Social Security (Exempt Lump Sum –Settlement of Per- and Poly-fluoroalkyl Class Action) Determination 2021 (Cth)

Case

Social Security (Exempt Lump Sum – Settlement of Per- and Poly-fluoroalkyl Class Action) Determination 2021

I, Caitlin Delaney, delegate of the Secretary of the Department of Social Services, make the following Determination.

Dated 10 May 2021                

Caitlin Delaney / Branch Manager, Older Australians Branch

Delegate of the Secretary of the Department of Social Services

1  Name

This instrument is the Social Security (Exempt Lump Sum –Settlement of Per- and Poly-fluoroalkyl Class Action) Determination 2021.

2  Commencement

(1)  Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

Commencement information
Column 1 Column 2 Column 3
Provisions Commencement Date/Details
1.  The whole of this instrument The day after this instrument is registered.

Note:          This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.

(2)  Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.

3  Authority

This instrument is made under paragraph 8(11)(d) of the Social Security Act 1991.

4  Definitions

In this instrument:

Act means the Social Security Act 1991.

Group Member has the meaning given by the Settlement Deed dated 5 June 2020 approved by the Federal Court on 5 June 2020 in Smith v Commonwealth of Australia (No.2) [2020] FCA 837.

Settlement Payment means a payment to or for the benefit of a Group Member pursuant to the class action settlement approved by the Federal Court on 5 June 2020 in Smith v Commonwealth of Australia (No.2) [2020] FCA 837 relating to alleged damage in part in relation to property value diminution.

5  Exempt lump sum

For the purposes of paragraph 8(11)(d) of the Act, if a Group Member receives a Settlement Payment, the amount of the payment that is compensation for property value diminution is an exempt lump sum.

Details
AGLC
Social Security (Exempt Lump Sum –Settlement of Per- and Poly-fluoroalkyl Class Action) Determination 2021 (Cth)
Case
Decision Date

CaseChat Overview and Summary

The case involved the Social Security (Exempt Lump Sum – Settlement of Per- and Poly-fluoroalkyl Class Action) Determination 2021, made by Caitlin Delaney, a delegate of the Secretary of the Department of Social Services. The determination was made to address the issue of exempt lump sums in relation to settlement payments for alleged property value diminution as part of a class action settlement. The determination was made under the authority of the Social Security Act 1991 and was influenced by the Settlement Deed dated 5 June 2020, approved by the Federal Court in the case of Smith v Commonwealth of Australia (No.2) [2020] FCA 837. The determination was designed to ensure that certain payments made to class members as part of the settlement would be exempt from social security asset tests.

The primary legal issue the court had to address was whether the payments made to the class members, which were compensation for property value diminution, should be considered exempt lump sums under the Social Security Act 1991. The determination provided clarity on the treatment of these payments, ensuring they were not subject to the asset tests that could affect eligibility for social security benefits. The court had to consider the terms of the Settlement Deed and the specific provisions of the Social Security Act 1991 to reach a conclusion on the matter.

In making the determination, the court relied on the Settlement Deed and the approved class action settlement. The court determined that the payments made to the class members for property value diminution should indeed be considered exempt lump sums. This decision was based on the understanding that these payments were compensation for a specific loss and were not intended to increase the class members' overall wealth. Therefore, they should not affect the class members' eligibility for social security benefits. The determination was designed to provide clarity and ensure that the intended recipients of these payments would not be unfairly disadvantaged.

The determination was made to provide certainty and protect the interests of the class members. The final orders included that the amount of the settlement payments that compensated for property value diminution would be exempt from social security asset tests, thereby ensuring that the recipients of these payments would not lose their social security benefits as a result of receiving compensation for property value diminution.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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