Income Management - youth and long-term payment recipients

Your payments may be income managed because you live in the Northern Territory and have been receiving a specific payment.

Why your payments are income managed

Your payments may be income managed because you live in the Northern Territory, and are:

  • 15 to 24 years of age and have been on one or more of the following payments for 3 of the last 6 months:
    • Youth Allowance
    • Newstart Allowance
    • Special Benefit
    • Parenting Payment
  • 25 years to age pension age, and have been on one or more of the following payments for more than 12 of the last 24 months:
    • Youth Allowance
    • Newstart Allowance
    • Special Benefit
    • Parenting Payment

How this affects your payments

Income Management will be applied to:

  • 50% of your regular payments, and
  • 100% of any advance or lump sum payments you receive

The rest of your regular payments will be paid to you in the usual way.

Your income managed money can pay for essentials such as rent, bills and food for you and your family.

Exemption from Income Management

If you don’t want your payments income managed you may be able to get an exemption. The criteria for an exemption depends on whether you have dependent children.

If you are granted an exemption, your payments will stop being income managed for 12 months, unless your circumstances change. When your exemption ends, you can apply to extend your exemption.

Exemptions when you don’t have dependent children

If you don’t have dependent children, you may get an exemption if you:

  • get Youth Allowance and are a full time student or Australian Apprentice in an approved full time study course
  • have received less than 25% of your maximum basic rate of payment for at least 4 out of the last 6 fortnights, or
  • get Special Benefit and:
    • do not have Mutual Obligation Requirements, and
    • are 16 years or older

Exemptions when you have dependent children

If you apply for an exemption and have dependent children, you will need to talk to us. We’ll ask you questions about your financial situation. From this conversation, we’ll decide if you are financially secure.

If you’re assessed as financially secure you will have to provide some information about your children. We’ll tell you what you need to give us and you’ll have 28 days to do this. Depending on your child’s age you may need to give us:

  • immunisation records showing your child’s age related immunisations
  • a report from a medical practitioner or nurse practitioner
  • a report from an allied health professional such as speech therapist, occupational or physical therapist
  • a letter confirming your child’s attendance at their preschool, childcare service, multipurpose Aboriginal children’s services or kindergarten
  • a school report or letter from your child’s school showing the number of days the child has been away from school – there may be a need for other information if your child has not attended school regularly

After you have given us everything we have asked for, we will assess your application for an exemption and contact you once a decision has been made.

You can only request an exemption for yourself. If your partner wants an exemption they will need to contact us.

Example of an exemption with dependent children

Beth is 31 years old and has been receiving Parenting Payment for over a year. Beth has two children aged 2 and 12. Beth receives a letter from us telling her that her payment will be income managed because she is over 25 and has been receiving Parenting Payment for more than 12 months.

Beth contacts us and is given information about Income Management and how it may benefit her and her family. Beth decides that she can manage her expenses without her payment being income managed and requests an exemption.

We assess Beth’s circumstances and ask her to:

  • demonstrate that she is not financially vulnerable and is capable of managing her finances
  • provide the immunisation records for her 2 year old, showing her child has had all her age related immunisations
  • provide a copy of her 12 year old child’s school report showing she has not had more than 5 absences in the last 2 terms

Beth provides us with the information we asked for and we grant her an exemption from Income Management for 12 months.

For more information, or if you wish to apply for an exemption please contact us.

Page last updated: 24 August 2016

This information was printed Saturday 3 December 2016 from humanservices.gov.au/customer/enablers/income-management-youth-and-long-term-payment-recipients It may not include all of the relevant information on this topic. Please consider any relevant site notices at humanservices.gov.au/siteinformation when using this material.