Explanatory Memorandum
(Circulated by authority of the Minister for Veterans' Affairs and Minister for Defence Personnel, the Honourable Matthew James Keogh MP)Schedule 6 - Disability Compensation Cessation Date
Veterans' Entitlements Act 1986
Items 1 and 2 amend section 121 and insert Exception - pension under Part II or IV at rate determined under Division 4 of Part II and new subsection 121(4AA) to set out that an amount of DCP (Disability Compensation Payment, formerly known as Disability Pension) is payable to the estate upon the death of the veteran pensioner.
DCP is paid fortnightly in arrears in respect of intervals known as pension periods. An instalment is payable in respect of the number of days in each fourteen-day pension period for which the person is eligible to receive payment.
Subsection 121(4) sets out that no amount is payable as an instalment of pension in relation to the pension period in which the person receiving a pension died, subject to the specified exceptions.
New subsection 121(4A) provides for an exception to subsection (4), that an instalment of a veteran's Part II or Part IV pension is payable to the estate upon the death of the DCP recipient. This amendment effectively extends the cessation date of the DCP to the date of the veteran's death, which aligns with other veterans' entitlements.