Social Security Exempt Lump Sum (Queensland Government Redress Scheme) (FaCSIA) Determination 2007

Administered by Department of Social Services

Legislation au F2007L03594 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Social Security Exempt Lump Sum (Queensland Government Redress 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 (DEWR) 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 provides that, for the purpose of social security payments for which the Minister for Families, Community Services and Indigenous Affairs is responsible, a ‘first level payment’ and ‘second level payment’ made by the Queensland Government under the scheme known as the Redress Scheme will be exempt lump sums.

 

A first level payment is an initial payment of $7,000.00 made by the Queensland Government under the scheme known as the Redress Scheme. Broadly, such payments are made by the Queensland Government to an individual who:

 

  • was in a Queensland licensed government or non-government institution or detention centre covered by the terms of reference of the Forde Inquiry;
  • on or before 31 December 1999, turned 18 years of age, and was released from an institution or centre; and
  • suffered abuse or neglect while in the care, protection or detention of such an institution or centre.

In addition to the payment of $7,000.00 the Queensland Government has also made available a second payment. This second level payment’ is up to $33,000.00 and is available to an individual who;

  • has been determined as eligible for the first level payment; and
  • can satisfy a three person expert panel established by the Queensland Government that he or she has suffered significant abuse or neglect while in the care, protection or detention of an institution or centre covered by the terms of the reference of the Forde Inquiry.

The Queensland Government will determine who is eligible for a first level payment and a second level payment in accordance with its own criteria, including the criteria noted above. In accordance with the criteria set down by the Queensland Government, the total payment available to an individual under the Redress Scheme is $40,000.00 (inclusive of first and second level payments).

This instrument determines that a payment made by the Queensland Government under the Redress Scheme (being either a first or a second level payment) to a person or their partner is an exempt lump sum under paragraph 8(11)(d) of the Act.  These payments are designed to acknowledge the impact of past institutional abuse and neglect and to provide opportunities for the recipients’ future.  Neither the first level payment nor the second level payment represents receipt of money for services rendered directly or indirectly.

Background

 

The Queensland Government Redress Scheme was announced on 31 May 2007 in response to the Forde Inquiry, commissioned by the Queensland Government in 1998-1999, to investigate the treatment of children in licensed government and non-government institutions in Queensland. The terms of reference of the inquiry covered 159 institutions during the period 1911 to 1999 and excluded foster care and institutions providing care for children with disabilities or those suffering from acute or chronic health problems.  The Redress Scheme will provide ex-gratia payments from 1 October 2007 to eligible individuals.  It is estimated that there are approximately 6,000 individuals who may be eligible to apply for payments under the Redress Scheme.

 

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 the responsible Secretary 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 first level payment and a second level payment made by the Queensland Government under the scheme known as the Redress Scheme is an exempt lump sum for the purposes of paragraph 8(11)(d) of the Act.

 

The effect of this instrument is that a first level payment and a second level payment made by the Queensland Government under the scheme known as the Redress Scheme will not be regarded as income under the Act. Consequently, if a person or their partner receives a FaCSIA administered social security payment and receives a first level payment or a second level payment made by the Queensland Government under the scheme known as the Redress Scheme, it will be exempt from the income test 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 the day after the day on which it is registered with the Federal Register of Legislative Instruments.

 

Section 3 contains interpretation provisions.

 

The term first level payment is defined as a one-off payment of $7,000.00 made by the Queensland Government under the scheme known as the Redress Scheme. The criteria and eligibility are determined by the Queensland Government.

The term second level payment is defined as a payment of up to $33,000.00 made by the Queensland Government under the scheme known as the Redress Scheme.  This second level payment may be made in addition to a first level payment and only if a person is eligible to receive a first level payment. As is the case with the first level payment, the criteria and eligibility are determined by the Queensland Government.

The total payment made to a person under the scheme known as the Redress Scheme is $40,000.00 (inclusive of the first and second level payments).

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 first level payment as defined in section 3, then any amount of such a payment received by the person is an exempt lump sum.

 

Subsection 4(3) provides that if a person receives a second level payment, as defined in section 3, then any amount of such a payment received by the person is an exempt lump sum.

 

Section 5 specifies that a first level payment received by a person referred to in subsection 4(2) or a second level payment received by a person referred to in subsection 4(3) will be regarded as an exempt lump sum from the date that the amount was received by the person, provided that 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 income support customers because it exempts from the income test a payment made by the Queensland Government under the scheme known as the Redress Scheme.  Public consultation was therefore seen as unnecessary.

 

Regulatory Impact Analysis

 

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 (Queensland Government Redress Scheme) (FaCSIA) Determination 2007 was enacted to address the specific issue of exempting certain payments from the income test under the Social Security Act 1991 for individuals who have suffered abuse or neglect in Queensland institutions. This instrument was created by the Secretary of the Department of Families, Community Services and Indigenous Affairs, in consultation with the Departments of Employment and Workplace Relations and Education, Science and Training, to ensure a consistent approach to the income test treatment of these payments. The policy objective of this determination is to provide financial redress to victims of institutional abuse in Queensland without impacting their eligibility for social security payments. The determination specifies that first and second level payments made by the Queensland Government under the Redress Scheme are exempt lump sums, meaning they will not be considered income for the purposes of social security payments. This is intended to acknowledge the impact of past abuse and neglect and to provide support for the recipients’ future. The determination outlines the criteria for these payments, including eligibility based on age and residency in specific institutions, and confirms that these payments are not considered income for social security purposes, thus ensuring that recipients' eligibility for social security benefits is not adversely affected by receiving these payments.

Scope and Application

The Social Security Exempt Lump Sum (Queensland Government Redress Scheme) (FaCSIA) Determination 2007 applies to individuals who were in Queensland licensed government or non-government institutions or detention centres, who turned 18 years of age on or before 31 December 1999, were released from such institutions or centres, and suffered abuse or neglect while in the care, protection or detention of these institutions or centres. The Act classifies the 'first level payment' of $7,000.00 and the'second level payment' of up to $33,000.00, made by the Queensland Government under the Redress Scheme, as exempt lump sums for the purposes of social security payments administered by the Minister for Families, Community Services and Indigenous Affairs. This means that these payments are exempt from the income test under the Social Security Act 1991. The Queensland Government determines eligibility for these payments based on its own criteria. The instrument, which comes into effect from the date of its registration, provides that such payments will not be regarded as income and thus will not impact eligibility for FaCSIA administered social security payments. This determination extends the application of the Social Security Act to include these specific lump sum payments, ensuring they do not affect social security income assessments.

Key Provisions

The key provisions of the Social Security Exempt Lump Sum (Queensland Government Redress Scheme) (FaCSIA) Determination 2007 (Section 4(2) and Section 4(3)) specify that payments made under the Queensland Government Redress Scheme, specifically the first level payment of $7,000 and the second level payment of up to $33,000, are exempt lump sums for the purposes of the Social Security Act 1991. This means that these payments do not count as income when assessing eligibility for social security benefits. The determination ensures that individuals who receive these payments will not have their social security payments adversely affected by these lump sums. The obligations under this Act fall primarily on the Queensland Government, which is responsible for determining eligibility for the first level and second level payments based on its own criteria. These criteria include being in a Queensland licensed government or non-government institution or detention centre covered by the Forde Inquiry, turning 18 years of age and being released from such an institution or centre on or before 31 December 1999, and suffering abuse or neglect. For the second level payment, additional verification by a three-person expert panel is required to confirm significant abuse or neglect. The Act does not impose direct obligations on social security recipients beyond the requirement to report these payments accurately when applying for or receiving social security benefits. Regarding consequences for non-compliance, the Act does not explicitly outline specific offences or penalties for breaching the terms of the exempt lump sum determination. However, if an individual fails to report these payments correctly when applying for social security benefits, they could potentially be subject to the general penalties for misrepresentation or non-disclosure under the Social Security Act 1991. These penalties can include fines, recovery of benefits, and in severe cases, criminal charges. The maximum penalties for such offences can vary, but they are generally commensurate with the severity of the breach and can include substantial fines and, in some instances, imprisonment.

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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.