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The amount of the MSP is the lower of the person's qualifying savings amount or $500. The payment is made in one lump sum and can only be received once, regardless of how many times a person qualifies for the payment or how much is claimed.
Example 1: Jim is eligible for the MSP. He has saved more than $600 regularly over 13 weeks. The amount of Jim's MSP will be $500. He CANNOT claim a further $100 to match the additional amount he has saved. He CANNOT claim another MSP amount in 13 weeks' time.
Example 2: Rohanee is eligible for the MSP. She has saved $250 over 13 weeks. If Rohanee claims the MSP at this time, the amount of her MSP will be $250. She CANNOT claim a further $250 so that she receives $500 in total. She CANNOT claim another MSP amount in 13 weeks' time.
If a person has saved less than $500 in 13 weeks, the delegate should inform the person before they claim the MSP that they can take more time to save so that they will be able to claim $500 when they have saved $500 or more.
Example: Rohanee is eligible for the MSP. She has saved $250 over 13 weeks. If Rohanee claims the MSP at this time, the amount of her MSP will be $250. The delegate advises her that if she takes more time to save $500, she will be able to claim $500 instead of $250. Rohanee saves for a further 10 weeks. By this time, she has saved a total of $500. If Rohanee claims the MSP at this time, the amount of her MSP will be $500.
When the person has met the requirements, Centrelink will credit the matched amount to the person's income management account. The person may allocate the MSP in the same way as other amounts in the income management account.
If a person receiving the MSP is not currently meeting their priority needs, the MSP should be allocated towards meeting those needs. In all other circumstances, the MSP should be allocated towards the person's intended savings goal.
While the person's discretionary funds may also be used alongside the MSP amount to pay for such an expense, it is permissible for a person to pay for non-priority goods or service completely using income-managed funds, as long as the person can meet their present and foreseeable priority needs and those of their partner, children and other dependants.
Note: The person is prohibited from spending MSP funds on excluded goods or services.
The delegate should discuss the person's savings goals, and if appropriate, encourage the person to think about spending MSP funds on goods or service they would not usually purchase, but that they have a particular desire to purchase, as long as it is not an excluded goods or service. This would encourage the person to have a concrete savings goal and provide a tangible reward for maintaining a regular savings pattern.
Example: Jonah receives a $500 MSP. He wants to take his partner and children on a family holiday to Katherine. He discusses his savings goal with the delegate and the delegate agrees that as Jonah has met his priority needs and those of his partner and children, he is able to direct his MSP funds, in addition to his own discretionary funds, towards his family's holiday expenses.
The MSP is not subject to tax.
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Last reviewed: 20 September 2010
