22.214.171.124 How residual income managed funds are disbursed
Disbursement of residual funds
SS(Admin)Act section 123WJ provides several options for disbursement. The 2 most commonly used options are payments made by instalment and the payment of a single lump sum. Other methods are discussed in 126.96.36.199 and 188.8.131.52.
Note: It is possible for a combination of these methods to be used. For example, although a person may have their residual funds disbursed in fortnightly instalments, it is also possible to make a payment to a third party for the purchase of non-excluded items, e.g. a fridge or television.
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
Single lump sum payment
Under the income management measures other than VIM, a lump sum payment may be made if the residual amount is equal to or less than $200, or where the delegate is satisfied that there are special circumstances that warrant a lump sum payment. The lump sum payment must be paid within 12 months of the date that income management ceases.
The VIM initiative provides the additional option of paying the total amount of a person's residual funds in one single lump sum payment, regardless of the amount.
Note: This method should not be used where the delegate has concerns that the person may have volunteered for income management for a short time, specifically to access residual funds from an earlier period of compulsory income management.
Payments made by instalment
If the residual amount is greater than $200, or the delegate has concerns in relation to the payment of a lump sum to a person subject to the VIM initiative, then the residual amount will be paid over a period of no longer than 12 months from the date that a person ceases to be subject to income management.