{"id":"F2022L00586","name":"Social Security (Exempt Lump Sum – Rectification Action) Determination 2022","slug":"social-security-exempt-lump-sum-rectification-action-determination-2022","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":441354,"registerId":"F2022L00586-fast-fetch-1775956668803","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Social Security (Exempt Lump Sum – Rectification Action) Determination 2022","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\nmeta-generator: Aspose.Words for .NET 22.10.0\nmeta-keywords: \"[SEC=OFFICIAL:Sensitive]\"\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n![Commonwealth Coat of Arms of Australia](image.001.jpeg)\n\n \n\nSocial Security (Exempt Lump Sum – Rectification Action) Determination 2022\n\nI, Caitlin Delaney, Acting Group Manager of the Pensions Housing and Homelessness Group in the Department of Social Services, make the following Determination.\n\nDated  8 April 2022  \n\nCaitlin Delaney\n\nActing Group Manager of the Pensions, Housing and Homelessness Group\n\nDelegate of the Secretary of the Department of Social Services\n\n \n\n \n\n \n\nContents\n\n1  Name\n\n2  Commencement\n\n3  Authority\n\n4  Definitions\n\n5  Exempt lump sum\n\n \n\n1  Name\n\n  This instrument is the Social Security (Exempt Lump Sum – Rectification Action) Determination 2022.\n\n2  Commencement\n\n (1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n \n\n- Commencement information\n- Column 1 Column 2 Column 3\n- Provisions Commencement Date/Details\n- 1. The whole of this instrument The day after this instrument is registered.\n\n\nNote: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.\n\n (2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.\n\n3  Authority\n\n  This instrument is made under paragraph 8(11)(d) of the Act.\n\n4  Definitions\n\n  In this instrument:\n\nAct means the Social Security Act 1991.\n\nCategory 2 Group Member has the meaning for this term given in the Settlement Deed approved by the  Federal Court of Australia on 11 June 2021 in Prygodicz v Commonwealth of Australia (No 2) [2021] FCA 634.\n\nEligible Category 3 Group Member has the meaning for this term given in the Settlement Deed approved by the  Federal Court of Australia on 11 June 2021 in Prygodicz v Commonwealth of Australia (No 2) [2021] FCA 634.\n\nEligible Group Member means a Category 2 Group Member or an Eligible Category 3 Group Member.\n\nSettlement Payment means a payment of a proportion of the settlement sum based upon interest notionally accrued on monies repaid by an Eligible Group Member to the Commonwealth, pursuant to the Settlement Deed approved by the Federal Court of Australia on 11 June 2021 in Prygodicz v Commonwealth of Australia (No 2) [2021] FCA 634.  \n\n5  Exempt lump sum\n\n  For the purposes of paragraph 8(11)(d) of the Act, a Settlement Payment received by an Eligible Group Member is an exempt lump sum.\n\n \n","sortOrder":0}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"This Determination has a tightly circumscribed scope that matches its original intent. It was created specifically to exempt Settlement Payments under the Prygodicz settlement from the social security income/assets tests, and it does exactly that without expansion into broader policy areas."},"complexity_factors":["Very short instrument (5 sections, approximately 1 page)","Only 4 defined terms, all referencing external documents (the Federal Court settlement deed)","Single operative provision (section 5) with no conditional logic or exceptions","No cross-references to other legislation beyond the empowering provision (paragraph 8(11)(d) of the Social Security Act 1991)","Purpose-built for a specific, narrow factual scenario (the Prygodicz settlement)"],"plain_english_summary":"This Determination treats the Prygodicz settlement “Settlement Payments” as exempt lump sums so Centrelink will ignore them when assessing income and assets. \n\nIt protects Category 2 and Eligible Category 3 Group Members who repaid overpaid social security, ensuring the compensation for interest doesn’t reduce or cancel their ongoing welfare payments."},"flash_summary":{"complexity_score":2,"scope_assessment":{"changed":false,"description":"The instrument narrowly declares that Settlement Payments to Eligible Group Members are exempt lump sums and does not broaden or narrow the class beyond the Settlement Deed definitions. It operates only to treat those specified payments as exempt for social security purposes (s4–s5) and commences the day after registration (s2)."},"complexity_factors":["Single operative effect: one substantive provision declaring Settlement Payments exempt (s5).","Relies on external definitions and eligibility criteria set in the Settlement Deed approved by the Federal Court (s4).","Cross-reference to the Social Security Act paragraph 8(11)(d) supplies legal authority but no new substantive rule beyond the exemption (s3).","Minimal administrative discretion: instrument is a delegate’s determination rather than a rules-heavy instrument (instrument header; s3).","Straightforward commencement provision — effective the day after registration (s2)."],"plain_english_summary":"This Determination says that payments made under the Prygodicz settlement (called \"Settlement Payments\") to people defined in the Settlement Deed as Eligible Group Members will be treated as exempt lump sums for social security means-testing (defs and operative clause: s4–s5). It was made under paragraph 8(11)(d) of the Social Security Act and takes effect from the day after registration (s3, s2). The payments come from the Commonwealth settlement and the Department’s delegate formally declares the exemption."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/social-security-exempt-lump-sum-rectification-action-determination-2022","history":"/api/acts/social-security-exempt-lump-sum-rectification-action-determination-2022/history","analysis":"/api/acts/social-security-exempt-lump-sum-rectification-action-determination-2022/analysis","conflicts":"/api/acts/social-security-exempt-lump-sum-rectification-action-determination-2022/conflicts","importantCases":"/api/acts/social-security-exempt-lump-sum-rectification-action-determination-2022/important-cases","documents":"/api/acts/social-security-exempt-lump-sum-rectification-action-determination-2022/documents"}}