4.3.2.31 Income exempt from assessment - specifically approved

Summary

This topic provides information about the following income with specifically approved exemption from the income test:

• ministerial determination: 'approved' scholarships awarded outside Australia
• ministerial determination: 'approved' personal care support schemes
• secretarial approval: credits from 'approved' exchange trading systems
• secretarial determination: lump sums exempted under SSAct section 8(11)
• secretarial determination: specified scholarships, and
• solar feed-in tariffs.

Information about other income exempt from assessment can be found in 4.3.2.30.

Ministerial determinations: 'approved' scholarships awarded outside Australia

Certain scholarships that have been approved by the Minister for Social Services are NOT assessed for income test purposes.

Under current Administrative Arrangements Orders (AAOs), determinations are signed by the Secretary or the relevant delegate in DSS. Approval of these schemes for income test purposes is obtained through Means Testing Section in DSS following referral from the appropriate Centrelink Help Desk.

Ministerial determination: 'approved' personal care support schemes

The Minister for Social Services may approve personal care support schemes under SSAct section 35A. Payments from 'approved schemes' that are paid towards the cost of personal care support services and do not provide income support for the person who is receiving care are exempt from the income test under SSAct section 8(8)(zi), but ONLY in the hands of the person who is receiving care. Payments that do not belong to the person receiving care are not exempt under section 35A. Payments are not exempt in the hands of the carer.

Agencies and organisations that provide assistance to people with care needs can apply to have their schemes considered as 'approved schemes' under section 35A. Approval of these schemes for income test purposes is obtained through Means Testing Section in DSS.

The Minister for Social Services may approve personal care support schemes for both groups and individuals.

Under current Administrative Arrangements Orders (AAOs), DSS is responsible for administering income support payments under the social security law. Determinations are signed by the Minister for Social Services.

Ministerial determination: date of effect of determination

The Minister's power, under SSAct section 35A to determine an 'approved personal care support scheme' is exercised by making a legislative instrument that is lodged with the Federal Register of Legislation. A determination, once made, is subject to disallowance by either House of Parliament in accordance with the Legislation Act. The interaction between section 35A and the date of effect rules in the SS(Admin)Act, mean that a rate increase decision or a resumption of payment decision after suspension resulting from the impact of section 35A determination can only be backdated in some cases, for up to 13 weeks, to the date the section 35A determination causes the relevant rate increase decision or resumption decision.

Group personal care support schemes approved by ministers are as follows:

Individual personal care support schemes

Individuals with individually exempted schemes will hold, or have access to, documentation signed by the Minister for Social Services.

Secretarial approval: approved exchange trading systems

Credits received from participation in approved ETS are NOT treated as income for social security purposes (see list below for approved ETS).

Where the ETS does not have specific approval, its credits are assessed as income. The value of one credit is usually equivalent to one dollar unless there is another means of placing a reasonable dollar value on the credits.

IF both cash and credits in ETS schemes are received, the cash amount IS assessed as income.

Approved exchange trading systems

CURRENT approved ETS are listed in the table below.

Approved ETS that are NOT CURRENT are listed in the table below.

Approval of these schemes for income test purposes is obtained through Means Testing Section in DSS.

Note: Although these schemes are approved for income testing purposes this does not mean that they are approved for meeting mutual obligation requirements.

Participation in this type of scheme is not an approved activity and is therefore not an acceptable activity for inclusion in a Job Plan. This is because participation in such a scheme does not help or encourage job seekers to take up paid employment and leave income support. Because the remuneration provided is not treated as income under the SSAct, a participant can continue to receive their full rate of payment as well as their 'trade dollars', which could in fact provide an incentive for them to remain on income support. However, a job seeker can participate in such a scheme for up to 20 hours per week provided they continue to meet mutual obligation requirements and demonstrate their commitment to obtaining full-time paid employment.

Secretarial determination: lump sums exempted under section 8(11)

For the list of exempt lump sums see 4.3.2.35.

Further references to more general exempt lump sums (such as a non-periodical lottery win) can be located in 4.3.2.30 Income exempt from assessment - legislated, details in Exempt lump sums.

Note: The initial exemption of a lump sum amount from the income test does NOT mean that any on-going income generated by the lump sum is exempt, nor does it mean that the asset the lump sum turns into is exempt. The continuing assets and income tests treatment will be determined by how a person makes use of the funds. The funds may be used to obtain additional assets such as a car. For a purchase such as this the assets test would apply. Or, the funds may be placed in a financial investment. The funds have then become a financial asset (refer to SSAct section 9(1) for all the types of financial assets), assessable as an asset and subject to the income test deeming rules.

Secretarial determination: specified scholarship

Certain scholarships that have been determined by the Secretary are NOT assessed for income test purposes.

The Social Security (Indigenous Student Assistance Scholarships - Excluded Amounts) Instrument 2016 specifies that the Indigenous Commonwealth Education Costs Scholarship, Indigenous Commonwealth Accommodation Scholarship and the Indigenous Commonwealth Reward Scholarship are not income for the purposes of the SSAct.

Solar feed-in tariffs

Solar feed-in tariffs paid as an electricity account credit are not assessed as income for pension purposes. Solar feed-in tariffs paid as cash to pensioners (for example, by cheque or by direct deposit) are counted as income for pension purposes.

Each solar feed-in tariff paid as cash is considered as income for 12 months.