Veterans’ Entitlements Act 1986
Act No.27 of 1986 as amended
This compilation was prepared on 12July 2005
taking into account amendments up to Act No.100 of 2005
Volume 2 includes:Table of Contents
Sections46 – 93ZG
The text of any of those amendments not in force
on that date is appended in the Notes section
The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section
Veterans’ Entitlements Act 1986 1
Contents
PartIIIB—Provisions applicable to service pensions and income support supplement
Division1—Ordinary income concept
46General meaning of ordinary income......
46ACertain amounts taken to be received over 12 months......
Division2—Business income
46BOrdinary income from a business—treatment of trading stock....
46CPermissible reductions of business income......
Division3—Deemed income from financial assets
46DDeemed income from financial assets—persons other than members of couples
46EDeemed income from financial assets—members of a couple....
46HDeeming threshold......
46JBelow threshold rate, above threshold rate......
46KActual return on financial assets not treated as ordinary income...
46LCertain money and financial investments not taken into account...
46MValuation and revaluation of certain financial investments......
Division4—Income from income streams
Subdivision B—Income streams that are not family law affected income streams
46SAScope of Subdivision......
46TIncome from assettest exempt income stream......
46UIncome—income stream not a defined benefit income stream....
46VIncome—income stream is a defined benefit income stream.....
46WIncome from assettested income stream (long term)....
46XIncome—income stream not a defined benefit income stream....
46YIncome—income stream is a defined benefit income stream.....
Subdivision C—Family law affected income streams
46ZScope of Subdivision......
46ZAIncome from assettest exempt income streams......
46ZBIncome from assettested income stream (long term)....
46ZCDetermination of guidelines is a disallowable instrument......
Division6—Income tests–conversion of foreign currency amounts
47Application of Division......
47AConversion of foreign currency amounts......
47BBase exchange rate......
47CReassessed exchange rate......
47DApplicability of reassessed exchange rate......
47ERounding off exchange rates......
Division7—Income tests–disposal of ordinary income
48Disposal of ordinary income......
48AAmount of disposition......
48BDisposal of ordinary income—not a member of a couple......
48CDisposal of ordinary income—members of couples......
48EDispositions more than 5 years old to be disregarded......
Division8—Retirement assistance for farmers
Subdivision1—General
49Purpose of Division......
49AAApplicable cutoff date......
49ABPreassessment request......
49ADivision to apply to certain transfers of estates in farms etc......
49BHow to assess the value of farms etc. subject to a transfer......
Subdivision2—Modification of provisions relating to assets test
49CTransfer of estate in farm etc. not disposal of an asset......
Subdivision3—Claims for service pension or income support supplement
49DProvisional commencement day......
Subdivision4—Requests for increase in rate of service pension or income support supplement
49EApplication......
49FRequest for increase......
49GMaking a request......
49HDetermination of request......
Subdivision5—Farmers’ income test
49JDoes a person satisfy the farmers’ income test?......
Subdivision6—Transitional: ex gratia payments
49KEx gratia payments......
Division8A—Retirement assistance for sugarcane farmers
Subdivision A—General
49LPurpose of Division......
49MRASF commencement and closing days......
49NApplicable cutoff date......
49PPreassessment request......
49QDivision to apply to certain transfers of estates in sugarcane farms etc.
49RHow to assess the total net value of sugarcane farms etc. subject to a transfer
Subdivision B—Modification of provisions relating to assets test
49STransfer of estate in sugarcane farm etc. not disposal of an asset...
Subdivision C—Claims for service pension or income support supplement
49TProvisional commencement day......
Subdivision D—Requests for increase in rate of service pension or income support supplement
49UApplication......
49VRequest for increase......
49WMaking a request......
49XDetermination of request......
Subdivision E—Sugarcane farmers’ income test
49YDoes a person satisfy the sugarcane farmers’ income test?......
Division9—New Enterprise Incentive Scheme
50General effect of Division......
50AReduction in rate of payments under this Part if recipient or partner also receiving payments under NEIS
50BRate reduction under this Division......
Division10—General provisions relating to maintenance income
51Apportionment of capitalised maintenance income......
51AInkind housing maintenance—value of substitute for family home
Division11—General provisions relating to the assets test
Subdivision A—Value of person’s assets
52Certain assets to be disregarded in calculating the value of a person’s assets
52AAValue of superannuation investments determined by Minister to be disregarded
52AValue of assettested income streams that are not defined benefit income streams
52BValue of assettested income streams that are defined benefit income streams
52BAValue of assettested FLA income streams......
52BBValue of partially assettest exempt income streams....
52CEffect of charge or encumbrance on value of assets......
52CAEffect of certain liabilities on value of assets used in primary production
52DLoans......
Subdivision B—Dispositions of assets (general provisions)
52EDisposal of assets......
52FAmount of disposition......
Subdivision BA—Dispositions of assets before 1July 2002
52FAAApplication......
52FADisposal of assets in prepension years—not a member of a couple
52GDisposal of assets in pension years—not a member of a couple...
52GADisposal of assets in prepension years—members of couples
52HDisposal of assets in pension years—members of couples......
52JDispositions more than 5 years old to be disregarded......
Subdivision BB—Dispositions of assets on or after 1July 2002
52JADisposition of assets in tax year—individuals......
52JBDispositions of assets in 5 year period—individuals......
52JCDisposition of assets in tax year—members of couples......
52JDDisposition of assets in 5 year period—members of couples.....
Subdivision C—Provisions relating to special residences and special residents
52KAApplication of Subdivision to granny flat residents......
52LBasis for different treatment......
52MEntry contribution......
52NExtra allowable amount......
52PRenegotiation of retirement village agreement......
52QResidents who are not members of a couple......
52RMembers of couples......
52SMembers of illness separated couple (both in special residences)..
52TMembers of illness separated couple (partner not in special residence and partner property owner)
52UMembers of illness separated couple (partner not in special residence and partner not property owner)
52VMembers of ordinary couple with different principal homes (both in special residences)
52WMembers of ordinary couple with different principal homes (partner not in special residence and partner property owner)
52XMembers of ordinary couple with different principal homes (partner not in special residence and partner not property owner)
Subdivision D—Financial hardship
52YAccess to financial hardship rules......
52ZApplication of financial hardship rules......
Subdivision E—Pension loans scheme
52ZAAAPension loans scheme definitions......
52ZAEligibility for participation in pension loans scheme......
52ZBEffect of participation in pension loans scheme—pension rate....
52ZCEffect of participation in pension loans scheme—creation of debt..
52ZCAEffect of participation in pension loans scheme—maximum loan available
52ZDNeed for a request to participate......
52ZENeed for a request to later nominate or change guaranteed amount or rate of pension
52ZFExistence of debt results in charge over real assets......
52ZGDebt not to be recovered until after death......
52ZHEnforcement of charge......
52ZJPerson ceases to participate in pension loans scheme if debt exceeds maximum loan available
52ZKPerson withdraws from pension loans scheme......
52ZKARepayment or recovery of debt after pension loans scheme ceases to operate because debt exceeds maximum loan available or person withdraws
52ZLRegistration of charge......
52ZMManner of enforcement of charge......
Subdivision F—Commutation of assettest exempt income stream
52ZMADebt resulting from commutation of assettest exempt income stream contrary to subsection 5JA(2), 5JB(2) or 5JBA(2)
Division11A—Means test treatment of private companies and private trusts
Subdivision A—Introduction
52ZNSimplified outline......
52ZODefinitions......
52ZPRelatives......
52ZQAssociates......
52ZRWhen a company is sufficiently influenced by an entity......
52ZSMajority voting interest in a company......
52ZTEntitled to acquire......
52ZUTransfer of property or services......
52ZVConstructive transfers of property or services to an entity......
52ZWActive involvement with a primary production enterprise......
52ZXPower to veto decisions of a trustee......
52ZYExtraterritorial operation......
52ZZApplication to things happening before commencement......
Subdivision B—Designated private companies
52ZZADesignated private companies......
Subdivision C—Designated private trusts
52ZZBDesignated private trusts......
Subdivision D—Controlled private companies
52ZZCControlled private companies......
52ZZDDirect voting interest in a company......
52ZZEVoting power......
52ZZFDirect control interest in a company......
52ZZGInterest in a share......
Subdivision E—Controlled private trusts
52ZZHControlled private trusts......
52ZZIInterest in a trust......
Subdivision F—Attributable stakeholders and attribution percentages
52ZZJAttributable stakeholder, asset attribution percentage and income attribution percentage
Subdivision G—Attribution of income of controlled private companies and controlled private trusts
52ZZKAttribution of income......
52ZZLNo double counting of attributed income......
52ZZMOrdinary income of a company or trust......
52ZZNOrdinary income from a business—treatment of trading stock....
52ZZOPermissible reductions of business and investment income......
52ZZPDerivation periods......
52ZZQAttribution periods......
Subdivision H—Attribution of assets of controlled private companies and controlled private trusts
52ZZRAttribution of assets......
52ZZSWhen attributed asset is unrealisable......
52ZZTEffect of charge or encumbrance on value of assets......
52ZZUEffect of unsecured loan on value of assets......
52ZZVValue of company’s or trust’s assets etc......
Subdivision I—Modification of asset deprivation rules
52ZZWIndividual disposes of asset to company or trust......
52ZZXDisposal of asset by company or trust......
52ZZYIndividual ceases to be an attributable stakeholder of a company or trust
52ZZZIndividual disposes of asset to company or trust before 1January 2002—individual is attributable stakeholder
52ZZZAIndividual disposes of asset to company or trust before 1January 2002—individual’s spouse is attributable stakeholder
Subdivision J—Modification of income deprivation rules
52ZZZBIndividual disposes of ordinary income to company or trust.....
52ZZZCDisposal of income by company or trust......
52ZZZDIndividual disposes of income to company or trust before 1January 2002—individual is attributable stakeholder
52ZZZEIndividual disposes of income to company or trust before 1January 2002—individual’s spouse is attributable stakeholder
Subdivision K—Concessional primary production trusts
52ZZZFConcessional primary production trusts......
52ZZZGIndividual ceases to be an attributable stakeholder of a trust—receipt of remuneration or other benefits from trust during asset deprivation period
52ZZZHNet value of asset......
52ZZZIValue of entity’s assets......
52ZZZJWhen asset is controlled by an individual......
52ZZZKAdjusted net value of asset......
52ZZZLAdjusted net primary production income......
52ZZZMNet income of a primary production enterprise......
52ZZZNNet income from a primary production enterprise—treatment of trading stock
52ZZZOPermissible reductions of income from carrying on a primary production enterprise
Subdivision L—Antiavoidance
52ZZZPAntiavoidance......
Subdivision M—Decisionmaking principles
52ZZZQDecisionmaking principles......
Subdivision N—Information management
52ZZZRTransitional period......
52ZZZSInformationgathering powers......
52ZZZTCommission may obtain tax information......
52ZZZUDisclosure of tax information......
52ZZZVDisclosure of tax file number information......
Division12—Service pensioner and income support supplement recipient benefits
Subdivision A—Introduction
53Fringe benefits and treatment at Departmental expense for certain service pensioners
Subdivision B—Fringe benefits
53AFringe benefits......
53BCommission must determine continued fringe benefits eligibility circumstances
Subdivision C—Treatment at Departmental expense
53DEligibility for treatment at Departmental expense......
53EVeterans to satisfy certain conditions......
Division12A—Payments after bereavement
Subdivision A—Bereavement period
53HDefinition......
Subdivision B—Death of pensioner’s partner (where partner was receiving a pension or a social security pension)
53JApplication......
53KWhat happens if pensioner’s reassessed rate equals or exceeds combined pensioner couple rate
53LWhat happens if pensioner’s reassessed rate is less than combined pensioner couple rate
53MDetermination of amount of pension and social security pension...
53NTransfer to another pension......
53NANo liability of financial institution for certain payments to pensioner
Subdivision C—Death of pensioner
53PApplication......
53QPayment of one instalment......
Subdivision D—Death of dependent child
53RApplication......
53SWhen reassessed pension rate in respect of pensioner comes into effect
53TBereavement payment......
Division13—Recipient obligations
54Secretary may require notification of an event or change of circumstances
54ASecretary may require recipient to give particular information relevant to the payment of pension
54AASecretary may require recipient to give information, produce documents or appear before an officer
54BDocument served with a section54 notice......
54BASecretary may require a person to whom a service pension or income support supplement is being paid to take action to obtain a comparable foreign pension
54CInterpretation......
Division14—Pensioners in certain institutions
Subdivision A—Imprisonment
55Pension may be suspended or forfeited when pensioner in gaol...
55AInstalments may be redirected to partner or child......
Subdivision B—Benevolent homes
55BApplication of Subdivision......
55DInmate of benevolent home......
55EPensioner contribution......
Division15—Variation and termination
56Automatic termination or rate reduction—recipient complying with section54 notification obligations
56AAutomatic termination—recipient not complying with section54 notification obligations
56BAutomatic rate reduction—recipient not complying with section54 notification obligations
56CRate increase determination [see Note 4]......
56DRate reduction determination......
56DANo rate increase or reduction for small amounts......
56ECancellation or suspension determination—general......
56EACancellation or suspension determination for failure to comply with section54A notice
56EBCancellation or suspension for failure to take action to obtain a comparable foreign pension
56ECCancellation determination where pension not payable......
56FResumption of a payment after suspension......
56GDate of effect of favourable determination......
56GADate of effect of determination under section56C—dependent child
56HDate of effect of adverse determination......
56JPension may be cancelled at pensioner’s request......
56KPension may be suspended if instalments not drawn......
56LCommission may end suspension......
56MEffect of cancellation or suspension......
56NChanges to payments by computer......
Division16—Review of decisions
57Claimants and service pensioners may seek review of certain decisions
57AApplication for review......
57BCommission’s powers where request for review......
57CDate of effect of certain review decisions......
57DCommission must make written record of review decision and reasons
57EPerson who requested review to be notified of decision......
57FPowers of Commission to gather evidence......
57GWithdrawal of request for review......
57HCommission may reimburse certain expenses......
Division17—Administration of pension payments
Subdivision A—General administration of pension payments
58Application of Subdivision......
58APayment by instalments......
58CManner of payment......
58DAgents......
58EPension payday falling on public holiday etc......
58FPayment into bank account etc......
58JPayments to Commissioner of Taxation......
Subdivision B—Payment of pension outside Australia
58KAge, invalidity and partner service pensions and income support supplement generally portable
58LPayment of pension outside Australia......
58MNo portability if claim based on shortterm residence....
58NTransfer to portable pension......
Division18—Indexation
Subdivision A—Preliminary
59Analysis of Division......
59AIndexed and adjusted amounts......
Subdivision B—CPI indexation
59BCPI Indexation Table......
59CIndexation of amounts......
59DIndexation factor......
59ERounding off indexed amounts......
59EACertain indexed amounts to be increased in line with increases in Male Total Average Weekly Earnings
Subdivision C—Adjustment of other rates
59GAAdjustment of rent free area......
59GBAdjustment of adjusted income free area......
59HAdjustment of pension “single” nonproperty owner AVL.
59JAdjustment of special illness separated special resident AVL.....
59LAdjustment of pharmaceutical allowance......
59LAAdjustment of ceiling rate......
PartIIIC—Compensation recovery
Division1—General
59MGeneral effect of Part......
59NCertain lump sums to be treated as though they were received as periodic payments
59OEffect of certain State and Territory laws......
Division2—Enforcement of compensation rights
59PCommission may require person to take action to obtain compensation
Division3—Receipt of compensation
59QPension etc. not payable during lump sum preclusion period.....
59QADeemed lump sum payments arising from separate payments....
59RPerson may have to repay amount where both lump sum and pension have been received
59SLump sum compensation not counted as ordinary income......
59TEffect of periodic compensation payments on rate of person’s compensation affected pension
59TAEffect of periodic compensation payments on rate of partner’s compensation affected pension
59UClaim for compensation affected pension granted to person qualified for compensation affected payment under Social Security Act
59VRate reduction under both income/assets test and this Part......
59WPerson may have to repay amount where both periodic compensation payments and pension have been received
59XPeriodic compensation payments not counted as ordinary income..
Division4—Compensation payers
59YCommission may send preliminary notice to potential compensation payer
59ZPotential compensation payer must notify Department of liability..
59ZACommission may send recovery notice to compensation payer....
59ZBPreliminary notice or recovery notice suspends liability to pay compensation
59ZCCompensation payer’s payment to Commonwealth discharges liability to compensation recipient
59ZDOffence to make compensation payment after receiving preliminary notice or recovery notice
Division5—Insurers
59ZECommission may send preliminary notice to insurer......
59ZFInsurer must notify Department of liability......
59ZGCommission may send recovery notice to insurer......
59ZHPreliminary notice or recovery notice to insurer suspends both insurer’s and compensation payer’s liability
59ZIInsurer’s payment to Commonwealth discharges liability......
59ZJOffence to make compensation payment after receiving preliminary notice or recovery notice
Division6—Miscellaneous
59ZKCommission may give recovery notice either to compensation payer or to insurer but not to both
59ZLCommission may disregard some payments......
59ZMPart to bind Crown......
PartIV—Pensions for members of Defence Force or Peacekeeping Force and their dependants
Division1—Interpretation
68Interpretation......
69Application of Part to members of the Forces......
69AApplication of Part to members of the Forces who render hazardous service
Division2—Eligibility for pension
70Eligibility for pension under this Part......
70AMost defencecaused injuries, diseases and deaths of members of the Defence Force no longer covered by this Act
71Application of certain provisions of PartII......
72Dual entitlement to pension......
Division3—Rates of pension
73Application of Divisions4 and 5 of PartII......
Division4—Pension and other compensation
73AThis Division does not apply to certain payments......
74Payments by way of compensation or damages......
75Proceedings against third party......
76Payment of damages to Commonwealth......
77Discharge of liability of Commonwealth to pay damages......
78Other payments of compensation......
79Overpayments of pension......
PartIVA—Advance payments of pension and income support supplement
Division1—General
79ADefinition......
Division2—Eligibility for advance payment
79BEligibility for advance payment......
Division3—Applying for advance payment
79CApplication......
79DWho can apply......
79EMaking an application......
79GApplicant must be Australian resident and in Australia......
79HApplication may be withdrawn......
Division4—Determination of application and payment of advance payment
79ICommission to determine application......
79JPayment of advance payment......
Division5—Maximum amount of advance payment
79KMaximum amount of advance payment......
Division6—Advance payment deductions
79LAdvance payment deduction......
79MAmount of advance payment deduction—basic calculation......
79NPerson may request larger advance payment deduction......
79OReduction of advance payment deduction in cases of severe financial hardship
79PThe final advance payment deduction......
79QPayment rate insufficient to cover advance payment deduction....
79RRounding of amounts......
79SUnrepaid advance payments to deceased partner to be disregarded.
Division7—Review by Commission
79TRequest for review......
79UCommission’s powers......
79VCommission must make written record of review decision and reasons
79WPerson who requested review to be notified of decision......
79XPowers of Commission to gather evidence......
79YWithdrawal of request for review......
PartV—Medical and other treatment
80Interpretation [see Note 3]......
81Application of PartV......
84Provision of treatment......
85Veterans eligible to be provided with treatment......
85ATreatment under section279 or 280 of the MRCA for aggravated injuries or diseases
85BTreatment under section279 or 280 of the MRCA if a person is entitled to treatment under the VEA for a separate injury or disease
86Dependants eligible to be provided with treatment......
88ACommission may determine specified veterans and others are eligible to be provided with specified treatment
89Treatment at hospitals and other institutions......
90Guide to the provision of treatment......
90ADetermination etc. of Repatriation Private Patient Principles.....
90BApplication of Repatriation Private Patient Principles......
91Pharmaceutical benefits......
92Counselling services and psychiatric assessment......
93Recovery of cost of treatment......
93ACharges payable to Commonwealth......
93BFalse statements relating to treatment......
93CKnowingly making false statements relating to treatment......
93DBribery etc......
93EProhibited practices in relation to the rendering of pathology services
93FOffences against 2 or more provisions......
93GStatements inadmissible in evidence......
93HRecovery of amounts paid because of false statements......
93JProsecution of offences......
PartVA—Extension of Repatriation Pharmaceutical Benefits Scheme
Division1—Definitions
93KDefinitions......
Division2—Pharmaceutical benefits may be obtained
93LCertain veterans and mariners may obtain pharmaceutical benefits.
Division3—Eligibility for, and entitlement to, pharmaceutical benefits card
Subdivision A—Eligibility
93MWho is eligible?......
Subdivision B—Entitlement
93NEntitlement to a pharmaceutical benefits card under this Part.....
Division4—Claim for pharmaceutical benefits card under this Part
93PNeed for a claim......
93QWho can claim?......
93RMaking a claim......
93TClaimant must be an Australian resident and in Australia......
93UClaim may be withdrawn......
Division5—Investigation of claim
93VSecretary to investigate claim and submit it to Commission......
Division6—Consideration and determination of claim
93WDuties of Commission in relation to claim......
93XEntitlement determination......
93YDate of effect of determination......
Division7—Review of decisions
93ZReview of certain decisions......
93ZAApplication for review......
93ZBCommission’s powers where request for review......
93ZCDate of effect of certain review decisions......
93ZDCommission must make written record of review decision and reasons
93ZEPerson who requested review to be notified of decision......
93ZFPowers of Commission to gather evidence......
93ZGWithdrawal of request for review......
Veterans’ Entitlements Act 1986 1
Provisions applicable to service pensions and income support supplement Part IIIB
Retirement assistance for sugarcane farmers Division 8A
Section 49S
PartIIIB—Provisions applicable to service pensions and income support supplement
Division1—Ordinary income concept
46 General meaning of ordinary income
A reference in this Act to a person’s ordinary income for a period is a reference to the person’s gross ordinary income from all sources for the period calculated without any reduction, other than a reduction under Division2.
Note 1:For ordinary incomesee subsection 5H(1).
Note 2:For other provisions affecting the amount of a person’s ordinary income see sections46B and 46C (business income), sections46D to 46L (deemed income from financial assets) and sections46Q to 46Y (income from income streams).
46A Certain amounts taken to be received over 12 months
If a person receives, whether before or after the commencement of this section, an amount that:
(a)is not income within the meaning of Division3 or 4 of this Part; and
(b)is not:
(i)income in the form of periodic payments; or
(ii)ordinary income from remunerative work undertaken by the person; or
(iii)an exempt lump sum;
the person is, for the purposes of this Act, taken to receive one fiftysecond of that amount as ordinary income of the person during each week in the 12 months commencing on the day on which the person becomes entitled to receive that amount.