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.

12.3.4.20 Qualified & unqualified portion of welfare payments - long-term welfare payment recipient

Qualified & unqualified portion

For individuals subject the enhanced income management regime under the LWPR measure, category D payments (12.2.2) will be split into a qualified and unqualified portion (12.2.5).

For welfare payments received in instalments (such as fortnightly payments), the qualified portion is 50%. Where a person receives a lump sum payment of a welfare payment, the qualified portion will be 100%.

The unqualified portion of the person's welfare payment will be 100% minus the qualified portion (that is, 50% for instalments and 0% for lump sum payments).

In limited circumstances, the Secretary may make a determination temporarily varying the qualified and unqualified portion of a person’s payments.

The balance of the qualified portion of a person's welfare payments will be paid into their BasicsCard bank account (12.2.1). It can be used to purchased anything other than excluded goods, excluded services, or cash-like products that can be used to purchase excluded goods or excluded services.

The unqualified portion will be paid into the person's unrestricted bank account and may be used at their discretion.

Act reference: SS(Admin)Act section 123SM Category D welfare payment to be split into qualified and unqualified portions, section 123SN Payment of balance of qualified portion of category D welfare payment

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