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.

12.4.2 Deductions & withholdings - enhanced income management regime

Overview

Individuals subject to the enhanced income management regime can ask Services Australia to deduct or withhold an amount from their welfare payments to use for payment of particular expenses. These expenses include:

  • Centrepay
  • Rent Deduction Scheme
  • Child support
  • Centrelink debts

Once an individual's gross payment entitlement is determined each fortnight, the qualified and unqualified portion will be determined before deductions or withholdings are processed. Once the qualified and unqualified portion have been calculated, any deductions or withholdings set up by the individual will be taken from the qualified portion. However, when a person's deductions exceed the qualified portion, the deductions will then be taken from the unqualified portion.

After deductions and withholdings, the balance of the qualified portion will be paid to the person's BasicsCard bank account and the unqualified portion will be paid to their unrestricted account. The exact amount that will be paid into these accounts will vary, depending on the amount of a person's deductions.

Act reference: SS(Admin)Act section 123SJ Category B welfare payment to be split into qualified and unqualified portions, section 123SK Payment of balance of qualified portion of category B welfare payment, 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, section 123SP Category G welfare payment to be split into qualified and unqualified portions, section 123SQ Payment of balance of qualified portion of category G welfare payment

Last reviewed: