This action is similar to crediting an account, but would generally be used in the case of an account held with a financial institution, such as a bank. An example of such an account is one that is linked to a debit card. A financial institution that is not a bank (within the meaning of the social security law) would need to be specified by the Minister in a legislative instrument before income managed funds could be transferred to an account held with that institution.
Money held in such an account must be used only for acquiring goods and services (or paying account-related fees and charges). For example, a transfer to an account could be made for a person who has direct debit payments of insurance made from their account. This mechanism may also be used to meet account-related fees and charges.
The range of goods and services which may be acquired by a person using an amount that has been transferred to an account depends on the specific nature of the account. SS(Admin)Act Part 3B allows the accessible range to be restricted.
Example: Doris has taken out a loan with her bank to pay for her car, and has regular repayments taken out of her bank account monthly. She has provided the delegate with evidence of this arrangement, in the form of the loan repayment arrangement and bank statements. The delegate can direct the amount from her income managed funds into her bank account to cover the costs of the loan repayment, as maintenance and operation related to a motor vehicle is defined as a priority need.
Act reference: SS(Admin)Act section 123YK Transfers to accounts-general, section 123YL Transfers to accounts-Part 3B payment nominee, Part 3B Income management regime
Last reviewed: 10 August 2012