EXPLANATORY STATEMENT
Department of Families, Community Services and Indigenous Affairs
Social Security Exempt Lump Sum (Pastoral Care and Assistance Scheme) (FaCSIA) Determination 2007
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 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 FaCSIA 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) of the Act.
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 FaCSIA-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 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 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 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.