EXPLANATORY STATEMENT
Social Security (Exempt Lump Sum – Queensland Taxi Industry Hardship Assistance Payment) Determination 2017
Summary
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 Social Security Act 1991 (the Act) allows the Secretary of the Department of Social Services (DSS) to determine that an amount or class of amounts received by a person 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.
In March 2017, the Queensland Government amended the Taxi and Limousine Industry Assistance Scheme Regulation 2016 (the Regulation). The Regulation provides for a one-off lump sum payment made under the second part of the Queensland Government's Industry Adjustment Assistance Package (IAAP), the Industry Hardship Assistance Scheme, to holders and/or operators of a taxi or limousine service licence who are experiencing hardship as a result of structural changes in the taxi service industry and limousine service industry.
The Industry Hardship Assistance Scheme is administered by the Queensland Government Department of Transport and Main Roads. To assist taxi and limousine service licences apply for assistance under this Scheme, the Queensland Government’s Industry Hardship Assistance Scheme Guidelines (the Guidelines) provide guidance on eligibility for the Scheme, including a listing of the amounts that are available to each applicant for a Queensland Taxi Industry Hardship Assistance Payment.
This Determination provides that a Queensland Taxi Industry Hardship Assistance Payment is an exempt lump sum for the purpose of paragraph 8(11)(d) of the Act.
The effect of this Determination is such that a payment will not be regarded as income under the Act, so that if a social security recipient receives such a payment, it will be exempt from the social security income test.
Explanation of the provisions
Section 1 of the Determination states the name of the Determination.
Section 2 provides that the Determination commences on 24 April 2017.
Although the Determination has retrospective application, the Determination is beneficial in nature and does not impose any liabilities or disadvantage the rights of a person who applies for a Queensland Taxi Industry Hardship Assistance Payment.
Section 3 provides that the authority for making this Determination is paragraph 8(11)(d) of the Social Security Act 1991.
Section 4 contains definitions of certain terms used in the Determination, including the definition of a Queensland Taxi Industry Hardship Assistance Payment. This is defined as a payment made by the Queensland Government under the Taxi and Limousine Industry Assistance Scheme Regulation 2016 (Qld). These payments are one off payments to holders and/or operators of a taxi or limousine service licence who are experiencing hardship as a result of structural changes in the taxi service industry and limousine service industry. For the holder and/or operator of more than one licence, the payment is capped at a maximum of 10 licences.
Section 5 specifies that a payment made to a person as a Queensland Taxi Industry Hardship Assistance Payment is an exempt lump sum for the purposes of paragraph 8(11)(d) of the Social Security Act 1991. Such an amount will be regarded as an exempt lump sum from the date the payment is received by the person.
Consultation
This determination was made at the request of the Queensland Government Department of Transport and Main Roads. The Department of Veterans’ Affairs and Department of Agriculture and Water Resources have also been consulted.
This Determination will be beneficial to persons affected as it exempts a Queensland Taxi Industry Hardship Assistance Payment from the social security income test. As a result, public consultation was considered unnecessary.
Regulation Impact Statement (RIS)
The Determination does not require a Regulatory Impact Statement. The Determination is not regulatory in nature, will not impact on business activity and will have no, or minimal, compliance costs or competition impact.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Social Security (Exempt Lump Sum – Queensland Taxi Industry Hardship Assistance Payment) Determination 2017
The Determination is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
The effect of the Determination is that a person who receives a Queensland Taxi Industry Hardship Assistance Payment will not have that payment assessed as income under the social security law.
Human rights implications
The Determination engages the right to social security under Article 9 of the International Covenant on Economic, Social and Cultural Rights (ICESCR). The right to social security requires that a system be established under domestic law, and that public authorities must take responsibility for the effective administration of the system. The social security scheme must provide a minimum essential level of benefits to all individuals and families that will enable them to acquire at least essential health care, basic shelter and housing, water and sanitation, foodstuffs, and the most basic forms of education.
The Determination will operate beneficially as a Queensland Taxi Industry Hardship Assistance Payment will not be taken into account when assessing a person’s eligibility or rate of social security entitlements under the social security income test. If the Queensland Taxi Industry Hardship Assistance Payment is not exempted, a person in receipt of that payment may not be eligible for a social security payment or, if they are eligible, their rate of payment might be reduced. The Determination is therefore consistent with the promotion of the right to social security.
The exemption of the Queensland Taxi Industry Hardship Assistance Payment from the income test does not mean that any ongoing income generated by the lump sum is exempt from the income test, nor does it mean that any asset produced from the lump sum is exempt from the social security assets test. This is consistent with the treatment of other lump sum payments exempted under paragraph 8(11)(d) of the Act.
Conclusion
The Determination supports a person’s human right to social security and is compatible with human rights as they do not raise any human rights issues.
Anita Davis, Acting Branch Manager, International and Means Test Policy Branch, as a delegate of the Secretary of the Department of Social Services.