Commonwealth of Australia Explanatory Memoranda

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VETERANS' AFFAIRS LEGISLATION AMENDMENT (BUDGET AND SIMPLIFICATION MEASURES) BILL 1997




1996 - 97





THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA





HOUSE OF REPRESENTATIVES






VETERANS’ AFFAIRS LEGISLATION
AMENDMENT (BUDGET AND
SIMPLIFICATION MEASURES) BILL 1997





SUPPLEMENTARY EXPLANATORY MEMORANDUM







Amendments to be moved on behalf of the Government


(Circulated by authority of the Minister for Veterans’ Affairs,
The Honourable Bruce Scott MP)



88510 Cat. No. 96 7720 8 ISBN 0644 502622

OUTLINE

OUTLINE AND FINANCIAL IMPACT

These amendments affect the Veterans’ Entitlements Act 1986.

The Veterans’ Affairs Legislation Amendment (Budget and Simplification Measures) Bill 1997 was introduced into the House of Representatives on 26 March 1997. The Government has decided to amend the Bill to add an additional savings provision and to make technical amendments.

The amendments have no financial impact.


OVERVIEW

Amendment of the Veterans’ Entitlements Act 1986

The primary amendment to Schedule 1 of the Veterans’ Affairs Legislation Amendment (Budget and Simplification Measures) Bill 1997 will preserve the entitlement to treatment at Departmental expense of certain veteran disability pensioners who would otherwise lose this entitlement because they will not be paid any service pension after the transfer of child related payments to the Department of Social Security. The other amendments make minor technical changes to the Bill.

Commencement: 1 January 1998.



EXPLANATION OF THE AMENDMENTS


Amendments to Schedule 1

Amendments (1) to (4) amend Item 140 of Schedule 1. Item 140 adds additional savings and transitional clauses to Schedule 5 of the Veterans’ Entitlements Act 1986.

Amendments (1), (2) and (3) make technical corrections to new clauses 9 and 10 being added to Schedule 5 dealing with savings and transitional provisions. References to sections are omitted and references to clauses are substituted because Schedule 5 has clauses not sections.

Amendment (4) adds a further savings provision, clause 11, to Schedule 5 dealing with savings and transitional provisions.

New clause 11 is a savings provision relating to the transfer of child related payments to Social Security.

It preserves the entitlement to treatment at Departmental expense for those veterans whose service pension is comprised entirely of child related payments. In these cases the service pension will reduce to nil and be replaced by a payment of family payment above the minimum rate.

Veterans who are receiving both a service pension and a pension under Part II of the Veterans’ Entitlements Act of more than 50% of the general rate are eligible, under subsection 85(7), to be provided with treatment under Part V of the Act. The loss of the service pension because of this transfer of child related payments to Social Security will not affect that eligibility.

The saved status continues until the child related payments would have ceased, the above the minimum family payment for those children ceases, or the service pension becomes payable again.

 


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