(1) Subject to this Part, subsidy is payable on a subsidised loan to the surviving spouse or de facto partner of a deceased eligible person while the surviving spouse or de facto partner remains entitled to a subsidy period.
(2) Subject to subsection (3), the surviving spouse or de facto partner of a deceased eligible person is at any particular time entitled to a subsidy period that at that time is the same as the period that would have applied at that time under section 23 if the loan had been made to the eligible person.
(3) If the deceased is a prescribed member, subsection (2) applies to the surviving spouse or de facto partner as if the deceased had been an incapacitated person immediately before his or her death.
(4) In this section:
"prescribed member" means a deceased member:
(a) who had completed less than 16 years of effective full - time service or composite service immediately before his or her death; and
(aa) who was neither an operational service member nor a warlike service member; and
(b) in respect of whose death compensation is payable under:
(i) the Safety, Rehabilitation and Compensation Act 1988 ; or
(iaa) the Safety, Rehabilitation and Compensation (Defence - related Claims) Act 1988 ; or
(ia) the Military Rehabilitation and Compensation Act 2004 ; or
(ii) the Veterans' Entitlements Act 1986 ; or
(iii) a law of the Commonwealth prescribed by the regulations.
"surviving spouse or de facto partner" does not include a surviving spouse or de facto partner who is an eligible person.