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.

11.7.3 VIM agreement

Note: Entrance to the income management regime closed 4 September 2023

Following commencement of the Social Security (Administration) Amendment (Income Management Reform) Act 2023, people currently subject to the income management regime can choose to move to the enhanced income management regime.

Please refer to Part 12 Enhanced income management regime.

Introduction

A person must enter into an agreement with the delegate before they are able to be income managed under the VIM measure. This agreement can only be entered into in person.

A VIM agreement comes into force on the start date specified in the agreement, as long as, on the start date specified, the conditions in SS(Admin)Act section 123UN(1) are satisfied in relation to the person (11.7.4).

Act reference: SS(Admin)Act section 123UN(1) A voluntary income management …

VIM agreement

A VIM agreement remains in force until terminated and allows for the income management of 50% of an instalment of a relevant welfare payment and 100% of an advance, lump sum and ABSTUDY (with living allowance or PES) payment (including arrears payments).

Where a person is identified as having barriers that may impede their capacity to enter into a VIM agreement, or is being subject to harassment or intimidation by another person, the delegate may refer the person to a social worker for further assistance.

Act reference: SS(Admin)Act section 123UN(1) A voluntary income management …

Start date

A VIM agreement can specify a future start date. For example, a delegate can enter into a VIM agreement with a compulsorily income managed person where the specified start date of the agreement occurs after the end of the compulsory income management period (11.7.4).

Example: Nina requests to enter into a VIM agreement knowing that her compulsory income management period is about to expire. The delegate at Centrelink enters into a VIM agreement with Nina while Nina remains on a compulsory income management measure and the specified start date in the VIM agreement occurs the day after Nina exits compulsory income management. The VIM agreement comes into force on the specified date and Nina experiences a seamless transition to VIM when she exits compulsory income management.

Adjustment period

When a person enters into a VIM agreement, there is a compulsory 13-week period during which they will be unable to terminate the agreement. This is to allow the person to adjust to income management.

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