Overview

The Social Security Exempt Lump Sum Determination No. 2 of 1999 was enacted under the authority of the Social Security Act 1991. This legislation was introduced to address the need to exempt certain lump sum payments from the assessment of social security benefits for needy Holocaust survivors in Australia. The determination was made by Evan Mann, Assistant Secretary, Retirement Programs, and a delegate of the Secretary to the Department of Family and Community Services, under paragraph 8(11)(d) of the Social Security Act 1991. The policy objective behind this determination was to ensure that one-off payments made to Holocaust survivors from a Humanitarian Fund, established by Swiss banks and disbursed by the World Jewish Restitution Organisation through the Executive Council of Australian Jewry, would not affect their eligibility for income support payments from the Australian Government. This approach ensures that these vulnerable individuals receive necessary financial assistance without their benefits being inadvertently reduced due to these humanitarian payments.

Scope and Application

The Social Security Exempt Lump Sum Determination No. 2 of 1999 applies to specific lump sum payments made to Holocaust survivors in Australia. These payments are made by the World Jewish Restitution Organisation through the Executive Council of Australian Jewry, from a Humanitarian Fund established by Swiss banks. The Act specifically targets individuals who are defined as Holocaust survivors, meaning those who have lived under the Nazi regime, Nazi occupation, or Nazi collaborative regime and are either Australian citizens or residents in receipt of an income support payment from the Australian Government. The lump sum payments from the Humanitarian Fund, disbursed by the Executive Council of Australian Jewry to eligible Holocaust survivors, are considered exempt lump sums under the Social Security Act 1991, effective from the date of their payment. The determination extends the application of the Act through subordinate instruments to ensure the specified lump sums are appropriately exempt from certain social security considerations.

Key Provisions

The Social Security Exempt Lump Sum Determination No. 2 of 1999 (the "Determination") specifies that certain payments made to Holocaust survivors are exempt lump sums under the Social Security Act 1991 (the "Act"). This is outlined in sections 2.1 and 2.2 of the Determination. Section 2.1(1) establishes that the payments in question are exempt lump sums, and section 2.2 further clarifies that these payments, when made from a Humanitarian Fund established by Swiss banks and disbursed through the Executive Council of Australian Jewry, are exempt from the Act's usual requirements. The Determination imposes certain obligations on the entities involved. Firstly, the World Jewish Restitution Organisation, through the Executive Council of Australian Jewry, is tasked with disbursing one-off payments to needy Holocaust survivors from the Humanitarian Fund. This is a significant responsibility, as it ensures that eligible individuals receive financial support directly linked to their status as Holocaust survivors. The Act, as referenced in paragraph 8(11)(d), provides the legal basis for these payments to be considered exempt lump sums, thereby shielding them from certain social security implications. For those who fail to comply with the provisions of the Determination or the Act, there may be legal consequences. While the Determination itself does not explicitly outline penalties for non-compliance, the Act contains provisions that could apply. Under the Act, breaches of its requirements can lead to civil or criminal penalties, depending on the severity of the offence. The specific penalties can vary, but they may include fines or imprisonment, reflecting the seriousness with which the Australian Government treats violations of social security laws. It is important to note that the Determination is a legislative instrument designed to provide clarity and ensure that eligible Holocaust survivors receive necessary financial support without undue interference from social security regulations. By classifying these payments as exempt lump sums, the Determination aims to alleviate any potential hardship or administrative burden on the recipients, ensuring they can access the assistance they need without complications from social security provisions.