4.3.6 Payments to a third party

Summary

In certain circumstances, payments of FTB, CCS and ACCS can be paid to a third party on behalf of the individual (1.1.I.90). As some individuals are vulnerable to exploitation, this should be done in a way that does not conflict with the intention of the inalienability provisions of the FA(Admin)Act. The inalienability rule will not be infringed where payments are made in accordance with a payment nominee arrangement. Processes should, as far as possible, put individuals in control of their own finances.

Note: Inalienability is not infringed by Centrelink appointing a nominee (1.1.N.20) on behalf of an individual. Under the nominee provisions in the FA law, the consent of an individual is not required.

In practice, a person who is eligible for FTB is unlikely to be in a situation where payment should be directed to a third party. If a third party arrangement is needed, it is likely that the person is unable to provide enough care for a child to meet the FTB child eligibility requirements and so careful consideration should be given before making these arrangements.

Circumstances where payment can be made to another person or party

Payment to another person (1.1.P.80) or party should only occur if:

• there is a group payment arrangement (that is an agency arrangement such as Centrepay)
• the payment is in accordance with a payment nominee arrangement, or
• the individual is incapable of managing their financial affairs and there is a formal guardianship arrangement (including court appointed arrangements).

Payment nominees

An individual who wants their payments, including advance payments, to go to another person on an ongoing basis has the option of proposing a payment nominee. However, a nominee must be appointed by Centrelink. In determining whether to appoint a payment nominee, consideration should be given to the circumstances of the individual and other avenues of payments to a third party to ensure that a nominee arrangement is the correct arrangement for the individual. The nominee must consent to being a nominee. Centrelink must consider the individual’s wishes before making the appointment, except where the nominee is being appointed as a result of a security notice.

While Centrelink generally needs to take into account the individual’s wishes before making an appointment, ultimately the individual does not have to consent or accept the appointment.