INCOME MANAGEMENT REGIME

WHAT YOU SHOULD KNOW

WHO

People who receive assistance from these payment types:

• Newstart• Youth Allowance• Parenting Payment Partnered/Single

AND

WHO?

Under Child Protection Rules• If you are referred by a child protection

agency you will come under income management rules.

• If payments are cancelled the agency will be notified that there is no income from social security to the family.

WHO?

Under Vulnerable Recipient Rules• Live in one of the locations determined and

receiving payments of social security benefit or pension

BUT• You may apply to have the determination for

you varied or revoked, but must wait 90 days between requests.

WHO?Under School Attendance Rules

• If your child attends a school in a declared area and has an unsatisfactory attendance record you will firstly be given a formal warning, if attendance is still unsatisfactory, income management will apply.

• In general terms 5 UNEXPLAINED absences in one school term is unsatisfactory.

• Always notify the school when children are sick and keep your own diary of illness dates and doctors visits, medicine etc to explain the absence if needed.

• You must be issued a formal warning first.

WHO?Under School Enrolment Rules

If requested you must provide evidence of enrolment in school for your child. This may be in the form of a written letter from the school. If requested do not ignore, as even if your child is enrolled and attending, failure to respond to a request for evidence will see income management rules apply. Keep copies of any letters you send under this situation, and note the day posted or dropped off.

WHO?

Under Long Term Welfare Rules

• If aged 15 – 24 claiming for 26 out of the last 52 weeks.• If aged 24- Under Pension age, claiming the payment

for 52 out of the last 104 weeks. AND

• Live in a area that income management has been determined to be in effect.

• Are not an exempt welfare recipient***

WHAT?• Income management involves Centrelink allocating your

payments to a bank system, payments are made on your behalf from the balance, basics cards are given and select stores allow for purchases of items as long as they are not unallowable items such as alcohol, cigarettes, pornography or gambling services.

It involves explaining where every cent goes and being limited in stores you can buy goods from. It makes paying for items not available at a supermarket much more involved and time consuming.

WHERE?Current locations where income management is in effect.

9 Specified vulnerable income management area – Northern TerritoryThe Northern Territory is specified for the purposes of paragraph 123UCA(1)(b) of the

Act.

Schedule 1 Specified area ― New South Wales1. BankstownSchedule 2 Specified areas ― Queensland1. Logan2. RockhamptonSchedule 3 Specified area ― South Australia1. PlayfordSchedule 4 Specified area ― Victoria1. Greater SheppartonRecently added WA locations: Laverton Shire and Ngaanyatjarra Lands (as of 15/04/13)

**Exempt Welfare Recipient123UGC Exempt welfare payment recipient—persons without dependent children• Full time student or apprentice• During the 12mths prior have worked at least

15hrs weekly for at least 26wks on at least min wage.

• Undertaking an activity that is approved, specified by the minister.

**Exempt Welfare Recipient123UGD Exempt welfare payment recipient—persons with dependent children• Child/ren enrolled in school and in the 2 terms prior had no

more than 5 absences for reasons that are not satisfactory.• Child/ren had more than 5 absences but person taking

reasonable steps to ensure child attends• Child/ren covered by a schooling arrangement that is

acceptable under State/Territory Law. • Child/ren participating in an activity specified by the minister

AND

**Exempt Welfare Recipient cont’

123UGD Exempt welfare payment recipient—persons with dependent children cont’• All dependant children are participating in the

required number of activities (ie. Preschool or kinder, health check ups, playgroups)

• No indications of financial vulnerability^^ in the period 12 months prior exist.

^^Assessing Financial Vulnerability

Social Security (Administration) (Exempt Welfare Payment Recipients - Persons with Dependent Children) (Indications of Financial Vulnerability) Principles 2010 Section 4 sets out the purpose of the Principles: as explained in section 4, Part 2 of the Principles (sections 5 to 8) sets out the decision-making principles that the Secretary must comply with in deciding whether he or she is satisfied that there have been no indications of financial vulnerability in relation to a person during the 12-month period ending immediately before the test time under subsection 123UGD(1) of the Act.

http://www.comlaw.gov.au/Details/F2010L02229

Part 2 Decision-Making Principles

• 5 Financial exploitationThe Secretary must consider whether the person experienced financial exploitation during the relevant period.

• 6 Priority needsThe Secretary must consider:(a) the priority needs, during the relevant period, of the person and the person’s specified dependants (if any); and(b) whether, during the relevant period, the person was applying appropriate resources to meet some or all of those priority needs. However, paragraph 6(b) explicitly recognises that the goal of meeting all priority needs may not always be met where a person has limited financial resources.

Part 2 Decision-Making Principles

7 Money management strategiesThe Secretary must consider:(a) what, if any, strategies (however described) the person used, during the relevant period, to manage their financial resources; and(b) whether it is likely that the person will continue to use those strategies, or similar strategies, to manage their financial resources in the foreseeable future.Examples for paragraph (a)· A personal or household budget.· A financial plan.· Paying bills or other expenses through Centrepay.· Paying bills or other expenses by direct debit from a bank account.· Arranging to pay major bills or debts by instalments.· Undertaking a course to learn or update financial skills.· Using lay-by services.· Using a BasicsCard as part of an income management arrangement under Part 3B of the Act.

Part 2 Decision-Making Principles

8 Changes to welfare payment arrangements

Urgent payments(1) The Secretary must consider:(a) whether the person received more than one payment in relation to their social security entitlement in any fortnight during the relevant period, and the reasons for each of those payments; and(b) if the person requested that he or she be paid as described in paragraph (a) during the relevant period, and that request was rejected — the reasons for each rejection.Changes to payment payday(2) The Secretary must consider how many times (if ever) the person requested that his or her usual social security payment payday be changed during the relevant period, and the reasons for each request. Subsection 8(1) provides that the Secretary must consider whether the person has made requests to Centrelink for an urgent payment of their regular welfare payment during the relevant 12-month period

Just remember you do have rights!Ask to be assessed as exempt or to have the decision

revoked.

Don’t be afraid to ask for help EVER!

NO NO NO

http://www.dss.gov.au/our-responsibilities/families-and-children/programs-services/income-management/income-management-fact-sheets