VETERANS' AFFAIRS LEGISLATION AMENDMENT (BUDGET MEASURES) BILL 2009

i Veterans' Affairs Legislation Amendment (Budget Measures) Bill 2009 No. , 2009

Contents

Short title ............................................................................................ 1

Commencement .................................................................................. 1

Schedule(s) ......................................................................................... 1

Schedule 1--Amendme nts

Part 1--Deposit of certain payments into foreign bank

accounts

Military Rehabilitation and Compensation Act 2004

Veterans' Entitlements Act 1986

Part 2--Amendments relating to insurance

Defence Service Ho mes Act 1918

Part 3--Provisions relating to dependants' pensions

Income Tax Assessment Act 1997

Veterans' Entitlements Act 1986

Veterans' Affairs Legislation Amendment (Budget Measures) Bill 2009 No. , 2009 1

A Bill for an Act to amend the law relating to

veterans' affairs, and for other purposes

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Veterans' Affairs Legislation

Amendment (Budget Measures) Act 2009.

2 Commence ment

This Act commences on the day after it receives the Royal Assent.

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repealed as set out in the applicable items in the Schedule

Amend ments Schedule 1

Deposit of certain pay ments into foreign bank accounts Part 1

Veterans' Affairs Legislation Amendment (Budget Measures) Bill 2009 No. , 2009 3

Schedule 1

Amendments

Part 1

Deposit of certain payments into foreign

bank accounts

Military Rehabilitation and Compensation Act 2004

1 Subsection 430(1)

Omit "an account with a bank.", substitute:

an account with:

(a) a bank; or

(b) if the person is physically outside Australia--a foreign

corporation that takes money on deposit.

2 Subsection 430(4) (definition of account)

Repeal the definition, substitute:

account means an account, maintained by a person, to which

money received on deposit by a bank, or a foreign corporation,

from that person is credited.

Veterans' Entitlements Act 1986

3 Section 58C (note)

After "bank", insert "or foreign corporation that takes money on

deposit".

4 Subsection 58F(1)

Omit "an account with a bank.", substitute:

an account with:

(a) a bank; or

(b) if the person is physically outside Australia--a foreign

corporation that takes money on deposit.

5 Paragraph 118PB(2)(c)

Omit "a bank", substitute "an".

Schedule 1 A mendments

Part 1 Deposit of certain payments into foreign bank accounts

4 Veterans' Affairs Legislation Amendment (Budget Measures) Bill 2009 No. , 2009

6 Subsection 122(4) (note)

Omit "with a bank".

7 Subsection 122A(1)

Omit all the words after "or in common with another person,",

substitute:

with:

(a) a bank; or

(b) if the pensioner is physically outside Australia--a foreign

corporation that takes money on deposit.

8 After subsection 122A(1)

Insert:

(1AA) If the Commission gives a direction under subsection (1), the

pension is payable in accordance with the direction.

9 Subsection 122A(1B)

Omit "under subsection (1)", substitute "under subsection (1AA)".

10 Section 122C

Repeal the section, substitute:

122C Payme nt of pension or allowance outside Australia

If a pension, allowance or other pecuniary benefit under this Act,

other than a pension or allowance to which section 58A applies, is

payable to a person who is physically outside Australia, then it may

be paid:

(a) in the manner determined by the Commission; and

(b) in the instalments determined by the Commission.

Amend ments Schedule 1

Amend ments relating to insurance Part 2

Veterans' Affairs Legislation Amendment (Budget Measures) Bill 2009 No. , 2009 5

Part 2

Amendments relating to insurance

Defence Service Homes Act 1918

11 After section 38CA

Insert:

38CAA Insurance of certain other houses etc.--Defence Home

Ownership Assistance Scheme Act 2008

(1) The Commonwealth may undertake insurance of, or in relation to:

(a) a house in which a person who is eligible under the Defence

Home Ownership Assistance Scheme Act 2008 has an

interest; or

(b) building materials on the site of a house mentioned in

paragraph (a), being materials used in the building of, or

otherwise in relation to, the house; or

been made to a house mentioned in paragraph (a), or that has

been constructed on the land on which such a house is built,

and any building materials on the site of, and used in the

building of, or in relation to, such an improvement.

(2) The Commonwealth may undertake insurance against risks related

to the land on which a house mentioned in paragraph (1)(a) is built,

or on which a house mentioned in paragraph (1)(b) is being, or is to

be, built.

(3) In this section:

eligible and house have the same respective meanings as in the

Defence Home Ownership Assistance Scheme Act 2008.

Note:

The heading to section 38CA is altered by adding at the end "--Home Loans

Assistance Act".

12 After section 38EA

Insert:

38EAA Te rmination of insurance undertaken under section 38CAA

(1) This section applies if:

Schedule 1 A mendments

Part 2 A mend ments relating to insurance

6 Veterans' Affairs Legislation Amendment (Budget Measures) Bill 2009 No. , 2009

(a) the Commonwealth has undertaken insurance under

section 38CAA in relation to a house in which a person who

is eligible under the Defence Home Ownership Assistance

Scheme Act 2008 has an interest; and

(b) the person ceases to be eligible.

(2) If this section applies:

(a) the insurance undertaken in relation to the house does not

cease to have effect when the person ceases to be eligible;

and

(b) unless the insurance has already ceased to have effect for

some other reason, the Secretary must give reasonable notice

in writing to each person having an interest in the house that

the insurance will cease to have effect on a day specified in

the notice.

(3) If the Secretary gives a notice under paragraph (2)(b), the

insurance ceases to have effect on the day specified in the notice

unless it has already ceased to have effect.

(4) If this section applies because a person dies and the person is

survived by a widow or widower, the Secretary must not give a

notice under paragraph (2)(b) in relation to the house unless the

Secretary is satisfied that the widow or widower is not eligible.

(5) In this section:

eligible and house have the same respective meanings as in the

Defence Home Ownership Assistance Scheme Act 2008.

Amend ments Schedule 1

Provisions relating to dependants' pensions Part 3

Veterans' Affairs Legislation Amendment (Budget Measures) Bill 2009 No. , 2009 7

Part 3

Provisions relating to

dependants'

pensions

Income Tax Assessment Act 1997

13 Section 11-15

(table item headed "social security or like

payments")

After:

farm help income support..................................

53-10 and 53-15

insert:

lu mp sum pay ment under section 198N o f the Veterans'

Entitlements Act 1986........................................

52-65

14 After subsection 52-65(1D)

Insert:

(1E) A lump sum payment under section 198N of the Veterans'

Entitlements Act 1986 is exempt from income tax.

Veterans' Entitlements Act 1986

15 After section 198M

Insert:

198N Cancellation of entitlement to pension

(1) This section applies if, because of subsection 4(6) or (8B) of the

Veterans' Entitlements (Transitional Provisions and Consequential

Amendments) Act 1986, a pension is payable to a person, including

a pension whose rate has been reduced to nil.

(2) Despite section 4 of that Act, the pension is not payable to the

person on or after 22 September 2009.

(3) However, the person is entitled to receive a lump sum payment, to

be paid on or after 24 September 2009, equal to 3 years' worth of

the pension, calculated according to the rate at which the person's

last pension payment was paid.

(4) Subsections (2) and (3) do not apply to a person who is paid a

pension on the basis that the person was, at the time section 66 of

Commonwealth of Australia Bills

VETERANS' AFFAIRS LEGISLATION AMENDMENT (BUDGET MEASURES) BILL 2009