TAX LAWS AMENDMENT (SIMPLIFIED SUPERANNUATION) ACT 2007 (NO. 9, 2007) - SCHEDULE 9 Veterans' Entitlements Act 1986
TAX LAWS AMENDMENT (SIMPLIFIED SUPERANNUATION) ACT 2007 (NO. 9, 2007) - SCHEDULE 9
Veterans' Entitlements Act 1986Part 1 -- Amendments commencing 20 September 2007
1 Before paragraph 5JA(1)(a)
Insert:
(aa) subject to subsection (1AA), the income stream's commencement day happens before 20 September 2007; and
2 After subsection 5JA(1A)
Insert:
Defined benefit income streams
(1AA) Paragraph (1)(aa) does not apply if the income stream is a defined benefit income stream.
3 Subsection 5JA(5)
Omit "that does not meet the requirements of subsection (2)".
4 After subsection 5JA(5)
Insert:
(5A) To avoid doubt, a determination under subsection (5) may be made in respect of an income stream regardless of the income stream's commencement day.
(5B) A determination under subsection (5) is not a legislative instrument.
5 Subsection 5JB(1)
Repeal the subsection, substitute:
(1) An income stream provided to a person is also an asset‑test exempt income stream for the purposes of this Act if:
(a) the following criteria are satisfied:
(i) the income stream's commencement day happens before 20 September 2007;
(ii) subsection (1A) applies; or
(b) subsection (1B) applies.
6 Subsection 5JB(4)
Omit "that does not meet the requirements of subsection (2)".
7 After subsection 5JB(4)
Insert:
(4A) To avoid doubt, a determination under subsection (4) may be made in respect of an income stream regardless of the income stream's commencement day.
(4B) A determination under subsection (4) is not a legislative instrument.
8 Subparagraph 5JBA(1)(a)(i)
Omit "on or after 20 September 2004", substitute "during the period from 20 September 2004 to 19 September 2007 (both dates inclusive)".
9 Subsection 5JBA(11)
Omit "that does not meet the requirements of subsection (2)".
10 After subsection 5JBA(11)
Insert:
(11A) To avoid doubt, a determination under subsection (11) may be made in respect of an income stream regardless of the income stream's commencement day.
(11B) A determination under subsection (11) is not a legislative instrument.
11 Subsection 52(1AA) (definition of partially asset‑test exempt income stream )
Repeal the definition, substitute:
"partially asset-test exempt income stream" means:
(a) an asset‑test exempt income stream that:
(i) is an income stream (other than a defined benefit income stream) covered by subsection 5JA(1) or (1A), 5JB(1) or 5JBA(1); and
(ii) has a commencement day during the period from 20 September 2004 to 19 September 2007 (both dates inclusive); and
(iii) is not covered by principles (if any) determined for the purposes of this subparagraph, by legislative instrument, by the Commission; or
(b) an income stream that:
(i) has a commencement day happening on or after 20 September 2007; and
(ii) is covered by principles determined for the purposes of this subparagraph, by legislative instrument, by the Commission.
12 Subsection 52(1AB)
Repeal the subsection, substitute:
(1AB) The Commission may determine principles for the purposes of subparagraph (a)(iii) of the definition of partially asset‑test exempt income stream in subsection (1AA).
(1AC) The Commission may determine principles for the purposes of subparagraph (b)(ii) of the definition of partially asset‑test exempt income stream in subsection (1AA).
13 Paragraph 52Z(3)(d)
Omit "$19.50", substitute "$9.75".
14 Subpoint SCH6‑F4(1) of Schedule 6 (formula)
Repeal the formula, substitute:
15 Transitional arrangements
(1) If:
(a) a person is not receiving a particular relevant payment immediately before 20 September 2007; and
(b) the person makes a claim for the relevant payment during the claim period;
then:
(c) if the relevant payment is an age service pension--the day on which the determination under section 36L of the Veterans' Entitlements Act 1986 in relation to that pension takes effect is the earlier of:
(i) the transitional day for the person in relation to the relevant payment; and
(ii) the day on which the determination would take effect under section 36M of that Act, but for this item; and
(d) if the relevant payment is an invalidity service pension--the day on which the determination under section 37L of the Veterans' Entitlements Act 1986 in relation to that pension takes effect is the earlier of:
(i) the transitional day for the person in relation to the relevant payment; and
(ii) the day on which the determination would take effect under section 37M of that Act, but for this item; and
(e) if the relevant payment is a partner service pension--the day on which the determination under section 38L of the Veterans' Entitlements Act 1986 in relation to that pension takes effect is the earlier of:
(i) the transitional day for the person in relation to the relevant payment; and
(ii) the day on which the determination would take effect under section 38M of that Act, but for this item; and
(f) if the relevant payment is income support supplement--the day on which the determination under section 45Q of the Veterans' Entitlements Act 1986 in relation to the income support supplement takes effect is the earlier of:
(i) the transitional day for the person in relation to the relevant payment; and
(ii) the day on which the determination would take effect under section 45R of that Act, but for this item.
(2) If:
(a) a person is not receiving a particular relevant payment immediately before 20 September 2007; and
(b) the person makes a claim for the relevant payment during the claim period; and
(c) on the day on which the claim is made:
(i) the person is not eligible to receive the relevant payment; or
(ii) the relevant payment is not payable to the person; and
(d) the person was eligible to receive the relevant payment, and the relevant payment was payable to the person, during a period (the relevant period ) that fell before that day and within the claim period;
then:
(e) the Commission may make a determination granting the claim; and
(f) the day on which the determination under section 36L, 37L, 38L or 45Q of the Veterans' Entitlements Act 1986 takes effect (despite sections 36M, 37M, 38M and 45R of that Act) is the earlier of:
(i) the first day of the relevant period; and
(ii) the day on which the determination would take effect under section 36M, 37M, 38M or 45R of that Act but for this item.
(3) In this item:
claim period means the period commencing on 20 September 2007 and ending on 20 December 2007 (both dates inclusive).
relevant payment means one of the following:
(a) a service pension;
(b) income support supplement.
transitional day , for a person in relation to a relevant payment, means the day that is the later of:
(a) 20 September 2007; and
(b) the day on which the relevant payment first becomes payable to the person.
Part 2 -- Amendment commencing 1 July 2007
16 Subsection 5J(1) (definition of deductible amount )
Repeal the definition, substitute:
"deductible amount" , in relation to a defined benefit income stream for a year, means the sum of the amounts that are the tax free components (worked out under Subdivision 307-C of the Income Tax Assessment Act 1997 or, if applicable, section 307-125 of the Income Tax (Transitional Provisions) Act 1997 ) of the payments received from the defined benefit income stream during the year.