Risk of unintended harm to veterans
Coalition speakers said the bill should be checked closely to make sure the new means-testing rules do not leave any veteran worse off in practice, despite being framed as a corrective measure.
Social Services and Other Legislation Amendment (Military Invalidity Payments Means Testing)
Current status
This bill became law on May 30th, 2024.
Policy area
Defence & foreign affairs
What does this bill do?
Australia now treats affected military invalidity pensions under a dedicated means-test category, so these payments have a clear legal basis in social security and veterans payments rules.
Why was it introduced?
The Douglas court decision exposed that some military invalidity pensions no longer fit the legal categories used for social security and veterans means tests. This bill creates a specific assessment rule for those pensions, keeps them exempt from the assets test, and preserves past assessments.
Broader context
Before this bill, social security and veterans payment rules had been treating certain military invalidity pensions under existing means-test categories while keeping them exempt from the assets test. The Full Federal CourtThe court that made the Douglas decision and triggered the need for new legislation.'s 2020 Douglas decisionThe 2020 court case that upset the old legal basis for how these military invalidity payments were treated, prompting this bill. disrupted that legal footing, so the government introduced legislation in February 2024 to create a specific category and preserve past assessments, and Parliament passed it in May 2024 before Royal AssentThe final step that turned the bill into law after Parliament passed it. later that month turned the new rules into law.
Key criticism
The main criticism was not of the bill’s goal but of the risk that its technical means-testing fix could accidentally leave some veterans worse off or create knock-on effects for family law and other welfare entitlements. Those concerns were raised conditionally by Coalition speakers who still supported the bill and wanted Senate scrutiny and clearer assurances before treating the issue as fully settled.
Who supported it?
Hon Amanda Rishworth MP introduced this bill. It passed on the voices.
Introduced in House 15 Feb 2024
Passed House 28 Feb 2024
Passed Senate 16 May 2024
Became law 30 May 2024
Did it become law?
Yes
Became law 30 May 2024
Final passage
Passed without a counted vote
Members called out ‘aye’ or ‘no’ — no individual votes were recorded.
Passage speed
105 days
From introduction to the latest recorded parliamentary step
Meaning
What does this bill do?
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Australia now treats affected military invalidity pensions under a dedicated means-test category, so these payments have a clear legal basis in social security and veterans payments rules.
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People getting a military invalidity pension will have that pension fully ignored under the Social Security ActThe main welfare law used here to decide how these payments affect a person's social security rate. asset testPart of the means test that looks at what assets a person owns to decide whether their payment should be reduced..
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Veterans payments law now also fully ignores military invalidity pensions under the asset testPart of the means test that looks at what assets a person owns to decide whether their payment should be reduced. for eligible people.
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Social security income testing for these pensions now counts the yearly payment after subtracting an allowed tax-free-style amount, instead of using the usual asset-test-exempt income stream formula.
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The new rules apply to future days even for older pensions, and past income assessments for these payments stay legally valid.
Show source excerpts
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This Bill provides a clear legal foundation for the assessment of the affected payments within the means test by inserting a new income stream classification and assessment regime for them under the Social Security Act and the Veterans’ Entitlements Act. The new provisions are designed to produce the same assessment of income as the historical assessments of the affected invalidity payments, and to ensure the invalidity payments continue to be treated as exempt from the assets test. These arrangements are intended to ensure veterans and/or their partners receive a level of support that is consistent with the intent of legislation and policy before the unexpected findings of the Douglas decision.
Social Services and Other Legislation Amendment (Military Invalidity Payments Means Testing) explanatory memorandum -
An income stream provided to a person is an asset‑test exempt income stream for the purposes of this Act if the income stream is a military invalidity pension income stream.
Social Services and Other Legislation Amendment (Military Invalidity Payments Means Testing) as-passed bill text -
An income stream provided to a person is an asset‑test exempt income stream for the purposes of this Act if the income stream is a military invalidity pension income stream.
Social Services and Other Legislation Amendment (Military Invalidity Payments Means Testing) as-passed bill text -
Item 12 adds a new substantive means-test framework for military invalidity pension income streams into the Social Security Act. The new section 1099AAA prescribes that, to calculate the amount of ordinary income a person is taken to receive from a military invalidity pension income stream each year, the “special reduction amount” is subtracted from the “annual payment”.
Social Services and Other Legislation Amendment (Military Invalidity Payments Means Testing) explanatory memorandum -
Item 36 prescribes that the amendments to the Social Security Act made by Part 1 of Schedule 1 to the Bill apply in relation to working out the ordinary income of a person in respect of days occurring on or after commencement, whether the income stream began to be provided to the person before, on or after commencement. This ensures there is a clear legal foundation for means test assessments for the affected payments going forward, even if the person’s income stream may have begun before commencement.
Social Services and Other Legislation Amendment (Military Invalidity Payments Means Testing) explanatory memorandum
Context
Broader context for this bill
Before this bill, social security and veterans payment rules had been treating certain military invalidity pensions under existing means-test categories while keeping them exempt from the assets test. The Full Federal CourtThe court that made the Douglas decision and triggered the need for new legislation.'s 2020 Douglas decisionThe 2020 court case that upset the old legal basis for how these military invalidity payments were treated, prompting this bill. disrupted that legal footing, so the government introduced legislation in February 2024 to create a specific category and preserve past assessments, and Parliament passed it in May 2024 before Royal AssentThe final step that turned the bill into law after Parliament passed it. later that month turned the new rules into law.
- 2020
Full Federal CourtThe court that made the Douglas decision and triggered the need for new legislation. hands down the Douglas decisionThe 2020 court case that upset the old legal basis for how these military invalidity payments were treated, prompting this bill.
The decision meant some military invalidity payments no longer fit the legal categories previously used for social security and veterans means testing.
Hansard ↗ - 15 Feb 2024
Government introduces the bill to restore a clear legal basis
The minister said the bill was needed to give veterans certainty and maintain equity after the Douglas decisionThe 2020 court case that upset the old legal basis for how these military invalidity payments were treated, prompting this bill. affected how these payments could be means tested.
Hansard ↗ - 16 May 2024
Parliament passes the bill
Both houses agreed to the same bill, clearing the way for a new dedicated means-test category for affected military invalidity pensions and validation of past assessments.
Parliamentary timeline ↗ - 30 May 2024
Royal AssentThe final step that turned the bill into law after Parliament passed it. makes the new means-test rules law
Royal AssentThe final step that turned the bill into law after Parliament passed it. completed the legislative response so the updated treatment of affected military invalidity pensions could apply under social security and veterans law.
Parliamentary timeline ↗
Legislative route
How did it move through Parliament?
House Senate
Introduced 15 Feb 2024
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
Second reading opened 15 Feb 2024
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
Second reading debate 27 Feb 2024
The bill reached this recorded parliamentary step.
Sent to Federation Chamber for debate 27 Feb 2024
The bill reached this recorded parliamentary step.
Referred to Federation Chamber
Federation Chamber debate 27 Feb 2024
The bill reached this recorded parliamentary step.
Second reading debate
House second reading agreed 27 Feb 2024
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
Returned from Federation Chamber 28 Feb 2024
The bill reached this recorded parliamentary step.
Reported from Federation Chamber
House third reading agreed 28 Feb 2024
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
Introduced 28 Feb 2024
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
Second reading opened 28 Feb 2024
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
Community Affairs review 29 Feb 2024
Referred to Committee (29/02/2024): Senate Community Affairs Legislation Committee; Committee report (10/04/2024)
Referred to committee
APH bill page notesSecond reading debate 16 May 2024
The bill reached this recorded parliamentary step.
Senate second reading agreed 16 May 2024
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
Senate third reading agreed 16 May 2024
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
Passed both houses 16 May 2024
Both houses passed the bill in the same form, completing parliamentary passage.
Finally passed both Houses
Assent 30 May 2024
The Governor-General gave Royal AssentThe final step that turned the bill into law after Parliament passed it., turning the bill into an Act.
Key criticism
The main case against this bill
The main criticism was not of the bill’s goal but of the risk that its technical means-testing fix could accidentally leave some veterans worse off or create knock-on effects for family law and other welfare entitlements. Those concerns were raised conditionally by Coalition speakers who still supported the bill and wanted Senate scrutiny and clearer assurances before treating the issue as fully settled.
No party represented in the debate opposed the bill, but support came with requests for safeguards and closer checking.
Possible flow-on effects in other legal and welfare settings
Coalition speakers warned the bill’s treatment of military invalidity payments could have unintended consequences beyond social security, particularly for family law matters and interactions with other benefit entitlements.
Further sources
Votes
Recorded votes
How the bill itself passed
The bill passed both chambers on the voices, so there is no list of individual Aye and No votes for final passage.
Passed House passed the bill
House agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed
House passed the bill
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Passed Senate passed the bill
Senate agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed
Senate passed the bill
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Parliamentary debate
Who spoke, and what they said
Start here — lead voices
Sponsor speech Supports
Amanda Rishworth
Amanda Rishworth supports the bill and says it creates a clear legal basis for means testing military invalidity payments while preserving the pre-Douglas outcomes for affected veterans.
Read in Hansard ↗ Lead supporting voice Supports
Michael Sukkar
Sukkar says the coalition will support the bill because it is meant to fix the effects of the Douglas decisionThe 2020 court case that upset the old legal basis for how these military invalidity payments were treated, prompting this bill. for veterans, but he wants close scrutiny and further assurances so no veteran is made worse off.
Read in Hansard ↗ Lead voice Supports
Jenny McAllister
McAllister supports the bill, saying it creates a clear legal basis to means testThe rules that work out whether a payment is reduced because of a person's income or assets. military invalidity payments while preserving the pre-Douglas treatment and avoiding worse outcomes for veterans.
Read in Hansard ↗ Lead voice Supports
Justine Elliot
Elliot says Labor supports the bill, which creates a clear legal basis for means testing certain military invalidity payments after the Douglas decisionThe 2020 court case that upset the old legal basis for how these military invalidity payments were treated, prompting this bill. while keeping veterans' support arrangements stable and consistent.
Read in Hansard ↗All speeches by bloc
Labor
6 speakers · 6 support
Labor
6 speakers · 6 support
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Amanda Rishworth ★ Amanda Rishworth supports the bill and says it creates a clear legal basis for means testing military invalidity payments while preserving the pre-Douglas outcomes for affected veterans.
“This is an important bill, to establish a clear legal basis for means testing of the income from military invalidity payments affected by the full Federal Court's 2020 'Douglas decision', when recipients of those payments also seek support through our income support system.”
Read the full speech in Hansard ↗ -
Jenny McAllister ★ McAllister supports the bill, saying it creates a clear legal basis to means testThe rules that work out whether a payment is reduced because of a person's income or assets. military invalidity payments while preserving the pre-Douglas treatment and avoiding worse outcomes for veterans.
“That is why, with this Bill, I am introducing means testing arrangements that are designed to mirror the assessments obtained from the previous treatment before the Douglas decision. These amendments will ensure that the relevant invalidity payments can be means tested for income support in a way that delivers the same outcomes for these veterans as the pre-Douglas arrangements.”
Read the full speech in Hansard ↗ -
Justine Elliot ★ Elliot says Labor supports the bill, which creates a clear legal basis for means testing certain military invalidity payments after the Douglas decisionThe 2020 court case that upset the old legal basis for how these military invalidity payments were treated, prompting this bill. while keeping veterans' support arrangements stable and consistent.
“It's so important to give our veterans certainty. For those who have served our nation, this change maintains equality in a way different income support recipients are means tested and gives that certainty to it. Again, I acknowledge the bipartisan support from across the parliament on this very important change.”
Read the full speech in Hansard ↗ -
Matt Keogh Keogh supports the bill because it fixes the unintended tax and means-testing consequences of the Douglas decisionThe 2020 court case that upset the old legal basis for how these military invalidity payments were treated, prompting this bill. and is meant to ensure veterans are no worse off.
“These new provisions in this bill, the Social Services and Other Legislation Amendment (Military Invalidity Payments Means Testing) Bill 2024, insert a new income stream classification and assessment regime into the Social Security Act and the Veterans' Entitlements Act. These changes in the bill are designed to ensure the same assessment of income for invalidity payments and to ensure that invalidity payments continue to be treated as exempt from the assets test, clarifying the issues identified earlier. The new provisions are designed to ensure the same assessment of income for invalidity payments and to ensure that invalidity payments continue to be treated in the same way from an assets test point of view. This means that a person's invalidity payments that they may be receiving either through social security or under the Veterans' Entitlements Act, which are provided in recognition of the need for increased support due to service related conditions, are not negatively affected by other income or assets. This is intended to ensure that veterans and/or their partners receive a level of support that is consistent with the intent of that legislation and policy, before the unexpected findings that were delivered by the Federal Court in the Douglas decision. The last thing we want is to negatively impact those who have signed up to defend our nation. This bill seeks to ensure that no veteran is worse off as a result of the Douglas decision in the Federal Court, and I commend the bill to the House.”
Read the full speech in Hansard ↗ -
Matt Thistlethwaite Thistlethwaite supports the bill, saying it fixes an unintended means-testing problem caused by the Douglas decisionThe 2020 court case that upset the old legal basis for how these military invalidity payments were treated, prompting this bill. so veterans are no worse off.
“By passing this bill, we aim to maintain fairness and equity within the income support system and demonstrate our ongoing commitment to supporting our veterans, who have served our nation. We owe it to them to get this right, and that's what this bill does.”
Read the full speech in Hansard ↗ -
Carol Brown Carol Brown supports the bill, saying it restores a clear legal basis for means testing military invalidity benefits affected by the Douglas decisionThe 2020 court case that upset the old legal basis for how these military invalidity payments were treated, prompting this bill. and gives veterans certainty about how those payments are assessed for income support.
“This bill, the Social Services and Other Legislation Amendment (Military Invalidity Payments Means Testing) Bill 2024, amends the Social Security Act 1991 and the Veterans' Entitlements Act 1986 to establish a clear legal basis for means testing the income from military invalidity benefits affected by the full Federal Court's 2020 Douglas decision when recipients of those payments also seek support for other income support systems.”
Read the full speech in Hansard ↗
Coalition
2 speakers · 2 support
Coalition
2 speakers · 2 support
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Michael Sukkar ★ Sukkar says the coalition will support the bill because it is meant to fix the effects of the Douglas decisionThe 2020 court case that upset the old legal basis for how these military invalidity payments were treated, prompting this bill. for veterans, but he wants close scrutiny and further assurances so no veteran is made worse off.
“I won't detain the House on what I hope ultimately becomes a fairly uncontroversial bill to clean up understanding of the law in light of a High Court interpretation, but I reiterate to veterans that we are supporting this bill on the basis that there are no adverse consequences for any veteran.”
Read the full speech in Hansard ↗ -
Paul Scarr Scarr says the coalition supports the bill because it creates a clear legal framework for means testing military invalidity payments after the Douglas decisionThe 2020 court case that upset the old legal basis for how these military invalidity payments were treated, prompting this bill., but he wants assurances that veterans will not be worse off and notes concerns about family law and other benefit impacts.
“The coalition support this bill. The coalition has sought assurances from the government that veterans will not be worse off under this legislation. The coalition supports the intent of the bill in its aims to establish a clear legal framework for means testing income from military invalidity payments affected by the Douglas decision. Following advice from the government and through the committee inquiry, it is the coalition's expectation that the vast number of veterans will not be worse off under this legislation. The coalition does, however, note concerns from stakeholders, including those stakeholders seeking clarification on whether the amendments in the bill would exclude military invalidity pension income streams from asset assessments in family law matters and how this bill will affect eligibility for family tax benefits, childcare subsidies or low-income health care.”
Read the full speech in Hansard ↗
Record
Full record
- Act title
- Social Services and Other Legislation Amendment (Military Invalidity Payments Means Testing) Act 2024
- Act number
- Act No. 30, 2024
- Became law
- 30 May 2024
- Takes effect
- The whole of this Act 31 May 2024
- Registered
- 31 May 2024
- Administered by
- Department of Social Services
- Final law metadata was collected from the APH progress table; commencement rows were parsed from the bill text.
- Status
- Act -- Collected from the APH bill page.
- Originating house
- House of Representatives
- 15 Feb 2024
House · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
- 15 Feb 2024
House · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
- 27 Feb 2024
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
- 27 Feb 2024
House · Referred to Federation Chamber
Referred to Federation Chamber
The bill reached this recorded parliamentary step.
- 27 Feb 2024
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
- 27 Feb 2024
House · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
- 28 Feb 2024
House · Reported from Federation Chamber
Reported from Federation Chamber
The bill reached this recorded parliamentary step.
- 28 Feb 2024
House · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
- 28 Feb 2024
Senate · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
- 28 Feb 2024
Senate · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
- 16 May 2024
Senate · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
- 16 May 2024
Senate · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
- 16 May 2024
Senate · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
- 16 May 2024
Parliament · Finally passed both Houses
Passed both houses
Both houses passed the bill in the same form, completing parliamentary passage.
- 30 May 2024
Assent · Assent
Assent
The Governor-General gave Royal AssentThe final step that turned the bill into law after Parliament passed it., turning the bill into an Act.
Senate Community Affairs Legislation Committee; Committee report (10/04/2024)
Referred to committee
Referred to Committee (29 Feb 2024): Senate Community Affairs Legislation Committee; Committee report (10 Apr 2024)
APH bill page notes