This note is not part of the regulations, but is intended to indicate their general effect.
These regulations, which come into force on 1 January 2009, are made under the Social Security Act 1964 (the Act). They declare certain items of cash assets—which would otherwise have to be considered in determining the appropriate rate of accommodation supplement granted under section 61EA of the Act—not to be a person's cash assets for the purposes of the Act.
The exempted items of cash assets are—
all of a redundancy payment not exceeding $25,000 (after the deduction of income tax) made to the person on or after 8 November 2008; and
$25,000 of a redundancy payment exceeding $25,000 (after the deduction of income tax) made to the person on or after 8 November 2008.
The exemptions apply in relation to a payment only from when the payment is made until the expiry of the ReStart Transitional Relief Programme established and approved by the Minister for Social Development and Employment under section 124(1)(d) of the Act.
A redundancy payment made to a person in 2 or more lump sums, or on a periodical basis, must for these purposes be treated as made when the first of the lump sums or periodical payments is received by the person.