Treatment of certain lump sum payments
1072A Treatment of certain lump sum payments
This section applies if:
a person has claimed a social security pension or a social security benefit; and
on or after the first day of the period of 12 months ending at the end of the day the person made the claim, the person receives an amount of income in the form of a lump sum payment of arrears of periodic payments; and
the lump sum payment is not income within the meaning of Division 1B or 1C of this Part; and
the lump sum payment is not in relation to remunerative work undertaken by the person; and
the lump sum payment is not an exempt lump sum; and
the lump sum payment is not a payment of compensation.
The Secretary may determine that the person is taken to have received the lump sum payment over such period, not exceeding 52 weeks, as the Secretary determines.
The period determined by the Secretary must begin on the day on which the person received the lump sum payment.
For each day in the period determined by the Secretary, the person is taken to have received an amount of ordinary income worked out by dividing the amount of the lump sum payment by the number of days in that period.
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