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Carbon Pollution Reduction Scheme Amendment (Household Assistance) Bill 2009 [No. 2]

Schedule 3 Assistance under the Veterans’ Entitlements Act

Part 1 Main amendment

Veterans’ Entitlements Act 1986

1  Before section 199

Insert:

Division 5 Increases related to Carbon Pollution Reduction Scheme

Subdivision A Introduction

198P   Objects of this Division

             (1)  The main object of this Division is to increase certain amounts that affect the rate at which payments are made under this Act to certain recipients of payments of the following kinds, on account of the Carbon Pollution Reduction Scheme’s estimated cost of living increase:

                     (a)  disability pensions;

                     (b)  pensions payable to war widow/war widower-pensioners;

                     (c)  service pensions;

                     (d)  payments of kinds specified under section 198W.

             (2)  Another object of this Division is to adjust indexation of those amounts after they are increased, to reflect the inclusion in the increases of elements brought forward from the Carbon Pollution Reduction Scheme’s estimated cost of living increase.

Subdivision B Increases in disability pension

198Q   What this Subdivision applies to

                   This Subdivision applies to each amount (the base amount ) provided for in an item of the table in subsection 27(1) (about rate of disability pension for war-caused injury or disease).

Note:          Amounts provided for in the table are amounts as altered from time to time under sections 198 and 198D (CPI indexation).

198R   Increase of 1% on 1 July 2011

                   This Act has effect as if, on 1 July 2011, each base amount were replaced by an amount worked out by:

                     (a)  calculating the amount (the provisional replacement amount ) that is 1% greater than the base amount; and

                     (b)  if the provisional replacement amount is not a multiple of 10 cents, rounding up or down to the nearest multiple of 10 cents (rounding up if the provisional replacement amount is a multiple of 5 cents).

Note:          The 1% increase includes the Carbon Pollution Reduction Scheme’s estimated cost of living increase of 0.4% for the 2011-2012 financial year, which has been brought forward. The change to the indexation factor on or after 20 March 2012 under section 198T takes account of this brought forward increase.

198S   Increase of 1.8% on 1 July 2012

                   This Act has effect as if, on 1 July 2012, each base amount were replaced by an amount worked out by:

                     (a)  calculating the amount (the provisional replacement amount ) that is 1.8% greater than the base amount; and

                     (b)  if the provisional replacement amount is not a multiple of 10 cents, rounding up or down to the nearest multiple of 10 cents (rounding up if the provisional replacement amount is a multiple of 5 cents).

Note:          The 1.8% increase includes the Carbon Pollution Reduction Scheme’s estimated cost of living increase of 0.8% for the 2012-2013 financial year, which has also been brought forward. The change to the indexation factor on or after 20 March 2013 under section 198U takes account of this second brought forward increase.

Subdivision C Adjustment of indexation of disability pension

198T   Special rules for indexation on or after 20 March 2012

             (1)  A factor worked out under subsection 198(5) or 198D(5), for indexation on a day that is on or after 20 March 2012 of an amount to which Subdivision B applies, is to be reduced by the brought forward indexation amount, but not below 1.

             (2)  In this section:

brought forward indexation amount , in relation to a day, means 0.004 less any reduction made under this section for a previous day.

Note:          Once the brought forward indexation amount becomes zero, there will be no further reduction of the factor.

Example:    Assume that the factor worked out under subsection 198D(5) on 20 March 2012 is 1.003. The brought forward indexation amount in relation to 20 March 2012 is 0.004 (as there has been no previous reduction). That factor is reduced to 1 on 20 March 2012.

                   Further assume that on 20 September 2012 the factor worked out under subsection 198D(5) is 1.010. The brought forward indexation amount in relation to 20 September 2012 is 0.001. That factor is reduced to 1.009 on 20 September 2012.

                   The brought forward indexation amount in relation to later indexation days is now zero so there is no further reduction of the factor.

198U   Special rules for indexation on or after 20 March 2013

             (1)  A factor worked out under subsection 198(5) or 198D(5), for indexation on a day that is on or after 20 March 2013 of an amount to which Subdivision B applies, is to be reduced by the brought forward indexation amount, but not below 1.

             (2)  In this section:

brought forward indexation amount , in relation to a day, means 0.008 less any reduction made under this section for a previous day.

Note:          Once the brought forward indexation amount becomes zero, there will be no further reduction of the factor.

Example:    Assume that the factor worked out under subsection 198D(5) on 20 March 2013 is 1.005. The brought forward indexation amount in relation to 20 March 2013 is 0.008 (as there has been no previous reduction). That factor is reduced to 1 on 20 March 2013.

                   Further assume that on 20 September 2013 the factor worked out under subsection 198D(5) is 1.010. The brought forward indexation amount in relation to 20 September 2013 is 0.003. That factor is reduced to 1.007 on 20 September 2013.

                   The brought forward indexation amount in relation to later indexation days is now zero so there is no further reduction of the factor.

Subdivision D Other provision for increases and adjustments of indexation

198V   Minister may provide for increases and adjustments

             (1)  The Minister may, by legislative instrument, provide for:

                     (a)  increasing on 1 July 2011 and 1 July 2012 the following amounts on account of the Carbon Pollution Reduction Scheme’s estimated cost of living increase:

                              (i)  amounts that affect rates at which disability pension is paid, except amounts to which Subdivision B applies;

                             (ii)  amounts that affect rates at which pensions payable to war widow/war widower-pensioners or payments of kinds specified under section 198W are paid for a day to war widow/war widower-pensioners;

                            (iii)  amounts that affect rates at which service pensions or payments of kinds specified under section 198W are paid for a day to recipients of service pensions; and

                     (b)  changing the indexation under this Act, after either or both of 1 July 2011 and 1 July 2012, of amounts that affect rates at which any of the payments (including pensions) described in subparagraph (1)(a)(i), (ii) or (iii) are paid to recipients of payments increased as a result of that subparagraph, to reflect any inclusion in the increases of elements brought forward from the Carbon Pollution Reduction Scheme’s estimated cost of living increase.

             (2)  The instrument has effect according to its terms, despite any other provision of this Act.

             (3)  To avoid doubt, the instrument may provide for increasing an amount described in paragraph (1)(a) by an amount or percentage worked out by reference to either or both of the following:

                     (a)  the amount to be increased;

                     (b)  another amount affecting the rate at which the same or a different kind of payment is made.

             (4)  To avoid doubt, the instrument may provide for changing the indexation of an amount that affects the rate of a payment (the affected payment ) described in subparagraph (1)(a)(i), (ii) or (iii) (including a pension), whether or not that amount, or an amount affecting that payment, was increased as a result of that subparagraph, as long as the recipient of the affected payment received a payment that was increased as a result of that subparagraph.

             (5)  Subsections (3) and (4) do not limit subsection (1).

Subdivision E Extending scope of this Division

198W   Other kinds of payments affected by this Division

             (1)  The Minister may, by legislative instrument, specify kinds of payments under this Act in relation to which this Division applies.

Note:          For specification by class, see subsection 13(3) of the Legislative Instruments Act 2003 .

             (2)  Kinds of payments may be specified by reference to either or both of the following:

                     (a)  the persons to whom the payments are to be made;

                     (b)  the circumstances in which the payments are to be made.

             (3)  Subsection (2) does not limit subsection (1).

Division 6 Appropriation



 

Part 2 Related amendments

Division 1—Amendments whose commencement depends on another Act

Veterans’ Entitlements Act 1986

2  Before section 197A

Insert:

Division 1 Saving and transitional provisions

3  Before section 197

Insert:

Division 2 Limits on scope of this Act

4  Before section 198

Insert:

Division 3 Indexation and some one-off increases

5  At the end of subsection 198(5)

Add:

Note:          On and after 20 March 2013, the factor may be affected by section 198U.

6  At the end of subsection 198D(5)

Add:

Note:          On and after 20 March 2013, the factor may be affected by section 198U.

7  Before section 200

Insert:

Division 7 Provisions about the Commission

8  Before section 203

Insert:

Division 8 International arrangements

9  Before section 205

Insert:

Division 9 Overpayments and debts

10  Before section 208

Insert:

Division 10 Offences and evidence

11  Before section 212

Insert:

Division 11 Administration

12  Before section 216

Insert:

Division 12 Regulations

Division 2—Amendment whose commencement depends on 2 other Acts

Veterans’ Entitlements Act 1986

13  Before section 198N

Insert:

Division 4 Termination of certain pension