Social Security Exempt Lump Sum (Fisheries Adjustment Package (Securing Our Fishing Future) 2005) (DEST) Determination 2006

Administered by Department of Social Services

Legislation au F2006L00720 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Department of Education, Science and Training

Social Security Exempt Lump Sum (Fisheries Adjustment Package (Securing Our Fishing Future) 2005) (DEST) Determination 2006

 

Summary

 

Paragraph 8(11)(d) of the Social Security Act 1991 (the Act) allows the Secretaries of the Department of Families, Community Services and Indigenous Affairs, the Department of Employment and Workplace Relations and the Department of Education, Science and Training (DEST) to determine that an amount, or class of amounts, is an exempt lump sum for the purpose of the Act.  This instrument determines that for the purpose of social security payments for which the Minister for Education, Science and Training is responsible, a one-off payment made by the Department of Agriculture, Fisheries and Forestry to persons under the Fisheries Adjustment Package (Securing Our Fishing Future) 2005 is an exempt lump sum under paragraph 8(11)(d) of the Act.

 

The effect of this instrument is that such a one-off payment will not be regarded as income under the Act, so that if a recipient of a DEST administered social security payment receives a payment under the Fisheries Adjustment Package (Securing Our Fishing Future) 2005, it will be exempt from the income test under the social security law.

 

Background

 

Under the social security law all income earned, derived or received for a person’s own use or benefit, is counted as income.  The only exceptions are items specifically exempted under the social security law.  Paragraph 8(11)(d) of the Act allows Secretaries to determine that an amount, or class of amounts, is an “exempt lump sum” for the purposes of the Act.  An exempt lump sum is not included in the definition of “ordinary income” under subsection 8(1) of the Act, so any such amount would not be taken into account under the social security income test.

 

This instrument determines that a one-off payment made by the Fisheries Adjustment Package (Securing Our Fishing Future) 2005 is an exempt lump sum for the purposes of paragraph 8(11)(d).

 

The effect of this instrument is that customers receiving a payment under the Fisheries Adjustment Package (Securing Our Fishing Future) 2005 will not be subject to a reduction in the amount of their DEST administered social security payment, as a result of receiving the payment under the Fisheries Adjustment Package (Securing Our Fishing Future) 2005, and the payment will not be assessed as income under the social security law.

 


Explanation of Provisions

 

Part 1

 

Clause 1 of the instrument states the name of the instrument.

 

Clause 2 states that the instrument commences on 17 March 2006.

 

Clause 3 contains interpretation provisions.  In particular, the term Workers Assistance Grant is defined as a payment made to a person by the Australian Government Department of Agriculture, Fisheries and Forestry under the Fisheries Adjustment Package (Securing Our Fishing Future) 2005 on an ex gratia basis in recognition of that person losing their job as a result of reduced fishing activity.

 

Part 2

 

Subclause 4(1) states that paragraph 8(11)(d) of the Act allows the Secretary to determine that an amount, or class of amounts, received by a person is an exempt lump sum.

 

Subclause 4(2) provides that if a person receives a Workers Assistance Grant from the Australian Government Department of Agriculture, Fisheries and Forestry under the Fisheries Adjustment Package (Securing Our Fishing Future) 2005 and they are also in receipt of a social security payment, then the Workers Assistance Grants received by the person are an exempt lump sum.

 

Clause 5 specifies that Workers Assistance Grants received by a person referred to in subclause 4(2) are an exempt lump sum for the purpose of paragraph 8(11)(d) of the Act.  Such an amount will be regarded as an exempt lump sum from the date that the amount was received by the person, provided that this date is on or after the commencement of this instrument.

 

Consultation

 

The Department of Employment and Workplace Relations and the Department of Families, Community Services and Indigenous Affairs were consulted during the preparation of this determination.  This was done to ensure a co-ordinated and consistent approach to the income test treatment of this one-off payment for all social security payments under the Act.

 

This instrument is beneficial to customers because it exempts from the income test Workers Assistance Grants made by the Department of Agriculture, Fisheries and Forestry.  Public consultation was therefore seen as unnecessary.

 

Overview

The DEST Determination 2006 was enacted to address a specific issue concerning the treatment of one-off payments made under the Fisheries Adjustment Package (Securing Our Fishing Future) 2005 for the purposes of social security income tests. This determination was introduced by the Department of Education, Science and Training (DEST) in conjunction with the Department of Families, Community Services and Indigenous Affairs and the Department of Employment and Workplace Relations, to ensure a coordinated approach to the income test treatment of these payments across various social security schemes. Under the Social Security Act 1991, certain payments can be designated as exempt lump sums, which are not considered as income when assessing eligibility for social security benefits. This instrument specifically designates the one-off payments made by the Department of Agriculture, Fisheries and Forestry to individuals affected by reduced fishing activity as exempt lump sums, thereby preventing these payments from affecting the recipients' social security income assessments.

Scope and Application

The DEST Determination 2006, under the Social Security Act 1991, specifies that one-off payments made by the Department of Agriculture, Fisheries and Forestry to individuals affected by reduced fishing activity, under the Fisheries Adjustment Package (Securing Our Fishing Future) 2005, are exempt lump sums for the purposes of social security administered by the Department of Education, Science and Training. This means that such payments will not be considered as income and therefore will not affect the recipient's eligibility or amount of social security payments. This exemption applies to individuals who are already receiving social security payments and subsequently receive a Workers Assistance Grant. The instrument ensures these payments are not assessed as income under the social security law, thereby protecting the recipients from potential reductions in their social security benefits due to the receipt of the grant. The instrument is applicable nationally and commenced on 17 March 2006, and no public consultation was deemed necessary due to the coordinated approach with other relevant departments.

Key Provisions

The main operative sections of the DEST Determination 2006 (F2006L00720) establish the legal framework for classifying certain payments as exempt lump sums under the Social Security Act 1991. Specifically, clause 4(2) of the instrument stipulates that if a person receives a Workers Assistance Grant from the Australian Government Department of Agriculture, Fisheries and Forestry under the Fisheries Adjustment Package (Securing Our Fishing Future) 2005 and they are also receiving a social security payment, the Workers Assistance Grants they receive are considered exempt lump sums (subclause 4(2)). Clause 5 further clarifies that such Workers Assistance Grants are deemed exempt lump sums for the purposes of paragraph 8(11)(d) of the Act, effective from the date the grant was received, provided this date is on or after the instrument's commencement on 17 March 2006. The DEST Determination 2006 imposes specific obligations on the relevant parties. For the Department of Agriculture, Fisheries and Forestry, it mandates the classification of Workers Assistance Grants as exempt lump sums for individuals receiving these grants and social security payments simultaneously. For recipients, it means they must declare receipt of such grants when applying for or receiving social security benefits. The determination also requires the Department of Education, Science and Training to ensure that these grants do not adversely affect the social security income test for recipients. Breaches of the provisions set out in the DEST Determination 2006 could lead to civil or criminal consequences. While the document does not explicitly detail the penalties for non-compliance, violations of the Social Security Act 1991 generally attract significant penalties. For instance, knowingly making a false statement or providing false information to obtain a benefit could result in civil penalties of up to $8,820 and/or criminal penalties of up to 2 years imprisonment, as per section 115 of the Act. These potential penalties underscore the importance of accurate reporting and compliance with the instrument's stipulations.

Legal classification tags

Area of Law
Social Security Law
Instrument
Regulation
Concepts
Definitions & Interpretation
Exempt Lump Sum
Consultation Requirements

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.