Payments to parents for under 18 year old Youth Allowance (YA) dependent customers 103-04010010

• If the customer is applying for YA, go to Step 2
• If the customer is currently receiving YA, go to Step 7

The customer will be required to complete an online claim for YA, see Youth Allowance and Austudy students and Australian Apprentices online claims and Assisted Customer Claims

If the claimant has indicated they are not considered independent, the parent(s)/guardian(s) will be required to provide a MOD JY - Parent(s)/Guardian(s) details form. See Completing Parent(s)/Guardian(s) details for the Base Tax Year and Current Tax Year (MOD JY).

If the customer is lodging a new claim for YA, check the claim documentation for details of a bank account in the parent(s)' names. This information can be found in one of the following:

• MOD JY online form, submitted via online services. The MOD JY is available for view in Process Direct via the Tasks icon
• Parent(s)/Guardian(s) details for the base tax year and current tax year for Dependent Youth Allowance or ABSTUDY customers (Mod JY)

The account nominated by the parent may be a joint account with the other parent or with the customer.

Is there a bank account in at least one parent's name?

• Yes, see Table 2, Step 5
• No, go to Step 4

A parent may authorise payment to the customer. The parent is not required to give their reasons for making this authorisation.

Note: where the parent has requested that payments be made to their child they can also later request that payments revert back to their own account if the customer is still under 18 years of age - no explanation or reason is needed.

Where the parent has attached an authorisation to pay the YA to the customer, the customer's bank account details will need to be updated:

For new claims in Process Direct, navigate to the PAS/PAD table and complete the relevant fields.

For current customers, navigate to the Payment Destination Details (PANS) screen and complete the relevant fields.

Has the parent authorised the payment to be made to the customer?

• Yes, see Table 2, Step 7
• No, go to Step 5

Where there is conflict between the parents about who should receive the payment, the customer may nominate in writing which parent should receive the payment.

Note: this should not be an issue arising out of shared custody arrangements. The Parental Income Test (PIT) for YA allows a customer who is in a shared custody arrangement to nominate which parent will be used for the purpose of the PIT.

Has the customer nominated which parent should receive the payment?

• Yes, see Table 2, Step 7
• No, go to Step 6

• Where the parent does not nominate a bank account, the Service Officer should telephone the parent (if possible) and advise that the payment must be paid to them unless they provide written authorisation for the payment to be paid to the customer

Note: by submitting the form the parent has given permission to be contacted.

• Where the Service Officer cannot contact the parent by telephone, then the claim should be held and a letter sent to the customer advising that details of the parent's bank account are required. This process should also be followed where the customer has failed to nominate which parent should receive the payment in cases where there is dispute between the parents. See Requesting information (CLK)
• Similarly, where the parent has not signed the paper MOD JY form then a written request for the required information can be made and the claim held. See Requesting information (CLK)
• If the information has not been provided within the 14 days, the claim should be rejected

Note: in some instances, the parents may provide details of the customer's bank account in the MOD JY (paper or online version). This can be taken as authorisation to pay the customer.

Has the parent now provided bank account details?

• Yes, see Table 2, Step 5
• No,
• Because the parent has authorised payment to the customer, see Table 2, Step 7
• Otherwise, reject the claim after 14 days have elapsed. For more information on rejecting a claim, see Rejecting a claim. See Table 2, Step 8

Note: where payments are being made into a parent's bank account, it is important not to change the payment destination details without clear authorisation from the parent.

• If the YA customer or their parent contacts and wishes to change the bank account details from the parents to the students, see Table 2, Step 1
• If the YA customer is already receiving the YA into their own account and wishes to update their own bank account details, see to Table 2, Step 2
• If the YA customer's parent(s) contacts with a change to their own bank account details, see Table 2, Step 3
• If the YA customer's parent contacts and wishes payment to revert back to the parent's account, see Table 2, Step 4

If a YA customer or their parent contacts and wishes to change the bank account details from the parent(s) to the customer, the customer or parent should be advised that this information must be supplied by the parent(s) in writing.

Note: Care should be exercised, especially if the parent advising of the change is not the parent who is receiving the payment. Check that the parents are not separated.

Has the parent provided authority for the change of bank account in writing?

• Yes, go to Step 5
• No, go to Step 8

If a YA customer contacts with a change of bank account details, and they are already receiving the YA into their own account, the new information can be accepted over the phone or face to face. Go to Step 7.

If a YA customer’s parent requests a change to their own bank account details on the YA customer's record, for example, they are changing financial institutions, the new information can be accepted over the phone or face to face.

Note: care should be exercised, especially if the parent advising of the change is not the parent who is receiving the payment. Check that the parents are not separated.

Go to Step 7.

A parent, who has previously given permission for the customer's payment to be paid into the customer's own account, may request the payment destination be changed back to the parent's account. The parent is not required to give their reasons for ceasing their authorisation.

Has payment previously been made to the parent's account?

Note: This request must be in writing.

• Yes, go to Step 6
• No, go to Step 5

Where a customer is living at home under circumstances which indicate that Youth Allowance is unlikely to be used for the benefit of the customer (for example, the parent who is receiving the payment is a chronic gambler or alcoholic) the payment may be directed to the customer. This assessment may be made on the basis of a recommendation from the Social Worker or a Service Officer.

Are there circumstances that indicate the payment should not be made to the parent?

• Yes, if payment should not be made to the parent, advise the customer that the payment destination can be changed, go to Step 7
• No, if payment can be made to the parent, go to Step 6

Has the parent provided authority for the change of bank account back to their own in writing?

• Yes, go to Step 7
• No, go to Step 8

Once it has been established whether the payment is to go to a parent's account or to the customer's account, record the information on the system as follows.

• Request both the account number and the financial institution (FI) code / BSB number from the customer/parent. If FI code is unknown, access the CODES facility
• If payment to the customer has been approved, check if the account number and balance needs to be updated or added to the Savings Summary (SVS) screen. See Coding income and assets

New claim processing

If the updates are being made during claim processing, go to the Payment Destination (PAS/PAD) table within Process Direct and update the relevant fields.

Current customers

• If the customer is already receiving YA, use the Change Payment Destination workflow in either Process Direct or Customer First to update the payment destination details. Read the updated information back to customer to ensure that it is correct
• For income support customers, check if the account number and balance needs to be updated or added to the Savings Summary (SVS) screen. See Coding income and assets
• Finalise the activity using the Change Payment Destination workflow in either Process Direct or Customer First

Go to Step 8.

Record details of decision on a DOC. If the decision is to not change the payment destination because there has been no written authorisation from the parent, then this should be documented.