Mr BRUCE SCOTT (Minister for Veterans' Affairs)(9.31 p.m.) —by leave—I move government amendments Nos 1 to 17:

(1)   Title, page 1 (lines 3 and 4), omit "and the Safety, Rehabilitation and Compensation Act 1988 ", substitute ", the Safety, Rehabilitation and Compensation Act 1988 and other legislation ".

(2)   Clause 2, page 2 (line 2), omit "subsections (2) and (3)", substitute "the following subsections".

(3)   Clause 2, page 2 (after line 6), at the end of the clause, add:

(4)   Part 3A of Schedule 1 commences on 20 September 1998.

(5)   Part 3B of Schedule 1 commences on the earlier of the following days:

   (a)   the social security payday that is the third such payday to occur after the day on which this Act receives the Royal Assent; or

   (b)   the 25 December 1997 carer payment payday.

   Note:   For the meaning of social security payday and 25 December 1997 carer payment payday , see subsection (17).

(6)   Part 3D of Schedule 1 commences on the seventh day after the day on which this Act receives the Royal Assent.

(7)   Schedule 4 is taken to have commenced on 1 July 1997.

(8)   Schedules 5 and 7 commence on the 28th day after the day on which this Act receives the Royal Assent.

(9)   Part 1 of Schedule 8 is taken to have commenced on 5 June 1987, immediately after the Veterans' Affairs Legislation Amendment Act 1987 received the Royal Assent.

(10)   Part 2 of Schedule 8 is taken to have commenced on 16 December 1994, immediately after the Veterans' Affairs (1994-95 Budget Measures) Legislation Amendment Act (No. 2) 1994 received the Royal Assent.

(11)   Part 3 of Schedule 8 is taken to have commenced on 17 October 1995, immediately after the Veterans' Affairs Legislation Amendment and Repeal Act 1995 received the Royal Assent.

(12)   Part 4 of Schedule 8 is taken to have commenced on 14 November 1995, immediately after the Veterans' Affairs (1995-96 Budget Measures) Legislation Amendment Act 1995 received the Royal Assent.

(13)   Part 5 of Schedule 8 is taken to have commenced on 12 December 1995, immediately after the Veterans' Affairs Legislation Amendment (1995-96 Budget Measures) Act (No. 2) 1995 received the Royal Assent.

(14)   Part 6 of Schedule 8 is taken to have commenced on 9 January 1996, immediately after the Social Security and Veterans' Affairs Legislation Amendment Act 1995 received the Royal Assent.

(15)   Part 7 of Schedule 8 is taken to have commenced on 1 July 1997.

(16)   Part 8 of Schedule 8 is taken to have commenced on 20 March 1996.

(17)   In this section:

   social security payday means a day that is a pension payday as defined in section 23 of the Social Security Act 1991 .

   25 December 1997 carer payment payday means:

   (a)   unless paragraph (b) applies—the social security payday that falls on 25 December 1997; or

   (b)   if, under section 218 of the Social Security Act 1991 , a direction is made that amounts of carer payment that would normally be paid on 25 December 1997 are to be paid on a specified earlier day—that specified earlier day.

(4)   Schedule 1, item 6, page 7 (table item 3, 3rd column), omit "later", substitute "earlier".

(5)   Schedule 1, item 15, page 14 (lines 15 and 16), omit the item.

(6)   Schedule 1, item 19, page 22 (line 17), omit "(other than an amount of pension payable under Part II or IV)".

(7)   Schedule 1, page 28 (after line 31), after Part 3, insert:

Part 3A—Eligibility of certain veterans to receive medical and other treatment

33AA Section 53E

Repeal the section, substitute:

53E Veterans to satisfy certain conditions

(1)   This section applies to a veteran if:

   (a)   the veteran is permanently blind; or

   (b)   the veteran's rate of service pension is neither income reduced nor assets reduced; or

   (c)   the veteran's rate of service pension is either income reduced or assets reduced, but the reduction does not exceed the income/assets reduction limit applicable to the veteran.

   Note:   For income/assets reduction limit see subsection (2).

(2)   The income/assets reduction limit applicable to a veteran is worked out by using Table 53E. Work out which item in the table applies to the veteran by identifying his or her family situation. The applicable income/assets reduction limit is the amount in column 3 of that item plus (if the veteran has a dependent child or dependent children) the amount in column 5 of that item for each dependent child.

Table 53E—Income/Assets Reduction Limit

   Note 1:   For member of a couple and partnered see section 5E.

   Note 2:   For dependent child see section 5F.

   Note 3:   Members of illness separated and respite care couples are covered by item 2 of the table.

   Note 4:   The basic reduction and additional reduction are indexed 6 monthly in line with CPI increases (see sections 59B to 59E).

(3)   If, on a particular day:

   (a)   the annual rate of a veteran's ordinary income increases; and

   (b)   as a result of the increase, the veteran's rate of service pension is income reduced by an amount that is not more than 150% of the income/assets reduction limit applicable to the veteran;

   this section continues to apply to the veteran until:

   (c)   the end of the period of 13 weeks starting on the first pension payday after that day; or

   (d)   the reduction exceeds 150% of the income/assets reduction limit applicable to the veteran;

   whichever happens first.

33AB Sections 53F and 53G

   Repeal the sections.

33AC Section 59A (table item 8)

   Repeal the item.

33AD Section 59A (table items 14, 15, 16 and 17)

   Repeal the items, substitute:

33AE Section 59B (table item 5)

   Repeal the item.

33AF Section 59B (table items 9 and 10)

   Repeal the items, substitute:

33AG Subsection 59C(2) (step 4 of the method statement)

   Omit " indexed amount " (last occurring), substitute " rounded-off amount ".

33AH Subsection 59C(2) (at the end of the method statement)

   Add:

33AI Section 59K

   Repeal the section.

33AJ Subsection 85(5) (note)

   Repeal the note.

(8)   Schedule 1, page 28 (after line 31), after proposed new Part 3A, insert:

Part 3B—Amendments relating to the transfer of carer service pension recipients and carer income support supplement recipients

Division 1—Main amendments

33BA Section 5 (index)

   Omit:

   care receiver            5Q(1)

33BB Subsection 5NB(1) (paragraph (c) of the definition of compensation affected pension )

   Repeal the paragraph.

33BC Subsection 5Q(1) (definition of care receiver )

   Repeal the definition.

33BD Subsection 5Q(1) (paragraph (c) of the definition of service pension )

   Omit "; or", substitute ".".

33BE Subsection 5Q(1) (paragraph (d) of the definition of service pension )

   Repeal the paragraph.

33BF Paragraph 35(1)(b)

   Repeal the paragraph, substitute:

   (b)   Divisions 3, 4 and 5 deal with the 3 kinds of service pension (age, invalidity and partner service pension respectively); and

33BG Subsection 35(2)

   Omit "Divisions 3, 4, 5 and 6", substitute "Divisions 3, 4 and 5".

33BH Division 6 of Part III

   Repeal the Division.

33BI Paragraph 41(1)(c)

   Omit "and".

33BJ Paragraph 41(1)(d)

Repeal the paragraph.

Note:   The heading to section 41 is replaced by the heading "Rate of age, invalidity and partner service pension (no dependent children) ".

33BK Subsection 41(2)

   Omit "invalidity, partner or carer", substitute "invalidity or partner".

33BL Subsection 41(4)

   Omit "age, invalidity or carer", substitute "age or invalidity".

33BM Paragraph 42(1)(c)

   Omit "and"

33BN Paragraph 42(1)(d)

   Repeal the paragraph.

   Note:   The heading to section 42 is replaced by the heading "Rate of age, invalidity and partner service pension (dependent child or children) ".

33BO Subsection 42(3)

   Omit "age, invalidity or carer", substitute "age or invalidity".

33BP Point 42-C2 (table C-1, column 6)

   Repeal the column.

33BQ Point 42-C2 (table C-1, item 5)

   Repeal the item.

33BR Point 42-C2 (key)

   Omit "Service carer = carer service pension".

33BS Point 43-C2 (table C-1, column 6)

   Repeal the column.

33BT Point 43-C2 (table C-1, item 5)

   Repeal the item.

33BU Point 43-C2 (key)

   Omit "Service carer = carer service pension".

33BV Subparagraph 45(1)(b)(ii)

   Omit "or".

33BW Subparagraph 45(1)(b)(iii)

   Repeal the subparagraph.

   Note:   The heading to section 45 is replaced by the heading "Rate of age and invalidity service pension (war widow or war widower) ".

33BX Subparagraph 45(2)(b)(ii)

   Omit "or".

33BY Subparagraph 45(2)(b)(iii)

   Repeal the subparagraph.

33BZ Section 45AB

   Repeal the section.

33CA Paragraph 45D(1)(ba)

   Repeal the paragraph.

33CB Point 45Y-G2 (table G-1, column 8)

   Repeal the column.

33CC Point 45Y-G2 (table G-1, item 6)

   Repeal the item.

33CD Point 45Y-G2 (key)

   Omit "Service care = carer service pension".

33CE Paragraph 50A(2)(c)

   Repeal the paragraph, substitute:

   (c)   an instalment of partner service pension in respect of the person is payable to the person's partner during a pension period;

33CF Subparagraph 50A(3)(c)(ii)

   Omit "or".

33CG Subparagraph 50A(3)(c)(iii)

   Repeal the subparagraph.

33CH Subsection 52(1)

   Omit "52ZA, 52ZCA, 53AJ and 53AL", substitute "52ZA and 52ZCA".

33CI Subsection 52A(1)

   Omit "52G, 52H, 53AJ and 53AL", substitute "52G and 52H".

33CJ Section 52K

   Repeal the section.

33CK Paragraph 52Q(3)(e)

   Omit "sections 52G and 53AJ", substitute "section 52G".

33CL Paragraph 52R(3)(e)

   Omit "sections 52H and 53AL", substitute "section 52H".

33CM Paragraph 52S(3)(e)

   Omit "sections 52H and 53AL", substitute "section 52H".

33CN Paragraph 52S(5)(eb)

   Omit "sections 52H and 53AL", substitute "section 52H".

33CO Paragraph 52T(3)(cb)

   Omit "sections 52H and 53AL", substitute "section 52H".

33CP Paragraph 52U(4)(e)

   Omit "52G, 52H and 53AL", substitute "52G and 52H".

33CQ Section 52ZAA

   Repeal the section.

33CR Section 52ZN

   Repeal the section.

33CS Division 11A of Part IIIB

   Repeal the Division.

33CT Subdivision E of Division 12A of Part IIIB

   Repeal the Subdivision.

33CU Division 12B of Part IIIB

   Repeal the Division.

33CV Division 13A of Part IIIB

   Repeal the Division.

33CW Sections 56BB and 56BC

   Repeal the sections.

33CX Section 56GAA

   Repeal the section.

33CY Subsection 56H(3)

   Omit "subsections (4), (5), (6), (7), (8), (9), (10) and (11)", substitute "subsections (4), (5), (6), (7) and (8)".

33CZ Subsections 56H(9), (10) and (11)

   Repeal the subsections.

33DA Section 56HA

   Repeal the section.

33DB Subsection 56J(1)

   Omit ", carer service pension".

33DC Subsection 56J(1) (note)

   Omit "Similarly, if a person has been receiving carer service pension because of caring for the veteran, that carer service pension will also be terminated.".

33DD Section 56K

   Omit ", carer service pension".

33DE Section 56K (note 2)

   Omit "Similarly, if a person has been receiving carer service pension because of caring for the veteran, that carer service pension will also be cancelled or suspended.".

33DF Section 57AA

   Repeal the section.

33DG Subsection 57A(1A)

   Repeal the subsection.

33DH Subsection 57A(2)

   Omit "or (1A)".

33DI Section 57CA

   Repeal the section.

33DJ Subsection 58K(1) (paragraph (ab) of the note)

   Omit "(4);", substitute "(4).".

33DK Subsection 58K(1) (paragraph (b) of the note)

   Repeal the paragraph.

33DL Section 58KA

   Repeal the section.

33DM Sections 59GC, 59GD and 59GE

   Repeal the sections.

33DN Paragraph 59M(1)(e)

   Repeal the paragraph.

33DO Subsection 59M(6)

   Repeal the subsection.

33DP Section 59W (example 1)

   Omit "carer" (wherever occurring), substitute "partner".

33DQ Paragraph 85(7)(b)

   Omit "(other than a carer service pension)".

33DR Subsection 98(4A)

   Repeal the subsection.

33DS Subparagraph 118AA(a)(ii)

   Repeal the subparagraph.

33DT Subsection 205(1)

   Omit "Subject to subsection (1AA), this", substitute "This".

33DU Subsection 205(1AA)

   Repeal the subsection.

Division 2—Related transitional and saving provisions

33DV At the end of Schedule 5

   Add:

8    Transitional and saving provisions: amendments relating to the transfer of carers

   (1)   If:

      (a)   a person was receiving a carer service pension immediately before the transfer day; and

      (b)   neither subclause (2) nor (4) applies to the person;

      an instalment of carer service pension is payable to the person on the transfer day at the rate worked out using the following formula:

Reduced annual rate

         2               + Pharmaceutical allowance

   where:

   reduced annual rate means the rate payable in accordance with this Act on the last pension payday before the transfer day, excluding any pharmaceutical allowance payable to a person under this Act.

   pharmaceutical allowance means the amount of pharmaceutical allowance that would have been included in the person's carer service pension if the payment was an instalment under section 58A.

(2)   Subject to subclause (5), if:

   (a)   a person (the carer ) was receiving a carer service pension immediately before the transfer day; and

   (b)   the veteran partner who is being cared for by the carer is receiving an age service pension or an invalidity service pension; and

   (c)   the carer would, apart from subsection 38(1B), be eligible for a partner service pension;

   this Act continues to apply to the person in relation to carer service pension as if the amendments made by Division 1 of Part 3B of Schedule 1 to the amending Act had not been made.

(3)   Subject to subclause (5), if:

   (a)   a person was receiving income support supplement immediately before the transfer day; and

   (b)   subsection 45AB(1) applied to the person; and

   (c)   the person would, apart from paragraph 45A(1)(b) and section 45AB, be eligible for income support supplement;

   this Act continues to apply to the person in relation to income support supplement as if the amendments made by Division 1 of Part 3B of Schedule 1 to the amending Act had not been made.

(4)   Subject to subclause (5), if:

   (a)   a person (the carer ) is receiving a carer service pension immediately before the transfer day; and

   (b)   the veteran who is being cared for by the carer is not receiving an age service pension or an invalidity service pension but passes the income test under section 53AA and either passes the assets test under section 53AD or is the subject of a decision in force under section 53AN that the assets test does not apply to the veteran;

   this Act continues to apply to the person in relation to carer service pension as if the amendments made by Division 1 of Part 3B of Schedule 1 to the amending Act had not been made.

(5)   If carer service pension or income support supplement ceases to be payable to the person after the transfer day, then subclause (2), (3) or (4), as the case requires, ceases to apply to the person.

(6)   References in this clause to other provisions of this Act are references to those provisions as they would be if the amendments made by Division 1 of Part 3B of Schedule 1 to the amending Act had not been made.

(7)   In this clause:

   amending Act means the Veterans' Affairs Legislation Amendment (Budget and Compensation Measures) Act 1997 .

   transfer day means the day on which Part 3B of Schedule 1 to the amending Act commences.

(9)   Schedule 1, page 28 (after line 31), after proposed new Part 3B, insert:

Part 3C—Amendment relating to appropriations

33EA Paragraph 199(b)

   Repeal the paragraph, substitute:

   and (b)   medical and other treatment services provided under Part V; and

(10)   Schedule 1, page 28 (after line 31), after proposed new Part 3C, insert:

Part 3D—Amendments relating to rehabilitation

33FA At the end of subsection 5H(8)

   Add:

   ; (zn)   an amount worked out under section 115G.

33FB Subsection 23(4)

   Omit "The", substitute "Subject to subsection (5), the".

33FC At the end of section 23

   Add:

(5)   If section 115D applies to a veteran, the rate at which pension is payable to the veteran is the amount specified in subsection (4) less the pension reduction amount worked out under that section.

33FD Subsection 24(4)

   Omit "The", substitute "Subject to subsection (5), the".

33FE At the end of section 24

   Add:

   (5)   If section 115D applies to a veteran, the rate at which pension is payable to the veteran is the amount specified in subsection (4) less the pension reduction amount worked out under that section.

33FF Section 24A

   Omit "Where", substitute "Subject to subsection (2), if".

33FG At the end of section 24A

   Add:

   (2)   Paragraphs (1)(b) and (c) do not apply to a veteran if the veteran is undertaking a rehabilitation program under the Veterans' Vocational Rehabilitation Scheme or section 115D applies to the veteran.

33FH Subsection 25(2)

      Omit "specified in subsection 24(4)", substitute "applicable under subsections 24(4) and (5)".

33FI After subsection 37(2)

   Insert:

   (2A)   Paragraph (2)(a) does not apply to a person who is a veteran if the veteran is undertaking a rehabilitation program under the Veterans' Vocational Reha bilitation Scheme or section 115G applies to the veteran.

33FJ After Part VI

   Insert:

Part VIA—Rehabilitation

Division 1—Preliminary

115A Definitions

   In this Part, unless the contrary intention appears:

   CPI payday means the first pension payday that occurs on or after the beginning of each relevant period within the meaning of that term in section 198.

   member of a Peacekeeping Force has the same meaning as in subsection 68(1).

   member of the Forces has the same meaning as in subsection 68(1).

   unaffected pension rate means the rate of pension that a veteran would have received if the veteran had not undertaken a vocational rehabilitation program under the Veterans' Vocational Rehabilitation Scheme.

   unemployment includes:

   (a)   retirement from remunerative work; and

   (b)   undertaking less than 16 hours of remunerative work in a pension period;

   but does not include any period of paid leave.

   veteran means:

   (a)   a person:

      (i)   who is, because of section 7, taken to have rendered eligible war service; or

      (ii)   in respect of whom a pension is payable under subsection 13(6); or

      (iii)   who satisfies subsection 37(3); or

   (b)   a member of the Forces; or

   (c)   a member of a Peacekeeping Force.

   Veterans' Vocational Rehabilitation Scheme means a scheme made under subsection 115B(1).

   work and pension income rate means the rate equal to the sum of:

   (a)   the veteran's salary, wages or earnings per fortnight from remunerative work; and

   (b)   the fortnightly rate of pension paid to the veteran under Part II or IV.

115B Making of the Scheme

   (1)   The Commission may, from time to time, by instrument in writing, make a scheme, to be called the Veterans' Vocational Rehabilitation Scheme, to assist specified classes of veterans to find employment and to continue in employment.

   (2)   The Commission may, from time to time, by instrument in writing, vary or revoke the scheme.

   (3)   A scheme made by the Commission under subsection (1), and an instrument varying or revoking such a scheme, have no force or effect unless approved by the Minister.

   (4)   If a scheme has been made by the Commission under subsection (1), or an instrument under subsection (2), the scheme or the instrument is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901 .

   (5)   Without limiting the powers of the Commission under subsection (1), the Scheme may make provision for and in relation to:

      (a)   the provision of rehabilitation programs, under the Scheme, to specified veterans; and

      (b)   the provision of vocational guidance and assistance, under the Scheme, to specified veterans; and

      (c)   the payment of financial assistance, under the Scheme, to specified veterans in respect of education or training that is being undertaken under the Scheme by the veterans; and

      (d)   the provision of services in relation to the assessment of veterans for participation in rehabilitation programs; and

      (e)   the payment of financial assistance, under the Scheme, to specified veterans in respect of transport costs arising from the veterans' participation in the Scheme; and

      (f)   the payment of financial assistance, under the Scheme, to specified veterans in respect of aids that enable the veterans to participate in, or assist veterans to participate in, the Scheme; and

      (g)   the provision for review of determinations under section 115F.

   (6)   Before making a scheme, or varying or revoking the scheme, the Commission must consult such organisations and associations, representing the interests of the veteran community, as the Commission thinks appropriate.

Division 2—Provisions relating to the income of veterans who participate in vocational rehabilitation programs

115C Rate of pension while on program

   (1)   Subject to sections 115D and 115G, this section applies while a veteran is undertaking a vocational rehabilitation program under the Veterans' Vocational Rehabilitation Scheme.

   (2)   If this section applies to a veteran on a pension payday, the rate of pension payable to the veteran is equal to the amount the veteran would receive if the veteran were not undertaking the program.

115D Pension reduction amount—pensions under Parts II and IV

   (1)   Subject to subsections (4) and (5) and section 115F, the pension reduction amount in respect of a veteran for a pension payday that occurs within the period (the initial period ) that begins on the day after the veteran first commenced remunerative work as a result of undertaking the vocational rehabilitation program (the commencement day ) and ends immediately before the first CPI payday that occurs more than 2 years after the beginning of that period is to be worked out using the following formula:

   Pension rate on commencement - General rate

2

   (2)   Subject to subsections (4) and (5) and section 115F, the pension reduction amount in respect of a veteran for a pension payday that occurs within the period (the second period ) that begins immediately after the initial period and ends 5 years after the commencement day is to be worked out using the following formula:

   (3)   Subject to subsections (4) and (5) and section 115F, the pension reduction amount in respect of a veteran for a pension payday that occurs more than 5 years after the end of the initial period is to be worked out using the following formula:

Pension rate on commencement—General rate

   (4)   If a veteran is unemployed for a continuous period of at least 2 weeks, the pension reduction amount for each pension payday within that period is nil.

   (5)   If a veteran is in receipt of pension at the special rate because of subsection 24(3), the pension reduction amount for each pension payday is nil.

   (6)   In this section:

   general rate means the general rate of pension.

   no. of paydays means the number of CPI paydays that have occurred in the period.

   pension rate on commencement means the rate of pension under this Act that was payable to the veteran on the day on which the veteran commenced his or her vocational rehabilitation program.

115E Application for reduction of the pension reduction amount

   (1)   This section applies if, because of the application of the pension reduction amount to the rate of pension payable to a veteran, the work and pension income rate of the veteran in relation to a pension period is or would be less than the unaffected pension rate for the veteran in relation to that period.

   (2)   A veteran to whom this section applies may apply to the Commission to have the pension reduction amount reduced.

   (3)   An application must be:

      (a)   in writing; and

      (b)   in accordance with a form approved by the Commission; and

      (c)   accompanied by any relevant documentary evidence in relation to salary, wages and other earnings from remunerative work for the period to which the application relates; and

      (d)   lodged at an office of the Department in Australia.

115F Determination by the Commission

   (1)   This section applies if, after considering an application under section 115E, the Commission is satisfied that the rate at which a pension has been, is being or is to be paid, to a veteran resulted, or would result, in a work and pension income rate for the applicant in relation to a pension period that is less or would be less than the unaffected pension rate in relation to that period.

   (2)   If this section applies, the Commission may determine in writing that the pension reduction amount in relation to the veteran for a past, present or future pension payday is to be reduced by such amount as the Commission is satisfied would result in the work and pension income rate being equal to the unaffected pension rate.

   (3)   A determination takes effect on the day on which the determination is made.

115G Excluded income amount—invalidity service pensions

   (1)   The excluded income amount in respect of a veteran for a pension payday that occurs within the period (the initial period ) that begins on the day after the veteran first commenced remunerative work as a result of undertaking the vocational rehabilitation program and ends immediately before the first CPI payday that is more than 2 years after the beginning of the initial period is half of the earnings of the veteran in the pension period that relates to the pension payday.

   (2)   The excluded income reduction amount in respect of a veteran for a pension payday that occurs within each consecutive 6 month period during the 5 years that begins immediately after the initial period is worked out using the following formula:

(0.5 - 0.05 x No. of 6 month periods) x Earnings

   where:

   no. of 6 month periods means the number of consecutive 6 month periods that have begun in the 5 year period.

   earnings means salary, wages or earnings from remunerative work in the pension period that relates to the pension payday.

Division 3—Recovery of cost of rehabilitation

115H Recovery of cost of rehabilitation

   (1)   In this section, compensation , in relation to a person who is undertaking, or has undertaken, a rehabilitation program under the Veterans' Vocational Rehabilitation Scheme, means an amount that is by way of compensation or damages, or is, in the opinion of the Commission, in the nature of compensation or damages, in respect of the disease, disability or condition because of which the rehabilitation program is being, or has been, undertaken.

   (2)   This section applies if a veteran who is undertaking, or has undertaken, a rehabilitation program under the Veterans' Vocational Rehabilitation Scheme:

      (a)   has made a claim against another person for compensation, or may be, or may become, entitled to be paid compensation by another person, in relation to the disease, disability or condition because of which the rehabilitation program is being, or has been, undertaken; or

      (b)   is entitled, whether because of an order of a court, a settlement of a claim for compensation or otherwise, to be paid compensation by another person; or

      (c)   has been paid compensation by another person, whether because of an order of a court, a settlement of a claim for compensation or otherwise.

   (3)   A reference in subsection (2) to another person includes a reference to the Commonwealth, a State, a Territory or an authority of the Commonwealth, a State or a Territory.

   (4)   If this section applies, the Commission may give to the veteran a written notice requiring the veteran to pay for:

      (a)   a rehabilitation program or any part of such a program that has been undertaken by the veteran under the Veterans' Vocational Rehabilitation Scheme before the day on which the notice was given to the veteran; and

      (b)   a rehabilitation program or any part of such a program undertaken at any time on or after the day on which the notice was given to the veteran;

      in relation to the disease, disability or condition.

   (5)   On being given the notice, the veteran becomes, by force of this section, liable to pay to the Commonwealth an amount equal to the cost, or amounts equal to the sum of the costs, as determined by the Commission, of and incidental to:

      (a)   a rehabilitation program or any part of such a program that has been undertaken by the veteran under the Veterans' Vocational Rehabilitation Scheme before the day on which the notice was given to the veteran; and

      (b)   a rehabilitation program or any part of such a program undertaken at any time on or after the day on which the notice was given to the veteran.

   (6)   If the veteran is, under subsection (5), liable to make payment to the Common wealth for a rehabilitation program provided by the Commission, the Commission may, by written notice given to a person who:

      (a)   may be, or may become, liable; or

      (b)   is liable;

      to pay compensation to, or for the benefit of, the veteran in respect of the disease, disability or condition, inform the person that the veteran is liable to make payment to the Commonwealth for a rehabilitation program under the Veterans' Vocational Rehabilitation Scheme, whether undertaken before or after the giving of the notice.

   (7)   A reference in subsection (6) to a person includes a reference to an insurer who, under a contract of insurance, is liable to indemnify the person or is liable to pay compensation to, or for the benefit of, the veteran against that liability.

115J Where a person receives a notice under subsection 115H(6)

   (1)   This section applies to a person if the person has been given a notice under subsection 115H(6).

   (2)   If the person:

      (a)   is, on being given the notice, liable to pay compensation to, or for the benefit of, the veteran to whom the notice relates in respect of the disease, disability or condition to which the notice relates; or

      (b)   becomes, after receiving the notice, so liable to pay compensation; or

      the person becomes liable, because of this subsection, to pay to the Commonwealth:

      (c)   an amount equal to the cost of the rehabilitation program that the veteran is liable, or may become liable, under subsection 115H(5), to pay; or

      (d)   an amount equal to the amount of compensation that the person is liable, or becomes liable, so to pay;

      whichever is the less.

   (3)   If, before the notice was given to the person, the person paid to, or for the benefit of, the veteran the whole of the compensation that the person was liable to pay in respect of the disease, disability or condition to which the notice relates, the notice has no effect.

   (4)   If a person is liable, or becomes liable, to pay an amount to the Commonwealth under subsection (2), the person must not, without the permission of the Commission, pay the compensation, or any part of the compensation, to, or for the benefit of, the veteran.

   (5)   Payment to the Commonwealth of an amount under subsection (2) operates, to the extent of the payment:

      (a)   as a discharge to the person of his or her liability to pay compensation to the veteran entitled to receive the compensation; and

      (b)   as a discharge of the veteran's liability under subsection 115H(5).

115K Recovery of amount by the Commonwealth

   The Commonwealth may recover in a court of competent jurisdiction an amount that a person is liable to pay to the Commonwealth under subsection 115H(5) or 115J(2).

115L Determination of amount of costs of rehabilitation programs

   (1)   This section applies if the Commission determines, in writing, the amount of the cost of, or incidental to, a rehabilitation program under a Veterans' Vocational Rehabilitation Scheme for a veteran during a specified period in respect of a disease, disability or condition in relation to which a notice has been given under subsection 115H(4).

   (2)   The Commission may give a notice to the veteran containing a copy of that determination, or notices to the veteran and the

person referred to in subsection 115H(6) containing copies of that determination.

   (3)   If the Commission gives a copy of a determination to a veteran or a person under subsection (2), the copy is, for all purposes, prima facie evidence:

      (a)   that the copy of the determination set out in the notice is a true copy of the determination of which it purports to be a copy; and

      (b)   that the determination was duly made by the Commission; and

      (c)   that the amount specified in the determination is the amount which the veteran is liable, by force of subsection 115H(5), to pay to the Commonwealth as the cost of and incidental to the rehabilitation program under the Veterans' Vocational Rehabilitation Scheme during the period so specified for and in relation to that disease, disability or condition.

   (4)   The giving of a notice, or notices, under subsection (2) does not prevent the making of a further determination or determinations, and the giving by the Commission of a further notice or further notices under that subsection.

(11)   Schedule 1, item 41, page 30 (at the end of the table), add:

(12)   Schedule 2, item 1, page 31 (line 7), omit "30 June 1951", substitute "1 July 1951".

(13)   Page 32 (after line 20), at the end of the Bill, add:

Schedule 4—Consequential amendments relating to the change of name from carer pension to carer payment

Veterans' Entitlements Act 1986

1 Sections 5F, 5H, 5Q, 36H, 37H, 38H, 45G, 45H and 98

   Omit "carer pension" (wherever occurring), substitute "carer payment".

Veterans' Entitlements (Transitional Provisions and Consequential Amendments) Act 1986

2 Paragraph 10(4)(a)

   Omit "carer pension", substitute "carer payment".

(14)   Page 32 (after line 20), at the end of the Bill, after proposed new Schedule 4, add:

Schedule 5—Amendments relating to certain saved fringe benefits

Veterans' Affairs Legislation Amendment Act 1992

1 Paragraph 83(a)

   Repeal the paragraph, substitute:

   (a)   a veteran was eligible for fringe benefits because of subsection 17(1) or (2) of the Veterans' Entitlements (Rewrite) Transition Act 1991 as in force immediately before the commencement of Schedule 5 to the Veterans' Affairs Legislation Amendment (Budget and Compensation Measures) Act 1997 ; and

   Note:   The heading to section 83 is altered by omitting "are " and substituting "were ".

Veterans' Entitlements Act 1986

2 Section 53A (notes 1 and 2)

   Repeal the notes.

3 Subsection 53D(1) (note 4)

   Omit "is" (first occurring), substitute "was".

4 Subsection 53D(1) (note 4)

   After "Veterans' Entitlements (Rewrite) Transition Act 1991 ", insert "as in force immediately before the commencement of Schedule 5 to the Veterans' Affairs Legislation Amendment (Budget and Compensation Measures) Act 1997 ".

5 Subsection 118Q(1) (note 1)

   Omit "Note 1:", substitute "Note:".

6 Subsection 118Q(1) (note 2)

   Repeal the note.

7 Subsection 118S(2) (note)

   Repeal the note.

Veterans' Entitlements (Rewrite) Transition Act 1991

8 Division 3 of Part 2

   Repeal the Division.

(15)   Page 32 (after line 20), at the end of the Bill, after proposed new Schedule 5, add:

Schedule 6—Amendments of the Social Security Act 1991 relating to the payment of certain pensions

1 Subsection 57(1)

   After "Subject to", insert "subsections (2) and (3) and".

2 At the end of section 57

   Add:

   (3)   If:

      (a)   an age pension is payable to a person; and

      (b)   the person receives a veteran's disability pension or the person's partner receives an age pension and a veteran's disability pension; and

      (c)   the Secretary makes a determination for the purposes of this subsection in relation to the person that specifies pension paydays for the person; and

      (d)   the determination referred to in paragraph (c) has not been revoked;

      the instalments referred to in subsection (1) are to be paid to the person on such pension paydays.

   (4)   In this section:

   veteran's disability pension has the same meaning for the purposes of this section as paragraph (a), (b) or (c) of the definition of disability pension has in section 5Q of the Veterans' Entitlements Act 1986 .

3 After section 59

   Insert:

59A Calculation of amount of a half instalment

   (1)   Despite any other provision of this Act, this section applies if:

      (a)   the Secretary determines pension paydays under subsection 57(3); and

      (b)   the first pension payday specified in the determination (the first pension payday ) is 7 days after the pension payday that applies under subsection 57(1).

   (2)   Subject to subsection (4), the rate at which age pension is payable to the person on the first pension payday in accordance with the determination is to be worked out using the following formula:

   where:

Normal age pension instalment

2

   normal age pension instalment means the amount of age pension the person would have received if the first pension payday were a pension payday under subsection 57(1) apart from this section.

   (3)   The rate at which age pension is payable to the person on the first pension payday after the determination is revoked is to be worked out using the following formula:

Normal age pension instalment

2

   where:

   normal age pension instalment means the amount of age pension the person would have received on the pension payday under subsection 57(1) apart from this section.

   (4)   If the Secretary determines pension paydays under subsection 57(3) in relation to a person before the person receives an instalment of age pension where:

      (a)   the age pension has been granted to the person for the first time under this Act; or

      (b)   the age pension has been granted to the person under this Act after the person's age pension has been cancelled;

   subsection (2) does not apply to the person.

4 Subsection 161(1)

   After "Subject to", insert "subsections (2) and (3) and".

5 At the end of section 161

   Add:

   (3)   If:

      (a)   a person receives a wife pension; and

      (b)   the person's partner receives:

         (i)   an age pension; and

         (ii)   a veteran's disability pension; and

      (c)   the Secretary makes a determination for the purposes of this subsection in relation to the person that specifies pension paydays for the person; and

      (d)   the determination referred to in paragraph (c) has not been revoked;

      the instalments referred to in subsection (1) are to be paid to the person on such pension paydays.

   (4)   In this section:

   veteran's disability pension has the same meaning for the purposes of this section as paragraph (a), (b) or (c) of the definition of disability pension has in section 5Q of the Veterans' Entitlements Act 1986.

6 After section 163

   Insert:

163A Calculation of amount of a half instalment

   (1)   Despite any other provision of this Act, this section applies if:

      (a)   the Secretary determines pension paydays under subsection 161(3); and

      (b)   the first pension payday specified in the determination (the first pension payday ) is 7 days after the pension payday that applies under subsection 161(1).

   (2)   The rate at which wife pension is payable to the person on the first pension payday in accordance with the determination is to be worked out using the following formula:

Normal wife pension instalment

2

   where:

   normal wife pension instalment means the amount of wife pension the person would have received if the first pension payday were a pension payday under subsection 161(1) apart from this section.

   (3)   The rate at which wife pension is payable to the person on the first pension payday after the determination is revoked is to be worked out using the following formula:

Normal wife pension instalment

2

   where:

   normal wife pension instalment means the amount of wife pension the person would have received on the pension payday under subsection 161(1) apart from this section.

(16)   Page 32 (after line 20), at the end of the Bill, after proposed new Schedule 6, add:

Schedule 7—Amendment of the National Health Act 1953 in relation to the abolition of the modified income test

1 Subsection 84(1) (paragraphs (ba) and (bb) of the definition of concessional beneficiary )

Repeal the paragraphs.

(17)   Page 32 (after line 20), at the end of the Bill, after proposed new Schedule 7, add:

Schedule 8—Other minor amendments

Part 1—Amendment of the Veterans' Affairs Legislation Amendment Act 1987

1 Schedule 1 (paragraph (a) of the amendment of Schedule 2 (item 8))

   Repeal the paragraph, substitute:

      (a)   Omit "161 kilometres" (in column 1, wherever occurring), substitute "185.2 kilometres".

Part 2—Amendment of the Veterans' Affairs (1994-95 Budget Measures) Legislation Amendment Act (No. 2) 1994

2 Paragraph 18(g) (new subsection 45V(2))

   Renumber the second paragraph (c) as paragraph (e).

Part 3—Amendment of the Veterans' Affairs Legislation Amendment and Repeal Act 1995

3 Item 4 of Schedule 1

   Omit "in Point 43-A1".

4 Item 107 of Schedule 1

   Omit "income's", substitute "incomes".

Part 4—Amendment of the Veterans' Affairs (1995-96 Budget Measures) Legislation Amendment Act 1995

5 Item 8 of Schedule 4 (new subparagraph 38(1)(c)(ia))

   After "whose partner", insert "or non-illness separated spouse,".

Part 5—Amendment of the Veterans' Affairs Legislation Amendment (1995-96 Budget Measures) Act (No. 2) 1995

6 Item 11 of Schedule 6

   Repeal the item, substitute:

11 Paragraph 52S(5)(eb)

   Omit "section 52H", substitute "sections 52H and 53AL".

7 Item 12 of Schedule 6

   Repeal the item, substitute:

12 Paragraph 52T(3)(cb)

   Omit "section 52H", substitute "sections 52H and 53AL".

Part 6—Amendment of the Social Security and Veterans' Affairs Legislation Amendment Act 1995

8 Item 13 of Schedule 17

   Repeal the item, substitute:

13 Subsection 52(1)

   After "52H,", insert "52ZA, 52ZCA,".

Part 7—Amendment of the Veterans' Entitlements Act 1986 (carer amendments commencing on 1 July 1997)

9 Subparagraph 39(2)(c)(i)

   Omit "42", substitute "52".

10 Paragraph 39(2A)(b)

   Omit "education or employment", substitute "education, unpaid voluntary work or paid employment".

11 Paragraph 39(2A)(c)

   Omit "10", substitute "20".

12 Subparagraph 45AB(2)(c)(i)

   Omit "42", substitute "52".

13 Paragraph 45AB(4)(b)

   Omit "education or employment", substitute "education, unpaid voluntary work or paid employment".

14 Paragraph 45AB(4)(c)

   Omit "10", substitute "20".

Part 8—Amendment of the Veterans' Entitlements Act 1986 relating to bereavement payments

15 Subdivision B of Division 12A of Part IIIB (heading)

   Repeal the heading, substitute:

Subdivision B—Death of pensioner's partner (where partner was receiving a pension or a social security pension)

16 Section 53J (note 2)

   Repeal the note, substitute:

   Note 2:   As regards people receiving carer service pension or income support supplement, note that:

   (a)   this Subdivision does not apply to such a pension or supplement that is being received under section 53X; and

   (b)   Subdivision E applies to the situation where the partner who dies was not receiving a pension or a social security pension.

17 Subdivision E of Division 12A of Part IIIB (heading)

   Repeal the heading, substitute:

Subdivision E—Death of person being cared for (where the carer was not the person's partner or the person was not receiving a pension or a social security pension)

18 Section 53U (definition of pension )

   Before " pension ", insert " carer ".

19 Paragraphs 53V(1)(a), (b) and (c)

   Repeal the paragraphs, substitute:

   (a)   a person (the pensioner ) is receiving a carer pension because he or she provides care for a person; and

   (b)   the person being cared for dies; and

   (c)   either:

      (i)   the person being cared for was not the pensioner's partner; or

      (ii)   the person being cared for was the pensioner's partner but was not receiving a pension or a social security pension immediately before his or her death.

20 Subsection 53V(1)

   Omit "the pension", substitute "the carer pension".

21 Subsection 53V(4)

   Before "pension" (wherever occurring), insert "carer".

22 Subsection 53V(6)

   After "amount of the", insert "carer".

23 Subsection 53V(6) (note)

   Before "pension", insert "carer".

24 Paragraph 53W(1)(a)

   Before "pension", insert "carer".

25 After subsection 53W(1)

   Insert:

   (1A)   A lump sum is payable to a person (the pensioner ) under this section if:

      (a)   the pensioner is receiving a carer pension; and

      (b)   the person is caring for another person who is the pensioner's partner; and

      (c)   the person being cared for dies; and

      (d)   the person being cared for was not receiving a pension, a social security pension or a social security benefit immediately before his or her death.

26 Subsection 53W(2) (definition of carer's current instalment )

   Before "pension", insert "carer".

Part 9—Amendment of the Veterans' Entitlements Act 1986 (minor technical amendments)

27 Paragraph 5H(8)(zb)

   Repeal the paragraph, substitute:

   (zb)   a payment to a veteran that is a bereavement payment under section 98A; or

28 Paragraph 5H(8)(zl) (last occurring)

   Renumber as (zm).

29 Paragraph 5L(10A)(b)

   Repeal the paragraph, substitute:

   (b)   income support supplement; or

   (c)   a social security pension;

30 Subsection 5L(12)

   After "service pension", insert "or an income support supplement".

31 Subparagraph 36H(2)(a)(iii)

   Repeal the subparagraph, substitute:

   (iii)   income support supplement; or

   (iv)   a social security pension; and

32 Subsection 36H(2) (note)

   Omit "Note:", substitute "Note 1:".

33 At the end of subsection 36H(2)

   Add:

   Note 2:   For social security pension see subsection 5Q(1).

34 Subparagraph 37H(2)(a)(iii)

   Repeal the subparagraph, substitute:

   (iii)   income support supplement; or

   (iv)   a social security pension; and

35 Subsection 37H(2) (note)

   Omit "Note:", substitute "Note 1:".

36 At the end of subsection 37H(2)

   Add:

   Note 2:   For social security pension see subsection 5Q(1).

37 Paragraph 52FA(1)(a)

   Omit "or a social security pension", substitute ", an income support supplement or a social security pension".

38 Paragraph 52GA(1)(b)

   Omit "or a social security pension", substitute ", an income support supplement or a social security pension".

39 Subparagraph 52GA(1)(c)(ii)

   Omit "or a social security pension", substitute ", an income support supplement or a social security pension".

40 Subsection 93B(4)

   Omit "21", substitute "15B".

41 Paragraph 118E(2)(a)

   Omit "paragraph 118JA(c)", substitute "paragraph 118A(1)(c)".

42 Paragraph 118E(2)(b)

   Omit "paragraph 118JA(a) or (b)", substitute "paragraph 118A(1)(a) or (b)".

43 Subsection 128(6)

   After "States,", insert "of the Australian Capital Territory,".

44 Schedule 5

   Renumber the clauses in the Schedule as clauses 1 to 7.

I thank the opposition for their leave and consideration of the amendments that have been circulated. I present the supplementary explanatory memorandum. Before I explain these amendments I would like to put the record straight on a number of issues that were raised by members on the other side of the House. The opposition really has quite a nerve claiming that the government cost veterans dearly because of the time delay in passing this legislation. In fact, it has been the opposition that had an unholy alliance with the Democrats in the upper house which has inconvenienced the veterans of this nation. This Veterans' Affairs Legislation Amend ment (Budget and Compensation Measures) Bill 1997 should have passed the House before we rose in the winter. But it was Labor who resorted to join with the Democrats in their cosy little coalition in the upper house in an attempt to open up debate on social security legislation that had already been passed in the Senate. Quite clearly, the Labor Party really must have been asleep when that social security legislation passed through the Senate. Otherwise, why did they attempt the tactics that they did in seeking to amend the bill?

It is also particularly offensive to choose a veterans bill. I also note their lack of consideration of the fact that the Veterans' Entitlements Act and issues relating to the veterans has nearly always had bipartisan support in the past. It was indeed a very tacky measure of the Labor Party to seek to amend the Veterans' Entitlements Act by talking up issues relating to social security on a bill that had already passed the House. I urge the shadow minister to look at the issue of veterans quite separately from those other issues in future because, by not winning that debate, he did not do his party any good with those who perhaps might have been trying to seek to gain political points on a veterans issue in the upper house.

I now turn to one of the main thrusts of the amendments. This is the rationalisation of payments between the Department of Veterans' Affairs and the Department of Social Security. This reflects the government's commitment to administrative reform and to streamlining the delivery of government services.

One of the amendments will allow age pensioners who also receive a disability pension to choose to be paid both pensions by the Department of Veterans' Affairs. For the veterans and their eligible partners it will mean that they will need to deal with only one department.

Thousands of veterans have already registered their intention to transfer their payments to my department. Many of them already have been very bitterly disappointed by the pointless delaying measures of the opposition. (Extension of time granted)

Yet another amendment provides for the establishment of the vocational rehabilitation scheme for veterans. That is indeed a very good measure. In fact, it is one that the opposition sought to bring in whilst they were in government. It is one that particularly the younger veterans of our country have sought for many years to have implemented. It is an important measure. It is one that has bipartisan support, one that will bring immense benefits to the veterans, particularly the younger veterans.

The scheme will provide for early intervention for younger veterans leaving the forces and support for the Vietnam veterans. It will assist veterans to find employment and to continue in employment. The development of the legislation for the scheme, and of the scheme itself, has been the subject of extensive consultation with the ex-service community. Once again, I want to thank the veteran community for their assistance in developing this scheme, because it would not be possible to introduce this measure without the cooperation of the veterans themselves. I do thank them very sincerely for their cooperation as this scheme has been developed.

The scheme will be available to all eligible veterans, but special provision has been made for those veterans who are receiving a disability pension or a service pension on the grounds that they are prevented by their incapacity from working full time. The legislation presents guarantees that those veterans who volunteer to take part in a rehabilitation program under the scheme will not have their pension reduced while participating in that program.

The legislation also ensures that veterans will receive at least the same income from earnings and disability pension combined as he or she would have received as a disability pensioner and the veteran had not participated in the rehabilitation program and entered employment. If at any time the veteran ceases employment, he or she will revert to the rate of disability pension payable when the rehabilitation program was initially undertaken. These safeguards and guarantees remove disincentives for veterans to volunteer for rehabilitation back into the work force.

The benefits veterans may obtain from participating in a rehabilitation program go well beyond financial advantages. These programs increase a person's self-reliance and their ability to cope with life's tasks. They provide opportunities for socialisation and can help markedly, in many instances, in improving the quality of the participant's life.

Included with the other amendments moved in relation to this bill is the 1997-1998 budget initiative to streamline the determination of a service pensioner's eligibility for medical treatment at the expense of the Department of Veterans' Affairs. As a result of this simplification and the associated removal of the anomalies, about 100 veterans will gain access to treatment benefits.

This bill demonstrates this government's commitment to expanding and improving benefits to the veteran community. These measures are not a reward for those who served this country in war; they are benefits for veterans who have earned them by their sacrifices. I urge all members of this House to acknowledge the beneficial nature of this bill. I particularly urge the opposition to quit grandstanding when this bill gets to the Senate.

The government remains absolutely committed to maintaining existing veterans' entitlements. As the bill demonstrates, benefits and services will continue to be reviewed to maintain their quality, their fairness and their appropriateness. Also, the government is committed to improving efficiency in the delivery of these benefits and services. The outcome will be a system that is responsive to the changing needs of the veterans and their families and one that directs resources to the greatest needs. I commend amendments Nos 1 to 17 to the House. I thank honourable members for their participation.