B08/1995 VETERANS' AFFAIRS LEGISLATION AMENDMENT ACT (NO.2) 1994 INCOME SUPPORT MATTERS

DATE OF ISSUE:  27 JANUARY 1995

VETERANS' AFFAIRS LEGISLATION AMENDMENT ACT (NO.2) 1994 INCOME SUPPORT MATTERS

The purpose of this Departmental Instruction (DI) is to advise of the legislative amendments contained in the Veterans' Affairs Legislation Amendment Act (No.2) 1994 (VALA No.2, 1994) relating to income support matters.

Background

2.The VALA No.2, 1994 was introduced to Parliament as the Veterans' Affairs Legislation Amendment Bill (No. 2) 1994. The Act is a pure income support Act and contains three Budget legislative amendments introduced during the 1993 Budget sittings and a single non-budget item introduced in the 1994 autumn sittings. VALA No.2 was given Royal Assent on 8 December 1994

3.The items contained in VALA No.2 1994 and their relevant effective dates are as follows (note that the Budget 1993 legislative amendments are dealt with in other DI's as noted):

Amendment	Section of VALA No.2 1994	Date of Effect	DI
Increase qualifying age for age service pension for women (Budget item)	3-12	8 December 1994 (Royal Assent)	to be issued
Reintroduction of advance pharmaceutical allowance	13	1 January 1995	this DI
$2 increase of Dependant Child Add On (Budget item)	14	1 January 1995	B64/94

Reintroduction Of Advance Pharmaceutical Allowance

Background

4.As part of the changes to the Pharmaceutical Benefits Scheme which were introduced in November 1990, provision was made for the payment of Advance Pharmaceutical Allowance. This advance is up to seven fortnight's worth of a person's pharmaceutical allowance and is available for chronically ill pensioners with a high volume of prescription drug use.

5.The advance scheme was initially introduced for a twelve month period. VALA No.2 1991 extended the provision for a further two years until 1 January 1994 and also included a sunset clause (section 17 of VALA No.2 1991).

6.On 1 January 1994 that clause came into effect and repealed the relevant provisions for the payment of the advance in the VEA (see DI B02/94).

Amendment

7.The amendment to the VEA (inserted as Division 2, Subdivision A, sections 118F-M) provides for the reintroduction of Advance Pharmaceutical Allowance with effect from 1 January 1995, such that the sunset clause is no longer included and the allowance is now a permanent provision to the veteran community under the VEA.

DI B2/94 Superseded

8.B02/94 noted that, for reasons associated with difficulties in the passage through Parliament of the Veterans' Affairs Legislation Amendment Bill (No. 2) 1993, the above mentioned sunset clause was enacted and from 1 January 1994 Advance Pharmaceutical Allowance was no longer payable.

9.With the implementation of the amendments to the VEA noted at paragraph 7 above, DI B02/94 is now superseded and replaced by this DI.

Eligibility For Advance Pharmaceutical Allowance And Processing Of Cases

10.For detail regarding eligibility for Advance Pharmaceutical Allowance and processing of cases see DI's B03/91 and B02/92.

Gosp Amendments

11.Amendments to the relevant sections of the General Orders Service Pension will be included in the next available release of the General.

Enquiries

12.If you have any enquiries in relation to this Instruction, please contact Martin Dibb on telephone 06-289 6440.

DAVID MACKRELL

ASSISTANT SECRETARY

INCOME SUPPORT BRANCH