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

Administered by Department of Social Services

Legislation au F2006L00713 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Department of Families, Community Services and Indigenous Affairs

 

Social Security Exempt Lump Sum (Fisheries Adjustment Package (Securing Our Fishing Future) 2005) (FaCSIA) 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 (FaCSIA), the Department of Employment and Workplace Relations and the Department of Education, Science and Training 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 Families, Community Services and Indigenous Affairs 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 FaCSIA 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 FaCSIA administered social security payment, as a result of receiving the payment under the Fisheries Adjustment Package (Securing Our Fishing Future) 2005, and the payment under the Fisheries Adjustment Package (Securing Our Fishing Future) 2005 will not be assessed as income under the social security law.

 


Explanation of Provisions

 

Part 1

 

Section 1 of the instrument states the name of the instrument.

 

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

 

Section 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

 

Subsection 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.

 

Subsection 4(2) provides that if a person receives a Workers Assistance Grant from the Commonwealth 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.

 

Section 5 specifies that Workers Assistance Grants received by a person referred to in subsection 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 Education, Science and Training 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 Social Security Exempt Lump Sum (Fisheries Adjustment Package (Securing Our Fishing Future) 2005) (FaCSIA) Determination 2006, enacted by the Department of Families, Community Services and Indigenous Affairs, addresses the problem of ensuring that specific payments made to individuals affected by reduced fishing activity are not counted as income for the purposes of social security assessments. This instrument was introduced to ensure that individuals receiving a one-off payment under the Fisheries Adjustment Package (Securing Our Fishing Future) 2005 do not experience a reduction in their social security payments due to this additional income. The policy objective is to exempt these payments from the income test, thereby providing financial relief to those who have lost their jobs as a result of the fishing industry's downturn without penalising them through a reduction in social security benefits.

Scope and Application

The Social Security Exempt Lump Sum (Fisheries Adjustment Package (Securing Our Fishing Future) 2005) (FaCSIA) Determination 2006 applies to individuals who receive a Workers Assistance Grant from the Department of Agriculture, Fisheries and Forestry under the Fisheries Adjustment Package (Securing Our Fishing Future) 2005 and are also recipients of a FaCSIA administered social security payment. This instrument ensures that the one-off payment made under the Fisheries Adjustment Package is exempt from being considered income for the purposes of the Social Security Act 1991, thereby preventing any reduction in social security payments due to this receipt. The Act extends across the Commonwealth of Australia and is effective from 17 March 2006. While no specific exclusions or exemptions are mentioned beyond the defined scope of the grant, the application of the determination is subject to the conditions set out in the instrument and does not extend to any other types of payments or circumstances outside the Fisheries Adjustment Package.

Key Provisions

The main operative sections of this instrument are sections 4 and 5, which respectively determine that a Workers Assistance Grant received by a person is an exempt lump sum under the Social Security Act 1991 (the Act) and specify the conditions under which such a grant is considered exempt. Section 4(2) provides that if a person receives a Workers Assistance Grant from the Commonwealth 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. Section 5 clarifies that these grants are exempt for the purpose of paragraph 8(11)(d) of the Act and specifies that the exemption applies from the date the amount was received, provided that this date is on or after the commencement of this instrument. The Act imposes several obligations and requirements on the parties it governs. Firstly, it requires the Secretary to determine that a Workers Assistance Grant is an exempt lump sum under the Act. This determination is made if the person receiving the grant is also in receipt of a social security payment. Secondly, it mandates that these grants are exempt for the purpose of the income test under the Act. This means that the grants are not considered income for the purposes of assessing eligibility for social security benefits. Lastly, it specifies that the exemption applies from the date the grant was received, provided this date is on or after the commencement of this instrument. There are no specific offences, penalties, or civil/criminal consequences for breach outlined in this instrument. However, non-compliance with the determination that a Workers Assistance Grant is an exempt lump sum could potentially lead to incorrect assessments of social security payments. This could result in either overpayments or underpayments of social security benefits, which may have financial implications for the affected individuals and could potentially lead to administrative reviews or audits by the Department of Families, Community Services and Indigenous Affairs (FaCSIA). It is important for all parties to adhere to the provisions of this instrument to ensure that social security payments are accurately assessed and administered.

Legal classification tags

Area of Law
Social Security Law
Instrument
Regulation
Concepts
Definitions & Interpretation
Exempt Lump Sum
Social Security Act 1991

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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.