11.1.11.50 Disbursement of large residual income management account balances

Disbursement of large residual account balances

There may be cases where large amounts of money remain in a person's income management account after they cease to be income managed (e.g. if a large arrears payment has been made shortly before they ceased to be income managed). As any remaining funds MUST be disbursed within 12 months of the person ceasing to be income managed, in these cases instalment amounts greater than $200 will be necessary.

Example: Gordon has a balance of $6,500 in his income management account when he ceases to be subject to income management. This amount will be disbursed to Gordon as 26 fortnightly instalments of $250 per fortnight ($6,500 divided by 26 fortnights). As any remaining funds MUST be disbursed within 12 months of the person ceasing to be subject to income management, instalment amounts greater than $200 will be necessary.

Last reviewed: 11 November 2019