18.104.22.168 Factors to consider when disbursing income managed funds
Factors to consider when disbursing funds
When a person ceases to be income managed, they are to be advised to contact the delegate about the payment of their income management account balance. The individual can request an exit interview to discuss the transition to standard payment arrangements and discuss the final disbursement of any remaining funds in the income management account. If the person does not attend this interview, or make contact with the delegate within 60 days, then the delegate can commence disbursement of the income management funds.
Note: The period the delegate may wait before setting up the disbursement process can be no longer than 60 days from cessation of payment.
The delegate should consider the reason for a person exiting income management and whether the person is likely to become subject to income management again within 60 days, prior to deciding to disburse a person's funds.
If during this 60-day period, the person recommences income management under either the same or a different measure, the funds will remain in the income management account and continue to be subject to income management.
Example: Alex has exited income management because he has obtained full-time employment. He has $800 remaining in his income management account. The delegate has commenced to disburse these funds in instalments to Alex's bank account however, there is still $200 remaining in his income management account when he recommences income management one month later. The delegate stops the next disbursement and the $200 remains in Alex's income management account and is managed along with Alex's other income managed funds.
Note: It is NOT a rule that the delegate must wait 60 days in all cases. Generally, if the delegate is satisfied that a person who has ceased to be subject to income management is unlikely to become subject to income management again, the person's residual income managed funds should be disbursed in accordance with the SS(Admin)Act section 123WJ (22.214.171.124).
Act reference: SS(Admin)Act section 123WJ Payment of credit balances of income management accounts-person ceases to be subject to the income management regime