Commonwealth Consolidated Acts

VETERANS' ENTITLEMENTS ACT 1986 - SECT 51

             (1)  The object of this section is to spread capitalised maintenance income so that it is taken into account over the whole of the period in respect of which it is received.

             (2)  If a person receives capitalised maintenance income, the maintenance income of the person that is attributable to the capitalised maintenance income during any period (in this subsection called the relevant period ) in the capitalisation period is the amount calculated in accordance with the formula:

Capitalisation period--court order or registered or approved maintenance agreement

             (3)  If:

                     (a)  the capitalised maintenance income is received under or as a result of:

                              (i)  the order of a court; or

                            (ia)  a financial agreement, or Part VIIIAB financial agreement, within the meaning of the Family Law Act 1975 ; or

                             (ii)  a maintenance agreement registered in, or approved by, a court under the Family Law Act 1975 or the law of a State or Territory; and

                     (b)  the order or agreement specified the period in relation to which the capitalised maintenance income was to be provided; and

                     (c)  the length of the period could be ascertained with reasonable certainty when the order was made or the agreement was so registered or approved;

the capitalisation period is, subject to subsection (6), the period specified in the order or agreement.

Capitalisation period--maintained child under 18

             (4)  If:

                     (a)  the capitalised maintenance income relates to the maintenance of a maintained child of the person; and

                     (b)  the child has not turned 18 on the day on which the income is received; and

                     (c)  subsection (3) does not apply to the capitalised maintenance income;

the capitalisation period is, subject to subsection (6), the period that starts on the day on which the income is received and ends on the day immediately before the day on which the child turns 18.

Note:          for maintained child see subsection 5K(1).

Capitalisation period--partner under 65

             (5)  If:

                     (a)  the capitalised maintenance income relates to the maintenance of the person by the person's partner or former partner; and

                     (b)  the person has not turned 65 on the day on which the income is received; and

                     (c)  subsection (3) does not apply to the capitalised maintenance income;

the capitalisation period is, subject to subsection (6), the period that starts on the day on which the income is received and ends on the day immediately before the day on which the person turns 65.

Capitalisation period--other cases

             (6)  If:

                     (a)  the Commission considers:

                              (i)  in a case falling within subsection (3) where the period referred to in that subsection was specified in an order of a court that was made by consent or in a maintenance agreement--that the period is not appropriate in the circumstances of the case; or

                             (ii)  in a case falling within subsection (4) or (5)--that the period referred to in that subsection is not appropriate in the circumstances of the case; or

                     (b)  no capitalisation period is applicable in relation to the capitalised maintenance income under subsection (3), (4) or (5);

the capitalisation period is such period as the Commission considers appropriate in the circumstances of the case.