Overview

The Social Security Exempt Lump Sum Determination No. 2 of 2000 was introduced to address the specific issue of exempting certain lump sum payments from the means test used to determine eligibility for social security benefits. Enacted under the authority of the Social Security Act 1991, the determination was made by Glenys McIver, Acting Assistant Secretary of the Seniors and Means Test Branch and a delegate of the Secretary to the Department of Family and Community Services. The primary objective of this legislation is to ensure that certain financial assistance payments, such as those made under the Dairy Exit Payment (DEP) scheme established by the Farm Household Support Act 1992, do not adversely affect the social security benefits of the recipients. By classifying these payments as exempt lump sums, the determination aims to provide relief to individuals receiving such payments, ensuring they are not unfairly penalised in their assessment for social security benefits.

Scope and Application

The Social Security Exempt Lump Sum Determination No. 2 of 2000 applies to payments made under the Dairy Exit Payment (DEP) scheme, which is established under section 52C of the Farm Household Support Act 1992. These payments are designated as exempt lump sums for the purposes of the Social Security Act 1991, effective from 1 July 2000. The determination ensures that these lump sum payments are exempt from being considered as assessable income for social security purposes when received by a person on or after the commencement date of the determination. The geographic reach of this legislation is national, as it applies across Australia, and it is made under the authority of the Commonwealth government. There are no stated exclusions, exemptions, or thresholds within the determination itself, though the application of the Social Security Act 1991 may impose certain conditions or limitations on the overall exemption of lump sums.

Key Provisions

The main operative sections of the Social Security Exempt Lump Sum Determination No. 2 of 2000 clarify the specific conditions under which certain payments are considered exempt lump sums under the Social Security Act 1991. Section 2.1 establishes that an amount, or class of amounts, received by a person qualifies as an exempt lump sum if determined as such by the Act. This determination specifically refers to the grant of financial assistance known as a dairy exit payment, as outlined in section 52C of the Farm Household Support Act 1992. Section 2.2 confirms that any payments made on or after 1 July 2000, referred to as dairy exit payments, are to be considered exempt lump sums starting from that date. This legislation imposes clear obligations on the parties involved. It mandates that any payments designated as dairy exit payments under the Farm Household Support Act 1992 are to be treated as exempt lump sums for the purposes of assessing eligibility and entitlements under the Social Security Act 1991. This means that such payments are excluded from the calculation of social security benefits, ensuring that recipients are not unfairly penalised by these financial supports. Additionally, the determination ensures that these lump sums are appropriately categorised and managed within the social security framework. In terms of enforcement and compliance, breaches of the provisions outlined in this determination can lead to significant consequences. Although specific offences and penalties are not detailed within the determination itself, breaches of the Social Security Act 1991 can result in both civil and criminal penalties. For civil penalties, individuals or entities may be required to repay any benefits received in error, along with interest. Criminal penalties can include fines and, in severe cases, imprisonment. The maximum penalties for offences under the Social Security Act 1991 can vary widely, but they are designed to ensure adherence to the legislative requirements and to protect the integrity of the social security system.