EXPLANATORY STATEMENT
Social Security (Exempt Lump Sum – Redress Payments made by the Anglican Diocese of Brisbane) 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.
This Determination provides that an Anglican Diocese of Brisbane Redress Payment is an exempt lump sum for the purpose of paragraph 8(11)(d) of the Act.
An Anglican Diocese of Brisbane Redress Payment means a payment made by The Corporation of the Synod of the Diocese of Brisbane (ACN 32 025 287 738) under the Anglican Diocese of Brisbane’s current policies for redress payments to persons who were victims of child abuse or sexual misconduct by a church worker in the context of, or related to, their church role.
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.
Commencement
The Determination commences on the day after this instrument is registered on the Federal Register of Legislation.
Consultation
Public consultation was not necessary as this determination was made at the request of the Anglican Church, Diocese of Brisbane.
It will be beneficial to persons affected as it exempts Anglican Diocese of Brisbane Redress Payments made in respect of harm through child sexual abuse by a Church worker from the social security income test.
Similar determinations have been made in the past in respect of other redress payments for abuse suffered as a child.
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.
Explanation of the provisions
Section 1 of the Determination states the name of the Determination.
Section 2 provides that the Determination commences the day after this instrument is registered on the Federal Register of Legislation.
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 an “Anglican Diocese of Brisbane Redress Payment.” This is defined as a payment made by The Corporation of the Synod of the Diocese of Brisbane (ACN 32 025 287 736) under the Anglican Diocese of Brisbane’s current policies for redress payment. These redress payments are one off payments to persons who were victims of child abuse or sexual misconduct by a church worker in the context of, or related to, their church role.
Section 5 specifies that a payment made to a person as an Anglican Diocese of Brisbane Redress 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.
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 – Redress Payments made by the Anglican Diocese of Brisbane) 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 an Anglican Diocese of Brisbane Redress 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 an Anglican Diocese of Brisbane Redress 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 Anglican Diocese of Brisbane Redress 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 Anglican Diocese of Brisbane Redress 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.