4.3.9.50 Income from gifts, legacies, royalties & native title claims

Summary

This topic provides information on income from:

• gifts
• legacies
• royalties
• royalties paid to Indigenous people
• payments to Indigenous communities
• compensatory payments, and
• payments to Indigenous individuals.

Gifts

The following table shows how different gift situations are assessed as income for social security purposes.

Note: Prior to 1 July 2017, gifts received regularly from an immediate family member were reduced to a fortnightly equivalent and treated as income for benefit purposes.

Legacies

Amounts received by way of a legacy or inheritance is NOT treated as income whether received as a lump sum or by instalments.

Royalties

The following table shows how different royalty payment situations are assessed as income for social security purposes.

Note: A royalty payment could be a compensatory type payment. Refer to 'Compensatory payments' below.

Royalties paid to Indigenous people

The following table shows how different royalty payment situations, paid to Indigenous people, are assessed as income for social security purposes.

Note: A royalty payment could be a compensatory type payment. Refer to 'Compensatory payments' below.

Payments to Indigenous communities

Payments for claims or development activity to Indigenous communities are not treated as income of an individual person. Payments made to communities that are used for community purposes such as education or maintenance of community facilities are not assessable income for social security purposes.

Compensatory payments

Includes payments for loss of access to traditional land, suspension or extinguishment of native title whether those payments are received by way of royalty or other payments for a development activity or received as a result of a successful native title claim.

These compensatory payments ARE NOT assessed as compensation (1.1.C.240) for social security purposes.

It is likely that any payments resulting from successful native land title claims will be made to communities rather than individuals. When a payment is made to a community, the compensation should be assessed like the treatment of royalties, listed in the table above.

Where individual people receive compensatory amounts, either from the community or the compensation payer, Centrelink Help Desks should refer the details to DSS Means Test Policy Section for guidance.

Details about recognition of Indigenous native title rights are available from the National Native Title Tribunal including Indigenous land use agreements (ILUAs).

Payments to Indigenous individuals are assessed according to their purpose

Payments to Indigenous individuals are assessed according to their purpose as outlined under the following 3 headings:

• commercial payments
• payments for services rendered, and
• reimbursements for expenses incurred.

Commercial payments

Individuals may receive payments on a commercial basis. One example may be gate takings. Gate takings are contributions or fees from people accessing traditional Indigenous land. Certain payments made under native title agreements may also have a commercial character.

Commercial payments are assessable income when received by an individual, but not when received by the community.

When an individual is employed by the local community or land council the amount paid is employment income.

Payments for services rendered

Payments for heritage surveys, site clearances, cultural training, interpretation at meetings, monitoring, employment by the local council, sitting fees where the payments are in recognition of the expertise (cultural or otherwise) of the individual are generally treated as income for social security purposes. Sitting fees may be paid for attending meetings with state government agencies or to an individual to sit on a committee or council. Where the person is self-employed certain allowable deductions may apply.

The payments are treated as employment income and assessed from the beginning of the entitlement period in which it is paid and attributed forward for the number of days for which it was paid. Where the payment is paid but is NOT paid in respect of a particular period, the payment will be attributed over a period not exceeding 52 weeks as appropriate in the circumstances. In most situations, the basis of determining the length of the attributions will depend on the nature of the employment income.

Please see 'Reimbursement for expenses incurred' below which details situations where the income is not counted for social security purposes.

Reimbursements for expenses incurred

Where payments are made to cover out-of-pocket expenses these payments are not considered to be income. Any excess amount above out-of-pocket expenses incurred should be treated as income. For example, reimbursement of travel and accommodation costs for attendance at meetings with government and representative organisations are excluded as income, as the person will not gain additional benefit from the payment.