8.4 Payment Methods
This chapter contains information on methods of payment, including handling payments in special circumstances.
Legislative provisions - general
The Administration Act provides a common framework for payments in which:
- Payments are made in arrears and by instalments of no more than 14 days.
- Instalments are generally paid to the person but the delegate may direct that they be paid to a nominee (1.1.N.80).
- Lump sum benefits are generally paid to the person but the delegate may direct that they be paid to a nominee.
- In cases of severe financial hardship, part or all of the first instalment may be paid in advance.
- Certain payments may be paid outside Australia (1.1.A.320).
- Where a DVA pension and specified social security pensions are both payable the social security instalments may be aligned with the DVA instalments.
- Social security payments are rounded to the nearest cent and any payment less than one dollar is rounded up to one dollar.
- Payments must be made into bank accounts unless the delegate exempts this at new claim for a period of 28 days.
- In defined and limited circumstances, some social security payments and the pension bonus may be paid to someone else after the death of the recipient.
- The Secretary directs that the relevant amount is to be paid in a different way other than by direct payment into an account.
Act reference: SSAct section 23(1)-'social security pension', section 23(1)-'social security payment'
Legislative provisions - payment specific
The following legislative provisions are payment specific:
- If PA is payable, the minimum instalment is the fortnightly PA rate.
- YA is generally paid to a parent of a person aged under 18 and not independent but the delegate may direct that it be paid to the person in some circumstances.
- TAL is paid in 4 annual instalments.
- FAA is generally paid as a reimbursement to the person after the journey has been made but the delegate may direct that it be paid to the transport operator before the journey.
Act reference: SSAct section 5(1)-'parent'