Social Security Exempt Lump Sum (Pastoral Care and Assistance Scheme Payment) (DEST) Determination 2007

Administered by Department of Social Services

Legislation au F2007L00872 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Department of Education, Science and Training

 

Social Security Exempt Lump Sum (Pastoral Care and Assistance Scheme) (DEST) Determination 2007

 

Summary

 

Paragraph 8(11)(d) of the Social Security Act 1991 (the Act) allows the Secretaries of the Department of Education, Science and Training (DEST), the Department of Employment and Workplace Relations and the Department of Families, Community Services and Indigenous Affairs 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 Anglican Church or by ANGLICARE Sydney to persons under the Pastoral Care and Assistance Scheme 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 Pastoral Care and Assistance Scheme, 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 Anglican Church or ANGLICARE Sydney under the Pastoral Care and Assistance Scheme 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 Pastoral Care and Assistance Program will not be assessed as income under the social security law.  Therefore, these customers 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 Pastoral Care and Assistance Program.

 


Explanation of Provisions

 

Part 1

 

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

 

Section 2 states that the instrument is to have a retrospective commencement date of 13 weeks prior to the date of registration.  It is possible that persons who have received a payment under the Pastoral Care and Assistance Scheme have had their social security payments reduced because payment under the Pastoral Care and Assistance Scheme has been assessed as income. 

 

Under the social security law, a determination to increase a person’s rate of payment may, in certain circumstances, be backdated up to 13 weeks before the date of the determination.  The retrospective commencement date of this instrument recognises that this backdating may occur, enabling a customer to receive their entitlements in line with the changes made by this instrument.

 

The retrospective commencement is proposed as a beneficial measure and therefore the rights and liabilities of persons are not disadvantaged for the purposes of subsection 12(2) of the Legislative Instruments Act 2003..

 

Section 3 contains interpretation provisions.  In particular, the term Pastoral Care and Assistance Scheme Payment is defined as a payment made under the Pastoral Care and Assistance Scheme Anglican Church Diocese of Sydney and ANGLICARE Diocese of Sydney to a person by the Anglican Church or ANGLICARE Sydney in recognition of moderate or severe psychological damage to the person resulting from child abuse or sexual misconduct by a church worker.

 

Part 2

 

Subsection 4(1) states that paragraph 8(11)(d) of the Act allows the relevant 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 Pastoral Care and Assistance Scheme Payment and they are also in receipt of a social security payment, then the Pastoral Care and Assistance Scheme Payment received by the person is an exempt lump sum.

 

Section 5 specifies that a Pastoral Care and Assistance Scheme Payment received by a person referred to in subsection 4(2) will be regarded as an exempt lump sum from the date that the amount was received by the person, so long as this amount was received within 13 weeks of registration of this instrument or after the date of registration 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 the Pastoral Care and Assistance Scheme payments made by the Anglican Church or ANGLICARE  Sydney.  Public consultation was therefore seen as unnecessary.

 

Business Cost Calculator

This exemption does not require a Regulatory Impact Statement (RIS) and/or a Business Cost Calculator Figure.  This exemption is not regulatory in nature, will not impact on business activity and will have no, or minimal, compliance costs or competition impact.  It is not expected that any compliance costs will be incurred by business (against the nine categories listed) as a result of this exemption.

Overview

The Social Security Exempt Lump Sum (Pastoral Care and Assistance Scheme) (DEST) Determination 2007 was enacted by the Department of Education, Science and Training to address a gap in the Social Security Act 1991. The determination was made under paragraph 8(11)(d) of the Act, which allows the Secretaries of relevant departments to specify amounts that qualify as exempt lump sums, thereby excluding them from the income test for social security payments. This legislative instrument was designed to ensure that one-off payments made by the Anglican Church or ANGLICARE Sydney under the Pastoral Care and Assistance Scheme do not affect the income assessment for social security recipients. By exempting these payments from the income test, the legislation aims to prevent a reduction in social security payments for individuals who receive support under the Pastoral Care and Assistance Scheme, thus providing them with financial relief without penalising their social security entitlements. The determination was made in consultation with other relevant departments to ensure consistency in the application of the income test across different social security payments.

Scope and Application

The Social Security Exempt Lump Sum (Pastoral Care and Assistance Scheme) (DEST) Determination 2007 applies to payments made by the Anglican Church or ANGLICARE Sydney to individuals under the Pastoral Care and Assistance Scheme, which provides support to those affected by abuse or misconduct by church workers. These payments are designated as exempt lump sums for the purpose of social security law, meaning they will not be considered as income and thus will not affect the recipients' eligibility or amount of social security payments administered by the Department of Education, Science and Training. The application of this determination is retrospective, covering payments received within 13 weeks prior to the instrument's registration, ensuring that any reductions in social security payments due to misclassification of these payments can be rectified. This legislative instrument is a specific application of the broader powers granted under the Social Security Act 1991, ensuring a coordinated approach in the treatment of these payments across various social security programs.

Key Provisions

The main sections of the Social Security Exempt Lump Sum (Pastoral Care and Assistance Scheme) (DEST) Determination 2007 (the Determination) include Section 4, which allows the Secretary to determine that an amount, or class of amounts, received by a person is an exempt lump sum (subsection 4(1)). Subsection 4(2) specifies that if a person receives a Pastoral Care and Assistance Scheme Payment and they are also receiving a social security payment, then the Pastoral Care and Assistance Scheme Payment is considered an exempt lump sum. This is further clarified in Section 5, which states that a Pastoral Care and Assistance Scheme Payment will be treated as an exempt lump sum from the date it was received, provided it was received within 13 weeks of the registration of this instrument or after its registration date. The Determination imposes obligations on the relevant parties, specifically the Secretaries of the Department of Education, Science and Training, the Department of Employment and Workplace Relations, and the Department of Families, Community Services and Indigenous Affairs. The primary obligation is to recognise that one-off payments made by the Anglican Church or ANGLICARE Sydney under the Pastoral Care and Assistance Scheme are exempt lump sums, as defined in the instrument. This means these payments are not to be considered income for the purposes of social security assessments, thereby protecting the recipients' social security entitlements. The Determination also outlines consequences for non-compliance, though it is noted that this exemption does not require a Regulatory Impact Statement or a Business Cost Calculator. The Determination states that the exemption is not regulatory in nature and will not impact business activity, compliance costs, or competition. No specific offences or penalties are mentioned for breach, but the retrospective commencement date is designed to ensure that any prior reductions in social security payments due to incorrectly assessed income are rectified, thereby protecting the rights of the recipients. Overall, the Determination aims to ensure that recipients of pastoral care and assistance payments from the Anglican Church or ANGLICARE Sydney do not face reductions in their social security payments, thereby providing a clear and beneficial outcome for those affected by the scheme. This is achieved by legally classifying these payments as exempt lump sums under the Social Security Act 1991.

Legal classification tags

Area of Law
Social Security Law
Instrument
Regulation
Concepts
Definitions & Interpretation
Commencement Provisions
Offence Provisions

Interactions

Authorises

All Versions

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.