Explanatory Memorandum
(Circulated by authority of the Minister for Families, Community Services and Indigenous Affairs, the Hon Mal Brough MP)Schedule 8 - Backdating of war widow and widower pensions
Summary
These amendments to the Veterans' Entitlements Act give effect to the 2007 Budget measure to extend the maximum backdating period in relation to claims for war widow/er pension from three to six months for those persons who claim within six months of the death of their veteran partner.
For those eligible widow/ers who claim within six months of the death of their veteran partner, the war widow/er pension will be backdated to the day after the date of death of the veteran.
This extension of time to the permissible backdating period will allow those dependants of veterans who are not automatically eligible for the war widow/er pension more time in which to lodge a claim for the pension and will ensure that they are not financially disadvantaged during such a difficult time.
The extended maximum six month backdating period will only apply where the claim has been lodged within six months of the death of the veteran. Claims for war widow/er pension lodged more than six months after the death of the veteran will continue to be backdated for a maximum period of three months.
Background
A war widow/er pension is payable under the Veterans' Entitlements Act as compensation for the widow or widower (including a partner) of a veteran, a mariner, a member of the Forces, or a member of a Peacekeeping Force, whose eligible service has caused or contributed to their death.
A war widow/er pension may be granted to the surviving partner, if the person who had eligible service covered by the Veterans' Entitlements Act has had death determined as war-caused or defence-caused, or died as a result of an injury or disease which is accepted as war-caused or defence-caused.
A war widow/er pension is automatically payable where the deceased had been receiving a disability pension at the Special Rate, an Extreme Disablement Adjustment, or a disability pension, at an increased rate due to being a double amputee, or had been a former Australian prisoner of war.
Many persons eligible for war widow/er pension are automatically paid the payment under section 13A of the Veterans' Entitlements Act and a formal claim is not required. If not paid automatically, a formal claim for the payment of the pension is required.
Currently, under the Veterans' Entitlements Act, war widow/er pension is able to be backdated up to a maximum of three months from the date of lodgement of the claim or back to the day after the date of the veteran's death, whichever is the later date.
Explanation of the changes
Amendments of the Veterans' Entitlements Act
Item 1 amends paragraph (b) of the definition of application day in subsection 19(9) by inserting '20(2B)' after '20(2)'.
Item 2 further amends paragraph (b) of the definition of application day in subsection 19(9) by inserting '20(2B)(a)' after '20(2)(a)'.
Item 3 amends subsection 20(1) by inserting the words '(other than a claim to which subsection (2A) applies)' after the words 'is granted'.
Item 4 amends paragraph 20(2)(a) by inserting the words '(other than a claim to which subsection (2B) applies)' after the words 'in writing'.
Item 5 inserts new subsections (2A) and (2B) after subsection 20(2).
New subsection 20(2A) provides that the Commission may, subject to the Act, specify that a determination under subsection 19(3) may take effect from a date that is not earlier than six months earlier than the date on which the claim for pension was received by the Department if:
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- a claim made in accordance with section 14 is granted for a pension for a dependant who is the widow or widower of a deceased veteran; and
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- the claim is in accordance with a form approved for the purposes of paragraph 14(3)(a) and is thus a proper claim, and the claim was received by the Department less than six months after the death of the veteran.
New subsection 20(2B) provides that the Commission may, subject to the Act, specify that a determination under subsection 19(3) may take effect from a date that is not earlier than six months earlier than the date on which the claim for pension was received by the Department if:
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- an informal claim is made other than in accordance with paragraph 14(3)(a), for a pension for a dependant who is the widow or widower of a deceased veteran; and
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- the informal claim is made less than six months after the death of the veteran; and
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- a proper claim is subsequently made, in accordance with a form approved for the purposes of paragraph 14(3)(a); and
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- the proper claim in accordance with an approved form is made either:
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- before the Department has notified the person that it is necessary to make a proper claim in accordance with an approved form; or
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- within six months of the person being notified by the Department that it is necessary to make a proper claim in accordance with an approved form; and
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- a pension for a widow or widower dependant of a deceased veteran is granted.
Item 6 is an application provision that provides that the amendments made by this Schedule apply in relation to a claim for a pension for a dependant widow or widower of a deceased veteran only if the veteran's death occurs on or after 1 July 2007.