11.1.4.30 Removal of payment nominee arrangements for income managed people

Removal of payment nominee arrangements for income managed people

Care needs to be taken to ensure that payment nominee arrangements are not used as a way to avoid income management. If a person who is about to commence income management, or is subject to an income management measure, seeks to have a payment nominee appointed, and this person would be an excluded Part 3B payment nominee (11.1.4.10), the delegate should have regard to this in deciding whether to appoint the third party to be the payment nominee of the person.

If a person has been referred to income management by a case worker in a declared child protection area by the Families Responsibilities Commission (FRC) in Queensland, or has been determined to be a VWPR by a Centrelink social worker, and the person has an excluded payment nominee, the delegate should consider whether that nominee is acting in the best interests of the person.

Where the delegate determines that the nominee arrangements are not working in the best interests of the person and their children, the payment nominee arrangement should be cancelled (8.5.3). Care will need to be taken in making a determination to cancel the payment nominee arrangements and potentially income manage the person. The negative consequences of direct payment of a person's discretionary funds to the person should be weighed up by the delegate, prior to the cancellation of the nominee arrangements.

Example: Paul is income managed under the Disengaged Youth Measure and is receiving YA. Paul lives in the Northern Territory and his Aunt Kate, who recently moved to South Australia (and is not subject to income management), is Paul's payment nominee.

On receipt of a notice to income manage Paul's payment, the delegate reviews his payment nominee arrangement to see whether Paul's aunt is still able to act in his best interests. If the review suggests that Paul's aunt is not acting in his best interests, prior to revoking his nominee arrangements making Paul subject to income management the delegate should determine whether Paul will be able to manage the 50% of discretionary funds himself.

Act reference: SS(Admin)Act Part 3B Income management regime, section 123TC-'excluded Part 3B payment nominee'

Last reviewed: 9 November 2020