Commonwealth Numbered Acts

VETERANS' AFFAIRS LEGISLATION AMENDMENT ACT 1994 No. 78 of 1994 - SCHEDULE 4

                        SCHEDULE 4                Section 37

MINOR TECHNICAL AMENDMENTS
PART 1 - AMENDMENTS OF THE VETERANS' ENTITLEMENTS ACT 1986 1. Subsection 5(1)
(Index):
Insert:
  "Listed security                 5J(1)".
2. Subsection 5G(1):
Add at the end:

"Note 2: 'Australian citizen' is defined in the Australian Citizenship Act
1948.". 3. Subsection 5H(1) (definition of "income from personal exertion"):
Omit the definition. 4. Subsection 5J(5):
Omit the subsection. 5. Section 41 (Service Pension Rate Calculator Where
There Are No Dependent Children - point 41-C2A - Table C - item 3 - column 3):
Omit "$2,600.00", substitute "$1,300.00". 6. Section 41 (Service Pension Rate
Calculator Where There Are No Dependent Children - point 41-C2A - Table C -
item 3 - column 4):
Omit "$100.00", substitute "$50.00". 7. Section 41 (Service Pension Rate
Calculator Where There Are No Dependent Children - point 41-C2A - Table C):
Add at the end:

"4. Member of illness separated
      or respite care couple         $1,560.00       $60.00".
8. Section 41 (Service Pension Rate Calculator Where There Are No Dependent
Children - point 41-C6 - Table C - 1):
Add at the end:

"4. Member of illness separated or
      respite care couple  3  x  (Annual rent - $2,600)   $819.00".
9. Section 41 (Service Pension Rate Calculator Where There Are No Dependent
Children - point 41-C12):
Add at the end:

"RENT ASSISTANCE EXAMPLES Example 1: Facts:
Maurie is a single service pensioner without children. Maurie does not receive
any disability pension and pays $120 per week rent. Application:
Item 1 in Table C-1 applies to Maurie.
Rate A for Maurie is $3,510 calculated as follows:
3 x (yearly rent - yearly rent threshold)
4
= 3 x (($120 x 52) - $1,560)
4
= 3 x $4,680
4
= $3,510
Rate B for Maurie is $1,742.
As the maximum rate of rent assistance is the lesser of Rates A and B,
Maurie's rate of rent assistance is $1,742 per year. Maurie will receive
$67.00 per fortnight. Example 2: Facts:
Trevor and Oona are members of a pensioner couple. They rent a house for $160
per week. Trevor receives 100% disability pension ($5,514.60 per year). Oona
receives the wife's component of disability pension ($210.60 per year).
Application:
Item 3 in Table C-1 applies to Trevor and Oona.
Rate A for Trevor is $2,145 calculated as follows:
3 x (($160 x 52) - $2,600)
8
= 3 x ($8,320 - $2,600)
8
= 3 x $5,720
8
= $17,160
8
= $2,145
Rate B for Trevor is $819.
As the lesser rate is $819, this is the maximum rent assistance that Trevor
can receive. However, as both Trevor and Oona receive disability pension, the
Rent Assistance Income Test in point 41-C10 applies.
Trevor's disability pension income is:
$5,514.00 + $210.60 = $2,862.30
2
Item 4 of Table C-2 applies. Trevor's disability pension income excess is the
disability pension income less the rent assistance free area:
$2,862.30 - $1,820.00 = $1,042.30
The reduction in rent assistance is:
$1,042.30 = $521.15
2
The rent assistance Trevor will receive per year is Rate B less amount of rent
reduction:
$819.00 - $521.15 = $297.90 (rounded to the nearest 10 cents)
Trevor will receive $11.50 per fortnight.
The same calculation applies to Oona's rate of rent assistance.". 10. Section
41 (Service Pension Rate Calculator Where There Are No Dependent Children -
point 41-F4):
Add at the end: "Note 4: Items 2, 3 and 4 of Table F-2 apply to members of
illness separated and respite care couples.". 11. Section 42 (Service Pension
Rate Calculator Where There Are Dependent Children - point 42-D2A - Table D -
item 3 - column 3):
Omit "$3,120.00", substitute "$1,560.00". 12. Section 42 (Service Pension Rate
Calculator Where There Are Dependent Children - point 42-D2A - Table D - item
3 - column 4):
Omit "$120.00", substitute "$60.00". 13. Section 42 (Service Pension Rate
Calculator Where There Are Dependent Children - point 42-D2A - Table D):
Add at the end the following item:

"4. Member of illness separated
      or respite care couple        $2,080.00        $80.00".
14. Section 42 (Service Pension Rate Calculator Where There Are Dependent
Children - point 42-D6 - Table D-1):
Add at the end the following item:

"4. Member of illness separated
or respite care couple 3 x (Annual rent - $3,120)
8
$956.80
$1,092.00". 15. Section 42 (Service Pension Rate Calculator Where There Are
Dependent Children - point 42-D16):
Add at the end:

"RENT ASSISTANCE EXAMPLES Example 1: Facts:
Brian is a service pensioner who is not a member of a couple, has one
dependent child and does not receive a disability pension. Brian pays $120 per
week rent for a flat. Application:
Item 1 in Table C-1 applies to Brian.
Rate A for Brian is $3,210 calculated as follows:
3 x (annual rent - rent threshold)
4
= 3 x (($120 x 52) - $2,080)
4
= 3 x ($6,240 - $2,080)
4
= $3,120
Rate B for Brian is $1,913.60 i.e. (($63.00 + $10.60) x 26). The lesser rate
is $1,913.60. Brian will receive $73.60 per year. Example 2: Facts:
Graham and Katherine are members of a pensioner couple with 3 dependent
children. They rent a house for $250 per week. Graham receives 100% disability
pension ($5,514.60 per year). Katherine is a veteran in her own right and
receives a 20% disability pension ($1,102.92 per year). Application:
Item 3 of Table D-2 applies to them.
Rate A for Graham is $7,410.00 calculated as follows:
3 x (($250 x 52) - $3,120)
4
= 3 x ($13,000 - $3,120)
4
= 3 x $9,880
4
= $29,640
4
= $7,410
Rate B for Graham is $1,092.00 calculated as follows:
($63.00 + $21.00) x 26
2
This is the maximum rate of rent assistance that Graham can receive, however
as both Graham and Katherine receive disability pension, the disability
pension rent test applies (see point 42-D10).
Graham's disability pension income is:
$5,514.60 + $1,102.92
2
= $6,617.52
2
= $3,308.80 (rounded to the nearest 10 cents)
Item D-3 of Table D-2 applies. Graham's disability pension excess is:
$3,308.80 - ($1,820.00 + ($312.00 x 3)) = $552.80
Excess disability pension reduction is calculated at 50 cents in the dollar:
$552.80 = $276.40
2
The assistance that Graham receives per year is Rate B less amount of rent
reduction:
$1,092.00 - $276.40 = $815.60
Graham receives $31.40 per fortnight.
The same calculation applies to Katherine's rate of rent assistance.". 16.
Section 42 (Service Pension Rate Calculator Where There Are Dependent Children
- point 42-E11):
Add at the end: "Note 7: Items 2, 3, 4 and 5 of Table E-2 apply to members of
illness separated and respite care couples.". 17. Section 44 (Service Pension
Rate Calculator for Widows, Widowers and Non-illness Separated Spouses - point
44-C2A - Table C - item 3 - column 3):
Omit "$2,600.00", substitute "$1,300.00". 18. Section 44 (Service Pension Rate
Calculator for Widows, Widowers and Non-illness Separated Spouses - point
44-C2A - Table C - item 3 - column 4):
Omit "$100.00", substitute "$50.00". 19. Section 44 (Service Pension Rate
Calculator for Widows, Widowers and Non-illness Separated Spouses - point
44-C2A - Table C - item 4 - column 3):
Omit "$3,120.00", substitute "$1,560.00". 20. Section 44 (Service Pension Rate
Calculator for Widows, Widowers and Non-illness Separated Spouses - point
44-C2A - Table C - item 4 - column 4):
Omit "$120.00", substitute "$60.00". 21. Section 44 (Service Pension Rate
Calculator for Widows, Widowers and Non-illness Separated Spouses - point
44-C2A - Table C - item 5 - column 3):
Omit "$3,120.00", substitute "$1,560.00". 22. Section 44 (Service Pension Rate
Calculator for Widows, Widowers and Non-illness Separated Spouses - point
44-C2A - Table C - item 5 - column 4):
Omit "$120.00", substitute "$60.00". 23. Subsection 46A(2):
Omit. 24. Subsection 46B(1) (Notes):
Omit all the Notes, substitute: "Note 1: For 'assessable period' see
subsection 5J(1). "Note 2: For 'realising an investment' see subsections 5J(7)
and (8).". 25. Section 46T:
Add at the end: "Note: A pensioner may appeal to the Commissioner of Taxation
regarding the assessment of the relevant number used in calculating income
from annuities (see section 52B).". 26. Paragraph 52H(1)(d):
Omit "for the period of 5 years that starts on the day on which the
disposition takes place of the person's partner", substitute "of the person's
partner for the period of 5 years that starts on the day on which the
disposition takes place". 27. Subsection 56G(2C):
After "day" (third occurring) insert "after the day". 28. Subsection 58A(3):
After "cents" (first occurring) insert ", but is not a multiple of 10 cents".
29. Subparagraph 70(9)(b)(ii):
Omit "veteran", substitute "member". 30. Schedule 2:
Omit "Subsection 5(1) and
paragraph 5(3)(c)", substitute "Section 5B".
PART 2 - AMENDMENT OF THE DEFENCE SERVICE HOMES ACT 1918 31. Paragraph
4AAA(5A)(d):
Omit "certificate of eligibility", substitute "certificate of entitlement".
NOTE ABOUT SECTION HEADING IN THE VETERANS' ENTITLEMENTS ACT 1986 1. On 1 July
1994, the heading to section 177 of the Principal Act is omitted and the
following heading is substituted: "Effective dates of certain determinations
relating to payment of pension or seniors health card".