Disbursement of funds when Income Management ends 103-01060000

A customer's IM may end for the following reasons:

• The customer's eligible income support payment cancels
• The end date for their IM measure is reached
• The Voluntary IM Agreement is ended
• They no longer meet the legislative requirements of the applicable IM measure
• They are granted an exclusion or exemption from IM
• They have an excluded payment nominee for IM purposes
• The customer has passed away

When IM ends, Services Australia must pay the customer any funds that remain in their IM account within 12 months of IM ending. The agency can pay these funds:

• In fortnightly instalments (where the residual balance is $210 or more)
• By transferring funds to BasicsCard or a Third Party Organisation (TPO) to purchase non prohibited items
• In a lump sum - this is only available to customers:
  • Where the residual balance is less than $210, or
  • The customer exits Voluntary IM

Note: the agency will not disburse funds if it is likely the customer's payments will be income managed again within 60 days.

When Services Australia is unable to make a payment to the customer's last known payment destination, or if applicable, that of their payment nominee, (for example, the account was closed and funds were returned from a financial institution) the available options are:

• payment to the customer's Legal Personal Representative
• payment to a third party business with written instruction from the Legal Personal Representative
• payment or reimbursement to a third party for direct funeral expenses of the deceased customer. Note: direct funeral expenses can include funeral parlour fees, the cost of a casket and the cost of transporting the deceased person, but does not include the costs incurred by those attending the funeral or indirect costs such as flowers, family dancers etc
• payment to a person who is carrying out appropriate activities, for example, finalising outstanding bills, managing debts in relation to the estate or affairs of the deceased customer. A receipt or invoice will be sufficient evidence to confirm the appropriate activity
• payment to family members who hold cultural responsibility for the deceased customer. IMPACT to receive approval from the Level 2 Income Management Policy helpdesk

Before Income Management automatically ends, the disbursement of a customer’s residual funds can be recorded via the Disbursement interview screen. This interview can be recorded up to 28 days before Income Management is due to end.

If it is recorded on the Disbursement interview screen the customer is likely to return to Income Management within 60 days of Income Management ending, disbursement will be deferred for 60 days (grace period) from the date Income Management ends.

Where no disbursement instructions are recorded, Auto Disbursement rules will apply to any residual funds when Income Management is automatically ended:

• Disbursement begins immediately: This will occur when Income Management reaches its ‘natural end date’ as per the following measures:
  • when the Notice reaches its end date for customers on Vulnerable Welfare Payment Recipient (social worker assessed)
  • when eligibility ends naturally due to age and profile for customers on Disengaged Youth (DEY) or Long Term Welfare Payment Recipient (LTWPR) (for example, no longer eligible for DEY but does not meet criteria for LTWPR; customer reaches Age Pension age)
• Disbursement begins 60 days after end date: This occurs when the customer’s Income Management has ended for a reason other than reaching the natural end date:
  • the customer no longer receives the income support payment applicable to the Income Management measure
  • it has been more than 13 weeks since a DEY or LTWPR customer has moved outside of the Northern Territory

Funds are automatically disbursed, immediately or after 60 days, depending on the customer’s Income Management account balance:

• Balances less than $210 will be paid as a lump sum
• Balances between $210 and $4200 will be paid by fortnightly instalments of $200 with the whole balance paid out within 12 months from the date Income Management ends. Note: the final instalment may be less than $200
• Balances greater than $4200 will be divided by the number of fortnights left before the 12 month anniversary of Income Management ending, and paid in instalments of this amount each fortnight. This ensures all remaining funds are paid out within 12 months of Income Management ending

Note: if at any stage during the disbursement period, funds are either credited into or debited from the customer’s Income Management account, there is a recalculation of the residual balance. This may result in an adjustment to the number or amount of future instalments.

When IM ends, Services Australia sends customers a letter inviting them to contact the agency to discuss the:

• disbursement of any residual income managed funds, and
• options available to continue paying their ongoing expenses

These interviews are voluntary and are only conducted at the customer’s request.

If a customer chooses not to attend a Disbursement interview, the Auto Disbursement rules are applied.