Explanatory Statement
Issued by the authority of the Secretary of the Department of Social Services
Social Security Act 1991
Social Security (Exempt Lump Sum – Bali Commemoration Services Travel Assistance Payment) Determination 2025
Purpose
The Social Security (Exempt Lump Sum – Bali Commemoration Services Travel Assistance Payment) Determination 2025 (Determination) ensures that a Bali Commemoration Services Travel Assistance Payment (commemoration payment), made to a social security recipient under the 2025 Bali Commemoration Services – Travel Assistance Payment Guidelines (Guidelines), is an exempt lump sum under paragraph 8(11)(d) of the Social Security Act 1991 (the Act).
The Determination applies to one-off commemoration payments received by eligible claimants for travel to, and participation in, a relevant commemoration service for the 20th anniversary of the 2005 Bali bombings.
By determining a commemoration payment is an exempt lump sum under the Act, the amount of such a payment will not be assessed as ordinary income for the purposes of the recipient’s social security payment.
Background
Exempt lump sums
An income amount earned, derived or received for a person’s own use or benefit is generally assessed as income under the social security law. However, paragraph 8(11)(d) of the Act allows the Secretary of the Department of Social Services, or their delegate, to determine that an amount, or class of amounts, received by a person is an exempt lump sum for the purposes of the Act.
An exempt lump sum is excluded from the definition of “ordinary income” in subsection 8(1) of the Act. This means the amount is not taken into account under the social security income test, and will not have any effect on the person’s social security payment.
The exemption of a lump sum payment from the income test does not affect the assessment of any ongoing income generated by the lump sum, nor any assessable asset produced from the lump sum. These will be counted under the social security income and assets tests respectively. This is consistent with the treatment of other amounts as exempt lump sums under paragraph 8(11)(d) of the Act.
2025 Bali Commemoration Services – Travel Assistance Payment Guidelines
The Financial Framework (Supplementary Powers) Act 1997 enables Services Australia, on behalf of the Department of Foreign Affairs and Trade, to administer a one-off commemoration payment to Australian citizens and permanent residents who meet the eligibility criteria set out in the Guidelines dated 16 September 2025. The one-off payment is to assist with travel expenses involved with attending a relevant service for the 20 year anniversary commemorations of the 2005 Bali bombings.
Under the Guidelines, persons eligible for the commemoration payment include:
- family members of deceased Australian victims of the 2005 Bali bombings;
- Australians seriously injured in the 2005 Bali bombings and their families; or
- first responders who provided assistance at the 2005 Bali bombings.
The Determination provides that amounts paid in relation to travel expenses in accordance with the Guidelines are exempt lump sums for the purposes of paragraph 8(11)(d) of the Act.
The terms and conditions of the Guidelines can be found on the GrantConnect website (www.grants.gov.au – GO ID: GO7907). The Guidelines can be freely accessed and used following free user registration with GrantConnect.
Authority
The Determination is made under paragraph 8(11)(d) of the Act, which provides that the Secretary may determine an amount, or class of amounts, to be an exempt lump sum for the purposes of the Act.
The Determination is a legislative instrument for the purposes of the Legislation Act 2003 and is subject to disallowance.
Retrospective commencement
The Determination commences on 1 October 2025. This reflects that claims for the commemoration payment can be submitted between 1 October 2025 and 28 November 2025.
The retrospective commencement is beneficial to social security recipients, and ensures that a commemoration payment is consistently treated as an exempt lump sum under the Act from the date applications for the payment are open.
The retrospective operation of the Determination does not infringe section 12 of the Legislation Act 2003 because the retrospective operation does not disadvantage any person or impose a liability on a person other than the Commonwealth.
Consultation
The Department of Social Services consulted the Department of Foreign Affairs and Trade on the text of the Determination, as that department is responsible for administering the Guidelines. The Department of Foreign Affairs and Trade supported the Determination.
The Department of Social Services also consulted the following agencies on the intention to make the Determination:
- Services Australia, given the impact on income support recipients;
- the Department of Veterans’ Affairs because determinations under paragraph 8(11)(d) of the Act apply automatically under the Veterans’ Entitlements Act 1986; and
- the Department of Agriculture, Fisheries and Forestry because paragraph 8(11)(d) determinations apply automatically under the Farm Household Support Act 2014.
The above agencies supported the Determination.
The Department of Social Services did not consult with income support recipients likely to be affected by the Determination, given it is beneficial in nature.
Availability of independent review
A decision made under the social security law, as informed by the Determination, is subject to internal and external review under Parts 4 and 4A of the Social Security (Administration) Act 1999.
Explanation of the provisions
Details of the Social Security (Exempt Lump Sum – Bali Commemoration Services Travel Assistance Payment) Determination 2025
Section 1 – Name
Section 1 states how the Determination is to be cited, that is, as the Social Security (Exempt Lump Sum – Bali Commemoration Services Travel Assistance Payment) Determination 2025.
Section 2 - Commencement
Section 2 specifies that the Determination commences on 1 October 2025.
Section 3 – Authority
Section 3 provides that the Determination is made under paragraph 8(11)(d) of the Act.
Section 4 – Definitions
Section 4 contains definitions of certain terms used in the Determination.
The terms “Bali Commemoration Services Travel Assistance Payment”, “Commemoration Service” and “2025 Bali Commemoration Services – Travel Assistance Payment Guidelines” are defined in section 4.
Section 5 – Exempt lump sum
Section 5 specifies amounts determined by the Secretary to be exempt lump sums, in accordance with paragraph 8(11)(d) of the Act.
In particular, section 5 provides that where a person has received a commemoration payment, that amount is an exempt lump sum.
By determining that a commemoration payment is an exempt lump sum under the Act, the amount of such a payment will not be assessed as ordinary income for the purposes of the recipient’s social security payment.
Statement Of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Social Security (Exempt Lump Sum – Bali Commemoration Services Travel Assistance Payment) Determination 2025
The Social Security (Exempt Lump Sum – Bali Commemoration Services Travel Assistance Payment) Determination 2025 (the Determination) is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the legislative instrument
The Determination ensures that a Bali Commemoration Services Travel Assistance Payment (commemoration payment), made by Services Australia on behalf of the Department of Foreign Affairs and Trade to a social security recipient, is an exempt lump sum under paragraph 8(11)(d) of the Social Security Act 1991 (the Act).
The Determination applies to one-off commemoration payments received by eligible claimants for travel to, and participation in, a relevant commemoration service for the 20th anniversary of the 2005 Bali bombings.
By determining a commemoration payment is an exempt lump sum under the Act, the amount of such a payment will not be assessed as ordinary income for the purposes of the recipient’s social security payment.
Human rights implications
The Determination engages the right to social security and the right to an adequate standard of living.
Article 9 of the International Covenant on Economic, Social and Cultural Rights (ICESCR) recognises the right to social security and requires a social security scheme be established under domestic law that provides a minimum essential level of benefits to all individuals and families that will enable them to acquire at least essential health care, basic shelter and housing, water and sanitation, foodstuffs, and the most basic forms of education.
Article 11 of the ICESCR recognises the right to an adequate standard of living, which provides that everyone is entitled to adequate food, clothing and housing and to the continuous improvement of living conditions.
Under the Act, social security payments are subject to a means test which assess the person’s income and assets to determine their eligibility for the payment, and their rate of payment. The Determination operates beneficially as a commemoration payment will not be taken into account when assessing a person’s eligibility or rate of social security entitlements under the social security income test. This exemption also flows through to means tested payments under the Veterans’ Entitlements Act 1986 and the Farm Household Support Act 2014.
If a commemoration payment is not exempted, a person in receipt of such a payment may not be eligible for an income support payment or, if they are eligible, their rate of payment might be reduced.
Conclusion
This Determination is compatible with human rights as it promotes and supports a person’s right to social security and the right to an adequate standard of living.
Xia Du
Acting Branch Manager of the Payment Structures and Seniors Branch
Delegate of the Secretary of the Department of Social Services