Social Security (Exempt Lump Sums—Payments Compensatory in Nature for Non‑Economic Loss) Determination 2017 made under paragraph 8(11)(d) of the Social Security Act 1991. Compilation No. 1 Compilation date: 12 October 2017 Includes amendments up to: Social Security (Exempt Lump Sums – Payments Compensatory in Nature for Non-Economic Loss) Amendment Determination 2017 (F2017L01435). This compilation was prepared by the Department of Social Services. About this compilation This compilation This is a compilation of the Social Security (Exempt Lump Sums – Payments Compensatory in Nature for Non-Economic Loss) Determination 2017 that shows the text of the law as amended and in force on 12 October 2017 (the compilation date). The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law. Uncommenced amendments The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Legislation Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the series page on the Legislation Register for the compiled law. Application, saving and transitional provisions for provisions and amendments If the operation of a provision or amendment is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes. Modifications If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the series page on the Legislation Register for the compiled law. Self-repealing provisions If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes. 1 Name This instrument is the Social Security (Exempt Lump Sums – Payments Compensatory in Nature for Non-Economic Loss) Determination 2017. 2 Commencement (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. Commencement information Column 1 Column 2 Column 3 Provisions Commencement Date/Details 1. The whole of this instrument, except Section 8A The day after this instrument is registered. 8 June 2017 2. Section 8A 12 October 2017 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. (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. 3 Authority This instrument is made under paragraph 8(11)(d) of the Social Security Act 1991. 4 Definitions Note: A number of expressions used in this instrument are defined in the Act, including the following: (a) adopted child; (b) Australia; (c) child; (d) parent; (e) sibling; (f) step‑child; (g) step‑parent; (h) superannuation fund. In this instrument: Act means the Social Security Act 1991. close relative, of a person, means: (a) a partner; or (b) a parent, including a step‑parent, foster parent or adoptive parent; or (c) a child, including a step‑child, foster child or adopted child; or (d) a sibling, including a foster‑brother or foster‑sister of the person. misconduct means fraud, negligence, default, breach of trust, breach of duty or any other misconduct in the course of duty. trustee has the same meaning as in the Income Tax Assessment Act 1997. 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. 6 Payments made on death, medical trauma or medical event For the purposes of section 5, this section covers the following payments: (a) a payment made under a contract of insurance: (i) on the death of a person insured under the contract if a minimum benefit determined under the contract is payable; or (ii) in respect of a medical trauma or medical event specified in the contract; (b) a payment made by a superannuation fund of a death benefit on the death of a fund member to a person nominated or entitled to receive the benefit. 7 Payments under the Military Rehabilitation and Compensation Act 2004 For the purposes of section 5, this section covers the following payments: (a) a payment made under section 78 or 236 of the Military Rehabilitation and Compensation Act 2004 (which allows compensation to be paid as a lump sum); (b) a payment made under paragraph 234(1)(a) of that Act (which relates to compensation for wholly dependent partners); (c) a payment under paragraph 234(1)(b) of that Act (which also relates to compensation for wholly dependent partners) of a lump sum to a person who has chosen under section 236 of that Act to convert some or all of the weekly amount mentioned in that paragraph to a lump sum; (d) a payment made under section 251 or 255 of that Act (which relate to compensation for eligible young persons); (e) a payment made under section 262 of that Act (which relates to lump sum compensation for dependants). 8 Payments under the Safety, Rehabilitation and Compensation Act 1988 For the purposes of section 5, this section covers the following payments: (a) a payment made under subsection 17(3) or (4) of the Safety, Rehabilitation and Compensation Act 1988 (which relate to compensation for dependents); (b) a payment made under section 18 of that Act (which relates to compensation in respect of funeral expenses); (c) a payment made under section 24 of that Act (which relates to compensation for injuries resulting in permanent impairment); (d) a payment made under section 25 of that Act (which relates to an interim payment of compensation for injuries resulting in permanent impairment); (e) a payment made under section 27 of that Act (which relates to compensation for non‑economic loss). 8A Payments under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 For the purposes of section 5, this section covers the following payments: (a) a payment made under subsection 17(3) or (4) of the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (which relate to compensation for dependants); (b) a payment made under section 18 of that Act (which relates to compensation in respect of funeral expenses); (c) a payment made under section 24 of that Act (which relates to compensation for injuries resulting in permanent impairment); (d) a payment made under section 25 of that Act (which relates to an interim payment of compensation for injuries resulting in permanent impairment); (e) a payment made under section 27 of that Act (which relates to compensation for non‑economic loss). 9 Payments under the Defence Determination 2016/19, Conditions of service For the purposes of section 5, this section covers the following payments: (a) a payment made under Division 2 (additional death benefit) of Part 2 of Chapter 11 of the Defence Determination 2016/19, Conditions of service; (b) a payment made under Division 3 (severe injury adjustment) of that Part. Note: The Defence Determination 2016/19, Conditions of service could in 2017 be viewed on the Federal Register of Legislation website (https://www.legislation.gov.au). 10 Payments relating to personal injuries etc. (1) Subject to subsection (2) of this section and for the purposes of section 5, this section covers a payment, made in Australia, that: (a) relates to: (i) a personal injury, disease or condition; or (ii) a medical procedure; and (b) is: (i) a payment of damages; or (ii) a payment under an insurance or compensation scheme set out under a law of the Commonwealth, or a State or a Territory, including a payment made under a contract entered into under such a scheme; or (iii) the settlement of a claim for damages (whether or not accompanied by an admission of liability); or (iv) a payment in the nature of compensation or damages. (2) Subsection (1) does not cover the following payments (however described in a relevant policy document); (a) an income protection payment; (b) a total and permanent disability or incapacity payment; (c) a total and temporary disability payment; (d) a permanent and partial disability payment; that are paid as a lump sum under: (e) a sickness or accident insurance policy; or (f) a group insurance policy arranged by the trustees of a superannuation fund. Endnotes to the Social Security (Exempt Lump Sums – Payments Compensatory in Nature for Non-Economic Loss) Determination 2017 (No. 1) Endnote 1 – About the endnotes The endnotes provide information about this compilation and the compiled law. The following endnotes are included in every compilation: Endnote 1 - About the endnotes Endnote 2 – Abbreviation key Endnote 3 – Legislation history Endnote 4 - Amendment history Abbreviation key – Endnote 2 The abbreviation key sets out abbreviations that may be used in the endnotes. Legislation history and amendment history – Endnotes 3 and 4 The Social Security (Exempt Lump Sums – Payments Compensatory in Nature for Non-Economic Loss) Determination (No. 1) in force under paragraph 8(11)(d) of the Social Security Act 1991 as shown in this compilation is amended as indicated in the Tables below. The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation. The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of law. Endnote 2 – Abbreviation key The following abbreviations may be used in the endnotes: ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted Endnote 3 – Legislation history Title FRLI registration number Date of FRLI registration Date of Application, saving or commencement transitional provisions Social Security (Exempt Lump Sums – Payments Compensatory in Nature for Non-Economic Loss) Amendment Determination 2017 F2017L01435 6 November 2017 12 October 2017 Endnote 4 – Amendment history Provision affected How affected Section 8A Ad; F2017L01435