5Exempt lump sum

5 Exempt lump sum

(1) Subject to subsection (2), for the purposes of paragraph 8(11)(d) of the Act, the gross amount of a payment covered by subsection (3) or another provision of this instrument: (a) is an exempt lump sum; and (b) unless paragraph (c) applies—is reduced to the extent that the payment represents: (i) lost earnings or lost capacity to earn; or (ii) a lump sum calculated at a particular rate over a particular period, instead of periodic payments for the same period; and (c) if: (i) the payment to any extent represents the settlement of a claim relating wholly or partly to economic loss (whether the settlement is by consent judgment or otherwise, and whether or not the settlement is accompanied by an admission of liability); and (ii) the settlement does not identify a component for lost earnings or lost capacity to earn; and (iii) the settlement does not represent a lump sum calculated at a particular rate over a particular period, instead of periodic payments for the same period; is reduced by an amount equal to 50% of so much of the payment as represents that settlement. (2) The gross amount of a payment covered by section 7 is an exempt lump sum, and is not reduced under paragraph (1)(b) or paragraph (1)(c). (3) For the purposes of subsection (1), this subsection covers the following payments: (a) a payment made under the law of the Commonwealth, or a State or Territory, for a personal injury suffered, or a disease or condition contracted, as a result of the commission of an offence; (b) a payment made on the death of a close relative for pain and suffering, or expenses related to the relative’s medical treatment or funeral: (i) under the law of the Commonwealth, or a State or a Territory; or (ii) in accordance with an international agreement to which Australia is a party that applies to air travel; (c) a payment made under the law of the Commonwealth, or a State or Territory, for discrimination, harassment, a breach of human rights or breach of privacy; (d) a payment of compensation made under the Fair Work Act 2009 in respect of non‑economic loss, other than compensation paid to a person for being unfairly dismissed (within the meaning of that Act); (e) any of the following payments in respect of loss as a result of misconduct in the provision of professional services: (i) a payment of compensation; (ii) a payment under an insurance scheme that applies to particular professional services; (iii) the settlement of a claim for damages (whether or not accompanied by an admission of liability). (4) A payment mentioned in paragraph (3)(b) includes a one‑off payment which is more than that prescribed or calculated under the relevant law or in accordance with the relevant international agreement.