Determination No by dandanhuanghuang

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									Determination No. R25 of 2004




                        Repatriation Commission
                     Veterans’ Entitlements Act 1986
      Veterans’ Entitlements Income (Exempt Lump Sum—income
        received after end of market-linked income stream term)
                              Determination

Instrument No. R25/2004

I, JEANETTE RICKETTS, Branch Head, Income Support Branch, Department of
Veterans’ Affairs, and delegate of the Repatriation Commission, determine, under
paragraph 5H(12)(c) of the Veterans’ Entitlements Act 1986 (VEA), that an amount
specified in Part 2 of the Schedule as an exempt lump sum is an exempt lump sum for
the purposes of the definition of “ordinary income” in subsection 5H(1) of the VEA.

Dated this 23rd day of December 2004.




………………………………….
(JEANETTE RICKETTS)



                                  SCHEDULE

Part 1: Preliminary and Interpretation

1.1    NAME OF DETERMINATION

This determination is the Veterans’ Entitlements Income (Exempt Lump Sum—income
 received after end of market-linked income stream term) Determination No. R25 of
                                        2004.
Veterans’ Entitlements Income Exempt Lump Sum Determination No. 25 of 2004          2




1.2     COMMENCEMENT

        This Determination commences on the day on which it is signed by the
        Commission delegate.

1.3     DEFINITIONS

        In this Determination:

        “market-linked income stream” means an asset-test exempt income stream
        which meets the requirements of subsection 5JBA(1) of the VEA.
        “service pension” has the meaning given in subsection 5Q(1) of the VEA.
        “income support supplement” means the payment called the income support
        supplement payable under Part IIIA of the VEA.

Part 2:         Amount determined to be an exempt lump sum
2.1     AMOUNT OR CLASS OF AMOUNTS

2.1.1 Paragraph 5H(12)(c) of the VEA provides that the Commission may determine
      that an amount or class of amounts received by a person, is an exempt lump
      sum.

2.1.2 If:
      (a) a person is a beneficiary of a market-linked income stream; and
      (b) after the payment of the final year’s annual payment from that market-
          linked income stream there is a residual balance in the relevant account;
          and
      (c) clause 3 of Schedule 6 of the Superannuation Industry (Supervision)
          Regulations 1994 requires that the residual balance in the account of the
          market-linked income stream is to be paid to the beneficiary within 28 days
          of the end of the market-linked income stream’s term; and
      (d) the person is in receipt of service pension or income support supplement;

        then any amount paid by the market-linked income stream to the person, in
        accordance with paragraph (c) above, is an exempt lump sum.

2.2     APPLICATION—EXEMPT LUMP SUMS

2.2.1 An amount referred to in paragraph 2.1.2(c) received by a person referred to in
      section 2.1.2 is an exempt lump sum for the purposes of paragraph 5H(12)(c)
      of the VEA from the date that the amount was received.




Initials ……..                                                      Date …./…./….

								
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