Explanatory Memorandum
(Circulated by authority of the Minister for Families, Community Services and Indigenous Affairs, the Hon Mal Brough MP)Schedule 7 - Increase in rate of certain pensions
Summary
These amendments to the Veterans' Entitlements Act will give effect to the 2007 Budget measure to increase the amount of special rate and intermediate rate disability pension. The changes will increase the amount of intermediate rate disability pension by $25 per fortnight and the amount of special rate disability pension by $50 per fortnight.
Background
Pensions paid under Parts II and IV of the Veterans' Entitlements Act are generally referred to as disability pensions. Disability pensions are paid to Australian veterans and mariners, certain members of the Forces and members of a Peacekeeping Force for incapacity from injuries or diseases (disabilities) that are accepted as war or defence-caused. The disability pension is non-taxable and non means tested. Disability pensions are indexed twice annually.
There are four categories of disability pension:
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- general rate;
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- extreme disablement adjustment;
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- intermediate rate; and
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- special rate.
For veterans whose employability is affected by their war or defence caused disabilities alone, the two higher rates of disability pension, the intermediate rate and the special rate, apply. Briefly, the special rate is paid to veterans assessed as unable to undertake remunerative work for more than eight hours a week as a result of their service-related incapacity alone. The intermediate rate is paid to veterans assessed as unable to undertake remunerative work for more than 20 hours a week as a result of their service-related incapacity alone.
Explanation of the changes
Amendments of the Veterans' Entitlements Act
Item 1 amends subsection 23(4) by omitting '$394.50' and substituting '$619.80'.
Item 2 amends subsection 24(4) by omitting '571.70' and substituting '$919.40'.
Item 3 is an application provides and provides that the increased rates of intermediate and special rate disability pension apply to pension periods that start after 1 July 2007.
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