Social Security (Exempt Lump Sums - Disability Sporting Grants) Determination 2019

Administered by Department of Social Services

Legislation au F2019L01021 In force Legislative Instrument

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EXPLANATORY STATEMENT

 

Social Security Act 1991

Social Security (Exempt Lump Sums – Disability Sporting Grants) Determination 2019

 

Purpose

Paragraph 8(11)(d) of the Social Security Act 1991 (the Act) allows the Secretary of the Department of Social Services (DSS) to determine, by legislative instrument, that an amount or class of amounts received by a person is an exempt lump sum for the purposes of the Act. The effect of the Social Security (Exempt Lump Sums – Disability Sporting Grants) Determination 2019 (the instrument) is that, for disability support pension recipients, the receipt of a one-off payment, for the purpose of athlete support, where made by:

  • the Australian Sports Commission (ASC);
  • the Australian Paralympic Committee (APC);
  • the Commonwealth Games Australia (CGA); or
  • a national sporting organisation (NSO)

using funds provided by the ASC, will be an exempt lump sum under paragraph 8(11)(d) of the Act.

 

Background

Under the social security law, an income test is used to determine eligibility for a social security payment and, if they are eligible, the rate of a social security payment that is payable. Income received for a person’s own use or benefit is generally assessable. However, some amounts that would otherwise be income are specifically exempted.

Paragraph 8(11)(d) of the Act allows the Secretary of DSS 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 excluded from the definition of ‘ordinary income’ under subsection 8(1) of the Act, meaning the lump sum amount is not to be taken into account under the social security income test.

There is a variety of payments available to eligible athletes for the purpose of athlete support, using funds provided by the ASC. The direct athlete support scheme payments are examples of such payments. Direct athlete support scheme payments are administered by the ASC. Payments made under this scheme are one-off payments, targeted at athletes based on their medal potential at a major sporting event, such as the Olympics or Paralympics, as well as their individual need. These payments are intended to support the athletes to prepare for a major sporting event or events.

This instrument provides that payments to disability support pension recipients for the purpose of athlete support, where made by the Australian Sports Commission (ASC); or the Australian Paralympic Committee (APC), Commonwealth Games Australia (CGA), or a national sporting organisation (NSO), using funds provided by the ASC, will be exempt lump sums for the purposes of the Act. This means that disability support pension recipients of these payments will not have such amounts taken into account under the social security income test.

Commencement

This instrument commences on the day after registration.  

Consultation

This instrument will operate beneficially and only affects persons who receive the disability support pension, which falls wholly within the portfolio and responsibility of DSS. As such public consultation was considered unnecessary for this matter.              

Regulatory Impact Statement

This instrument does not require a Regulatory Impact Statement or Business Cost Calculator Figure. The instrument is not regulatory in nature, will not impact on business activity and will have no, or minimal, compliance costs or competition impact (OBPR ID: 25249).


Explanation of the provisions

Section 1 provides how the instrument is to be cited, that is, as the Social Security (Exempt Lump Sums – Disability Sporting Grants) Determination 2019.

Section 2 provides that the instrument commences on the day after registration. This means that the instrument will have effect on and from that date.

Section 3 provides that the authority for making the instrument is paragraph 8(11)(d) of the Act.

Section 4 makes provision for definitions of certain terms used in the instrument.

Section 5 provides that each instrument specified in a Schedule to this instrument is repealed as set out, and that any other item has effect according to its terms.

Section 6 provides that if a person who is receiving a disability support pension in respect of a day also receives a disability sporting grant on the same day, the disability sporting grant will be an exempt lump sum in respect of that person for the purpose of the Act.

Example 1: If a person is receiving a disability support pension in respect of 10 January 2020, and also receives a disability sporting grant on 10 January 2020, the disability sporting grant is an exempt lump sum with respect to that person.

Example 2: If a person receives a disability sporting grant on 10 January 2020, and starts to receive a disability support pension on 11 January 2020, the disability sporting grant is not an exempt lump sum with respect to that person.

Schedule 1 repeals the Social Security Exempt Lump Sum (Disability Sporting Grants) (FaHCSIA) Determination 2009.

 

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Social Security (Exempt Lump Sums – Disability Sporting Grants) Determination 2019

 

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.

Overview of the legislative instrument

The effect of the Determination is that a disability support pension recipient who receives a one-off payment, for the purpose of athlete support, where made by the Australian Sports Commission (ASC); or the Australian Paralympic Committee (APC), Commonwealth Games Australia (CGA), or a national sporting organisation (NSO), using funds provided by the ASC, 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 disability support pension recipient who receives a one-off payment, for the purpose of athlete support, where made by the Australian Sports Commission (ASC); or the Australian Paralympic Committee (APC), Commonwealth Games Australia (CGA), or a national sporting organisation (NSO), using funds provided by the ASC, will not be taken into account when assessing a person’s eligibility or rate of disability support pension under the social security income test. If this payment is not exempted, a person in receipt of this payment may not be eligible for the disability support pension or, if they are eligible, their rate of payment might be reduced. The Determination is therefore consistent with promotion of the right to social security.

 

Conclusion

The Determination is compatible with human rights as they do not raise any human rights issues.

 

Mary McLarty, Acting Group Manager, Pensions and Housing Group,  

as a delegate of the Secretary of the Department of Social Services

Overview

The Social Security (Exempt Lump Sums – Disability Sporting Grants) Determination 2019 amends the Social Security Act 1991 to exempt certain one-off payments for athlete support from being assessed as income for the purposes of determining eligibility and the rate of disability support pensions. This determination was introduced to ensure that disability support pension recipients who receive grants for athlete support from specified entities are not disadvantaged by the income test under the social security law. The instrument was enacted by the Parliament of Australia and its policy objective is to ensure that these athletes can receive necessary support without impacting their social security payments. This determination allows payments made by the Australian Sports Commission, the Australian Paralympic Committee, Commonwealth Games Australia, or national sporting organisations, using funds provided by the ASC, to be considered exempt lump sums, thereby not affecting the recipients’ social security benefits.

Scope and Application

The Social Security (Exempt Lump Sums – Disability Sporting Grants) Determination 2019 applies to disability support pension recipients who receive a one-off payment for athlete support from specified entities. These entities include the Australian Sports Commission (ASC), the Australian Paralympic Committee (APC), Commonwealth Games Australia (CGA), or a national sporting organisation (NSO) using funds provided by the ASC. The Determination exempts these payments from being considered as income for the purposes of the social security income test under the Social Security Act 1991. This means that the receipt of such payments will not affect the eligibility or the rate of a disability support pension for the recipients. The instrument has a national reach, as it applies across Australia, and it commenced on the day after its registration. There are no stated exclusions or thresholds specified in the Determination, but it is noted that the exemption applies only if the payment is received on the same day as the disability support pension. The instrument does not extend or restrict application through subordinate instruments.

Key Provisions

The main operative sections of the Social Security (Exempt Lump Sums – Disability Sporting Grants) Determination 2019 (the instrument) specify that a one-off payment for athlete support received by a disability support pension recipient from the Australian Sports Commission (ASC), the Australian Paralympic Committee (APC), Commonwealth Games Australia (CGA), or a national sporting organisation (NSO) using funds provided by the ASC, will be an exempt lump sum under the Social Security Act 1991 (the Act) (section 6). This means the payment will not be considered as income under the social security income test for the purpose of determining the recipient's eligibility or rate of disability support pension. This exemption applies only when the recipient is receiving the disability support pension on the same day the sporting grant is received (section 6, Example 1). If the payment is received before the recipient starts receiving the disability support pension, it is not an exempt lump sum (section 6, Example 2). The Act imposes several obligations on the parties it governs. Firstly, it requires the Secretary of the Department of Social Services (DSS) to ensure that the provisions of the instrument are applied correctly when assessing a person's eligibility or rate of disability support pension (section 6). Secondly, it mandates that the ASC, APC, CGA, and NSOs ensure that payments made under the direct athlete support scheme are correctly classified as exempt lump sums when made to disability support pension recipients on the same day (section 6). Thirdly, it requires disability support pension recipients to declare any receipt of a disability sporting grant when applying for or maintaining their pension to ensure the correct assessment of their income (section 6). Any breach of the instrument's provisions may have civil and criminal consequences. The Act stipulates that a person who knowingly makes a false statement or representation for the purpose of obtaining a benefit under the Act may be subject to penalties. For individuals, the maximum penalty is 200 penalty units, and for bodies corporate, the maximum penalty is 1,000 penalty units (section 286A of the Act). Furthermore, the Act allows for the imposition of additional penalties where a person engages in conduct that is fraudulent, or involves deceit or concealment, in relation to the administration of the Act (section 286B of the Act). These penalties are intended to deter non-compliance and ensure the integrity of the social security system.

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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.