Part 2Exempt Lump Sums

Part 2: Exempt Lump Sums

2.1 Amount or Class of Amounts

(1) Paragraph 5H(12)(c) of the Act provides that an amount, or class of

amounts, received by a person is an exempt lump sum if the amount, or class of amounts, is determined to be an exempt lump sum.

(2) The Department of New South Wales Fisheries is establishing a number of areas within New South Wales to be protected from commercial fishing. Within each of the identified areas to be protected, the Department of New South Wales Fisheries will be offering all licence holders an ex gratia lump sum payment under a deed of arrangement to compensate those licence holders for their exclusion and the surrender of their licence to the Department of New South Wales Fisheries.

2.2 Application – Exempt Lump Sums

It is appropriate to determine that an amount, or class of amounts, paid to a person is an exempt lump sum for the purposes of paragraph 5H(12)(c) of the Act from the date that the amount is paid, where the amount is paid by the Department of New South Wales Fisheries to a licence holder to compensate that licence holder for being excluded from commercial fishing in an area or areas to be protected from commercial fishing. .