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VETERANS' AFFAIRS (1994-95 BUDGET MEASURES) LEGISLATION AMENDMENT ACT (No. 2) 1994 No. 164 of 1994 - SECT 8
Application of income and assets test reductions for income tax purposes
8. Section 40C of the Principal Act is amended:
(a) by inserting after subsection (1) the following subsections:
"(1A) If:
(a) the rate of a service pension applicable to a person who has no
dependent children is increased under the rent assistance Module of a
Rate Calculator or the pharmaceutical allowance Module of a Rate
Calculator; and
(b) an amount of that pension is to be reduced under section 59T
(compensation recovery); the reduction is to be applied:
(c) first, to that part of the amount that does not include any increase
under the rent assistance Module or the pharmaceutical allowance
Module; and
(d) then, to the amount of any increase under the rent assistance Module;
and
(e) finally, to the amount of any increase under the pharmaceutical
allowance Module.
"(1B) If:
(a) the rate of a service pension applicable to a person who has dependent
children is increased under the pharmaceutical allowance Module of a
Rate Calculator; and
(b) an amount of that pension or the compensation affected component of
such an amount is to be reduced under section 59T (compensation
recovery); the reduction is to be applied:
(c) first, to that part of the amount or of the compensation affected
component that does not include the increase under the pharmaceutical
allowance Module; and
(d) then, to the amount of the increase under the pharmaceutical allowance
Module.";
(b) by omitting from subsection (2) "subsection (1)" and substituting
"subsections (1), (1A) and (1B)".
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