14.03.2011

Payments and payment arrangements

106. Certain payments and payment arrangements are available that may assist victims of family violence under social security law. The ALRC has identified four such areas—Crisis Payment, Rent Assistance, weekly payments and urgent payments. The ALRC is interested in whether there are any other payments or payment arrangements that might assist victims of family violence.

Crisis Payment

107. Crisis Payment is a one-off payment that may be paid to social security recipients who are in severe financial hardship including because of ‘domestic or family violence’ and they claim within seven days of the extreme circumstance.[76] A person cannot be paid more than four payments of Crisis Payment due to family violence in any 12 month period.[77] One of the following circumstances must apply.

108. First, the person has left home in circumstances where it is unreasonable to return to the home and intend to establish a new home. A Centrelink social worker determines whether the person has, or intends to establish, a new home. The claiming period begins when the person, having left their home, decides that they cannot return home as a result of the ‘extreme circumstance’. [78]

109. Secondly, the person remained in the home after the removal of a family member due to family violence. It must be verified that the person using family violence actually lived with the victim in the family home immediately before being removed. In some cases, the abusive family member may leave without police involvement and the violent relationship will need to be verified by a third party. The claiming period begins when the family member leaves or is removed from the home.[79]

110. Thirdly, the person has used family violence and been removed from their home and legally prevented from returning.

111. For the purposes of Crisis Payment, the meaning of ‘home’ is taken to be the person’s house or other shelter that is the fixed residence of a person for the foreseeable future. Fixed residence includes a house, apartment, on-site caravan, long-term boarding house or moored boat. A ‘home’ does not include a refuge, overnight hostel, squat or other temporary accommodation.[80] A ‘family member’ is a person’s partner, parent, sister, brother, child or any other person whom the Secretary deems should be treated as a family member.[81]

112. An apprehended violence or restraining order that is issued for a short time (24–72 hours) may be used as an indicator that an extreme circumstance has occurred.[82] While there may no longer be a legal reason preventing the person from returning home, the person may decide to establish a new home that would be considered safer.[83]

113. Some aspects of the operation of Crisis Payment in the context of family violence may raise concern. For example, there may be concerns about:

  • the way in which evidence of family violence is collected, for example by third party verification;

  • the definitions of ‘family member’ and ‘home’ that may exclude certain persons and situations of family violence;

  • requiring claim to be made within seven days after the ‘extreme circumstance’, and understanding of when the extreme circumstance is said to occur may be too onerous given the effects of family violence for victims of family violence;

  • requiring the person using family violence to have lived with the victim immediately before either the victim leaves to home or the person using family violence is removed from the home; and

  • the restriction that only four payments can be made in a 12 month period may be insufficient for victims of family violence.

114. Moreover, where availability of Special Benefit is widely known, access to Crisis Payment may be less so. It may be preferable, therefore, that Crisis Payment be ‘wrapped up’ in a pre-existing payment, such as Special Benefit, and that Centrelink moves towards a single payment system. On the other hand, this may risk certain advantages of Crisis Payment being lost. Another suggestion is to increase the visibility of Crisis Payment through brochures and letters to inform Centrelink customers.

Question 30 In what ways, if any, can information about and access to Crisis Payment be improved for victims of family violence? For example, should Crisis Payment be ‘wrapped up’ with Special Benefit?

Question 31 Should Crisis Payment be available to those who are otherwise ineligible for a social security pension or benefit but due to extreme circumstances of family violence are placed in financial hardship?

Question 32 Do claim periods and eligibility criteria for Crisis Payments adequately reflect the breadth and nature of family violence?

Question 33 What evidence is, or should, be necessary to determine whether family violence amounts to an extreme circumstance for the purpose of Crisis Payment?

Rent Assistance

115. Rent Assistance is available under the Social Security Act to social security recipients who:

  • are not aged care residents;

  • are not ‘ineligible homeowners’; or

  • pay or are liable to pay rent and the fortnightly rent is more than the ‘rent threshold amount’.[84]

116. Rent is defined broadly in the Social Security Act. It does not expressly extend to mortgage repayments.[85]

117. While persons on low income who live in rental accommodation may be able to access Rent Assistance, those who have a mortgage may not and, as such, may be vulnerable to homelessness where the person who has used family violence defaults on rent or mortgage payments.

Question 34 Do the provisions for Rent Assistance in the Social Security Act 1991 (Cth) adequately address the situation where a person using family violence defaults on mortgage repayments on the house in which the victim is living? Should the definition of ‘rent’ in s 13(2) of the Social Security Act 1991 (Cth) expressly include mortgage repayments where family violence is an issue?

Weekly payments

118. Weekly—rather than fortnightly—payments of social security payments can be made to those considered to be ‘most vulnerable’,[86] defined as a person who:

  • is homeless, or

  • is at risk of homelessness and has issues of vulnerability and significant disadvantage and would benefit from receiving payments on a weekly basis, or

  • has considerable difficulty in managing their finances … on a fortnightly basis and would benefit from receiving payments on a weekly basis.[87]

119. Weekly payments are offered in conjunction with other services and referrals, such as family violence counselling. Receiving income support payments on a weekly basis is voluntary. Centrelink works with people to assess their needs.[88]

120. In determining whether a person is eligible for weekly payments, the Guide to Social Security Law provides that a decision maker should take into account, among other things, ‘recent traumatic relationship breakdown, particularly if domestic or family violence was involved’ and whether the ‘person is experiencing financial exploitation’.[89] There is no guidance as to how such evidence is to be collected.

121. Social security recipients who receive weekly payments are ineligible for Crisis Payment and for urgent payments (see below).[90]

Question 35 In practice, are Centrelink customers aware of, and do Centrelink customers make use of, the option to have their payments made weekly? In practice, if requested, are victims of family violence provided with weekly payments?

Question 36 Should victims of family violence who are receiving weekly payments be eligible to receive Crisis Payment?

Urgent payments

122. Where a social security recipient is suffering severe financial hardship due to exceptional and unforeseen circumstances, an urgent payment may be made.[91] The Guide to Social Security Law does not refer to family violence as an exceptional and unforeseen circumstance.

123. The Guide to Social Security Law does, however, state that a one-off urgent payment may be made to a third party on behalf of a social security recipient in exceptional and unforeseen circumstances, where it is necessary to alleviate immediate hardship to the recipient, such as where the recipient is required to change their place of residence because of family breakdown.[92] Again, the Guide to Social Security Law does not refer expressly to family violence.

Question 37 Should family violence be an example of ‘exceptional and unforeseen circumstances’ in the Guide to Social Security Law when considering whether to make an urgent payment? Are the current payment arrangements—such as weekly payments—available to victims of family violence sufficient?

[76]Social Security Act 1991 (Cth) ss1061JH, 1061JHA.

[77] Department of Families, Housing, Community Services and Indigenous Affairs, Guide to Social Security Law<http://www.fahcsia.gov.au/guides_acts/> at 4 February 2011, [3.7.4.20] (Qualification for CrP—Extreme Circumstances—Domestic and Family Violence); [3.7.4.25] (Qualification for CrP—Remaining in the Home after Removal of Family Member Due to Domestic or Family Violence).

[78]Social Security Act 1991 (Cth), s 1061JH; Department of Families, Housing, Community Services and Indigenous Affairs, Guide to Social Security Law<http://www.fahcsia.gov.au/guides_acts/> at 4 February 2011, [3.7.4.20] (Qualification for CrP—Extreme Circumstances—Domestic and Family Violence).

[79]Social Security Act 1991 (Cth) s 1061JHA; Department of Families, Housing, Community Services and Indigenous Affairs, Guide to Social Security Law<http://www.fahcsia.gov.au/guides_acts/> at 4 February 2011, [3.7.4.25] (Qualification for CrP—Remaining in the Home after Removal of Family Member Due to Domestic or Family Violence).

[80] Department of Families, Housing, Community Services and Indigenous Affairs, Guide to Social Security Law<http://www.fahcsia.gov.au/guides_acts/> at 4 February 2011, [3.7.4.25] (Qualification for CrP—Remaining in the Home after Removal of Family Member Due to Domestic or Family Violence).

[81]Social Security Act 1991 (Cth) s 23(14).

[82] Department of Families, Housing, Community Services and Indigenous Affairs, Guide to Social Security Law<http://www.fahcsia.gov.au/guides_acts/> at 4 February 2011, [3.7.4.20] (Qualification for CrP—Extreme Circumstances—Domestic and Family Violence).

[83] Ibid, [3.7.4.20] (Qualification for CrP—Extreme Circumstances—Domestic and Family Violence).

[84]Social Security Act 1991 (Cth) ss 1070B–1070J, 1070T.

[85] Ibid ss 13(2), 13(3). In comparison, New Zealand’s Social Security Act 1964 provides for an ‘Accommodation Supplement’ which is a non-taxable and asset-tested income supplement that provides assistance towards accommodation costs (excluding state housing), but includes rent, board and the costs of owner-occupied homes, including mortgage repayments.

[86]Social Security (Administration) Act 1999 (Cth) s 43; Department of Families, Housing, Community Services and Indigenous Affairs, Guide to Social Security Law<http://www.fahcsia.
gov.au/guides_acts/> at 4 February 2011, [3.10.3.35] (Weekly Payments for Most Vulnerable People).

[87] Department of Families, Housing, Community Services and Indigenous Affairs, Guide to Social Security Law<http://www.fahcsia.gov.au/guides_acts/> at 4 February 2011, [3.10.3.35] (Weekly Payments for Most Vulnerable People).

[88] Ibid, [3.10.3.35] (Weekly Payments for Most Vulnerable People).

[89] Ibid, [3.10.3.35] (Weekly Payments for Most Vulnerable People).

[90] Ibid, [3.10.3.35] (Weekly Payments for Most Vulnerable People).

[91]Social Security (Administration) Act 1999 (Cth) ss 43, 44.

[92] Department of Families, Housing, Community Services and Indigenous Affairs, Guide to Social Security Law<http://www.fahcsia.gov.au/guides_acts/> at 4 February 2011, [8.4.2.10] (Urgent Payments).