Social Security (Exempt Lump Sum – Retta Dixon Home Settlement Payment) Determination 2017

Administered by Department of Social Services

Legislation au F2017L00277 In force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Social Security (Exempt Lump Sum – Retta Dixon Home Settlement 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.

This Determination provides that a Retta Dixon Home Settlement Payment is an exempt lump sum for the purpose of paragraph 8(11)(d) of the Act.

Retta Dixon Home Settlement Payment means a payment made from the Deed of Settlement between John Gordon and other claimants, the Commonwealth of Australia, Donald Bruce Henderson and Australian Indigenous Ministries Pty Ltd (ACN 002 013 658), document number 21254502, first signed 8 March 2017.

The effect of this Determination is that such 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 the day after this instrument is registered on the Federal Register of Legislation.

Consultation

Consultation was undertaken with the Department of Prime Minister and Cabinet. Consultation was also undertaken with the Department of Veterans’ Affairs, Department of Agriculture and Water Resources and the Department of Human Services.

This determination will be beneficial to persons affected as it exempts Retta Dixon Home Settlement Payments from being assessed as income for social security purposes. As a result, public consultation was considered unnecessary.              


Regulatory Impact Analysis

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 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 Retta Dixon Home Settlement Payment. This is defined as a payment made from the Deed of Settlement between John Gordon and other claimants, the Commonwealth of Australia, Donald Bruce Henderson and Australian Indigenous Ministries Pty Ltd (ACN 002 013 658), document number 21254502, first signed 8 March 2017.

Section 5 specifies that a payment made to a person as a Retta Dixon Home Settlement 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 –Retta Dixon Home Settlement Payment) Determination 2017

The effect of the Determination is that a person who receives a Retta Dixon Home Settlement Payment will not have that payment assessed as income under the social security law.

A Retta Dixon Home Settlement Payment is a payment made from the Deed of Settlement between John Gordon and other claimants, the Commonwealth of Australia, Donald Bruce Henderson and Australian Indigenous Ministries Pty Ltd (ACN 002 013 658), document number 21254502, first signed 8 March 2017.

Human rights implications

This Determination is made under Section 8(11) of the Social Security Act 1991 (the Act) and determines that a Retta Dixon Home Settlement Payment is an exempt lump sum and will therefore not be assessed under the social security income test for the purposes of the Act. 

 

The Determination ensures that people receiving a Retta Dixon Home Settlement Payment will not have these payments assessed as income for social security purposes.

 

The Determination engages the right to social security.

 

The right to social security

 

The Determination will operate beneficially, as a Retta Dixon Home Settlement Payment will not be taken into account when assessing a person’s eligibility for, or rate of social security entitlements under the social security income test. If the Retta Dixon Home Settlement Payment was not exempted, a person in receipt of a Retta Dixon Home Settlement 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 payment of a Retta Dixon Home Settlement Payment from the income test on receipt does not alter the fact that any ongoing income generated by the lump sum is counted under the income test, and any assessable asset produced from the lump sum is counted under 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

 

This Determination supports a person’s human right to social security.

 

 

Anita Davis, Acting Branch Manager, International and Means Test Policy Branch, as a delegate of the Secretary of the Department of Social Services.

 

Overview

The Social Security (Exempt Lump Sum – Retta Dixon Home Settlement Payment) Determination 2017 was enacted to address a specific issue within the social security system, ensuring that a particular type of payment is not assessed as income. This Determination was introduced by the Commonwealth of Australia, operating under the authority granted by paragraph 8(11)(d) of the Social Security Act 1991. The primary objective of this legislation is to exempt a Retta Dixon Home Settlement Payment from the social security income test, thereby ensuring that recipients of this payment are not unfairly disadvantaged in their eligibility for or rate of social security entitlements. This exemption is intended to provide relief and support to those who receive such payments, aligning with the overarching goal of promoting equitable access to social security benefits.

Scope and Application

The Social Security (Exempt Lump Sum – Retta Dixon Home Settlement Payment) Determination 2017 applies to individuals who receive a payment known as a Retta Dixon Home Settlement Payment. This payment originates from a specific Deed of Settlement dated 8 March 2017, involving John Gordon, other claimants, the Commonwealth of Australia, Donald Bruce Henderson, and Australian Indigenous Ministries Pty Ltd. Under this Determination, the Retta Dixon Home Settlement Payment is categorised as an exempt lump sum for the purposes of the Social Security Act 1991, meaning it will not be considered as income for the purposes of the social security income test. This exemption ensures that the receipt of such a payment will not affect the eligibility or rate of social security benefits for the recipients. The Determination is made under the authority of the Social Security Act 1991 and is applicable at the Commonwealth level across Australia. It does not require a Regulatory Impact Statement, as it does not impose significant regulatory, compliance, or competition burdens. The Determination commenced on the day after its registration on the Federal Register of Legislation, and it aligns with the human rights principle of social security by ensuring that individuals receiving the specified settlement payment are not adversely affected in their social security entitlements.

Key Provisions

The main operative sections of this Determination (sections 3 and 5) clarify that a Retta Dixon Home Settlement Payment is an exempt lump sum for the purposes of the Social Security Act 1991 (the Act). This means that any such payments will not be considered as ordinary income for the purposes of the social security income test (section 8(1)(d) of the Act). The Determination specifically defines a Retta Dixon Home Settlement Payment as a payment made from the Deed of Settlement between John Gordon and other claimants, the Commonwealth of Australia, Donald Bruce Henderson and Australian Indigenous Ministries Pty Ltd (ACN 002 013 658), document number 21254502, first signed on 8 March 2017 (section 4). The effect is that such payments will not be regarded as income under the Act, thereby exempting them from the social security income test. The Act imposes obligations on the parties involved, ensuring that any Retta Dixon Home Settlement Payments received are not counted as income when determining a person's eligibility for, or rate of, social security entitlements. This means that the payment is exempt from the income test, thereby protecting the recipient's social security benefits. However, it is important to note that any ongoing income generated by the lump sum or any assessable asset produced from the lump sum will still be counted under the income test and social security assets test, respectively, in accordance with the Act. There are no specific offences, penalties, or civil/criminal consequences outlined in this Determination for breach of its provisions. The primary focus is on ensuring that Retta Dixon Home Settlement Payments are not assessed as income for social security purposes, thereby supporting the human right to social security. However, it is worth noting that any ongoing income generated by the lump sum or any assessable asset produced from the lump sum will still be subject to the social security income and assets tests, as per the Act. This Determination aims to provide clarity and ensure compliance with the social security law in relation to Retta Dixon Home Settlement Payments.

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Area of Law
Social Security Law
Instrument
Regulation
Concepts
Definitions & Interpretation
Commencement Provisions
Exemptions & Exclusions
Rights & Protections

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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.