Section 56ED — Veterans' Entitlements Act 1986: Suspension instead of automatic termination under section 56 or 56A

Application (1) This section applies if: (a) service pension, income support supplement or veteran payment ceases to be payable to a person because the rate of the person’s pension, supplement or payment is nil; and (b) the rate of the person’s pension, supplement or payment is nil because of the occurrence of an event or change of circumstances (the income-related event) that results in the person’s income reduced rate (see subsection (2)) being nil; and (c) the person is required to inform the Department or a specified officer of the income-related event within a specified period (the notification period) because of a notice given to the person under section 54; and (d) but for the person’s income reduced rate being nil, the pension, supplement or payment would have continued to be payable to the person; and (e) the person’s pension, supplement or payment is to be, or has been, cancelled under section 56 or 56A because the pension, supplement or payment ceased to be payable for the reason mentioned in paragraph (b); and (f) at the time of the cessation, the person’s ordinary income (as used to work out the person’s income reduced rate) includes income for remunerative work performed by the person in Australia as an employee in an employer/employee relationship. Note: When a person’s pension or supplement ceases to be payable in the circumstances set out in this subsection, the person will generally continue to be eligible for fringe benefits for up to 2 years (see subsection 53A(3)). (2) For the purposes of subsection (1), a person’s income reduced rate, in relation to a service pension, income support supplement or veteran payment, is the rate worked out in relation to that pension, supplement or payment at step 6 of method statement 1, step 6 of method statement 5 or step 6 of method statement 7, as the case may be, in Module A of the Rate Calculator. Suspension determination—event notified within notification period (3) If: (a) the person informs the Department or specified officer of the income-related event within the notification period; and (b) the person’s pension, supplement or payment has not yet been cancelled under section 56; the Commission may determine in writing that: (c) section 56 does not apply to cancel the person’s pension, supplement or payment; and (d) the person’s pension, supplement or payment is suspended. (4) If: (a) the person informs the Department or specified officer of the income-related event within the notification period; and (b) the person’s pension, supplement or payment has been cancelled under section 56; the Commission may determine in writing that: (c) the person is to be treated as if section 56 had not applied to cancel the person’s pension, supplement or payment; and (d) the person’s pension, supplement or payment is suspended. Suspension determination—event not notified within notification period (5) If: (a) the person does not inform the Department or specified officer of the income-related event within the notification period; and (b) the person’s pension, supplement or payment has been cancelled under section 56A; and (c) the Department subsequently becomes aware of the income-related event; the Commission may determine in writing that: (d) the person is to be treated as if section 56A had not applied to cancel the person’s pension, supplement or payment; and (e) the person’s pension, supplement or payment is suspended. Rules for suspension determinations (6) The Commission must not make a determination under subsection (3), (4) or (5) unless the Commission is satisfied that the person is residing in Australia. (7) A determination under subsection (3), (4) or (5) takes effect on the day on which, but for the determination, the person’s pension, supplement or payment would be cancelled under section 56 or 56A. Cancellation of pension, supplement or payment after 2 years (8) If: (a) the Commission makes a determination suspending a person’s pension, supplement or payment under subsection (3), (4) or (5); and (b) the determination continues in effect throughout the period of 2 years from its date of effect; then, at the end of the period: (c) the suspension ends; and (d) the pension, supplement or payment is cancelled. Note: The Commission may end a suspension if satisfied that a person’s pension, supplement or payment is payable to the person (see section 56F).