The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia. Guidance on the allocation of income managed funds

Allocation of income managed funds

When the delegate meets with a person to discuss the allocation of income managed funds to be directed to priority needs, they will need to consider 2 fundamental principles.

  • The delegate must have regard to the best interests of the person, with particular regard to the priority needs of the children in the care of the person (as per SS(Admin)Act section 123YB).
  • If the delegate is aware of any unmet priority needs of the person, their partner, their children or other dependants, appropriate action must be taken towards meeting those needs.

With these principles in mind, the delegate should consider the views of the person, who retains fundamental responsibility for their own welfare and that of their children, other dependants and their partner.

As income managed funds will amount to between 50 and 100% of the person's relevant income support and family assistance payments, the costs of meeting a person's priority needs may be more than the income managed amount. In these situations, the person would need to use their non-income managed funds (discretionary funds), and any unrestricted funds, to meet the difference.

If appropriate, the delegate can offer voluntary Centrepay deductions for amounts deducted from non-income managed funds, but there is no compulsion for the person to agree to these deductions.

Act reference: SS(Admin)Act section 123YB Secretary must have regard to the best interests of children

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