Social Security Exempt Lump Sum Determination No. 3 of 1999 (Cth)

Commonwealth of Australia

Social Security Act 1991

Social Security Exempt Lump Sum

Determination No. 3 of 1999

I, Evan Mann, Assistant Secretary, Seniors and Means Test Branch and a delegate of the Secretary to the Department of Family and Community Services, make this determination under paragraph 8(11)(d) of the Social Security Act 1991.

Dated             24 June   1999.

Evan Mann

Assistant Secretary, Seniors and Means Test Branch

Part 1        Preliminary

1.1                   Name of determination

This determination is the Social Security Exempt Lump Sum Determination No. 3 of 1999.

1.2                   Commencement

This determination commences on the day on which it is signed.

1.3                   Definition

In this determination:

Act means the Social Security Act 1991.

Life office means a life insurance business within the meaning of the Life Insurance Act 1995.

Income support payment has the same meaning as under the Social Security Act 1991.

Superannuation fund has the same meaning as under the Superannuation Industry (Supervision) Act 1993.

Part 2        Exempt Lump Sums

2.1                   Amount or class of amounts

(1) Paragraph 8(11)(d) of the Act provides that an amount, or class of amounts, received by a person is an exempt lump sum if the amount, or class of amounts, is determined to be an exempt lump sum.

(2)                   If:

(a)       a person has an annuity contract or contracts with a life office or a superannuation fund that was current at 20 September 1998; and

(b)       that person was in receipt of an income support payment at 19 September 1998; and

(c)        the annuity contract or contracts were converted to an asset test exempt product or products between 20 September 1998 and 31 July 1999 (inclusive);

then any amount paid, as a lump sum, arising solely from the conversion of the annuity contract or contracts to an asset test exempt product or products, to the person by a life office or a superannuation fund is an exempt lump sum provided:

(d)       that the amount paid by the life office or a superannuation fund to the person is the minimum amount payable consistent with the need to convert the person's existing annuity contract or contracts to an asset test exempt product or products.

2.2                   Application—Exempt Lump Sums

It is appropriate to determine that an amount, or class of amounts, paid to a person by a life office or a superannuation fund in accordance with the requirements of paragraph 2.1(2) is an exempt lump sum for the purposes of paragraph 8(11)(d) of the Act from the date that the amount is paid.