Overview

The Social Security Exempt Lump Sum Determination No. 6 of 2004 is a legislative instrument issued under the Social Security Act 1991. It was enacted to address the issue of exempting certain lump sum payments from affecting a person's eligibility for social security benefits. This determination was made by Alex Dolan, Assistant Secretary of the Seniors and Means Test Branch and a delegate of the Secretary of the Department of Family and Community Services. The determination specifies that Employment Assistance Payments received by an individual who is also in receipt of a social security payment are considered exempt lump sums, and therefore do not affect the person's eligibility for further social security benefits. This was enacted to ensure that individuals receiving such payments are not unfairly penalised for receiving assistance through the Employee Assistance component of the Great Barrier Reef Marine Park Structural Adjustment Package.

Scope and Application

The Social Security Exempt Lump Sum Determination No. 6 of 2004 applies to individuals who have received an Employment Assistance Payment and are also in receipt of a social security payment, as defined by the Social Security Act 1991. This determination is a legislative instrument made under the authority of the Act by Alex Dolan, Assistant Secretary, Seniors and Means Test Branch, and a delegate of the Secretary of the Department of Family and Community Services. The determination specifies that any amount received by an eligible person as an Employment Assistance Payment is exempt from being considered as a lump sum for the purposes of social security assessments, effective from the date the amount was received. The scope of this determination is national, aligning with the broad jurisdictional reach of the Social Security Act 1991, and it does not include any stated exclusions, exemptions, or thresholds beyond the conditions specified in the determination itself.

Key Provisions

The Social Security Exempt Lump Sum Determination No. 6 of 2004, made under paragraph 8(11)(d) of the Social Security Act 1991, identifies certain payments as exempt lump sums. Specifically, Section 4(1) of the Determination states that any amount received by an eligible person, who has received an Employment Assistance Payment and is in receipt of a social security payment, is deemed an exempt lump sum. This means that these payments are not considered when assessing eligibility for or the amount of social security benefits. Section 5 clarifies that such amounts are exempt lump sums from the date they are received. The obligations imposed by this Determination on the parties involved are primarily informational and procedural. The Secretary of the Department of Family and Community Services, or their delegate, is tasked with ensuring that eligible individuals are aware of their status and the implications of receiving an Employment Assistance Payment while in receipt of a social security payment. This includes ensuring that these payments are correctly identified and reported. Eligible individuals must also comply with the requirements of the Social Security Act 1991, ensuring they accurately report their income and any payments they receive to maintain their entitlement to social security benefits. Breach of the provisions set out in this Determination could lead to civil or criminal consequences, depending on the nature and intent of the breach. Under the Social Security Act 1991, there are significant penalties for providing false or misleading information, which could be interpreted as a breach of the obligations outlined in this Determination. The maximum penalties for providing false information can include substantial fines and, in some cases, imprisonment. The specific penalties will depend on the circumstances and the severity of the breach, but they can include financial penalties, repayment of any benefits received improperly, and potential legal action.