8.4 Payment methods

Introduction

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 $1 is rounded up to $1.
• 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.

Legislative provisions - payment specific

The following legislative provisions are payment specific:

• 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.