DATE OF ISSUE: 11 January 1994
REPEAL OF ADVANCE PHARMACEUTICAL ALLOWANCE
Introduction
The purpose of this Instruction is to advise that Advance Pharmaceutical Allowance cannot be paid from 1 January 1994.
Background
2.As part of the changes to the Pharmaceutical Benefits Scheme, which was introduced in November 1990, provision was made for the payment of Advance Pharmaceutical Allowance. Currently a sunset clause is applicable to the advance payment scheme in that the Veterans' Affairs Legislation Amendment Act (No. 2) 1991 repeals Division 2 of Part VIIA of the Veterans' Entitlements Act 1986 (VEA), effective 1 January 1994.
AMENDMENT
3.Clause 10 of the Veterans' Affairs Legislation Amendment Bill (No. 2) 1993 (the Bill) amends the date contained in section 17 of the Veterans' Affairs Legislation Amendment Act 1991 from 1 January 1994 to 1 January 1995, to allow Advance Pharmaceutical Allowance to continue for a further 12 months.
4.As a result of the House of Representatives and the Senate passing different versions of the Bill and therefore, failing to agree to the other House's amendments, the House of Representatives has deferred consideration of this Bill until February 1994. Consequently, section 17 of the Veterans' Affairs Legislation Amendment Act 1991 will be enacted and Division 2 of Part VIIA of the VEA will be repealed on 1 January 1994. Therefore from 1 January 1994, Advance Pharmaceutical Allowance can no-longer be paid.
5.Please note that an amendment to Social Security legislation was passed, extending the sunset clause to 1 January 1995. Therefore, Advance Pharmaceutical Allowance can continue to be paid to social security pensioners.
6.If you have any enquiries in relation to this matter please call John Fely on 06 289 6440.
KAY GRIMSLEY
A/G NATIONAL PROGRAM DIRECTOR
BENEFITS