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CHANGES TO PRISON RELEASE PAYMENTS IN 2000

There have been important changes to Centrelink payments for prisoners, on their release. These changes will affect prisoners who are eligible for Centrelink income support payments on their release.

Income support payments are: -

Allowances such as Newstart and Youth Allowance and
Pensions such as Disability Support Pension, Parenting Payment Single and Age Pension
Other payments like Rent Assistance, Family Payment, Pharmaceutical allowance are not "income support payments".

The main changes were as follows

The Introduction of a new payment called "Crisis Payment".

It is paid at the rate of a one-week payment of your usual income support payment (eg Newstart, Youth Allowance, Disability Support Pension.)

A "Crisis Payment" is a one-off payment payable in certain crisis situations where the claimant is also in severe financial hardship.

Release from prison after at least 14 days' and 14 nights' imprisonment is considered to be one of those crisis situations.

You must claim Crisis Payment within 7 days of your release.

If you are receiving an allowance (eg Newstart or Youth Allowance) you will now only be able to claim a one-week advance on your allowance on your release from prison. This will be paid in addition to the Crisis Payment. You will effectively receive the equivalent of two-weeks' payment on your release if you are eligible.

You must claim that advance with in 7 days of your release. Note that In the past it was possible to claim a two-week advance of your allowance on your release.

The length of time you must spend in jail to qualify for an advance on your allowance is now 14 days and nights In the past released prisoners claiming an allowance have been able to claim an advance on their payment after serving only 7 days and 7 nights in prison.

If you are a Pensioner or receive Parenting Payment Single you will no longer be eligible to receive those payments which fall due immediately after your imprisonment, OR immediately before your release. You will, however be able to claim a Crisis Payment, and a one-week advance on your pension on your release. You will effectively receive the equivalent 2 weeks' payment on your release.

You must claim that advance with in 7 days of your release.

CRISIS PAYMENT FOR RELEASED PRISONERS

What is the Crisis Payment?

The Crisis Payment is a one-off, non-refundable payment, which may be paid to people who:

Are eligible for a Centrelink income support allowance or pension AND
Are in severe financial hardship AND
Have just been released from prison
Must have been in prison for at least 14 days and 14 nights

Are forced to leave their home, as the result of an extreme circumstance and it is unreasonable for them to return home. Extreme circumstances include domestic and family violence, substantial damage to their home, home invasion, and sexual assault.

What is meant by Severe "Financial Hardship"?
Severe Financial Hardship is considered to exist where a person has less than the equivalent of a fortnight's payment of their income support benefit.

For a single person this means that they must have less than the equivalent of 2-weeks payment of their entitlement in the bank or in cash. Where a person is a member of a couple the amount allowed is doubled.

For example: John is single, 25 years old, has no children and is eligible for Newstart Allowance when he is released from prison. If he has more than the equivalent of the crisis payment amount in the bank or in cash he may not qualify for the Crisis Payment. He may still qualify for a 1week advance on his Newstart Payment.

How much will be paid if I am eligible for the Crisis Payment? You will be paid at the equivalent of one week's payment of your usual income support payment, not counting any extras such as rent assistance or pharmaceutical allowance.

For example: John's Crisis Payment will be equivalent to one week of his Newstart payment per fortnight

Is there a limit to the number of Crisis Payments I can claim? There is no limit to the number of payments, which can be paid for released prisoners.

Claims for Crisis payments for other reasons are restricted to 4 within a 12-month period.

IF YOU ARE UNSURE WHETHER OR NOT YOU ARE ELIGIBLE FOR CRISIS PAYMENT LODGE A CLAIM TO TEST YOUR ELIGIBILTY.

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