4.1.3.30 Responsibilities of nominees
Responsibilities of nominees
When a nominee is appointed, the nominee is required to act in the best interests of the individual for whom they are a nominee, except where a payment nominee is appointed as a result of a benefit restriction notice issued in relation to the individual (4.4.10).
Services Australia must be satisfied that a proposed nominee understands the responsibilities they are taking on and appears capable of carrying them out.
Services Australia should give particular scrutiny to requests where the proposed nominee:
- runs a boarding or rooming establishment, or
- does not live in the same residence, or in close proximity to the individual.
Where Services Australia appoints a payment nominee following the issuing of a benefit restriction notice in relation to the individual, the payment nominee must apply any amount paid to them in accordance with a written direction given by Services Australia.
A nominee is required to advise of any matter that affects their ability to act as a nominee. Services Australia must review a nominee arrangement as soon as it receives any allegations of misuse of the individual's payment.
Act reference: FAAct section 57GI Loss of family assistance for individuals, section 57GIA Benefit restriction notice from AFP Minister, section 57GJ Benefit restriction notice from ASIO Minister
FA(Admin)Act section 219TJ Notification by nominee of matters affecting ability to act as nominee, section 219TN Duty of nominee to principal
Policy reference: FA Guide 4.4.10 Benefit restriction notice issued
Disclosure of information
Services Australia may disclose information in relation to an individual's FA payment/s to the individual's appointed nominee as if the nominee is the individual.
Act reference: FA(Admin)Act section 168(4) In spite of any other provision of this Part, the Secretary may disclose …, section 3(1)-'protected information'
Payment nominees
A payment nominee must keep a record of the expenditure of the individual's payments in case the arrangement needs to be reviewed. If a review is deemed necessary, Services Australia must send a notice to the nominee requesting a statement be made regarding their disposal of money paid under the nominee arrangement.
The nominee is obliged to comply with this request under legislation. If they fail to do so, penalty provisions apply.
Act reference: FA(Admin)Act section 219TK Statement by payment nominee regarding disposal of money
Policy reference: FA Guide 4.1.3.10 Payment nominees
Correspondence nominees
Where an individual is required to perform an act for the purposes of FA law, this can be actioned by a correspondence nominee on behalf of the individual.
Where Services Australia gives a notice to an individual under FA law to attend a particular place, their correspondence nominee may attend with them, if the individual so wishes.
Act reference: FA(Admin)Act section 219TG Actions of correspondence nominee on behalf of principal, section 219TI Compliance by correspondence nominee, 219TR Right of nominee to attend with principal
Policy reference: FA Guide 4.1.3.20 Correspondence nominees
Cancellation of arrangements
A nominee or the individual can cancel a voluntary nominee arrangement at any time in writing, over the phone or in person, except where a payment nominee is appointed as a result of a benefit restriction notice. The cancellation must be in writing to Services Australia.
However, care should be taken where an individual requests cancellation of their nominee arrangement if the nominee is a power of attorney or legally appointed guardian. In these cases, Services Australia should not cancel the nominee arrangement unless the individual provides evidence that the power of attorney or legal guardianship has been revoked, or if the nominee has been misusing the authority.
Act reference: FA(Admin)Act section 219TE Suspension and cancellation of nominee appointments