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Welfare revamp comes with compulsory income management

Published: November 26, 2009

Jenny Macklin

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In a major revamp, Families Minister Jenny Macklin would be able to declare any locality as an area of extreme disadvantage under new laws that will open up welfare recipients to compulsory income management, Catholic welfare bodies caution.

Under the changes, to apply from July next year, welfare recipients in designated areas face having half their payments quarantined for food, rent and other essential items. Lump sum payments such as the baby bonus can be 100 percent quarantined, The Australian reports.

Initially the government will roll out the scheme across the Northern Territory. Ms Macklin said she would decide after the scheme had been properly evaluated in 2011-12 whether to extend it to other areas. She was quoted saying the changes aimed to ensure welfare payments were spent responsibly.

Welfare organisations were wary.

"The people we assist are struggling on inadequate levels of Centrelink benefits. We are deeply disappointed to see that instead of addressing this problem the Government has chosen to subject welfare recipients to further measures of control," said Syd Tutton, the National President of the St Vincent de Paul Society, in a press statement.

"This does nothing for people's dignity. Neither does it address any of the problems some might be having in their lives."

According to Dr John Falzon, the organisation's National Council Chief Executive Officer: "We fail to be convinced by the highly questionable evidence that is being presented as a justification for this poorly targeted policy. It is sad to see a government that claims to be committed to a path of social inclusion indulging in such a coercive and controlling approach rather than honestly looking at the supports that people need, starting with a review of inadequate payments."

Catholic Social Services Australia said that while it welcomed the re-instatement of the Racial Discrimination Act, it was against applying untried policies across the population, particularly in the absence of programs and services that are known to be effective.

"At the heart of many disadvantaged locations is a complex range of issues including alcohol and drug abuse, domestic violence, child neglect and abuse, mental health issues, and other chronic health conditions," said CSSA Executive Director, Frank Quinlan.

"Helping people move beyond disadvantage requires a balance between incentives and support," he said in a statement.

FULL STORY AND MEDIA STATEMENTS

Jenny Macklin spells out welfare changes (The Australian)

Govt ramps up discrimination withnew welfare laws (St Vincent de Paul Society)

CSSA Cautions Against New Quarantining Arrangements (Catholic Social Services Australia)

OTHER STORIES

Welfare plan to be tested on Territorians (ABC)

Plans to extend income management in Northern Territory (News.com.au/AAP)

Welfare control goes country-wide (Sydney Morning Herald)

 

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Recent Comments

  1. Such measures have caused humiliation, frustration and anger for Aboriginal people and communities in the NT. A few days ago, the former PM Malcolm Fraser launched a report co-written by Alastair Nicholson (former Chief Justice of the Family Court and fellow of the Melb. Law school), Professor Larissa Behrendt( Prof. Law UTS), Nicole Watson and Alison Vivian (Jumbunna house of learning) , and Michele Harris (concerned Australians) titled: “Will they be heard?” This looked at three complete N.T. community consultations. Government Summaries of all five N.T. regions were included which detailed the concerns of Aboriginal people particularly around mandatory income management (IM) and other impositions.
    There have been many difficulties caused by IM, including inability to buy food at the local community stores, higher prices including for fruit and vegetables at the bigger commercial stores, (these only took the basics card), and even hunger due to problems with access to stores and centrelink, due to age/disability/ distant localities. People lined up in separate queues that could take basics card! There were twice as many problems recorded in the Govt. summaries than there were benefits, and many improvements suggested. The concerns over compulsory IM were overwhelming. See “Will they be heard?” report at www.socialpolicyconnections.com.au (home page scroll to middle and follow links to above report).
    IM is a punitive measure and being rolled out to mainstream so as to make this current discriminatory ‘special measure’ compatible with the reinstatement of the Racial Discrimination Act,(which was introduced into parliament on the 25th Nov). Money would be better targeted on support , budgeting, addiction and other services.

  2. I have no first-hand knowledge of the effects of compulsory income management, but everything I have heard from Aboriginal people is negative. It seems to me that the only people who benefit from it are Coles, Woolworths and, somewhere in the background of the entire Intervention, those who want to take over Indigenous land.

  3. I’m on a disability pension and unable to work. But am I a bad parent? Not at all. I cannot and do not agree in what this government’s doing and tying to do. As far as I am concerned this is another way to try and save face over a failed I.M scheme that is not working in the Northern territory. I do agree if people have been identified and are pointed out by agencies as abusing welfare and are unable to manage there finances by going to get help all the time to pay for rent, food elect, then yes I may agree this could be a good idea for the government to step in and pay there rent, electric bill. But to take away our freedom, our dignity, I cannot agree at all.
    Let’s see, they said that 50 per cent of a welfare recipient’s payments will be quarantined for spending on essentials to ensure their payments are not being wasted on alcohol, drugs or gambling. Yet the working class who get the F.T B Part A and B for there children are not affected. They will be able to still support their habit, like alcohol, drugs, smoking, gambling with out being effected. This is out right discrimination towards people who are unable to find work or able to work There are a lot of families like ours who are on welfare and have always done the right thing by their children over the years and putting ourselves last. We have striven over the years to give the little we have to our children to try and give them best chance in life to make sure they do not miss out on what other children get.
    But now our children are the targets by this government who knows they have failed in the NT so to save face they want us to believe this is all about protecting our children? This is a joke and our children will be worse off not better off for it
    So if this bill is or has been passed we will need to say to our children when they want to go out for day like the beach or with a friends, buy take away now and then, go to the movie, go on holidays, or if we want to hold a birthday party or even go to a friends party 'sorry kids no more parties we are not allowed as we are on welfare and this is not an a essentials item sorry you will need to miss out'.
    So now who is being affected? My children, my family. When I go shopping at the Supermarket in my local area will now know we are on welfare. This will be very degrading for us as a family if this government really cared for our children’s welfare as they clam they would be doing the right thing and admit the trial never worked up in the N.T and scrap it altogether.

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