Overview

The Social Security Exempt Lump Sum Determination No. 8 of 2004 is a legislative instrument made under the Social Security Act 1991, enacted to address a specific gap in the social security system concerning lump sums received by individuals who were victims of child abuse while in Tasmanian State care. This determination was made by Alex Dolan, an Assistant Secretary and a delegate of the Secretary of the Department of Family and Community Services, and it came into effect on the date it was signed. The primary objective of this determination is to ensure that compensation payments made by the Tasmanian State Government for child abuse experienced in State care do not affect the social security payments of the recipients. This legislative instrument provides clarity and protection for those who have been adversely affected by their time in State care, ensuring that their compensation does not inadvertently impact their eligibility for social security benefits.

Scope and Application

The Social Security Exempt Lump Sum Determination No. 8 of 2004 applies to individuals who have received compensation payments from the State Government of Tasmania for child abuse suffered while in Tasmanian State care, and who are also receiving social security payments. This determination is made under the Social Security Act 1991 and outlines that such compensation payments are considered exempt lump sums for the purposes of social security assessments. The application of this determination is specifically confined to Tasmania, as it pertains to compensation payments made by the Tasmanian State Government. The determination commences on the date it is signed and provides that the specified compensation payments are exempt from being considered as assessable income for social security purposes. Any exclusions, exemptions, or thresholds are not explicitly stated in this determination, which leaves room for further clarification through subordinate instruments or subsequent legislative amendments.

Key Provisions

The Social Security Exempt Lump Sum Determination No. 8 of 2004 outlines specific provisions related to the exemption of certain lump sums from social security payments. Under section 4(1), the Secretary of the Department of Family and Community Services has the authority to determine that an amount or class of amounts received by a person qualifies as an exempt lump sum. The determination specifies that if a person has received a compensation payment due to child abuse suffered while in Tasmanian State care, and is currently receiving a social security payment, then the compensation payment is considered an exempt lump sum (section 4(2)). This exempt lump sum applies from the date the amount was received (section 5). The determination imposes specific obligations on the parties involved. For the compensation payment to qualify as an exempt lump sum, it must be an ex gratia payment made by the Tasmanian State Government, and the recipient must be in receipt of a social security payment. The definition of "Tasmanian State care" in section 3 includes care administered or funded by the Tasmanian State Government. These conditions ensure that the lump sum is specifically related to child abuse in State care and that the recipient is already receiving social security benefits. Breaches of the conditions outlined in the determination may lead to legal consequences. While the determination itself does not explicitly state penalties for non-compliance, failure to adhere to the specified criteria for an exempt lump sum could result in the compensation payment being considered as assessable income for social security purposes. This could potentially lead to a reassessment of social security payments, with possible financial implications for the recipient. The Social Security Act 1991, under which this determination is made, includes provisions for penalties and enforcement mechanisms that could be applied in the event of non-compliance, although these are not detailed in the determination itself.