How businesses receive income managed funds

Stores can enter into an agreement with the Department of Human Services (DHS), through Centrelink to become an ‘approved merchant’, which will allow them to receive income managed funds. They can enter a Schedule 4 or Schedule 5 agreement, or seek approval to accept funds on the BasicsCard. Each agreement must be entered separately, and each agreement allows the store to receive income managed funds in a different way.

The BasicsCard

The BasicsCard is a stored value card issued by DHS to eligible income managed people. The BasicsCard:

  • helps people on income management access income managed funds at approved merchants
  • helps provide access to priority goods and services for income managed people
  • restricts access to excluded goods and services for income managed people.

It is PIN-protected and processed through the existing Electronic Funds Transfer at Point of Sale (EFTPOS) network.

DHS will assess whether a business that submits a BasicsCard application form can participate in the BasicCard Scheme. Whether a business is eligible to participate in the BasicsCard Scheme is governed by the BasicsCard Merchant Approval Framework. The Framework is split into two sections:

  1. the Merchant Approval Framework detail policy guidelines for the assessment of a merchant’s suitability for BasicsCard approval
  2. The Service Delivery and Compliance Guidelines contain the processes used by DHS in the practical application of the policy guidelines and the ongoing service delivery and management of approved BasicsCard Merchants.

The Framework is to be read in conjunction with the Merchant Application and the Merchant Terms and Conditions that contain the contractual obligations for merchants. For more information, visit the DHS website.

Schedule 4 Agreements

A Schedule 4 Income Management Deduction Agreement is a contract between an approved service provider and DHS. It enables DHS to make payments on behalf of people on income management to service providers in accordance with section 123YG of the Social Security (Administration) Act 1999. This is intended to cover service providers with whom an income managed person will have an ongoing relationship, such as housing authorities or child care providers.

Income Management Deductions – Schedule 4 Policy Framework outline the objectives of Income Management and the Schedule 4 Income Management Deduction Contract.

Income Management Deductions – Service Delivery and Compliance Guidelines contain the conditions for the participation of businesses that provide services such as School Meals Program, rent, electricity, water and medical.

Schedule 5 Agreements

A Schedule 5 Income Management Deduction Agreement is a contract between merchant business and DHS. It enables a business to receive and hold funds in an account for an income managed person. These funds can be used by the income managed person for priority goods at the store as per section 123YI of the Social Security (Administration) Act 1999.

Income Management Deductions Schedule 5 – Policy Framework outline the objectives of Income Management and the Schedule 5 Income Management Deduction Contract.

Income Management Deductions – Service Delivery and Compliance Guidelines contain the conditions for the participation of businesses in order to set up store accounts for income managed customers to assist them to meet their priority needs.

More information

For more information:

  • go to humanservices.gov.au
  • talk to your local Centrelink Income Management Contact Officer
  • call the Income Management Line (for customers only) on 1800 132 594.

Last updated: