House of Representatives

Explanatory Memorandum

(Circulated by authority of the Minister for Families, Community Services and Indigenous Affairs, the Hon Mal Brough MP)

Schedule 6 - Increase in funeral benefits

Summary

These amendments to the Veterans' Entitlements Act will give effect to the 2007 Budget measure to increase the maximum amount of funeral benefit payable from $1000 to $2000.

Background

Funeral benefit is paid to assist with meeting funeral expenses. Funeral benefit is paid to the estate of a deceased veteran if, immediately before the veteran died, the veteran was being paid an extreme disablement adjustment, special rate, a pension increased by items 1 to 8 of section 27 or had been a prisoner of war.

Other circumstances where funeral benefit may be paid include for a veteran whose death was war-caused, for a veteran who died in indigent circumstances and for certain dependants of veterans where the dependant died in indigent circumstances. Funeral benefit may also be payable if the person was receiving treatment at Departmental expense prior to their death.

The eligibility criteria for this benefit is much less restrictive, unlike the Military Rehabilitation and Compensation Act 2004, which only provides funeral assistance where a person's death is accepted as actually caused by defence service or the person was severely impaired.

Explanation of the changes

Amendments of the Veterans' Entitlements Act

Item 1 amends subsection 98B(2) by omitting '$1,000' and substituting '$2,000'.

Item 2 amends paragraph 99(4)(a) by omitting '$1,000' and substituting '$2,000'.

Item 3 amends subsection 100(2) by omitting '$1,000' and substituting '$2,000'.

Item 4 is an application provision and provides that the increased funeral benefit applies only in respect of persons whose death occurs on or after the commencement date of 1 July 2007.