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3.12.5 Release from Lawful Custody

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Last updated 21 December 2006

Crisis payment to people released from lawful custody

Crisis payment is available to people released from [glossary:lawful cu:] — [glossary:stody:], either prison or psychiatric confinement, and who are in severe financial hardship.

Eligibility for payment - prison/psychiatric release

A person applying for a crisis payment due to prison/psychiatric release must fulfil the following eligibility criteria:

  • has been in lawful custody for fourteen days or more,
  • claim crisis payment within seven days of release,
  • be in severe financial hardship, and
  • is receiving or has made a claim for (on that day or earlier) and are eligible for an income support pension and is eligible to receive payment on that day.
Eligibility of psychiatric facility patients not charged with an offence

A person who lives in a psychiatric facility will only be considered for a crisis payment if they have been in lawful custody for fourteen days or more and fulfil the other eligibility criteria. In all other circumstances i.e. where the person has not been charged with an offence, departure from that facility would have to have been the result of extreme circumstances.

Examples of when a crisis payment is payable – prison/psychiatric release from lawful custody

Prison release...

And...

A crisis payment is payable because...

A person is released from either prison or psychiatric confinement qualified to receive an income support pension

the person has been in prison for fourteen days and has liquid assets of less than a fortnight's pension entitlement

the person has been in prison for at least fourteen days and is in severe financial hardship.

A person is released from either prison or psychiatric confinement qualified to receive an income support pension

the person has served forty days in prison and has no liquid assets, but is starting employment on the third day after their release

the person is eligible for payment of service pension at the time of their release at least until they start work.

Examples of when a crisis payment is not payable – prison/psychiatric release from lawful custody

Prison release...

And...

A crisis payment is not payable because...

A person is released from prison

the person has been in prison for ten days and has no liquid assets

the person has not served at least fourteen days in prison. However, as the person is making an initial claim, the person may be entitled to an advance of their first instalment under severe financial hardship provisions.

A person is released from prison

the person has served twenty eight days in prison and has liquid assets equivalent to a fortnight's pension entitlement

the person is not considered to be in severe financial hardship as their liquid assets are not less than a fortnight's entitlement.

If a person is released from either prison or psychiatric confinement

the person has served thirty days in prison and has no liquid assets, but is returning to their previous employment the day after their release

the person is employed and is not qualified for an income support payment.


A crisis payment is a one-off non-taxable payment to extend immediate financial assistance to people in severe financial hardship who:

  • are forced to leave their home due to extreme circumstances, such as domestic or family violence or a house fire, or
  • have been subjected to domestic or family violence by a family member and choose to remain in the family home after the perpetrator has left or been removed from the home, or
  • released prisoners released from either goal or psychiatric institutions.

 

 

In general terms, this is where someone is suffering from serious money difficulties, such as insufficient income to manage their basic living expenses. More detailed descriptions of various financial hardship situations are covered under the following topics:

  • financial hardship provisions under section 52Y of the VEA, for the purpose of the calculating a rate of service pension or income support supplement,
  • financial hardship for the purpose of crisis payment,
  • hardship amount for income stream purposes,
  • hardship assessment of lump sum advance repayments under section 79O of the VEA,
  • financial hardship for special deeming exemptions of 'saved' personal loans and 'frozen' unlisted property trusts,
  • early release of superannuation benefit due to severe financial hardship, and
  • proof of identity at time of pension claims in emergency or hardship situations.

 

 

Income support pension is:

 

 

Lawful custody is detention of a person in prison, or in psychiatric confinement because they have been charged with an offence.