Policy

This section contains the guidelines for general and special exemptions from the deeming provisions.

Last Amended: 11 July 2022

Who is affected by compensation offsetting under the VEA?

Any person who is seeking or who receives a pension payable under Part II or Part IV of the Veterans' Entitlements Act 1986 (VEA) who:

Minister's power to exempt investments from deeming

VEA ?

Under the [glossary:VEA:373], the Minister for Veterans' Affairs is the only person with the power to exempt:

Last amended: 3 June 2013

Dependent child

A child of a person must first meet the definition of a dependent child which includes requirements such as age, student status, income and residency. Section 5F(1) of the VEA defines dependent child as having the same meaning as in the Social Security Act 1991.     

Examples of disposal dates

Disposal dates include the date on which:

• a legally binding transfer agreement is signed,
• a legally binding transfer is registered,
• a legally binding transfer document, that can be registered, is in another person's possession, or
• the date that another person takes possession.

Tax year rule (disposals on or after 1 July 2002)

Forms of investment that are classed as superannuation fund investments

Superannuation and roll-over investments include:

• approved deposit funds,
• retirement savings accounts, and
• investments in superannuation funds from which an income stream is not being paid.

Pensioners may:

Deemed life insurance products

The following life insurance products are regarded as managed investments and hence are subject to deeming provisions:

• unbundled insurance policies - universal life plans,
• insurance bonds,
• friendly society bonds, and
• savings plan equivalents.

Unbundled insurance policies - universal life plans

Unbundled insurance policies are also known as universal life plans. These policies separate:

Last amended: 22 December 2010

Last amended: 5 March 2013

Compensation affected pensions (CAP)

Eligibility for partner service pension after marital separation