Social Security Exempt Lump Sum Determination No. 7 of 2004 (FACS) (Cth)

Commonwealth of Australia

Social Security Act 1991

Social Security Exempt Lump Sum
Determination No. 7 of 2004

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

Dated             6 October   2004.

Alex Dolan

Assistant Secretary, Seniors and Means Test Branch

Part 1        Preliminary

1   Name of determination

This determination is the Social Security Exempt Lump Sum Determination No. 7 of 2004.

2   Commencement

This determination commences on the date it is signed.

3   Interpretation

In this determination:

Act means the Social Security Act 1991.

market-linked income stream means an asset-test exempt income stream which meets the requirements of subsection 9BA(1) of the Social Security Act 1991.

social security payment has the same meaning as in the Social Security Act 1991.

Part 2        Exempt Lump Sums

4   Amount or class of amounts

(1) Paragraph 8(11)(d) of the Act provides that the Secretary may determine that an amount or class of amounts received by a person, is an exempt lump sum.

(2)       If:

(a)        a person is a beneficiary of a market-linked income stream; and

(b)        after the payment of the final year’s annual payment from that market-linked income stream there is a residual balance in the relevant account; and

(c) clause 3 of Schedule 6 of the Superannuation Industry (Supervision) Regulations 1994 requires that the residual balance in the account of the market-linked income stream is to be paid to the beneficiary within 28 days of the end of the market-linked income stream’s term; and

(d)       the person is in receipt of a social security payment;

then any amount paid by the market-linked income stream to the person, in accordance with paragraph (c) above, is an exempt lump sum.

5   Application—Exempt Lump Sums

An amount, or class of amounts received by a person referred to in subsection 4(2) is an exempt lump sum for the purposes of paragraph 8(11)(d) of the Act from the date that the amount was received.