Overview

The Social Security Exempt Lump Sum Determination No. 2 of 2002 was enacted to address the need for recognising specific lump sum payments as exempt income for the purposes of social security benefits under the Social Security Act 1991. This determination was made by Alex Dolan, Assistant Secretary of the Seniors and Means Test Branch, a delegate of the Secretary of the Department of Family and Community Services, under the authority granted by paragraph 8(11)(d) of the Act. The policy objective of this determination is to ensure that certain reparations and payments to survivors and their families, related to World War II events, are not considered as assessable income for social security purposes. Specifically, it aims to exempt lump sum payments from the Dutch-Maror organisation for Jewish survivors of World War II and their families, as well as lump sum reparations under the French Decree 2000-657 for orphans of persons who died during the anti-Semitic persecutions in France during the war.

Scope and Application

The Social Security Exempt Lump Sum Determination No. 2 of 2002 applies to lump sum payments made by the Dutch-Maror organisation to Jewish survivors of World War II and their families, as well as lump sum reparations paid to orphans of persons who died during the deportation as part of the anti-Semitic persecutions during the German occupation of France during World War II, under the French Decree 2000-657. The determination specifies that these payments are exempt lump sums for the purposes of the Social Security Act 1991, which means that recipients of these payments are not subject to certain social security assessments. This legislation operates on a national level, applying across the Commonwealth of Australia, and there are no stated exclusions, exemptions, or thresholds within the determination itself. However, the determination is made under the authority of the Social Security Act 1991, which may include other provisions that could affect the application of this specific determination. The determination is not extended or restricted by any subordinate instruments mentioned in the text.

Key Provisions

The Social Security Exempt Lump Sum Determination No. 2 of 2002 (the Determination) is made under paragraph 8(11)(d) of the Social Security Act 1991 (the Act) and provides that certain lump sum payments are exempt from being considered as income for social security purposes. Specifically, it designates that payments made by the Dutch-Maror organisation to Jewish survivors of World War II, or to their widows, widowers, or children, as well as lump sum reparations under the French Decree 2000-657 to orphans of persons who died during the anti-Semitic persecutions in France, are exempt lump sums (section 2.1). These payments are exempt from the date they are paid (section 2.2). The Determination imposes certain conditions on the Dutch-Maror organisation and the French Decree 2000-657 regarding the payment of lump sums. Payments made by the Dutch-Maror organisation must be made to Jewish survivors of World War II who resided in The Netherlands during the war or to their widows, widowers, or children if the survivor died after V-E Day (section 2.1(2)-(3)). For payments under the French Decree 2000-657, the recipient must be an orphan child or children who were under the age of 21 at the time of their parent's deportation (section 2.1(5)). These conditions ensure that the lump sums are paid to the intended recipients and are used for the designated purposes. There are no explicit offences, penalties, or consequences for breach outlined in the Determination itself. However, any breach of the terms under which these payments are made could potentially lead to civil or administrative actions under the Social Security Act 1991 or other relevant legislation. The penalties for such breaches would depend on the specific laws and regulations governing the administration of social security benefits and the nature of the breach. The Determination provides a clear framework for the exemption of certain lump sum payments from being considered as income for social security purposes, thereby ensuring that these payments are not adversely affecting the social security entitlements of the recipients. By specifying the conditions under which these lump sums are exempt, it also helps in maintaining the integrity and purpose of the payments made by the Dutch-Maror organisation and under the French Decree 2000-657.