Payment
The amount of an Advance Payment of Benefit should be the least amount required to meet the client's particular immediate need.
Advances can be paid for new or used appliances excluding fridges, fridge-freezers, freezers and washing machines (collectively known as whiteware).
When there is a preferred supplier arrangement in place MSD should consider the least amount required within the range of specified goods and services.
Every Advance Payment of Benefit paid for goods or services must be paid to the seller of those goods or services.
The seller must be a reputable supplier, for example a GST registered supplier or an established trustworthy business.
Payments cannot be made for private sales.
Preferred supplier arrangement
When a preferred supplier arrangement is in place the payment must be made directly to the preferred supplier by direct credit or payment card.
MSD currently has preferred supplier arrangements in place for whiteware and optical goods and services.
Dependent children
In exceptional circumstances only, Advance Payment of Benefit for goods and services can be paid to the client or to a parent or caregiver who applies for assistance on behalf of a dependent child.
Maximum limit
Except where exceptional circumstances exist, a payment must not exceed:
- 6 weeks of the client's full benefit rate
A client can get more than one advance at any time, as long as the outstanding balance does not exceed the 6-week limit at any one time.
The maximum limit is not restricted to a 52-week period. The 6 week limit is assessed at each advance application. Consider the client's current debt balances and expected duration of benefit as at the advance application date.
For more information see:
Legislation
- Amount of Advance clause 4 Direction on Advance Payments of Instalments of Benefit
