Coding Income Management expenses 103-01040070

Item

Scenario

1

Sarah's regular expenses

Sarah has been issued a BasicsCard which will be used to buy food each fortnight. Sarah also set up the following regular expenses:

• Schools Meals Program $50.00
• Medical Expenses $10.00
• Rent $260
• Utilities $30

Sarah usually has $65 credited to the Income Management account each fortnight from their Parenting Payment Single (PPS) and Family Tax Benefit (FTB). Sarah has enough to cover all regular expenses incurred.

As Sarah's BasicsCard allocation is by the Residual Payment method, $115 will automatically transfer to the BasicsCard after the expenses have been paid.

2

Sarah starts casual work - reduced available funds

Sarah starts casual work and their PPS payment is reduced so only $330 goes into the Income Management account this fortnight. The system will pay Sarah's expenses using the payment priority order.

Note: the system does not make part payments and once it cannot pay an expense in full it stops going down the list.

3

Outcome when reduced available funds

The following expenses will be paid for Sarah

1. Schools Meals Program of $50

2. Medical Expenses of $10

3. Rent of $260

This would leave $10 in Sarah's Income Management account. As there are insufficient funds available, the utilities of $30 would not be paid. No funds would be transferred to the BasicsCard, as all regular expenses were not paid. If Sarah still wanted a payment to be made to the utilities company, Sarah would need to make arrangements to pay it from their discretionary funds.