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Veterans’ Affairs Legislation Amendment Bill 2012

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7352

2010-2011-2012-2013

 

The Parliament of the

Commonwealth of Australia

 

THE SENATE

 

 

 

 

 

Veterans’ Affairs Legislation Amendment Bill 2012

 

 

(1)           Clause 2, page 2 (after table item 4), insert:

5.  Schedule 2

1 July 2013

 

[military superannuation and pensions]

(2)           Page 13 (after line 27), at the end of the Bill, add:

 

Schedule 2 Amendments

Part 1—Amendments

Defence Forces Retirement Benefits Act 1948

1  Subsection 83(1)

Insert:

LCI means Pensioner and Beneficiary Living Cost Index.

2  Subsection 83(1)

Insert:

LCI number , in relation to a quarter, means the All Groups Pensioner and Beneficiary Living Cost Index number that is the weighted average of the 8 capital cities and is published by the Statistician in respect of that quarter.

3  Subsection 83(1)

Insert:

VEA means Veterans’ Entitlements Act 1986 .

4  Subsection 84(1)

After “with this section”, insert “and section 84AA”.

5  Subsection 84(2)

Omit “The”, substitute “Subject to section 84AA, the”.

6  After section 84

Insert:

84AA   Additional increase in certain pensions

             (1)  This section applies in relation to a pensioner who is 55 or older.

             (2)  In relation to a pensioner to whom this section applies, the prescribed percentage for a prescribed half-year, ascertained in accordance with subsection 84(3), is taken to be increased in accordance with this section.

             (3)  If the prescribed percentage for a prescribed half-year is less than the percentage for the prescribed half-year worked out using the pension MBR method in section 84AB, the prescribed percentage is taken to be the percentage worked out using the pension MBR method.

             (4)  If, after applying subsection (3), the prescribed percentage for the prescribed half-year is less than the percentage for the prescribed half-year worked out using the LCI method in section 84AC, the prescribed percentage is taken to be the percentage worked out using the LCI method.

84AB   Percentage increase using the pension MBR method

             (1)  The percentage worked out in relation to a prescribed half-year using the pension MBR method is the percentage that represents A — B expressed as a percentage of B, where:

A is the single pension rate MBR amount (see item 1A of the table in section 59A of the VEA) applicable on the adjustment day prior to the first day of the prescribed half year; and

B is the single pension rate MBR amount (see item 1A of the table in section 59A of the VEA) applicable on the day before that adjustment day;

worked out to 3 decimal places.

Note:          Changes in the single pension rate MBR amount reflect changes in Male Total Average Weekly Earnings (MTAWE).

Rounding

             (2)  If a percentage worked out under subsection (1) would, if it were worked out to 4 decimal places, end in a number that is greater than 4, that percentage is to be increased by 0.001.

Publication of substituted amounts

             (3)  If at any time (whether before or after the commencement of this section), the Australian Statistician publishes an amount in substitution for a particular amount previously published by the Australian Statistician, the publication of the later amount is to be disregarded for the purposes of this section.

Interpretation

             (4)  In this section:

adjustment day means:

                     (a)  20 March; or

                     (b)  20 September.

84AC   Percentage increase using the LCI method

             (1)  The percentage worked out in relation to a prescribed half-year using the LCI method is the percentage that represents A — B expressed as a percentage of B, where:

A is the LCI number in respect of the first quarter of the most recent half-year; and

B is the highest LCI number in respect of the first quarter of any half-year earlier than the most recent half-year;

worked out to 3 decimal places.

Rounding

             (2)  If a percentage worked out under subsection (1) would, if it were worked out to 4 decimal places, end in a number that is greater than 4, that percentage is to be increased by 0.001.

Publication of substituted living cost index numbers

             (3)  Subject to subsection (4), if at any time (whether before or after the commencement of this section) the Australian Statistician publishes a living cost index number for a quarter in substitution for a living cost index number previously published by the Australian Statistician for that quarter, the publication of the later living cost index number is to be disregarded for the purposes of this section.

Change to reference base

             (4)  If at any time (whether before or after the commencement of this section) the Australian Statistician changes the reference base for the Pensioner and Beneficiary Living Cost Index, regard is to be had, for the purposes of applying this section after the change takes place, only to living cost index numbers published in terms of the new reference base.

Interpretation

             (5)  In this section:

most recent half-year means the half-year immediately preceding the prescribed half-year.



 

Part 2—Amendments

Defence Force Retirement and Death Benefits Act 1973

7  Subsection 98A(1)

Insert:

LCI means Pensioner and Beneficiary Living Cost Index.

8  Subsection 98A(1)

Insert:

LCI number , in relation to a quarter, means the All Groups Pensioner and Beneficiary Living Cost Index number that is the weighted average of the 8 capital cities and is published by the Statistician in respect of that quarter.

9  Subsection 98A(1)

Insert:

VEA means Veterans’ Entitlements Act 1986 .

10  Subsection 98B(1)

After “with this section”, insert “and section 98BA”.

11  Subsection 98B(2)

Omit “The”, substitute “Subject to section 98BA, the”.

12  After section 98B

Insert:

98BA   Additional increase in certain pensions

             (1)  The section applies in relation to a pensioner who is 55 or older.

             (2)  In relation to a pensioner to whom this section applies, the prescribed percentage for a prescribed half-year, ascertained in accordance with subsection 98B(3), is taken to be increased in accordance with this section.

             (3)  If the prescribed percentage for a prescribed half-year is less than the percentage for the prescribed half-year worked out using the pension MBR method in section 98BB, the prescribed percentage is taken to be the percentage worked out using the pension MBR method.

             (4)  If, after applying subsection (3), the prescribed percentage for the prescribed half-year is less than the percentage for the prescribed half-year worked out using the LCI method in section 98BC, the prescribed percentage is taken to be the percentage worked out using the LCI method.

98BB   Percentage increase using the pension MBR method

             (1)  The percentage worked out in relation to a prescribed half-year using the pension MBR method is the percentage that represents A - B expressed as a percentage of B, where:

                   A is the single pension rate MBR amount (see item 1A of the table in section 59A of the VEA) applicable on the adjustment day prior to the first day of the prescribed half year; and

                   B is the single pension rate MBR amount (see item 1A of the table in section 59A of the VEA) applicable on the day before that adjustment day;

                   worked out to 3 decimal places.

Note:          Changes in the single pension rate MBR amount reflect changes in Male Total Average Weekly Earnings (MTAWE).

Rounding

             (2)  If a percentage worked out under subsection (1) would, if it were worked out to 4 decimal places, end in a number that is greater than 4, that percentage is to be increased by 0.001.

Publication of substituted amounts

             (3)  If at any time (whether before or after the commencement of this section), the Australian Statistician publishes an amount in substitution for a particular amount previously published by the Australian Statistician, the publication of the later amount is to be disregarded for the purposes of this section.

Interpretation

             (4)  In this section:

adjustment day means:

                     (a)  20 March; or

                     (b)  20 September.

98BC   Percentage increase using the LCI method

             (1)  The percentage worked out in relation to a prescribed half-year using the LCI method is the percentage that represents A - B expressed as a percentage of B, where:

                   A is the LCI number in respect of the first quarter of the most recent half-year; and

                   B is the highest LCI number in respect of the first quarter of any half-year earlier that the most recent half-year;

                   worked out to 3 decimal places.

Rounding

             (2)  If a percentage worked out under subsection (1) would, if it were worked out to 4 decimal places, end in a number that is greater than 4, that percentage is to be increased by 0.001.

Publication of substituted living cost index numbers

             (3)  Subject to subsection (4), if at any time (whether before or after the commencement of this section) the Australian Statistician publishes a living cost index number for a quarter in substitution for a living cost index number previously published by the Australian Statistician for that quarter, the publication of the later living cost index number is to be disregarded for the purposes of this section.

Change to reference base

             (4)  If at any time (whether before or after the commencement of this section) the Australian Statistician changes the reference base for the Pensioner and Beneficiary Living Cost Index, regard is to be had, for the purposes of applying this section after the change takes place, only to living cost index numbers published in terms of the new reference base.

Interpretation

             (5)  In this section:

most recent half-year means the half-year immediately preceding the prescribed half-year.

[military superannuation and pensions]



 

Veterans’ Affairs Legislation Amendment Bill 2012

 

 

 

Statement pursuant to the order of

the Senate of 26 June 2000

 

 

 

 



These amendments are framed as requests because they increase expenditure under standing appropriations in the Defence Forces Retirement Benefits Act 1948 and the Defence Force Retirement and Death Benefits Act 1973 . Amendment (2) will change the indexation methodology applied to certain military superannuation pensions so that the amount of these superannuation pensions is increased. Amendment (1) is a consequential amendment.

 

 

 

 

Statement by the Clerk of the Senate pursuant

to the order of the Senate of 26 June 2000

 

 

 

The Senate has long followed the practice that it should treat as requests amendments which would result in increased expenditure under a standing appropriation. On the basis that amendment (2) would result in increased expenditure under the standing appropriations in section 15 of the Defence Forces Retirement Benefits Act 1948 and section 125 of the Defence Force Retirement and Death Benefits Act 1973 , it is in accordance with the precedents of the Senate that these amendments be moved as requests.