Overview

The Social Security Exempt Lump Sum Determination No. 1 of 2002 was made under the authority of the Social Security Act 1991 by Gwenda Prince, an Assistant Secretary of the Department of Family and Community Services, to address the need for exempting certain lump sum payments from social security assessments. This legislative instrument was introduced to ensure that lump sum payments made by the Department of New South Wales Fisheries to licence holders as compensation for being excluded from commercial fishing in designated protected areas are not considered income for the purposes of social security benefits. The policy objective is to provide clarity and fairness in the social security system by exempting these specific payments from income assessments, thereby avoiding undue financial hardship for the affected licence holders. This determination was issued to support the broader objective of protecting fisheries while ensuring that those impacted by such protections are not disadvantaged in their social security entitlements.

Scope and Application

The Social Security Exempt Lump Sum Determination No. 1 of 2002 applies to certain payments made by the Department of New South Wales Fisheries to licence holders under the Fisheries Management Act 1994 (NSW) and the Fisheries Management (General) Regulations 1995 (NSW). Specifically, it pertains to lump sum payments made to licence holders who are excluded from commercial fishing in designated protected areas in New South Wales. The determination is made under paragraph 8(11)(d) of the Social Security Act 1991, which allows for the exemption of certain lump sums from the operation of the Act. These payments are deemed exempt lump sums from the date they are paid, provided they are compensation for the exclusion from commercial fishing and the surrender of the licence to the Department of New South Wales Fisheries. The determination clarifies that these payments are exempt from the means test for social security benefits under the Social Security Act 1991.

Key Provisions

The main operative sections of the Social Security Exempt Lump Sum Determination No. 1 of 2002 (the Determination) pertain to the definition of the terms used within the document and the specific circumstances under which a lump sum payment is considered an exempt lump sum for the purposes of the Social Security Act 1991 (the Act) (section 1.3 and section 2.1). This Determination specifies that a lump sum payment made by the Department of New South Wales Fisheries to a licence holder, as compensation for exclusion from commercial fishing in designated protected areas, is considered an exempt lump sum (section 2.1(2)). This means that such payments are not subject to the means test for social security benefits as defined under the Act. The obligations imposed by this Determination primarily concern the Department of New South Wales Fisheries, which is required to make lump sum payments to licence holders who are excluded from commercial fishing in areas designated as protected (section 2.1(2)). The licence holders, in turn, are required to surrender their licences to the Department of New South Wales Fisheries as part of the compensation arrangement (section 2.1(2)). Additionally, the Department of Family and Community Services, through its delegate, Gwenda Prince, is tasked with making this Determination under the authority granted by the Act (section 1.1). The Determination does not explicitly state any offences or penalties for breaches of its provisions. However, non-compliance with the conditions stipulated in the Determination could potentially result in legal consequences under the Act, including the possibility of being subject to the means test for social security benefits, which could affect eligibility and the amount of benefits received. The penalties for non-compliance with the Social Security Act 1991 can include fines and imprisonment for serious breaches, though the specific maximum penalties would need to be referenced within the Act itself rather than the Determination.