Social Security Exempt Lump Sum Determination No. 4 of 1999 (Cth)

Commonwealth of Australia

Social Security Act 1991

Social Security Exempt Lump Sum

Determination No. 4 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             23 September   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. 4 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.

HEC agreement means a home equity conversion agreement as defined under subsection 8(1) of the Social Security Act 1991.

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.

Not a member of a couple

(2)                   If a person is not a member of a couple, an amount in excess of $40,000 that is paid to or on behalf of the person under a HEC agreement is an excluded amount or a class of excluded amounts.

Member of a couple

(3)                   If a person is a member of a couple, an amount in excess of $40,000 that is paid to or on behalf of the person or the person's partner under a HEC agreement is an excluded amount or a class of excluded amounts.

2.2                   Application—Exempt Lump Sums

It is appropriate to determine that an excluded amount, or class of excluded amounts, as specified in paragraphs 2.1(2) and (3), paid to a person or the person's partner, as the case may be, under a HEC agreement is an exempt lump sum for the purposes of paragraph 8(11)(d) of the Act from the date that the amount is paid.