Income Management - Priority needs 103-01040000

Housing is a basic item.

To determine the amount to set aside for housing costs, use the following questions as a guide:

• Does the customer have any obligation to pay for housing?
• How are housing costs currently paid?
• How much are the housing costs?
• Is the person meeting the housing costs?

Complex living arrangements, and the contributions made by different members of a household may need to be taken into account when making housing payments. For example, one person may be responsible for paying the rent, while another pays for the food. If a request to pay rent on regular basis is above the amount payable by the customer as verified on the Accommodation Details (AC) screen, the reason for this must be included in any Expense Notes or DOC. Other than in these complex living arrangements, customers cannot access more than the amount verified on the AC screen. This is because it can result in the customer accessing income managed funds as cash.

Before requesting a regular or one off payment for housing costs, ensure the following:

• The customer is on 'Manual IM'
• The customer's Income Management available balance and level of unallocated income managed funds have been checked. This is to ensure there are sufficient funds to pay the expense
• The customer's priority needs have been reviewed and
• The Priority Needs Expenses workflow completed and reflect the customer's current circumstances
• The AC screen aligns with the customer's expense request
• If rent is payable to commercial landlords or community organisations, expenses can be set up without verification of rent. However, customers should be encouraged to provide verification as soon as possible, (unless they are exempt from the requirement), as they may be eligible for Rent Assistance. For more information, see Rent Assistance (RA) verification
• Additional consideration is given when requests are received for housing costs for vulnerable customers or customers who are homeless or at risk of homelessness

Customers paying rent to State Housing Authorities (SHA) can do so through deductions from one or both of their:

• income managed (IM) funds, or
• deductions from their discretionary funds

Periodically, a customer's rent obligations increase and the following processes should be followed.

Deductions from IM funds

At the customer's request a Service Officer should update a customer's IM rent deduction to the State Housing Authority.

Deductions from discretionary funds

With customer consent the State Housing Authority will increase the rent deduction made using discretionary funds.

Combination of IM and discretionary

If the customer wishes to increase their SHA rent deduction and have it coded from a combination of both discretionary and IM funds, then the detail should be included in a Fast Note and forwarded to NBG

If assessment is taking place as a result of payment restoration and the customers Income Management is recommencing, talk to the customer to arrange payment to the SHA for missed payments.

Use Fast Note - select Auto Text, use Income Management > Update > State Housing Authority deductions. Include the following information:

• New total amount that the customer needs to pay
• The date from when the new amount applies
• A breakdown of the amounts that the customer would like deducted from each component of their payment (income managed and discretionary funds), and
• That the Service Officer has checked to ensure the customer has sufficient funds to enable the request to be actioned

In all cases, Service Officers should seek verification of rent, however, customers should not have income managed funds withheld to meet their housing costs where verification is not provided. This is often the case for customers income managed under the Vulnerable Welfare Payment Recipient (VWPR) Youth measure, or customers experiencing homelessness.

When considering expense allocations, social worker and Income Management Contact Officer (IMCO) recommendations should be taken into account.

If the request is to pay a primary/head tenant, Service Officers should document discussions that have resulted in this arrangement being the most appropriate option for the customer.

For example, some vulnerable and VWPR customers do not have formalised rent arrangements in place and it may be determined that payment to the primary/head tenant is the most suitable arrangement in the customer's circumstances (it is only a short term arrangement, or this arrangement is required to secure the customer's accommodation).

These discussions should occur before creating an Expense Request and should be detailed in the Expense Request notes.

Note: customers are required to provide verification of their rent details to be paid Rent Assistance (RA) unless they are specifically exempt from the requirement. It is the referring Service Officers responsibility to assess a customer's entitlement for RA. See Rent Assistance (RA) verification.

Use the Expense Management Summary screen to create an Expense Request. This will be mapped to NBG.

The Expense Notes must include:

• all known details of the customer's housing situation, if verification of rent cannot be provided,
• a summary of why this is the most suitable arrangement for the customer, if payment is to a primary/head tenant
• the third party's name (include details of third party, for example, owner, primary tenant, housemate, landlord etc.)
• the third party's contact telephone number
• the relationship of customer to the third party (for example, friend, family member, flatmate)
• the third party's bank account details including Bank State Branch (BSB)
• details if the third party is on Income Management
• the full amount of arrears and the period to which this applies is to be included, if the expense request is for arrears of rent

Notes:

• reference to the above information is to be included in the Expense Notes. However, when the customer cannot provide details, record this as not known. For example, whether the third party is income managed - not known
• all requests for accommodation payments to a family member or third party who is income managed should be processed by NBG Service Support Officers only

A customer can use their Income Management funds to pay their mortgage or home loan if:

• they are on 'Manual IM'
• they have sufficient funds to pay the expense
• the Accommodation Details (AC) screen confirms the customer resides within the property
• they provide documentation and it is scanned onto the customer's record (bank statements, loan contracts, etc.)
• the mortgage/account is in the customer's name
• the requested amount is the minimum scheduled repayment amount
• the customer's priority needs have been reviewed, Priority Needs Expenses workflow completed and reflect the customer's current circumstances

Staff should review all other payment options before starting the request, such as discretionary funds.

After all of the checks and actions are complete, create an Expense Request (via the Expense Management Summary screen) which will be mapped to NBG.

The Expense Notes must include the:

• bank account details, including name in which account is held
• minimum scheduled repayment amount
• frequency of payment for example, one off or regular allocation
• amount and period of arrears, if the requested payment is for arrears
• method of payment including full account details and name of the financial institution
• written authorisation from the customer for Services Australia to contact the financial institution on their behalf (if possible)
• contact numbers for both the financial institution and the customer

If the customer wants to pay above the minimum scheduled repayment amount, they must use their discretionary funds.

The payment of rent to a primary/head tenant rather than to a landlord is not preferable and is only permitted if all avenues to make the payment directly to the landlord have been considered.

If payment to the landlord is not possible (for example, customer cannot be added to the lease, landlord will only accept one payment) the customer should provide a rent certificate detailing the arrangement for verification purposes. This is even if the customer is not eligible for Rent Assistance (see Item 2 if the customer cannot provide verification).

Before assessing that payment to the primary/head tenant is the most appropriate option for the customer, Service Officers should explore the possibility of the customer paying for other priority needs (food, clothing, utilities etc.). This could be done from income managed funds, and they could pay rental expenses from discretionary funds.

Note: Service Officers must inform customers that their request to pay a private landlord or primary/head tenant does not guarantee payment of the expense from income managed funds.

If the customer's Accommodation Details (AC) screen does not show current accommodation details:

• Income managed funds cannot be used to pay rent indefinitely. The AC screen should be updated as soon as possible, even if verification is not provided.
• Discretionary funds may need to be used to pay the rent until documentation is provided

If contact with the private landlord or primary/head tenant cannot be made, a one off payment may be made pending receipt of the documentation. One off payments are not to continue for the long term.

Before creating an Expense Request, staff must complete the following checks:

• The customer must have sufficient funds to pay the expense
• The rent certificate should be scanned onto the customer's record (if possible). Note: even if the customer is not eligible for Rent Assistance, when a request is made for income managed funds to be used to pay for accommodation, a rent certificate should be lodged for verification purposes.
• The amount requested to be paid by the customer does not exceed the amount verified on the AC screen. Note: if a request to pay rent on a regular basis is above the amount payable by the customer as indicated on the AC screen due to complex living arrangements, the reason for this must be included in the Expense Notes. Regular expense requests for rent should not exceed the verified amount paid by the customer as this could result in the customer accessing the funds as cash
• The customer's priority needs have been reviewed, the Priority Needs Expenses workflow completed and accurately reflect the customer's current circumstances

Notes:

• Payments to private landlords and primary/head tenants are made via scheduled transfer to the bank details provided in the Expense Request.
• Scheduled transfers are commenced and varied by NBG only
• A region lock (E2777PI: No access) will prevent commencements and variations for payments to landlords and primary/head tenants by scheduled transfer, by Service Officers outside of NBG
• Network staff can cancel the expense at any time if requested by the customer. Cancellation requests should not be sent to NBG for processing

After all the checks and actions are complete, to commence a new regular or one-off expense, create an Expense Request (via the Expense Management Summary screen). This is automatically mapped NBG to finalise.

Existing private landlord or primary/head tenant:

• Select the private landlord's or primary/head tenant's organisation Customer Reference Number (CRN) beginning with 555 (via the Expense Management Summary screen)
• Select New expense category required

New private landlord or primary/head tenant: The Expense Notes must include the following details:

• a summary of why payment of rent to a primary/head tenant is the most suitable arrangement for the customer, that is, why payment cannot be made directly to the landlord (if applicable)

private landlord or primary/head tenant details:

• Phone number and fax number if applicable
• Bank account details including Bank State Branch (BSB)
• Relationship to the customer (for example, relative, flat mate, no relation etc.)
• If they are income managed

Note: if details are not known, this must be included in the Expense Request. Where persons are not to be contacted, the reason for this must also be included

If the expense request is for arrears of rent, include the full amount of arrears and the period to which this applies.

Varying an existing allocation:

Send a Fast Note to NBG by selecting Auto Text, use Income Management > Update > Request to vary IM allocation. Complete the landlord or primary/head tenant's CRN and details of what is to be varied (old amount, new amount, delivery date, new bank details etc.).

A NBG Service Support Officer must process all requests for accommodation payments to a family member or third party who is income managed.

Accommodation payments to family members where there is no formal lease in place are not the preferred option. Service Officers should document discussions that have resulted in this arrangement being the most appropriate option for the customer.

For example, the Service Officer has explored the possibility of the customer paying for other priority needs (food, clothing, utilities, or meeting the board component of their rental cost if paying board and lodgings). This could be done from their income managed funds and meeting part or all of their rental expense from discretionary funds.

If the customer wants to proceed with a request for rent or board and/or lodgings to be paid to a family member:

• the Accommodation Details (AC) screen must be current and
• a rent certificate should be lodged for verification purposes, even where the customer is not eligible to receive rent assistance

Use the Expense Management Summary screen and create an Expense Request, which will be mapped to NBG.

Requests for rent payments or board and/or lodgings to a family member must complete all relevant checks.

A NBG Service Support Officer must process all requests for accommodation payments to a family member or third party who is income managed.

Customers can request to make a lump sum repayment towards advance payments. Discuss the reason for making the lump sum advance repayment with the customer to ensure the repayment is appropriate and will not place them in hardship.

Customers may request income managed funds be used to pay a lump sum towards reducing the balance of their advance payment.

A lump sum payment can only be made where consideration is given to:

• the appropriateness of the repayment
• the customer's and their dependents current and reasonably foreseeable priority needs, and
• income managed funds in excess of priority needs expenses available

Service Officer must ask customers to consider any hardship issues when paying online or via the Express Plus Centrelink mobile application.

Customers can make a lump sum repayment of an advance:

• through their Centrelink online account or Express Plus Centrelink mobile app using a debit or credit card, or
• using debit or credit card using the staff assisted workflow in Customer First. Staff can help the customer with this

Service Officers can make a lump payment from a customer’s income managed funds. To do this:

• use the Expense Management Summary screen
• select New Expenses options
• select the Add One-off Advance Repayment expense drop down and enter the details

This process only applies at the instigation of the customer. Service Officers must not place customers under any duress to allocate unspent funds towards a Centrelink debt.

Customers can use income managed funds in excess of priority needs expenses to make lump sum payments towards a Centrelink debt. This is only if:

• the customer's and their dependents' current and reasonably foreseeable priority needs have been met, and
• there are income managed funds in excess of priority needs expenses available

Debt repayments from income managed funds do not replace standard withholding arrangements and are in addition to these payments.

If a customer wants to proceed with payment of a Centrelink debt from income managed funds:

• use the Expense Management Summary screen
• create an Expense Request using Centrelink Debt (CRN 555087275H) as the Third Party Organisation (TPO) which will be mapped to NBG

Customers can pay private debts or amounts owing such as, Personal Loans and credit cards, from income managed funds if they relate to a priority need being met. It does not matter if the debt was incurred before the customer commenced Income Management.

The customer should pay other debts not relating to priority needs from their discretionary income, however, these debts may be paid from income managed funds if:

• the customer's and their dependents' current and reasonably foreseeable priority needs have been met, and
• there are income managed funds in excess of priority needs expenses available

A customer can only request the minimum monthly payment if the personal loan incorporates a re-draw facility. If the repayment is more than the minimum, it would allow the customer to access funds as cash.

Note: there is a risk that regular payments towards a customer's debt could result in the customer being in credit and therefore having access to the funds as cash. Service Officers must verify the balance of the debt, and code the target amount when setting up the expense.

If a customer requests payment of a non-Centrelink debt from income managed funds:

• use the Expense Management Summary screen
• create an Expense Request using the financial institution (bank or credit union), or person's name if the loan is to an individual, as the Third Party Organisation which will be mapped to NBG
• Customers must provide additional information when they ask for income managed funds to pay non-Centrelink debts. This must be recorded in the payment request.

The agency should assess requests for Income Management payments to pawnbrokers on a case by case basis. Use the following principles when making decisions about whether to approve the payment or not.

Note: a pawnbroker is not the same as a second hand dealer. A pawnbroker offers secured loans to people, with items of personal property used as collateral.

Purchasing second hand goods

If the customer is requesting payment to purchase an item, the Service Officer should determine if the item being purchased is one that the customer previously lodged with the store as collateral for a cash loan.

If necessary, contact the dealer to determine this. If the customer is simply wishing to purchase second hand goods and is not making payment to redeem goods then standard processing applies. Approval should be given for the purchase under existing Income Management policy.

Repayment of loans or making payment to redeem goods lodged as security for a loan

There is a risk in these transactions that the arrangement has been put into place solely for the purpose of gaining access to income managed funds as cash. This cash could then be used to purchase prohibited items.

There are, however, situations where the customer may have entered into the arrangement before becoming subject to Income Management. In these cases consider the following factors:

• Are the customer's and their dependents' priority needs met? Payment of these debts must only be considered when current and reasonably foreseeable priority needs are met and there are income managed funds available
• Was the arrangement put in place prior to the customer becoming subject to Income Management? If yes, this would indicate that the arrangement is not being used solely for the purpose of gaining access to income managed funds as cash
• Is there a history of behaviour that indicates the customer is using the arrangement to avoid Income Management?
• What was the cash used for? Did the customer use the cash to meet their daily living expenses or to meet their priority needs?

Referral to Income Management Policy helpdesk

Service Officers must refer these requests to the Income Management Policy Helpdesk if the customer is requesting the payment to redeem goods lodged as security for a loan category. To do this:

• use the Expense Management Summary screen
• complete the Expense request for payment, including the referral by NBG
• send via email to the Income Management Policy helpdesk

Fines:

• are generally not priority needs
• can, however, be paid from a customer's income managed funds if the Service Officer is satisfied that the customer's and their dependents' current reasonably foreseeable future priority needs are met. This is if income managed funds in excess of priority needs expenses available

See Payment of fines from income managed funds.

Priority needs include the acquisition, maintenance or operation of a motor vehicle, a motor cycle, or a bicycle, that is used wholly or partly for purposes in connection with any other priority need.

Motor vehicles and motor cycles can also be purchased using income managed funds on the principle that a customer's and their dependents' current and reasonably foreseeable priority needs are met and there are income managed funds in excess of priority needs expense available.

Customers can use income managed funds to purchase new or second hand vehicles from licensed motor vehicle traders or from private sellers.

As this is a large purchase for a customer, Service Officers should briefly summarise the following key points and include a detailed DOC outlining the discussions with the customer.

Points to remind the customer:

• Do their homework: Suggest they shop around to ensure the vehicle is the best possible value for money
• Affordability: Remind the customer they must also be able to afford things like transfer fees/stamp duty, car registration and insurance and the ongoing costs of running a car
• Private sellers: Recommend the customer contact the Personal Property Securities Register (PPSR) (previously known as Register of Encumbered Vehicles (REVS)) to check for any money owed on the vehicle or whether it has been stolen
• phone PPRS on 1300 007 777 or,
• visit their website - see the Resources page for the link
• Warranty: Customers should be aware of any warranty provided, remembering a vehicle purchased from a private seller has no warranty
• Drivers licence: Remind the customer of their responsibility to have a valid driver's licence if they will be driving the vehicle

The Translink Go Card is used to access public transport in Queensland.

The Go Card:

• Cannot be topped up with Income managed fund. This is because the customer can request to cancel their Go Card at any time and have any existing credit on their card (up to $50.00) refunded to them
• Should be topped up with discretionary funds. This can be done at manned railway stations, selected newsagents, Translink Fare Machines located in railway stations, via the internet using a credit card or by calling Translink direct with credit card details

A customer can ask to be reimbursed from income management funds if they have topped up using their discretionary. This is if there are sufficient funds available and suitable verification of payment can be provided.

Verification would need to be:

• a credit card statement confirming the top up amount, or
• a receipt of a Go Card top up from the Retailers, Train Stations or Translink Fare Machines matching the customer's Go Card

Staff must scan all verification on to the customer's record.

If a customer wants to request reimbursement of a Go Card top up from income managed funds:

• use the Expense Management Summary screen
• create an Expense Request, which will be mapped to NBG

A customer's priority needs may differ if they are away from their home base. See Income Management customer travelling away from home.

Travel costs may be paid from a customer's income managed funds if the Service Officer is satisfied the customer's and their dependents' basic items are being met and there are income managed funds available.

Customers must provide additional information if they ask to use income managed funds for travel by airline, rail, bus or ferry/boat. The Service Officer must record this in the payment request.

Depending on the method of payment, customers may be required to pay additional costs associated with credit card fees. They may also wish to purchase travel insurance. When completing an Expense Request, Service Officers are prompted to 'warm' transfer the customer to NBG who will process the payment.

Customers may ask to spend their income managed funds on purchases from private sellers.

Private sales - while it is not possible to describe all situations the onus is on the customer to satisfy the agency that the arrangement is legitimate. The Service Officer should take the following factors into consideration when requesting these payments:

• Is there a history of requests that indicates a pattern of behaviour?
• Was the item for sale available or advertised generally?
• What relationship does the seller have to the customer?
• Is the seller income managed?
• How did the customer become aware that the item is for sale?
• Has the customer shopped around to see if a similar item is for sale from other places?
• Any other relevant factors

The Expense Request will automatically map to the NBG once it has a status of registered.

Service Officers must:

• include all factors considered as above, goods to be purchased and seller details in the Expense Notes
• select uncontracted TPO 555087273S (Private Seller)

If the customer is making the purchase from a private seller, the NBG Service Officer will contact the seller to verify and approve the purchase.

The NBG Service Officer must record full details of their consideration in the Expense Notes.

An APS 5/6 must approve the purchase if the value is greater than $1,000. The Service Officer making the payment is responsible for obtaining approval and recording details of the APS 5/6 approval in the Expense Notes.

If both the purchaser and seller are income managed, regardless of the amount, the NBG APS 5/6 must forward the request to the Income Management Policy helpdesk for approval.

Under Social Security Act 1991, section 124TH(h), expenses associated with fixed-line telephones are a priority need. The way a customer pays for fixed line home or community phones may include bills or pre-paid cards. A customer can use income managed funds to purchase pre-paid phone cards for their fixed home phones, or for fixed line community phones.

Mobile phones

Mobile phones, SIM cards or credit for mobile phones are not priority needs. However, mobile phones are not an excluded item and may be purchased using income managed funds. This is if the Service Officer is satisfied that the customer's and their dependents' current and reasonably foreseeable future priority needs are met. There must also be income managed funds in excess of priority needs expenses available.

Firearms and ammunition are considered to be a priority need only if a person can demonstrate that such items are necessary for employment. Firearms and ammunition are not considered to be a priority need in relation to food gathering. Hunting knives are not a priority need. Under Section 123TH of the Social Security (Administration) Act basic household items are priority needs. Basic household items include cutlery and kitchen utensils but not knives used for hunting.

Note: under Child Protection Income Management (CPIM), the priority needs of the children should be considered paramount. This means, even where necessary for employment, the purchase of firearms, ammunition and knives must be thoroughly scrutinised and discussed with the relevant State or Territory Child Protection Authority case manager.

Firearms, ammunition and hunting knives are not excluded items and may be purchased using income managed funds. This is if the Service Officer is satisfied that the customer's and their dependents' current and reasonably foreseeable future priority needs are met. There must also be income managed funds in excess of priority needs expenses available.

A lay-by is essentially a contract between a customer and a retailer whereby the customer pays for goods over a period of time rather than upfront.

In most lay-by agreements the customer will pay an initial deposit followed by regular payments. The retailer holds the goods until the customer has paid the full price of the goods.

Lay-by payments can be made using the BasicsCard or via deductions from a customer's Income Management account to the TPO.

When approving such payments, Service Officers should encourage the customer to familiarise themselves with the lay-by terms and conditions they have agreed to.

Customers cannot use their income managed funds for the purchase of Christmas hampers from Chrisco Hampers, Castle Hampers, Hamper King or other similar companies.

This is because the hampers can contain prohibited items.

Customers can use available income managed funds to pay for fireworks if the Service Officer is satisfied that the customer's and their dependents' current and reasonably foreseeable future priority needs are met and there are income managed funds in excess of priority needs expenses available.

Payments can be made using the customer's BasicsCard or by payment to a TPO.

Services Australia must not promote BasicsCard merchants who are selling fireworks. Service Officers can provide customers with a list of BasicsCard merchants but this will not indicate which merchants may be selling fireworks.

Attendance at Show Days and Agricultural Society Days

Customers can use available income managed funds, if the customer's and their dependents' current and reasonably foreseeable priority needs are met, to pay for:

• travel to and from Agricultural Society Days
• accommodation costs while attending the Society Day
• entry to the Society Day

Funds may be issued through:

• a transfer to the BasicsCard - local arrangements are often put in place to enable customers to purchase tickets through BasicsCard merchants
• a one-off payment to a Third Party Organisation (TPO) that sells entry tickets
• an online credit card payment via the relevant Agricultural Society's website or
• a Restricted Direct Payment (RDP) where no other option of payment is available. The amount of the RDP must not exceed the entry fees payable

Customers can access priority needs while in town using their BasicsCard at approved BasicsCard merchants or by contacting the agency to arrange payment via another method.

Customers should make arrangement for sufficient funds to be transferred onto their BasicsCard before they travel by calling 1800 132 594 or accessing self-service.

Service Officers must DOC the customer's record when making an allocation for the Society Day entry tickets to identify when a customer is making multiple purchases. If it is apparent that multiple tickets are being purchased over time then a more detailed assessment of the customer's priority needs may be required or a referral to a senior officer.

Other show related purchases the customer wishes to make, such as rides or show bags, should be paid from their discretionary funds. However, if a customer requests to access unspent income managed funds to spend at a show, Service Officers should assess suitability for a Restricted Direct Payment, ensuring priority needs continue to be met.

Gift cards can be purchased from income managed funds if the following can be confirmed:

• the customer's and their dependents' priority needs are being met
• the gift card cannot be redeemed for cash, and
• the gift card cannot be used to purchase prohibited items

If the above cannot be confirmed, customers can use discretionary funds or their income to purchase gift cards.

Although customers can choose to make payments to a consumer lease from their income managed funds, Service Officers should be aware of alternative options available to the customer which may provide better value for money.

The Resources page contains links to help customers make a decision about consumer leases and alternatives which include:

• using the Rent vs buy calculator
• lay-by
• No Interest Loan (NILs)
• applying for an advance payment (if eligible)
• a StepUP Loan (low interest loan)

Customers cannot use their income managed funds to directly pay for funeral insurance. However, as funeral insurance is not an excluded good for the purpose of income management, the agency can set up a regular RDP to facilitate the payments.