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CSC: AFSL 238069 ABN 48 882 817 243 RSE L0001397
ADF Super : RSE R1077063
CSS: RSE R1004649
MSBS: RSE R1000306
PSS: RSE R1004595
PSSap: RSE R1004601

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Mr Morrison-Francis,

The FOI Act is for seeking access to existing documents - not for
requesting the creation of documents or asking questions. Whilst CSC is
not obliged to do so, we have provided the following information under
administrative access, to assist you.

1.      Number of Veterans in receipt of a Class A pension*

·        MilitarySuper: 1,666

·        ADF Cover: 302

·        DFRB: 0

·        DFRDB: 43.

2.      Number of Veterans in receipt of a Class B pension*

·        MilitarySuper: 169

·        ADF Cover: 52

·        DFRB: 2

·        DFRDB: 17.

3.      Number of Veterans in receipt of a Class C pension*

·        MilitarySuper: 67

·        ADF Cover: 27

·        DFRB: 0

·        DFRDB: 13.

4.      Number of veterans that had been APPROVED Withholding Variations
for the FY 2021 applied by your agency

·        In simple terms, CSC withholds amounts from invalidity benefits.
This is not actually taxing members – taxation is a matter for the ATO.
“Withholding” is the process where CSC withholds amounts from fortnightly
pension payments and remits these to the ATO as part of the pay-as-you-go
(PAYG) system.  Further information about withholding variations can be
found here: [1]PAYG withholding variation application | Australian
Taxation Office (ato.gov.au).

5.      Number of veterans that had been REJECTED Withholding Variations
for the FY 2021 applied by your agency

·        Refer to answer 4.

6.      Number of veterans that had been APPROVED Withholding Variations
for the FY 2022 applied by your agency

·        Refer to answer 4.

7.      Number of veterans that had been REJECTED Withholding Variations
for the FY 2022 applied by your agency

·        Refer to answer 4.

8.      Number of veterans that had been PENDING Withholding Variations
for the FY 2022 applied by your agency

·        Refer to answer 4.

9.      Documents that clearly show the number of veterans that are
receiving a LARGER YEARLY income after the relevant Taxation has been
withheld at the END OF THE YEAR.

·        There were approximately 4,400 members whose withholding amounts
decreased, resulting in their fortnightly payments increasing.

·        There were approximately 6,800 members whose withholding would
increase, resulting in their fortnightly payment decreasing.

10.   Documents that clearly show the number of veterans that are
receiving a LARGER income after the relevant Taxation has been withheld in
each pay run performed by the Commonwealth Superannuation Corporation.

·        Refer to answer 9.

11.   Documents that clearly show the number of veterans that are
receiving a SMALLER YEARLY income after the relevant Taxation has been
withheld at the END OF THE YEAR.

·        Refer to answer 9.

12.   Documents that clearly show the number of veterans that are
receiving a SMALLER income after the relevant Taxation has been withheld
in each pay run performed by the Commonwealth Superannuation Corporation.

·        Refer to answer 9.

13.   If your agency has ever reported incorrect figures in relation to
the above please provide any copy of a retraction, correction statement or
any document confirming that you have modified the incorrect information.

·        Please note that figures can fluctuate dependant on an
individual’s circumstances, impacting their tax.

14.   Number of Veterans in receipt of a Class A pension* that your agency
is refusing to treat as a Lump Sum Payment as defined by the relevant acts
and the decision.

·        There is no existing database that records the information
requested in parts 14-18. Please refer to response 9 through 12 for the
overachieving figures.

15.   Number of Veterans in receipt of a Class B pension* that your agency
is refusing to treat as a Lump Sum Payment as defined by the relevant acts
and the decision.

·        Refer to answer 14.

16.   Number of Veterans in receipt of a Class C pension* that your agency
is refusing to treat as a Lump Sum Payment as defined by the relevant acts
and the decision.

·        Refer to answer 14.

17.   The TOTAL number of Veterans that have applied for a review of
previous tax returns that were affected by the decision to date regardless
of the status of this request.

·        Refer to answer 14.

18.   The TOTAL number of Veterans that have applied for a review of
previous tax returns that were affected by the decision to date that your
department still has not made corrections to.

·        Refer to answer 14.

19.   Any documents that your department has sent to the "Veteran
Community" directly via post, fax, email advising them that they can apply
for Disability Superannuation Benefit "DSB" after the Federal Court handed
down the Douglas decision.

·        This information is available online at [2]Tax Changes to
Invalidity Pensions (csc.gov.au)

20.   Copies of any ministerial briefing documents that relate to the
above-mentioned case.

·        There are no ministerial briefing in CSC’s possession related to
the Commissioner of Taxation v Douglas [2020] FCAFC 220 decision.

21.   Any other document that you deem necessary to release as part of
this request to help the wider community understand or interpret the
documents above.

·        This information is available online at [3]Tax Changes to
Invalidity Pensions (csc.gov.au)

As noted above, there is a range of information available online which may
assist you in understanding in the Commissioner of Taxation v Douglas
[2020] FCAFC 220 decision.  As you would be aware, on 24 November 2021,
The Hon Michael Sukkar MP and The Hon Andrew Gee MP issued a joint media
release where they announced action would be taken to ensure no veteran
was worse off due to the Douglas decision. You can read the announcement
[4]here. Following the Government’s announcement, CSC understands that the
withholding directions will be further changed in the coming months. The
legislative amendments that will accompany this change are currently being
drafted and we are expecting the bill to be introduced in Parliament at
the earliest available opportunity.

On the basis that we have provided this information administratively,
please confirm if you agree to withdraw your request.  If CSC does not
hear from you by COB Wednesday 21 February 2022, indicating your preferred
way forward, we will consider your request withdrawn.

If you have any further questions relating to tax changes to invalidity
pensions, contact [5][email address] or call 1300 006 727.

We trust this information clarifies the matter for you.

Best regards,

Adam Ivancic

Parliamentary and Information Release Coordinator

General Counsel Team

[6]cid:image001.png@01D7B138.2D24A460

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