Voluntary Income Management is available in metropolitan Perth and the Kimberley region in Western Australia, and across the Northern Territory. From 1 July 2012, Voluntary Income Management will also be available in the Local Government Areas of:
- Bankstown, New South Wales;
- Logan, Queensland;
- Rockhampton, Queensland;
- Playford, South Australia; and
- Greater Shepparton, Victoria.
This initiative allows income support recipients to volunteer for income management to assist them to meet their priority needs and to learn how to manage their finances for themselves and/or their family in the long term.
There are a number of people who want to ensure their and their children’s priority needs are met but, for a variety of reasons (such as poor financial literacy or harassment from others), they are unable to achieve this on their own. This measure provides people the option of voluntarily entering into an income management agreement with Centrelink.
People who volunteer for income management will also receive a referral to financial counselling or financial education services funded by the Department of Families, Housing, Community Services and Indigenous Affairs. In addition, a person who volunteers for income management will be eligible for the Voluntary Income Management Incentive Payment.
Questions and Answers
Q. How does Voluntary Income Management work?
Under Voluntary Income Management, people can enter into an agreement with Centrelink for income management if they consider this would assist them to better meet their financial responsibilities or contribute to the wellbeing of their children or children within their community.
Q. Under Voluntary Income Management, how much of a person’s payments is managed by Centrelink?
Regular Payments: Under Voluntary Income Management, 50 per cent of a person’s regular payments is income managed by Centrelink, with the remaining 50 per cent being paid directly to the person to be used at their discretion. Income managed funds are directed toward necessities including food, housing, utilities, clothing and medical care. Income managed funds cannot be spent on excluded goods, including alcohol, home brew kits, home brew concentrates, tobacco products, pornographic material and gambling goods and activities. There is no restriction on use of the proportion of a person’s payments which is not income managed.
Payment advances, lump sum payments and baby bonus payments and ABSTUDY (with PER or living allowance):
These payments are income managed at 100 per cent. However there is some flexibility to enable people to access some additional funds in cash if required.
Q. Does Voluntary Income Management reduce my payments?
No. Income management does not reduce the total amount of your payments from Centrelink. Income management only changes the way payments are received.
Q. If I am already subject to income management under another measure, such as the Child Protection Measure, can I request Voluntary Income Management?
No. If you are already income managed under any of the other income management measures, you are not able to apply for Voluntary Income Management.
Q. Will I be supported when I volunteer for income management?
Yes. Centrelink will refer an income managed person to financial management services to help them manage a financial crisis or overcome financial hardships, and learn to better manage their finances over the long term. The Family Support Program, including Communities for Children, is also available to support families to confidently and responsibly care for their children and encourage children’s early childhood development and school readiness. Participation in these services is voluntary.
Q. How does the Voluntary Income Management Incentive Payment work?
A person will be eligible for a payment of $250 for every continuous 26 week period they remain income managed under Voluntary Income Management. The person will not need to apply for this payment as it will be automatically paid to those people who satisfy the criteria. This payment will be income managed at a rate of 100 per cent and paid directly into the person’s income management account.
Q. Where can I go to find more information about Voluntary Income Management?
For more information on Voluntary Income Management, see the Voluntary Income Management factsheet. Centrelink will be able to provide you with more information on Voluntary Income Management and how it will work. Visit a Centrelink office or call the Centrelink income management line on 13 2594.