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Veterans' Entitlements (Clarke Review) Bill 2004
Schedule 1 Indexation of above general rate disability pensions

   

Veterans’ Entitlements Act 1986

1  Subsection 22(4)

Omit “increased by 50% of the maximum rate set out in subsection (3)”, substitute “$433.65 per fortnight”.

2  Paragraph 98B(1)(a)

Omit “a rate that had been increased under”, substitute “the rate specified in”.

3  Subparagraph 99(2)(a)(i)

Omit “increased”, substitute “worked out”.

4  Subparagraph 113(2)(b)(i)

Omit “increased”, substitute “worked out”.

5  Subsection 198(1)

Insert:

above general rate means the following rates:

                     (a)  the rate under subsection 22(4);

                     (b)  the rate under subsection 23(4);

                     (c)  the rate under subsection 24(4).

6  Subsection 198(1) (paragraphs (b) and (c) of the definition of relevant rate )

Repeal the paragraphs.

7  At the end of subsection 198(4) (before the note)

Add:

Note 1:       For indexation of each above general rate, see subsection (5E).

8  Subsection 198(4) (note)

Omit “Note”, substitute “Note 2”.

9  After subsection 198(5D)

Insert:

           (5E)  This Act has effect as if, on the first day (the adjustment day ) of each relevant period, there were substituted, for each above general rate, the rate worked out as follows:

Method statement

Step 1 .   Work out the general rate on the adjustment day.

Step 2 .   Work out the general rate on the day before the adjustment day.

Step 3 .   Work out the above general rate on the day before the adjustment day.

Step 4 .   Subtract the rate at step 2 from the rate at step 3.

Step 5 .   Multiply the amount worked out at step 4 by the pension MBR factor specified in section 59LA (rounding the result up to the nearest $0.10).

Step 6 .   Add the rate worked out at step 1 to the amount worked out at step 5: the result is the above general rate on the adjustment day.

10  Subsection 198(10)

After “relevant rate”, insert “or an above general rate”.