Returned to youth money management
A young partner can be returned to youth money management for the following reasons:
- they are subject to a grade 1, 2 or 3 sanction or
- they have demonstrated poor financial judgement
If a young partner is subject to youth money management, they will continue to be subject to youth money management once they have recomplied.
Exception
Where young partners are sanctioned and they are not subject to youth money management because they have earned the right to manage their own money, they won't be put back on youth money management like those clients on Youth Payment and Young Parent Payment. This ensures the sanctions for clients who aren't subject to youth money management remain graduated through any obligation failures.
Sanction has been imposed
After a sanction has been imposed, the young partner will be returned to youth money management when they recomply. To earn the right to manage their money again, the service provided or Work and Income 'in-house' service will need to be satisfied that the young person has been demonstrating a continued compliance with their obligations.
Poor financial judgement
Generally a young partner may be considered to have poor financial judgement if they have:
- sought or accessed hardship assistance without a good and sufficient reason, or where they could have avoided the application (eg, they did not pay their power account, but spent the money on clothes)
- purchased an unnecessary item on credit
- spent their in-hand allowance on items that are inappropriate for their situation (eg, alcohol and cigarettes and had no money to buy their weekly bus pass)
- increased their costs unnecessarily (eg, moved into more expensive accommodation)
- not used their part-time earnings in a way that is appropriate for their situation (eg bought very expensive clothing items when they should have saved for their car registration)
- entered a relationship with a coercive partner, who is starting to control their money or are being unduly influenced by peer pressure
In-hand allowance and incentives
When a young partner is returned to youth money management because they have demonstrated poor financial judgement, they will retain their in-hand allowance and any incentives earned.
For more information see:
