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Schedule 1—Exempting adjusted disability pension from the social security income test and removal of Defence Force Income Support Allowance

Schedule 1 Exempting adjusted disability pension from the social security income test and removal of Defence Force Income Support Allowance

   

A New Tax System (Family Assistance) Act 1999

1  Paragraph 7(haa) of Schedule 3

Repeal the paragraph.

2  Saving provision

Paragraph 7(haa) of Schedule 3 to the A New Tax System (Family Assistance) Act 1999 , as in force immediately before the commencement of this item, continues to apply on and after that commencement in relation to a payment of Defence Force Income Support Allowance under Part VIIAB of the Veterans’ Entitlements Act 1986 made before, on or after that commencement.

Child Support (Assessment) Act 1989

3  Subsection 5(1) (paragraph (g) of the definition of tax free pension or benefit )

Repeal the paragraph.

4  Saving provision

Paragraph (g) of the definition of tax free pension or benefit in subsection 5(1) of the Child Support (Assessment) Act 1989 , as in force immediately before the commencement of this item, continues to apply on and after that commencement in relation to a payment of Defence Force Income Support Allowance under Part VIIAB of the Veterans’ Entitlements Act 1986 made before, on or after that commencement.

Child Support (Registration and Collection) Act 1988

5  Subparagraph 72AC(1)(b)(iva)

Omit “ 1986 ; or”, substitute “ 1986 .”.

6  Subparagraph 72AC(1)(b)(v)

Repeal the subparagraph.

7  Saving provision

Section 72AC of the Child Support (Registration and Collection) Act 1988 , as in force immediately before the commencement of this item, continues to apply on and after that commencement in relation to the receipt of Defence Force Income Support Allowance under Part VIIAB of the Veterans’ Entitlements Act 1986 before, on or after that commencement.

Farm Household Support Act 2014

8  Section 95 (table item 1)

Repeal the item.

9  Saving provision

Item 1 of the table in section 95 of the Farm Household Support Act 2014 , as in force immediately before the commencement of this item, continues to apply on and after that commencement in relation to working out if a person is qualified for farm household allowance or if farm household allowance is payable to a person, or working out the rate of a person’s farm household allowance, in respect of days occurring before the commencement of this item.

Income Tax Assessment Act 1936

10  Subparagraph 160AAAA(2)(c)(ii)

Omit “, income support supplement or Defence Force Income Support Allowance (within the meaning of the Veterans’ Entitlements Act 1986 ) or a DFISA-like payment mentioned in Division 4 of Part VIIAB of that Act”, substitute “or income support supplement under the Veterans’ Entitlements Act 1986 ”.

11  Subparagraph 160AAAB(2)(c)(ii)

Omit “, income support supplement or Defence Force Income Support Allowance (within the meaning of the Veterans’ Entitlements Act 1986 ) or a DFISA-like payment mentioned in Division 4 of Part VIIAB of that Act”, substitute “or income support supplement under the Veterans’ Entitlements Act 1986 ”.

12  Paragraph 202EA(5)(ia)

Omit “ 1986 ;”, substitute “ 1986 .”.

13  Paragraph 202EA(5)(j)

Repeal the paragraph.

14  Saving provisions

(1)       Section 160AAAA of the Income Tax Assessment Act 1936 , as in force immediately before the commencement of this item, continues to apply on and after that commencement in relation to a year of income in which the assessable income of a taxpayer of the year of income includes an amount of Defence Force Income Support Allowance within the meaning of the Veterans’ Entitlements Act 1986 , or a DFISA-like payment mentioned in Division 4 of Part VIIAB of that Act, as in force immediately before that commencement.

(2)       Section 160AAAB of the Income Tax Assessment Act 1936 , as in force immediately before the commencement of this item, continues to apply on and after that commencement in relation to a year of income in which the assessable income of a beneficiary of the year of income includes an amount of Defence Force Income Support Allowance within the meaning of the Veterans’ Entitlements Act 1986 , or a DFISA-like payment mentioned in Division 4 of Part VIIAB of that Act, as in force immediately before that commencement.

(3)       Paragraph 202EA(5)(j) of the Income Tax Assessment Act 1936 , as in force immediately before the commencement of this item, continues to apply on and after that commencement in relation to a payment of Defence Force Income Support Allowance under Part VIIAB of the Veterans’ Entitlements Act 1986 made before, on or after that commencement.

Income Tax Assessment Act 1997

15  Section 11-15 (table item headed “social security or like payments”)

Omit:

DFISA bonus and DFISA bonus bereavement payment...........................................................................................

52-65

16  Paragraph 52-65(1)(a)

Omit “, pension bonus bereavement payment, DFISA bonus or DFISA bonus bereavement payment”, substitute “or pension bonus bereavement payment”.

17  Subsection 52-65(1A)

Repeal the subsection, substitute:

          (1A)  Payments of pension bonus and pension bonus bereavement payment under Part IIIAB of the Veterans’ Entitlements Act 1986 are exempt from income tax.

18  Section 52-65 (table item 5A.1)

Repeal the item.

19  Section 52-75 (table item 5A)

Repeal the item.

20  Saving provisions

(1)       Subsection 52-65(1A) of the Income Tax Assessment Act 1997 , as in force immediately before the commencement of this item, continues to apply on and after that commencement in relation to a payment of DFISA bonus or DFISA bonus bereavement payment under Part VIIAB of the Veterans’ Entitlements Act 1986 made before, on or after the commencement of this item.

(2)       Item 5A.1 of the table in section 52-65 of the Income Tax Assessment Act 1997 , as in force immediately before the commencement of this item, continues to apply on and after that commencement in relation to a payment of Defence Force Income Support Allowance made before, on or after the commencement of this item.

Social Security Act 1991

21  Before subparagraph 8(8)(y)(i)

Insert:

                            (ia)  pension under Part II or IV of the Veterans’ Entitlements Act (other than a pension that is payable under section 30 of that Act to a dependant of a deceased veteran); or

22  After subparagraph 8(8)(y)(i)

Insert:

                            (ib)  pension payable because of subsection 4(6) or (8B) of the Veterans’ Entitlements (Transitional Provisions and Consequential Amendments) Act 1986 (other than a pension payable in respect of a child); or

23  Subparagraph 8(8)(y)(ix)

Omit “or”.

24  Subparagraph 8(8)(y)(x)

Repeal the subparagraph.

25  After paragraph 8(8)(zo)

Insert:

                  (zoa)  a payment (either as a weekly amount or a lump sum) under section 68, 71, 75 or 80 of the Military Rehabilitation and Compensation Act (permanent impairment);

                 (zob)  a payment of a Special Rate Disability Pension under Part 6 of Chapter 4 of the Military Rehabilitation and Compensation Act;

26  Subsection 23(1) (definition of Defence Force Income Support Allowance or DFISA )

Repeal the definition.

27  Subsection 23(1D)

Repeal the subsection.

28  Paragraph 92C(e) (note)

Repeal the note.

29  Subparagraph 92C(f)(ii)

Omit “Act; or”, substitute “Act.”.

30  Subparagraph 92C(f)(iii)

Repeal the subparagraph.

31  Point 1071A-4 (paragraph (cb) of the definition of income )

Repeal the paragraph.

32  Subparagraph 1134(1)(e)(ia)

Repeal the subparagraph.

33  Subclause 146(3) of Schedule 1A

Repeal the subclause, substitute:

Provisional annual payment rate

             (3)  The person’s provisional annual payment rate is taken to be the amount worked out under subclause (4) if 1 / 364 of that amount is greater than 1 / 364 of the person’s provisional annual payment rate apart from this clause.

Note:          The provisional annual payment rate is an amount worked out under the method statement in point 1064-A1. Point 1064-A1 may be relevant of its own force or because of point 1065-A1 or section 796.

34  Subclause 146(6) of Schedule 1A

Repeal the subclause.

35  Application and saving provisions

(1)       Subparagraphs 8(8)(y)(ia) and (ib) and paragraphs 8(8)(zoa) and (zob) of the Social Security Act 1991 , as inserted by this Schedule, apply in relation to working out if a person is qualified for a social security payment or if a social security payment is payable to a person, or working out the rate of a person’s social security payment, in respect of days occurring on or after the commencement of this item.

(2)       Subparagraph 8(8)(y)(x) of the Social Security Act 1991 , as in force immediately before the commencement of this item, continues to apply on and after that commencement in relation to a payment covered by that subparagraph that is made before, on or after that commencement.

(3)       Subsection 23(1D) of the Social Security Act 1991 , as in force immediately before the commencement of this item, continues to apply on and after that commencement in relation to a day occurring before that commencement on which adjusted disability pension (within the meaning of section 118NA of the Veterans’ Entitlements Act 1986 as in force immediately before that commencement) was payable to a person or a person’s partner.

(4)       Subparagraph 92C(f)(iii) of the Social Security Act 1991 , as in force immediately before the commencement of this item, continues to apply on and after that commencement in relation to a payment of DFISA bonus under Part VIIAB of the Veterans’ Entitlements Act 1986 that is made before, on or after that commencement.

(5)       Paragraph (cb) of the definition of income in point 1071A-4 of the Social Security Act 1991 , as in force immediately before the commencement of this item, continues to apply on and after that commencement in relation to a payment covered by that paragraph that is made before, on or after that commencement.

(6)       Subparagraph 1134(1)(e)(ia) of the Social Security Act 1991 , as in force immediately before the commencement of this item, continues to apply on and after that commencement in relation to a day occurring before that commencement on which DFISA under Part VIIAB of the Veterans’ Entitlements Act 1986 was payable to a person.

(7)       Clause 146 of Schedule 1A to the Social Security Act 1991 , as in force immediately before the commencement of this item, continues to apply on and after that commencement in relation to working out a person’s provisional annual payment rate in relation to a day occurring before that commencement.

Social Security (Administration) Act 1999

36  Section 123TC (paragraph (ea) of the definition of category H welfare payment )

Omit “payment; or”, substitute “payment.”.

37  Section 123TC (paragraph (f) of the definition of category H welfare payment )

Repeal the paragraph.

38  Section 123TC (paragraph (da) of the definition of category R welfare payment )

Omit “payment; or”, substitute “payment.”.

39  Section 123TC (paragraph (e) of the definition of category R welfare payment )

Repeal the paragraph.

40  Subparagraph 123TK(1)(a)(i)

Omit “, income support supplement or Defence Force Income Support Allowance”, substitute “or income support supplement”.

41  Section 124D (subparagraph (c)(i) of the definition of schooling requirement payment )

Repeal the subparagraph.

42  Saving provisions

(1)       Despite the amendments of the Social Security (Administration) Act 1999 made by this Schedule, Part 3B of that Act, as in force immediately before the commencement of this item, continues to apply on and after that commencement in relation to a payment of Defence Force Income Support Allowance made before, on or after that commencement.

(2)       Despite the amendments of the Social Security (Administration) Act 1999 made by this Schedule, Part 3C of that Act, as in force immediately before the commencement of this item, continues to apply on and after that commencement in relation to working out if Defence Force Income Support Allowance is payable to a person in relation to a day occurring before that commencement.

Veterans’ Entitlements Act 1986

43  Paragraph 5H(8)(g)

Repeal the paragraph.

44  Subsection 5L(3C)

Omit “, pension bonus bereavement payment, DFISA bonus or DFISA bonus bereavement payment”, substitute “or pension bonus bereavement payment”.

45  Subsection 5Q(1) (definition of Defence Force Income Support Allowance or DFISA )

Repeal the definition.

46  Subsection 5Q(1) (definition of DFISA bonus )

Repeal the definition.

47  Subsection 5Q(1) (definition of DFISA bonus bereavement payment )

Repeal the definition.

48  Paragraph 45TC(1)(e) (note)

Repeal the note.

49  Subparagraph 45TC(1)(f)(ia)

Repeal the subparagraph.

50  Paragraph 45TC(2)(e) (note)

Repeal the note.

51  Subparagraph 45TC(2)(f)(ia)

Repeal the subparagraph.

52  Paragraph 45TC(3)(e) (note)

Repeal the note.

53  Subparagraph 45TC(3)(f)(ia)

Repeal the subparagraph.

54  Section 53J (note)

Repeal the note.

55  Subsection 53M(7)

Repeal the subsection.

56  Paragraph 53NA(1)(a)

Omit “, DFISA”.

57  Part VIIAB

Repeal the Part.

58  Paragraphs 121(5D)(a) and (b)

Repeal the paragraphs, substitute:

                     (a)  is not to exceed the total of the amount of pension (calculated in accordance with this section) payable to the person for days that:

                              (i)  are days on which the pension was payable to the person; and

                             (ii)  are included in the first 7 days of the pension period; and

59  Subsection 121(5G)

Omit “sections 122B, 122D and 122E”, substitute “section 122B”.

60  Subsection 121(6A)

Repeal the subsection.

61  Sections 122D and 122E

Repeal the sections.

62  Paragraph 199(e)

Repeal the paragraph.

63  Application and transitional provisions

(1)       Paragraph 5H(8)(g) of the Veterans’ Entitlements Act 1986 , as in force immediately before the commencement of this item, continues to apply on and after that commencement in relation to a payment covered by that paragraph that is made before, on or after that commencement.

(2)       Subsection 5L(3C) of the Veterans’ Entitlements Act 1986 , as in force immediately before the commencement of this item, continues to apply on and after that commencement in relation to a payment of DFISA bonus or DFISA bonus bereavement payment that is made before, on or after that commencement.

(3)       Subparagraphs 45TC(1)(f)(ia), (2)(f)(ia) and (3)(f)(ia) of the Veterans’ Entitlements Act 1986 , as in force immediately before the commencement of this item, continue to apply on and after that commencement in relation to a payment of DFISA bonus that is made before, on or after that commencement.

(4)       Subsection 53M(7) of the Veterans’ Entitlements Act 1986 , as in force immediately before the commencement of this item, continues to apply on and after that commencement in relation to DFISA that was payable before that commencement.

(5)       Section 53NA of the Veterans’ Entitlements Act 1986 , as in force immediately before the commencement of this item, continues to apply on and after that commencement in relation to DFISA paid before, on or after that commencement.

(6)       The Veterans’ Entitlements Act 1986 , as in force immediately before the commencement of this item, continues to apply on and after that commencement in relation to the following:

                     (a)  Defence Force Income Support Allowance that was payable to a person in relation to a day occurring before that commencement;

                     (b)  Defence Force Income Support Allowance that is paid to a person before, on or after that commencement in relation to a day occurring before that commencement;

                     (c)  adjusted disability pension (within the meaning of section 118NA of that Act as in force immediately before that commencement) payable in relation to a day occurring before that commencement;

                     (d)  working out whether DFISA bonus is payable to a person, where adjusted disability pension (within the meaning of section 118NA of that Act as in force immediately before that commencement) was payable in relation to a day occurring before that commencement;

                     (e)  DFISA bonus that is paid to a person before, on or after that commencement;

                      (f)  working out qualification for, and the amount of, a DFISA bonus bereavement payment and making such a payment, where adjusted disability pension (within the meaning of section 118NA of that Act as in force immediately before that commencement) was payable in relation to a day occurring before that commencement.

(7)       The Veterans’ Entitlements Act 1986 and regulations made under Division 4 of Part VIIAB of that Act, as in force immediately before the commencement of this item, continue to apply on and after that commencement in relation to a payment under those regulations that was payable to a person, or a non-financial benefit under those regulations that was to be provided to a person, in relation to a day occurring before that commencement.

(8)       Paragraph 199(e) of the Veterans’ Entitlements Act 1986 , as in force immediately before the commencement of this item, continues to apply on and after that commencement in relation to a payment or benefit covered by that paragraph that is made before, on or after that commencement.