Document ID: chunk:federal_register_of_legislation:F2017C01107:reg:5:p1
Version: federal_register_of_legislation:F2017C01107
Segment Type: reg
Provision Reference: reg 5 (pt 1/2)
Character Range: 4351–7007

5  Exempt lump sum
 (1) Subject to subsection (2), for the purposes of paragraph 8(11)(d) of the Act, the gross amount of a payment covered by subsection (3) or another provision of this instrument:
 (a) is an exempt lump sum; and
 (b) unless paragraph (c) applies—is reduced to the extent that the payment represents:
 (i) lost earnings or lost capacity to earn; or
 (ii) a lump sum calculated at a particular rate over a particular period, instead of periodic payments for the same period; and
 (c) if:
 (i) the payment to any extent represents the settlement of a claim relating wholly or partly to economic loss (whether the settlement is by consent judgment or otherwise, and whether or not the settlement is accompanied by an admission of liability); and
 (ii) the settlement does not identify a component for lost earnings or lost capacity to earn; and
 (iii)  the settlement does not represent a lump sum calculated at a particular rate over a particular period, instead of periodic payments for the same period;
  is reduced by an amount equal to 50% of so much of the payment as represents that settlement.
 (2) The gross amount of a payment covered by section 7 is an exempt lump sum, and is not reduced under paragraph (1)(b) or paragraph (1)(c).
 (3) For the purposes of subsection (1), this subsection covers the following payments:
 (a) a payment made under the law of the Commonwealth, or a State or Territory, for a personal injury suffered, or a disease or condition contracted, as a result of the commission of an offence;
 (b) a payment made on the death of a close relative for pain and suffering, or expenses related to the relative's medical treatment or funeral:
 (i) under the law of the Commonwealth, or a State or a Territory; or
 (ii) in accordance with an international agreement to which Australia is a party that applies to air travel;
 (c) a payment made under the law of the Commonwealth, or a State or Territory, for discrimination, harassment, a breach of human rights or breach of privacy;
 (d) a payment of compensation made under the Fair Work Act 2009 in respect of non‑economic loss, other than compensation paid to a person for being unfairly dismissed (within the meaning of that Act);
 (e) any of the following payments in respect of loss as a result of misconduct in the provision of professional services:
 (i) a payment of compensation;
 (ii) a payment under an insurance scheme that applies to particular professional services;
 (iii) the settlement of a claim for damages (whether or not accompanied by an admission of liability).
 (4) A payment mentioned in paragraph (3)(b) includes a one‑off payment which