Information about Income Management and what the indicators are to be exempt.

1. INCOME MANAGEMENT REGIME
WHAT YOU SHOULD KNOW

2. WHO
People who receive assistance from these
payment types:
• Newstart
• Youth Allowance
• Parenting Payment Partnered/Single
AND

3. WHO?
Under Child Protection Rules
• If you are referred by a child protection
agency you will come under income
management rules.
• If payments are cancelled the agency will be
notified that there is no income from social
security to the family.

4. WHO?
Under Vulnerable Recipient Rules
• Live in one of the locations determined and
receiving payments of social security benefit
or pension
BUT
• You may apply to have the determination for
you varied or revoked, but must wait 90 days
between requests.

5. WHO?
Under School Attendance Rules
• If your child attends a school in a declared area and has
an unsatisfactory attendance record you will firstly be
given a formal warning, if attendance is still
unsatisfactory, income management will apply.
• In general terms 5 UNEXPLAINED absences in one school
term is unsatisfactory.
• Always notify the school when children are sick and keep
your own diary of illness dates and doctors
visits, medicine etc to explain the absence if needed.
• You must be issued a formal warning first.

6. WHO?
Under School Enrolment Rules
If requested you must provide evidence of enrolment
in school for your child. This may be in the form of a
written letter from the school.
If requested do not ignore, as even if your child is
enrolled and attending, failure to respond to a
request for evidence will see income management
rules apply.
Keep copies of any letters you send under this
situation, and note the day posted or dropped off.

7. WHO?
Under Long Term Welfare Rules
• If aged 15 – 24 claiming for 26 out of the last 52
weeks.
• If aged 24- Under Pension age, claiming the
payment for 52 out of the last 104 weeks.
AND
• Live in a area that income management has been
determined to be in effect.
• Are not an exempt welfare recipient***

8. WHAT?
• Income management involves Centrelink allocating
your payments to a bank system, payments are made
on your behalf from the balance, basics cards are given
and select stores allow for purchases of items as long
as they are not unallowable items such as
alcohol, cigarettes, pornography or gambling services.
It involves explaining where every cent goes and being
limited in stores you can buy goods from. It makes paying
for items not available at a supermarket much more
involved and time consuming.

9. WHERE?
Current locations where income management is in effect.
9 Specified vulnerable income management area – Northern Territory
The Northern Territory is specified for the purposes of paragraph 123UCA(1)(b) of the
Act.
Schedule 1
1.
Bankstown
Schedule 2
1.
2.
Specified areas ― Queensland
Logan
Rockhampton
Schedule 3
1.
Specified area ― New South Wales
Specified area ― South Australia
Playford
Schedule 4
1.
Specified area ― Victoria
Greater Shepparton
Recently added WA locations: Laverton Shire and Ngaanyatjarra Lands (as
of 15/04/13)

10. **Exempt Welfare Recipient
123UGC Exempt welfare payment recipient—
persons without dependent children
• Full time student or apprentice
• During the 12mths prior have worked at least
15hrs weekly for at least 26wks on at least min
wage.
• Undertaking an activity that is
approved, specified by the minister.

11. **Exempt Welfare Recipient
123UGD Exempt welfare payment recipient—persons
with dependent children
• Child/ren enrolled in school and in the 2 terms prior
had no more than 5 absences for reasons that are not
satisfactory.
• Child/ren had more than 5 absences but person taking
reasonable steps to ensure child attends
• Child/ren covered by a schooling arrangement that is
acceptable under State/Territory Law.
• Child/ren participating in an activity specified by the
minister
AND

12. **Exempt Welfare Recipient cont’
123UGD Exempt welfare payment recipient—
persons with dependent children cont’
• All dependant children are participating in the
required number of activities (ie. Preschool or
kinder, health check ups, playgroups)
• No indications of financial vulnerability^^ in
the period 12 months prior exist.

13. ^^Assessing Financial Vulnerability
Social Security (Administration) (Exempt Welfare
Payment Recipients - Persons with Dependent Children)
(Indications of Financial Vulnerability) Principles 2010
Section 4 sets out the purpose of the Principles: as explained
in section 4, Part 2 of the Principles (sections 5 to 8) sets out
the decision-making principles that the Secretary must comply
with in deciding whether he or she is satisfied that there have
been no indications of financial vulnerability in relation to a
person during the 12-month period ending immediately
before the test time under subsection 123UGD(1) of the Act.
http://www.comlaw.gov.au/Details/F2010L02229

14. Part 2
Decision-Making Principles
• 5
Financial exploitation
The Secretary must consider whether the person experienced
financial exploitation during the relevant period.
• 6
Priority needs
The Secretary must consider:
(a)
the priority needs, during the relevant period, of the
person and the person’s specified dependants (if any); and
(b)
whether, during the relevant period, the person was
applying appropriate resources to meet some or all of those
priority needs.
However, paragraph 6(b) explicitly recognises that the goal of
meeting all priority needs may not always be met where a
person has limited financial resources.

15. Part 2
Decision-Making Principles
7
Money management strategies
The Secretary must consider:
(a)
what, if any, strategies (however described) the person
used, during the relevant period, to manage their financial resources;
and
(b)
whether it is likely that the person will continue to use those
strategies, or similar strategies, to manage their financial resources in the
foreseeable future.
Examples for paragraph (a)
·
A personal or household budget.
·
A financial plan.
·
Paying bills or other expenses through Centrepay.
·
Paying bills or other expenses by direct debit from a bank account.
·
Arranging to pay major bills or debts by instalments.
·
Undertaking a course to learn or update financial skills.
·
Using lay-by services.
·
Using a BasicsCard as part of an income management arrangement
under Part 3B of the Act.

16. Part 2
8
Decision-Making Principles
Changes to welfare payment arrangements
Urgent payments
(1)
The Secretary must consider:
(a)
whether the person received more than one payment in relation to
their social security entitlement in any fortnight during the relevant
period, and the reasons for each of those payments; and
(b)
if the person requested that he or she be paid as described in
paragraph (a) during the relevant period, and that request was rejected —
the reasons for each rejection.
Changes to payment payday
(2)
The Secretary must consider how many times (if ever) the person
requested that his or her usual social security payment payday be changed
during the relevant period, and the reasons for each request.
Subsection 8(1) provides that the Secretary must consider whether the
person has made requests to Centrelink for an urgent payment of their
regular welfare payment during the relevant 12-month period

17. Just remember you do have rights!
Ask to be assessed as exempt or to have the decision
revoked.
Don’t be afraid to ask for help EVER!

18. http://www.dss.gov.au/ourresponsibilities/families-andchildren/programs-services/incomemanagement/income-management-factsheets