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 security notice issued in relation to the individual (4.4.10).
Centrelink must be satisfied that a proposed nominee understands the responsibilities they are taking on and appears capable of carrying them out.
Particular scrutiny should be given to requests where the nominee:
- runs a boarding or rooming establishment, or
- does not live in the same residence, or in close proximity to the individual.
Where a payment nominee is appointed following the issuing of a security notice in relation to the individual, the payment nominee must apply any amount paid to them in accordance with a written direction given by the Secretary.
A nominee is required to advise of any matter that affects their ability to act as a nominee. Any nominee arrangement must be reviewed as soon as any allegations of misuse of the payment are received.
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 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 Security notice issued
Disclosure of information
Information in relation to the individual's FA payment/s may be disclosed to their appointed nominee as if they are 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
The 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, Centrelink 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 purposes of FA law, this can be actioned by the correspondence nominee on behalf of the individual.
Where Centrelink 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
The nominee or the individual can cancel a nominee arrangement at any time, except where a payment nominee is appointed as a result of a security notice. The cancellation must be in writing to the Secretary. However, extreme care should be taken in the instance of a nominee that is a power of attorney or legally appointed guardian.
Act reference: FA(Admin)Act section 219TE Suspension and cancellation of nominee appointments