Overview

The Social Security Exempt Lump Sum (Exceptional Circumstances Exit Grant) (FaHCSIA) Determination 2008 was enacted to address a specific issue concerning lump sum payments received by certain individuals under the Exceptional Circumstances Exit Package 2007, administered by the Department of Agriculture, Fisheries and Forestry. This determination was made under the authority of paragraph 8(11)(d) of the Social Security Act 1991 by Alanna Foster, Branch Manager of the Seniors and Means Test Branch and a delegate of the Secretary of the Department of Families, Housing, Community Services and Indigenous Affairs. The policy objective of this determination is to ensure that certain lump sum payments do not affect a person's eligibility for social security benefits. This Determination came into effect on the day after it was registered, providing clarity on the treatment of these payments for social security purposes.

Scope and Application

This Determination, made under the Social Security Act 1991, is the Social Security Exempt Lump Sum (Exceptional Circumstances Exit Grant) (FaHCSIA) Determination 2008, which came into effect the day after its registration. It provides that an Exit Payment, defined as a one-off Exceptional Circumstances Exit Grant Payment of up to $150,000.00 made by the Commonwealth Government Department of Agriculture, Fisheries and Forestry under the Exceptional Circumstances Exit Package 2007 to a person, qualifies as an exempt lump sum under the Act. This applies to any individual who receives such a payment on or after the Determination's commencement date, rendering the received amount exempt from certain social security assessments and obligations as outlined in the Act. The scope of this Determination is confined to the social security provisions managed by the Minister for Families, Housing, Community Services and Indigenous Affairs, as per the Administrative Arrangements Order.

Key Provisions

The Social Security Exempt Lump Sum (Exceptional Circumstances Exit Grant) (FaHCSIA) Determination 2008 primarily operates under the Social Security Act 1991 to classify a specific payment as an exempt lump sum. Specifically, section 4(1) states that any amount received as an Exit Payment, which is defined as a one-off Exceptional Circumstances Exit Grant Payment of up to $150,000.00 made by the Commonwealth Government Department of Agriculture, Fisheries and Forestry, qualifies as an exempt lump sum under section 8(11)(d) of the Act. Section 5 further clarifies that any amount received on or after the commencement of this Determination by a person eligible under subsection 4(2) is deemed an exempt lump sum for the purposes of the Act. Under this Determination, the obligations imposed on the relevant parties include ensuring that any Exit Payment received qualifies as an exempt lump sum, thus exempting it from certain social security assessments and implications. This means that the recipients of such payments are not required to report these payments in their social security assessments, thereby avoiding potential reductions or interruptions in their social security benefits. The Department of Agriculture, Fisheries and Forestry is also responsible for ensuring that the payments are made in compliance with the criteria set out in the Determination. In terms of penalties and consequences for breach, the Determination itself does not explicitly outline specific offences or penalties for non-compliance. However, under the broader framework of the Social Security Act 1991, failure to comply with the provisions of the Act, including the requirements set out in this Determination, could result in various civil or criminal penalties. These might include fines, recovery of payments, and other legal actions as determined by the relevant authorities. The maximum penalties would depend on the nature and severity of the breach, as outlined in the Social Security Act 1991.