Disbursement of funds when Income Management ends 103-01060000

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

This ensures:

• Residual funds are disbursed appropriately depending on the reason Income Management (IM) ends, and
• Customers do not cancel their income support payment to access income managed funds

When conducting a Disbursement interview, Service Officers must determine whether the customer is likely to have their payments income managed within the next 60 days. Service Officers should consider:

• Whether the customer is likely to be eligible for another measure of IM when the current measure ends (by checking the Income Management Summary screen)
• Where IM is ending because of their eligible payment cancelling, the reason and history of cancellations. For example:
• CAN/OTH: check for cancellation reason. If the reason is unknown, it is likely the customer will be income managed within 60 days
• CAN/CLR: check for details of why the customer requested cancellation of their payment. If the reason is unknown, it is likely the customer will be income managed within 60 days
• CAN/DNL or CAN/FRP - it is likely IM will be reinstated within 60 days once any outstanding report is lodged. However, if details exist on the customer's record that indicate they no longer wish to receive income support payments, it is not likely they will be income managed within 60 days

Note: disbursement of funds should commence no more than 60 days after IM.

A Disbursement interview is only held at the customer’s request. The interview can be held up to 28 days before IM is due to end and conducted face-to-face or by telephone.

Before conducting a Disbursement interview, Service Officers must check whether an interpreter is required. If so, see Booking an interpreter for an appointment.

Service Officers must tell the customer about the impacts of IM ending, and discuss the following:

• They will now be responsible for meeting expenses previously paid from their IM funds
• Encourage the use of Centrepay to continue paying for ongoing expenses where a Third Party Organisation (TPO) is registered for Centrepay, or contact their bank to set up direct deductions from their bank account
• How rent to a State Housing Authority (SHA) previously paid from IM funds can continue to be paid through the Rent Deduction Scheme (RDS)
• Eligibility for another measure of IM, including offering Voluntary IM (if appropriate)
• They can visit the 'Managing your money' page on the Services Australia website which offers useful information and resources to help with managing finances
• The option to appoint a payment nominee (if still receiving an income support payment)
• Continued use of the BasicsCard for 60 days after IM has ended. After 60 days the card will automatically close, and recall any balance to their IM account
• While receiving instalments of residual IM funds, they can transfer available funds to their BasicsCard or request one off payments to TPOs for non-excluded items
• How any residual funds will be disbursed (whether as a lump sum or by instalments)

During the Disbursement interviews, Service Officers must confirm the bank account details where residual IM funds are to be paid.

Before completing the Disbursements workflow screen:

• Go to the Payment Destination Summary (PAS) screen to confirm the payment destination recorded for 'GPY'. If the customer is not present, check 'GPY' payment destination matches the customer's most recent payment type
  Note: IM funds cannot be disbursed if there is no payment destination recorded for 'GPY'
• Select the 'GPY' to go to the Payment Destination Details (PAD) screen where the payment destination details can be recorded

Note: the Disbursements workflow does not switch a customer off IM. IM must have ended, or be due to end within 28 days, prior to running the Disbursements workflow.

This option is only available:

• For customers exiting Voluntary IM with residual funds, or
• If the customer's IM account balance is less than $210

Excluding Voluntary IM, residual funds are paid in instalments where the IM account balance is $210 or more.

For balances between $210 and $4200:

• The balance is paid in $200 instalments until the full amount has been disbursed. This ensures IM balances are paid out quickly
  Note: if the final instatement will be less than $10, this amount will be added to the last $200 instalment. See the Resources page for an example

For balances over $4200:

• The balance is divided by the number of fortnights left until the one year anniversary of the customer's IM ending, meaning instalments will be greater than $200. See the Resources page for an example

Also see:

• Item 4 - Disbursement of residual funds to a Third Party Organisation (TPO)
• Item 5 - Disbursement of residual funds against an existing Centrelink overpayment
• Item 7 - Disbursement of residual funds when a customer has passed away

While not technically a 'disbursement', customers may wish to use their BasicsCard to spend any IM balance:

• The BasicsCard can continue to be used for up to 60 days from the date the IM ends. On day 61 after IM ends, the BasicsCard is automatically closed, and any balance recalled to the IM account for disbursement
• If the customer cannot use their BasicsCard during this 60 day period for any reason, they can close the BasicsCard and the balance will be recalled into the IM account for disbursement

Note: the recall of funds to the IM account will result in an automatic recalculation of the disbursement amount. If the IM account balance was zero when BasicsCard funds are re-credited, the recalled balance will be paid out automatically as a lump sum, regardless of the amount.

Customers can request a one-off payment using some or all their IM account balance to purchase goods or services from a Third Party Organisation, such as a fridge or to pay a bill.

The item to be purchased does not have to relate to a priority need. However, it must not be an excluded item such as pornography, alcohol, home brew concentrate, home brew kits or tobacco.

If the customer owes an amount to the Commonwealth the customer can elect to pay the whole or part of their residual IM funds towards the overpayment amount.

Note: under no circumstances should staff place customers under any duress to allocate residual funds towards an overpayment.

If the customer becomes eligible for IM again, under the same or a different measure, any funds that had not been disbursed will remain in the customer's IM account.

Any regular disbursements in place will automatically end when IM restarts.

When an income managed customer passes away, the residual balance will be paid as a lump sum to the last known bank account on the customer's record when either of the following are completed:

• Process Direct - the Notification of death workflow
• Customer First - the Notification of Death guided procedure

If the customer had a current payment nominee, the balance is paid to the payment nominee.

If funds are returned from the financial institution, the residual balance stays in the deceased person's IM account, and the options available for disbursement will be pursued by the Income Management Payment and Contact Team (IMPACT).

For more details, see Death of an income managed customer.

This applies only to funds which have been held by the system. For example, a $200 disbursement instalment being held for the following fortnight. This does not apply to the remaining IM account balance.

The Income Management helpdesk must consider each scenario on a case-by-case basis. If the funds held for disbursement are to be released, they can be allocated through the above methods or in exceptional circumstances, a Restricted Direct Payment (RDP) may be considered.

Email the Income Management Policy Helpdesk with the reason/s why the customer is requesting access to their held funds.

See the Resources page for an example of how funds are held during the disbursement process and the Income Management helpdesk email template.