Social Security (Means Test Treatment of Private Companies — Excluded Companies) Declaration 2001
as amended
made under subsection 1207N(5) of the
Social Security Act 1991
This compilation was prepared on 3 July 2013 taking into account amendments made by the Social Security (Means Test Treatment of Private Companies – Excluded Companies) (DEEWR) Declaration 2008
Prepared by the Public Law Branch,
Department of Families, Housing, Community Services and Indigenous Affairs, Canberra
Part 1 Preliminary
1 Name of Declaration
This Declaration is the Social Security (Means Test Treatment of Private Companies — Excluded Companies) Declaration 2001.
2 Commencement
This Declaration commences on gazettal.
3 Purpose
This Declaration specifies a class of companies that are excluded companies for section 1207N of the Act.
3A Application
This Determination does not apply to matters that are the responsibility of the Minister for Education and the Minister for Employment and Workplace Relations.
4 Definitions
In this Declaration:
Act means the Social Security Act 1991.
community purpose means a purpose that is intended to benefit primarily the members of a particular community or group.
government body includes the following kinds of body:
(a) a department or agency of the Commonwealth;
(b) a department or agency of a State or Territory;
(c) a municipal corporation or other local government body;
(d) a body corporate in which the Commonwealth, a State or a Territory body holds a controlling interest.
income means income within the ordinary meaning of that expression.
indigenous-held land has the same meaning as in section 4B of the Aboriginal and Torres Strait Islander Commission Act 1989.
Part 2 Specified class of companies
5 Companies with community purpose are excluded companies
(1) Each company that meets the requirements in subsection (2) is an excluded company for section 1207N of the Act.
(2) The company must have the sole or dominant purpose of:
(a) receiving, managing or distributing property transferred directly to it, or through an interposed entity, by a government body for a community purpose; or
(b) holding, managing or disposing of indigenous-held land, for a community purpose; or
(c) receiving, managing or distributing income that:
(i) has been generated from indigenous-held land; and
(ii) is applied for a community purpose.
Notes to the Social Security (Means Test Treatment of Private Companies – Excluded Companies) Declaration 2001
Note 1
The Social Security (Means Test Treatment of Private Companies – Excluded Companies) Declaration 2001 (in force under subsection 1207N(5) of the Social Security Act 1991) as shown in this compilation is amended as indicated in the Tables below.
Table of Instruments
Title | Date of FRLI registration | Date of commencement | Application, savings or transitional provisions |
Social Security (Means 7 May 2007 20 December 2001
Test Treatment of (see F2007B00677)
Private Companies –
Excluded Companies)
Declaration 2001
Social Security (Means 24 June 2008 25 June 2008
Test Treatment of (see F2008L02157)
Private Companies –
Excluded Companies
(DEEWR) Declaration
2008
Table of Amendments
ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted |
Provision affected | How affected |
Part 1
R. 3A...................……..….. | ad. 2008 F2008L02157; |
| |
Overview
The Social Security (Means Test Treatment of Private Companies – Excluded Companies) Declaration 2001, as amended, was enacted to address the issue of means testing in relation to certain private companies under the Social Security Act 1991. This legislation, prepared by the Public Law Branch of the Department of Families, Housing, Community Services and Indigenous Affairs, aims to specify a class of companies that are excluded from the means test for social security benefits. The primary purpose of this declaration is to ensure that companies with a sole or dominant purpose of benefiting a particular community or group, such as those managing indigenous-held land or receiving property from government bodies for community purposes, are appropriately excluded from the means test. This legislative instrument was made under the authority of subsection 1207N(5) of the Social Security Act 1991 and came into effect upon gazettal. The policy objective is to provide targeted exclusions that align with community welfare needs without unfairly impacting social security assessments for other private entities.
Scope and Application
The Social Security (Means Test Treatment of Private Companies – Excluded Companies) Declaration 2001, as amended by the Social Security (Means Test Treatment of Private Companies – Excluded Companies) (DEEWR) Declaration 2008, is a legislative instrument made under the Social Security Act 1991. This Declaration applies to a specific class of companies, known as excluded companies, which are exempt from certain means test provisions under the Act. Specifically, the Declaration applies to private companies that have a sole or dominant purpose of receiving, managing, or distributing property from government bodies for community purposes, holding or managing indigenous-held land for community purposes, or managing income generated from indigenous-held land for community purposes. The scope of the Declaration is limited to matters not covered by the Minister for Education and the Minister for Employment and Workplace Relations. The Declaration applies on a national level and its provisions can be further extended or modified through subordinate instruments, although no such amendments are currently in effect.
Key Provisions
The Social Security (Means Test Treatment of Private Companies – Excluded Companies) Declaration 2001, as amended by the 2008 Declaration, identifies specific classes of companies that are excluded from the means test under section 1207N of the Social Security Act 1991 (the Act). This exclusion applies to companies that have a community purpose as their sole or dominant purpose (section 5(2)). Such companies must be involved in receiving, managing or distributing property transferred by government bodies for community purposes (section 5(2)(a)), holding, managing or disposing of indigenous-held land for community purposes (section 5(2)(b)), or managing income generated from indigenous-held land that is applied for community purposes (section 5(2)(c)).
The Act imposes obligations on these excluded companies to ensure they maintain their community-focused activities. Companies must demonstrate that their primary activities align with the specified community purposes, and any deviation could result in losing their exclusion status. Compliance involves maintaining records and providing evidence of their activities to the relevant authorities upon request.
Breaching the requirements of this Declaration can lead to legal consequences. Although specific penalties are not detailed within the Declaration itself, contraventions of the Social Security Act 1991 generally attract penalties. For instance, providing false or misleading information can result in fines and, in serious cases, criminal charges. The exact penalties depend on the severity of the breach and are determined under the general provisions of the Act. Therefore, companies must adhere strictly to the declared requirements to avoid any legal repercussions.