Restricted direct payment under income management

Restricted direct payment

A restricted payment may be made for a specific purpose directly to an income managed person's bank account (including a joint account) or, at their request (i.e. with their consent), to a third party, such as a nominee. This would usually occur where the person needs to make a payment in cash and other payment methods are not available.

An income managed person should discuss their need for a restricted direct payment with the delegate, and the delegate should seek evidence that there is a genuine need for a restricted direct payment.

Example: Tammy needs to pay for her son Tim's school excursion to the zoo and the school will only accept cash. Tammy provides the delegate with a notice from the school that the excursion is taking place and the cost of the excursion. The delegate is satisfied that Tammy has a genuine need of a restricted direct payment to meet this purpose, as education is a priority need, and makes a restricted direct payment to Tammy's bank account for that specific purpose.

Last reviewed: 11 November 2019