{"id":"F2021L00563","name":"Social Security (Exempt Lump Sum –Settlement of Per- and Poly-fluoroalkyl Class Action) Determination 2021","slug":"social-security-exempt-lump-sum-settlement-of-per-and-poly-fluoroalkyl-class-action-determination-20","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":101758,"registerId":"commonwealth-F2021L00563-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Name","content":"#### 1 Name\n\n This instrument is the Social Security (Exempt Lump Sum –Settlement of Per- and Poly-fluoroalkyl Class Action) Determination 2021.","sortOrder":0},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 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```html\n

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1. The whole of this instrument

The day after this instrument is registered.

\n```\n\n> Note: This table relates only to the provisions of this instrument as originally made.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.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":"Authority","content":"#### 3 Authority\n\n This instrument is made under paragraph 8(11)(d) of the Social Security Act 1991.","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"Definitions","content":"#### 4 Definitions\n\n In this instrument:\n\n> Act means the Social Security Act 1991.\n\n> Group Member has the meaning given by the Settlement Deed dated 5 June 2020 approved by the Federal Court on 5 June 2020 in Smith v Commonwealth of Australia (No.2) \\[2020\\] FCA 837.\n\n> Settlement Payment means a payment to or for the benefit of a Group Member pursuant to the class action settlement approved by the Federal Court on 5 June 2020 in Smith v Commonwealth of Australia (No.2) \\[2020\\] FCA 837 relating to alleged damage in part in relation to property value diminution.","sortOrder":3},{"sectionNumber":"5","sectionType":"section","heading":"Exempt lump sum","content":"#### 5 Exempt lump sum\n\n For the purposes of paragraph 8(11)(d) of the Act, if a Group Member receives a Settlement Payment, the amount of the payment that is compensation for property value diminution is an exempt lump sum.","sortOrder":4}],"analysis":{"flash_summary":{"complexity_score":2,"scope_assessment":{"changed":false,"description":"The instrument does not expand or amend the Social Security Act itself; it uses the Act’s paragraph 8(11)(d) power to declare a narrowly defined exempt lump sum for a particular class-action settlement. It confines the exemption to amounts compensating property value diminution for Group Members as defined in the settlement (ss 3–5)."},"complexity_factors":["Very narrow, single-issue instrument limited to one court-approved class action (definitions in s4).","Relies on external Settlement Deed and Federal Court approval to identify who qualifies (s4).","Requires isolating the settlement component that is ‘compensation for property value diminution’—an apportionment/valuation task for administrators (s5).","Operates by exercising an existing statutory power (paragraph 8(11)(d) of the Social Security Act) rather than changing eligibility rules (s3).","Short commencement and temporal certainty (whole instrument commences the day after registration) but no procedural detail on assessment (s2).","Low legislative complexity but generates modest administrative compliance burden to apply the exemption to individual payments."],"plain_english_summary":"This instrument declares that, for social security purposes, the portion of a specific class-action settlement payment that compensates for loss in property value is an exempt lump sum. It applies only to members of the class defined in the court-approved Smith v Commonwealth (No.2) settlement. The exemption changes how that portion is treated in means-testing and benefit assessments."},"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"This instrument maintains its original narrow scope. It was always intended to address only the Smith v Commonwealth PFAS class action settlement regarding property value diminution, and it does exactly that. There is no evidence of scope creep — it has not expanded to cover other class actions, other types of PFAS claims, or broader compensation categories."},"complexity_factors":["Extremely short: only 5 operative sections","Only 3 defined terms, all straightforward (Act, Group Member, Settlement Payment)","Single operative provision (section 5) with no subsections or conditions","No cross-references to other legislation beyond the enabling provision (Social Security Act 1991, paragraph 8(11)(d))","No exceptions, nested logic, or temporal limitations in the substantive rule","Purpose-built for a single, specific class action settlement with no general application"],"plain_english_summary":"This law ensures certain PFAS class-action settlement payments don’t count towards Centrelink income or assets. It protects Group Members from Smith v Commonwealth of Australia — residents near Defence bases who received compensation for property devaluation due to contamination.\n\nOnly the settlement portion compensating for property value diminution is exempt; other compensation (e.g. personal injury or distress) isn’t covered. The change prevents Centrelink cuts to pensions and benefits solely because recipients received property-loss compensation."}},"importantCases":[],"_links":{"self":"/api/acts/social-security-exempt-lump-sum-settlement-of-per-and-poly-fluoroalkyl-class-action-determination-20","history":"/api/acts/social-security-exempt-lump-sum-settlement-of-per-and-poly-fluoroalkyl-class-action-determination-20/history","analysis":"/api/acts/social-security-exempt-lump-sum-settlement-of-per-and-poly-fluoroalkyl-class-action-determination-20/analysis","conflicts":"/api/acts/social-security-exempt-lump-sum-settlement-of-per-and-poly-fluoroalkyl-class-action-determination-20/conflicts","importantCases":"/api/acts/social-security-exempt-lump-sum-settlement-of-per-and-poly-fluoroalkyl-class-action-determination-20/important-cases","documents":"/api/acts/social-security-exempt-lump-sum-settlement-of-per-and-poly-fluoroalkyl-class-action-determination-20/documents"}}