Explanatory Memorandum
Circulation with the authority of the Parliamentary Secretary to the Prime Minister, the Hon Christian Porter MP)Schedule 7 - Veterans' Affairs
Outline
Schedule 7 will repeal redundant and spent provisions administered in the Department of Veterans' Affairs concerning benefits provided under schemes that have been closed for a number of years, and make amendments consequential to those repeals.
Notes on Clauses
Part 1 - Retirement assistance for farmers
Outline
Part 1 will repeal the Retirement Assistance for Farmers Scheme (the RAF Scheme) and the Retirement Assistance for Sugarcane Farmers (the RASF Scheme) from the Veterans' Entitlements Act 1986 (the VE Act).
The schemes enabled farmers who met certain conditions to transfer ownership of the family farm to an eligible descendant without the transfer having an adverse effect on access to income support by the farmer. The schemes were closed in 2001 and 2007 respectively and all claims have been determined.
Notes on Clauses
Veterans' Entitlements Act 1986
Item 1: Subsections 5MA(2A) and (2B)
Item 2: Sections 5P and 5PAA
Item 3: Subsection 5Q(1) (definition of Australia)
Item 4: Subsection 5Q(1) (definition of Australia)
Item 5: Subsection 5Q(1) (definition of eligible descendant)
Item 6: Subsection 5Q(1) (definition of eligible former partner of a qualifying farmer)
Item 7: Subsection 5Q(1) (definition of eligible former partner of a qualifying sugarcane farmer)
Item 8: Subsection 5Q(1) (definition of eligible interest)
Item 9: Subsection 5Q(1) (definition of farm)
Item 10: Subsection 5Q(1) (definition of farm enterprise)
Item 11: Subsection 5Q(1) (definition of proprietary company)
Item 12: Subsection 5Q(1) (definition of qualifying farmer)
Item 13: Subsection 5Q(1) (definition of qualifying interest)
Item 14: Subsection 5Q(1) (definition of qualifying sugarcane farmer)
Item 15: Subsection 5Q(1) (definition of RASF closing day)
Item 16: Subsection 5Q(1) (definition of RASF commencement day)
Item 17: Subsection 5Q(1) (definition of relevant farm asset)
Item 18: Subsection 5Q(1) (definition of relevant State land law)
Item 19: Subsection 5Q(1) (definition of relevant sugarcane farm asset)
Item 20: Subsection 5Q(1) (definition of sugarcane farm)
Item 21: Subsection 5Q(1) (definition of sugarcane farm enterprise)
Item 22: Subsection 5Q(1) (definition of total net value)
Item 23: Subsection 5Q(1) (definition of transfer)
Item 24: Subsection 46B(2) (note)
Item 25: Subsection 46C(1) (note)
Item 26: Subsection 46D(1) (note)
Item 27: Subsection 46E(1) (note)
Item 28: Subsection 46K(1) (note)
Items 1 to 28 will repeal the various definitions, provisions and notes which are applicable to, or refer to the repealed provisions of Divisions 8 and 8A of Part IIIB of the VE Act (repealed by Item 29 below).
Item 29: Divisions 8 and 8A of Part IIIB
Item 29 will repeal the redundant and spent Divisions 8 and 8A of Part IIIB of the VE Act, which provided for the retirement assistance for farmers and retirement assistance for sugarcane farmers.
The RAF Scheme and the RASF Scheme enabled farmers who met certain conditions to transfer ownership of the family farm to an eligible descendant without the transfer having an adverse effect on the farmer's access to income support. The schemes were closed in 2001 and 2007 respectively and all claims have been determined. As transfers under the schemes no longer have any impact, the measures are spent and can be repealed.
Item 30: Section 52E (note 1)
Item 31: Section 52E (note 2)
Item 32: Paragraph 52ZZZF(1)(h)
Items 30 to 32 will repeal the provisions and notes which are applicable to, or refer to the repealed provisions of Divisions 8 and 8A of Part IIIB of the VE Act.
Item 33: New subsection 52ZZZF(3A)
Item 33 is a consequential amendment to provide, for the purposes of paragraph 52ZZZF(1)(h), a definition of the term 'eligible descendant'. The definition, which was previously located in subsection 5Q(1), will be repealed by Item 8 of this Part.
Item 34: Saving provision
Item 34 is a savings provision applicable to certain persons who meet the conditions set out in either subsection 5MA(2A) or (2B) who would otherwise be regarded as having a 'granny flat interest'.
A 'granny flat interest' is defined under subsection 5MA(2) as a right or interest created when a person has paid for or acquired a life interest or right to accommodation for life, and the life interest or right to accommodation for life is in a private residence that is to be the person's principal home.
The savings provision ensures that despite the repeal by Item 1 of this Part of subsections 5MA(2A) and (2B), the exclusion granted under the repealed provisions to a person who transferred a farm interest under Divisions 8 or 8A of Part IIIB will continue to apply.
Part 2 - Repeal of spent saving and transitional provisions
Item 35: Clause 3 of Schedule 5
Item 35 will repeal redundant Clause 3 of Schedule 5 of the VE Act. Clause 3 is a savings provision that ensured that pensioners in receipt of rent assistance would not be disadvantaged by amendments to the calculation of rent assistance that were made in 1988. The affected pensioners continued to receive rent assistance under the repealed provisions until they were better off under the amended provisions. There are no longer any recipients of rent assistance who receive the payment under the savings provision.
Item 36: Subclause 5(15) of Schedule 5
Item 36 is a consequential amendment to repeal a provision which referred to Clause 3 of Schedule 5 of the VE Act and will be repealed by Item 35 of this Part.