VEA? [2]
This chapter contains information on the purpose and requirements of obligations imposed under s54 [2] of the VEA, and the penalties a person may incur for not complying with their obligations.
Recipient Obligations
Chapter 12.2 Information Gathering Powers [3]
Chapter 12.3 Data Matching [4]
Chapter 11.1 Income Support Effective Dates and Pension Periods [6]
The VEA [9] provides the Secretary with a wide range of information gathering powers to enable decision-makers to satisfy themselves as to whether a person is or was eligible for a payment, a particular rate of payment or some other benefit, such as treatment. This chapter primarily deals with one of those information gathering powers - obligations imposed under s54 of the VEA, which require a person to notify the Department of an event or change in circumstances that:
Obligations imposed under s54 [2] of the VEA serve two main purposes:
Obligations are imposed by way of an obligation notice. An advice letter is most commonly used. An obligations notice must adhere to certain requirements in order to be legally binding on the recipient. Similarly, the recipient must respond to an obligations notice in a specified manner.
More ? [12]
An obligation notice specifies the time frame within which the recipient must notify of changes in their circumstances. This specified time frame is called the notification period. There are different notification periods according to the type of pension, payment or benefit the person receives.
More ? [13]
There are penalties for failing to meet obligations, however a person is only expected to comply with an obligation notice to the extent that they are able to comply. There are specific situations that render a person unable to comply. No penalty is applied in these cases.
More ? [14]
VEA ? [15]
Where an agent has been authorised to receive payments on behalf of a person, both the person and agent are legally obliged to notify the department of changes to the person's circumstances. A person's obligations under sections 54, 54A, 54AA and 127 of the VEA also apply to their agent.
Obligations do not apply to the agent where agency arrangements exist with a group payee.
Veterans' Entitlements Act 1986.
VEA ? [28]
There are two reasons for the Department to be kept advised of a person's circumstances:
Recipient responses to requests for information are important because the question of whether a person has or has not met his or her obligations under the VEA is basic to most decisions to reduce or cancel pension or payment from a date earlier than the date of determination. The end result of such a decision may be a recoverable overpayment.
More ? [30]
The Commission [9] has the power to vary, cancel or suspend a person's pension or payment. If an obligation has been imposed on a person under the VEA [9], and events occur that a result in a reduction in the person's pension or payment, or a loss of eligibility for the pension or paymnet, the legislation requires certain actions to be taken automatically. Whether the person has or has not met his or her obligations under s54 [2] of the VEA determines the date that this action is taken, that is, the date of effect for:
Section 56 [2] VEA - Automatic termination or rate reduction VEA - recipient complying with Section 54 obligations
Section 56A [2] VEA - Automatic termination VEA - recipient not complying with Section 54 notification obligations
Section 56B [2] VEA - Automatic rate reduction VEA - recipient not complying with Section 54 obligations
According to Section 179 [37]of the VEA [37], the Commission is a body corporate under the name of Repatriation Commission.
Veterans' Entitlements Act 1986.
The Secretary has the power to place an obligation on a person in relation to service pension [9], veteran payment and ISS [9] matters. An obligation can require a person to inform the Department of an event or change in circumstances that has occurred or is likely to occur.
More ? [39]
VEA? [2]
The Secretary can also place an obligation on a service pensioner, veteran payemnt or ISS recipient that requires them to take action to obtain a comparable foreign pension or payment if they may be entitled to one.
More ? [40]
VEA? [2]
The Secretary is able to delegate his powers to an officer or employee of the APS. This delegation must be in writing. A person who sends a notice to a person must have the Secretary's delegation to do so, and the notice must be signed by that person as Delegate of the Secretary.
More ? [41]
VEA ? [42]
A s54 obligations notice can only be imposed on:
Section 54(1) [2] VEA - re a person who has lodged a claim for, or is in receipt of, SP or ISS, or a person receiving benefits under Division 12
Section 54(2) [2] VEA - re a person receiving SP or ISS on behalf of a pensioner
A service pension is an income support payment broadly equivalent to the social security age and disability support pensions. It may be paid once a veteran or partner has reached the nominated age or is incapacitated for work.
ISS is an income support payment that may be paid to eligible war widows and widowers under the VEA and persons receiving wholly dependent partners' compensation under the MRCA, and who satisfy the means tests. It is an indexed rate, increased twice-yearly in March and September in line with changes to the cost of living and/or average wages. Income Support Supplement (ISS) legislation commenced on 20 March 1995. It is a payment created to replace the ceiling rate income support age, carer, wife and disability support pensions, paid to war widows/widowers by Centrelink.
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 [37], 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 [37], trustee has the same meaning as in the Income Tax Assessment Act 1997 [50].
About this section
This section outlines what is required to make a s54 obligations notice a legally binding document, and the time frames for response to a s54 notice, depending on the pension, payment or benefit the person receives.
VEA ? [53]
An obligation to provide information can only be imposed on a person if this information might affect:
VEA ? [55]
Obligations are imposed by way of issuing an obligation notice. This is usually in the form of an advice letter. In order to be legally binding, an obligation notice must meet the following requirements:
VEA ? [57]
The Secretary is able to send documents with an obligation notice. The obligation notice can refer to the attached document and oblige the person to tell the Department or a specified Departmental officer, if any of the events listed in the document occur or are likely to occur. The document may also contain the necessary information about the time in which the person is obliged to notify the Department or officer of an event. The legislation provides that this method of imposing an obligation has full legal weight and is just as binding on a person as if all the matters listed in the document were contained in the notice itself.
The legal requirements for an obligation notice are satisfied where a fact sheet (containing a specific obligation notice) is attached to a covering letter. The covering letter should explain the purpose served by including the fact sheet, being formal advice of the person's notification obligations. A reference to the section 54 authority should also be included.
The 'You and Your Pension' booklet outlines income support recipient's obligations. The booklet was issued to all income support pensioners in July 1998, and has since been issued to all pensioners who are granted an income support pension. The booklet is a legally binding obligation notice, effective from the date of original issue, or the date of a new grant.
The following are acceptable ways (provided they meet the relevant notification period) in which a person can advise the Department of an event or change of circumstances:
Provision of benefits
Chapter 5.8 Fringe Benefits [59]
Chapter 7.1 Treatment at Departmental Expense [60]
Last Amended: 10 August 2004
The following table illustrates the notification periods that apply for a response to section 54 obligations, depending on the person's situation.
If the person is... | and they notify of... | then the notification period is... |
in receipt of a service pension [9], veteran payment or ISS [9] | a change in circumstances that may affect their pension, payment or benefits | within 14 days VEA S54(5) |
is living overseas and in receipt of a service pension, veteran payment or ISS | a change in circumstances that may affect their pension, payment or benefits | within 28 days VEA S54(5A) |
in receipt of Remote Area Allowance [9] | a change in circumstances that may affect their pension, payment or benefits | within 28 days VEA S54(5A) |
a member of a couple [9] both in receipt of service pension or ISS | the death of their partner | within the 98 day bereavement period VEA S54(5AA) |
The notification period begins on the day after:
The notification period ends on close of business on the 14th, 28th or 98th day (depending on which notification period applies to the person) after the event or change in circumstances occurs.
If the information is received up to close of business by conventional mail, telephone contact or personal visit, or up to 12 midnight by fax, on that day then the person has complied.
A person is given a notice under VEA s54 VEA that says he or she must advise within 14 days of an increase in earnings. The person's earnings increase on 2 April. The person has until close of business on 16 April to fulfil his or her obligations without incurring any penalty. That is, the 14 days begins from, but not including, 2 April
What if the last day of the notification period is a weekend/public holiday?
According to ss36(2) of the Acts Interpretations Act 1901, if the last day of the notification period is not a working day - say, a Saturday, Sunday or public holiday, the last day of the notification period is taken to be the next working day after that day. This rule only applies if the holiday is in the region where the DVA processing office is located (state office or agent office). That is, it has to be a holiday where the notification is received, rather than where the person resides.
A person who is in receipt of service pension or ISS and who is an NDIS participant [9], or who is acting on behalf of an NDIS participant [9], are not required to notify the receipt of (NDIS) amounts [9], how NDIS amounts are spent, or about accounts holding NDIS amounts.
What if the last day of the notification period is a weekend/public holiday?
According to ss36(2) of the Acts Interpretations Act 1901, if the last day of the notification period is not a working day - say, a Saturday, Sunday or public holiday, the last day of the notification period is taken to be the next working day after that day. This rule only applies if the holiday is in the region where the DVA processing office is located (state office or agent office). That is, it has to be a holiday where the notification is received, rather than where the person resides.
A service pension is an income support payment broadly equivalent to the social security age and disability support pensions. It may be paid once a veteran or partner has reached the nominated age or is incapacitated for work.
ISS is an income support payment that may be paid to eligible war widows and widowers under the VEA and persons receiving wholly dependent partners' compensation under the MRCA, and who satisfy the means tests. It is an indexed rate, increased twice-yearly in March and September in line with changes to the cost of living and/or average wages. Income Support Supplement (ISS) legislation commenced on 20 March 1995. It is a payment created to replace the ceiling rate income support age, carer, wife and disability support pensions, paid to war widows/widowers by Centrelink.
Remote area allowance is a supplementary payment added to the rate of income support pension where the pensioner's usual place of residence is situated in a remote area, and where the pensioner is physically present in the remote area.
According to Section 5E(2) [67]of the VEA [67]a person is a member of a couple, if they are:
The term “partnered” is also commonly used.
Has the same meaning as in the National Disability Insurance Scheme Act 2013, and means a person with disability who meets the access requirements to become a participant in the NDIS.
Has the same meaning as in the National Disability Insurance Scheme Act 2013, and means a person with disability who meets the access requirements to become a participant in the NDIS.
Has the same meaning as in the National Disability Insurance Scheme Act 2013, and means an amount paid under the NDIS in respect of reasonable and necessary supports funded under a NDIS participant’s plan.
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 ? [70]
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 ? [71]
VEA? [2]
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 [2] VEA [9] applies to a trustee [9] 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 [2] VEA - Cancellation or suspension determination VEA - general
Section 56EC [2] 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 [37], 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 [37], trustee has the same meaning as in the Income Tax Assessment Act 1997 [50].
Links
[1] https://clik.dva.gov.au/user/login?destination=node/16746%23comment-form
[2] https://clik.dva.gov.au/service-eligibility-assistant-updates/all-determinations-order-date-signed-oldest-most-recent/determinations-under-vea
[3] https://clik.dva.gov.au/compensation-and-support-policy-library/part-12-compliance-and-obligations/122-information-gathering-powers
[4] https://clik.dva.gov.au/compensation-and-support-policy-library/part-12-compliance-and-obligations/123-data-matching
[5] https://clik.dva.gov.au/compensation-and-support-policy-library/part-12-compliance-and-obligations/124-exchange-information-other-departments
[6] https://clik.dva.gov.au/compensation-and-support-policy-library/part-11-administration-payments/111-income-support-effective-dates-and-pension-periods
[7] https://clik.dva.gov.au/compensation-and-support-policy-library/part-11-administration-payments/119-powers-administration-and-delegation
[8] https://clik.dva.gov.au/user/login?destination=node/16739%23comment-form
[9] https://clik.dva.gov.au/%23
[10] https://clik.dva.gov.au/book/export/html/16746#tgt-cspol_part12_ftn1
[11] https://clik.dva.gov.au/book/export/html/16746#tgt-cspol_part12_ftn2
[12] https://clik.dva.gov.au/book/export/html/16746#tgt-cspol_part12_ftn3
[13] https://clik.dva.gov.au/book/export/html/16746#tgt-cspol_part12_ftn4
[14] https://clik.dva.gov.au/book/export/html/16746#tgt-cspol_part12_ftn5
[15] https://clik.dva.gov.au/book/export/html/16746#tgt-cspol_part12_ftn6
[16] https://clik.dva.gov.au/compensation-and-support-policy-library/part-12-compliance-and-obligations/121-recipient-obligations/1213-power-impose-obligations
[17] https://clik.dva.gov.au/book/export/html/16746#ref-cspol_part12_ftn1
[18] https://clik.dva.gov.au/compensation-and-support-policy-library/part-12-compliance-and-obligations/121-recipient-obligations/1212-importance-obligations
[19] https://clik.dva.gov.au/book/export/html/16746#ref-cspol_part12_ftn2
[20] https://clik.dva.gov.au/compensation-and-support-policy-library/part-12-compliance-and-obligations/121-recipient-obligations/1214-requirements-imposing-obligations/legal-requirements-section-54-obligations
[21] https://clik.dva.gov.au/book/export/html/16746#ref-cspol_part12_ftn3
[22] https://clik.dva.gov.au/compensation-and-support-policy-library/part-12-compliance-and-obligations/121-recipient-obligations/1214-requirements-imposing-obligations/time-frame-response-notification-period
[23] https://clik.dva.gov.au/book/export/html/16746#ref-cspol_part12_ftn4
[24] https://clik.dva.gov.au/compensation-and-support-policy-library/part-12-compliance-and-obligations/121-recipient-obligations/1215-failure-meet-obligations
[25] https://clik.dva.gov.au/book/export/html/16746#ref-cspol_part12_ftn5
[26] https://clik.dva.gov.au/book/export/html/16746#ref-cspol_part12_ftn6
[27] https://clik.dva.gov.au/user/login?destination=node/16753%23comment-form
[28] https://clik.dva.gov.au/book/export/html/16746#tgt-cspol_part12_ftn7
[29] https://clik.dva.gov.au/book/export/html/16746#tgt-cspol_part12_ftn8
[30] https://clik.dva.gov.au/book/export/html/16746#tgt-cspol_part12_ftn9
[31] https://clik.dva.gov.au/book/export/html/16746#tgt-cspol_part12_ftn10
[32] https://clik.dva.gov.au/book/export/html/16746#ref-cspol_part12_ftn7
[33] https://clik.dva.gov.au/book/export/html/16746#ref-cspol_part12_ftn8
[34] https://clik.dva.gov.au/compensation-and-support-policy-library/part-12-compliance-and-obligations/126-overpayments
[35] https://clik.dva.gov.au/book/export/html/16746#ref-cspol_part12_ftn9
[36] https://clik.dva.gov.au/book/export/html/16746#ref-cspol_part12_ftn10
[37] http://clik.dva.gov.au/legislation-library
[38] https://clik.dva.gov.au/user/login?destination=node/16742%23comment-form
[39] https://clik.dva.gov.au/book/export/html/16746#tgt-cspol_part12_ftn11
[40] https://clik.dva.gov.au/book/export/html/16746#tgt-cspol_part12_ftn12
[41] https://clik.dva.gov.au/book/export/html/16746#tgt-cspol_part12_ftn13
[42] https://clik.dva.gov.au/book/export/html/16746#tgt-cspol_part12_ftn14
[43] clikpopup://DEF/Trustee
[44] https://clik.dva.gov.au/book/export/html/16746#ref-cspol_part12_ftn11
[45] https://clik.dva.gov.au/compensation-and-support-policy-library/part-3-income-support-eligibility/37-comparable-foreign-pension
[46] https://clik.dva.gov.au/book/export/html/16746#ref-cspol_part12_ftn12
[47] https://clik.dva.gov.au/compensation-and-support-policy-library/part-11-administration-payments/119-powers-administration-and-delegation/1193-delegations
[48] https://clik.dva.gov.au/book/export/html/16746#ref-cspol_part12_ftn13
[49] https://clik.dva.gov.au/book/export/html/16746#ref-cspol_part12_ftn14
[50] http://www.comlaw.gov.au/comlaw/management.nsf/lookupindexpagesbyid/IP200401745?OpenDocument
[51] https://clik.dva.gov.au/user/login?destination=node/16733%23comment-form
[52] https://clik.dva.gov.au/user/login?destination=node/16730%23comment-form
[53] https://clik.dva.gov.au/book/export/html/16746#tgt-cspol_part12_ftn15
[54] https://clik.dva.gov.au/book/export/html/16746#tgt-cspol_part12_ftn16
[55] https://clik.dva.gov.au/book/export/html/16746#tgt-cspol_part12_ftn17
[56] https://clik.dva.gov.au/book/export/html/16746#tgt-cspol_part12_ftn18
[57] https://clik.dva.gov.au/book/export/html/16746#tgt-cspol_part12_ftn19
[58] https://clik.dva.gov.au/book/export/html/16746#ref-cspol_part12_ftn15
[59] https://clik.dva.gov.au/compensation-and-support-policy-library/part-5-income-support-allowances-and-benefits/58-fringe-benefits
[60] https://clik.dva.gov.au/compensation-and-support-policy-library/part-7-common-allowances-and-benefits/71-treatment-departmental-expense
[61] https://clik.dva.gov.au/book/export/html/16746#ref-cspol_part12_ftn16
[62] https://clik.dva.gov.au/book/export/html/16746#ref-cspol_part12_ftn17
[63] https://clik.dva.gov.au/compensation-and-support-policy-library/part-11-administration-payments/1110-advices
[64] https://clik.dva.gov.au/book/export/html/16746#ref-cspol_part12_ftn18
[65] https://clik.dva.gov.au/book/export/html/16746#ref-cspol_part12_ftn19
[66] https://clik.dva.gov.au/user/login?destination=node/16721%23comment-form
[67] http://www.comlaw.gov.au/Series/C2004A03268
[68] https://clik.dva.gov.au/user/login?destination=node/16724%23comment-form
[69] https://clik.dva.gov.au/user/login?destination=node/16783%23comment-form
[70] https://clik.dva.gov.au/book/export/html/16746#tgt-cspol_part12_ftn21
[71] https://clik.dva.gov.au/book/export/html/16746#tgt-cspol_part12_ftn22
[72] https://clik.dva.gov.au/book/export/html/16746#ref-cspol_part12_ftn21
[73] https://clik.dva.gov.au/book/export/html/16746#ref-cspol_part12_ftn22
[74] https://clik.dva.gov.au/user/login?destination=node/16741%23comment-form
[75] https://clik.dva.gov.au/book/export/html/16746#tgt-cspol_part12_ftn23
[76] https://clik.dva.gov.au/book/export/html/16746#tgt-cspol_part12_ftn24
[77] https://clik.dva.gov.au/book/export/html/16746#tgt-cspol_part12_ftn25
[78] https://clik.dva.gov.au/book/export/html/16746#tgt-cspol_part12_ftn26
[79] https://clik.dva.gov.au/book/export/html/16746#tgt-cspol_part12_ftn27
[80] https://clik.dva.gov.au/book/export/html/16746#ref-cspol_part12_ftn23
[81] https://clik.dva.gov.au/book/export/html/16746#ref-cspol_part12_ftn24
[82] https://clik.dva.gov.au/book/export/html/16746#ref-cspol_part12_ftn25
[83] https://clik.dva.gov.au/book/export/html/16746#ref-cspol_part12_ftn26
[84] https://clik.dva.gov.au/book/export/html/16746#ref-cspol_part12_ftn27