Revised Explanatory Memorandum
(Circulated by authority of the Minister for Veterans' Affairs, The Honourable Dan Tehan MP)Schedule 8 - Minor amendments
Overview
Schedule 8 of the Bill will repeal redundant and spent provisions administered in the Veterans' Affairs portfolio concerning benefits that are no longer payable under the portfolio Acts, and make amendments consequential to those repeals. The Schedule will also make some minor corrections to clarify existing provisions of the Veterans' Entitlements Act.
The Schedule also includes the consequential amendments to other Acts which result from the amendments that repeal the redundant and spent provisions of the Veterans' Entitlements Act and the Military Rehabilitation and Compensation Act.
The removal of these redundant provisions and the clarification of other provisions will simplify veterans' affairs legislation and make it more accessible for individuals wishing to interpret the current provisions.
Background
The amendments made by Schedule 8 were originally included in the Omnibus Repeal Day (Spring 2015) Bill 2015.
That Bill lapsed with the prorogation of the Parliament on 17 April 2016.
Explanation of the items
Part 1 - Removal of spent veterans' affairs payments
Division 1 - Main amendments
Veterans' Entitlements Act 1986
Items 1, 2, 4 and 5 repeal paragraphs 5H(8)(zzaa) to (zzag), (zzai), (zzc) to (zzg) and (zzh). Those paragraphs refer to various one-off payments that were made during the years from 2006 to 2012. The payments were those payable under the provisions of the Veterans' Entitlements Act (repealed by this Part) and the equivalent payments that had been payable under schemes made under the provisions of other Acts.
Item 3 is a formatting amendment to paragraph 5H(zzb) as a consequence of the amendments which repeal the subsequent paragraphs.
Items 6 to 8 repeal the subsection 5Q(1) definitions of "clean energy advance", and "clean energy bonus" and make a consequential amendment to the definition of "clean energy payment". The clean energy advance will no longer be payable as a result of the repeal of Division 1 of Part IIIE by Item 9 of this Part.
Item 9 repeals the redundant and spent Division 1 of Part IIIE. Division 1 of Part IIIE had provided for the payment of a clean energy advance to persons who were in receipt of a payment under the Veterans' Entitlements Act during the period from 14 May 2012 to 19 March 2013.
Item 10 repeals Parts VIID to VIIH, which provided for the payment of the 2006, 2007 and 2008 one-off payments to older Australians, the economic security strategy payment and the Educational Tax Refund (ETR) payment.
Those Parts are redundant as the spent payments were all payable on a one-off basis by being linked to eligibility for a payment under the Veterans' Entitlements Act on particular days during the years 2006 to 2013.
Division 2 - Other amendments
Income Tax Assessment Act 1997
Items 11 to 15 are consequential amendments to the Income Tax Assessment Act 1997 to remove those provisions which refer to economic security strategy and ETR payments made under Parts VIIG and VIIH of the Veterans Entitlements Act (repealed by Item 10 of this Part) as those payments are no longer payable.
Section 11-15 is amended by the repeal of the item included in the table "social security or like payments" which refers to the "economic security payment".
Paragraphs 52-65(1)(d) and (da), subsections 52-65(1D) and (1H) and table items 5B and 5C of section 52-75 are repealed to remove the references to the economic security strategy payment and ETR payments under the Veterans' Entitlements Act which are no longer payable.
Social Security Act 1991
Items 16 and 17 are consequential amendments to repeal subparagraph 8(8)(y)(ia) and paragraphs 8(8)(yb), (yd), (yf), (yh) and (yhb) of the Social Security Act 1991. Those provisions had provided that certain payments made under the Veterans' Entitlements Act which are being repealed by Item 10 of this Part are exempt income for the purposes of the Social Security Act 1991.
Social Security (Administration) Act 1999
Item 18 is a consequential amendment to repeal paragraph (b) of the definition of "clean energy income-managed payment" in section 123TC of the Social Security (Administration) Act 1999.
The paragraph had referred to the "clean energy advance" that was payable under the Veterans' Entitlements Act which is no longer payable as a result of the repeal of Division 1 of Part IIIE of the Veterans' Entitlements Act (repealed by Item 9 of this Part).
Division 3 - Saving provisions
Item 19 is a saving provision which provides that, despite the repeal of the provisions under which the one-off and other payments were payable and the amendments made by this Part, the provisions will continue to apply on and after the commencement of this Item in relation to payments of the clean energy advance, the various one-off payments, economic security strategy payments or an ETR payment for the following purposes:
- •
- payments of clean energy advance made under Subdivision D of Division 1 of Part IIIE of the Veterans' Entitlements Act;
- •
- recovery of debts concerning clean energy advances determined under Subdivision E of Division 1 of Part IIIE of the Veterans' Entitlements Act;
- •
- payments of the ETR payment under section 118ZZVH of the Veterans' Entitlements Act;
- •
- recovery of debts concerning payments under Parts VIID to VIIH under sections 205 and 206 of the Veterans' Entitlements Act;
- •
- tax exemption for the purposes of the Income Tax Assessment Act 1997 under subsections 52-65(1G) and (1H) for clean energy advances and ETR payments;
- •
- income test exemption for ETR payments for the purposes of the Veterans' Entitlements Act under paragraph 5H(8)(zzai);
- •
- income test exemption for ETR payments for the purposes of the Social Security Act 1991 under paragraph 8(8)(yhb); and
- •
- classification of a clean energy advance under Division 1 of Part IIIE of the Veterans' Entitlements Act as a "clean energy income-managed payment" for the purposes of Subdivision DE of Division 5 of part 3B of the Social Security Act.
The savings provision will ensure that subsequent to the commencement of the amendments made by this Part, a person will retain eligibility for one or more of the payments listed in the provision in the following circumstances:
- •
- the person becomes eligible for the payment of an underlying payment which made the person eligible for one of the payments; and
- •
- the payment of the underlying payment concerned a period during which the person would have been eligible for the payment.
In the circumstances where a person receives one or more of the listed payments as a consequence of the saving provision, the debt recovery provisions, the tax exemption under the Income Tax Assessment Act 1997, the income test exemption and classification of the payment for the purposes of the Social Security Act 1991 will also be applicable where it will be appropriate.
Part 2 - Removal of spent military rehabilitation and compensation payments
Division 1 - Main amendments
Military Rehabilitation and Compensation Act 2004
Items 20 to 22 repeal the subsection 5(1) definitions of "clean energy advance", and "clean energy bonus" and make a consequential amendment to the definition of "clean energy payment". The clean energy advance will no longer be payable as a result of the repeal of Divisions 1 to 5 of Part 5A of Chapter 11 by Item 25 of this Part.
Items 23 and 24 are consequential amendments to subsection 415(2) and the Note to that subsection which remove references to "section 424K" which is located in Division 5 of
Part 5A of Chapter 11 (repealed by Item 25 of this Part).
Item 25 repeals the redundant and spent Divisions 1 to 5 of Part 5A of Chapter 11 which provides for the payment of a clean energy advance to persons who were eligible for compensation under Part 2 of Chapter 4 of the Military Rehabilitation and Compensation Act during the period from 14 May 2012 to 30 June 2013.
Division 2 - Other amendments
Income Tax Assessment Act 1997
Item 26 amends section 52-114 of the Income Tax Assessment Act 1997. Table item 22 is amended to repeal a reference to a clean energy payment made under Part 5A of Chapter 11 of the Military Rehabilitation and Compensation Act (repealed by Item 25 of this Part).
Division 3 - Saving provisions
Item 27 is a saving provision which provides that, despite the repeal of the provisions under which the clean energy payments were payable and the amendments made by this Part, the provisions will continue to apply, on and after the commencement of this Item, in relation to payments of clean energy advance for the following purposes:
- •
- payments of clean energy advance under Division 4 of Part 5A of Chapter 11 of the Military Rehabilitation and Compensation Act;
- •
- recovery of debts concerning clean energy advances determined under Division 5 of Part 5A of Chapter 11; and
- •
- tax exemption for the purposes of the Income Tax Assessment Act 1997 under table item 22 in sections 52-114 for clean energy advances.
The savings provision will ensure that subsequent to the commencement of the amendments made by this Part, a person will retain eligibility for the clean energy advance in the following circumstances:
- •
- the person becomes eligible for the payment of the underlying payment which made the person eligible for payments of the clean energy advance; and
- •
- the payment of the underlying payment concerned a period during which the person would have been eligible for the clean energy advance.
In the circumstances where a person receives payments of the clean energy advance as a consequence of the saving provision, the debt recovery provisions and the tax exemption under the Income Tax Assessment Act 1997, will also be applicable where it will be appropriate.
Part 3 - Other amendments
Veterans' Entitlements Act 1986
Item 28 is a minor correction to subsection 52B(4) to replace a reference to the "Commission" with a reference to the "Minister". Subsection 52B(3) refers to a valuation being determined by the "Minister" under subsection 52B(4). A consequential amendment to subsection 52B(4) (by the Veterans' Affairs Legislation Amendment (International Agreements and Other Measures) Act 2008) incorrectly replaced the reference to the "Minister" with a reference to the "Commission".
Item 29 is a transitional provision which provides for the continuation of an existing determination made under subsection 52(4) that was in force in immediately before the commencement of the item.
It provides that, subsequent to the 2008 amendment to subsection 52B(4), that any determination that has been made, if any, will continue to be applicable until it is revoked or replaced.
Items 30 and 31 amend subsections 213(2) and (4). Section 213 had originally provided for the delegation by the Repatriation Commission of its powers and functions under the Veterans' Entitlements Act, the Regulations and other specified Acts.
Subsection 213(1) was subsequently amended to also provide for the delegation of the powers and functions of the Repatriation Commission under a legislative instrument made under the Veterans' Entitlements Act.
The amendments to subsections 213(2) and (4) make it clear that the legislation under which a delegation can be made will also include a legislative instrument made under the Veterans' Entitlements Act.
Items 32 and 33 amend subsections 214(2) and (4). Section 214 had originally provided for the delegation by the Secretary of his or her powers and functions under the Veterans' Entitlements Act or the Regulations.
Subsection 214(1) was subsequently amended to also provide for the delegation of the powers and functions of the Secretary under a legislative instrument made under the Veterans' Entitlements Act.
The amendments to subsections 214(2) and (4) make it clear that the legislation under which a delegation can be made will also include a legislative instrument made under the Veterans' Entitlements Act.
Commencement
Clause 2 provides that the amendments made by Schedule 8 commence on the day after the Act receives Royal Assent.