About this section
This section outlines the implications of failing to meet obligations, and how cases where the person is unable to meet their obligations are treated.
Last Amended: 27 February 2023
56A of the VEA - Automatic termination VEA - recipient not complying with Section 54 notification obligations
56B of the VEA - Automatic rate reduction VEA - recipient not complying with Section 54 notification obligations
If a service pensioner, veteran payment or income support supplement recipient does not meet their obligation to notify of a change in circumstances within 14 days (28 days if living overseas or receiving remote area allowance), a reduction, suspension or cancellation of pension takes effect from the day of the event that led to the reduction, suspension or cancellation. The pensioner will receive an overpayment for excess pension paid from the date of event.
More ? [3]
In the case of refusal or failure to comply as far as the person is capable, the penalty is 10 penalty units or imprisonment for 6 months, or both.
In the case of a person knowingly giving information that is false or misleading, the penalty is 20 penalty units or imprisonment for 12 months, or both.
If a person fails to meet their obligation to take reasonable action to obtain a foreign pension, their service pension, veteran payment or ISS may be cancelled or suspended.
More ? [4]
VEA? [10]
A person must comply with an obligations notice to the extent that they are able to comply. Inability to comply with obligations effectively results in the notification period specified in the notice not being applied when determining the date of effect. Consequently, the person would not be penalised for failing to comply with the notice.
The following would be reasonable excuses for not complying with an obligations notice:
An obligations notice under section 54 [10] VEA [11] applies to a trustee [11] of a person, as it would to the person. Being a trustee is not a reasonable excuse in itself for not complying with the notification provisions.
If the person is found to have reasonable excuse for not complying with the notice, the decision maker may determine the date of effect of the change in circumstances, based on an assessment of the facts of the case. This date of effect determination can be made under Division 15 of the VEA, which sets out the rules for situations other than responses to section 54 obligations where the pension is:
Section 56E [10] VEA - Cancellation or suspension determination VEA - general
Section 56EC [10] VEA - Cancellation determination where pension is not payable
Veterans' Entitlements Act 1986.
Trustee has two meanings depending on the context, (i) and (ii).
(i) a person who looks after someone else's affairs
According to section 202 of the VEA [22], a trustee is a person appointed by the Commission to administer the financial affairs of a pensioner who may be incapable of managing their own affairs for reasons such as:
These criteria include circumstances where a pensioner has a psychiatric disorder or a mental illness as a result of alcohol or drug addiction.
A trustee can be appointed, with or without the consent of the pensioner and once appointed, a trustee has full control of the pension payment.
(ii) a person responsible for administration of a trust
According to section 52ZO of the VEA [22], trustee has the same meaning as in the Income Tax Assessment Act 1997 [23].
Links
[1] https://clik.dva.gov.au/user/login?destination=node/16724%23comment-form
[2] https://clik.dva.gov.au/user/login?destination=node/16783%23comment-form
[3] https://clik.dva.gov.au/book/export/html/16724#tgt-cspol_part12_ftn21
[4] https://clik.dva.gov.au/book/export/html/16724#tgt-cspol_part12_ftn22
[5] https://clik.dva.gov.au/compensation-and-support-policy-library/part-12-compliance-and-obligations/126-overpayments
[6] https://clik.dva.gov.au/book/export/html/16724#ref-cspol_part12_ftn21
[7] https://clik.dva.gov.au/compensation-and-support-policy-library/part-3-income-support-eligibility/37-comparable-foreign-pension
[8] https://clik.dva.gov.au/book/export/html/16724#ref-cspol_part12_ftn22
[9] https://clik.dva.gov.au/user/login?destination=node/16741%23comment-form
[10] https://clik.dva.gov.au/service-eligibility-assistant-updates/all-determinations-order-date-signed-oldest-most-recent/determinations-under-vea
[11] https://clik.dva.gov.au/%23
[12] https://clik.dva.gov.au/book/export/html/16724#tgt-cspol_part12_ftn23
[13] https://clik.dva.gov.au/book/export/html/16724#tgt-cspol_part12_ftn24
[14] https://clik.dva.gov.au/book/export/html/16724#tgt-cspol_part12_ftn25
[15] https://clik.dva.gov.au/book/export/html/16724#tgt-cspol_part12_ftn26
[16] https://clik.dva.gov.au/book/export/html/16724#tgt-cspol_part12_ftn27
[17] https://clik.dva.gov.au/book/export/html/16724#ref-cspol_part12_ftn23
[18] https://clik.dva.gov.au/book/export/html/16724#ref-cspol_part12_ftn24
[19] https://clik.dva.gov.au/book/export/html/16724#ref-cspol_part12_ftn25
[20] https://clik.dva.gov.au/book/export/html/16724#ref-cspol_part12_ftn26
[21] https://clik.dva.gov.au/book/export/html/16724#ref-cspol_part12_ftn27
[22] http://clik.dva.gov.au/legislation-library
[23] http://www.comlaw.gov.au/comlaw/management.nsf/lookupindexpagesbyid/IP200401745?OpenDocument