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Determinations/Social Security as made
This instrument provides that an amount received by a person, which is of a class prescribed in the determination, is an ‘exempt lump sum’ and thus not income for the purposes of determining a person’s rate of farm household allowance (FHA), including whether FHA is payable to the person at all.
Administered by: Social Services
Registered 29 Jun 2020

Social Security (Exempt Lump Sum General) (Agriculture) Determination 2020

I, Andrew Metcalfe, Secretary of the Department of Agriculture, Water and the Environment, make the following determination under paragraph 8(11)(d) of the Social Security Act 1991, as notionally modified by Part 5 of the Farm Household Support Act 2014.

Dated: 24th June 2020

Andrew Metcalfe

Secretary of the Department of Agriculture, Water and the Environment


1          Name of determination

This determination is the Social Security (Exempt Lump Sum General) (Agriculture) Determination 2020.

2          Commencement

This determination commences on the day after it is registered.

3          Interpretation

In this determination:

(a)             the term dependant includes a dependent child or parent; and

(b)             the term government entity means a Commonwealth, State, Territory or local government entity; and

(c)             the term registered charity has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997; and

(d)             other terms take their meaning from the social security law.

4          Exempt lump sums

(1)                  For paragraph 8(11)(d) of the Social Security Act 1991, as applied and modified by Part 5 of the Farm Household Support Act 2014, the class of amounts described in subsection (2) is determined to be an exempt lump sum.

(2)                  The class consists of amounts that are paid by a government entity or registered charity and are principally for the recipient to procure, for the benefit of the recipient, a partner of the recipient or a dependant of the recipient:

(a)             goods or services for environmental purposes, including the management of water, land or other natural resources; or

(b)             goods or services for the purposes of sustainable farming, including goods or services that encourage the economic viability of farming, or reduce or eliminate risks to the natural environment that farming causes; or

(c)             farm infrastructure, plant or equipment, or related goods or services; or

(d)             education or training in relation to the carrying on of a farm enterprise, that is likely to enhance the income-earning capacity of the recipient, a partner of the recipient or a dependant of the recipient; or

(e)             professional or paraprofessional advice, such as legal, financial, scientific, agricultural or agribusiness advice, in relation to a farm

Social Security (Exempt Lump Sum General) (Agriculture) Determination 2020              1


enterprise; or

(f)                goods or services for the purposes of preparing for, or responding to, drought; or

(g)                goods or services for the purposes of preparing for, or responding to, emergencies or natural disasters; or

(h)               health or health-related goods or services.

5          Application

(1)        In this section, relevant rate determination means:

(a)                a rate increase determination under section 78 of the Social Security (Administration) Act 1999; or

(b)               a rate reduction determination under section 79 of the Social Security (Administration) Act 1999;

that is made after this determination commences, in relation to a person whose rate of farm household allowance has been determined on the basis of an estimate of business income under section 68 of the Farm Household Support Act 2014.

(2)     For the purposes of a relevant rate determination, this determination applies to an amount described in subsection 4(2) paid before, on, or after the commencement of this determination, from the date the amount was paid.

(3)     For all other purposes, this determination applies to an amount described in subsection 4(2) paid after the commencement of this determination, from the date the amount was paid.


Social Security (Exempt Lump Sum General) (Agriculture) Determination 2020                2