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Commonwealth legislation
This Act has been repealed and is no longer in force. It is retained for historical reference.
This rule exempts large one-off payments under a HEC agreement from income testing for social security. If you (or your partner) receive more than $40,000 in a lump sum from a HEC arrangement, that excess is treated as an exempt lump sum and won’t reduce fortnightly Centrelink payments.
It protects recipients of education‑related lump sums from temporary benefit cuts.
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Direct links to the current provisions in Social Security Exempt Lump Sum Determination No. 4 of 1999.
Determination No. 4 of 1999
I, Evan Mann, Assistant Secretary, Seniors and Means Test Branch and a delegate of the Secretary to the Department of Family and Community Services, make this determination under paragraph 8(11)(d) of the Social Security Act 1991.
Dated 23 September 1999.
Evan Mann
Assistant Secretary, Seniors and Means Test Branch
(2) If a person is not a member of a couple, an amount in excess of $40,000 that is paid to or on behalf of the person under a HEC agreement is an excluded amount or a class of excluded amounts.
(3) If a person is a member of a couple, an amount in excess of $40,000 that is paid to or on behalf of the person or the person's partner under a HEC agreement is an excluded amount or a class of excluded amounts.
2.2 Application—Exempt Lump Sums
It is appropriate to determine that an excluded amount, or class of excluded amounts, as specified in paragraphs 2.1(2) and (3), paid to a person or the person's partner, as the case may be, under a HEC agreement is an exempt lump sum for the purposes of paragraph 8(11)(d) of the Act from the date that the amount is paid.
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
Determination No. 4 of 1999
I, Evan Mann, Assistant Secretary, Seniors and Means Test Branch and a delegate of the Secretary to the Department of Family and Community Services, make this determination under paragraph 8(11)(d) of the Social Security Act 1991.
Dated 23 September 1999.
Evan Mann
Assistant Secretary, Seniors and Means Test Branch
(2) If a person is not a member of a couple, an amount in excess of $40,000 that is paid to or on behalf of the person under a HEC agreement is an excluded amount or a class of excluded amounts.
(3) If a person is a member of a couple, an amount in excess of $40,000 that is paid to or on behalf of the person or the person's partner under a HEC agreement is an excluded amount or a class of excluded amounts.
2.2 Application—Exempt Lump Sums
It is appropriate to determine that an excluded amount, or class of excluded amounts, as specified in paragraphs 2.1(2) and (3), paid to a person or the person's partner, as the case may be, under a HEC agreement is an exempt lump sum for the purposes of paragraph 8(11)(d) of the Act from the date that the amount is paid.