DATE OF ISSUE: 25 JULY 1990
SOCIAL SECURITY AND VETERANS' AFFAIRS LEGISLATION AMENDMENT BILL 1990
Attached are amendments to the VEA and General Orders Service Pension resulting from an announcement by the Prime Minister on 4 December 1989 that payments made by the Austrian Government as compensation for Nazi persecution during World War II would not affect Australian social welfare income-tested pensions and benefits.
2.The amendment to the Legislation was effected by the Social Security and Veterans' Affairs legislation Amendment Act 1990 which received Royal Assent on 16 June 1990.
3.The date of effect of this amendment is 4 December 1989. It is not possible to identify automatically any affected pensioners. Therefore, care should be taken with future reviews of service pensioners who receive the relevant payment from the Austrian Government that the benefit of the exemption of this payment is applied with effect 4 December 1989.
PETER HAWKER
NATIONAL PROGRAM DIRECTOR,
BENEFITS
27 JULY 1990
AUSTRIAN RESTITUTION PAYMENTS
1. VEA Amendment
Sub-Section 35(1) has been amended as follows:
(a)omit "or" from item (x) of the definition of "income"' and
(b)insert after item (y) of that definition, the following word and paragraph -
"or
(z)an amount paid by way of compensation by the Republic of Austria under the laws of that Republic relating to compensation for victims of National Socialist persecution;"
2. Amendment to the General Orders Service Pension
Chapter 4 of the General Orders Service Pension has been amended to read:
"4.51 - AUSTRIAN RESTITUTION PAYMENTS
The Austrian Governments makes compensatory payments to people who suffered Nazi persecution, including loss of health, property, education and official status during World War II.
The Australian Government considers it is inappropriate to continue to regard these special payments as income.
Therefore, an amount paid by the way of compensation by the Republic of Austria or by a State of that Republic relating to the compensation of victims of National Socialist perse cution is to be exempt income under item (Z) of the defini tion of "income" in sub-section 35(1).
This amendment, which takes effect from 4 December 1989, is a logical extension of the earlier decision to disregard as income compensation payments for Nazi persecution made by the Federal Republic of Germany.
A similar amendment has been made to the definition of "income" in section 3 of the Social Security Act."