Act 1986

Schedule 3--Indexation using combined couple benchmark

Veterans' Entitlements Act 1986

Schedule 4--Supplements

Part 1--Pension supplement

Veterans' Entitlements Act 1986

Part 2--Quarterly pension supplement and seniors supplement

Veterans' Entitlements Act 1986

Part 3--Veterans supplement

Veterans' Entitlements Act 1986

Part 4--MRCA supplement

Military Rehabilitation and Compensation Act 2004

Part 5--Other amendments

Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No. , 2009

Income Tax Assessment Act 1997

Military Rehabilitation and Compensation Act 2004

Social Security Act 1991

Social Security (Administration) Act 1999

Veterans' Entitlements Act 1986

Part 6--Application, saving and transitional

Division 1--Veterans payments

Division 2--MRCA payments

Division 3--Social security payments

Schedule 5--Adjustments because of Carbon Pollution

Reduction Scheme

Part 1--Main amendments

Veterans' Entitlements Act 1986

Part 2--Related amendments

105

Veterans' Entitlements Act 1986

105

Schedule 6--Income tests

106

Part 1--Taper rate

106

Veterans' Entitlements Act 1986

106

Part 2--Income free area

107

Division 1--Main amendments

107

Veterans' Entitlements Act 1986

107

Division 2--Consequential amendments

108

Veterans' Entitlements Act 1986

108

Part 3--Application of amendments

109

Schedule 7--Work bonus

110

Veterans' Entitlements Act 1986

110

Schedule 8--Pension bonus scheme

114

Veterans' Entitlements Act 1986

114

Schedule 9--Transitional arrangements

115

iii Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No.

, 2009

Part 1--Main amendment

115

Veterans' Entitlements Act 1986

115

Part 2--Related amendments

128

Division 1--Amendments commencing on 20 September 2009

128

Veterans' Entitlements Act 1986

128

Division 2--Amendments commencing on 21 September 2009

128

Veterans' Entitlements Act 1986

128

Part 3--Other amendments

130

Social Security Act 1991

130

Schedule 10--Pension age for persons other than veterans

132

Veterans' Entitlements Act 1986

132

Schedule 11--Advance payments

134

Veterans' Entitlements Act 1986

134

Schedule 12--Amendments relating to aged care

137

Aged Care Act 1997

137

Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No. , 2009

A Bill for an Act to amend the law relating to

veterans' affairs, social security, military

rehabilitation and compensation and aged care, and

for related purposes

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Veterans' Affairs and Other

Legislation Amendment (Pension Reform) Act 2009.

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

2 Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No.

, 2009

column 2 of the table. Any other statement in column 2 has effect

according to its terms.

Commencement information

Column 1

Column 2

Column 3

Provision(s)

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.

2. Schedule 1,

Parts 1 and 2

20 September 2009.

20 September

2009

3. Schedule 1,

Part 3, Division 1

20 September 2009.

20 September

2009

4. Schedule 1,

Part 3, Division 2

Immediately after the commencement of

Schedule 4 to the Social Security and Other

Legislation Amendment (Pension Reform

and Other 2009 Budget Measures) Act 2009.

20 September

2009

5. Schedule 1,

Part 4

20 September 2009.

20 September

2009

6. Schedule 2

The day this Act receives the Royal Assent.

7. Schedule 3

1 January 2010.

1 January 2010

8. Schedule 4,

Parts 1, 2, 3 and 4

20 September 2009.

20 September

2009

9. Schedule 4,

items 54 to 111

Immediately after the commencement of

Schedule 4 to the Social Security and Other

Legislation Amendment (Pension Reform

and Other 2009 Budget Measures) Act 2009.

20 September

2009

10. Schedule 4,

item 112

Immediately after the commencement of

Schedule 5 to the Social Security and Other

Legislation Amendment (Pension Reform

and Other 2009 Budget Measures) Act 2009.

However, if that Schedule does not

commence, the provision(s) do not

commence at all.

Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No. , 2009

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

11. Schedule 4,

items 113 to 206

Immediately after the commencement of

Schedule 4 to the Social Security and Other

Legislation Amendment (Pension Reform

and Other 2009 Budget Measures) Act 2009.

20 September

2009

12. Schedule 4,

Part 6

20 September 2009.

20 September

2009

13. Schedule 5

Immediately after the commencement of

Part 1 of Schedule 3 to the Carbon Pollution

Reduction Scheme Amendment (Household

Assistance) Act 2009.

However, if that Part does not commence,

the provision(s) do not commence at all.

14. Schedules 6

and 7

20 September 2009.

20 September

2009

15. Schedule 8

The day this Act receives the Royal Assent.

16. Schedule 9,

Part 1

20 September 2009.

20 September

2009

17. Schedule 9,

Part 2, Division 1

20 September 2009.

20 September

2009

18. Schedule 9,

Part 2, Division 2

21 September 2009.

21 September

2009

19. Schedule 9,

Part 3

Immediately after the commencement of

Part 1 of Schedule 10 to the Social Security

and Other Legislation Amendment (Pension

Reform and Other 2009 Budget Measures)

Act 2009.

20 September

2009

20. Schedule 10

The day this Act receives the Royal Assent.

21. Schedule 11

1 July 2010.

1 July 2010

22. Schedule 12

20 September 2009.

20 September

2009

Note:

This table relates only to the provisions of this Act as originally

passed by both Houses of the Parliament and assented to. It will not be

expanded to deal with provisions inserted in this Act after assent.

4 Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No.

, 2009

(2) Column 3 of the table contains additional information that is not

part of this Act. Information in this column may be added to or

edited in any published version of this Act.

3 Schedule(s)

Each Act 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.

Increased pension and income support supplement Schedule 1

Main amendments Part 1

Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No. , 2009

Schedule 1--Increased pension and income

support supplement

Part 1--Main amendments

Veterans' Entitlements Act 1986

1 Subsection 30(1)

After "sum of", insert "the following amounts per fortnight".

2 Paragraph 30(1)(a)

Repeal the paragraph, substitute:

(a)

of the amount specified in column 3 of item 1 of the table

in point SCH6-B1 of Schedule 6;

3 Paragraph 30(1)(b)

Omit "per fortnight; and", substitute ";".

4 Paragraph 30(1)(c)

Repeal the paragraph, substitute:

(c)

$25.60.

5 At the end of subsection 30(1)

Add:

Note:

Each of the amounts referred to in paragraphs (1)(a), (b) and (c) is

subject to indexation (see Division 18 of Part IIIB for indexation of

the amount referred to in paragraph (1)(a), and section 198 for

indexation of the amounts in paragraphs (1)(b) and (c)).

6 Subsection 30(1A)

Repeal the subsection.

7 After section 198FA

Insert:

Schedule 1 Increased pension and income support supplement

Part 1 Main amendments

6 Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No.

, 2009

198FB Rates for service pension and income support supplement

increased on 20 September 2009

Maximum basic rate for single person

(1) This Act has effect as if, on 20 September 2009, the indexed

amount substituted under section 59C for the amount specified in

column 3 of item 1 of the table in point SCH6-B1 of Schedule 6 on

that day were in turn replaced with an amount equal to the indexed

amount plus $1,560.00.

Ceiling rate

(2) This Act has effect as if, on 20 September 2009, the amount

substituted under section 59LA for the amount specified in point

SCH6-A4 of Schedule 6 on that day were in turn replaced with an

amount worked out as follows:

Method statement

Step 1. Work out the amount substituted under section 59LA for

the amount specified in point SCH6-A4 of Schedule 6 on

20 September 2009 (apart from this subsection).

Step 2. Work out what would have been the indexed rate

substituted under section 198E for the rate of utilities

allowance under column 3 of item 1 of the table in

section 118OC on 20 September 2009 had those sections

not been repealed.

Step 3. Work out, on the assumption that section 198F and

subsection 118SA(1) had not been repealed:

(a)

what would have been the rate substituted under

that section for the rate payable under that

subsection on 20 September 2009; or

(b)

if there would not have been such a substitution,

the rate that would have been payable under that

subsection on that day.

Increased pension and income support supplement Schedule 1

Main amendments Part 1

Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No. , 2009

Note:

Subsection 118SA(1) dealt with telephone allowance for

certain persons with internet connections at home.

Step 4. Add up:

(a)

the results of steps 1, 2 and 3; and

(b)

$130.

Step 5. If the result of step 4 is not a multiple of $2.60, round that

result up to the nearest multiple of $2.60.

Schedule 1 Increased pension and income support supplement

Part 2 Related amendments

8 Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No.

, 2009

Part 2--Related amendments

Veterans' Entitlements Act 1986

8 Subsection 198(1) (paragraph (e) of the definition of

relevant rate)

Repeal the paragraph, substitute:

(e) the amount specified in paragraph 30(1)(c).

9 Subsection 198(4) (note 1)

Omit "Note 1:", substitute "Note:".

10 Subsection 198(4) (note 2)

Repeal the note.

11 Subsections 198(5A), (5D), (6), (7) and (8)

Repeal the subsections.

Increased pension and income support supplement Schedule 1

Other amendments Part 3

Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No. , 2009

Part 3--Other amendments

Division 1--Veterans' Entitlements Act 1986

12 Section 45UF (cell at table item 1, column headed "The

person's annual pension rate is:")

Repeal the cell, substitute:

the rate that would be the person's

provisional payment rate under method

statement 1 in subpoint SCH6-A1(2),

ascertained as at the date of the grant, if

it were assumed that the person's

maximum payment rate were the sum

of:

(a) the person's maximum basic rate

under Module B of the Rate

Calculator; and

(b) the person's pension supplement

basic amount

13 Section 45UF (cell at table item 2, column headed "The

person's annual pension rate is:")

Repeal the cell, substitute:

the sum of:

(a) the person's maximum basic rate

under Module B of the Rate

Calculator; and

(b) the person's pension supplement

basic amount;

ascertained as at the date of the grant

14 Section 45UF (cell at table item 3, column headed "The

person's annual pension rate is:")

Repeal the cell, substitute:

Schedule 1 Increased pension and income support supplement

Part 3 Other amendments

10 Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No.

, 2009

the lesser of the following rates (or, if

the rates are the same, the first rate):

(a) the person's ceiling rate under point

SCH6-A4, ascertained as at the date

of the grant;

(b) the rate that would be the person's

provisional payment rate under

method statement 1 in subpoint

SCH6-A1(2), ascertained as at the

date of the grant, if it were assumed

that the method statement applied

and the person's maximum

payment rate were the sum of:

(i) the person's maximum basic

rate under Module B of the

Rate Calculator; and

(ii) the person's pension

supplement basic amount

15 Section 45UF (cell at table item 5, column headed "The

person's annual pension rate is:")

Repeal the cell, substitute:

the rate that would be the person's

provisional payment rate under method

statement 5 in subpoint SCH6-A1(6),

ascertained as at the date of the grant, if

it were assumed that the person's

maximum payment rate were the sum

of:

(a) the person's maximum basic rate

under Module B of the Rate

Calculator; and

(b) the person's pension supplement

basic amount

16 Subsection 45UH(1) (table item 1, column headed "The

person's annual notional single pension rate is:")

Omit "pension supplement under Module BA", substitute "pension

supplement basic amount".

Increased pension and income support supplement Schedule 1

Other amendments Part 3

Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No. , 2009

17 Subsection 45UH(1) (table item 2, column headed "The

person's annual notional single pension rate is:")

Omit "amounts worked out under steps 2 and 2A of method statement 2

in subpoint SCH6-A1(3)", substitute "person's maximum basic rate

under point SCH6-B1 and the person's pension supplement basic

amount".

18 Subsection 45UH(2) (paragraph (a) of the definition of

provisional payment rate)

Omit "pension supplement under Module BA", substitute "pension

supplement basic amount".

19 Subsection 45UH(2) (paragraph (b) of the definition of

provisional payment rate)

Omit "amounts under steps 2 and 2A of method statement 2 in subpoint

SCH6-A1(3)", substitute "person's maximum basic rate under point

SCH6-B1 and the person's pension supplement basic amount".

20 Subsection 45UH(2) (subparagraph (c)(iv) of the definition

of provisional payment rate)

Omit "pension supplement under point 1064-BA2 of that Act",

substitute "pension supplement basic amount".

21 Subsection 45UH(2) (subparagraph (d)(iv) of the definition

of provisional payment rate)

Omit "pension supplement under point 1065-BA2 of that Act",

substitute "pension supplement basic amount".

22 Subsection 45UH(3) (definition of maximum basic rate)

Omit "amounts worked out under steps 2 and 2A of method statement 2

in subpoint SCH6-A1(3)", substitute "person's maximum basic rate

under point SCH6-B1 and the person's pension supplement basic

amount".

23 Subsection 45UI(1) (table item 1, column headed "The

person's annual notional partnered pension rate is:")

Omit "pension supplement under Module BA", substitute "pension

supplement basic amount".

Schedule 1 Increased pension and income support supplement

Part 3 Other amendments

12 Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No.

, 2009

24 Subsection 45UI(1) (table item 2, column headed "The

person's annual notional partnered pension rate is:")

Omit "amounts worked out under steps 2 and 2A of method statement 2

in subpoint SCH6-A1(3)", substitute "person's maximum basic rate

under point SCH6-B1 and the person's pension supplement basic

amount".

25 Subsection 45UI(2) (paragraph (a) of the definition of

provisional payment rate)

Omit "pension supplement under Module BA", substitute "pension

supplement basic amount".

26 Subsection 45UI(2) (paragraph (b) of the definition of

provisional payment rate)

Omit "amounts under steps 2 and 2A of method statement 2 in subpoint

SCH6-A1(3)", substitute "person's maximum basic rate under point

SCH6-B1 and the person's pension supplement basic amount".

27 Subsection 45UI(2) (subparagraph (c)(iv) of the definition

of provisional payment rate)

Omit "pension supplement under point 1064-BA2 of that Act",

substitute "pension supplement basic amount".

28 Subsection 45UI(2) (subparagraph (d)(iv) of the definition

of provisional payment rate)

Omit "pension supplement under point 1065-BA2 of that Act",

substitute "pension supplement basic amount".

29 Subsection 45UI(3) (definition of maximum basic rate)

Omit "amounts worked out under steps 2 and 2A of method statement 2

in subpoint SCH6-A1(3)", substitute "person's maximum basic rate

under point SCH6-B1 and the person's pension supplement basic

amount".

30 Section 45UIA (paragraph (a) of the definition of

provisional payment rate)

Increased pension and income support supplement Schedule 1

Other amendments Part 3

Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No. , 2009

Omit "steps 2 and 3 were omitted from the method statement",

substitute "the person's maximum payment rate were the sum of the

person's maximum basic rate under point SCH6-B1 and the person's

pension supplement basic amount".

31 Section 45UIA (paragraph (b) of the definition of

provisional payment rate)

Omit "amounts under steps 2 and 2A of method statement 2 in subpoint

SCH6-A1(3)", substitute "person's maximum basic rate under point

SCH6-B1 and the person's pension supplement basic amount".

32 Section 45UIA (paragraph (c) of the definition of

provisional payment rate)

Omit "steps 2 and 3 were omitted from the method statement",

substitute "the person's maximum payment rate were the sum of the

person's maximum basic rate under Table B in point 1064-B1 of the

Social Security Act 1991 and the person's pension supplement basic

amount".

33 Section 45UIA (paragraph (d) of the definition of

provisional payment rate)

Omit "pension supplement under point 1065-BA2", substitute "pension

supplement basic amount".

Division 2--Social Security Act 1991

34 Subparagraphs 93J(3)(a)(ii) and (b)(ii) and (4)(a)(ii) and

(b)(ii)

Repeal the subparagraphs, substitute:

(ii) the amount worked out for the person using the table in

subsection 93H(4);

35 Subsection 93J(5) (definition of maximum basic rate)

Omit "amounts worked out under steps 1 and 1A of the method

statement in point 1064-A1", substitute "person's maximum basic rate

worked out using Module B of Pension Rate Calculator A in

section 1064 and the amount worked out for the person using the table

in subsection 93H(4)".

Schedule 1 Increased pension and income support supplement

Part 4 Application

14 Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No.

, 2009

Part 4--Application

36 Amendments of the Veterans' Entitlements Act 1986

(1)

The amendments of the Veterans' Entitlements Act 1986 made by this

Schedule (except Division 1 of Part 3) apply for the purposes of

working out the rates of payments under that Act for days on or after

20 September 2009.

(2)

To avoid doubt, section 198FB of the Veterans' Entitlements Act 1986

applies in working out the amount specified in paragraph 30(1)(a) of

that Act (as amended by this Schedule) for 20 September 2009.

(3)

Subitem (2) does not limit the application of section 198FB of the

Veterans' Entitlements Act 1986.

(4)

The amendments of the Veterans' Entitlements Act 1986 made by

Division 1 of Part 3 of this Schedule apply for the purposes of working

out the amount of pension bonus for a person who starts to receive a

designated pension on or after 20 September 2009.

(5)

Despite subitem (1), the amount specified in paragraph 30(1)(c) of the

Veterans' Entitlements Act 1986 is not to be indexed under section 198

of that Act before 20 March 2010.

Note:

Subitem (5) affects the application of the amendment by this Schedule of subsection

198(1) of the Veterans' Entitlements Act 1986 only so far as the amendment relates to

the indexation of the amount specified in paragraph 30(1)(c) of that Act, and not so far

as the amendment prevents the indexation under section 198 of that Act on and after

20 September 2009 of the rate specified in paragraph 30(1)(a) of that Act.

37 Amendments of the Social Security Act 1991

The amendments of the Social Security Act 1991 made by Division 2 of

Part 3 of this Schedule apply for the purposes of working out the

amount of pension bonus for a person whose start day for the age

pension is on or after 20 September 2009.

Indexation using the Pensioner and Beneficiary Living Cost Index Schedule 2

Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No. , 2009

Schedule 2--Indexation using the Pensioner

and Beneficiary Living Cost Index

Veterans' Entitlements Act 1986

1 After paragraph 59(a)

Insert:

(aa) the indexation of the maximum basic rates for service

pension and income support supplement using the Pensioner

and Beneficiary Living Cost Index; and

2 Subsection 59C(2) (method statement, step 5)

After "amount:", insert "subject to section 59EAA,".

3 Subsection 59C(2) (method statement, step 5)

After "The indexed amount", insert "(including one replaced under

section 59EAA)".

4 After section 59E

Insert:

59EAA Indexation using Pensioner and Beneficiary Living Cost

Index

(1) This section applies to the pension MBR amount (see item 1 of the

table in section 59A).

(2) If the indexed amount for the pension MBR amount, worked out

under section 59C on an indexation day and disregarding

section 59EA and this section, is less than the living cost amount

worked out on that indexation day using the following method

statement, then that indexed amount is taken to be an amount equal

to that living cost amount:

Schedule 2 Indexation using the Pensioner and Beneficiary Living Cost Index

16 Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No.

, 2009

Method statement

Step 1. Use section 59EAB to work out the living cost indexation

factor on that indexation day.

Step 2. Work out the current figure for the pension MBR amount

immediately before that indexation day.

Note: For

current figure see subsection 5NA(1).

Step 3. Multiply the current figure by the living cost indexation

factor: the result is the provisional living cost amount.

Step 4. Use section 59EAC to round off the provisional living

cost amount: the result is the living cost amount.

Note:

If the indexed amount for the pension MBR amount, worked out under

section 59C, is taken to be an amount equal to that living cost amount,

there may be a further increase of that replaced indexed amount under

section 59EA.

59EAB Living cost indexation factor

(1) Subject to subsections (5) and (6), the living cost indexation factor

on an indexation day is:

Living cost index number for reference quarter

Living cost index number for base quarter

worked out to 3 decimal places.

Definitions

(2) For the purposes of this section, the living cost index number, in

relation to a quarter, is the All Groups Pensioner and Beneficiary

Living Cost Index number that is the weighted average of the 8

capital cities and is published by the Australian Statistician in

respect of that quarter.

(3) For the purposes of this section, the reference quarter is:

(a) if the indexation day is a 20 March--the most recent

December quarter before the indexation day; and

Indexation using the Pensioner and Beneficiary Living Cost Index Schedule 2

Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No. , 2009

(b) if the indexation day is a 20 September--the most recent

June quarter before the indexation day.

(4) For the purposes of this section, the base quarter is the June or

December quarter that:

(a) is a quarter before the reference quarter; and

(b) has the highest living cost index number.

Rounding

(5) If a living cost 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, that indexation factor is to be increased by

0.001.

(6) If a living cost indexation factor worked out under subsections (1)

and (5) would be less than 1, that indexation factor is to be

increased to 1.

Publication of substituted living cost index numbers

(7) Subject to subsection (8), if at any time (whether before or after the

commencement of this section) the Australian Statistician

publishes a living cost index number for a quarter in substitution

for a living cost index number previously published by the

Australian Statistician for that quarter, the publication of the later

living cost index number is to be disregarded for the purposes of

this section.

Change to reference base

(8) If at any time (whether before or after the commencement of this

section) the Australian Statistician changes the reference base for

the Pensioner and Beneficiary Living Cost Index, regard is to be

had, for the purposes of applying this section after the change takes

place, only to living cost index numbers published in terms of the

new reference base.

59EAC Rounding off amounts

(1) If a provisional living cost amount is a multiple of $2.60, the

provisional living cost amount becomes the living cost amount.

Schedule 2 Indexation using the Pensioner and Beneficiary Living Cost Index

18 Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No.

, 2009

(2) Subject to subsection (3), if a provisional living cost amount is not

a multiple of $2.60, the living cost amount is the provisional living

cost amount rounded up or down to the nearest multiple of $2.60.

(3) If a provisional living cost amount is not a multiple of $2.60 but is

a multiple of $1.30, the living cost amount is the provisional living

cost amount rounded up to the nearest multiple of $2.60.

5 Point SCH6-B1 of Schedule 6 (at the end of note 2)

Add "See also sections 59EAA to 59EAC (about Pensioner and

Beneficiary Living Cost Index indexation).".

6 Application

The amendments made by items 2 to 4 apply in relation to the

indexation day that is 20 September 2009 and all later indexation days.

7 Transitional--adjustment of ceiling rate on 20 September

2009

Section 59LA of the Veterans' Entitlements Act 1986 applies in relation

to the adjustment day that is 20 September 2009 as if the current single

pension MBR amount on that day were the amount that would have

been the current single pension MBR amount on that day if the

amendments made by Part 1 of Schedule 1 to this Act had not been

made.

Indexation using combined couple benchmark Schedule 3

Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No. , 2009

Schedule 3--Indexation using combined

couple benchmark

Veterans' Entitlements Act 1986

1 Section 59A (table item 1, column 2)

After "income support supplement", insert "for a person who is

partnered".

2 Section 59A (table item 1, column 4)

Omit:

Rate Calculator--point SCH6-B1--Table B--column 3--all amounts

substitute:

Rate Calculator--point SCH6-B1--Table B--column 3--item 2

3 Section 59A (after table item 1)

Insert:

1A. Maximum

basic

rates for service

pension or income

support supplement

for a person who is

not partnered

single pension

rate MBR

Rate Calculator--point

SCH6-B1--Table B--column 3--

item 1

4 Subsection 59EA(1) (definition of category A amount)

Repeal the definition.

5 Subsection 59EA(2)

Repeal the subsection, substitute:

(2)

If:

(a) a category B amount is to be indexed under this Subdivision

on an indexation day; and

(b) 50% of the combined couple benchmark for that indexation

day exceeds the indexed amount for the category B amount;

then:

Schedule 3 Indexation using combined couple benchmark

20 Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No.

, 2009

increased by an amount equal to the excess; and

(d) if the indexed amount for the category B amount (as

increased under paragraph (c)) is not a multiple of $2.60, the

indexed amount (as increased under paragraph (c)) is to be

further increased by rounding up to the next highest multiple

of $2.60.

(2A) For the purposes of this section, the combined couple benchmark,

for an indexation day, is 41.76% of the annualised MTAWE figure

for whichever of the following quarters is applicable:

(a) if the indexation day is a 20 March--the most recent

December quarter;

(b) if the indexation day is a 20 September--the most recent

June quarter.

6 Before section 59GA

Insert:

59G Adjustment of single pension rate MBR amount

(1) This Act has effect as if, on 20 March (an indexation day) and

20 September (an indexation day) each year, the adjusted single

pension amount were substituted for the single pension rate MBR

amount (see item 1A of the table in section 59A).

(2) For the purposes of this section, the adjusted single pension

amount is worked out as follows:

Method statement

Step 1. Work out the amount substituted for the pension MBR

amount (see item 1 of the table in section 59A) on that

indexation day under section 59C.

Step 2. Multiply the amount worked out at step 1 by 2.

Step 3. Work out 66.33% of the amount worked out at step 2.

Indexation using combined couple benchmark Schedule 3

Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No. , 2009

Step 4. Round the amount worked out at step 3 to the nearest

multiple of $2.60 (rounding up if necessary): the result is

the adjusted single pension amount.

7 Subsections 59LA(1) and (2)

Repeal the subsections, substitute:

(1) This Act has effect as if, on each adjustment day, the amount

worked out in accordance with the following formula, and rounded

up to the nearest multiple of $2.60, were substituted for the ceiling

rate:

Previous ceiling rate

Pension MBR factor

�

where:

pension MBR factor is:

Current single pension rate MBR amount

Previous single pension rate MBR amount

previous ceiling rate is the ceiling rate applicable on the day

before the adjustment day.

(2) In subsection (1):

current single pension rate MBR amount means the single

pension rate MBR amount (see item 1A of the table in

section 59A) applicable on the adjustment day.

previous single pension rate MBR amount means the single

pension rate MBR amount (see item 1A of the table in

section 59A) applicable on the day before the adjustment day.

8 Point SCH6-B1 of Schedule 6 (note 2)

Repeal the note, substitute:

Note 2:

The maximum basic rates are adjusted 6 monthly: see sections 59B to

59G.

Schedule 4 Supplements

Part 1 Pension supplement

22 Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No.

, 2009

Schedule 4--Supplements

Part 1--Pension supplement

Veterans' Entitlements Act 1986

1 After section 5G

Insert:

5GA Pension supplement rate definitions

(1) In this Act, the combined couple rate of pension supplement is

$2,199.60.

Note 1:

This rate is indexed 6 monthly in line with CPI increases (see

sections 59B to 59E).

Note 2:

This rate is an annual rate.

(2) In this Act, the combined couple rate of minimum pension

supplement is $1,185.60.

Note 1:

This rate is indexed 6 monthly in line with CPI increases (see

sections 59B to 59E).

Note 2:

This rate is an annual rate.

(3) In this Act, a person's minimum pension supplement amount is

the amount worked out by:

(a) applying the applicable percentage in the following table to

the combined couple rate of minimum pension supplement;

and

(b)

if:

(i) the person is not partnered; and

(ii) the amount resulting from paragraph (a) is not a

multiple of $2.60;

rounding the amount up or down to the nearest multiple of

$2.60 (rounding up if the amount is not a multiple of $2.60

but is a multiple of $1.30).

Item

Person's family situation

Use this %

Not member of couple

66.33%

Supplements Schedule 4

Pension supplement Part 1

Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No. , 2009

Item

Person's family situation

Use this %

2 Partnered

50%

Member of illness separated couple

66.33%

Member of respite care couple

66.33%

Note:

A person's minimum pension supplement amount is an annual rate.

(4) In this Act, a person's pension supplement basic amount depends

on which family situation in the following table applies to the

person. The person's pension supplement basic amount is the

corresponding amount set out in the table.

Item

Person's family situation

Amount

Not member of couple

$509.60

2 Partnered

$426.40

Member of illness separated couple

$509.60

Member of respite care couple

$509.60

Note 1:

Each amount in the table will be indexed 6 monthly in line with CPI

increases (see sections 59B to 59E).

Note 2:

A person's pension supplement basic amount is an annual rate.

(5) In this Act, the daily rate of tax-exempt pension supplement, for a

person who is receiving a service pension or income support

supplement is the amount a day worked out using the table.

Tax-exempt pension supplement

Item

Payment received

Amount a day of tax-exempt

pension supplement

Service pension

The amount worked out by:

(a) subtracting the person's pension

supplement basic amount from

the person's pension supplement

amount; and

(b) dividing the result of

paragraph (a) by 364

2 Income

support

supplement

The person's minimum pension

supplement amount divided by 364

Schedule 4 Supplements

Part 1 Pension supplement

24 Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No.

, 2009

Note:

The portion of the person's service pension or income support

supplement equal to the tax-exempt pension supplement is exempt

from income tax (see sections 52-65 and 52-70 of the Income Tax

Assessment Act 1997).

(6) If a person is receiving a service pension at a rate that:

(a) is worked out under subpoint SCH6-A1(4) of Schedule 6 and

is the revised rate; or

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

subsection (5) applies in relation to the person and the pension as if

the person had a pension supplement amount equal to what would

be the person's pension supplement amount if the person were

receiving the service pension at the rate worked out under subpoint

SCH6-A1(4) of Schedule 6 and equal to the provisional rate.

2 Paragraph 1(1)(aa) of Schedule 6

Repeal the paragraph.

3 Subclause 1(1) of Schedule 6 (note 1)

Omit "rent assistance and pharmaceutical allowance", substitute

"pension supplement and rent assistance".

4 Clause 4 of Schedule 6

Repeal the clause, substitute:

4 Application for income tax purposes of reductions in respect of

service pension or income support supplement

Service pension

(1) If a person's rate of service pension is affected by a reduction

under any or all of the following:

(a) Module E (ordinary/adjusted income test) of the Rate

Calculator;

(b) Module F (assets test) of the Rate Calculator;

the reduction is to be applied as follows (in descending order):

Supplements Schedule 4

Pension supplement Part 1

Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No. , 2009

Item

Component of the rate

all of the rate apart from the person's pension supplement

amount and any increase under Module C (rent assistance)

of the Rate Calculator

the portion of the person's pension supplement amount

equal to the person's pension supplement basic amount

(a) if an election by the person under subsection 60A(1) is in

force--any remaining portion of the person's pension

supplement amount; or

(b) otherwise--any remaining portion of the person's

pension supplement amount to the extent to which it

exceeds the person's minimum pension supplement

amount

the amount of any increase under Module C

the person's minimum pension supplement amount

Note:

Table item 5 will not apply if an election by the person under

subsection 60A(1) is in force, as the rate would have already been

reduced to nil.

(2) If a person's rate of service pension:

(a) is worked out under subpoint SCH6-A1(4) of Schedule 6 and

is the revised rate; or

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

subclause (1) applies in relation to the person and the pension as if:

(d) the person had a pension supplement amount equal to what

would be the person's pension supplement amount if the

person were receiving the service pension at the rate worked

out under subpoint SCH6-A1(4) of Schedule 6 and equal to

the provisional rate.

Income support supplement

(3) If a person's rate of income support supplement is affected by a

reduction under any or all of the following:

(a) Module E (ordinary/adjusted income test) of the Rate

Calculator;

(b) Module F (assets test) of the Rate Calculator;

Schedule 4 Supplements

Part 1 Pension supplement

26 Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No.

, 2009

the reduction is to be applied as follows (in descending order):

Item

Component of the rate

all of the rate apart from any increase under Module C (rent

assistance) of the Rate Calculator and the person's minimum

pension supplement amount

the amount of any increase under Module C

the person's minimum pension supplement amount

Quarterly pension supplement

(4)

If:

(a) the rate (the main rate) of a person's service pension or

income support supplement is to be reduced as described in

subclause (1) (applying of its own force or as affected by

subclause (2)) or subclause (3); and

(b) an election by the person under subsection 60A(1) is in force;

the person's quarterly pension supplement is reduced to the same

extent (if any) that the component of the main rate that would

correspond to the person's minimum pension supplement amount

would be reduced under subclause (1) or (3) were the election not

in force.

Note:

The reduction will be disregarded unless the person's quarterly

pension supplement is reduced to nil (see subsection 60C(4)).

5 Subpoint SCH6-A1(4) of Schedule 6 (method statement 3,

step 5)

Repeal the step, substitute:

Step 5. Add:

(a)

the ceiling rate; and

(b)

any amount obtained under step 2A; and

(c)

any amount obtained under step 4;

and, if an election by the person under subsection 60A(1)

(about quarterly pension supplement) is in force, subtract

Supplements Schedule 4

Pension supplement Part 1

Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No. , 2009

the person's minimum pension supplement amount. The

result is the revised rate.

6 Subpoint SCH6-A1(5) of Schedule 6 (method statement 4,

step 4)

Repeal the step, substitute:

Step 4. Add:

(a)

the ceiling rate; and

(b)

any amount obtained under step 1A; and

(c)

any amount obtained under step 3;

and, if an election by the person under subsection 60A(1)

(about quarterly pension supplement) is in force, subtract

the person's minimum pension supplement amount. The

result is the person's rate of service pension.

Note:

The amount of a fortnightly instalment of service

pension may be reduced by an advance payment

deduction (see Division 6 of Part IVA).

7 Subpoint SCH6-A1(6) of Schedule 6 (method statement 5,

step 9A)

Repeal the step, substitute:

Step 9A. Add:

(a)

the ceiling rate; and

(b)

any amount obtained under step 2;

and, if an election by the person under subsection 60A(1)

(about quarterly pension supplement) is in force, subtract

the person's minimum pension supplement amount. The

result is the increased rate.

Schedule 4 Supplements

Part 1 Pension supplement

28 Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No.

, 2009

8 Subpoint SCH6-A1(7) of Schedule 6 (method statement 6,

step 4)

Repeal the step, substitute:

Step 4. Add:

(a)

the ceiling rate; and

(b)

any amount obtained under step 1A; and

(c)

any amount obtained under step 3;

and, if an election by the person under subsection 60A(1)

(about quarterly pension supplement) is in force, subtract

the person's minimum pension supplement amount. The

result is the person's rate of income support supplement.

Note:

The amount of a fortnightly instalment of income

support supplement may be reduced by an advance

payment deduction (see Division 6 of Part IVA).

9 Part 2 of Schedule 6 (Module BA)

Repeal the Module, substitute:

Module BA--Pension supplement

Pension supplement

SCH6-BA1 A pension supplement amount is to be added to the person's

maximum basic rate.

Residents in Australia etc.

SCH6-BA2 If the person is residing in Australia and:

(a) is in Australia; or

(b) is temporarily absent from Australia and has been so for a

continuous period not exceeding 13 weeks;

the person's pension supplement amount is:

force--the amount worked out under point SCH6-BA4; and

Supplements Schedule 4

Pension supplement Part 1

Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No. , 2009

(d) otherwise--the amount worked out under point SCH6-BA3.

Residents in Australia etc.--no election in force

SCH6-BA3 The person's pension supplement amount is the amount worked

out by:

(a) applying the applicable percentage in the following table to

the combined couple rate of pension supplement; and

(b)

if:

(i) the person is not partnered; and

(ii) the amount resulting from paragraph (a) is not a

multiple of $2.60;

rounding the amount up or down to the nearest multiple of

$2.60 (rounding up if the amount is not a multiple of $2.60

but is a multiple of $1.30).

Item

Person's family situation

Use this %

Not member of couple

66.33%

2 Partnered

50%

Member of illness separated couple

66.33%

Member of respite care couple

66.33%

Note: For

combined couple rate of pension supplement, see subsection

5GA(1).

Residents in Australia etc.--election in force

SCH6-BA4 The person's pension supplement amount is the amount worked

out as follows:

(a) work out the amount for the person under point SCH6-BA3

as if the election were not in force;

(b) from that amount, subtract the person's minimum pension

supplement amount.

Persons absent from Australia for more than 13 weeks

SCH6-BA5 If the person is not covered by point SCH6-BA2, the person's

pension supplement amount is the person's pension supplement

basic amount.

Schedule 4 Supplements

Part 2 Quarterly pension supplement and seniors supplement

30 Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No.

, 2009

Part 2--Quarterly pension supplement and seniors

supplement

Veterans' Entitlements Act 1986

10 After Part IIIC

Insert:

Part IIID--Quarterly pension supplement

60 When this Part applies

(1) This Part applies to a person if:

(a) the person is receiving a service pension or income support

supplement (the main payment); and

(b) the person is residing in Australia and:

(i) is in Australia; or

(ii) is temporarily absent from Australia and has been so for

a continuous period not exceeding 13 weeks.

(2) For the purposes of subsection (1), it does not matter if the rate of

the person's main payment would become nil were an election by

the person under subsection 60A(1) to come into force.

60A Quarterly pension supplement

(1) The person may, in a manner or way approved by the Commission,

make an election to receive the person's minimum pension

supplement amount on a quarterly basis as a separate payment.

(2) An election comes into force as soon as practicable after it is made.

(3) An election ceases to be in force if the main payment ceases to be

payable to the person.

(4) The person may, in a manner or way approved by the Commission,

revoke an election. A revocation takes effect as soon as practicable

after it happens.

Supplements Schedule 4

Quarterly pension supplement and seniors supplement Part 2

Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No. , 2009

(5) Quarterly pension supplement is payable to the person in relation

to each day on which an election is in force.

60B Rate of quarterly pension supplement

(1) The person's annual rate of quarterly pension supplement is the

person's minimum pension supplement amount.

(2) The person's daily rate of quarterly pension supplement is worked

out by dividing the person's annual rate by 364.

(3) This section has effect subject to subclause 4(4) of Schedule 6.

60C Payment of quarterly pension supplement

(1) Quarterly pension supplement is to be paid by instalments.

(2) An instalment of quarterly pension supplement is to be paid to a

person as soon as is reasonably practicable on or after the first

supplement test day (the current test day) that follows a day on

which an election by the person under subsection 60A(1) is in

force.

(3) The amount of the instalment is worked out by multiplying the

person's daily rate of quarterly pension supplement by the number

of days during the test period for which an election by the person

under subsection 60A(1) is in force.

(4)

If:

(a) an election by the person under subsection 60A(1) is in force

on a particular day; and

(b) apart from this subsection, the portion of the instalment of the

person's quarterly pension supplement that corresponds to

that day would be reduced under subclause 4(4) of

Schedule 6, but not reduced to a nil amount;

the amount of that portion of the instalment is not to be reduced

under subclause 4(4) of Schedule 6.

(5) In this section:

supplement test day means:

(a) 20 March; or

Schedule 4 Supplements

Part 2 Quarterly pension supplement and seniors supplement

32 Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No.

, 2009

(b) 20 June; or

(d)

December.

test period means the period:

(a) starting on the most recent supplement test day before the

current test day; and

(b) ending on the day immediately before the current test day.

11 Part VIIAD

Repeal the Part, substitute:

Part VIIAD--Seniors supplement

Division 1--Eligibility

118P Eligibility for seniors supplement

Person holds a seniors health card

(1) A person is eligible for seniors supplement if:

(a) the person is the holder of a seniors health card; and

(b) the person is not receiving any of the following:

(i) a service pension;

(ii) income support supplement;

(iii) a social security pension or social security benefit;

(iv) seniors supplement under the Social Security Act.

Person holds a gold card

(2) A person is eligible for seniors supplement if:

(a) the person is the holder of a gold card; and

(b) the person has reached qualifying age; and

(c)

the

person:

(i) is in Australia; or

(ii) is temporarily absent from Australia and has been so for

a continuous period not exceeding 13 weeks; and

(d) the person is not receiving any of the following:

Supplements Schedule 4

Quarterly pension supplement and seniors supplement Part 2

Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No. , 2009

(i) a service pension;

(ii) income support supplement;

(iii) a social security pension or social security benefit;

(iv) seniors supplement under the Social Security Act.

(3) In this section:

gold card means a card known as the Repatriation Health Card--

For All Conditions, that evidences a person's eligibility, under this

Act or the Military Rehabilitation and Compensation Act 2004, to

be provided with treatment for all injuries or diseases.

118PA When seniors supplement is payable

(1) Seniors supplement is payable to a person in relation to each day

on which the person is eligible for the supplement.

(2) However, seniors supplement is not payable to the person in

relation to a day if:

(a) before that day:

(i) the person had elected not to be covered by this Part;

and

(ii) that election had not been withdrawn; or

(b) subsection 122A(1C) (failing to nominate a bank account)

applies to the person.

Division 2--Rate of seniors supplement

118PB Rate of seniors supplement

(1) The person's annual rate of seniors supplement is the amount

worked out by:

(a) applying the applicable percentage in the following table to

the combined couple rate of minimum pension supplement;

and

(b)

if:

(i) the person is not partnered; and

(ii) the amount resulting from paragraph (a) is not a

multiple of $2.60;

Schedule 4 Supplements

Part 2 Quarterly pension supplement and seniors supplement

34 Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No.

, 2009

rounding the amount up or down to the nearest multiple of

$2.60 (rounding up if the amount is not a multiple of $2.60

but is a multiple of $1.30).

Item

Person's family situation

Use this %

Not member of couple

66.33%

2 Partnered

50%

Member of illness separated couple

66.33%

Member of respite care couple

66.33%

Note: For

combined couple rate of minimum pension supplement, see

subsection 5GA(2).

(2) The person's daily rate of seniors supplement is worked out by

dividing the person's annual rate by 364.

Division 3--Payment of seniors supplement

118PC Payment of seniors supplement

(1) Seniors supplement is to be paid by instalments.

(2) An instalment of seniors supplement is to be paid to a person as

soon as is reasonably practicable on or after the first seniors

supplement test day (the current test day) that follows a day on

which the person is eligible for seniors supplement.

(3) The amount of the instalment is worked out by multiplying the

person's daily rate of seniors supplement by the number of days

during the test period for which the person was eligible for seniors

supplement.

(4) In this section:

seniors supplement test day means:

(a) 20 March; or

(b) 20 June; or

(d)

December.

test period means the period:

Schedule 4 Supplements

Part 3 Veterans supplement

36 Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No.

, 2009

Part 3--Veterans supplement

Veterans' Entitlements Act 1986

12 Part VIIA

Repeal the Part, substitute:

Part VIIA--Veterans supplement

Division 1--Eligibility for veterans supplement

118A Veterans supplement for dependants of deceased veterans or

for persons eligible for pharmaceutical benefits

(1) Subject to this section, a person is eligible for veterans supplement

under this section if:

(a) the person is receiving a pension whose rate is specified

under subsection 30(2); or

(b) but for subsection 13(7), a pension would have been payable

to the person at a rate specified under subsection 30(2); or

scheme known as the Repatriation Pharmaceutical Benefits

Scheme.

(2) A person is not eligible for veterans supplement under this section

if:

(a) the person is receiving a social security payment; or

(b) the person is receiving service pension; or

Note: For

war widow/war widower--pensioner see section 5Q.

(3) A person who leaves Australia otherwise than temporarily is not

eligible for veterans supplement under this section after the day on

which he or she left Australia.

(4) A person who is temporarily absent from Australia and has been so

absent for more than 26 weeks is not eligible for veterans

supplement under this section after the first 26 weeks of the

absence.

Supplements Schedule 4

Veterans supplement Part 3

Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No. , 2009

118B Veterans supplement for certain Part II and Part IV

pensioners or for World War 1 veterans

(1) Subject to this section, a person is eligible for veterans supplement

under this section if:

(a) the person is eligible for a pension at a rate specified in

subsection 22(4); or

(b) the person is eligible for a pension at a rate specified in

section 24; or

increased under subsection 27(2) by an amount specified in

any of items 1 to 8 of the table in subsection 27(1); or

(d) the person is eligible for a pension at the rate specified in

subsection 30(1) and the person is under qualifying age.

Note: For

qualifying age see section 5Q.

(2) Subject to this section, a person is eligible for veterans supplement

under this section if the person is:

(a) a veteran who rendered eligible war service during World

War 1; or

(b) a Commonwealth veteran who rendered continuous full-time

service during World War 1; or

during World War 1.

Note: For

World War 1 see subsections 5B(1) and (3).

(3) A person is not eligible for veterans supplement under this section

if:

(a) the person is receiving a social security payment; or

(b) the person is receiving service pension or income support

supplement; or

the Social Security Act; or

(d) the person is receiving MRCA supplement under Division 4

of Part 7 of Chapter 4, or Division 5 of Part 2 of Chapter 5, of

the MRCA.

(4) A person who leaves Australia otherwise than temporarily is not

eligible for veterans supplement under this section after the day on

which he or she left Australia.

Schedule 4 Supplements

Part 3 Veterans supplement

38 Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No.

, 2009

(5) A person who is temporarily absent from Australia and has been so

absent for more than 26 weeks is not eligible for veterans

supplement under this section after the first 26 weeks of the

absence.

Division 2--Rate of veterans supplement

118C Rate of veterans supplement--section 118A

The rate of veterans supplement under section 118A is $6.00 per

fortnight.

Note:

The amount specified in this section is adjusted annually in line with

CPI increases under section 198F.

118D Rate of veterans supplement--section 118B

The rate of veterans supplement under section 118B is $6.00 per

fortnight.

Note:

The amount specified in this section is adjusted annually in line with

CPI increases under section 198F.

13 Part VIIB

Repeal the Part.

14 Subsection 121(7) (definition of pension)

After "includes", insert "veterans supplement under Part VIIA or".

15 Section 198F

Repeal the section, substitute:

198F Indexation of veterans supplement

(1) This section applies to the dollar amount mentioned in the

following provisions:

(a)

section

118C;

(b)

section

118D.

(2) The dollar amount mentioned in that provision, for an indexation

day on which the indexation factor is greater than one, is replaced

by the amount that is worked out using the following formula:

Supplements Schedule 4

Veterans supplement Part 3

Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No. , 2009

Dollar amount for that provision

Indexation factor for

on the day before the indexation day

the indexation day

�

(3)

The

indexation factor for an indexation day is the number worked

out using the following formula:

(

)

Index number for the most recent June quarter

before the indexation day

Highest index number for an earlier June quarter

but not earlier than June quarter 2008

(4) The indexation factor is to be calculated to 3 decimal places, but

increased by 0.001 if the 4th decimal place is more than 4.

(5) If an amount worked out under subsection (2) is not a multiple of

20 cents, the amount is to be rounded down to the nearest multiple

of 20 cents.

(6) In this section:

indexation day means 1 January 2010 and each later 1 January.

Schedule 4 Supplements

Part 4 MRCA supplement

40 Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No.

, 2009

Part 4--MRCA supplement

Military Rehabilitation and Compensation Act 2004

16 Division 4 of Part 7 of Chapter 4 (heading)

Repeal the heading, substitute:

Division 4--MRCA supplement for members and former

members

17 Section 220A

Repeal the section.

18 Subsection 221(1)

Omit "a telephone allowance", substitute "MRCA supplement under

this section".

Note:

The heading to section 221 is altered by omitting "telephone allowance" and

substituting "MRCA supplement".

19 Paragraph 221(1)(b)

Omit "1986); and", substitute "1986).".

20 Paragraph 221(1)(c)

Repeal the paragraph.

21 Subsection 221(1) (note)

Omit "telephone allowance", substitute "MRCA supplement".

22 Subsection 221(2)

Omit "a telephone allowance", substitute "MRCA supplement under

this section".

23 Paragraph 221(2)(b)

Omit "1986); and", substitute "1986).".

24 Paragraph 221(2)(c)

Repeal the paragraph.

Supplements Schedule 4

MRCA supplement Part 4

Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No. , 2009

25 Subsection 221(2) (note)

Omit "telephone allowance", substitute "MRCA supplement".

26 Subsection 222(1)

Omit "a telephone allowance on or after the next telephone allowance

payday", substitute "MRCA supplement under section 221 after the day

on which he or she left Australia".

Note:

The heading to section 222 is altered by omitting "Telephone allowance" and

substituting "MRCA supplement".

27 Subsection 222(2)

Omit "a telephone allowance", substitute "MRCA supplement under

section 221".

28 Subsection 222(3)

Omit "the telephone allowance", substitute "MRCA supplement under

section 221".

Note:

The heading to subsection 222(3) is altered by omitting "telephone allowance" and

substituting "MRCA supplement".

29 Subsections 222(4) and (5)

Repeal the subsections, substitute:

Persons receiving other payments

(4) Even though a person is eligible for MRCA supplement under

subsection 221(2), the supplement is not payable to the person if he

or she is receiving MRCA supplement under subsection 221(1).

(5) Even though a person is eligible for MRCA supplement under

section 221, the supplement is not payable to the person if he or

she is receiving:

(a) veterans supplement under section 118B of the Veterans'

Entitlements Act 1986; or

(b) a telephone allowance under the Social Security Act 1991; or

30 Sections 223 to 225

Repeal the sections, substitute:

Schedule 4 Supplements

Part 4 MRCA supplement

42 Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No.

, 2009

223 Rate of MRCA supplement

The rate of MRCA supplement that is payable under section 221 is

the rate of veterans supplement that is payable from time to time

under section 118D of the Veterans' Entitlements Act 1986.

224 Payment of MRCA supplement

A person's MRCA supplement under section 221 is payable on

each pension payday (within the meaning of subsection 5Q(1) of

the Veterans' Entitlements Act 1986) on which:

(a) the person is eligible for the MRCA supplement; and

(b) the MRCA supplement is payable to the person.

Note:

If a trustee is appointed under section 432, then the MRCA

supplement would be payable to the trustee.

31 Division 5 of Part 2 of Chapter 5 (heading)

Repeal the heading, substitute:

Division 5--MRCA supplement for wholly dependent

partners

32 Section 244A

Repeal the section.

33 Section 245

Omit "a telephone allowance", substitute "MRCA supplement under

this section".

Note:

The heading to section 245 is altered by omitting "telephone allowance" and

substituting "MRCA supplement".

34 Paragraph 245(b)

Omit "1986); and", substitute "1986).".

35 Paragraph 245(c)

Repeal the paragraph.

36 Section 245 (note)

Omit "telephone allowance", substitute "MRCA supplement".

Supplements Schedule 4

MRCA supplement Part 4

Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No. , 2009

37 Subsection 246(1)

Omit "a telephone allowance on or after the next telephone allowance

payday", substitute "MRCA supplement under section 245 after the day

on which he or she left Australia".

Note:

The heading to section 246 is altered by omitting "Telephone allowance" and

substituting "MRCA supplement".

38 Subsection 246(2)

Omit "a telephone allowance", substitute "MRCA supplement under

section 245".

39 Subsection 246(3)

Omit "the telephone allowance", substitute "MRCA supplement under

section 245".

Note:

The heading to subsection 246(3) is altered by omitting "telephone allowance" and

substituting "MRCA supplement".

40 Subsections 246(4) and (5)

Repeal the subsections, substitute:

Persons receiving other payments

(4) Even though a wholly dependent partner is eligible for MRCA

supplement under section 245, the supplement is not payable to the

partner if he or she is receiving:

(a) veterans supplement under section 118B of the Veterans'

Entitlements Act 1986; or

(b) a telephone allowance under the Social Security Act 1991; or

41 Sections 247 to 249

Repeal the sections, substitute:

247 Rate of MRCA supplement

The rate of MRCA supplement that is payable under section 245 is

the rate of veterans supplement that is payable from time to time

under section 118D of the Veterans' Entitlements Act 1986.

Schedule 4 Supplements

Part 4 MRCA supplement

44 Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No.

, 2009

248 Payment of MRCA supplement

A wholly dependent partner's MRCA supplement under

section 245 is payable on each pension payday (within the meaning

of subsection 5Q(1) of the Veterans' Entitlements Act 1986) on

which:

(a) the partner is eligible for the MRCA supplement; and

(b) the MRCA supplement is payable to the partner.

Note:

If a trustee is appointed under section 432, then the MRCA

supplement would be payable to the trustee.

42 Division 4 of Part 4 of Chapter 6 (heading)

Repeal the heading, substitute:

Division 4--MRCA supplement for members, former

members and dependants

43 Section 300

Omit "a pharmaceutical allowance", substitute "MRCA supplement

under this section".

Note:

The heading to section 300 is altered by omitting "pharmaceutical allowance" and

substituting "MRCA supplement".

44 Section 300 (note)

Omit "pharmaceutical allowance", substitute "MRCA supplement".

45 Subsection 301(1)

Omit "a pharmaceutical allowance", substitute "MRCA supplement

under section 300".

Note:

The heading to section 301 is altered by omitting "Pharmaceutical allowance" and

substituting "MRCA supplement".

46 Subsection 301(2)

Omit "a pharmaceutical allowance", substitute "MRCA supplement

under section 300".

47 Subsection 301(3)

Omit "the pharmaceutical allowance", substitute "MRCA supplement

under section 300".

Supplements Schedule 4

MRCA supplement Part 4

Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No. , 2009

Note:

The heading to subsection 301(3) is altered by omitting "pharmaceutical allowance"

and substituting "MRCA supplement".

48 Subsections 301(4) and (5)

Repeal the subsections, substitute:

When MRCA supplement is not payable

(4) Even though a person is eligible for MRCA supplement under

section 300, the supplement is not payable to the person if:

(a) he or she is receiving veterans supplement under

section 118A of the Veterans' Entitlements Act 1986; or

(b) he or she is receiving a pharmaceutical allowance under the

Social Security Act 1991; or

member.

49 Section 302

Omit "pharmaceutical allowance", substitute "MRCA supplement".

Note:

The heading to section 302 is altered by omitting "pharmaceutical allowance" and

substituting "MRCA supplement".

50 Section 302

After "is the rate", insert "of veterans supplement".

51 Section 303

Omit "pharmaceutical allowance", substitute "MRCA supplement under

section 300".

Note:

The heading to section 303 is altered by omitting "pharmaceutical allowance" and

substituting "MRCA supplement".

52 Paragraphs 303(a) and (b)

Omit "allowance", substitute "MRCA supplement".

53 Section 303 (note)

Omit "allowance", substitute "MRCA supplement".

Schedule 4 Supplements

Part 5 Other amendments

46 Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No.

, 2009

Part 5--Other amendments

Income Tax Assessment Act 1997

54 Section 52-65 (table item 12.1)

Repeal the item, substitute:

12.1

Quarterly pension

supplement

Exempt Not

applicable

55 Section 52-65 (table item 16A.1)

Repeal the item, substitute:

16A.1

Seniors supplement Exempt

Not

applicable

56 Section 52-65 (table item 18.1)

Repeal the item.

57 Section 52-65 (table item 20A.1)

Repeal the item.

58 Section 52-65 (after table item 21.1)

Insert:

21A.1

Veterans supplement Exempt

Not

applicable

59 At the end of section 52-70

Add:

; and (d) so much of the payment as is equal to the tax-exempt pension

supplement for the payment.

60 Section 52-75 (table item 12)

Repeal the item, substitute:

12 Quarterly

pension

supplement

Part IIID

Not applicable

61 Section 52-75 (table item 16A)

Repeal the item, substitute:

16A

Seniors

Part VIIAD

Not applicable

Supplements Schedule 4

Other amendments Part 5

Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No. , 2009

supplement

62 Section 52-75 (table item 18)

Repeal the item.

63 Section 52-75 (table item 20A)

Repeal the item.

64 Section 52-75 (after table item 21)

Insert:

21A

Veterans supplement

Part VIIA

Not applicable

65 Section 52-114 (table item 10)

Omit "Telephone allowance", substitute "MRCA supplement".

66 Section 52-114 (table item 10)

Omit "and 245", substitute ", 245 and 300".

67 Section 52-114 (table item 20)

Repeal the item.

Military Rehabilitation and Compensation Act 2004

68 Section 3

Omit "an allowance such as a telephone allowance, a pharmaceutical

allowance,", substitute "veterans supplement,".

69 Subsection 5(1) (paragraph (c) of the definition of

compensation)

Repeal the paragraph, substitute:

70 Subsection 5(1) (paragraph (e) of the definition of

compensation)

Omit "Chapter 6;", substitute "Chapter 6.".

71 Subsection 5(1) (paragraph (f) of the definition of

compensation)

Schedule 4 Supplements

Part 5 Other amendments

48 Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No.

, 2009

Repeal the paragraph.

72 Section 269

Omit "a pharmaceutical allowance", substitute "MRCA supplement".

73 Section 278

Omit "a pharmaceutical allowance", substitute "MRCA supplement".

74 Paragraph 388(5)(a)

Omit "telephone allowance", substitute "MRCA supplement".

75 Paragraph 398(2)(a)

Omit "telephone allowance", substitute "MRCA supplement".

76 Paragraph 401(2)(a)

Omit "telephone allowance", substitute "MRCA supplement".

77 Subsection 402(2)

Omit "telephone allowance", substitute "MRCA supplement".

78 Paragraph 403(3)(b)

Omit "telephone allowance", substitute "MRCA supplement".

Social Security Act 1991

79 Subparagraph 8(8)(y)(viia)

Repeal the subparagraph, substitute:

(viia) veterans supplement under Part VIIA of that Act; or

80 Subparagraph 8(8)(y)(viib)

Omit "seniors concession allowance", substitute "seniors supplement".

81 Subsection 44(2)

Repeal the subsection, substitute:

(2) Subsection (1) does not apply to a person if the person's rate would

be nil merely because an election by the person under subsection

1061VA(1) is in force.

Supplements Schedule 4

Other amendments Part 5

Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No. , 2009

82 Subsection 98(2)

Repeal the subsection, substitute:

(2) Subsection (1) does not apply to a person if the person's rate would

be nil merely because an election by the person under subsection

1061VA(1) is in force.

83 Subsection 148(2)

Repeal the subsection, substitute:

(2) Subsection (1) does not apply to a person if the person's rate would

be nil merely because an election by the person under subsection

1061VA(1) is in force.

84 Subsection 199(2)

Repeal the subsection, substitute:

(2) Subsection (1) does not apply to a person if the person's rate would

be nil merely because an election by the person under subsection

1061VA(1) is in force.

85 Subsection 316(2)

Repeal the subsection, substitute:

(2) Subsection (1) does not apply to a person if the person's rate would

be nil merely because an election by the person under subsection

1061VA(1) is in force.

86 Subsection 364(2)

Repeal the subsection, substitute:

(2) Subsection (1) does not apply to a person if the person's rate would

be nil merely because an election by the person under subsection

1061VA(1) is in force.

87 Paragraph 408CA(2)(b)

Omit "or Division 2 of Part VIIA of the Veterans' Entitlements Act".

88 Paragraph 500I(2)(b)

Omit "or Division 2 of Part VIIA of the Veterans' Entitlements Act".

Schedule 4 Supplements

Part 5 Other amendments

50 Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No.

, 2009

89 Subsection 547(2)

Repeal the subsection, substitute:

(2) Subsection (1) does not apply to a person if the person's rate would

be nil merely because an advance pharmaceutical allowance has

been paid to the person under the social security law.

90 Paragraph 572(2)(b)

Omit "or Division 2 of Part VIIA of the Veterans' Entitlements Act".

91 Paragraph 608(2)(b)

Omit "or Division 2 of Part VIIA of the Veterans' Entitlements Act".

92 Paragraph 677(2)(b)

Omit "or Division 2 of Part VIIA of the Veterans' Entitlements Act".

93 Paragraph 732(2)(b)

Omit "or Division 2 of Part VIIA of the Veterans' Entitlements Act".

94 Paragraph 771HC(2)(b)

Omit "or Division 2 of Part VIIA of the Veterans' Entitlements Act".

95 Subsection 1061G(2)

Repeal the subsection.

96 Section 1061JC (paragraphs (a) to (c) of the note)

Repeal the paragraphs.

97 Subsection 1061JD(1)

Omit "(1)".

98 Subsection 1061JD(2)

Repeal the subsection.

99 Section 1061R

Repeal the section, substitute:

Supplements Schedule 4

Other amendments Part 5

Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No. , 2009

1061R Telephone allowance not payable in some circumstances

Even though a person is qualified for a telephone allowance, the

allowance is not payable to the person if:

(a) the person is receiving a social security payment for which a

pension supplement amount is used to work out the rate of

the payment, with a pension supplement amount that is more

than the person's pension supplement basic amount; or

(b) the following subparagraphs apply to the person:

(i) the person is qualified for the telephone allowance

because of the application of subsection 1061Q(3C),

(3F) or (3G) to the person in relation to a social security

payment the person has ceased to receive;

(ii) immediately before the cessation of the payment, a

pension supplement amount was used to work out the

rate of the payment;

(iii) that pension supplement amount was more than the

person's pension supplement basic amount; or

force; or

(d) the person is receiving seniors supplement under this Act or

the Veterans' Entitlements Act; or

(e) the person is receiving MRCA supplement under section 221

or 245 of the Military Rehabilitation and Compensation Act;

(f) the person is receiving veterans supplement under

section 118B of the Veterans' Entitlements Act; or

(g)

both:

(i) the person is a member of a couple (other than an illness

separated, temporarily separated or respite care couple);

and

(ii) the person's partner is receiving veterans supplement

under either subsection 118B(2) of the Veterans'

Entitlements Act or a determination under subsection

5R(1) of that Act.

Note 1:

For the purposes of subparagraph (b)(i), subsections 1061Q(3C) and

(3G) have an extended application (see subsections 1061Q(3D), (3E)

and (3H)).

Schedule 4 Supplements

Part 5 Other amendments

52 Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No.

, 2009

Note 2:

For member of a couple, illness separated couple, temporarily

separated couple and respite care couple, see section 4.

Note 3:

Subsection 118B(2) of the Veterans' Entitlements Act covers certain

categories of World War I veterans.

Note 4:

The relevant determination under subsection 5R(1) of the Veterans'

Entitlements Act provides eligibility for veterans supplement to

certain categories of World War I Australian mariners.

100 Subsection 1061S(1) (cell at table item 4, column 2)

Repeal the cell, substitute:

Partnered, and:

(a) partner getting pension or benefit; or

(b) partner is a holder of a seniors health card;

and:

(d) if the partner were taken to be qualified for telephone

allowance, section 1061R would not prevent telephone

allowance from being payable to the partner

101 Subsection 1061S(1) (cell at table item 5, column 2)

Repeal the cell, substitute:

Partnered, and:

(a) partner getting pension or benefit; or

(b) partner is a holder of a seniors health card;

and:

(d) if the partner were taken to be qualified for telephone

allowance, section 1061R would prevent telephone

allowance from being payable to the partner

102 Subsection 1061S(1) (cell at table item 7, column 2)

Repeal the cell, substitute:

Partnered, and:

(a) partner not getting veterans supplement under

section 118B of the Veterans' Entitlements Act; and

(b) partner not getting MRCA supplement under section 221

or 245 of the Military Rehabilitation and Compensation

Act

Supplements Schedule 4

Other amendments Part 5

Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No. , 2009

103 Subsection 1061S(1) (cell at table item 8, column 2)

Repeal the cell, substitute:

Partnered, and:

(a) partner getting veterans supplement under section 118B

of the Veterans' Entitlements Act; or

(b) partner getting MRCA supplement under section 221 or

245 of the Military Rehabilitation and Compensation Act

104 Subsection 1061SA(1) (cell at table item 4, column 2)

Repeal the cell, substitute:

Partnered, and:

(a) partner getting pension or benefit; or

(b) partner is a holder of a seniors health card;

and:

(d) if the partner were taken to be qualified for telephone

allowance, section 1061R would not prevent telephone

allowance from being payable to the partner

105 Subsection 1061SA(1) (cell at table item 5, column 2)

Repeal the cell, substitute:

Partnered, and:

(a) partner getting pension or benefit; or

(b) partner is a holder of a seniors health card;

and:

rate; or

(d) if the partner were taken to be qualified for telephone

allowance, section 1061R would prevent telephone

allowance from being payable to the partner

106 Subsection 1061SA(1) (cell at table item 7, column 2)

Repeal the cell, substitute:

Partnered, and:

(a) partner not getting veterans supplement under

section 118B of the Veterans' Entitlements Act; and

(b) partner not getting MRCA supplement under section 221

or 245 of the Military Rehabilitation and Compensation

Schedule 4 Supplements

Part 5 Other amendments

54 Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No.

, 2009

Act

107 Subsection 1061SA(1) (cell at table item 8, column 2)

Repeal the cell, substitute:

Partnered, and:

(a) partner getting veterans supplement under section 118B

of the Veterans' Entitlements Act; or

(b) partner getting MRCA supplement under section 221 or

245 of the Military Rehabilitation and Compensation Act

108 Subsection 1061SA(1) (table item 11)

Repeal the item.

109 Subsection 1061SA(3)

Omit "or 11".

110 Paragraph 1061TA(2)(b)

Omit "seniors concession allowance", substitute "seniors supplement".

111 After subsection 1061VA(2)

Insert:

(2A) An election ceases to be in force if the main payment ceases to be

payable to the person.

112 Paragraph 1061ZAAZA(2)(ea)

Omit "seniors concession allowance", substitute "seniors supplement".

113 Point 1064-A1 (note 5)

Omit "1168", substitute "1173".

Note:

This item fixes an incorrect cross-reference.

114 Subparagraph 1064-H1(aa)(ii)

Repeal the subparagraph, substitute:

(ii) apart from this point, the person's rate of pension would

be nil merely because an election by the person under

subsection 1061VA(1) is in force; and

Supplements Schedule 4

Other amendments Part 5

Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No. , 2009

115 Subparagraph 1065-E1(aa)(ii)

Repeal the subparagraph, substitute:

(ii) apart from this point, the person's rate of pension would

be nil merely because an election by the person under

subsection 1061VA(1) is in force; and

116 Subparagraph 1066-H1(aa)(ii)

Repeal the subparagraph, substitute:

(ii) apart from this point, the person's rate of pension would

be nil merely because an election by the person under

subsection 1061VA(1) is in force; and

117 Points 1066A-D2 and 1066A-D3

Repeal the points, substitute:

No pharmaceutical allowance if person receiving veterans

supplement or MRCA supplement

1066A-D2 Pharmaceutical allowance is not to be added to a person's

maximum basic rate if the person is receiving:

(a) veterans supplement under section 118A of the Veterans'

Entitlements Act; or

(b) MRCA supplement under section 300 of the Military

Rehabilitation and Compensation Act.

No pharmaceutical allowance if partner receiving veterans

supplement or MRCA supplement and not a service pensioner

1066A-D3 Pharmaceutical allowance is not to be added to a person's

maximum basic rate if:

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

(b) the person's partner is receiving:

(i) veterans supplement under section 118A of the

Veterans' Entitlements Act; or

(ii) MRCA supplement under section 300 of the Military

Rehabilitation and Compensation Act; and

118 Paragraph 1066A-D4(a)

Schedule 4 Supplements

Part 5 Other amendments

56 Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No.

, 2009

Repeal the paragraph, substitute:

(a) the person has received an advance pharmaceutical allowance

under Part 2.23 of this Act; and

119 Point 1066A-D7

Repeal the point.

120 Subparagraph 1066A-I1(aa)(ii)

Repeal the subparagraph, substitute:

(ii) apart from this point, the person's rate of pension would

be nil merely because an advance pharmaceutical

allowance has been paid to the person under Part 2.23 of

this Act; and

121 Points 1066B-D2 and 1066B-D3

Repeal the points, substitute:

No pharmaceutical allowance if person receiving veterans

supplement or MRCA supplement

1066B-D2 Pharmaceutical allowance is not to be added to a person's

maximum basic rate if the person is receiving:

(a) veterans supplement under section 118A of the Veterans'

Entitlements Act; or

(b) MRCA supplement under section 300 of the Military

Rehabilitation and Compensation Act.

No pharmaceutical allowance if partner receiving veterans

supplement or MRCA supplement and not a service pensioner

1066B-D3 Pharmaceutical allowance is not to be added to a person's

maximum basic rate if:

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

(b) the person's partner is receiving:

(i) veterans supplement under section 118A of the

Veterans' Entitlements Act; or

(ii) MRCA supplement under section 300 of the Military

Rehabilitation and Compensation Act; and

Supplements Schedule 4

Other amendments Part 5

Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No. , 2009

122 Paragraph 1066B-D4(a)

Repeal the paragraph, substitute:

(a) the person has received an advance pharmaceutical allowance

under Part 2.23 of this Act; and

123 Point 1066B-D7

Repeal the point.

124 Subparagraph 1066B-F1(aa)(ii)

Repeal the subparagraph, substitute:

(ii) apart from this point, the person's rate of pension would

be nil merely because an advance pharmaceutical

allowance has been paid to the person under Part 2.23 of

this Act; and

125 Point 1067G-C2

Repeal the point, substitute:

No pharmaceutical allowance if partner receiving veterans

supplement or MRCA supplement and not a service pensioner

1067G-C2 Pharmaceutical allowance is not to be added to a person's

maximum basic rate if:

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

(b) the person's partner is receiving:

(i) veterans supplement under section 118A of the

Veterans' Entitlements Act; or

(ii) MRCA supplement under section 300 of the Military

Rehabilitation and Compensation Act; and

126 Point 1067L-C2

Repeal the point, substitute:

No pharmaceutical allowance if partner receiving veterans

supplement or MRCA supplement and not a service pensioner

1067L-C2 Pharmaceutical allowance is not to be added to a person's

maximum basic rate if:

Schedule 4 Supplements

Part 5 Other amendments

58 Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No.

, 2009

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

(b) the person's partner is receiving:

(i) veterans supplement under section 118A of the

Veterans' Entitlements Act; or

(ii) MRCA supplement under section 300 of the Military

Rehabilitation and Compensation Act; and

127 Points 1068-D4 and 1068-D5

Repeal the points, substitute:

No pharmaceutical allowance if person receiving veterans

supplement or MRCA supplement

1068-D4 Pharmaceutical allowance is not to be added to a person's

maximum basic rate if the person is receiving:

(a) veterans supplement under section 118A of the Veterans'

Entitlements Act; or

(b) MRCA supplement under section 300 of the Military

Rehabilitation and Compensation Act.

No pharmaceutical allowance if partner receiving veterans

supplement or MRCA supplement and not a service pensioner

1068-D5 Pharmaceutical allowance is not to be added to a person's

maximum basic rate if:

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

(b) the person's partner is receiving:

(i) veterans supplement under section 118A of the

Veterans' Entitlements Act; or

(ii) MRCA supplement under section 300 of the Military

Rehabilitation and Compensation Act; and

128 Paragraph 1068-D6(a)

Repeal the paragraph, substitute:

(a) the person has received an advance pharmaceutical allowance

under Part 2.23 of this Act; and

Supplements Schedule 4

Other amendments Part 5

Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No. , 2009

129 Point 1068-D9

Repeal the point.

130 Paragraph 1068-J1(aa)

Repeal the paragraph, substitute:

(aa) any of the following subparagraphs applies:

(i) apart from this point, the person's rate would be greater

than nil;

(ii) apart from this point, the person's rate would be nil

merely because an advance pharmaceutical allowance

has been paid to the person under Part 2.23 of this Act;

(iii) apart from this point, the person's rate would be nil

merely because an election by the person under

subsection 1061VA(1) is in force;

(iv) apart from this point, the person's rate would be nil

merely because of both of the matters mentioned in

subparagraphs (ii) and (iii); and

131 Point 1068A-C2

Repeal the point, substitute:

No pharmaceutical allowance if person receiving veterans

supplement or MRCA supplement

1068A-C2 Pharmaceutical allowance is not to be added to a person's

maximum basic rate if the person is receiving:

(a) veterans supplement under section 118A of the Veterans'

Entitlements Act; or

(b) MRCA supplement under section 300 of the Military

Rehabilitation and Compensation Act.

132 Paragraph 1068A-C3(a)

Repeal the paragraph, substitute:

(a) the person has received an advance pharmaceutical allowance

under Part 2.23 of this Act; and

133 Point 1068A-C6

Repeal the point.

Schedule 4 Supplements

Part 5 Other amendments

60 Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 No.

, 2009

134 Paragraph 1068A-F1(a)

Repeal the paragraph, substitute:

(a) any of the following subparagraphs applies:

(i) apart from this point, the person's rate would be greater

than nil;

(ii) apart from this point, the person's rate would be nil

merely because an advance pharmaceutical allowance

has been paid to the person under Part 2.23 of this Act;

(iii) apart from this point, the person's rate would be nil

merely because an election by the person under

subsection 1061VA(1) is in force;

(iv) apart from this point, the person's rate would be nil

merely because of both of the matters mentioned in

subparagraphs (ii) and (iii); and

135 Points 1068B-E2 and 1068B-E3

Repeal the points, substitute:

No pharmaceutical allowance if person receiving veterans

supplement or MRCA supplement

1068B-E2 Pharmaceutical allowance is not to be included in a person's

maximum basic rate if the person is receiving:

(a) veterans supplement under section 118A of the Veterans'

Entitlements Act; or

(b) MRCA supplement under section 300 of the Military

Rehabilitation and Compensation Act.

No pharmaceutical allowance if partner receiving veterans

supplement or MRCA supplement and not a service pensioner

1068B-E3 Pharmaceutical allowance is not to be included in a person's

maximum basic rate if:

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

(b) the person's partner is receiving:

(i) veterans supplement under section 118A of the

Veterans' Entitlements Act; or

(ii) MRCA supplement under section 300 of the Military

Rehabilitation and Compensation Act; and

Commonwealth of Australia Bills

VETERANS' AFFAIRS AND OTHER LEGISLATION AMENDMENT (PENSION REFORM) BILL 2009