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Income Management DeductionsService Delivery and Compliance GuidelinesContents

(i) Definition of terms

(iii) Introduction

Service delivery

1.1 Engagement process

1.2 Assessment process

1.3 Eligibility criteria

1.4 Approval criteria

1.5 Additional requirements of contract

1.6 Application decisions

1.7 Income Management Deductions Service Reasons

1.8 Outcome of Business Application

1.9 Contracts and contract management

1.9a Form of contract

1.9b Termination of an IM Deduction Contract

1.9c Termination process

1.10 Reviews and complaints

1.10a Complaints

1.10b Requests for review of Department of Human Services decisions

1.11 Overpayment of Income Management Deductions

Audit and compliance reviews

2.1 Overarching policy

2.2 Audit and compliance reviews

2.3 Audit and compliance review process

2.4 Outcome of review activities

2.5 Process for ‘compliant’ outcomes

2.6 Process for ‘non-compliant’ outcomes

2.7 Compliance Plan

Glossary

(i) Income Management Priority Goods and Services and associated Income Management Service Reasons

(ii) Income Management Deductions excluded goods and services

(i) Definition of termsAccount Manager means the Human Services officer primarily responsible for managing the IM Deduction Program.

Applicant means the legal entity that has applied to become a Party to a Schedule 4 IM Deduction Contract or a Schedule 5 IM Deduction Contract.

Approval Criteria means the criteria set out in section 1.4 of this document.

Approval Letter means a letter from Human Services to the Applicant notifying them that Human Services accepts their Business Application.

Approved Lay-By means an arrangement for the purchase of goods from the Participant based on terms that the total price is paid over time in regular payments with the goods received by the Customer upon completion of the payment. For a lay-by arrangement to be an Approved Lay-By, the Participant must provide the customer with:

a document setting out the Participant’s terms and conditions of the lay-by service, and

a detailed lay-by docket for the particular purchase of goods, setting out:

o the deposit amount

o the duration of lay-by period

o the frequency and minimum amount of payments required, and

o the Participant’s cancellation policy for the lay-by (including refunds of deposits or any payments made).

Business Application means a request by the Applicant for Human Services to provide particular services to the Applicant, made in accordance with the form and procedure for completing that Business Application, published by Human Services at humanservices.gov.au from time to time.

Centrelink is a master program of the Department of Human Services.

Community Store means, in the context of Income Management, a store in a local community (often a remote community) that sells a range of food items to community residents.

Compliance Plan means a plan developed by the Participant that specifies the processes and procedures the Participant will adopt to ensure its compliance with the Contract.

Customer means a Declared Customer or, for the purposes of Schedule 5, a Customer Nominee.

Customer Nominee means (for Schedule 5 purposes) a person for whom the Declared Customer has given the Participant written authorisation allowing that person to access their Store Account.

Declared Customer means a mutual customer of the Participant and Human Services who receives a payment and is subject to the Income Management regime under the Social Security (Administration) Act 1999 (Cth).

Declared Customer Account means an account held by the Participant for the benefit of a Declared Customer for the purpose of providing services and associated goods to meet the Priority Needs of the Declared Customer or any Customer Dependents.

Declared Customer Store Account means an account held by the Participant for the benefit of a Declared Customer for the purpose of providing goods to meet the Priority Needs of the Declared Customer or any Customer Dependents.

Deduction Authority means the Income Management Deduction Report or other documentation completed by a Human Services officer that records Human Services’ decision in accordance with the Act to:

commence an Income Management Deduction

change the amount or frequency of any Income Management Deduction, or cancel or suspend an Income Management Deduction.

Department of Human Services Business Terms and Conditions means the document setting out some of the terms and conditions of the IM Deduction Contract between Human Services and the Participant.

Eligibility Criteria means the criteria set out in section 1.3 of this document.

Excluded Goods has the same meaning as in section 123TI of the Social Security (Administration) Act 1999 (Cth). A list of excluded goods and services is at Glossary (ii).

Excluded Services has the same meaning as in section 123TI of the Social Security (Administration) Act 1999 (Cth). A list of excluded goods and services is at Glossary (ii).

DSSmeans the Department of Social Services

Gambling means a service provided to a person in the capacity of a customer of a gambling service (within the meaning of the Interactive Gambling Act 2001).

Human Services means the Australian Government Department of Human Services.

Income Management refers to the legislation, policies and procedures administered by Human Services to assist its customers manage their money. It enables part of a customer’s Human Services and/or Veterans’ Affairs payments to be set aside to pay for priority goods and services provided by Third Party Organisations (TPO).

Income Management Deduction means an amount of money deducted by Human Services from the Income Management account of a Declared Customer and payable to the Participant in accordance with Schedule 4 or 5 to be credited to the Declared Customer Account (in the case of Schedule 4) or Declared Customer Store Account (in the case of Schedule 5) for that Declared Customer, for the provision of goods and services by the Participant (other than Excluded Goods or Excluded Services) to meet the Priority Needs of the Declared Customer or any Customer Dependents.

IM Deduction Contract means the relationship between the Parties as constituted by the following documents, as varied from time to time in accordance with the Terms and Conditions and the relevant Schedules:

the Department of Human Services Business Terms and Conditions (T&Cs)

Schedule 4 or Schedule 5 (as applicable) and any other Schedules referred to in the Approval Letter

any agreed Special Conditions

any further terms set out in the Approval Letter, and

any representations, warranties and other information contained in a Business Application.

IM Deduction Program means the Income Management Programs referred to in Schedule 4 and Schedule 5 of the Department of Human Services Business Terms and Conditions.

Licence means a licence issued to a community store by the Department of Social Services (DSS) in accordance with Part 7 of the Northern Territory National Emergency Response Act 2007 (NTNER Act 2007).

NTNER Act 2007 means the Northern Territory National Emergency Response Act 2007.

Participant means the Applicant described in the Business Application that has been accepted by Human Services through the issue of an Approval Letter.

Prescribed Goods and Services means the priority goods and services for the purposes of Income Management (refer to Glossary (i)).

Prescribed Area means an area prescribed under the NTNER Act 2007 for the purpose of Income Management.

Regulatory Body means the Australian Competition and Consumer Commission (ACCC), the Australian Securities and Investments Commission (ASIC), a State Department or agency responsible for fair trading, or other Government agencies.

Remedy Notice means a Notice provided to the participant detailing the nature of a breach of the Contract and requiring the Participant to remedy the breach within 30 days of receipt of the Notice.

Schedule means a Schedule to the Department of Human Services Business Terms and Conditions and published as such on the Human Services website at humanservices.gov.au

School Meals means a program operating in schools designed to provide a meal service for children attending school.

Service Reasons means the category of goods and/or services that are identified in the Approval Letter for the particular Schedule.

Store Account means an account held by the Participant for the benefit of an income managed customer for the purpose of providing goods and services.

TPO means a Third Party Organisation.

TPO Bank Account means the account with an Authorised Deposit-Taking Institution (as per the Banking Act 1959) specified in the Business Application for Schedule 4 or 5 for the purpose of receiving Income Management Deductions.

Tobacco Product has the same meaning as in the Tobacco Advertising Prohibition Act 1992 and means:

tobacco (in any form), or

any product (for example a cigar or cigarette)

that contains tobacco as its main or a substantial ingredient, is designed or intended for human consumption or use, and that is not included in the Australian Register of Therapeutic Goods maintained under the Therapeutic Goods Act 1989. A tobacco product also is a cigarette paper, cigarette roller or pipe.

(iii) IntroductionThe Department of Human Services (Human Services) manages a variety of Income Management programs. Income Management helps Human Services’ customers manage their money. It enables part of a customer’s Centrelink and/or Veterans’ Affairs payments to be set aside to pay for priority goods and services provided by Third Party Organisations (TPOs).

TPOs can apply to participate in one or more Income Management programs which are referred to in the Schedules to the Department of Human Services Business Terms and Conditions. This document contains the service delivery and compliance policy for Income Management Programs referred to in Schedule 4 and Schedule 5 of the Department of Human Services Business Terms and Conditions.

Schedule 4 to the Department of Human Services Business Terms and Conditions contains the conditions for the participation of TPOs who provide services such as rent, electricity, water and medical services in order to meet the priority needs of income managed customers. Schedule 5 contains the conditions for the participation of TPOs in order to set up store accounts for income managed customers to assist them to meet their Priority Needs. These programs are collectively referred to in this document as the IM Deduction Program.

This document provides guidance on the process Human Services will ordinarily follow when:

assessing whether a TPO is eligible to participate in the IM Deduction Program, and

assessing whether a TPO will be approved to participate in the IM Deduction Program.

managing IM Deduction Contracts

conducting audits and compliance reviews of Participants, and

terminating IM Deduction Contracts.

If a TPO is eligible for and approved to participate in the IM Deduction Program, Human Services may enter into a Schedule 4 contract or Schedule 5 contract (as applicable) with the TPO. The Schedule 4 contract and Schedule 5 contract are referred to in this document as IM Deduction contracts.

This document does not form part of any IM Deduction Contract and does not create any enforceable legal rights, expectations or entitlements. To the extent of any inconsistency between a provision of this document and a provision of an IM Deduction Contract, the provision of the IM Deduction Contract prevails.

More information about the legislative and contractual policy for the IM Deduction Program can be found in the policy framework documents for Schedule 4 and Schedule 5 which are located on the Department of Social Services (DSS) website at dss.gov.au

Service delivery1.1 Engagement processA TPO wishing to be approved to participate in the IM Deduction Program for either or both Schedule 4 or Schedule 5 may apply to Human Services. The TPO applying for participation is referred to as the Applicant by Human Services.

In order to apply, the Applicant must access Human Services website at humanservices.gov.au to download the Business Application and copies of the Department of Human Services Business Terms and Conditions and Schedule 4 or Schedule 5 (as applicable).

1.2 Assessment process The Applicant must lodge the Business Application with Human Services for assessment. This can be done either by mail or fax. The Business Application includes the relevant contact details.

Human Services will assess the Business Application to determine whether the Applicant is eligible to participate in the IM Deduction Program and, if eligible, whether the Applicant should be approved to participate in the IM Deduction Program.

Human Services may request further information from the Applicant or from other sources before completing the assessment. If adverse information is received from other sources, the Applicant will be provided with details of the information and given the opportunity to comment on it.

1.3 Eligibility criteriaIn assessing whether an Applicant is eligible to participate in the IM Deduction Program Human Services will consider whether:

the Applicant is a legal entity such as a company, partnership, sole trader, etc, and that it has the legal capacity to enter into a contract with Human Services

the Applicant has an Australian Business Number (ABN) or Australian Company Number (ACN)

the Applicant has provided details of a postal and physical address and the contact details of a person with authority to make decisions on behalf of the Applicant. Human Services may require further information if it is not satisfied that the person who has signed the Business Application has authority to do so on behalf of the Applicant

the goods and/or services being supplied by the Applicant and for which Income Management Deductions are to be applied fall within the Service Reasons or other categories of goods and/or services which meet the Priority Needs of Customers. Further detail about the Service Reasons are set out in section 1.7

the Applicant sells Excluded Goods and/or Excluded Services. If Excluded Goods or Services are sold by the Applicant, Human Services will assess whether the Applicant is able and willing to prevent the sale of those goods or services, and

a properly signed Business Application has been submitted and that all relevant sections have been completed.

1.4 Approval criteriaIf the Applicant meets the Eligibility Criteria set out in section 1.3, Human Services will then assess whether it meets the following Approval Criteria.

When considering approval, Human Services primary consideration is whether, in Human Services opinion, allowing the Applicant to participate in the IM Deduction Program will further the objectives of Income Management. Section 3 of the Schedule 4 and Schedule 5 policy framework documents describe the objectives of Income Management.

Human Services will take all relevant information into account when it conducts this assessment. The matters that Human Services may take into account include whether:

the Applicant is willing and able to comply with the Department of Human Services Business Terms and Conditions and Schedule 4 and/or Schedule 5 (as applicable) and any special conditions that may be included in the Approval Letter

the Applicant has previously been a party to a contractual arrangement with Human Services or Centrelink, and if so, whether there was any previous non-compliance by the Applicant

in Human Services opinion, allowing the Applicant to participate in the IM Deduction Program would adversely affect Human Services reputation in any way

any adverse information about the Applicant, its officers or agents, or a related entity of the Applicant, has been received from:

o the Australian Competition and Consumer Commission (ACCC)

o the Australian Securities and Investment Commission (ASIC)

o other regulatory bodies, including state and territory fair trading associations

o other relevant Commonwealth, state and territory or local government agencies, and

o consumer groups

the Applicant complies with all legal requirements applicable to its business (for example, the anti-hawking provisions of the Corporations Act 2001 (Cth))

the Applicant has appropriate external dispute resolution mechanisms available to resolve any disputes between the organisation and its customers

for Schedule 5 Applicants situated in prescribed areas under the Northern Territory National Emergency Response Act 2007, the Applicant is:

o required to hold a Store Licence, and

o complying with the terms and conditions of the Licence.

1.5 Additional requirements of contractIn order for an Income Management Deductions contract to be executed, the Applicant must also be able to meet all of the requirements set out in Schedule 4 or Schedule 5 (as applicable).

In relation to a Schedule 4 Applicant, this includes the ability for the Applicant to:

provide a written statement to a customer showing details of the amounts paid to Human Services by the Participant within 14 days of the customer’s request

allow another person to access the customer’s account if provided with a written statement by the customer authorising access by the other person, and

refund an Income Management Deduction amount for an item returned to the Participant by the customer to Human Services. The Participant must not refund the amount to another person’s account, or to the customer in cash or in Excluded Goods or Excluded Services.

In relation to a Schedule 5 Applicant, this includes the ability for the Applicant to:

establish a bank account (the TPO Bank Account) for the specific and dedicated purpose of receiving Income Management Deductions

issue a Customer or their nominee a Point of Sale register docket or receipt showing the total value of purchases debited against the customer’s store account each time the Customer/nominee uses the customer’s store account

keep copies of all receipts or register dockets for at least two years

if requested provide a written statement to a customer showing details of the customer’s store account for the period requested by the customer

be able to provide Human Services with statements on request of the TPO Bank Account showing all debits and credits and the current balance and a statement of each income managed customer’s store account

not apply any Income Management Deduction to a lay-by arrangement unless that arrangement is an ‘Approved lay-by’, and

refund an Income Management Deduction amount for an item returned to the Participant by the customer to the customer’s store account. The Participant must not refund the amount to another person’s store account, or to the customer in cash or in Excluded Goods or Excluded Services.

1.6 Application decisionsAll decisions in relation to assessments of Schedule 4 and 5 applications will be made by a Human Services Account Manager. If required, a senior officer will be consulted as part of the assessment.

If Human Services considers that a Participant may not satisfy the Eligibility or Approval Criteria, it may seek advice from, or refer the matter to, DSS.

An unsuccessful Applicant may request that Human Services conduct a review of this decision (see 1.10b below).

The onus is on the Applicant to establish that it meets the eligibility and approval criteria.

A final decision as to whether or not Human Services will execute a contract with a TPO will be made by Human Services at its sole discretion.

1.7 Income Management Deductions Service ReasonsTo be eligible to participate in the IM Deduction Program, the nature of the Participant’s business must fall within one of the Service Reasons associated with the Scheme. Glossary 1 contains the Service Reasons associated with the Income Management priority needs.

Human Services may allocate additional Service Reasons to TPOs who provide goods or Services to Customers that are not Excluded Goods and Services but do not fall within the definition of Priority Goods or Services. An example is the payment of Court Fines. Glossary 1 includes the common ‘Other Approved Service Reasons’.

Note that income managed funds can be paid out for non-priority needs (other than excluded goods or services), where a person seeks access to unspent funds for other purposes and the Human Services delegate forms the view that all current and reasonably foreseeable priority needs have been met.

Community stores are usually assigned the service reason IMF which stands for Income Management Food. However, they are permitted to sell all items sold in the store except for excluded goods.

The Participant must not allow any Income Management Deduction to be used in relation to the purchase of Excluded Goods or Excluded Services, gift cards, store cards or vouchers or in exchange for cash (Schedule

4) or allow an Income Management customer to use their store account for the purchase of Excluded Goods or Excluded Services, gift cards, store cards or vouchers or in exchange for cash (Schedule 5).

See Glossary (ii) for the list of Excluded Goods and Services.

1.8 Outcome of Business ApplicationFollowing the completion of its assessment, Human Services will notify the Applicant that either:

Human Services accepts the Business Application, in which case Human Services will send the Applicant an Approval Letter. Human Services and the Applicant (now referred to as the Participant) will become Parties to an IM Deduction Contract, or

Human Services does not accept the Business Application. Human Services will provide the Applicant with reasons for its decision. Section 1.10 below sets out the Applicant’s right to seek a review of the decision if they are unhappy with that decision.

Note that the Approval Letter may contain terms, conditions or requirements agreed by Human Services and the Participant, that are in addition to those in the Department of Human Services Business Terms and Conditions and relevant Schedule(s). These are known as Special Conditions.

1.9 Contracts and contract management1.9a Form of contractIf Human Services accepts a Business Application and sends the Participant an Approval Letter, a binding contract between the Commonwealth of Australia represented by Human Services and the Participant will be created (IM Deduction Contract). The IM Deduction Contract will consist of:

the Department of Human Services Business Terms and Conditions

Schedule 4 and/or Schedule 5 to the Department of Human Services Business Terms and Conditions


any further terms set out in the Approval Letter (the Approval Letter will contain the approved Service Reasons), and


The IM Deduction Contract provides a level of protection for Human Services and, through Human Services, the Declared Customer.

In relation to the IM Deduction Program, there is a contractual and business relationship between the Participant and the Customer. Human Services is not responsible for any money owed to the Participant by the Customer, or any failure in the proper delivery of goods or services by the Participant. Human Services will only become involved if there is a breach (or perceived breach) of the IM Deduction Contract by the Participant, or an error on the part of Human Services (such as an overpayment of an Income Management Deduction by Human Services to the Participant as a result of an error on the part of Human Services).

1.9b Termination of an IM Deduction ContractAt any time, either the Participant or Human Services may terminate an IM Deduction Contract by giving 30 days notice under clause 24.1 of the Department of Human Services Business Terms and Conditions. A Party does not need any reason for terminating the IM Deduction Contract under this clause.

In addition, Human Services can terminate an IM Deduction Contract immediately if one of the events specified in clause 24.2 of the Department of Human Services Business Terms and Conditions occurs.

When an IM Deduction Contract with a Participant is terminated, the Participant must allocate any funds remaining in a Customer’s Declared Customer Store Account (Schedule 5) or any Income Management Deduction not yet applied (Schedule 4), as directed by Human Services.

1.9c Termination processTermination on notice (clause 24.1)

If Human Services terminates a contract under this clause, it will send a termination notice to the Participant.

The letter will notify the Participant of the decision to terminate and the date all Income Management Deductions will cease.

A Participant may seek a review of a termination decision made under clause 24.1 of the Department of Human Services Business Terms and Conditions. The letter will also provide information about the Participant’s right to seek a review of the decision.

Termination for cause

The Department of Human Services Business Terms and Conditions enable Human Services to terminate its contract with a Participant for various reasons or causes. These include situations where it is established that the Participant has breached the contract. Remedy notices may be issued where a breach is capable of being remedied.

Under the Department of Human Services Business Terms and Conditions, Human Services may also terminate a contract for cause even where a term of the contract may not have been “breached”. These circumstances include where it is established that the Participant has engaged in fraudulent, unlawful or dishonest conduct, where Human Services is of the opinion that the Participant should no longer be approved to participate in the IM Deduction Program, or where an event described in clause 24.3 of the Department of Human Services Business Terms and Conditions occurs. Human Services may invite the Participant to comment before it makes a final decision to terminate a contract in these circumstances.

Once a decision has been made to terminate a contract, Human Services will send a termination notice to the Participant. The letter will notify the Participant of the decision to terminate, specifying the reason(s) for the decision and the date all Income Management Deductions will cease. Human Services may allot a short period of time to ensure there are alternatives available to Customers to access Priority Goods and Services.

A Participant may seek a review of a termination decision made under clause 24.2 of the Department of Human Services Business Terms and Conditions. The letter will also provide information about the Participant’s right to seek a review of the decision.

Reapplying to be a Participant

Where an IM Deduction Contract has been terminated on any basis and, at a later time, there is a change of circumstances including change of ownership or management, the organisation can reapply to become a Participant.

1.10 Reviews and complaints 1.10a ComplaintsIf a Participant has a complaint about Human Services actions in regards to the IM Deduction Program the complaint should be made to the Department of Human Services Merchant Helpdesk on (freecall) 1800 039 417 or email [email protected]

1.10b Requests for review of Department of Human Services decisionsIf:

a Participant is not satisfied with Human Services decision not to accept their Business Application, or

a Participant is not satisfied with Human Services decision to terminate their IM Deduction Contract,

the Participant may ask Human Services to review the decision by lodging a written request. The request must include the reasons for seeking the review together with information and evidence to support the request for the review. The request must be lodged within 14 days of being notified of the decision.

The Applicant bears the onus of establishing that it meets the eligibility and approval criteria (in cases where a TPO seeks review of a decision not to accept a Business Application).

The Participant bears the onus of establishing that potential grounds for termination under clause 24.2 of the Department of Human Services Business Terms and Conditions do not exist.

An experienced Human Services officer who has not been involved with the original decision may then take one or more of the following actions as appropriate:

review any relevant application, records and/or documents used to make the decision

review the original decision maker’s notes;

consider the information contained in the request to review the decision, including any evidence provided by the Participant to support their request for review, and/or

contact the Participant to discuss the matter further and consider any new evidence or information.

At the completion of the review, the Human Services officer may affirm the original decision, vary the decision or issue a new decision. The Participant will be notified of the outcome of the review by Human Services in writing within 30 working days. The decision of the Human Services officer in relation to the review will be final.

1.11 Overpayment of Income Management DeductionsClause 11 of Schedule 4 and clause 10 of Schedule 5 impose requirements on the Participant in relation to overpayments. Those requirements are summarised below.

An overpayment of Income Management Deduction monies can occur when:

a payment of an Income Management Deduction to the Participant is greater than the amount specified in the Deduction Authority

there is a payment of an Income Management Deduction to the Participant after the date calculated for stopping payments following the cancellation or suspension of that Income Management Deduction, or

a Participant fails to return unspent monies to Human Services within the required period following a written request to do so.

Under Schedule 4 an overpayment can also occur when:

a payment of an Income Management Deduction to the Participant is greater than the amount owed by the customer to the Participant.

If either Human Services or the Participant becomes aware of an overpayment they must advise the other party within three business days. The Participant must repay the overpayment as a debt owed to Human Services immediately after becoming aware of the overpayment or being notified by Human Services of the overpayment.

The Participant is not permitted to credit the customer’s store account with the amount of the overpayment, or allow the customer to access the value of the overpayment in cash or goods or services, even if those goods and services are to meet priority needs.

If an overpayment is not returned within 28 days from the date requested, Human Services may raise the overpayment amount as a debt and pursue recovery.

Audit and compliance reviews2.1 Overarching policyTo participate in the IM Deduction Program the Participant must agree to comply with the IM Deduction Contract. If a Participant ceases to be eligible, is found to be non-compliant and/or continues to be unable or unwilling to comply with the IM Deduction Contract, or an event in clause 24.3 of the Department of Human Services Business Terms and Conditions occurs, Human Services may terminate the IM Deduction Contract. Again, this right to terminate is separate from the right to terminate on notice under clause 24.1.

The purpose of Audit and Compliance Reviews (referred to as reviews) is to enable Participants to satisfy Human Services that they should continue to be approved to participate in the IM Deduction Program. Each Participant must satisfy Human Services that it is complying with:

the Department of Human Services Business Terms and Conditions

Schedule 4 and/or Schedule 5 to the Department of Human Services Business Terms and Conditions


any further terms set out in the Approval Letter (the Approval Letter will contain the approved service reasons), and


2.2 Audit and compliance reviewsCompliance reviews occur as part of a planned schedule of reviews where Participants may be randomly selected for review.

Human Services may conduct reviews for any reason, including:

because the Participant was randomly selected for review

because Human Services has received complaints, information and/or other reports that indicate that the Participant may be in breach of the IM Deduction Contract, and

because DSS has requested that a review be conducted.

2.3 Audit and compliance review processIn accordance with clause 20.1 of the Department of Human Services Business Terms and Conditions, Human Services may give the Participant a notice requiring the Participant to provide to Human Services certain documents.

In the course of conducting a review, Human Services may check a range of items and issues relating to the Participant’s compliance with their obligations under the IM Deduction Contract, including:

the Participant’s operational processes, practices and procedures as they relate to the IM Deduction Contract

the completeness and/or accuracy of the Participant’s records in relation to the performance of the IM Deduction Contract

the Participant’s compliance with confidentiality, privacy, intellectual property and security obligations in the IM Deduction Contract

the Participant’s compliance with any final Compliance Plan, and

any other matters reasonably determined by Human Services to be relevant to the performance of, or compliance with, the IM Deduction Contract.

2.4 Outcome of review activitiesThere are three possible outcomes following a review process:

a satisfactory outcome and no further action is required

the Participant is non-compliant and is issued a remedy notice, or

immediate termination of the IM Deduction Contract where a Participant is non-compliant and the breach is not capable of remedy.

2.5 Process for ‘compliant’ outcomesHuman Services informs the Participant in writing that as a result of its review no further action is required.

2.6 Process for ‘non-compliant’ outcomesShould a review identify a breach of the IM Deduction Contract, a Remedy Notice will be issued if Human Services considers that the breach is capable of remedy. The Remedy Notice will state what is required to remedy the breach.

The Participant will have 30 days within which to remedy the notice. At the end of the remedy period a follow-up review may be completed to ascertain compliance. If the breach has not been remedied within 30 days, Human Services may terminate the IM Deduction Contract.

Where Human Services identifies a breach of the IM Deduction Contract that the Participant has already remedied, Human Services may issue a Remedy Notice that notes the breach and that the breach has been remedied. A Participant can be issued more than one Remedy Notice.

Where a review identifies other conduct or circumstances which, whilst it may not constitute a “breach” of the IM Deduction Contract but nonetheless may give rise to termination on other grounds (see 1.9c above), Human Services may invite the Participant to comment on the perceived existence of those grounds.

2.7 Compliance PlanClause 17 of the Department of Human Services Business Terms and Conditions imposes requirements on the Participant in relation to compliance plans. These requirements are summarised below.

If directed by Human Services, the Participant must:

develop and provide to Human Services a draft Compliance Plan within the period specified by Human Services

develop a final Compliance Plan within the period specified by Human Services that incorporates any reasonable requirements requested by Human Services after its review of the draft Compliance Plan, and

comply with any final Compliance Plan agreed to in writing by Human Services.

Glossary(i) Income Management Priority Goods and Services and associated Income Management Service Reasons The following table shows the Income Management Priority Goods and Services and their associated service reasons for the purposes of approval to participate in a Schedule 4 and/or Schedule 5 contract. The list of priority needs is from section 123TH of the Social Security (Administration) Act 1999 which sets out the priority needs for persons subject to Income Management.

Other Approved Service Reasons

IMK—Court Fines

IMY—Professional Services

IM4—Loans, Mortgages, Debt

Income Management Priority Needs Income Management Service Reasons (Department of Human Services Code)

Food (excluding takeaway food and food sold by restaurants and cafes)

IMF—Food

IMS—Meals Program

Non-alcoholic beverages IMF—Food

Clothing IMC—Clothing and Footwear


Footwear IMC—Clothing and Footwear

Basic personal hygiene items IMF—Food

Basic household items IM8—Household Goods

Housing, including:

rent

home loan repayments

repairs, and

maintenance.

IMA—Government Housing Arrears

IML—Government Housing Loan

IMN—Real Estate Agents

IMO—Government Housing, Other Payment

IMP—Private Landlords

IMR—Government Housing Rent

IMV—General Community Housing

IMX—Short Term Housing

IM3—Other Housing Organisation

INB—Housing Bond

INH—Household Repairs

Household utilities including:

electricity

gas

water

sewerage

garbage collection, and

fixed-line telephone.

IMG—Gas

IMQ—Electricity

IMT—Telecommunications

IMW—Water

IMI—Insurance Services

IM1—Council Services

Rates and land tax IM1—Council Services

Health services, including:

medical, nursing, dental or other health services

pharmacy items

the supply, alteration or repair of artificial teeth

the supply, alteration or repair of an artificial limb (or

IMH—Homecare Services

IMM—Medical Expenses


part of a limb), artificial eye or hearing aid

the testing of eyes

the prescribing of spectacles or contact lenses

the supply of spectacles or contact lenses, and

the management of a disability.

Childcare and development IMJ—Childcare Services

Education and training IME—Education and Training Expenses

Items required for the purpose of the person’s employment, including:

a uniform or other occupational clothing

protective footwear, and

tools of trade.

IM7—Work-related Expenses

INA—Guns and Ammunition

Funerals IMU—Funeral Expenses

Public transport services, where the services are used wholly or partly for purposes in connection with any of the above needs.

IM6—Travel and Transport

The acquisition, repair, 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 of the above needs.

IM6—Travel and Transport

Toys, if they meet the following criteria:

provide opportunities for physical activity and develop gross-motor skills

promote literacy, numeracy, thinking skills and social skills

help children develop fine motor skills and imagination, and

INY—Toys


encourage creative play, role modelling, language development and fun.

(ii) Income Management Deductions excluded goods and servicesThe following goods and services are Excluded Goods and Services for the purposes of Schedules 4 (clause 4.3 of Schedule 4) and Schedule 5 (clause 4.4 of Schedule 5).

Excluded goods

Each of the following are excluded goods for this purpose:

alcoholic beverages

tobacco and tobacco products

home-brew kits and home-brew concentrate

pornographic material

gambling products, and

goods specified in a legislative instrument by the Minister for the purposes of paragraph 123TI (1) (d) of the Social Security (Administration) Act 1999.

Excluded services

Each of the following services is an excluded service for this purpose:

gambling, and

a service specified in a legislative instrument made by the Minister for the purposes of paragraph 123TI (2) (b) of the Social Security (Administration) Act 1999.

income management deductions – service delivery … · web viewin relation to the im deduction...

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