11.7.5 Payments Income Managed under the VIM Measure
Income managed payments under the VIM Measure
A person may choose VIM if, at the test time the person is an eligible recipient of a category H welfare payment.
Category I welfare payments (which includes category H welfare payments) are income managed under the VIM Measure:
- instalments of category I welfare payments (other than instalments of baby bonus and ABSTUDY with PES and living allowance) are income managed at a rate of 50%, and
- lump sums, instalments of baby bonus or ABSTUDY (with living allowance or PES) and relocation scholarship payments are income managed at a rate of 100%.
SS(Admin)Act section 123TK provides that a person is an 'eligible recipient' of a relevant welfare payment beginning on the start day for the payment and ending when the payment is cancelled. This means that even if the trigger welfare payment is suspended or reduced to a 'zero rate' for a period, the person is an eligible recipient during that period.
Act reference: SS(Admin)Act section 123TK Eligible recipient
Lump sums under the VIM Measure
Where a person subject to VIM is in receipt of a lump sum payment and their current and reasonably foreseeable priority needs have been met, it is acceptable to make that payment available to the person as an unrestricted direct payment if requested (see 22.214.171.124).