9.2.5 Protection of Principals & Nominees

Introduction

When a nominee is appointed, the nominee is required to act in the best interests of the principal (the recipient, whether a primary, secondary or tertiary claimant for PLP or a DAPP claimant).

Centrelink must be satisfied that a proposed nominee understands the responsibilities they are taking on and appears capable of carrying them out.

If Centrelink has given the nominee a notice under PPLAct section 288 (9.2.4) and the nominee notifies Centrelink of an event or change of circumstances that affects, or is likely to affect, their ability to continue to be a nominee or fulfil nominee responsibilities, Centrelink may suspend or cancel their appointment.

If any allegations of misuse of the payment by a nominee are received, the nominee arrangement must be reviewed immediately.

The principal is not guilty of an offence under the PPLAct where the offence is due to the correspondence nominee's act or omission. Conversely, the nominee is not subject to criminal liability under the Act because of an act or omission of the principal or anything the nominee has done in good faith in their capacity as nominee.

Act reference: PPLAct Part 6-2 Division 5 Other matters relating to nominees

Last reviewed: 3 July 2017