Overview

The Social Security Exempt Lump Sum Determination No. 4 of 2004 was enacted to address a specific issue concerning compensation payments made due to administrative errors by Centrelink or in lieu of amounts paid under the Social Security Act 1991 or the A New Tax System (Family Assistance) Act 1999. This legislative instrument was issued by Alex Dolan, an Assistant Secretary and delegate of the Secretary of the Department of Family and Community Services, under the authority granted by paragraph 8(11)(d) of the Social Security Act 1991. The determination aims to ensure that individuals receiving social security payments and subsequently receiving compensation payments for administrative errors or in lieu of amounts under specified laws are not adversely affected by these payments in terms of their social security entitlements. The policy objective is to provide clarity and protection to beneficiaries by exempting certain lump sum payments from affecting their social security benefits.

Scope and Application

The Social Security Exempt Lump Sum Determination No. 4 of 2004 applies to individuals who have received a compensation payment and are in receipt of a social security payment. This determination is made under the authority of the Social Security Act 1991, specifically paragraph 8(11)(d), by the Assistant Secretary of the Seniors and Means Test Branch, a delegate of the Secretary of the Department of Family and Community Services. The compensation payment in question must be one that has been made to reimburse expenses due to an administrative error by Centrelink or in lieu of an amount paid under the Act or the Family Assistance law. Any such compensation payment received by a person who is also receiving a social security payment qualifies as an exempt lump sum from the date it was received. This determination extends to the entire Commonwealth of Australia and applies to any relevant compensation payments made after its commencement date. There are no stated exclusions, exemptions, or thresholds in this determination, and it is not extended or restricted through subordinate instruments.

Key Provisions

The Social Security Exempt Lump Sum Determination No. 4 of 2004 (the Determination) operates under the Social Security Act 1991, specifically pursuant to paragraph 8(11)(d) of the Act. It was made by Alex Dolan, Assistant Secretary, Seniors and Means Test Branch and a delegate of the Secretary of the Department of Family and Community Services, dated 15 July 2004. This Determination clarifies that certain compensation payments are considered exempt lump sums. Section 4 of the Determination specifies the circumstances under which an amount or class of amounts is considered an exempt lump sum. According to section 4(2), if a person receives a compensation payment that reimburses expenses incurred due to an administrative error made by Centrelink or is paid in lieu of an amount under the Social Security Act 1991 or the Family Assistance law, and the person is also receiving a social security payment, then the compensation payment qualifies as an exempt lump sum. This classification applies from the date the compensation payment is received. The Determination imposes obligations on the parties involved, particularly Centrelink and the recipients of compensation payments. Centrelink is responsible for ensuring that the compensation payments meet the criteria outlined in the Determination. Recipients, on the other hand, must be aware that if their compensation payment fits the criteria, it will be treated as an exempt lump sum for social security purposes. This means that such payments will not affect their eligibility for social security benefits. There are no explicit offences, penalties, or consequences for breaches of the Determination outlined within the text itself. However, breaches of the Social Security Act 1991 in general may lead to civil or criminal penalties. For example, providing false or misleading information to obtain a social security payment can result in fines or imprisonment, depending on the severity of the breach. The penalties for such breaches are determined under the Social Security Act 1991, which includes both civil and criminal sanctions, including fines and imprisonment terms as prescribed by the relevant sections of the Act.