Social Security Exempt Lump Sum (Remote Area Family Day Care Start Up Payment) (FaCSIA) Determination 2007

Administered by Department of Social Services

Legislation au F2007L02321 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

 

Social Security Exempt Lump Sum (Remote Area Family Day Care Start Up Payment) (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 determines that, for the purpose of social security payments for which the Minister for Families, Community Services and Indigenous Affairs is responsible, a Remote Area Family Day Care Start Up Payment (a one-off payment of up to a maximum of $5,000.00 per recipient) made on behalf of the Commonwealth by FaCSIA to persons under the 2007-08 Federal Budget Child Care Investment measure is an exempt lump sum under paragraph 8(11)(d) of the Act.

 

The effect of this instrument is that a Remote Area Family Day Care Start Up Payment under the 2007-08 Federal Budget Child Care Investment measure will not be regarded as income under the Act.  Consequently, if a recipient of a FaCSIA administered social security payment or their partner receives a Remote Area Family Day Care Start Up Payment under the 2007-08 Federal Budget Child Care Investment measure 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 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 Remote Area Family Day Care Start Up Payment   under the 2007-08 Federal Budget Child Care Investment measure is an exempt lump sum for the purposes of paragraph 8(11)(d) of the Act.

 

The effect of this instrument is that for customers or their partners who receive a Remote Area Family Day Care Start Up Payment under the 2007-08 Federal Budget Child Care Investment measure, the payment will not be assessed as income under the social security law.  Accordingly, customers or their partners receiving this payment will not be subject to a reduction in the amount of their FaCSIA administered social security payment as a result of receiving a Remote Area Family Day Care Start Up Payment under the 2007-08 Federal Budget Child Care Investment measure.

 

 


Explanation of Provisions

Part 1

 

Section 1 of the determination states the name of the determination.

 

Section 2 states that the determination commences on the day after the day on which it is registered with the Federal Register of Legislative Instruments.

 

Section 3 contains interpretation provisions. 

In particular, the term Remote Area Family Day Care Start Up Payment is defined as a payment (of up to a maximum amount of $5,000.00) made to a person on behalf of the Commonwealth, by the Department of Families, Community Services and Indigenous Affairs (FaCSIA) under the 2007-08 Federal Budget Child Care Investment measure, in order to assist the recipient to undertake required changes to their home or its immediate surrounds in order for them to provide quality child care.

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 Remote Area Family Day Care Start Up Payment from FaCSIA under the 2007-08 Federal Budget Child Care Investment measure, for the purposes of the Act, this amount is an exempt lump sum.

 

Section 5 specifies that a Remote Area Family Day Care Start Up Payment under the 2007-08 Federal Budget Child Care Investment measure 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 provided that date is on or after the commencement of this determination.

 

Consultation

DEWR and DEST 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 a Remote Area Family Day Care Start Up Payment under the 2007-08 Federal Budget Child Care Investment measure made by FaCSIA.  Public consultation was therefore seen as unnecessary.

 

Business Cost Calculator Figure

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 (Remote Area Family Day Care Start Up Payment) (FaCSIA) Determination 2007 was enacted to address a specific gap in the Social Security Act 1991, which generally requires all income to be counted for social security purposes. This Determination, made under the authority of the Social Security Act 1991, was introduced to ensure that a one-off Remote Area Family Day Care Start Up Payment of up to $5,000.00 made by the Department of Families, Community Services and Indigenous Affairs (FaCSIA) to assist with home modifications for providing quality child care in remote areas, would not be considered income for social security purposes. This was necessary to prevent the income test from adversely affecting the eligibility or amount of social security payments for recipients or their partners. The policy objective is to provide financial support to remote area family day care providers without impacting their social security benefits. The instrument was developed in consultation with relevant departments to ensure consistency in the application of the income test across all social security payments.

Scope and Application

The Social Security Exempt Lump Sum (Remote Area Family Day Care Start Up Payment) (FaCSIA) Determination 2007 applies to individuals who receive a Remote Area Family Day Care Start Up Payment from the Department of Families, Community Services and Indigenous Affairs (FaCSIA) under the 2007-08 Federal Budget Child Care Investment measure. This legislation is intended to assist recipients in making necessary home modifications to provide quality child care. The determination applies across the Commonwealth, affecting those who receive the specified payment and their partners, ensuring that such payments do not reduce their social security benefits. It is limited to the specific one-off payment of up to $5,000, ensuring it does not affect other forms of income or payments. The instrument is effective from the date it is registered and does not require consultation beyond the departments involved as it is not expected to impose significant compliance costs or regulatory burdens on businesses.

Key Provisions

The main operative sections of the Social Security Exempt Lump Sum (Remote Area Family Day Care Start Up Payment) (FaCSIA) Determination 2007 include sections 4(1) and 4(2). Section 4(1) explains that the Secretary of the Department of Families, Community Services and Indigenous Affairs (FaCSIA) can determine that a certain amount or class of amounts is an exempt lump sum under the Social Security Act 1991. Section 4(2) specifies that a Remote Area Family Day Care Start Up Payment made by FaCSIA under the 2007-08 Federal Budget Child Care Investment measure is considered an exempt lump sum for the purposes of the Act. These sections provide a clear framework for the treatment of these payments under social security law. The Act imposes specific obligations on the parties involved. The Secretary of FaCSIA must ensure that a Remote Area Family Day Care Start Up Payment is treated as an exempt lump sum, meaning it does not count as income for social security purposes. Recipients of these payments must not include them in their income for social security assessments. Additionally, the Act mandates that the payment must be received on or after the commencement date of the determination for it to be considered an exempt lump sum. There are no specific offences, penalties, or civil/criminal consequences outlined for breach of the provisions in this determination. However, any misinterpretation or misapplication of the exempt lump sum classification could lead to incorrect social security assessments, potentially resulting in overpayments or underpayments of social security benefits. It is important for all parties to adhere to the terms of the determination to ensure compliance with social security laws.

Legal classification tags

Area of Law
Social Security Law
Instrument
Regulation
Concepts
Definitions & Interpretation
Exempt Lump Sum
Income Test Exemption

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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.