1Short title
This Act may be cited as the Australian Defence Force Cover Act 2015.
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Bill homepage (APH)This Act may be cited as the Australian Defence Force Cover Act 2015.
Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information | ||
|---|---|---|
Column 1 | Column 2 | Column 3 |
Provisions | Commencement | Date/Details |
1. Sections 1 and 2 and anything in this Act not elsewhere covered by this table | The day this Act receives the Royal Assent. | 10 September 2015 |
2. Sections 3 to 67 | The later of: (a) the start of 1 July 2016; and (b) the commencement of the Australian Defence Force Superannuation Act 2015. However, the provisions do not commence at all if the event mentioned in paragraph (b) does not occur. | 1 July 2016 (paragraph (a) applies) |
This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.
Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
This Act provides for benefits for medical discharge or death of a member of the ADF who is under 60 and either is an ADF Super member or would be such a member if he or she had not chosen another superannuation fund.
A benefit for medical discharge is payable only if CSC has classified the invalid as having a significant degree of incapacity for civil employment. The benefit is generally a pension, initially payable to the invalid. If the invalid dies while receiving a pension, leaving either a surviving spouse or eligible children, a pension is also payable to the spouse or, if there is no spouse, those children.
The benefit payable for death is generally a lump sum. Depending on the circumstances, it is payable to a surviving spouse, eligible children or in accordance with the member’s will or intestacy arrangements.
If more than one person would otherwise be entitled to a benefit relating to a former member of the ADF, CSC may decide which of those persons is to receive a benefit and how much of the benefit each should receive.
Pensions are payable fortnightly, and increased by indexation.
Payment of benefits may be stopped for failing to provide information relevant to determining entitlement to, or amount of, the benefits.
In this Act:
ADF means the Australian Defence Force.
ADF Super has the same meaning as in the Australian Defence Force Superannuation Act 2015.
basic annual rate of invalidity pension for an invalid on a day (the key day) is the rate worked out using the formula:
If the basic annual rate of invalidity pension is relevant to the rate of another pension payable under Division 3 or 4 of Part 2, Division 5 of that Part may affect the incapacity factor and therefore the basic annual rate.
benefit means a pension or other payment under this Act.
Board has the same meaning as in the Governance of Australian Government Superannuation Schemes Act 2011.
continuous full‑time Reservist means a member of the Reserves who is rendering a period of continuous full‑time service.
covered ADF member means a person:
who is under 60; and
who is a member of the Permanent Forces or a continuous full‑time Reservist; and
who either:
is an ADF Super member (as defined in the Australian Defence Force Superannuation Act 2015); or
would have been an ADF Super member except that a fund other than ADF Super has become the person’s chosen fund under section 32F of the Superannuation Guarantee (Administration) Act 1992 for contributions by the Department.
CSC (short for Commonwealth Superannuation Corporation) has the same meaning as in the Governance of Australian Government Superannuation Schemes Act 2011.
current value: the current value on a day (the key day) of the rate of a person’s salary or pension on the day the person was medically discharged or died is:
if the key day is before the first 1 January or 1 July after the day of the discharge or death—that rate; or
if the key day is on or after the first 1 January or 1 July after the day of the discharge or death—that rate, as affected by indexation under section 43 on each 1 January and 1 July that is:
after the day of the discharge or death; and
before or on the key day.
death benefit lump sum for the death of a covered ADF member means the amount worked out using the formula:
Defence Force Case Assessment Panel means the Defence Force Case Assessment Panel established under section 100 of the Defence Force Retirement and Death Benefits Act 1973.
eligible child has the meaning given by section 5.
eligible children pension percentage has the meaning given by section 6.
incapacity factor for an invalid who is classified under Subdivision B of Division 2 of Part 2 as class A or class B means:
if the invalid is classified as class A—2.2%; or
if the invalid is classified as class B—1.1%.
index number for a March quarter or September quarter means the All Groups Consumer Price Index number that is the weighted average of the 8 capital cities and is published by the Australian Statistician in relation to that quarter.
invalid means a person who ceased to be a covered ADF member because he or she was medically discharged before he or she turned 60.
invalidity pension means pension payable to an invalid under Subdivision A of Division 2 of Part 2.
invalid’s spouse pension means pension payable under Subdivision A of Division 3 of Part 2 to the surviving spouse of an invalid who has died.
March quarter means the 3 months starting on 1 January.
marital or couple relationship has the meaning given by section 7.
medically discharged: a covered ADF member is medically discharged when his or her service in the ADF is terminated because he or she is medically unfit to perform his or her duties because of a physical or mental impairment.
Under section 31A, a person is taken in certain circumstances to have been medically discharged even though he or she ceased to be a covered ADF member for a different reason.
member spouse means a member spouse within the meaning of Part VIIIB or VIIIC of the Family Law Act 1975.
non‑member spouse means a non‑member spouse within the meaning of Part VIIIB or VIIIC of the Family Law Act 1975.
partner: a person is the partner of another person if the 2 persons have a relationship as a couple (whether the persons are the same sex or different sexes).
Permanent Forces has the same meaning as in the Defence Act 1903.
personal information has the same meaning as in the Privacy Act 1988.
prospective service to age 60 has the meaning given by section 8.
Reserves has the same meaning as in the Defence Act 1903.
rules means rules made under section 67.
salary of a covered ADF member has the meaning given by section 9.
September quarter means the 3 months starting on 1 July.
splitting agreement means:
a superannuation agreement (within the meaning of Part VIIIB or VIIIC of the Family Law Act 1975); or
a flag lifting agreement (within the meaning of Part VIIIB or VIIIC of the Family Law Act 1975) that provides for a payment split (within the meaning of that Part).
splitting order means a splitting order within the meaning of Part VIIIB or VIIIC of the Family Law Act 1975.
spouse pension child supplement percentage has the meaning given by section 10.
superannuation interest means a superannuation interest within the meaning of Part VIIIB or VIIIC of the Family Law Act 1975.
surviving spouse of an invalid, or covered ADF member, who dies has the meaning given by section 11.
welfare includes education and financial advantage.
A person is an eligible child of an invalid, or covered ADF member, who dies if the person is under subsection (2) a child of the invalid or member and either:
the person is under 18; or
the person:
is at least 18 but under 25; and
is receiving full‑time education at a school, college or university or other full‑time education approved by CSC for the purposes of this subparagraph.
For the purposes of subsection (1), the person is a child of the invalid or member if:
the person is, for the purposes of the Family Law Act 1975, a child of the invalid or member; or
the person is an ex‑nuptial child of the invalid or member; or
the person was a step‑child, an adopted child, a foster child or a ward of the invalid or member when the invalid or member died; or
the person was wholly or substantially dependent upon the invalid or member when the invalid or member died, and either:
is, for the purposes of the Family Law Act 1975, a child of a surviving spouse of the invalid or member; or
is a child or ex‑nuptial child of a surviving spouse of the invalid or member.
The paragraphs of this subsection do not limit one another.
This section defines one of the factors determining the rate of a single pension that:
is payable because of the death of either or both of:
an invalid or covered ADF member; and
a surviving spouse of the invalid or member; and
is payable for a day (the key day) to or for one or more eligible children of the invalid or member.
The eligible children pension percentage is the percentage worked out using the following table:
Eligible children pension percentage | ||
|---|---|---|
Item | Number of the eligible children to or for whom the pension is payable for the key day | Percentage |
1 | 1 | 67 |
2 | 2 | 117 |
3 | 3 | 133 |
4 | at least 4 | 150 |
A person had a marital or couple relationship with another person at a particular time if the person ordinarily lived with that other person as that other person’s husband, wife, spouse or partner on a permanent and bona fide domestic basis at that time.
For the purpose of subsection (1), a person is to be regarded as ordinarily living with another person as that other person’s husband, wife, spouse or partner on a permanent and bona fide domestic basis at a particular time only if:
the person had been living with that other person as that other person’s husband, wife, spouse or partner for a continuous period of at least 3 years up to that time; or
the person had been living with that other person as that other person’s husband, wife, spouse or partner for a continuous period of less than 3 years up to that time and CSC, having regard to any relevant evidence, is of the opinion that the person ordinarily lived with that other person as that other person’s husband, wife, spouse or partner on a permanent and bona fide domestic basis at that time;
whether or not the person was legally married to that other person.
For the purposes of this Act, a marital or couple relationship is taken to have begun at the beginning of the continuous period mentioned in paragraph (2)(a) or (b).
For the purpose of subsection (2), relevant evidence includes, but is not limited to, evidence establishing any of the following:
the person was wholly or substantially dependent on that other person at the time;
the persons were legally married to each other at the time;
the persons’ relationship was registered under a law of a State or Territory prescribed for the purposes of section 2E of the Acts Interpretation Act 1901, as a kind of relationship prescribed for the purposes of that section;
the persons had a child who was:
born of the relationship between the persons; or
adopted by the persons during the period of the relationship; or
a child of both of the persons for the purposes of the Family Law Act 1975;
the persons jointly owned a home which was their usual residence.
For the purposes of this section, a person is taken to be living with another person if CSC is satisfied that the person would have been living with that other person except for a period of:
temporary absence; or
absence because of special circumstances (for example, absence because of the person’s illness or infirmity or a posting of the person).
The prospective service to age 60 of a covered ADF member who is medically discharged, or dies, under 60 is the difference between:
60; and
the number of whole years (ignoring any parts of years) of the member’s age when he or she is discharged or dies.
A covered ADF member who is medically discharged under 60 is an invalid.
The salary of a covered ADF member on a day is the sum of the following determined under Part IIIA of the Defence Act 1903:
the annual rate of salary applying to the member on that day (on the assumption that the member is on full pay);
for a member to whom service allowance is payable—the annual rate of the service allowance for service by the member on that day;
for a member to whom higher duties allowance is payable—the annual rate of the higher duties allowance for service by the member on that day;
for a member to whom trainee allowance is payable—the annual rate of the trainee allowance for service by the member on that day.
To avoid doubt, salary does not include any other allowance.
However, if a covered ADF member is a trainee of the Permanent Forces on a day and his or her salary worked out under subsection (1) is less than the maximum annual rate of salary (ignoring allowances) for a Private Group 1 or equivalent rank in the member’s arm of the ADF, the member’s salary on that day is that maximum annual rate.
Despite subsection (1), the salary of a covered ADF member holding one of the following offices on a day is the annual rate of salary on that day of a holder of the office determined under subsection 7(3) of the Remuneration Tribunal Act 1973:
Chief of the Defence Force;
Vice Chief of the Defence Force;
Chief of Navy;
Chief of Army;
Chief of Air Force;
Director of Military Prosecutions;
an office prescribed by the rules.
This section defines the factor determining the increase in a pension payable to a surviving spouse of an invalid or covered ADF member on account of the eligible children of the invalid or member.
The spouse pension child supplement percentage is the percentage worked out using the following table:
Spouse pension child supplement percentage | ||
|---|---|---|
Item | Column 1 Number of eligible children of the invalid or member | Column 2 Percentage |
1 | 1 | 17 |
2 | 2 | 33 |
3 | at least 3 | 50 |
A person is a surviving spouse of an invalid, or covered ADF member, who dies if the person had a marital or couple relationship with the invalid or member at the time of the death.
However, a person is also a surviving spouse of an invalid, or covered ADF member, who dies if:
the person had previously had a marital or couple relationship with the invalid or member; and
at the time of the death, the person did not have a marital or couple relationship with the invalid or member but was legally married to the invalid or member; and
in CSC’s opinion, the person was wholly or substantially dependent upon the invalid or member at the time of the death.
If there is more than one surviving spouse of the same invalid, or covered ADF member, who dies and each of them would be entitled to a benefit because of that death if he or she were the only surviving spouse of the invalid or member, CSC determines which of the surviving spouses the benefit is paid to and in what amount. Under section 39, CSC may determine:
that the benefit is divided between them in proportions determined by CSC; or
that the whole benefit is payable to only one of them, and no benefit is payable to the rest.
This Act binds the Crown in right of the Commonwealth. However, it does not bind the Crown in right of a State, of the Australian Capital Territory or of the Northern Territory.
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