|
|
|
|
|
Since the 1 July 1998 alignment of the treatment of lump sum amounts for both pension and allowance purposes, most lump sums (non-remunerative AND remunerative) are to be maintained for 12 months from the date they are entitled to be received. A small number of lump sums are treated differently - refer to policy reference for (a) compensation assessed as ordinary income (4.13.1.20), and (b) lump sums which are exempt (4.3.2.30, 4.3.2.35).
Act reference: SSAct section 8(11) Exempt lump sum, section 23(1)-'social security benefit', section 1073 Certain amounts taken to be received over 12 months, section 1068-G7B Claimant or recipient receives lump sum amount for remunerative work, section 1068-G7C Partner of claimant or recipient receives lump sum amount for remunerative work, section 1067L-D20 Claimant or recipient receives lump sum amount for remunerative work, section 1067L-D21 Partner of claimant or recipient receives lump sum amount for remunerative work, section 1067G-H23A Claimant or recipient receives lump sum amount for remunerative work, section 1067G-H23B Partner of claimant or recipient receives lump sum amount for remunerative work, section 1068B-D19 Period over which ordinary income taken into account, section 1073AA Work bonus
Policy reference: SS Guide 1.1.E.180 Exempt lump sums, 4.3.1.10 Determining the Rate of Income for Benefits, 4.3.1.20 Determining the Rate of Income for Pensioners of Age Pension Age from 20/09/2009, 4.3.1.40 Determining the Rate of Income for PP, 4.3.2.30 Income Exempt from Assessment - Legislated, 4.3.2.31 Income Exempt from Assessment - Specifically Approved, 4.3.2.35 Income Exempt from Assessment - s 8(11) Exempt Lump Sums, 4.3.3.10 General Provisions for Income from Employment, 4.3.3.20 Income from Employment or Independent Contracting, 4.13.1.20 Assessment of Compensatory Type Payments, 3.1.14 Work Bonus
_______________________________________________________
Last reviewed: 21 September 2009
