Repatriation Commission
Veterans’ Entitlements Act 1986
Veterans’ Entitlements Income (Exempt Lump Sum —Australian Health Management Group and Medibank Private Merger Payment) Determination
 
Instrument No. R9/2009
I, RIC MOORE, A/g Senior Executive Band 1 (Compensation and Income Support Policy Group), Department of Veterans’ Affairs, and delegate of the Repatriation Commission, determine, under paragraph 5H(12)(c) of the Veterans’ Entitlements Act 1986 (VEA), that an amount specified in Part 2 of the Schedule as an exempt lump sum is an exempt lump sum for the purposes of the definition of “ordinary income” in subsection 5H(1) of the VEA.
 
 
Dated    14         January 2009
 
 
 
Ric Moore…………………………..…………….……………………………….
RIC MOORE
SCHEDULE
Part 1: Preliminary and Interpretation
1.                Explanation
1.1             Paragraph 5H(12)(c) of the VEA enables the Repatriation Commission to determine that an amount, or one of a class of amounts, is an exempt lump sum.  The consequence of the determination is that the amount, or class of amounts, is not ordinary income for the purposes of the VEA.
1.2    Name of Determination
1.2.1       This determination is the Veterans’ Entitlements Income (Exempt Lump Sum – Australian Health Management Group and Medibank Private Merger Payment) Determination No. R9 of 2009.
1.3           Commencement of Determination
1.3.1       This Determination commences on the 15 January 2009.
1.4           Definitions
1.4.1       In this Determination:

“income support payment” means a service pension or income support supplement.
“service pension” has the meaning given to service pension in subsection 5Q(1) of the VEA.
“income support supplement” means the payment called the income support supplement payable under Part IIIA of the VEA.
“cash payment”  means a one-off cash payment made to participating Australian Health Management Group members (participating member) in consideration of the cancellation of their Australian Health Management Group membership. These memberships are being cancelled as a result of the merger of the Australian Health Management Group with Medibank Private. The amount of cash payment that each participating member receives will depend upon the type and style of policy held by the member and their duration of membership.
“participating member” means a person who was an Australian Health Management Group member on 13 July 2008 and remained a member on 6 December 2008 or who was a Prescribed Member as at 6 December 2008. A Prescribed Member is a person who was not a member as at 13 July 2008, but who the Australian Health Management Group Board has determined should be permitted to become a Member after this date because their application for membership was pending or the Review Committee determines that they should be a member.
 
Part 2:   Exempt Lump Sum
2.                Exempt Lump Sum — Australian Health Management Group and Medibank Private Merger Payment
 
2.1             Amount or class of amounts
(1)   Paragraph 5H(12)(c) of the VEA enables the Repatriation Commission to determine that an amount, or one of a class of amounts, is an exempt lump sum.
(2)   If:
(a)              a person or a person’s partner has received a one-off cash payment as a result of the merger of the Australian Health Management Group with Medibank Private; and
(b)              the person is in receipt of, or has claimed, an income support payment;

then any amount received by the person or the person’s partner, as a cash payment is an exempt lump sum.

2.2             Application – Exempt Lump Sums
I determine that an amount, or class of amounts, paid to a person as mentioned in paragraph 2.1(2)(a) is an exempt lump sum for the purposes of paragraph 5H(12)(c) of the VEA from the date that the payment is made.