The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

4.1.3.10 Payment nominees

Protection of individual's interests

Generally, an individual who wants their FA payments, including advance payments, to go to another person on an ongoing basis can request the appointment of a 'payment nominee'. Centrelink should consider the circumstances and wishes of the individual and other avenues of payments to a third party to ensure that the proposed payment nominee arrangement is the most appropriate arrangement for the individual.

In practice, an individual who is eligible for FTB is unlikely to be in a situation where payment should be directed to a nominee for their instalment payments. If a nominee is needed, it is likely that the individual is unable to provide enough care for a child to meet the FTB child eligibility requirements, or Centrelink has appointed a payment nominee due to the issuing of a security notice (4.4.10).

To appoint a payment nominee (other than in relation to a security notice), the individual should complete the relevant form. The nominee is required to indicate their acceptance of the appointment and their duties under FA law via written consent. Centrelink must send Letters confirming the nominee appointment to both the individual and the nominee.

An appropriate payment nominee is not limited to being an individual. It can be a community organisation or body corporate. When appointing a nominee, Centrelink should:

  • investigate what individual or organisation might be the most appropriate payment nominee in the circumstances, and
  • obtain any necessary information that may be needed to make this assessment (this includes making the individual aware of the intention to appoint a nominee).

If a case involves a child of an Aboriginal or Torres Strait Islander group or a refugee child, then a social worker should be involved and consult with:

  • an ISO on any relevant cultural issues, or
  • an MSO to identify any relevant cultural factors.

The Secretary may suspend or cancel the appointed payment nominee at any time.

Act reference: FAAct section 57GI Loss of family assistance for individuals on security grounds, section 57GJ Security notice from Home Affairs Minister

FA(Admin)Act section 219TB Appointment of payment nominee, section 219TD Provisions relating to appointments, section 219TE Suspension and cancellation of nominee appointments

Policy reference: FA Guide 1.1.C.90 Care (FTB), 2.1.1.110 Death of an FTB or regular care child, 4.1.3 Nominees, 4.1.3.30 Responsibilities of nominees, 4.3.6 Payments to a third party, 4.4.10 Security notice issued

The wishes of the individual

Centrelink must also take into consideration the wishes (if any) of the individual, which may include the consent of the individual, before appointing a person as the individual’s payment nominee, except where the nominee is being appointed as a result of a security notice. Although the individual’s consent is not strictly required, whenever there is any question of the individual's capability to express their wishes or consent to the appointment of a nominee, or any concerns as to an existing arrangement, Centrelink must investigate the situation further. Where the individual is deemed incapable of expressing their wishes or providing consent (other than in relation to a security notice), Centrelink must obtain documentary evidence to support any decision to appoint a nominee.

There may be times where an individual is not capable, for example due to an intellectual/physical constraint, of expressing their wishes or providing consent to the appointment of a nominee. In these cases, Centrelink may appoint a nominee on behalf of the individual with attention to supporting evidence and where Centrelink is fully satisfied that the nominee is required and will act in the individual's best interests. The decision made by Centrelink to appoint a nominee in these circumstances must be fully documented.

Where an individual has a psychiatric disability, a nominee can be appointed where there is a court-appointed arrangement such as a Guardianship Order provided by a Mental Health Tribunal.

Where an individual is subject to a security notice

Where an individual is subject to a security notice (4.4.10), Centrelink may appoint a payment nominee and direct that any FA payments be made to the payment nominee.

In such situations, the Centrelink is not required to consider the wishes of the individual when appointing the payment nominee.

Act reference: FAAct section 57GI(5) For the purposes of subsection (4), paragraph 219TD(2)(b) …, section 57GI(6) For the purposes of subsection (4), section 219TN …

FA(Admin)Act section 219TD Provisions relating to appointments, section 219TN Duty of nominee to principal

Evidence of incapability

To decide whether an individual is incapable of expressing their wishes in relation to the appointment of a nominee, Centrelink must have sufficient evidence.

Examples of what may contribute to evidence may be:

  • reliable medical evidence on file
  • recent certification by a medical practitioner
  • reliable documentation or order officially appointing a guardian or administrator, such as a Public Trustee or Guardianship Board, or
  • some other authoritative source, such as a social work report.

Other arrangements

There are some instances where the appointment of a nominee may not be the most appropriate option to meet the best interests of the individual.

When responding to a third party requesting information regarding the individual's payments, it may be more appropriate to consider the release of information under implied consent arrangements rather than by appointing a nominee.

Example: An individual is in a coma and someone needs to obtain information about their payment details on their behalf. A hospital social worker calls Centrelink in an attempt to obtain the information. It may be appropriate in this case for a Centrelink worker to disclose the individual's payment details to the hospital worker.

Act reference: FA(Admin)Act section 168(1) Disclosure of information by Secretary

Privacy Act 1988 section 14 Australian Privacy Principles, Schedule 1 clause 6 Australian Privacy Principle 6—use or disclosure of personal information

Policy reference: Australian Privacy Principles guidelines

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