Commonwealth Numbered Acts

VETERANS' AFFAIRS (1994-95 BUDGET MEASURES) LEGISLATION AMENDMENT ACT (No. 2) 1994 No. 164 of 1994 - SCHEDULE 1

                             SCHEDULE 1                    Section 19

AMENDMENTS OF RATE CALCULATOR IN SECTION 45X OF THE
VETERANS' ENTITLEMENTS ACT 1986
PART 1-MODULES TO BE SUBSTITUTED FOR MODULES B AND C

"MODULE B-OVERALL RATE CALCULATION PROCESS Method of calculating rate (persons
who are not permanently blind)

"45X-B1. The rate of income support supplement for a person who is not
permanently blind is an annual rate worked out as follows (fortnightly amounts
are provided for information only):
Method statement Step 1. Work out the amount of the person's maximum basic
rate using MODULE C below. Step 2. Work out the amount per year (if any) for
rent assistance using MODULE D below. Step 3. Add up the amounts obtained in
Steps 1 and 2: the result is called the maximum payment rate. Step 4. Apply
the adjusted income test using MODULE E below to work out the reduction for
adjusted income. Step 5. Take the amount obtained in Step 4 away from the
maximum payment rate: the result is called the adjusted income reduced rate.
Step 6. Apply the assets test using MODULE F below to work out the reduction
for assets. Step 7. Take the reduction for assets away from the maximum
payment rate: the result is called the assets reduced rate. Step 8. Work out
the person's ceiling rate using points 45X-A3 and 45X-A4. Step 9. Find out,
using points 45X-A5 and 45X-A6, whether the pension payable to the person
under Part II or Part IV is compensation reduced. If the pension is not
compensation reduced, go directly to Step 12. If the pension is compensation
reduced, work out the amount of the reduction in the pension using point
45X-A7; then go to Step 10. Step 10. This Step applies only to a person whose
pension under Part II or IV is compensation reduced. Add the amount of the
reduction in the person's pension (see Step 9) to the person's ceiling rate
(see Step 8): the result is called the adjusted ceiling rate. Step 11. This
Step applies only to a person whose pension under Part II or IV is
compensation reduced. Work out the person's provisional rate as follows:
compare the adjusted income reduced rate (see Step 5), the assets reduced rate
(see Step 7) and the adjusted ceiling rate (see Step 10); the person's
provisional rate is equal to:

   (a)  whichever is the least of those rates; or

   (b)  if 2 of those rates are the same and the third one is higher-the lower
        rate: or

   (c)  if the 3 rates are the same-those rates. Go now to Step 13. Step 12.
        This Step applies only to a person whose pension under Part II or IV
        is not compensation reduced. Work out the person's provisional rate as
        follows: compare the adjusted income reduced rate, the assets reduced
        rate and the ceiling rate; the person's provisional rate is equal to:

   (a)  whichever is the least of those rates; or

   (b)  if 2 of those rates are the same and the third one is higher-the lower
        rate; or

   (c)  if the 3 rates are the same-those rates. Step 13. Work out the amount
        per year (if any) payable by way of remote area allowance using MODULE
        G below. Step 14. Add the amount obtained in Step 13 to the person's
        provisional rate (see Step 11 or 12): the result is the rate of income
        support supplement. Note 1: For 'adjusted income' see section 5H. Note
        2: If a person's assets reduced rate is less than the person's
        adjusted income reduced rate, the person may be able to take advantage
        of provisions dealing with:
. financial hardship (sections 52Y and 52Z);
. pension loans scheme (sections 52ZA to 52ZM). Note 3: If a person's rate is
reduced under Step 11 or 12, the order in which the reduction is to be made
against the components of the maximum payment rate is laid down by section 45V
(maximum basic rate first, then rent assistance). Note 4: The rate calculation
for a member of a couple is affected by the operation of point 45X-A2. Note 5:
The amount of a fortnightly instalment of income support supplement will be
rounded off to the nearest multiple of 10 cents (see subsections 58A(2) and
(3)). Note 6: For the minimum amount of a fortnightly instalment of income
support supplement see subsection 58A(4). Method of calculating rate (persons
permanently blind)

"45X-B2. The rate of income support supplement for a person who is permanently
blind is an annual rate worked out as follows (fortnightly amounts are
provided for information only):
Method statement Step 1. Work out the person's ceiling rate using points
45X-A3 and 45X- A4. Step 2. Find out using points 45X-A5 and 45X-A6 whether
the pension payable to the person under Part II or Part IV is compensation
reduced. If the pension is not compensation reduced, go directly to Step 3. If
the pension is compensation reduced, work out the amount of the reduction in
the pension using point 45X-A7 and add that amount to the person's ceiling
rate: the result is called the adjusted ceiling rate. Step 3. Work out the
amount per year for rent assistance using MODULE D below. Step 4. Work out the
amount per year (if any) payable by way of remote area allowance using MODULE
G below. Step 5. If the pension payable to the person is not compensation
reduced, add the amount obtained in Step 4 to the person's ceiling rate (see
Step 1): the result is the rate of income support supplement. Step 6. If the
pension payable to the person is compensation reduced, add the amounts
obtained in Steps 3 and 4 to the person's adjusted ceiling rate (see Step 2):
the result is the rate of income support supplement.

"MODULE C-MAXIMUM BASIC RATE Maximum basic rate

"45X-C1. A person's maximum basic rate depends on the person's family
situation. Work out which family situation in Table C applies to the person.
The maximum basic rate is the corresponding amount in column 3.
TABLE C
MAXIMUM BASIC RATES
column 1    column 2

item no.    person's family situation

                        column 3         column 4

                        rate per year    rate per fortnight

1.          Not member of couple

                        $8,361.60        $321.60

2.          Partnered (partner getting neither pension nor benefit)

                        $8,361.60        $321.60

3.          Partnered (partner getting pension or benefit)

                        $6,973.20        $268.20

4.          Member of illness separated or respite care couple

                        $8,361.60        $321.60
Note 1: For 'member of a couple', 'partnered (partner getting neither pension
nor benefit)', 'partnered (partner getting pension or benefit)' see section
5E, and for 'illness separated couple' and 'respite care couple' see
subsections 5R(5) and (6). Note 2: The maximum basic rates are indexed 6
monthly in line with CPI increases (see sections 59B to 59E).".
PART 2-MODULE TO BE ADDED AT END OF CALCULATOR

"MODULE G-REMOTE AREA ALLOWANCE Remote area allowance

"45X-G1. An amount by way of remote area allowance is to be added to a
person's provisional rate if:

   (a)  the person's usual place of residence is situated in a remote area;
        and

   (b)  the person is physically present in the remote area. Note: For 'remote
        area' and 'physically present in the remote area' see section 5Q.

"45X-G2. Point 45X-G1 does not apply if the person's provisional rate is nil.
Rate of remote area allowance

"45X-G3. The rate of remote area allowance payable to a person is worked out
by using Table G. Work out which family situation in the Table applies to the
person. The rate of remote area allowance is the corresponding amount in
column 3.
TABLE G
REMOTE AREA ALLOWANCE
column 1    column 2

item no.    person's family situation

                        column 3              column 4

                        allowance per year    allowance per fortnight

1.          Not member of couple

                        $455.00               $17.50

2.          Partnered (partner receiving remote area allowance)

                        $390.00               $15.00

3.          Partnered (partner not receiving remote area allowance)

                        $455.00               $17.50
Note: For 'member of a couple' and 'partnered' see section 5E. Illness
separated couples

"45X-G4. For the purposes of Table G in point 45X-G3, a member of an illness
separated couple or a respite care couple is to be treated as not being a
member of a couple.".